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Assessment and Collection of Regulatory Fees for Fiscal Year FY 2011

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Released: May 3, 2011

Federal Communications Commission

FCC 11-68

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of
)
)

Assessment and Collection of Regulatory Fees for )
MD Docket No. 11-76
Fiscal Year 2011
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)
)
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NOTICE OF PROPOSED RULEMAKING

Adopted: May 3, 2011

Released: May 3, 2011

Comment Date

: May 24, 2011

Reply Comment Date

: June 1, 2011
By the Commission:

TABLE OF CONTENTS

Heading
Paragraph #
I.
INTRODUCTION .................................................................................................................................. 1
A. FY 2011 Regulatory Fee Assessment Methodology........................................................................ 2
B. Regulatory Fee Obligations for Digital Low Power, Class A, and TV Translators
/Boosters .......................................................................................................................................... 5
C. Commercial Mobile Radio Service Messaging Service................................................................... 6
D. Interstate Telecommunications Service Provider (ITSP)................................................................. 7
E. Fee Waiver Policies ....................................................................................................................... 10
F. Administrative and Operational Issues .......................................................................................... 11
1. Mandatory Use of Fee Filer..................................................................................................... 12
2. Notification and Collection of Regulatory Fees ...................................................................... 13
a. Pre-bills............................................................................................................................. 13
II. PROCEDURAL MATTERS................................................................................................................ 14
A. Public Notices and Fact Sheets ...................................................................................................... 15
B. Assessment Notifications............................................................................................................... 16
1. Media Services Licensees........................................................................................................ 16
2. CMRS Cellular and Mobile Services Assessments................................................................. 18
3. Submarine Cable Allocation.................................................................................................... 21
4. Re-Assessment of Regulatory Fee Issues in a Further Notice of Proposed
Rulemaking.............................................................................................................................. 22
C. Streamlined Regulatory Fee Payment Process............................................................................... 23
1. Cable Television Subscribers .................................................................................................. 23
2. CMRS Cellular and Mobile Providers..................................................................................... 24
3. Interstate Telecommunications Service Providers ("ITSP") ................................................... 25
D. Payment of Regulatory Fees .......................................................................................................... 26
1. Lock Box Bank........................................................................................................................ 26

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2. Receiving Bank for Wire Payments ........................................................................................ 27
3. De Minimis Regulatory Fees................................................................................................... 28
4. Standard Fee Calculations and Payment Dates ....................................................................... 29
E. Enforcement................................................................................................................................... 30
F. Initial Regulatory Flexibility Analysis........................................................................................... 32
G. Initial Paperwork Reduction Act of 1995 Analysis ....................................................................... 33
H. Congressional Review Act Analysis.............................................................................................. 34
I.
Ex Parte Rules................................................................................................................................ 35
J. Filing Requirements....................................................................................................................... 36
III. ORDERING CLAUSES....................................................................................................................... 41
APPENDIX A Calculation of FY 2011 Revenue Requirements and Pro-Rata Fees
APPENDIX B FY 2011 Schedule of Regulatory Fees
APPENDIX C Sources of Payment Unit Estimates for FY 2011
APPENDIX D Factors, Measurements, and Calculations that go into Determining Station Signal
Contours and Associated Population Coverages
APPENDIX E Initial Regulatory Flexibility Analysis
APPENDIX F FY 2010 Schedule of Regulatory Fees

I.

INTRODUCTION

1.
In this Notice of Proposed Rulemaking, we propose to collect $335,794,000 in regulatory
fees for Fiscal Year ("FY") 2011, pursuant to Section 9 of the Communications Act of 1934, as amended
(the "Act"). Section 9 regulatory fees are mandated by Congress and are collected to recover the
regulatory costs associated with the Commission's enforcement, policy and rulemaking, user information,
and international activities.1 The annual regulatory fee amount to be collected is established each year in
the Commission's Annual Appropriations Act which is adopted by Congress and signed by the President
and which funds the Commission.2 In this annual regulatory fee proceeding, we retain many of the
established methods, policies, and procedures for collecting Section 9 regulatory fees adopted by the
Commission in prior years. Consistent with our established practice, we intend to collect these regulatory
fees during a September 2011 filing window in order to collect the required amount by the end of our
fiscal year.

A.

FY 2011 Regulatory Fee Assessment Methodology

2.
In our FY 2011 regulatory fee assessment, we will use the same Section 9 regulatory fee
assessment methodology adopted in FY 2010 and in prior years. Each fiscal year, the Commission
proportionally allocates the total amount that must be collected via Section 9 regulatory fees. The results
of our FY 2011 regulatory fee assessment methodology (including a comparison to the prior year's
results) are contained in Appendix A. To collect the $335,794,000 required by Congress, we adjusted the
FY 2010 amount upward by 4.7 percent and allocated this amount across the various fee categories.
Consistent with past practice, we then divided the FY 2011 amount by the number of estimated payment
units in each fee category to determine the unit fee.3 As in prior years, for cases involving small fees,


1 47 U.S.C. 159(a).
2 See Consolidated Appropriations Act, 2010, Public Law 111-117 for the FY 2010 appropriations act language for
the Commission establishing the amount of $335,794,000 of offsetting collections to be assessed and collected by
the Commission pursuant to Section 9 of the Communications Act.
3 In many instances, the regulatory fee amount is a flat fee per licensee or regulatee. In some instances, the fee
amount represents a per-unit fee (such as for International Bearer Circuits), a per-unit subscriber fee (such as for
Cable, Commercial Mobile Radio Service ("CMRS") Cellular/Mobile and CMRS Messaging), or a fee factor per
revenue dollar (Interstate Telecommunications Service Provider ("ITSP") fee). The payment unit is the measure
upon which the fee is based, such as a licensee, regulatee, or subscriber fee.
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e.g., licenses that are renewed over a multiyear term, we divided the resulting unit fee by the term of the
license and then rounded these unit fees consistent with the requirements of Section 9(b)(2) of the Act.
3.
In calculating the FY 2011 regulatory fees listed in Appendix B, we adjusted the FY 2011
list of payment units (see Appendix C) based upon licensee databases, industry and trade group
projections, as well as prior year payment information. In some instances, Commission licensee databases
are used; in other instances, actual prior year payment records and/or industry and trade association
projections are used in determining the payment units.4 Where appropriate, we adjusted and rounded our
final estimates to take into consideration events that may impact the number of units for which regulatees
submit payment, such as waivers and exemptions that may be filed in FY 2011, and fluctuations in the
number of licenses or station operators due to economic, technical, or other reasons. Our estimated FY
2011 payment units, therefore, are based on several variable factors that are relevant to each fee category.
The fee rate may also be rounded or adjusted slightly to account for these variables.
4.
When calculating the fee methodology for AM and FM radio stations, we consider many
factors, such as facility attributes and the population served by each station. The calculation of the
population served is determined by coupling current United States Census Bureau data with technical and
engineering data, as detailed in Appendix D. In FY 2011, we will begin to incorporate new Census data
that was taken in 2010, and this could have an impact in altering the fees of some radio stations. Hence,
the population served, as well as the class and type of service (AM or FM), will continue to be the
principal variables in determining the amount of regulatory fees to be paid.5

B.

Regulatory Fee Obligations for Digital Low Power, Class A, and TV Translators
/Boosters

5.
The digital transition to full-service television stations was completed on June 12, 2009,
but the digital transition for Low Power, Class A, and TV Translators/Boosters remains voluntary, and
there is presently no set date for the completion of this transition. Historically, the discussion of digital
transition conversion with respect to regulatory fees has applied only to full-service television stations.
As a result, the "digital only" exemption does not impact this class of regulatees. Because the digital
transition in the Low Power, Class A, and TV Translators/Booster facilities is still voluntary and the
transition will occur over a period time, some facilities may still be in the process of converting from an
analog to a digital service. During this transition period, licensees of Low Power, Class A, and TV
Translator/Booster facilities may be operating in analog mode, in digital mode, or in an analog and digital
simulcast mode. For regulatory fee purposes, a fee will be assessed for each facility operating either in an
analog or digital mode. In instances in which a licensee is operating in both an analog and digital mode
as a simulcast, a single regulatory fee will be assessed for this analog facility that has a digital companion
channel. As greater numbers of facilities convert to digital mode, the Commission will provide revised
instructions on how regulatory fees will be assessed.


4 The databases we consulted are the following: the Commission's Universal Licensing System ("ULS"),
International Bureau Filing System ("IBFS"), Consolidated Database System ("CDBS") and Cable Operations and
Licensing System ("COALS"). We also consulted reports generated within the Commission such as the Wireline
Competition Bureau's Trends in Telephone Service and the Wireless Telecommunications Bureau's Numbering
Resource Utilization Forecast
and Annual CMRS Competition Report, as well as industry sources including, but not
limited to, Television & Cable Factbook by Warren Publishing, Inc. and the Broadcasting and Cable Yearbook by
Reed Elsevier, Inc.
5 In addition, beginning in FY 2005, we established a procedure by which we set regulatory fees for AM and FM
radio and VHF and UHF television Construction Permits each year at an amount no higher than the lowest
regulatory fee for a licensed station in that respective service category. For example, in FY 2010 the regulatory fee
for an AM radio station Construction Permit was no higher than the regulatory fee for an AM Class C radio station
serving a population of less than 25,000.
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C.

Commercial Mobile Radio Service Messaging Service

6.
Commercial Mobile Radio Service ("CMRS") Messaging Service, which replaced the
CMRS One-Way Paging fee category in 1997, includes all narrowband services.6 Since 1997, the number
of subscribers has declined from 40.8 million to 4.9 million, and there does not appear to be any sign of
recovery to the subscriber levels of 1997-1999.7 Maintaining the fee at the existing level of $.08 per
subscriber is the minimum reasonable and appropriate action to take under the prevailing circumstances in
the paging industry. We propose in FY 2011 to continue maintaining the regulatory fee rate at $0.08 per
subscriber due to the declining subscriber base in this industry. We seek comment on this proposal.

D.

Interstate Telecommunications Service Provider (ITSP)

7.
In our FY 2010 Regulatory Fee Report and Order8, we acknowledged that the revenue
base upon which the ITSP fee is calculated has been decreasing for several years.9 Because of this
continued decline, we limited the increase in the FY 2010 ITSP fee rate from $.00342 to $.00349, and
assessed a slightly higher fee across all other fee categories. In FY 2011, the ITSP revenue base has
experienced an even more significant decline. Over the past six months, we note an additional decline of
nine percent (9%) in the ITSP base revenue, which would increase the ITSP fee rate for FY 2011 to
$.0040210, an increase of 15% from the fee rate adopted in FY 2010.11 This increase in the FY 2011 ITSP
fee rate from $.00349 to $.00402 will be detrimental to the operations of many small and medium ITSP
providers, and will further burden a regulatory fee category already bearing the majority of the agency's
overall regulatory fee burden. Therefore, as we did in FY 2010, we propose to limit the increase of the
FY 2011 ITSP fee rate to $.00361 per revenue dollar, and assess a slightly higher fee across all other
regulatory fee categories. We seek comment on this proposal.
8.
Each year, the Commission downloads 499-A revenue data12 onto a FCC Form 159-W to
establish an ITSP regulatory fee bill. These bills are then loaded into the Commission's electronic
payment and filing system ("Fee Filer") so that providers can view and pay their annual regulatory fee
bill. Historically, in creating ITSP regulatory fee bills, the Commission separated 499-A filers into two
categories: 1) those whose primary revenue stream categorized them as interstate telecommunications


6 See Assessment and Collection of Regulatory Fees for Fiscal Year 1997, MD Docket No. 96-186, Report and
Order, 12 FCC Rcd 17161, 17184-85, 60 (1997) ("FY 1997 Report and Order").
7 Between FY 1997 and FY 2010, the subscriber base in the paging industry declined 89 percent from 40.8 million
to 4.9 million subscribers, according to FY 2010 collections data as of September 30, 2010.
8 See Assessment and Collection of Regulatory Fees for Fiscal Year 2010, MD Docket No. 10-87, Report and Order,
25 FCC Rcd 9278 at 31 (2010) ("FY 2010 Report and Order").
9 In FY 2010 ITSP, the fee factor in the FY 2010 NPRM of $.00351 was based on December 2009 ITSP revenue
data. April 2010 ITSP revenue data, however, reflected revenues 3.4 percent lower than projections. This revenue
decrease would have resulted in an increase in the resulting fee factor from the projected $.00351 to a fee factor of
$.00364. Thus, based on the proposed methodology of the FY 2010 NPRM and the revised revenue numbers, the
ITSP fee factor would have increased from $.00342 (FY 2009 ITSP fee rate) to $.00364. The concerns of these
providers, which collectively represent 46.82 percent of all regulatory fees paid in any given year, resulted in the
adoption, as an interim measure, an ITSP fee rate at $.00349, which is a 2.1% increase from FY 2009. We find this
to be a reasonable interim measure pending our review of whether part of that 46.82 percent of the regulatory fee
burden might be moved from ITSP in the context of fundamental reform.
10 If the Commission did not provide any relief or consider changes in the ITSP revenue stream, the fee factor rate
would be $0.00402 per revenue dollar.
11 See FY 2010 Report and Order at Appendix C, Page 28.
12 FCC Form 499-A is filed annually with USAC on April 1st, but it can be revised many times for up to a year of
the April 1st filing.
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service providers (ITSP), and 2) those whose primary revenue stream was considered to be non-ITSP,
such as wireless, satellite, and other service providers. Simply stated, the logic here was to categorize
499-A filers into two regulatory fee paying categories those that pay ITSP regulatory fees on the basis
of a fee factor per revenue dollar, and those whose primary revenue stream would place them in a
category other than ITSP ("non-ITSP providers"), such as wireless or satellite carriers, that pay regulatory
fees on some other basis (e.g. wireless carriers pay regulatory fees on a per subscriber basis). By
separating 499-A filers into these two categories (ITSP providers and non-ITSP providers), the
Commission was not assessing the ITSP revenues of certain particular entities (non-ITSP providers)
simply because these entities were paying another form of regulatory fee (e.g. wireless or satellite fees).
After more careful consideration, we realize that this treatment resulted in predominantly ITSP providers
paying fees on both ITSP revenues and, if they also provided other services, a per unit subscriber fee on
other services (e.g. wireless services), while non-ITSP paid on a per unit basis only (e.g. for wireless
services), and were not assessed fees on their ITSP revenues. There is no basis for this disparate
treatment; it is only logical that these wireless providers and other non-ITSP providers be subject to ITSP
fees based on their ITSP revenues, similar to the fees that are currently paid by wireline carriers.
Therefore, instead of separating 499-A filers into these two categories of regulatory fee payers, we
propose to assess ITSP regulatory fees on all ITSP revenues, regardless of the predominant classification
of the payor. More specifically, we find that a more equitable way of assessing ITSP regulatory fees is to
assess an ITSP fee on 499-A reported ITSP revenue items regardless of whether the payor is
predominantly an ITSP or a non-ITSP provider. If FCC Form 499-A has revenues identified on lines 412
(e), 420 (d), and/or 420 (e), the provider would be subject to ITSP regulatory fees.13
9.
FCC Form 159-W was established in FY 2001 to assist providers in transposing revenue
information from their FCC Form 499-A to a worksheet that would assist them in computing their
regulatory fee obligation. Initially, the Form 159-W worksheet was left blank for the provider to
complete and mail it in along with their check. In later years, the Commission provided a pre-completed
Form 159-W based on revenue information directly from FCC Form 499-A. In this Notice of Proposed
Rulemaking ,
the Commission proposes to assess a regulatory fee on all providers that have subject
revenues on Line 14 of Form 159-W, which after the fee factor is applied, results in a regulatory fee
obligation of $10 or greater. By assessing regulatory fees on all providers ($10 or greater), we believe we
can achieve a more equitable assessment of ITSP regulatory fees across all providers, and reduce the
subjective factor involved in identifying some providers as non-ITSP because their primary business is
cellular or a satellite provider. If ITSP revenues are derived from the service and identified on the
appropriate lines of Form 499-A (and subsequently transposed to Form 159-W), then a regulatory fee
would be assessed on those revenues. In FY 2011, we believe our proposal will add $2.0 billion to the
unit base estimate, which will help to support maintaining the FY 2011 ITSP fee factor rate at $0.00361,
reducing the impact of this limitation on all other regulatory fee categories. We seek comment on this
proposal of assessing regulatory fees on ITSP revenues from all providers.

E.

Fee Waiver Policies

10.
As our rules expressly provide, petitions for waiver of a regulatory fee must be
accompanied by the required fee "unless accompanied by a petition to defer payment due to financial
hardship, supported by documentation of the financial hardship."14 Similarly, petitions for reduction of
fees filed with less than the full fee due must be accompanied by a request for deferral "supported by


13 See FCC Form 159-W on page 7 of the Commission's Interstate Telecommunications Service Provider (ITSP)
Fact Sheet, August 2010. 499-A Form Line 412 (e) corresponds with Line 1 of FCC Form 159-W; 499-A Form
Line 420 (d) corresponds with Line 2 of FCC Form 159-W; and 499-A Form Line 420 (e) corresponds with Line 3
of FCC Form 159-W. However, from FCC Form 159-W revenue Lines 1 through 3, a provider can also subtract
Lines 5 through 12, resulting in a net revenue amount upon which regulatory fees would be due.
14 47 C.F.R. 1.1166 (c).
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documentation of financial hardship."15 However, citing section 1.1166 (b) of the rules, which states that
"Deferrals of fees will be granted for a period of six months following the date that the fee is initially
due," some have argued that, even where supporting documentation of financial hardship is not provided,
a regulatee can delay its payment of the fees owed for up to six months simply by requesting the deferral.
That argument is inconsistent with sections 1.1166 (c) and (d) of our rules, which provide that petitions
for waivers or reductions will be dismissed if they are not accompanied by the full fee owed, unless the
regulatee requests a deferral of payment supported by documentation of financial hardship.16 A
regulatee's mere allegation of financial hardship thus does not automatically entitle it to a deferral of its
obligation to pay regulatory fees; only a properly supported claim of financial hardship will entitle the
regulatee to a deferral. Accordingly, if a request for deferral is not supported by documentation of
financial hardship, it will be denied, and an associated petition for waiver or reduction will be dismissed.
A regulatee cannot delay payment on the theory that its deferral request triggered an automatic six-month
extension of its obligation to pay. We thus propose to amend section 1.1166 (b) of the Rules17 to read,
"Deferrals of fees, if granted, will be for a designated period of time not to exceed six months." We seek
comment on this rule clarification.

F.

Administrative and Operational Issues

11.
In FY 2009, the Commission implemented several changes in procedures which
simplified the payment and reconciliation processes of FY 2009 regulatory fees. These changes proved to
be very helpful to both licensees and to the Commission, and we propose in the following paragraphs to
expand upon these improvements. In FY 2011, the Commission will promote greater use of technology
(and less use of paper) to improve the regulatory fee notification and collection process. In addition to
seeking comment on the specific initiatives discussed in the paragraphs below, we ask whether there are
other steps we could take to promote greater use of technology in collecting regulatory fees.
1.

Mandatory Use of Fee Filer

12.
In FY 2009, we instituted a mandatory filing requirement using the Commission's
electronic filing and payment system (also known as "Fee Filer").18 Licensees filing their annual
regulatory fee payments were required to begin the process by entering the Commission's Fee Filer
system with a valid FRN and password.19 This change was beneficial to both licensees and to the
Commission. For licensees, the mandatory use of Fee Filer eliminates the need to manually complete and
submit a hardcopy Form 159, and for the Commission, the data in electronic format made it much easier
to process payments more efficiently and effectively. We propose to continue to make the use of Fee
Filer for filing annual regulatory fees mandatory. We seek comment on this proposal. We also request
comment on ways we might improve the mandatory use of Fee Filer. The mandatory use of Fee Filer
does not mean that licensees are expected to pay only through Fee Filer it is only mandatory for
licensees to begin the process of filing their annual regulatory fees using Fee Filer.


15 47 C.F.R. 1.1166 (d).
16 47 C.F.R. 1.1166 (c) and (d) (requests for waivers and reductions of fees "that do not include the required fees or
forms will be dismissed unless accompanied by a petition to defer payment due to financial hardship, supported by
documentation of the financial hardship."
17 47 C.F.R. 1.1166 (b).
18 FY 2009 Report and Order at 20 and 21.
19 Therefore, it is very important for licensees to have a current and valid FRN address on file in the Commission's
Registration System (CORES).
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2.

Notification and Collection of Regulatory Fees

a.

Pre-bills

13.
In prior years, the Commission mailed pre-bills via surface mail to licensees in select
regulatory fee categories: Interstate telecommunications service providers ("ITSPs"), Geostationary
("GSO") and Non-Geostationary ("NGSO") satellite space station licensees,20 holders of Cable Television
Relay Service ("CARS") licenses, and Earth Station licensees.21 The remaining regulatees did not receive
pre-bills. In our FY 2009 Report and Order, the Commission decided to have the attributes of these pre-
bills viewed in Fee Filer, rather than mailing pre-bills out to licensees via surface mail.22 In FY 2011, the
Commission will continue to reduce its use of hardcopy documents by not mailing out annual regulatory
fee pre-bills, and instead place the pre-bill information on the Commission's website for licensees to
access through the Commission's electronic filing and payment system ("Fee Filer"). Regulatees can also
look to the Commission's website for information on upcoming events and deadlines relating to
regulatory fees. We ask whether further changes to our system of electronic notification would serve to
more efficiently and effectively inform regulatees of information and procedures pertaining to regulatory
fees.

II.

PROCEDURAL MATTERS

14.
Included below are procedural items as well as our current payment and collection
methods which we have revised over the past several years to expedite the processing of regulatory fee
payments. We do not propose changes to these procedures. Rather, we include them here as a useful way
of reminding regulatory fee payers and the public about these aspects of the annual regulatory fee
collection process.

A.

Public Notices and Fact Sheets

15.
Each year we post public notices and fact sheets pertaining to regulatory fees on our web
site. These documents contain information about the payment due date and relevant regulatory fee
payment procedures. We will continue to post this information on http://www.fcc.gov/fees/regfees.html,
but as in previous years, we will not send out public notices and fact sheets to regulatees en masse.

B.

Assessment Notifications

1.

Media Services Licensees

16.
Beginning in FY 2003, we sent fee assessment notifications via surface mail to media
services entities on a per-facility basis.23 These notifications provided the assessed fee amount for the


20 Geostationary orbit space station ("GSO") licensees received regulatory fee pre-bills for satellites that (1) were
licensed by the Commission and operational on or before October 1 of the respective fiscal year; and (2) were not
co-located with and technically identical to another operational satellite on that date (i.e., were not functioning as a
spare satellite). Non-geostationary orbit space station ("NGSO") licensees received regulatory fee pre-bills for
systems that were licensed by the Commission and operational on or before October 1 of the respective fiscal year.
21 A pre-bill is considered an account receivable in the Commission's accounting system. Pre-bills reflect the
amount owed and have a payment due date of the last day of the regulatory fee payment window. Consequently, if a
pre-bill is not paid by the due date, it becomes delinquent and is subject to our debt collection procedures. See also
47 C.F.R. 1.1161(c), 1.1164(f)(5), and 1.1910.
22 See FY 2009 Report and Order at 24, 26.
23 As stated previously in a footnote, a pre-bill is considered an account receivable in the Commission's accounting
system. Pre-bills include an amount owed and have a payment due date of the last day of the regulatory fee payment
window. If a pre-bill is not paid by the due date, it becomes delinquent and is subject to our debt collection
procedures. On the other hand, an assessment is a proposed statement of the amount of regulatory fees owed by an
(continued....)
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facility in question, as well as the data attributes that determined the fee amount. We have since refined
this initiative to be more electronic and paperless.24 In our FY 2010 Notice of Proposed Rulemaking, we
proposed to discontinue mailing the media notifications beginning in FY 2011, relying instead on
information on the Commission's website and the use of the Commission-authorized website at
www.fccfees.com.25 We kept the comment and reply comment period open until September 30, 2010 to
be receptive to the needs of media licensees. We received no comments or reply comments on this
particular issue. Therefore, beginning in FY 2011, we will discontinue mailing hardcopy notification
assessment letters to media licensees.
17.
Every ten years, when the United States Census data is released, this data is incorporated
into the population counts of AM & FM radio stations on a county basis. These population counts, along
with the station's class and type of service, are the basis for determining regulatory fees. Although the
2010 Census data has been completed, the data is still subject to revisions. In addition, because FY 2011
regulatory fees are determined on the basis of the station's attributes as of October 1, 2010, it would be
inappropriate to apply incomplete 2010 Census data in determining FY 2011 regulatory fees for radio
stations. Therefore, we will apply 2010 Census data in determining the population counts of radio
stations as of October 1, 2011, as part of our calculations of FY 2012 regulatory fees.
2.

CMRS Cellular and Mobile Services Assessments

18.
As we have done in prior years, our procedures for conveying CMRS subscriber counts
to providers are as follows. We will mail an initial assessment letter to Commercial Mobile Radio
Service (CMRS) providers using data from the Numbering Resource Utilization Forecast ("NRUF")
report that is based on "assigned" number counts that have been adjusted for porting to net Type 0 ports
("in" and "out").26 The letter will include a listing of the carrier's Operating Company Numbers
("OCNs") upon which the assessment is based.27 The letters will not include OCNs with their respective
assigned number counts, but rather, an aggregate total of assigned numbers for each carrier.
19.
A carrier wishing to revise their subscriber count can access Fee Filer within a designated
time frame to revise their count. Providers should follow the prompts in Fee Filer to record their
subscriber revisions, along with any supporting documentation.28 The Commission will then review the
revised count and supporting documentation and either approve or disapprove the submission in Fee Filer.
If the submission is disapproved, the Commission will attempt to contact the provider so that the provider
will have an opportunity to discuss its revised subscriber count and/or provide additional supporting
documentation. If we receive no response or correction to the initial assessment letter, or we do not
reverse the disapproval of the provider's revised count submission, we will expect the fee payment to be
(Continued from previous page)


entity to the Commission (or proposed subscriber count to be ascribed for purposes of setting the entity's regulatory
fee), but it is not entered into the Commission's accounting system as a current debt.
24 Some of those refinements have been to provide licensees with a Commission-authorized web site to update or
correct any information concerning their facilities, and to amend their fee-exempt status, if need be. The
notifications also provide licensees with a telephone number to call in the event that they need customer assistance.
25 See Assessment and Collection of Regulatory Fees for Fiscal Year 2010, Report and Order, 25 FCC Rcd 9278 at
para. 42 (2010) ("FY 2010 Report and Order")
26 See Assessment and Collection of Regulatory Fees for Fiscal Year 2005 and Assessment and Collection of
Regulatory Fees for Fiscal Year 2004,
MD Docket Nos. 05-59 and 04-73, Report and Order and Order on
Reconsideration, 20 FCC Rcd 12259, 12264, 38-44 (2005).
27 Id.
28 In the supporting documentation, the provider will need to state a reason for the change, such as a purchase or sale
of a subsidiary, the date of the transaction, and any other pertinent information that will help to justify a reason for
the change.
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based on the number of subscribers listed on the initial assessment letter. Once the timeframe for revision
has passed, the subscriber counts will be finalized. These subscriber counts will then be the basis upon
which CMRS regulatory fees will be expected. Providers will be able to view their final subscriber
counts online in Fee Filer. A final CMRS assessment letter will not be mailed out.
20.
Because some carriers do not file the NRUF report, they may not receive an initial letter
of assessment. In these instances, the carriers should compute their fee payment using the standard
methodology29 that is currently in place for CMRS Wireless services (e.g., compute their subscriber
counts as of December 31, 2010), and submit their fee payment accordingly. Whether a carrier receives
an assessment letter or not, the Commission reserves the right to audit the number of subscribers for
which regulatory fees are paid. In the event that the Commission determines that the number of
subscribers paid is inaccurate, the Commission will bill the carrier for the difference between what was
paid and what should have been paid.
3.

Submarine Cable Allocation

21.
The Commission collects a revenue amount each year based on a Congressional
mandate. Because the dollar amount differs each year, a revenue apportionment is required each year to
determine the projected regulatory fee revenue to be collected from submarine cable providers and from
terrestrial/satellite facilities.30 Since FY 2009, the Commission has used the 87.4/12.6 percent allocation
proposed in the Consensus Proposal as the percentage upon which to determine the regulatory fee revenue
amounts for submarine cable providers and terrestrial/satellite facilities, respectively.31 Each year, the
Commission reserves the right to revise this 87.4/12.6 allocation. Although we will continue to review
this allocation as part of our annual regulatory fee proceeding, we do not at this time find any basis to
alter the 87.4/12.6 percent revenue allocation for 2011 regulatory fees.
4.

Re-Assessment of Regulatory Fee Issues in a Further Notice of Proposed
Rulemaking


22.
Since 1994 when the first regulatory fees were collected, the communications industry
has undergone a rapid transformation. The current basis of how regulatory fees are assessed, however,
has changed only slightly since its inception in 1994.32 In FY 2008, the Commission released a Further
Notice of Proposed Rulemaking
which identified some of the issues raised by commenters with regard to
the need for fundamental reform of our regulatory fee assessment methodology33 From this rulemaking,
the Commission has already acted on three of the issues: 1) a change in the bearer circuit methodology
for calculating regulatory fees, 2) the elimination of two regulatory fee categories, the International
Public Fixed Radio
and International High Frequency Broadcast Stations, and 3) the conversion of UHF
and VHF Television stations from analog to digital television. In our FY 2010 Regulatory Fees Report &
Order, we stated that in a future proceeding, we will "further examine the nature and extent of all changes
that need to be made to our regulatory fee schedule and calculations. In a separate and forthcoming
action, we will call for comment on issues including, but not limited to, how changes in the


29 See, e.g., Federal Communications Commission, Regulatory Fees Fact Sheet: What You Owe - Commercial
Wireless Services for FY 2010
at 1 (rel. September 2010).
30 See Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd
4208 at n. 35 (2009) ("Submarine Cable Order").
31 See Assessment and Collection of Regulatory Fees for Fiscal Year 2009, Report and Order, 24 FCC Rcd 10301 at
para. 8 (2009) ("FY 2009 Report and Order").
32 47 U.S.C. 159(a) and 159(b).
33 Assessment and Collection of Regulatory Fees for Fiscal Year 2008, MD Docket No. 08-65, RM-11312, Report
and Order and Further Notice of Proposed Rulemaking, 73 FR 50201 (August 26, 2008) at paras. 38-41.
9

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FCC 11-68

telecommunications marketplace may warrant rebalancing of regulatory fees among existing service
providers..." 34 As our commitment to this "forthcoming action", the Commission will by the end of
2011, initiate a further rulemaking that will update the record on regulatory fee rebalancing, as well as
expand this inquiry to include new issues and services not covered by the 2008 Further Notice of
Proposed Rulemaking
, such as whether and how to re-assess the regulatory fee burden of all fee
categories, whether to incorporate 499-A wireless revenue in the calculation of ITSP regulatory fees, and
whether to eliminate the regulatory fee portion (but not the application fee portion) of General Mobile
Radio Service (GMRS).

C.

Streamlined Regulatory Fee Payment Process

1.

Cable Television Subscribers

23.
We will continue to permit cable television operators to base their regulatory fee payment
on their company's aggregate year-end subscriber count, rather than requiring them to report cable
subscriber counts on a per community unit identifier ("CUID") basis.
2.

CMRS Cellular and Mobile Providers

24.
In FY 2006, we streamlined the CMRS payment process by eliminating the requirement
for CMRS providers to identify their individual call signs when making their regulatory fee payment,
instead allowing CMRS providers to pay their regulatory fees only at the aggregate subscriber level
without having to identify their various call signs.35 We will continue this practice in FY 2011. In FY
2007, we consolidated the CMRS cellular and CMRS mobile fee categories into one fee category with a
single fee code, thereby eliminating the requirement for CMRS providers to separate their subscriber
counts into CMRS cellular and CMRS mobile fee categories during the regulatory fee payment process.
This consolidation of fee categories enabled the Commission to process payments more quickly and
accurately. For FY 2011, we will continue this practice of combining the CMRS cellular and CMRS
mobile fee categories into one regulatory fee category.
3.

Interstate Telecommunications Service Providers ("ITSP")

25.
In FY 2007, we adopted a proposal to round lines 14 (total subject revenues) and 16 (total
regulatory fee owed) on FCC Form 159-W to the nearest dollar. This revision enabled the Commission to
process the ITSP regulatory fee payments more quickly because rounding was performed in a consistent
manner and eliminated processing issues that occurred in prior years. In FY 2011, we will continue
rounding lines 14 and 16 when calculating the FY 2011 ITSP fee obligation. In addition, we will
continue the practice of not mailing out Form 159-W via surface mail.

D.

Payment of Regulatory Fees

1.

Lock Box Bank

26.
All lock box payments to the Commission for FY 2011 will be processed by U.S. Bank,
St. Louis, Missouri, and payable to the FCC. During the regulatory fee season, for those licensees
paying by check, money order, or by credit card using Form 159-E remittance advice, the fee payment
and Form 159-E remittance advice should be mailed to the following address: Federal Communications
Commission, Regulatory Fees, P.O. Box 979084, St. Louis, MO 63197-9000. Additional payment
options and instructions are posted at http://www.fcc.gov/fees/regfees.html.


34 See Assessment and Collection of Regulatory Fees for Fiscal Year 2010, MD Docket No. 10-87, Report and
Order, 25 FCC Rcd 9278 31 (2010).
35 See Assessment and Collection of Regulatory Fees for Fiscal Year 2006, MD Docket No. 06-68, Report and
Order, 21 FCC Rcd 8092, 8105, 48 (2006).
10

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2.

Receiving Bank for Wire Payments

27.
The receiving bank for all wire payments is the Federal Reserve Bank, New York, New
York (TREAS NYC). When making a wire transfer, regulatees must fax a copy of their Fee Filer
generated Form 159-E to U.S. Bank, St. Louis, Missouri at (314) 418-4232 at least one hour before
initiating the wire transfer (but on the same business day), so as not to delay crediting their account.
Regulatees should discuss arrangements (including bank closing schedules) with their bankers several
days before they plan to make the wire transfer to allow sufficient time for the transfer to be initiated and
completed before the deadline. Complete instructions for making wire payments are posted at
http://www.fcc.gov/fees/wiretran.html.
3.

De Minimis Regulatory Fees

28.
Regulatees whose total FY 2011 regulatory fee liability, including all categories of fees
for which payment is due, is less than $10 are exempted from payment of FY 2011 regulatory fees.
4.

Standard Fee Calculations and Payment Dates

29.
The Commission will accept fee payments made in advance of the window for the
payment of regulatory fees. The responsibility for payment of fees by service category is as follows:

Media Services: Regulatory fees must be paid for initial construction permits that were granted
on or before October 1, 2010 for AM/FM radio stations, VHF/UHF full service television
stations, and satellite television stations. Regulatory fees must be paid for all broadcast facility
licenses granted on or before October 1, 2010. In instances where a permit or license is
transferred or assigned after October 1, 2010, responsibility for payment rests with the holder of
the permit or license as of the fee due date.

Wireline (Common Carrier) Services: Regulatory fees must be paid for authorizations that were
granted on or before October 1, 2010. In instances where a permit or license is transferred or
assigned after October 1, 2010, responsibility for payment rests with the holder of the permit or
license as of the fee due date. We note that audio bridging service providers are included in this
category.36

Wireless Services: CMRS cellular, mobile, and messaging services (fees based on number of
subscribers or telephone number count): Regulatory fees must be paid for authorizations that
were granted on or before October 1, 2010. The number of subscribers, units, or telephone
numbers on December 31, 2010 will be used as the basis from which to calculate the fee
payment. In instances where a permit or license is transferred or assigned after October 1, 2010,
responsibility for payment rests with the holder of the permit or license as of the fee due date.

The first eleven regulatory fee categories in our Schedule of Regulatory Fees (see Appendix B)
pay "small multi-year wireless regulatory fees." Entities pay these regulatory fees in advance
for the entire amount of their five-year or ten-year term of initial license, and only pay regulatory
fees again when the license is renewed or a new license is obtained. We include these fee
categories in our Schedule of Regulatory Fees to publicize our estimates of the number of "small


36 Audio bridging services are toll teleconferencing services, and audio bridging service providers are required to
contribute directly to the universal service fund based on revenues from these services. On June 30, 2008, the
Commission released the InterCall Order, in which the Commission stated that InterCall, Inc. and all similarly
situated audio bridging service providers are required to contribute directly to the universal service fund. See
Request for Review by InterCall, Inc. of Decision of Universal Service Administrator
, CC Docket No. 96-45, Order,
23 FCC Rcd 10731 (2008) ("InterCall Order").
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FCC 11-68

multi-year wireless" licenses that will be renewed or newly obtained in FY 2011.

Multichannel Video Programming Distributor Services (cable television operators and CARS
licensees)
: Regulatory fees must be paid for the number of basic cable television subscribers as
of December 31, 2010.37 Regulatory fees also must be paid for CARS licenses that were granted
on or before October 1, 2010. In instances where a permit or license is transferred or assigned
after October 1, 2010, responsibility for payment rests with the holder of the permit or license as
of the fee due date.

International Services: Regulatory fees must be paid for earth stations, geostationary orbit space
stations and non-geostationary orbit satellite systems that were licensed and operational on or
before October 1, 2010. In instances where a permit or license is transferred or assigned after
October 1, 2010, responsibility for payment rests with the holder of the permit or license as of
the fee due date.

International Services: Submarine Cable Systems: Regulatory fees for submarine cable systems
are to be paid on a per cable landing license basis based on circuit capacity as of December 31,
2010. In instances where a license is transferred or assigned after October 1, 2010,
responsibility for payment rests with the holder of the license as of the fee due date. For
regulatory fee purposes, the allocation in FY 2011 will remain at 87.6 percent for submarine
cable and 12.4 percent for satellite/terrestrial facilities.

International Services: Terestrial and Satellite Services: Finally, regulatory fees for
International Bearer Circuits are to be paid by facilities-based common carriers that have active
(used or leased) international bearer circuits as of December 31, 2010 in any terrestrial or
satellite transmission facility for the provision of service to an end user or resale carrier, which
includes active circuits to themselves or to their affiliates. In addition, non-common carrier
satellite operators must pay a fee for each circuit 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. "Active circuits" for these
purposes include backup and redundant circuits as of December 31, 2010. Whether circuits are
used specifically for voice or data is not relevant for these purposes in determining that they are
active circuits. In instances where a permit or license is transferred or assigned after October 1,
2010, responsibility for payment rests with the holder of the permit or license as of the fee due
date. For regulatory fee purposes, the allocation in FY 2011 will remain at 87.6 percent for
submarine cable and 12.4 percent for satellite/terrestrial facilities.

E.

Enforcement

30.
To be considered timely, regulatory fee payments must be received and stamped at the
lockbox bank by the last day of the regulatory fee filing window. Section 9(c) of the Act requires us to
impose a late payment penalty of 25 percent of the unpaid amount to be assessed on the first day
following the deadline date for filing of these fees.38 Failure to pay regulatory fees and/or any late
penalty will subject regulatees to sanctions, including those set forth in section 1.1910 of the


37 Cable television system operators should compute their basic 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.
Operators may base their count on "a typical day in the last full week" of December 2010, rather than on a count as
of December 31, 2010.
38 47 U.S.C. 159(c).
12

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FCC 11-68

Commission's Rules39 and in the Debt Collection Improvement Act of 1996 ("DCIA").40 We also assess
administrative processing charges on delinquent debts to recover additional costs incurred in processing
and handling the related debt pursuant to the DCIA and section 1.1940(d) of the Commission's Rules.41
These administrative processing charges will be assessed on any delinquent regulatory fee, in addition to
the 25 percent late charge penalty. In case of partial payments (underpayments) of regulatory fees, the
licensee will be given credit for the amount paid, but if it is later determined that the fee paid is incorrect
or not timely paid, then the 25 percent late charge penalty (and other charges and/or sanctions, as
appropriate) will be assessed on the portion that is not paid in a timely manner.
31.
We will withhold action on any applications or other requests for benefits filed by anyone
who is delinquent in any non-tax debts owed to the Commission (including regulatory fees) and will
ultimately dismiss those applications or other requests if payment of the delinquent debt or other
satisfactory arrangement for payment is not made.42 Failure to pay regulatory fees can also result in the
initiation of a proceeding to revoke any and all authorizations held by the entity responsible for paying
the delinquent fee(s).

F.

Initial Regulatory Flexibility Analysis

32.
An initial regulatory flexibility analysis ("IRFA") is contained in Appendix E.
Comments to the IRFA must be identified as responses to the IRFA and filed by the deadlines for
comments on the Notice. The Commission will send a copy of the Notice, including the IRFA, to the
Chief Counsel for Advocacy of the Small Business Administration.

G.

Initial Paperwork Reduction Act of 1995 Analysis

33.
This Notice of Proposed Rulemaking does not contain any new or modified information
collection burden for small business concerns with fewer than 25 employees, pursuant to the Small
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506 (c) (4).

H.

Congressional Review Act Analysis

34.
The Commission will send a copy of this Notice of Proposed Rulemaking to Congress
and the Government Accountability Office pursuant to the Congressional Review Act.43

I.

Ex Parte Rules

35.
This is a "permit-but-disclose" proceeding subject to the requirements under section
1.1206(b) of the Commission's Rules.44 Ex parte presentations are permissible if disclosed in
accordance with Commission Rules, except during the Sunshine Agenda period when presentations, ex
parte
or otherwise, are generally prohibited. Persons making oral ex parte presentations are reminded
that a memorandum summarizing a presentation must contain a summary of the substance of the


39 See 47 C.F.R. 1.1910.
40 Delinquent debt owed to the Commission triggers application of the "red light rule" which requires offsets or
holds on pending disbursements. 47 C.F.R. 1.1910. In 2004, the Commission adopted rules implementing the
requirements of the DCIA. See Amendment of Parts 0 and 1 of the Commission's Rules, MD Docket No. 02-339,
Report and Order, 19 FCC Rcd 6540 (2004); 47 C.F.R. Part 1, Subpart O, Collection of Claims Owed the United
States.
41 47 C.F.R. 1.1940(d).
42 See 47 C.F.R. 1.1161(c), 1.1164(f)(5), and 1.1910.
43 See 5 U.S.C. 801(a)(1)(A). The Congressional Review Act is contained in Title II, 251, of the CWAAA; see
Pub. L. No. 104-121, Title II, 251, 110 Stat. 868.
44 See 47 C.F.R. 1.1206(b); see also 47 C.F.R. 1.1202, 1.1203.
13

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FCC 11-68

presentation and not merely a listing of the subjects discussed. More than a one- or two-sentence
description of the views and arguments presented is generally required.45 Additional rules pertaining to
oral and written presentations are set forth in Section 1.1206(b).

J.

Filing Requirements

36.
Comments and Replies. Pursuant to Sections 1.415 and 1.419 of the Commission's
Rules, 47 CFR 1.415, 1.419, interested parties may file comments and reply comments on or before
the dates indicated on the first page of this document. Comments may be filed using: (1) the
Commission's Electronic Comment Filing System (ECFS), (2) the Federal Government's eRulemaking
Portal, or (3) by filing paper copies. See Electronic Filing of Documents in Rulemaking Proceedings, 63
FR 24121 (1998).
37.
Electronic Filers: Comments may be filed electronically using the Internet by accessing
the ECFS: http://fjallfoss.fcc.gov/ecfs2/ or the Federal eRulemaking Portal:
http://www.regulations.gov.
38.
Paper Filers: Parties who choose to file by paper must file an original and four copies of
each filing. If more than one docket or rulemaking number appears in the caption of this proceeding,
filers must submit two additional copies for each additional docket or rulemaking number.

All hand-delivered or messenger-delivered paper filings for the Commission's Secretary
must be delivered to FCC Headquarters at 445 12th St., SW, Room TW-A325,
Washington, DC 20554. The filing hours are 8:00 a.m. to 7:00 p.m. All hand deliveries
must be held together with rubber bands or fasteners. Any envelopes must be disposed of
before entering the building.

Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority
Mail) must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743.

U.S. Postal Service first-class, Express, and Priority mail must be addressed to 445 12th
Street, SW, Washington DC 20554.
People with Disabilities: To request materials in accessible formats for people with
disabilities (braille, large print, electronic files, audio format), send an e-mail to
fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at 202-418-0530
(voice), 202-418-0432 (tty).
39.
Availability of Documents. Comments, reply comments, and ex parte submissions will
be available for public inspection during regular business hours in the FCC Reference Center, Federal
Communications Commission, 445 12th Street, SW, CY-A257, Washington, DC 20554. These
documents will also be available free online, via ECFS. Documents will be available electronically in
ASCII, Word, and/or Adobe Acrobat.
40.
Accessibility Information. To request information in accessible formats (computer
diskettes, large print, audio recording, and Braille), send an e-mail to fcc504@fcc.gov or call the
Commission's Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432
(TTY). This document can also be downloaded in Word and Portable Document Format ("PDF") at:
http://www.fcc.gov.


45 See 47 C.F.R. 1.1206(b)(2).
14

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FCC 11-68

III.

ORDERING CLAUSES

41.
Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and (j), 9, and 303(r) of the
Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 159, and 303(r), this Notice of
Proposed Rulemaking IS HEREBY ADOPTED.
42.
IT IS FURTHER ORDERED that the Commission's Consumer and Governmental
Affairs Bureau, Reference Information Center, SHALL SEND a copy of this Notice of Proposed
Rulemaking, including the Initial Regulatory Flexibility Analysis in Appendix E, to the Chief Counsel
for Advocacy of the U.S. Small Business Administration.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary

15

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FCC 11-68

APPENDIX A

Calculation of FY 2011 Revenue Requirements and Pro-Rata Fees

Regulatory fees for the categories shaded in gray are collected by the Commission in advance to cover the
term of the license and are submitted along with the application at the time the application is filed.

Fee Category

FY 2011

FY 2010

Pro-Rated Computed Round

Expected

Payment Units Years

Revenue

FY 2011

New FY ed New

FY 2011

Estimate

Revenue

2011

FY

Revenue

Require-

Regulatory 2011

ment

Fee

Regula

-tory

Fee

PLMRS (Exclusive
1,200
10
480,000
495,845
41
40
480,000
Use)
PLMRS (Shared
9,300
10
2,300,000
2,375,921
26
25
2,325,000
use)
Microwave
10,200
10
2,375,000
2,324,270
23
25
2,550,000
218-219 MHz
3
10
1,950
2,015
67
65
1,950
(Formerly IVDS)
Marine (Ship)
6,700 10
800,000
774,757
12
10
670,000
GMRS
9,300
5
242,500
284,078
6
5
232,500
Aviation (Aircraft)
4,600 10
230,000
361,553
8
10
460,000
Marine (Coast)
265 10
119,250
127,835
48
50
132,500
Aviation (Ground)
1,100 10
150,000
154,952
14
15
165,000
Amateur Vanity
14,600
10
196,840
207,635
1.42
1.42
207,320
Call Signs
AM Class A4a
66
1
253,300
256,832
3,891
3,900
257,400
AM Class B4b
1,439
1
3,053,700
3,075,578
2,137
2,125
3,057,875
AM Class C4c
918
1
1,078,650
1,090,083
1,187
1,175
1,078,650
AM Class D4d
1,637
1
3,589,125
3,631,802
2,219
2,225
3,642,325
FM Classes A, B1
3,114
1
7,372,000
7,652,108
2,457
2,450
7,629,300
& C34e
FM Classes B, C,
3,111
1
9,308,775
9,400,580
3,022
3,025
9,410,775
C0, C1 & C24f
AM Construction
90
1
43,680
44,212
491
490
44,100
Permits
FM Construction
151
1
105,300
101,925
675
675
101,925
Permits1
Satellite TV
133
1
163,800
167,270
1,258
1,250
166,250
Satellite TV
3
1
2,025
2,015
672
675
2,025
Construction Permit
VHF Markets 1-10
20
1
1,631,000
1,692,381
84,619 84,625
1,692,500
VHF Markets 11-25
26
1
1,708,425
1,772,526
68,174 68,175
1,772,550
VHF Markets 26-50
36
1
1,404,150
1,457,127
40,476 40,475
1,457,100
VHF Markets 51-
52
1
1,140,000
1,182,936
22,749 22,750
1,183,000
100
16

Federal Communications Commission

FCC 11-68

Fee Category

FY 2011

FY 2010

Pro-Rated Computed Round

Expected

Payment Units Years

Revenue

FY 2011

New FY ed New

FY 2011

Estimate

Revenue

2011

FY

Revenue

Require-

Regulatory 2011

ment

Fee

Regula

-tory

Fee

VHF Remaining
127
1
747,250
774,447
6,098
6,100
774,700
Markets
VHF Construction
2
1
18,375
12,200
6,100
6,100
12,200
Permits1
UHF Markets 1-10
113
1
3,776,175
3,915,430
34,650 34,650
3,915,450
UHF Markets 11-25
107
1
3,398,475
3,524,319
32,938 32,950
3,525,650
UHF Markets 26-50
144
1
2,910,600
3,016,311
20,947 20,950
3,016,800
UHF Markets 51-
238
1
2,829,750
2,932,289
12,321 12,325
2,933,350
100
UHF Remaining
264
1
835,700
866,787
3,283
3,275
864,600
Markets
UHF Construction
10
1
36,600
32,750
3,275
3,275
32,750
Permits1
Broadcast
26,850
1
275,000
284,078
11
10
268,500
Auxiliaries
LPTV/Translators/
3,607
1
1,411,000
1,425,553
395
395
1,424,765
Boosters/Class A
TV
CARS Stations
470
1
173,250
174,578
371
370
173,900
Cable TV Systems
63,400,000
1
57,405,000 58,633,597
0.92482
0.93 58,962,000
Interstate
$41,000,000,000
1
151,117,000 148,100,156
0.0036122 0.00361 148,010,000
Telecommunication
Service Providers
CMRS Mobile
289,000,000
1
50,940,000 51,522,378
0.1783
0.18 52,020,000
Services
(Cellular/Public
Mobile)
CMRS Messag.
4,700,000
1
480,000
376,000
0.0800
0.080
376,000
Services
BRS2
1,690
1
514,600
523,900
310
310
523,900
LMDS
520
1
158,100
161,200
310
310
161,200
Per 64 kbps Int'l
2,600,000
1
1,130,233
1,148,478
.442
.44
1,144,000
Bearer Circuits
Terrestrial (Common)
& Satellite (Common
& Non-Common)
Submarine Cable
39.375
1
7,983,860
8,076,107
205,107 205,100
8,075,813
Providers (see chart
in Appendix C)3
Earth Stations
3,575
1
864,000
878,575
246
245
875,875
17

Federal Communications Commission

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Fee Category

FY 2011

FY 2010

Pro-Rated Computed Round

Expected

Payment Units Years

Revenue

FY 2011

New FY ed New

FY 2011

Estimate

Revenue

2011

FY

Revenue

Require-

Regulatory 2011

ment

Fee

Regula

-tory

Fee

Space Stations
87
1
11,129,475 11,429,445
131,373 131,375 11,429,625
(Geostationary)
Space Stations
6
1
828,300
850,528
141,755 141,750
850,500
(Non-Geostationary
****** Total
336,712,213 337,295,341
338,091,623
Estimated Revenue
to be Collected
****** Total
335,794,000 335,794,000
335,794,000
Revenue
Requirement

918,213
1,501,341
2,297,623
Difference
1 The FM Construction Permit revenues and the VHF and UHF Construction Permit revenues were adjusted to set
the regulatory fee to an amount no higher than the lowest licensed fee for that class of service. The reductions in the
FM Construction Permit revenues are offset by increases in the revenue totals for FM radio stations. Similarly,
reductions in the VHF and UHF Construction Permit revenues are offset by increases in the revenue totals for VHF
and UHF television stations, respectively.
2 MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and
101 of the Commission's Rules to Facilitate the Provision of Fixed and Mobile Broadband Access, Educational and
Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands
, Report & Order and Further Notice of
Proposed Rulemaking, 19 FCC Rcd 14165, 14169, 6 (2004).
3 The chart at the end of Appendix B lists the submarine cable bearer circuit regulatory fees (common and non-
common carrier basis) that resulted from the adoption of the following proceedings: Assessment and Collection of
Regulatory Fees for Fiscal Year 2008
, Second Report and Order (MD Docket No. 08-65, RM-11312), released
March 24, 2009; and Assessment and Collection of Regulatory Fees for Fiscal Year 2009 and Assessment and
Collection of Regulatory Fees for Fiscal Year 2008,
Notice of Proposed Rulemaking and Order (MD Docket No.
09-65, MD Docket No. 08-65), released on May 14, 2009.
4 The fee amounts listed in the column entitled "Rounded New FY 2011 Regulatory Fee" constitute a weighted
average media regulatory fee by class of service. The actual FY 2011 regulatory fees for AM/FM radio station are
listed on a grid located in Appendix B.
18

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APPENDIX B

FY 2011 Schedule of Regulatory Fees

Regulatory fees for the categories shaded in gray are collected by the Commission in advance to cover the
term of the license and are submitted along with the application at the time the application is filed.

Annual

Fee Category

Regulatory Fee

(U.S. $'s)
PLMRS (per license) (Exclusive Use) (47 CFR part 90)
40
Microwave (per license) (47 CFR part 101)
25
218-219 MHz (Formerly Interactive Video Data Service) (per license) (47 CFR
65
part 95)
Marine (Ship) (per station) (47 CFR part 80)
10
Marine (Coast) (per license) (47 CFR part 80)
50
General Mobile Radio Service (per license) (47 CFR part 95)
5
Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category)
25
PLMRS (Shared Use) (per license) (47 CFR part 90)
25
Aviation (Aircraft) (per station) (47 CFR part 87)
10
Aviation (Ground) (per license) (47 CFR part 87)
15
Amateur Vanity Call Signs (per call sign) (47 CFR part 97)
1.42
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and
.18
90)
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90)
.08
Broadband Radio Service (formerly MMDS/ MDS) (per license) (47 CFR part
310
21)
Local Multipoint Distribution Service (per call sign) (47 CFR, part 101)
310
AM Radio Construction Permits
490
FM Radio Construction Permits
675
TV (47 CFR part 73) VHF Commercial
Markets 1-10
84,625
Markets 11-25
68,175
Markets 26-50
40,475
Markets 51-100
22,750
Remaining Markets
6,100
Construction Permits
6,100
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FCC 11-68

Annual

Fee Category

Regulatory Fee

(U.S. $'s)
TV (47 CFR part 73) UHF Commercial
Markets 1-10
34,650
Markets 11-25
32,950
Markets 26-50
20,950
Markets 51-100
12,325
Remaining Markets
3,275
Construction Permits
3,275
Satellite Television Stations (All Markets)
1,250
Construction Permits Satellite Television Stations
675
Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74)
395
Broadcast Auxiliaries (47 CFR part 74)
10
CARS (47 CFR part 78)
370
Cable Television Systems (per subscriber) (47 CFR part 76)
.93
Interstate Telecommunication Service Providers (per revenue dollar)
.00361
Earth Stations (47 CFR part 25)
245
Space Stations (per operational station in geostationary orbit) (47 CFR part 25)
also includes DBS Service (per operational station) (47 CFR part 100)
131,375
Space Stations (per operational system in non-geostationary orbit) (47 CFR part
141,750
25)
International Bearer Circuits - Terrestrial/Satellites (per 64KB circuit)
.44
International Bearer Circuits - Submarine Cable
See Table Below
20

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FY 2011 SCHEDULE OF REGULATORY FEES (continued)

FY 2011 RADIO STATION REGULATORY FEES

Population

AM Class AM Class

AM

AM

FM Classes

FM Classes

Served

A

B

Class C

Class D

A, B1 & C3

B, C, C0, C1

& C2
<=25,000
$700
$575
$525
$600
$675
$850
25,001 75,000
$1,400
$1,150
$800
$900
$1,350
$1,500
75,001 150,000
$2,100
$1,450
$1,050
$1,500
$1,850
$2,750
150,001 500,000
$3,150
$2,450
$1,575
$1,800
$2,875
$3,600
500,001 1,200,000
$4,550
$3,750
$2,625
$3,000
$4,550
$5,300
1,200,001 3,000,00
$7,000
$5,750
$3,950
$4,800
$7,425
$8,500
>3,000,000
$8,400
$6,900
$5,000
$6,000
$9,450
$11,050

FY 2011 SCHEDULE OF REGULATORY FEES

International Bearer Circuits - Submarine Cable

Submarine Cable Systems
Fee amount
Address
(capacity as of December 31, 2010)
< 2.5 Gbps
FCC, International, P.O. Box
$12,825
979084, St. Louis, MO 63197-
9000
2.5 Gbps or greater, but less
than 5 Gbps

FCC, International, P.O. Box
$25,650
979084, St. Louis, MO 63197-
9000
5 Gbps or greater, but less than
10 Gbps

FCC, International, P.O. Box
$51,275
979084, St. Louis, MO 63197-
9000
10 Gbps or greater, but less
than 20 Gbps

FCC, International, P.O. Box
$102,575
979084, St. Louis, MO 63197-
9000
20 Gbps or greater
FCC, International, P.O. Box
$205,125
979084, St. Louis, MO 63197-
9000
21

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APPENDIX C

Sources of Payment Unit Estimates for FY 2011

In order to calculate individual service fees for FY 2011, we adjusted FY 2010 payment units for each
service to more accurately reflect expected FY 2011 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. The databases we
consulted include our Universal Licensing System ("ULS"), International Bureau Filing System ("IBFS"),
Consolidated Database System ("CDBS") and Cable Operations and Licensing System ("COALS"), as
well as reports generated within the Commission such as the Wireline Competition Bureau's Trends in
Telephone Service
and the Wireless Telecommunications Bureau's Numbering Resource Utilization
Forecast
.
We sought verification for these estimates from multiple sources and, in all cases; we compared FY 2011
estimates with actual FY 2010 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 with sufficient accuracy.
These include an unknown number of waivers and/or exemptions that may occur in FY 2011 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. When we note, for example, that our estimated FY 2011 payment
units are based on FY 2010 actual payment units, it does not necessarily mean that our FY 2011 projection
is exactly the same number as in FY 2010. We have either rounded the FY 2011 number or adjusted it
slightly to account for these variables.

FEE CATEGORY

SOURCES OF PAYMENT UNIT ESTIMATES

Land Mobile (All), Microwave,
Based on Wireless Telecommunications Bureau ("WTB")
218-219 MHz, Marine (Ship &
projections of new applications and renewals taking into
Coast), Aviation (Aircraft &
consideration existing Commission licensee data bases. Aviation
Ground), GMRS, Amateur
(Aircraft) and Marine (Ship) estimates have been adjusted to take
Vanity Call Signs, Domestic
into consideration the licensing of portions of these services on a
Public Fixed
voluntary basis.
CMRS Cellular/Mobile Services
Based on WTB projection reports, and FY 10 payment data.
CMRS Messaging Services
Based on WTB reports, and FY 10 payment data.
AM/FM Radio Stations
Based on CDBS data, adjusted for exemptions, and actual FY 2010
payment units.
UHF/VHF Television Stations
Based on CDBS data, adjusted for exemptions, and actual FY 2010
payment units.
AM/FM/TV Construction Permits
Based on CDBS data, adjusted for exemptions, and actual FY 2010
payment units.
LPTV, Translators and Boosters,
Based on CDBS data, adjusted for exemptions, and actual FY 2010
Class A Television
payment units.
Broadcast Auxiliaries
Based on actual FY 2010 payment units.
BRS (formerly MDS/MMDS)
Based on WTB reports and actual FY 2010 payment units.
LMDS
Based on WTB reports and actual FY 2010 payment units.
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Cable Television Relay Service
Based on data from Media Bureau's COALS database and actual
("CARS") Stations
FY 2010 payment units.
Cable Television System
Based on publicly available data sources for estimated subscriber
Subscribers
counts and actual FY 2010 payment units.
Interstate Telecommunication
Based on FCC Form 499-Q data for the four quarters of calendar
Service Providers
year 2010, the Wireline Competition Bureau projected the amount
of calendar year 2009 revenue that will be reported on 2011 FCC
Form 499-A worksheets in April, 2011.
Earth Stations
Based on International Bureau ("IB") licensing data and actual FY
2010 payment units.
Space Stations (GSOs & NGSOs)
Based on IB data reports and actual FY 2010 payment units.
International Bearer Circuits
Based on IB reports and submissions by licensees.
Submarine Cable Licenses
Based on IB license information.
23

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APPENDIX D

Factors, Measurements, and Calculations that go into Determining Station Signal Contours

and Associated Population Coverages

AM Stations

For stations with nondirectional daytime antennas, the theoretical radiation was used at all
azimuths. For stations with directional daytime antennas, specific information on each day tower,
including field ratio, phasing, spacing and orientation was retrieved, as well as the theoretical
pattern root-mean-square of the radiation in all directions in the horizontal plane ("RMS") figure
milliVolt per meter (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.1 Radiation values were calculated
for each of 360 radials around the transmitter site. Next, estimated soil conductivity data was
retrieved from a database representing the information in FCC Figure R3.2 Using the calculated
horizontal radiation values, and the retrieved soil conductivity data, the distance to the principal
community (5 mV/m) contour was predicted for each of the 360 radials. The resulting distance to
principal community contours were used to form a geographical polygon. Population counting
was accomplished by determining which 2000 block centroids were contained in the polygon. (A
block centroid is the center point of a small area containing population as computed by the U.S.
Census Bureau.) The sum of the population figures for all enclosed blocks represents the total
population for the predicted principal community coverage area.

FM Stations

The greater of the horizontal or vertical effective radiated power ("ERP") (kW) and respective
height above average terrain ("HAAT") (m) combination was used. Where the antenna height
above mean sea level ("HAMSL") was available, it was used in lieu of the average HAAT figure
to calculate specific HAAT figures for each of 360 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 Field Strength (50-50) propagation curves
specified in 47 C.F.R. 73.313 of the Commission's Rules to predict the distance to the principal
community (70 dBu (decibel above 1 microVolt per meter) or 3.17 mV/m) contour for each of the
360 radials.3 The resulting distance to principal community contours were used to form a
geographical polygon. Population counting was accomplished by determining which 2000 block
centroids were contained in the polygon. The sum of the population figures for all enclosed
blocks represents the total population for the predicted principal community coverage area.
1 47 C.F.R. 73.150 and 73.152.
2 See Map of Estimated Effective Ground Conductivity in the United States, 47 C.F.R. 73.190 Figure R3.
3 47 C.F.R. 73.313
24

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APPENDIX E

Initial Regulatory Flexibility Analysis

1.
As required by the Regulatory Flexibility Act ("RFA"),1 the Commission prepared
this Initial Regulatory Flexibility Analysis ("IRFA") of the possible significant economic impact on
small entities by the policies and rules proposed in this Notice of Proposed Rulemaking. Written public
comments are requested on this IRFA. Comments must be identified as responses to the IRFA and must
be filed on or before the dates indicated on the first page of this Notice of Proposed Rulemaking. The
Commission will send a copy of the Notice, including the IRFA, to the Chief Counsel for Advocacy of
the Small Business Administration.2 In addition, the Notice and IRFA (or summaries thereof) will be
published in the Federal Register.3

I.

Need for, and Objectives of, the Notice:

2.
This rulemaking proceeding was initiated for the Commission to obtain comments
regarding its proposed amendment to its Schedule of Regulatory Fees in the amount of $335,794,000,
which is the amount that Congress has required the Commission to recover. The Commission seeks to
collect the necessary amount through its revised Schedule of Regulatory Fees in the most efficient
manner possible and without undue public burden.

II. Legal Basis:

3.
This action, including publication of proposed rules, is authorized under Sections
(4)(i) and (j), 9, and 303(r) of the Communications Act of 1934, as amended.4

III. Description and Estimate of the Number of Small Entities to which the 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 and policies, if
adopted.5 The RFA generally defines the term "small entity" as having the same meaning as the terms
"small business," "small organization," and "small governmental jurisdiction."6 In addition, the term
"small business" has the same meaning as the term "small business concern" under the Small Business
Act.7 A "small business concern" is one which: (1) is independently owned and operated; (2) is not


1 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 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").
2 5 U.S.C. 603(a).
3 Id.
4 47 U.S.C. 154(i) and (j), 159, and 303(r).
5 5 U.S.C. 603(b)(3).
6 5 U.S.C. 601(6).
7 5 U.S.C. 601(3) (incorporating by reference the definition of "small-business concern" in the Small Business
Act, 15 U.S.C. 632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a small business applies "unless an
agency, after consultation with the Office of Advocacy of the Small Business Administration and after opportunity
for public comment, establishes one or more definitions of such term which are appropriate to the activities of the
agency and publishes such definition(s) in the Federal Register."
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FCC 11-68

dominant in its field of operation; and (3) satisfies any additional criteria established by the SBA.8
5.

Small Businesses

. Nationwide, there are a total of approximately 29.6 million
small businesses, according to the SBA.9
6.

Small Organizations

. Nationwide, as of 2002, there are approximately 1.6
million small organizations.10 A "small organization" is generally "any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field."11
7.

Small Governmental Jurisdictions

. The term "small governmental jurisdiction"
is defined generally as "governments of cities, towns, townships, villages, school districts, or special
districts, with a population of less than fifty thousand."12 Census Bureau data for 2002 indicate that there
were 87,525 local governmental jurisdictions in the United States.13 We estimate that, of this total,
84,377 entities were "small governmental jurisdictions."14 Thus, we estimate that most governmental
jurisdictions are small.
8.
We have included small incumbent local exchange carriers 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."15 The SBA's Office of Advocacy contends
that, for RFA purposes, small incumbent local exchange carriers are not dominant in their field of
operation because any such dominance is not "national" in scope.16 We have therefore included small
incumbent local exchange carriers in this RFA analysis, although we emphasize that this RFA action has
no effect on Commission analyses and determinations in other, non-RFA contexts.
9.

Incumbent Local Exchange Carriers ("ILECs")

. Neither the Commission nor
the SBA has developed a small business size standard specifically for incumbent local exchange services.
The appropriate size standard under SBA rules is for the category Wired Telecommunications Carriers.
Under that size standard, such a business is small if it has 1,500 or fewer employees.17 According to
Commission data,18 1,311 carriers have reported that they are engaged in the provision of incumbent local


8 15 U.S.C. 632.
9 See SBA, Office of Advocacy, "Frequently Asked Questions," http://web.sba.gov/faqs (accessed Jan.
2009).
10 Independent Sector, The New Nonprofit Almanac & Desk Reference (2002).
11 5 U.S.C. 601(4).
12 5 U.S.C. 601(5).
13 U.S. Census Bureau, Statistical Abstract of the United States: 2006, Section 8, p. 272, Table 415.
14 We assume that the villages, school districts, and special districts are small, and total 48,558. See U.S. Census
Bureau, Statistical Abstract of the United States: 2006, section 8, p. 273, Table 417. For 2002, Census Bureau data
indicate that the total number of county, municipal, and township governments nationwide was 38,967, of which
35,819 were small. Id.
15 15 U.S.C. 632.
16 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. See 13
C.F.R. 121.102(b).
17 13 C.F.R. 121.201, North American Industry Classification System (NAICS) code 517110.
18 FCC, Wireline Competition Bureau, Industry Analysis and Technology Division, "Trends in Telephone Service"
(continued....)
26

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exchange services. Of these 1,311 carriers, an estimated 1,024 have 1,500 or fewer employees and 287
have more than 1,500 employees. Consequently, the Commission estimates that most providers of
incumbent local exchange service are small businesses that may be affected by our action.
10.

Competitive Local Exchange Carriers ("CLECs"), Competitive Access

Providers ("CAPs"), "Shared-Tenant Service Providers," and "Other Local Service Providers."


Neither the Commission nor the SBA has developed a small business size standard specifically for these
service providers. The appropriate size standard under SBA rules is for the category Wired
Telecommunications Carriers. Under that size standard, such a business is small if it has 1,500 or fewer
employees.19 According to Commission data,20 1005 carriers have reported that they are engaged in the
provision of either competitive access provider services or competitive local exchange carrier services.
Of these 1005 carriers, an estimated 918 have 1,500 or fewer employees and 87 have more than 1,500
employees. In addition, 16 carriers have reported that they are "Shared-Tenant Service Providers," and
all 16 are estimated to have 1,500 or fewer employees. In addition, 89 carriers have reported that they are
"Other Local Service Providers." Of the 89, all have 1,500 or fewer employees. Consequently, the
Commission estimates that most providers of competitive local exchange service, competitive access
providers, "Shared-Tenant Service Providers," and "Other Local Service Providers" are small entities that
may be affected by our action.
11.

Local Resellers

. The SBA has developed a small business size standard for the
category of Telecommunications Resellers. Under that size standard, such a business is small if it has
1,500 or fewer employees.21 According to Commission data,22 151 carriers have reported that they are
engaged in the provision of local resale services. Of these, an estimated 149 have 1,500 or fewer
employees and two have more than 1,500 employees. Consequently, the Commission estimates that the
majority of local resellers are small entities that may be affected by our action.
12.

Toll Resellers

. The SBA has developed a small business size standard for the
category of Telecommunications Resellers. Under that size standard, such a business is small if it has
1,500 or fewer employees.23 According to Commission data,24 815 carriers have reported that they are
engaged in the provision of toll resale services. Of these, an estimated 787 have 1,500 or fewer
employees and 28 have more than 1,500 employees. Consequently, the Commission estimates that the
majority of toll resellers are small entities that may be affected by our action.
13.

Payphone Service Providers ("PSPs")

. Neither the Commission nor the SBA
has developed a small business size standard specifically for payphone services providers. The
appropriate size standard under SBA rules is for the category Wired Telecommunications Carriers. Under
that size standard, such a business is small if it has 1,500 or fewer employees.25 According to
Commission data,26 526 carriers have reported that they are engaged in the provision of payphone
services. Of these, an estimated 524 have 1,500 or fewer employees and two have more than 1,500
(Continued from previous page)


at Table 5.3, Page 5-5 (Aug. 2008) ("Trends in Telephone Service"). This source uses data that are current as of
November 1, 2006.
19 13 C.F.R. 121.201, NAICS code 517110.
20 "Trends in Telephone Service" at Table 5.3.
21 13 C.F.R. 121.201, NAICS code 517310.
22 "Trends in Telephone Service" at Table 5.3.
23 13 C.F.R. 121.201, NAICS code 517310.
24 "Trends in Telephone Service" at Table 5.3.
25 3 C.F.R. 121.201, NAICS code 517110.
26 "Trends in Telephone Service" at Table 5.3.
27

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employees. Consequently, the Commission estimates that the majority of payphone service providers are
small entities that may be affected by our action.
14.

Interexchange Carriers ("IXCs")

. Neither the Commission nor the SBA has
developed a small business size standard specifically for providers of interexchange services. The
appropriate size standard under SBA rules is for the category Wired Telecommunications Carriers. Under
that size standard, such a business is small if it has 1,500 or fewer employees.27 According to
Commission data,28 300 carriers have reported that they are engaged in the provision of interexchange
service. Of these, an estimated 268 have 1,500 or fewer employees and 32 have more than 1,500
employees. Consequently, the Commission estimates that the majority of IXCs are small entities that
may be affected by our action.
15.

Operator Service Providers ("OSPs")

. Neither the Commission nor the SBA
has developed a small business size standard specifically for operator service providers. The appropriate
size standard under SBA rules is for the category Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.29 According to Commission data,30
28 carriers have reported that they are engaged in the provision of operator services. Of these, an
estimated 27 have 1,500 or fewer employees and one has more than 1,500 employees. Consequently, the
Commission estimates that the majority of OSPs are small entities that may be affected by our action.
16.

Prepaid Calling Card Providers

. Neither the Commission nor the SBA has
developed a small business size standard specifically for prepaid calling card providers. The appropriate
size standard under SBA rules is for the category Telecommunications Resellers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.31 According to Commission data,32
88 carriers have reported that they are engaged in the provision of prepaid calling cards. Of these, an
estimated 85 have 1,500 or fewer employees and three have more than 1,500 employees. Consequently,
the Commission estimates that the majority of prepaid calling card providers are small entities that may
be affected by our action.
17.
800 and 800-Like Service Subscribers.33 Neither the Commission nor the SBA
has developed a small business size standard specifically for 800 and 800-like service ("toll free")
subscribers. The appropriate size standard under SBA rules is for the category Telecommunications
Resellers. Under that size standard, such a business is small if it has 1,500 or fewer employees.34 The
most reliable source of information regarding the number of these service subscribers appears to be data
the Commission receives from Database Service Management on the 800, 866, 877, and 888 numbers in
use.35 According to our data, at the end of December 2007, the number of 800 numbers assigned was
7,860,000; the number of 888 numbers assigned was 5,210,184; the number of 877 numbers assigned was
4,388,682; and the number of 866 numbers assigned was 7,029,116. We do not have data specifying the
number of these subscribers that are independently owned and operated or have 1,500 or fewer


27 13 C.F.R. 121.201, NAICS code 517110.
28 "Trends in Telephone Service" at Table 5.3.
29 13 C.F.R. 121.201, NAICS code 517110.
30 "Trends in Telephone Service" at Table 5.3.
31 13 C.F.R. 121.201, NAICS code 517310.
32 "Trends in Telephone Service" at Table 5.3.
33 We include all toll-free number subscribers in this category.
34 13 C.F.R. 121.201, NAICS code 517310.
35 "Trends in Telephone Service" at Tables 18.4, 18.5, 18.6, and 18.7.
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employees, and thus are unable at this time to estimate with greater precision the number of toll free
subscribers that would qualify as small businesses under the SBA size standard. Consequently, we
estimate that there are 7,860,000 or fewer small entity 800 subscribers; 5,210,184 or fewer small entity
888 subscribers; 4,388,682 or fewer small entity 877 subscribers, and 7,029,116 or fewer entity 866
subscribers.
18.

Satellite Telecommunications and All Other Telecommunications

. These two
economic census categories address the satellite industry. The first category has a small business size
standard of $15 million or less in average annual receipts, under SBA rules.36 The second has a size
standard of $25 million or less in annual receipts.37 The most current Census Bureau data in this context,
however, are from the (last) economic census of 2002, and we will use those figures to gauge the
prevalence of small businesses in these categories.38
19.
The category of Satellite Telecommunications "comprises establishments
primarily engaged in providing telecommunications services to other establishments in the
telecommunications and broadcasting industries by forwarding and receiving communications signals via
a system of satellites or reselling satellite telecommunications."39 For this category, Census Bureau data
for 2002 show that there were a total of 371 firms that operated for the entire year.40 Of this total, 307
firms had annual receipts of under $10 million, and 26 firms had receipts of $10 million to $24,999,999.41
Consequently, we estimate that the majority of Satellite Telecommunications firms are small entities that
might be affected by our action.
20.
The second category of All Other Telecommunications comprises, inter alia,
"establishments primarily engaged in providing specialized telecommunications services, such as satellite
tracking, communications telemetry, and radar station operation. This industry also includes
establishments primarily engaged in providing satellite terminal stations and associated facilities
connected with one or more terrestrial systems and capable of transmitting telecommunications to, and
receiving telecommunications from, satellite systems."42 For this category, Census Bureau data for 2002
show that there were a total of 332 firms that operated for the entire year.43 Of this total, 303 firms had
annual receipts of under $10 million and 15 firms had annual receipts of $10 million to $24,999,999.44
Consequently, we estimate that the majority of All Other Telecommunications firms are small entities that
might be affected by our action.
21.

Wireless Telecommunications Carriers (except Satellite)

. Since 2007, the


36 13 C.F.R. 121.201, NAICS code 517410.
37 13 C.F.R. 121.201, NAICS code 517919.
38 13 C.F.R. 121.201, NAICS codes 517410 and 517910 (2002).
39 U.S. Census Bureau, 2007 NAICS Definitions, "517410 Satellite Telecommunications";
http://www.census.gov/naics/2007/def/ND517410.HTM.
40 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, "Establishment and Firm Size
(Including Legal Form of Organization)," Table 4, NAICS code 517410 (issued Nov. 2005).
41 Id. An additional 38 firms had annual receipts of $25 million or more.
42 U.S. Census Bureau, 2007 NAICS Definitions, "517919 All Other Telecommunications";
http://www.census.gov/naics/2007/def/ND517919.HTM#N517919.
43 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, "Establishment and Firm Size
(Including Legal Form of Organization)," Table 4, NAICS code 517910 (issued Nov. 2005).
44 Id. An additional 14 firms had annual receipts of $25 million or more.
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Census Bureau has placed wireless firms within this new, broad, economic census category.45 Prior to
that time, such firms were within the now-superseded categories of "Paging" and "Cellular and Other
Wireless Telecommunications."46 Under the present and prior categories, the SBA has deemed a wireless
business to be small if it has 1,500 or fewer employees.47 Because Census Bureau data are not yet
available for the new category, we will estimate small business prevalence using the prior categories and
associated data. For the category of Paging, data for 2002 show that there were 807 firms that operated
for the entire year.48 Of this total, 804 firms had employment of 999 or fewer employees, and three firms
had employment of 1,000 employees or more.49 For the category of Cellular and Other Wireless
Telecommunications, data for 2002 show that there were 1,397 firms that operated for the entire year.50
Of this total, 1,378 firms had employment of 999 or fewer employees, and 19 firms had employment of
1,000 employees or more.51 Thus, we estimate that the majority of wireless firms are small.
22.

Auctions.

Initially, we note that, as a general matter, the number of winning
bidders that qualify as small businesses at the close of an auction does not necessarily represent the
number of small businesses currently in service. Also, the Commission does not generally track
subsequent business size unless, in the context of assignments or transfers, unjust enrichment issues are
implicated.
23.

Common Carrier Paging

. As noted, the SBA has developed a small business
size standard for Wireless Telecommunications Carriers (except Satellite) firms within the broad
economic census categories of "Cellular and Other Wireless Telecommunications."52 Since 2007, the
Census Bureau has placed wireless firms within this new, broad, economic census category.53 Prior to
that time, such firms were within the now-superseded categories of "Paging" and "Cellular and Other
Wireless Telecommunications."54 Under the present and prior categories, the SBA has deemed a wireless
business to be small if it has 1,500 or fewer employees.55 Because Census Bureau data are not yet


45 U.S. Census Bureau, 2007 NAICS Definitions, "517210 Wireless Telecommunications Categories (Except
Satellite)"; http://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
46 U.S. Census Bureau, 2002 NAICS Definitions, "517211 Paging";
http://www.census.gov/epcd/naics02/def/NDEF517.HTM.; U.S. Census Bureau, 2002 NAICS Definitions, "517212
Cellular and Other Wireless Telecommunications"; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
47 13 C.F.R. 121.201, NAICS code 517210 (2007 NAICS). The now-superseded, pre-2007 C.F.R. citations were
13 C.F.R. 121.201, NAICS codes 517211 and 517212 (referring to the 2002 NAICS).
48 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, "Establishment and Firm Size
(Including Legal Form of Organization," Table 5, NAICS code 517211 (issued Nov. 2005).
49 Id. The census data do not provide a more precise estimate of the number of firms that have employment of
1,500 or fewer employees; the largest category provided is for firms with "1000 employees or more."
50 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, "Establishment and Firm Size
(Including Legal Form of Organization," Table 5, NAICS code 517212 (issued Nov. 2005).
51 Id. The census data do not provide a more precise estimate of the number of firms that have employment of
1,500 or fewer employees; the largest category provided is for firms with "1000 employees or more."
52 13 C.F.R. 121.201, NAICS code 517212.
53 U.S. Census Bureau, 2007 NAICS Definitions, "517210 Wireless Telecommunications Categories (Except
Satellite)"; http://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
54
U.S. Census Bureau, 2002 NAICS Definitions, "517211 Paging";
http://www.census.gov/epcd/naics02/def/NDEF517.HTM.; U.S. Census Bureau, 2002 NAICS Definitions, "517212
Cellular and Other Wireless Telecommunications"; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
55 13 C.F.R. 121.201, NAICS code 517210 (2007 NAICS). The now-superseded, pre-2007 C.F.R. citations were
13 C.F.R. 121.201, NAICS codes 517211 and 517212 (referring to the 2002 NAICS).
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available for the new category, we will estimate small business prevalence using the prior categories and
associated data. For the category of Paging, data for 2002 show that there were 807 firms that operated
for the entire year.56 Of this total, 804 firms had employment of 999 or fewer employees, and three firms
had employment of 1,000 employees or more.57 For the category of Cellular and Other Wireless
Telecommunications, data for 2002 show that there were 1,397 firms that operated for the entire year.58
Of this total, 1,378 firms had employment of 999 or fewer employees, and 19 firms had employment of
1,000 employees or more.59 Thus, we estimate that the majority of wireless firms are small.
24.
In addition, in the Paging Second Report and Order, the Commission adopted a
size standard for "small businesses" for purposes of determining their eligibility for special provisions
such as bidding credits and installment payments.60 A small business is an entity that, together with its
affiliates and controlling principals, has average gross revenues not exceeding $15 million for the
preceding three years.61 The SBA has approved this definition.62 An initial auction of Metropolitan
Economic Area ("MEA") licenses was conducted in the year 2000. Of the 2,499 licenses auctioned, 985
were sold.63 Fifty-seven companies claiming small business status won 440 licenses.64 A subsequent
auction of MEA and Economic Area ("EA") licenses was held in the year 2001. Of the 15,514 licenses
auctioned, 5,323 were sold.65 One hundred thirty-two companies claiming small business status
purchased 3,724 licenses. A third auction, consisting of 8,874 licenses in each of 175 EAs and 1,328
licenses in all but three of the 51 MEAs, was held in 2003. Seventy-seven bidders claiming small or very
small business status won 2,093 licenses. 66
25.
Currently, there are approximately 74,000 Common Carrier Paging licenses.
According to the most recent Trends in Telephone Service, 281 carriers reported that they were engaged


56 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, "Establishment and Firm Size
(Including Legal Form of Organization," Table 5, NAICS code 517211 (issued Nov. 2005).
57 Id. The census data do not provide a more precise estimate of the number of firms that have employment of
1,500 or fewer employees; the largest category provided is for firms with "1000 employees or more."
58 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, "Establishment and Firm Size
(Including Legal Form of Organization," Table 5, NAICS code 517212 (issued Nov. 2005).
59 Id. The census data do not provide a more precise estimate of the number of firms that have employment of
1,500 or fewer employees; the largest category provided is for firms with "1000 employees or more."
60 Revision of Part 22 and Part 90 of the Commission's Rules to Facilitate Future Development of Paging Systems,
Second Report and Order, 12 FCC Rcd 2732, 2811-2812, paras. 178-181 ("Paging Second Report and Order"); see
also 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, 14 FCC Rcd 10030, 10085-10088, 98-107
(1999).
61 Paging Second Report and Order, 12 FCC Rcd at 2811, 179.
62 See Letter from Aida Alvarez, Administrator, SBA, to Amy Zoslov, Chief, Auctions and Industry Analysis
Division, Wireless Telecommunications Bureau ("WTB"), FCC (Dec. 2, 1998) ("Alvarez Letter 1998").
63 See "929 and 931 MHz Paging Auction Closes," Public Notice, 15 FCC Rcd 4858 (WTB 2000).
64 See id.
65 See "Lower and Upper Paging Band Auction Closes," Public Notice, 16 FCC Rcd 21821 (WTB 2002).
66 See "Lower and Upper Paging Bands Auction Closes," Public Notice, 18 FCC Rcd 11154 (WTB 2003). The
current number of small or very small business entities that hold wireless licenses may differ significantly from the
number of such entities that won in spectrum auctions due to assignments and transfers of licenses in the secondary
market over time. In addition, some of the same small business entities may have won licenses in more than one
auction.
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in the provision of "paging and messaging" services.67 Of these, an estimated 279 have 1,500 or fewer
employees and two have more than 1,500 employees.68 We estimate that the majority of common carrier
paging providers would qualify as small entities under the SBA definition.
26.
2.3 GHz 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.69 The SBA has
approved these definitions.70 The Commission auctioned geographic area licenses in the WCS service. In
the auction, which was conducted in 1997, there were seven bidders that won 31 licenses that qualified as
very small business entities, and one bidder that won one license that qualified as a small business entity.
27.
1670-1675 MHz Services. An auction for one license in the 1670-1675 MHz
band was conducted in 2003. One license was awarded. The winning bidder was not a small entity.
28.

Wireless Telephony

. Wireless telephony includes cellular, personal
communications services, and specialized mobile radio telephony carriers. As noted, the SBA has
developed a small business size standard for Wireless Telecommunications Carriers (except Satellite).71
Under the SBA small business size standard, a business is small if it has 1,500 or fewer employees.72
According to Trends in Telephone Service data, 434 carriers reported that they were engaged in wireless
telephony.73 Of these, an estimated 222 have 1,500 or fewer employees and 212 have more than 1,500
employees.74 We have estimated that 222 of these are small under the SBA small business size standard.
29.

Broadband Personal Communications Service

. The broadband personal
communications services ("PCS") spectrum is divided into six frequency blocks designated A through F,
and the Commission has held auctions for each block. The Commission has created a small business size
standard for Blocks C and F as an entity that has average gross revenues of less than $40 million in the
three previous calendar years.75 For Block F, an additional small business size standard 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.76 These small business size
standards, in the context of broadband PCS auctions, have been approved by the SBA.77 No small
businesses within the SBA-approved small business size standards 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


67 "Trends in Telephone Service" at Table 5.3.
68 Id.
69 Amendment of the Commission's Rules to Establish Part 27, the Wireless Communications Service (WCS), Report
and Order, 12 FCC Rcd 10785, 10879, para. 194 (1997).
70 See Alvarez Letter 1998.
71 13 C.F.R. 121.201, NAICS code 517210.
72 Id.
73 "Trends in Telephone Service" at Table 5.3.
74 "Trends in Telephone Service" at Table 5.3.
75 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, 11 FCC Rcd 7824, 7850-7852, paras. 57-60
(1996) ("PCS Report and Order"); see also 47 C.F.R. 24.720(b).
76 See PCS Report and Order, 11 FCC Rcd at 7852, para. 60.
77 See Alvarez Letter 1998.
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of 93 "small" and "very small" business bidders won approximately 40 percent of the 1,479 licenses for
Blocks D, E, and F.78 In 1999, the Commission reauctioned 155 C, D, E, and F Block licenses; there
were 113 small business winning bidders.79
30.
In 2001, the Commission completed the auction of 422 C and F Broadband PCS
licenses in Auction 35. Of the 35 winning bidders in this auction, 29 qualified as "small" or "very small"
businesses.80 Subsequent events, concerning Auction 35, including judicial and agency determinations,
resulted in a total of 163 C and F Block licenses being available for grant. In 2005, the Commission
completed an auction of 188 C block licenses and 21 F block licenses in Auction 58. There were 24
winning bidders for 217 licenses.81 Of the 24 winning bidders, 16 claimed small business status and won
156 licenses. In 2007, the Commission completed an auction of 33 licenses in the A, C, and F Blocks in
Auction 71.82 Of the 14 winning bidders, six were designated entities.83 In 2008, the Commission
completed an auction of 20 Broadband PCS licenses in the C, D, E and F block licenses in Auction 78.84
31.

Advanced Wireless Services

. In 2006, the Commission conducted its first
auction of Advanced Wireless Services licenses in the 1710-1755 MHz and 2110-2155 MHz bands
("AWS-1"), designated as Auction 66.85 The Commission defined "small business" as an entity with
attributed average annual gross revenues that exceeded $15 million and did not exceed $40 million for the
preceding three years.86 A small business received a 15 percent discount on its winning bid.87 A "very
small business" is defined as an entity with attributed average annual gross revenues that did not exceed
$15 million for the preceding three years.88 A very small business received a 25 percent discount on its
winning bid.89 In Auction 66, thirty-one winning bidders identified themselves as very small businesses
and won 142 licenses.90 Twenty-six of the winning bidders identified themselves as small businesses and
won 73 licenses.91 In 2008, the Commission conducted an auction of AWS-1 licenses, designated as


78 FCC News, "Broadband PCS, D, E and F Block Auction Closes," No. 71744 (rel. Jan. 14, 1997).
79 See "C, D, E, and F Block Broadband PCS Auction Closes," Public Notice, 14 FCC Rcd 6688 (WTB 1999).
80 See "C and F Block Broadband PCS Auction Closes; Winning Bidders Announced," Public Notice, 16 FCC Rcd
2339 (2001).
81 See "Broadband PCS Spectrum Auction Closes; Winning Bidders Announced for Auction No. 58," Public Notice,
20 FCC Rcd 3703 (2005).
82 See "Auction of Broadband PCS Spectrum Licenses Closes; Winning Bidders Announced for Auction No. 71,"
Public Notice, 22 FCC Rcd 9247 (2007).
83 Id.
84 See Auction of AWS-1 and Broadband PCS Licenses Rescheduled For August 13, 3008, Notice of Filing
Requirements, Minimum Opening Bids, Upfront Payments and Other Procedures For Auction 78, Public Notice, 23
FCC Rcd 7496 (2008) ("AWS-1 and Broadband PCS Procedures Public Notice").
85 See Auction of Advanced Wireless Services Licenses Scheduled for June 29, 2006; Notice and Filing
Requirements, Minimum Opening Bids, Upfront Payments and Other Procedures for Auction No. 66, AU Docket
No. 06-30, Public Notice, 21 FCC Rcd 4562 (2006) ("Auction 66 Procedures Public Notice");
86 47 C.F.R 27.1102(a)(1).
87 See 47 C.F.R. 1.2110(f)(2).
88 47 C.F.R 27.1102(a)(2)
89 See 47 C.F.R. 1.2110(f)(2).
90 See Auction of Advanced Wireless Services Licenses Closes; Winning Bidders Announced for Auction No. 66,
Public Notice, 21 FCC Rcd 10,521 (2006) ("Auction 66 Closing Public Notice")
91 See id.
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Auction 78, which offered 35 licenses for which there were no winning bids in Auction 66.92 Four
winning bidders that identified themselves as very small businesses won 17 AWS-1 licenses.93 Three of
the winning bidders that identified themselves as a small business won five AWS-1 licenses.
32.

Narrowband Personal Communications Services

. In 1994, the Commission
conducted an auction for Narrowband PCS licenses. A second auction was also conducted later in 1994.
For purposes of the first two Narrowband PCS auctions, "small businesses" were entities with average
gross revenues for the prior three calendar years of $40 million or less.94 Through these auctions, the
Commission awarded a total of 41 licenses, 11 of which were obtained by four small businesses.95 To
ensure meaningful participation by small business entities in future auctions, the Commission adopted a
two-tiered small business size standard in the Narrowband PCS Second Report and Order.96 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.97 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.98 The SBA has approved these small business size standards.99 A third
auction was conducted in 2001. Here, five bidders won 317 (Metropolitan Trading Areas and
nationwide) licenses.100 Three of these claimed status as a small or very small entity and won 311
licenses.
33.
700 MHz Band Licenses. The Commission previously adopted criteria for
defining three groups of small businesses for purposes of determining their eligibility for special
provisions such as bidding credits.101 The Commission defined a "small business" as an entity that,
together with its affiliates and controlling principals, has average gross revenues not exceeding $40
million for the preceding three years.102 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 $15 million for


92 See AWS-1 and Broadband PCS Procedures Public Notice, 23 FCC Rcd 7496. Auction 78 also included an
auction of Broadband PCS licenses.
93 See "Auction of AWS-1 and Broadband PCS Licenses Closes, Winning Bidders Announced for Auction 78,
Down Payments Due September 9, 2008, FCC Forms 601 and 602 Due September 9, 2008, Final Payments Due
September 23, 2008, Ten-Day Petition to Deny Period", Public Notice, 23 FCC Rcd 12749-65 (2008).
94 Implementation of Section 309(j) of the Communications Act Competitive Bidding Narrowband PCS, Third
Memorandum Opinion and Order and Further Notice of Proposed Rulemaking, 10 FCC Rcd 175, 196, para. 46
(1994).
95 See "Announcing the High Bidders in the Auction of ten Nationwide Narrowband PCS Licenses, Winning Bids
Total $617,006,674," Public Notice, PNWL 94-004 (rel. Aug. 2, 1994); "Announcing the High Bidders in the
Auction of 30 Regional Narrowband PCS Licenses; Winning Bids Total $490,901,787," Public Notice, PNWL 94-
27 (rel. Nov. 9, 1994).
96 Amendment of the Commission's Rules to Establish New Personal Communications Services, Narrowband PCS,
Second Report and Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd 10456, 10476, para. 40
(2000) ("Narrowband PCS Second Report and Order").
97 Narrowband PCS Second Report and Order, 15 FCC Rcd at 10476, para. 40.
98 Id.
99 See Alvarez Letter 1998.
100 See "Narrowband PCS Auction Closes," Public Notice, 16 FCC Rcd 18663 (WTB 2001).
101 See Reallocation and Service Rules for the 698-746 MHz Spectrum Band (Television Channels 52-59), Report
and Order, 17 FCC Rcd 1022 (2002) ("Channels 52-59 Report and Order").
102 See Channels 52-59 Report and Order, 17 FCC Rcd at 1087-88, 172.
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the preceding three years.103 Additionally, the lower 700 MHz Service had a third category of small
business status for Metropolitan/Rural Service Area ("MSA/RSA") licenses. The third category is
"entrepreneur," which 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.104 The SBA
approved these small size standards.105 The Commission conducted an auction in 2002 of 740 licenses
(one license in each of the 734 MSAs/RSAs and one license in each of the six Economic Area Groupings
(EAGs)). Of the 740 licenses available for auction, 484 licenses were sold to 102 winning bidders.
Seventy-two of the winning bidders claimed small business, very small business or entrepreneur status
and won a total of 329 licenses. 106 The Commission conducted a second auction in 2003 that included
256 licenses: 5 EAG licenses and 476 Cellular Market Area licenses.107 Seventeen winning bidders
claimed small or very small business status and won 60 licenses, and nine winning bidders claimed
entrepreneur status and won 154 licenses.108 In 2005, the Commission completed an auction of 5 licenses
in the lower 700 MHz band (Auction 60). There were three winning bidders for five licenses. All three
winning bidders claimed small business status.
34.
In 2007, the Commission adopted the 700 MHz Second Report and Order.109 The
Order revised the band plan for the commercial (including Guard Band) and public safety spectrum,
adopted services rules, including stringent build-out requirements, an open platform requirement on the C
Block, and a requirement on the D Block licensee to construct and operate a nationwide, interoperable
wireless broadband network for public safety users. In 2008, the Commission conducted Auction 73
which offered all available, commercial 700 MHz Band licenses (1,099 licenses) for bidding using the
Commission's standard simultaneous multiple-round ("SMR") auction format for the A, B, D, and E
block licenses and an SMR auction design with hierarchical package bidding ("HPB") for the C Block
licenses. A bidder with attributed average annual gross revenues that did not exceed $15 million for the
preceding three years (very small business) qualified for a 25 percent discount on its winning bids. A
bidder with attributed average annual gross revenues that exceeded $15 million, but did not exceed $40
million for the preceding three years, qualified for a 15 percent discount on its winning bids. At the
conclusion of Auction 73, there were 36 winning bidders (who won 330 of the 1,090 licenses won) that
identified themselves as very small businesses.110 There were 20 winning bidders that identified


103 See id.
104 See id, 17 FCC Rcd at 1088, 173.
105 See Letter from Aida Alvarez, Administrator, SBA, to Thomas Sugrue, Chief, WTB, FCC (Aug. 10, 1999)
("Alvarez Letter 1999").
106 See "Lower 700 MHz Band Auction Closes," Public Notice, 17 FCC Rcd 17272 (WTB 2002).
107 See "Lower 700 MHz Band Auction Closes," Public Notice, 18 FCC Rcd 11873 (WTB 2003).
108 See id.
109 Service Rules for the 698-746, 747-762 and 777-792 MHz Band, WT Docket No. 06-150, Revision of the
Commission's Rules to Ensure Compatibility with Enhanced 911 Emergency Calling Systems,
CC Docket No. 94-
102, Section 68.4(a) of the Commission's Rules Governing Hearing Aid-Compatible Telephone, WT Docket No. 01-
309, Biennial Regulatory Review Amendment of Parts 1, 22, 24, 27, and 90 to Streamline and Harmonize Various
Rules Affecting Wireless Radio Services,
WT Docket No. 03-264, Former Nextel Communications, Inc. Upper700
MHz Guard Band Licenses and Revisions to Part 27 of the Commission's Rules,
WT Docket No. 06-169,
Implementing a Nationwide, Broadband Interoperable Public Safety Network in the 700 MHz Band, PS Docket No.
06-229, Development of Operational, Technical and Spectrum Requirements for Meeting Federal, State, and Local
Public Safety Communications Requirements Through the Year 2010,
WT Docket No. 96-86, Second Report and
Order, FCC 07-132 (2007) ("700 MHz Second Report and Order"), 22 FCC Rcd 15289 (2007).
110 See Auction of 700 MHz Band Licenses Closes, Winning Bidders Announced for Auction 73, Down Payments
Due April 3, 2008, FCC Forms 601 and 602 April 3, 2008, Final Payment Due April 17, 2008, Ten-Day Petition to
Deny Period, Public Notice, 23 FCC Rcd 4572 (2008).
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themselves as a small business that won 49 of the 1,090 licenses won.111 The provisionally winning bids
for the A, B, C, and E Block licenses exceeded the aggregate reserve prices for those blocks. However,
the provisionally winning bid for the D Block license did not meet the applicable reserve price and thus
did not become a winning bid.112
35.
700 MHz Guard Band Licenses. In the 700 MHz Guard Band Order, the
Commission adopted size standards for "small businesses" and "very small businesses" for purposes of
determining their eligibility for special provisions such as bidding credits and installment payments.113 A
small business in this service is an entity that, together with its affiliates and controlling principals, has
average gross revenues not exceeding $40 million for the preceding three years.114 Additionally, a very
small business is an entity that, together with its affiliates and controlling principals, has average gross
revenues that are not more than $15 million for the preceding three years.115 SBA approval of these
definitions is not required.116 In 2000, the Commission conducted an auction of 52 Major Economic Area
("MEA") licenses.117 Of the 104 licenses auctioned, 96 licenses were sold to nine bidders. Five of these
bidders were small businesses that won a total of 26 licenses. A second auction of eight 700 MHz Guard
Band licenses commenced and closed in 2001. Of the three winning bidders, one was a small business
that won two of the eight licenses.118
36.

Specialized Mobile Radio

. The Commission awards small business bidding
credits in auctions for Specialized Mobile Radio (SMR) geographic area licenses in the 800 MHz and 900
MHz bands to entities that had revenues of no more than $15 million in each of the three previous
calendar years. 119 The Commission awards very small business bidding credits to entities that had
revenues of no more than $3 million in each of the three previous calendar years.120 The SBA has
approved these small business size standards for the 800 MHz and 900 MHz SMR Service.121 The
Commission has held auctions for geographic area licenses in the 800 MHz and 900 MHz bands. The
900 MHz SMR auction was completed in 1996. Sixty bidders claiming that they qualified as small
businesses under the $15 million size standard won 263 geographic area licenses in the 900 MHz SMR
band. The 800 MHz SMR auction for the upper 200 channels was conducted in 1997. Ten bidders
claiming that they qualified as small businesses under the $15 million size standard won 38 geographic


111 Id. 23 FCC Rcd at 4572-73.
112 Id.
113 See Service Rules for the 746-764 MHz Bands, and Revisions to Part 27 of the Commission's Rules, Second
Report and Order, 15 FCC Rcd 5299 (2000) ("746-764 MHz Band Second Report and Order").
114 See 746-764 MHz Band Second Report and Order, 15 FCC Rcd at 5343, para. 108.
115 See id.
116 See id., 15 FCC Rcd 5299, 5343, para. 108 n.246 (for the 746-764 MHz and 776-794 MHz bands, the
Commission is exempt from 15 U.S.C. 632, which requires Federal agencies to obtain SBA approval before
adopting small business size standards).
117 See "700 MHz Guard Bands Auction Closes: Winning Bidders Announced," Public Notice, 15 FCC Rcd 18026
(2000).
118 See "700 MHz Guard Bands Auction Closes: Winning Bidders Announced," Public Notice, 16 FCC Rcd 4590
(WTB 2001).
119 47 C.F.R. 90.810, 90.814(b), 90.912.
120 47 C.F.R. 90.810, 90.814(b), 90.912.
121 See Alvarez Letter 1999.
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area licenses for the upper 200 channels in the 800 MHz SMR band.122 A second auction for the 800
MHz band was conducted in 2002 and included 23 BEA licenses. One bidder claiming small business
status won five licenses.123
37.
The auction of the 1,053 800 MHz SMR geographic area licenses for the General
Category channels was conducted in 2000. Eleven bidders won 108 geographic area licenses for the
General Category channels in the 800 MHz SMR band qualified as small businesses under the $15
million size standard.124 In an auction completed in 2000, a total of 2,800 Economic Area licenses in the
lower 80 channels of the 800 MHz SMR service were awarded.125 Of the 22 winning bidders, 19 claimed
small business status and won 129 licenses. Thus, combining all three auctions, 40 winning bidders for
geographic licenses in the 800 MHz SMR band claimed status as small business.
38.
In addition, there are numerous incumbent site-by-site SMR licensees and
licensees with extended implementation authorizations in the 800 and 900 MHz bands. We do not know
how many firms provide 800 MHz or 900 MHz geographic area SMR 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. In addition, we do not know how many of these
firms have 1500 or fewer employees.126 We assume, for purposes of this analysis, that all of the
remaining existing extended implementation authorizations are held by small entities, as that small
business size standard is approved by the SBA.
39.
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 small business size standard under the SBA rules
applicable to Wireless Telecommunications Carriers (except Satellite).127 This category provides that a
small business is a wireless company employing no more than 1,500 persons.128 The Commission
estimates that most such licensees are small businesses under the SBA's small business standard.
40.
220 MHz Radio Service Phase II Licensees. The 220 MHz service has both
Phase I and Phase II licenses. The Phase II 220 MHz service licenses are assigned by auction, where
mutually exclusive applications are accepted. In the 220 MHz Third Report and Order, the Commission
adopted a small business size standard for defining "small" and "very small" businesses for purposes of
determining their eligibility for special provisions such as bidding credits and installment payments.129
This small business standard indicates that a "small business" is an entity that, together with its affiliates


122 See "Correction to Public Notice DA 96-586 `FCC Announces Winning Bidders in the Auction of 1020 Licenses
to Provide 900 MHz SMR in Major Trading Areas,'" Public Notice, 18 FCC Rcd 18367 (WTB 1996).
123 See "Multi-Radio Service Auction Closes," Public Notice, 17 FCC Rcd 1446 (WTB 2002).
124 See "800 MHz Specialized Mobile Radio (SMR) Service General Category (851-854 MHz) and Upper Band
(861-865 MHz) Auction Closes; Winning Bidders Announced," Public Notice, 15 FCC Rcd 17162 (2000).
125 See, "800 MHz SMR Service Lower 80 Channels Auction Closes; Winning Bidders Announced," Public Notice,
16 FCC Rcd 1736 (2000).
126 See generally 13 C.F.R. 121.201, NAICS code 517210.
127 Id.
128 Id..
129 Amendment of Part 90 of the Commission's Rules to Provide For the Use of the 220-222 MHz Band by the
Private Land Mobile Radio Service
, Third Report and Order, 12 FCC Rcd 10943, 11068-70, paras. 291-295 (1997).
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and controlling principals, has average gross revenues not exceeding $15 million for the preceding three
years.130 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.131 The
SBA has approved these small size standards.132 A small business is eligible for a 25 percent discount on
its winning bid. A very small business is eligible for a 35 percent discount on its winning bid. The first
auction of Phase II licenses was conducted in 1998.133 In the first auction, 908 licenses were offered 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.134 Thirty-nine small businesses won 373 licenses in the first 220 MHz auction. A second auction in
1999 included 225 licenses: 216 EA licenses and 9 EAG licenses. Fourteen companies claiming small
business status won 158 licenses.135 A third auction included four licenses: 2 BEA licenses and 2 EAG
licenses in the 220 MHz Service. No small or very small business won any of these licenses.136 In 2007,
the Commission conducted a fourth auction of the 220 MHz licenses, designated as Auction 72.137
Auction 72 offered 94 Phase II 220 MHz Service licenses.138 In this auction, five winning bidders won a
total of 76 licenses.139 Two winning bidders identified themselves as very small businesses won 56 of the
76 licenses. One of the winning bidders that identified itself as a small business won 5 of the 76 licenses
won.
41.

Cellular Radiotelephone Service

. Auction 77 was held to resolve one group of
mutually exclusive applications for Cellular Radiotelephone Service licenses for unserved areas in New
Mexico.140 Bidding credits for designated entities were not available in Auction 77.141 In 2008, the
Commission completed the closed auction of one unserved service area in the Cellular Radiotelephone
Service, designated as Auction 77. Auction 77 concluded with one provisionally winning bid for the
unserved area totaling $25,002.142


130 Id. at 11068, para. 291.
131 Id.
132 See Letter from Aida Alvarez, Administrator, SBA, to Daniel Phythyon, Chief, WTB, FCC (Jan. 6, 1998)
("Alvarez to Phythyon Letter 1998").
133 See generally "220 MHz Service Auction Closes," Public Notice, 14 FCC Rcd 605 (1998).
134 See "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).
135 See "Phase II 220 MHz Service Spectrum Auction Closes," Public Notice, 14 FCC Rcd 11218 (1999).
136 See "Multi-Radio Service Auction Closes," Public Notice, 17 FCC Rcd 1446 (2002).
137 See "Auction of Phase II 220 MHz Service Spectrum Scheduled for June 20, 2007, Notice and Filing
Requirements, Minimum Opening Bids, Upfront Payments and Other Procedures for Auction 72, Public Notice, 22
FCC Rcd 3404 (2007).
138 Id.
139 See "Auction of Phase II 220 MHz Service Spectrum Licenses Closes, Winning Bidders Announced for Auction
72, Down Payments due July 18, 2007, FCC Forms 601 and 602 due July 18, 2007, Final Payments due August 1,
2007, Ten-Day Petition to Deny Period, Public Notice, 22 FCC Rcd 11573 (2007).
140 See Closed Auction of Licenses for Cellular Unserved Service Area Scheduled for June 17, 2008, Notice and
Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 77, Public
Notice
, 23 FCC Rcd 6670 (2008).
141 Id. at 6685.
142 See Auction of Cellular Unserved Service Area License Closes, Winning Bidder Announced for Auction 77,
Down Payment due July 2, 2008, Final Payment due July 17, 2008, Public Notice, 23 FCC Rcd 9501 (2008).
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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, and are often used in support of the
licensee's primary (non-telecommunications) business operations. For the purpose of determining
whether a licensee of a PLMR system is a small business as defined by the SBA, we use the broad census
category, Wireless Telecommunications Carriers (except Satellite). This definition provides that a small
entity is any such entity employing no more than 1,500 persons.143 The Commission does not require
PLMR licensees to disclose information about number of employees, so the Commission does not have
information that could be used to determine how many PLMR licensees constitute small entities under
this definition. We note that PLMR licensees generally use the licensed facilities in support of other
business activities, and therefore, it would also be helpful to assess PLMR licensees under the standards
applied to the particular industry subsector to which the licensee belongs.144
43.
As of March 2010, there were 424,162 PLMR licensees operating 921,909
transmitters in the PLMR bands below 512 MHz. We note that any entity engaged in a commercial
activity is eligible to hold a PLMR license, and that any revised rules in this context could therefore
potentially impact small entities covering a great variety of industries.
44.

Fixed Microwave Services

. Fixed microwave services include common
carrier,145 private operational-fixed,146 and broadcast auxiliary radio services.147 At present, there are
approximately 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 created a size
standard for a small business specifically with respect to fixed microwave services. For purposes of this
analysis, the Commission uses the SBA small business size standard for the category Wireless
Telecommunications Carriers (except Satellite), which is 1,500 or fewer employees.148 The Commission
does not have data specifying the number of these licensees that have no more than 1,500 employees, and
thus are unable at this time to estimate with greater precision the number of fixed microwave service
licensees that would qualify as small business concerns under the SBA's small business size standard.
Consequently, the Commission estimates that there are 22,015 or fewer common carrier fixed licensees
and 61,670 or fewer private operational-fixed licensees and broadcast auxiliary radio licensees in the
microwave services that may be small and may be affected by the rules and policies proposed herein. We
note, however, that the common carrier microwave fixed licensee category includes some large entities.
45.
39 GHz Service. The Commission created a special small business size standard
for 39 GHz licenses an entity that has average gross revenues of $40 million or less in the three previous


143 See 13 C.F.R. 121.201, NAICS code 517210.
144 See generally 13 C.F.R. 121.201.
145 See 47 C.F.R. 101 et seq. for common carrier fixed microwave services (except Multipoint Distribution
Service).
146 Persons eligible under parts 80 and 90 of the Commission's Rules can use Private Operational-Fixed Microwave
services. See 47 C.F.R. 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.
147 Auxiliary Microwave Service is governed by Part 74 of Title 47 of the Commission's Rules. See 47 C.F.R. Part
74. This service is 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
television pickups, which relay signals from a remote location back to the studio.
148 13 C.F.R. 121.201, NAICS code 517210.
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calendar years.149 An additional size standard for "very small business" is: an entity that, together with
affiliates, has average gross revenues of not more than $15 million for the preceding three calendar
years.150 The SBA has approved these small business size standards.151 The auction of the 2,173, 39 GHz
licenses was conducted in 2000. The 18 bidders who claimed small business status won 849 licenses.
46.

Local Multipoint Distribution Service

. Local Multipoint Distribution Service
("LMDS") is a fixed broadband point-to-multipoint microwave service that provides for two-way video
telecommunications.152 The auction of the 986 LMDS licenses began and closed in 1998. The
Commission established a small business size standard for LMDS licenses as an entity that has average
gross revenues of less than $40 million in the three previous calendar years.153 An additional small
business size standard for "very small business" was added as an entity that, together with its affiliates,
has average gross revenues of not more than $15 million for the preceding three calendar years.154 The
SBA has approved these small business size standards in the context of LMDS auctions.155 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. In 1999, the
Commission re-auctioned 161 licenses; there were 32 small and very small businesses that won 119
licenses.
47.
218-219 MHz Service. The first auction of 218-219 MHz (previously referred to
as the Interactive and Video Data Service or IVDS) spectrum resulted in 178 entities winning licenses for
594 Metropolitan Statistical Areas ("MSAs").156 Of the 594 licenses, 567 were won by 167 entities
qualifying as a small business. For that auction, the Commission 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.157 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 exceeding $15 million for the
preceding three years.158 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


149 See Amendment of the Commission's Rules Regarding the 37.0-38.6 GHz and 38.6-40.0 GHz Bands, ET Docket
No. 95-183, Report and Order, 12 FCC Rcd 18600 (1997).
150 Id.
151 See Letter from Aida Alvarez, Administrator, SBA, to Kathleen O'Brien Ham, Chief, Auctions and Industry
Analysis Division, WTB, FCC (Feb. 4, 1998); see Letter from Hector Barreto, Administrator, SBA, to Margaret
Wiener, Chief, Auctions and Industry Analysis Division, WTB, FCC (Jan. 18, 2002).
152 See Rulemaking to Amend Parts 1, 2, 21, 25, of the Commission's Rules to Redesignate the 27.5-29.5 GHz
Frequency Band, Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and Policies for Local Multipoint
Distribution Service and for Fixed Satellite Services
, Second Report and Order, Order on Reconsideration, and Fifth
Notice of Proposed Rule Making, 12 FCC Rcd 12545, 12689-90, 348 (1997) ("LMDS Second Report and Order").
153 See LMDS Second Report and Order, 12 FCC Rcd at 12689-90, 348.
154 See id.
155 See Alvarez to Phythyon Letter 1998.
156 See "Interactive Video and Data Service (IVDS) Applications Accepted for Filing," Public Notice, 9 FCC Rcd
6227 (1994).
157 Implementation of Section 309(j) of the Communications Act Competitive Bidding, Fourth Report and Order, 9
FCC Rcd 2330 (1994).
158 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, 15 FCC Rcd 1497 (1999).
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not exceeding $3 million for the preceding three years.159 The SBA has approved of these definitions.160
48.

Location and Monitoring Service ("LMS")

. Multilateration LMS systems use
non-voice radio techniques to determine the location and status of mobile radio units. For purposes of
auctioning LMS licenses, the Commission has defined "small business" as an entity that, together with
controlling interests and affiliates, has average annual gross revenues for the preceding three years not
exceeding $15 million.161 A "very small business" is defined as an entity that, together with controlling
interests and affiliates, has average annual gross revenues for the preceding three years not exceeding $3
million.162 These definitions have been approved by the SBA.163 An auction for LMS licenses was
conducted in 1999. Of the 528 licenses auctioned, 289 licenses were sold to four small businesses.
49.

Rural Radiotelephone Service

. The Commission has not adopted a size standard
for small businesses specific to the Rural Radiotelephone Service.164 A significant subset of the Rural
Radiotelephone Service is the Basic Exchange Telephone Radio System ("BETRS").165 In the present
context, we will use the SBA's small business size standard applicable to Wireless Telecommunications
Carriers (except Satellite), i.e., an entity employing no more than 1,500 persons.166 There are
approximately 1,000 licensees in the Rural Radiotelephone Service, and the Commission estimates that
there are 1,000 or fewer small entity licensees in the Rural Radiotelephone Service that may be affected
by our action.
50.

Air-Ground Radiotelephone Service

.167 The Commission has previously used
the SBA's small business definition applicable to Wireless Telecommunications Carriers (except
Satellite), i.e., an entity employing no more than 1,500 persons.168 There are approximately 100 licensees
in the Air-Ground Radiotelephone Service, and under that definition, we estimate that almost all of them
qualify as small entities under the SBA definition. For purposes of assigning Air-Ground Radiotelephone
Service licenses through competitive bidding, the Commission has defined "small business" as an entity
that, together with controlling interests and affiliates, has average annual gross revenues for the preceding
three years not exceeding $40 million.169 A "very small business" is defined as an entity that, together
with controlling interests and affiliates, has average annual gross revenues for the preceding three years


159 Id.
160 See Alvarez to Phythyon Letter 1998.
161 Amendment of Part 90 of the Commission's Rules to Adopt Regulations for Automatic Vehicle Monitoring
Systems
, Second Report and Order, 13 FCC Rcd 15182, 15192, 20 (1998) ("Automatic Vehicle Monitoring
Systems Second Report and Order
"); see also 47 C.F.R. 90.1103.
162 Automatic Vehicle Monitoring Systems Second Report and Order, 13 FCC Rcd at 15192, para. 20; see also 47
C.F.R. 90.1103.
163 See Alvarez Letter 1998.
164 The service is defined in 22.99 of the Commission's Rules, 47 C.F.R. 22.99.
165 BETRS is defined in 22.757 and 22.759 of the Commission's Rules, 47 C.F.R. 22.757 and 22.759.
166 13 C.F.R. 121.201, NAICS code 517210.
167 The service is defined in 22.99 of the Commission's Rules, 47 C.F.R. 22.99.
168 13 C.F.R. 121.201, NAICS codes 517210.
169 Amendment of Part 22 of the Commission's Rules to Benefit the Consumers of Air-Ground Telecommunications
Services, Biennial Regulatory Review Amendment of Parts 1, 22, and 90 of the Commission's Rules, Amendment
of Parts 1 and 22 of the Commission's Rules to Adopt Competitive Bidding Rules for Commercial and General
Aviation Air-Ground Radiotelephone Service
, WT Docket Nos. 03-103 and 05-42, Order on Reconsideration and
Report and Order, 20 FCC Rcd 19663, 28-42 (2005).
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not exceeding $15 million.170 These definitions were approved by the SBA.171 In 2006, the Commission
completed an auction of nationwide commercial Air-Ground Radiotelephone Service licenses in the 800
MHz band (Auction 65). The auction closed with two winning bidders winning two Air-Ground
Radiotelephone Services licenses. Neither of the winning bidders claimed small business status.
51.

Aviation and Marine Radio Services

. There are approximately 26,162 aviation,
34,555 marine (ship), and 3,296 marine (coast) licensees.172 The Commission has not developed a small
business size standard specifically applicable to all licensees. For purposes of this analysis, we will use
the SBA small business size standard for the category Wireless Telecommunications Carriers (except
Satellite), which is 1,500 or fewer employees.173 We are unable to determine how many of those licensed
fall under this standard. For purposes of our evaluations in this analysis, we estimate that there are up to
approximately 62,969 licensees that are small businesses under the SBA standard.174 In 1998, the
Commission held an auction of 42 VHF Public Coast licenses in the 157.1875-157.4500 MHz (ship
transmit) and 161.775-162.0125 MHz (coast transmit) bands. For this auction, the Commission defined a
"small" business as an entity that, together with controlling interests and affiliates, has average gross
revenues for the preceding three years not to exceed $15 million dollars. In addition, a "very small"
business is one that, together with controlling interests and affiliates, has average gross revenues for the
preceding three years not to exceed $3 million dollars.175 Further, the Commission made available
Automated Maritime Telecommunications System ("AMTS") licenses in Auctions 57 and 61.176 Winning
bidders could claim status as a very small business or a very small business. A very small business for
this service is defined as an entity with attributed average annual gross revenues that do not exceed $3
million for the preceding three years, and a small business is defined as an entity with attributed average
annual gross revenues of more than $3 million but less than $15 million for the preceding three years.177
Three of the winning bidders in Auction 57 qualified as small or very small businesses, while three
winning entities in Auction 61 qualified as very small businesses.
52.

Offshore Radiotelephone Service

. This service operates on several ultra high
frequencies ("UHF") television broadcast channels that are not used for television broadcasting in the
coastal areas of states bordering the Gulf of Mexico.178 There is presently 1 licensee in this service. We
do not have information whether that licensee would qualify as small under the SBA's small business size


170 Id.
171 See Letter from Hector V. Barreto, Administrator, SBA, to Gary D. Michaels, Deputy Chief, Auctions and
Spectrum Access Division, WTB, FCC (Sept. 19, 2005).
172 Vessels that are not required by law to carry a radio and do not make international voyages or communications
are not required to obtain an individual license. See Amendment of Parts 80 and 87 of the Commission's Rules to
Permit Operation of Certain Domestic Ship and Aircraft Radio Stations Without Individual Licenses, Report and
Order
, WT Docket No. 96-82, 11 FCC Rcd 14849 (1996).
173 13 C.F.R. 121.201, NAICS code 517210.
174 A licensee may have a license in more than one category.
175 Amendment of the Commission's Rules Concerning Maritime Communications, PR Docket No. 92-257, Third
Report and Order and Memorandum Opinion and Order, 13 FCC Rcd 19853 (1998).
176 See "Automated Maritime Telecommunications System Spectrum Auction Scheduled for September 15, 2004,
Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments and Other Auction Procedures
," Public
Notice, 19 FCC Rcd 9518 (WTB 2004); "Auction of Automated Maritime Telecommunications System Licenses
Scheduled for August 3, 2005, Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments and
Other Auction Procedures for Auction No. 61
," Public Notice, 20 FCC Rcd 7811 (WTB 2005).
177 47 C.F.R. 80.1252.
178 This service is governed by Subpart I of Part 22 of the Commission's Rules. See 47 C.F.R. 22.1001-22.1037.
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standard for Wireless Telecommunications Carriers (except Satellite) services.179 Under that SBA small
business size standard, a business is small if it has 1,500 or fewer employees.180
53.

Multiple Address Systems ("MAS")

. Entities using MAS spectrum, in general,
fall into two categories: (1) those using the spectrum for profit-based uses, and (2) those using the
spectrum for private internal uses. The Commission defines a small business for MAS licenses as an
entity that has average gross revenues of less than $15 million in the three previous calendar years.181 A
very small business is defined as an entity that, together with its affiliates, has average gross revenues of
not more than $3 million for the preceding three calendar years.182 The SBA has approved these
definitions.183 The majority of these entities will most likely be licensed in bands where the Commission
has implemented a geographic area licensing approach that would require the use of competitive bidding
procedures to resolve mutually exclusive applications. The Commission's licensing database indicates
that, as of March 5, 2010, there were over 11,500 MAS station authorizations. In addition, an auction for
5,104 MAS licenses in 176 EAs was conducted in 2001.184 Seven winning bidders claimed status as
small or very small businesses and won 611 licenses. In 2005, the Commission completed an auction
(Auction 59) of 4,226 MAS licenses in the Fixed Microwave Services from the 928/959 and 932/941
MHz bands. Twenty-six winning bidders won a total of 2,323 licenses. Of the 26 winning bidders in this
auction, five claimed small business status and won 1,891 licenses.
54.
With respect to entities that use, or seek to use, MAS spectrum to accommodate
internal communications needs, we note that MAS serves an essential role in a range of industrial, safety,
business, and land transportation activities. MAS radios are used by companies of all sizes, operating in
virtually all U.S. business categories, and by all types of public safety entities. For the majority of private
internal users, the small business size standard developed by the SBA would be more appropriate. The
applicable size standard in this instance appears to be that of Wireless Telecommunications Carriers
(except Satellite). This definition provides that a small entity is any such entity employing no more than
1,500 persons.185 The Commission's licensing database indicates that, as of January 20, 1999, of the
8,670 total MAS station authorizations, 8,410 authorizations were for private radio service, and of these,
1,433 were for private land mobile radio service.
55.
1.4 GHz Band Licensees. The Commission conducted an auction of 64 1.4 GHz
band licenses 186 in 2007.187 In that auction, the Commission defined "small business" as an entity that,
together with its affiliates and controlling interests, had average gross revenues that exceed $15 million
but do not exceed $40 million for the preceding three years, and a "very small business" as an entity that,
together with its affiliates and controlling interests, has had average annual gross revenues not exceeding


179 13 C.F.R. 121.201, NAICS code 517210.
180 Id.
181 See Amendment of the Commission's Rules Regarding Multiple Address Systems, Report and Order, 15 FCC Rcd
11956, 12008, 123 (2000).
182 Id.
183See Alvarez Letter 1999.
184 See "Multiple Address Systems Spectrum Auction Closes," Public Notice, 16 FCC Rcd 21011 (2001).
185 See 13 C.F.R. 121.201, NAICS code 517210.
186 See "Auction of 1.4 GHz Bands Licenses Scheduled for February 7, 2007," Public Notice, 21 FCC Rcd 12393
(WTB 2006).
187 See "Auction of 1.4 GHz Band Licenses Closes; Winning Bidders Announced for Auction No. 69," Public Notice,
22 FCC Rcd 4714 (2007) ("Auction No. 69 Closing PN").
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$15 million for the preceding three years.188 Neither of the two winning bidders sought designated entity
status.189
56.

Incumbent 24 GHz Licensees

. This analysis may affect incumbent licensees
who were relocated to the 24 GHz band from the 18 GHz band, and applicants who wish to provide
services in the 24 GHz band. The applicable SBA small business size standard is that of Wireless
Telecommunications Carriers (except Satellite). This category provides that such a company is small if it
employs no more than 1,500 persons.190 The broader census data notwithstanding, we believe that there
are only two licensees in the 24 GHz band that were relocated from the 18 GHz band, Teligent191 and
TRW, Inc. It is our understanding that Teligent and its related companies have fewer than 1,500
employees, though this may change in the future. TRW is not a small entity. There are approximately
122 licensees in the Rural Radiotelephone Service, and the Commission estimates that there are 122 or
fewer small entity licensees in the Rural Radiotelephone Service that may be affected by our action.
57.

Future 24 GHz Licensees

. With respect to new applicants in the 24 GHz band,
we have defined "small business" as an entity that, together with controlling interests and affiliates, has
average annual gross revenues for the three preceding years not exceeding $15 million.192 "Very small
business" in the 24 GHz band is defined as an entity that, together with controlling interests and affiliates,
has average gross revenues not exceeding $3 million for the preceding three years.193 The SBA has
approved these definitions.194 In a 2004 auction of 24 GHz licenses, three winning bidders won seven
licenses. Two of the winning bidders were very small businesses that won five licenses.
58.

Broadband Radio Service and Educational Broadband Service

. Broadband
Radio Service systems, previously referred to as Multipoint Distribution Service ("MDS") and
Multichannel Multipoint Distribution Service ("MMDS") systems, and "wireless cable," transmit video
programming to subscribers and provide two-way high speed data operations using the microwave
frequencies of the Broadband Radio Service ("BRS") and Educational Broadband Service ("EBS")
(previously referred to as the Instructional Television Fixed Service ("ITFS")).195 In connection with the
1996 BRS auction, the Commission established a small business size standard as an entity that had annual
average gross revenues of no more than $40 million in the previous three calendar years.196 The BRS
auctions resulted in 67 successful bidders obtaining licensing opportunities for 493 Basic Trading Areas
("BTAs"). Of the 67 auction winners, 61 met the definition of a small business. BRS also includes


188 Auction No. 69 Closing PN, Attachment C.
189 See Auction No. 69 Closing PN.
190 13 C.F.R. 121.201, NAICS code 517210.
191 Teligent acquired the DEMS licenses of FirstMark, the only licensee other than TRW in the 24 GHz band whose
license has been modified to require relocation to the 24 GHz band.
192 Amendments to Parts 1, 2, 87 and 101 of the Commission's Rules To License Fixed Services at 24 GHz, Report
and Order, 15 FCC Rcd 16934, 16967, 77 (2000) ("24 GHz Report and Order"); see also 47 C.F.R.
101.538(a)(2).
193 24 GHz Report and Order, 15 FCC Rcd at 16967, para. 77; see also 47 C.F.R. 101.538(a)(1).
194 See Letter from Gary M. Jackson, Assistant Administrator, SBA, to Margaret W. Wiener, Deputy Chief,
Auctions and Industry Analysis Division, WTB, FCC (July 28, 2000).
195 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
, MM Docket No. 94-131 and PP Docket No. 93-253, Report and Order,
10 FCC Rcd 9589, 9593, 7 (1995) ("MDS Auction R&O").
196 47 C.F.R. 21.961(b)(1).
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licensees of stations authorized prior to the auction. At this time, we estimate that of the 61 small
business BRS auction winners, 48 remain small business licensees. In addition to the 48 small businesses
that hold BTA authorizations, there are approximately 392 incumbent BRS licensees that are considered
small entities.197 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 BRS licensees that are
defined as small businesses under either the SBA or the Commission's rules. The Commission has
adopted three levels of bidding credits for BRS: (i) a bidder with attributed average annual gross revenues
that exceed $15 million and do not exceed $40 million for the preceding three years (small business) will
receive a 15 percent discount on its winning bid; (ii) a bidder with attributed average annual gross
revenues that exceed $3 million and do not exceed $15 million for the preceding three years (very small
business) will receive a 25 percent discount on its winning bid; and (iii) a bidder with attributed average
annual gross revenues that do not exceed $3 million for the preceding three years (entrepreneur) will
receive a 35 percent discount on its winning bid.198 In 2009, the Commission conducted Auction 86,
which offered 78 BRS licenses.199 Auction 86 concluded with the sale of 61 licenses.200 Of the ten
winning bidders, three bidders that claimed small business status won 7 licenses, and two bidders that
claimed entrepreneur status won six licenses.
59.
In addition, the SBA's Cable Television Distribution Services small business size
standard is applicable to EBS. There are presently 2,032 EBS licensees. All but 100 of these licenses are
held by educational institutions. Educational institutions are included in this analysis as small entities.201
Thus, we estimate that at least 1,932 licensees are small businesses. Since 2007, Cable Television
Distribution Services have been defined within the broad economic census category of Wired
Telecommunications Carriers; that category is defined as follows: "This industry comprises
establishments primarily engaged in operating and/or providing access to transmission facilities and
infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using
wired telecommunications networks. Transmission facilities may be based on a single technology or a
combination of technologies."202 The SBA has developed a small business size standard for this category,
which is: all such firms having 1,500 or fewer employees. To gauge small business prevalence for these
cable services we must, however, use current census data that are based on the previous category of Cable
and Other Program Distribution and its associated size standard; that size standard was: all such firms
having $13.5 million or less in annual receipts.203 According to Census Bureau data for 2002, there were


197 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. 309(j). For these pre-auction licenses, the
applicable standard is SBA's small business size standard.
198 Id. at 8296.
199 Auction of Broadband Radio Service (BRS) Licenses, Scheduled for October 27, 2009, Notice and Filing
Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 86, Public Notice, 24
FCC Rcd 8277 (2009).
200 Auction of Broadband Radio Service Licenses Closes, Winning Bidders Announced for Auction 86, Down
Payments Due November 23, 2009, Final Payments Due December 8, 2009, Ten-Day Petition to Deny Period,
Public Notice, 24 FCC Rcd 13572 (2009).
201 The term "small entity" within SBREFA applies to small organizations (nonprofits) and to small governmental
jurisdictions (cities, counties, towns, townships, villages, school districts, and special districts with populations of
less than 50,000). 5 U.S.C. 601(4)-(6). We do not collect annual revenue data on EBS licensees.
202 U.S. Census Bureau, 2007 NAICS Definitions, "517110 Wired Telecommunications Carriers" (partial
definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
203 13 C.F.R. 121.201, NAICS code 517110.
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a total of 1,191 firms in this previous category that operated for the entire year.204 Of this total, 1,087
firms had annual receipts of under $10 million, and 43 firms had receipts of $10 million or more but less
than $25 million.205 Thus, the majority of these firms can be considered small.
60.

Television Broadcasting

. This Economic Census category "comprises
establishments primarily engaged in broadcasting images together with sound. These establishments
operate television broadcasting studios and facilities for the programming and transmission of programs
to the public."206 The SBA has created the following small business size standard for Television
Broadcasting firms: those having $14 million or less in annual receipts.207 The Commission has
estimated the number of licensed commercial television stations to be 1,392.208 In addition, according to
Commission staff review of the BIA Publications, Inc., Master Access Television Analyzer Database
(BIA) on March 30, 2007, about 986 of an estimated 1,395 commercial television stations (or
approximately 72 percent) had revenues of $13 million or less.209 We therefore estimate that the majority
of commercial television broadcasters are small entities.
61.
We note, however, that in assessing whether a business concern qualifies as small
under the above definition, business (control) affiliations210 must be included. Our estimate, therefore,
likely overstates the number of small entities that might be affected by our action, because the revenue
figure on which it is based does not include or aggregate revenues from affiliated companies. In addition,
an element of the definition of "small business" is that the entity not be dominant in its field of operation.
We are unable at this time to define or quantify the criteria that would establish whether a specific
television station is dominant in its field of operation. Accordingly, the estimate of small businesses to
which rules may apply does not exclude any television station from the definition of a small business on
this basis and is therefore possibly over-inclusive to that extent.
62.
In addition, the Commission has estimated the number of licensed noncommercial
educational (NCE) television stations to be 391.211 These stations are non-profit, and therefore
considered to be small entities.212
63.
In addition, there are also 2,387 low power television stations (LPTV).213 Given
the nature of this service, we will presume that all LPTV licensees qualify as small entities under the
above SBA small business size standard.


204 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, Table 4, Receipts Size of Firms for
the United States: 2002, NAICS code 517510 (issued November 2005).
205 Id. An additional 61 firms had annual receipts of $25 million or more.
206 U.S. Census Bureau, 2007 NAICS Definitions, "515120 Television Broadcasting" (partial definition);
http://www.census.gov/naics/2007/def/ND515120.HTM#N515120.
207 13 C.F.R. 121.201, NAICS code 515120 (updated for inflation in 2008).
208 See FCC News Release, "Broadcast Station Totals as of September 30, 2010," dated October 22, 2010;
http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
209 We recognize that BIA's estimate differs slightly from the FCC total given supra.
210 "[Business concerns] are affiliates of each other when one concern controls or has the power to control the other
or a third party or parties controls or has to power to control both." 13 C.F.R. 21.103(a)(1).
211 See FCC News Release, "Broadcast Station Totals as of September 30, 2010," dated October 22, 2010;
http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
212 See generally 5 U.S.C. 601(4), (6).
213 See FCC News Release, "Broadcast Station Totals as of September 30, 2010," dated October 22, 2010;
http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
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64.

Radio Broadcasting

. This Economic Census category "comprises establishments
primarily engaged in broadcasting aural programs by radio to the public. Programming may originate in
their own studio, from an affiliated network, or from external sources."214 The SBA has established a
small business size standard for this category, which is: such firms having $7 million or less in annual
receipts.215 According to Commission staff review of BIA Publications, Inc.'s Master Access Radio
Analyzer Database
on March 31, 2005, about 10,840 (95%) of 11,410 commercial radio stations had
revenues of $6 million or less. Therefore, the majority of such entities are small entities.
65.
We note, however, that in assessing whether a business concern qualifies as small
under the above size standard, business affiliations must be included.216 In addition, to be determined to
be a "small business," the entity may not be dominant in its field of operation.217 We note that it is
difficult at times to assess these criteria in the context of media entities, and our estimate of small
businesses may therefore be over-inclusive.
66.

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.218
67.
The Commission estimates that there are approximately 5,618 FM translators and
boosters.219 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 ($7.0 million for a radio station or $14.0 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. 220
68.

Cable Television Distribution Services

. Since 2007, these services have been
defined within the broad economic census category of Wired Telecommunications Carriers; that category
is defined as follows: "This industry comprises establishments primarily engaged in operating and/or
providing access to transmission facilities and infrastructure that they own and/or lease for the
transmission of voice, data, text, sound, and video using wired telecommunications networks.


214 U.S. Census Bureau, 2007 NAICS Definitions, "515112 Radio Stations";
http://www.census.gov/naics/2007/def/ND515112.HTM#N515112.
215 13 C.F.R. 121.201, NAICS code 515112 (updated for inflation in 2008).
216 "Concerns and entities are affiliates of each other when one controls or has the power to control the other, or a
third party or parties controls or has the power to control both. It does not matter whether control is exercised, so
long as the power to control exists." 13 C.F.R. 121.103(a)(1) (an SBA regulation).
217 13 C.F.R. 121.102(b) (an SBA regulation).
218 13 C.F.R. 121.201, NAICS codes 515112 and 515120.
219 See supra note 242.
220 See 15 U.S.C. 632.
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Transmission facilities may be based on a single technology or a combination of technologies."221 The
SBA has developed a small business size standard for this category, which is: all such firms having 1,500
or fewer employees. To gauge small business prevalence for these cable services we must, however, use
current census data that are based on the previous category of Cable and Other Program Distribution and
its associated size standard; that size standard was: all such firms having $13.5 million or less in annual
receipts.222 According to Census Bureau data for 2002, there were a total of 1,191 firms in this previous
category that operated for the entire year.223 Of this total, 1,087 firms had annual receipts of under $10
million, and 43 firms had receipts of $10 million or more but less than $25 million.224 Thus, the majority
of these firms can be considered small.
69.

Cable Companies and Systems

. The Commission has also developed its own
small business size standards, for the purpose of cable rate regulation. Under the Commission's rules, a
"small cable company" is one serving 400,000 or fewer subscribers, nationwide.225 Industry data indicate
that, of 1,076 cable operators nationwide, all but eleven are small under this size standard.226 In addition,
under the Commission's rules, a "small system" is a cable system serving 15,000 or fewer subscribers.227
Industry data indicate that, of 6,635 systems nationwide, 5,802 systems have under 10,000 subscribers,
and an additional 302 systems have 10,000-19,999 subscribers.228 Thus, under this second size standard,
most cable systems are small.
70.

Cable System Operators

. The Communications Act of 1934, as amended, also
contains a size standard for small cable system operators, which is "a cable operator that, directly or
through an affiliate, serves in the aggregate fewer than 1 percent of all subscribers in the United States
and is not affiliated with any entity or entities whose gross annual revenues in the aggregate exceed
$250,000,000."229 The Commission has determined that an operator serving fewer than 677,000
subscribers shall be deemed a small operator, if its annual revenues, when combined with the total annual
revenues of all its affiliates, do not exceed $250 million in the aggregate.230 Industry data indicate that, of


221 U.S. Census Bureau, 2007 NAICS Definitions, "517110 Wired Telecommunications Carriers" (partial
definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
222 13 C.F.R. 121.201, NAICS code 517110.
223 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, Table 4, Receipts Size of Firms for
the United States: 2002, NAICS code 517510 (issued November 2005).
224 Id. An additional 61 firms had annual receipts of $25 million or more.
225 47 C.F.R. 76.901(e). The Commission determined that this size standard equates approximately to a size
standard of $100 million or less in annual revenues. Implementation of Sections of the 1992 Cable Act: Rate
Regulation,
Sixth Report and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393, 7408 (1995).
226 These data are derived from: R.R. Bowker, Broadcasting & Cable Yearbook 2006, "Top 25 Cable/Satellite
Operators," pages A-8 & C-2 (data current as of June 30, 2005); Warren Communications News, Television &
Cable Factbook 2006
, "Ownership of Cable Systems in the United States," pages D-1805 to D-1857.
227 47 C.F.R. 76.901(c).
228 Warren Communications News, Television & Cable Factbook 2008, "U.S. Cable Systems by Subscriber Size,"
page F-2 (data current as of Oct. 2007). The data do not include 851 systems for which classifying data were not
available.
229 47 U.S.C. 543(m)(2); see 47 C.F.R. 76.901(f) & nn. 1-3.
230 47 C.F.R. 76.901(f); see Public Notice, FCC Announces New Subscriber Count for the Definition of Small
Cable Operator
, DA 01-158 (Cable Services Bureau, Jan. 24, 2001).
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1,076 cable operators nationwide, all but ten are small under this size standard.231 We note that the
Commission neither requests nor collects information on whether cable system operators are affiliated
with entities whose gross annual revenues exceed $250 million,232 and therefore we are unable to estimate
more accurately the number of cable system operators that would qualify as small under this size
standard.
71.

Open Video Systems

. The open video system ("OVS") framework was
established in 1996, and is one of four statutorily recognized options for the provision of video
programming services by local exchange carriers.233 The OVS framework provides opportunities for the
distribution of video programming other than through cable systems. Because OVS operators provide
subscription services,234 OVS falls within the SBA small business size standard covering cable services,
which is "Wired Telecommunications Carriers."235 The SBA has developed a small business size
standard for this category, which is: all such firms having 1,500 or fewer employees. To gauge small
business prevalence for such services we must, however, use current census data that are based on the
previous category of Cable and Other Program Distribution and its associated size standard; that size
standard was: all such firms having $13.5 million or less in annual receipts.236 According to Census
Bureau data for 2002, there were a total of 1,191 firms in this previous category that operated for the
entire year.237 Of this total, 1,087 firms had annual receipts of under $10 million, and 43 firms had
receipts of $10 million or more but less than $25 million.238 Thus, the majority of cable firms can be
considered small. In addition, we note that the Commission has certified some OVS operators, with some
now providing service.239 Broadband service providers ("BSPs") are currently the only significant
holders of OVS certifications or local OVS franchises.240 The Commission does not have financial or
employment information regarding the entities authorized to provide OVS, some of which may not yet be
operational. Thus, again, at least some of the OVS operators may qualify as small entities.
72.

Cable Television Relay Service

. This service includes transmitters generally
used to relay cable programming within cable television system distribution systems. This cable service
is defined within the broad economic census category of Wired Telecommunications Carriers; that
category is defined as follows: "This industry comprises establishments primarily engaged in operating


231 These data are derived from: R.R. Bowker, Broadcasting & Cable Yearbook 2006, "Top 25 Cable/Satellite
Operators," pages A-8 & C-2 (data current as of June 30, 2005); Warren Communications News, Television &
Cable Factbook 2006
, "Ownership of Cable Systems in the United States," pages D-1805 to D-1857.
232 The Commission does receive such information on a case-by-case basis if a cable operator appeals a local
franchise authority's finding that the operator does not qualify as a small cable operator pursuant to 76.901(f) of
the Commission's rules. See 47 C.F.R. 76.909(b).
233 47 U.S.C. 571(a)(3)-(4). See Annual Assessment of the Status of Competition in the Market for the Delivery of
Video Programming, Thirteenth Annual Report,
24 FCC Rcd 542, 606 135 (2009) ("Thirteenth Annual Cable
Competition Report
").
234 See 47 U.S.C. 573.
235 U.S. Census Bureau, 2007 NAICS Definitions, "517110 Wired Telecommunications Carriers";
http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
236 13 C.F.R. 121.201, NAICS code 517110.
237 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, Table 4, Receipts Size of Firms for
the United States: 2002, NAICS code 517510 (issued November 2005).
238 Id. An additional 61 firms had annual receipts of $25 million or more.
239 A list of OVS certifications may be found at http://www.fcc.gov/mb/ovs/csovscer.html.
240 See Thirteenth Annual Cable Competition Report, 24 FCC Rcd at 606-07 135. BSPs are newer firms that are
building state-of-the-art, facilities-based networks to provide video, voice, and data services over a single network.
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and/or providing access to transmission facilities and infrastructure that they own and/or lease for the
transmission of voice, data, text, sound, and video using wired telecommunications networks.
Transmission facilities may be based on a single technology or a combination of technologies."241 The
SBA has developed a small business size standard for this category, which is: all such firms having 1,500
or fewer employees. To gauge small business prevalence for cable services we must, however, use
current census data that are based on the previous category of Cable and Other Program Distribution and
its associated size standard; that size standard was: all such firms having $13.5 million or less in annual
receipts.242 According to Census Bureau data for 2002, there were a total of 1,191 firms in this previous
category that operated for the entire year.243 Of this total, 1,087 firms had annual receipts of under $10
million, and 43 firms had receipts of $10 million or more but less than $25 million.244 Thus, the majority
of these firms can be considered small.
73.

Multichannel Video Distribution and Data Service

. MVDDS is a terrestrial
fixed microwave service operating in the 12.2-12.7 GHz band. The Commission adopted criteria for
defining three groups of small businesses for purposes of determining their eligibility for special
provisions such as bidding credits. It defined a very small business as an entity with average annual gross
revenues not exceeding $3 million for the preceding three years; a small business as an entity with
average annual gross revenues not exceeding $15 million for the preceding three years; and an
entrepreneur as an entity with average annual gross revenues not exceeding $40 million for the preceding
three years.245 These definitions were approved by the SBA.246 On January 27, 2004, the Commission
completed an auction of 214 MVDDS licenses (Auction No. 53). In this auction, ten winning bidders
won a total of 192 MVDDS licenses.247 Eight of the ten winning bidders claimed small business status
and won 144 of the licenses. The Commission also held an auction of MVDDS licenses on December 7,
2005 (Auction 63). Of the three winning bidders who won 22 licenses, two winning bidders, winning 21
of the licenses, claimed small business status.248
74.

Amateur Radio Service

. These licensees are held by individuals in a
noncommercial capacity; these licensees are not small entities.
75.

Aviation and Marine Services

. Small businesses in the aviation and marine
radio services use a very high frequency ("VHF") marine or aircraft radio and, as appropriate, an


241 U.S. Census Bureau, 2007 NAICS Definitions, "517110 Wired Telecommunications Carriers" (partial
definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
242 13 C.F.R. 121.201, NAICS code 517110.
243 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, Table 4, Receipts Size of Firms for
the United States: 2002, NAICS code 517510 (issued November 2005).
244 Id. An additional 61 firms had annual receipts of $25 million or more.
245 Amendment of Parts 2 and 25 of the Commission's Rules to Permit Operation of NGSO FSS Systems Co-
Frequency with GSO and Terrestrial Systems in the Ku-Band Frequency Range; Amendment of the Commission's
Rules to Authorize Subsidiary Terrestrial Use of the 12.2-12.7 GHz Band by Direct Broadcast Satellite Licenses and
their Affiliates; and Applications of Broadwave USA, PDC Broadband Corporation, and Satellite Receivers, Ltd. to
provide A Fixed Service in the 12.2-12.7 GHz Band
, ET Docket No. 98-206, Memorandum Opinion and Order and
Second Report and Order, 17 FCC Rcd 9614, 9711, 252 (2002).
246 See Letter from Hector V. Barreto, Administrator, U.S. Small Business Administration, to Margaret W. Wiener,
Chief, Auctions and Industry Analysis Division, WTB, FCC (Feb.13, 2002).
247 See "Multichannel Video Distribution and Data Service Auction Closes," Public Notice, 19 FCC Rcd 1834
(2004).
248 See "Auction of Multichannel Video Distribution and Data Service Licenses Closes; Winning Bidders Announced
for Auction No. 63
," Public Notice, 20 FCC Rcd 19807 (2005).
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emergency position-indicating radio beacon (and/or radar) or an emergency locator transmitter. The
Commission has not developed a small business size standard specifically applicable to these small
businesses. For purposes of this analysis, the Commission uses the SBA small business size standard for
the category Wireless Telecommunications Carriers (except Satellite), which is 1,500 or fewer
employees.249 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 in this analysis, we
estimate that there are up to approximately 712,000 licensees that are small businesses (or individuals)
under the SBA standard. In addition, between December 3, 1998 and December 14, 1998, the
Commission held an auction of 42 VHF Public Coast licenses in the 157.1875-157.4500 MHz (ship
transmit) and 161.775-162.0125 MHz (coast transmit) bands. For purposes of the auction, the
Commission defined a "small" business as an entity that, together with controlling interests and affiliates,
has average gross revenues for the preceding three years not to exceed $15 million dollars. In addition, a
"very small" business is one that, together with controlling interests and affiliates, has average gross
revenues for the preceding three years not to exceed $3 million dollars.250 There are approximately
10,672 licensees in the Marine Coast Service, and the Commission estimates that almost all of them
qualify as "small" businesses under the above special small business size standards.
76.

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 Personal Radio Services include spectrum licensed under Part 95 of our rules.251
These services include Citizen Band Radio Service ("CB"), General Mobile Radio Service ("GMRS"),
Radio Control Radio Service ("R/C"), Family Radio Service ("FRS"), Wireless Medical Telemetry
Service ("WMTS"), Medical Implant Communications Service ("MICS"), Low Power Radio Service
("LPRS"), and Multi-Use Radio Service ("MURS").252 There are a variety of methods used to license the
spectrum in these rule parts, from licensing by rule, to conditioning operation on successful completion of
a required test, to site-based licensing, to geographic area licensing. Under the RFA, the Commission is
required to make a determination of which small entities are directly affected by the rules being proposed.
Since all such entities are wireless, we apply the definition of Wireless Telecommunications Carriers
(except Satellite), pursuant to which a small entity is defined as employing 1,500 or fewer persons.253
Many of the licensees in these services are individuals, and thus are not small entities. In addition, due to
the mostly unlicensed and shared nature of the spectrum utilized in many of these services, the
Commission lacks direct information upon which to base an estimation of the number of small entities
under an SBA definition that might be directly affected by our action.
77.

Public Safety Radio Services

. Public Safety radio services include police, fire,
local government, forestry conservation, highway maintenance, and emergency medical services.254


249 13 C.F.R. 121.201, NAICS code 517210.
250 Amendment of the Commission's Rules Concerning Maritime Communications, Third Report and Order and
Memorandum Opinion and Order, 13 FCC Rcd 19853 (1998).
251 47 C.F.R. Part 90.
252 The Citizens Band Radio Service, General Mobile Radio Service, Radio Control Radio Service, Family Radio
Service, Wireless Medical Telemetry Service, Medical Implant Communications Service, Low Power Radio
Service, and Multi-Use Radio Service are governed by Subpart D, Subpart A, Subpart C, Subpart B, Subpart H,
Subpart I, Subpart G, and Subpart J, respectively, of Part 95 of the Commission's rules. See generally 47 C.F.R.
Part 95.
253 13 C.F.R. 121.201, NAICS Code 517210.
254 With the exception of the special emergency service, these services are governed by Subpart B of part 90 of the
Commission's Rules, 47 C.F.R. 90.15-90.27. The police service includes approximately 27,000 licensees that
serve state, county, and municipal enforcement through telephony (voice), telegraphy (code) and teletype and
(continued....)
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There are a total of approximately 127,540 licensees in these services. Governmental entities255 as well as
private businesses comprise the licensees for these services. All governmental entities with populations
of less than 50,000 fall within the definition of a small entity.256
78.

Internet Service Providers

. The 2007 Economic Census places these firms,
whose services might include voice over Internet protocol (VoIP), in either of two categories, depending
on whether the service is provided over the provider's own telecommunications connections (e.g. cable
and DSL, ISPs), or over client-supplied telecommunications connections (e.g. dial-up ISPs). The former
are within the category of Wired Telecommunications Carriers,257 which has an SBA small business size
standard of 1,500 or fewer employees.258 The latter are within the category of All Other
Telecommunications,259 which has a size standard of annual receipts of $25 million or less.260 The most
current Census Bureau data for all such firms, however, are the 2002 data for the previous census
category called Internet Service Providers.261 That category had a small business size standard of $21
million or less in annual receipts, which was revised in late 2005 to $23 million. The 2002 data show that
there were 2,529 such firms that operated for the entire year.262 Of those, 2,437 firms had annual receipts
of under $10 million, and an additional 47 firms had receipts of between $10 million and $24,999,999.263
Consequently, we estimate that the majority of ISP firms are small entities.
79.
The ISP industry has changed dramatically since 2002. The 2002 data cited above
may therefore include entities that no longer provide Internet access service and may exclude entities that
now provide such service. To ensure that this (IRFA/FRFA) describes the universe of small entities that
(Continued from previous page)


facsimile (printed material). The fire radio service includes approximately 23,000 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 approximately 41,000 licensees that are state, county, or municipal entities that use the
radio for official purposes not covered by other public safety services. There are approximately 7,000 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
approximately 9,000 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
approximately 1,000 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 C.F.R. 90.15-90.27. The approximately 20,000 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 C.F.R. 90.33-90.55.
255 47 C.F.R. 1.1162.
256 5 U.S.C. 601(5).
257 U.S. Census Bureau, 2007 NAICS Definitions, "517110 Wired Telecommunications Carriers",
http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
258 13 C.F.R. 121.201, NAICS code 517110 (updated for inflation in 2008).
259 U.S. Census Bureau, 2007 NAICS Definitions, "517919 All Other Telecommunications";
http://www.census.gov/naics/2007/def/ND517919.HTM#N517919.
260 13 C.F.R. 121.201, NAICS code 517919 (updated for inflation in 2008).
261 U.S. Census Bureau, "2002 NAICS Definitions, "518111 Internet Service Providers";
http://www.census.gov/eped/naics02/def/NDEF518.HTM.
262 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, "Establishment and Firm Size
(Including Legal Form of Organization)," Table 4, NAICS code 518111 (issued Nov. 2005).
263 An additional 45 firms had receipts of $25 million or more.
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our action might affect, we discuss in turn several different types of entities that might be providing
Internet access service.
80.
We note that, although we have no specific information on the number of small
entities that provide Internet access service over unlicensed spectrum, we include these entities in our
IRFA/FRFA.

IV

.

Description of Projected Reporting, Recordkeeping and Other Compliance Requirements:

81.
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, and pay a regulatory fee based on the number of licenses or call signs.264 In some
instances, licensees may decide to submit an FCC Form 159 Remittance Advice. 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. 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. 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 submit a
regulatory fee payment, and it can be completed by the employees responsible for an entity's business
records.
82.
As discussed previously in this Notice of Proposed Rulemaking, the Commission
concluded in its FY 2009 regulatory fee cycle that licensees filing their annual regulatory fee payments
must begin the process by entering the Commission's Fee Filer system with a valid FRN and password.
In some instances, it will be necessary to use a specific FRN and password that is linked to a particular
regulatory fee bill. Going forward, the submission of hardcopy Form 159 documents will not be
permitted for making a regulatory fee payment during the regulatory fee cycle. By requiring licensees to
use Fee Filer to begin the regulatory fee payment process, errors resulting from illegible handwriting on
hardcopy Form 159's will be reduced, and the Commission will be able to create an electronic record of
licensee payment attributes that are more easily traceable than payments that were previously mailed in
with a hardcopy Form 159.
83.
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.265 If payment is not received, new or pending applications may be dismissed,


264 See 47 C.F.R. 1.1162 for the general exemptions from regulatory fees. E.g., 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.
265 47 C.F.R. 1.1164.
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and existing authorizations may be subject to rescission.266 Further, in accordance with the DCIA, 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.267 Nonpayment of regulatory
fees is a debt owed to the United States pursuant to 31 U.S.C. 3711 et seq., and the DCIA. 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.268
84.
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.269
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 (e.g. 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.

V.

Steps Taken to Minimize Significant Economic Impact on Small Entities, and Significant

Alternatives Considered:

85.
The RFA requires an agency to describe any significant alternatives that it has
considered in reaching its approach, which may include the following four alternatives, among others: (1)
the establishment of differing compliance or reporting requirements or timetables that take into account
the resources available to small entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities; (3) the use of performance, rather
than design, standards; and (4) an exemption from coverage of the rule, or any part thereof, for small
entities.270 In our NPRM, we sought comment on alternatives that might simplify our fee procedures or
otherwise benefit filers, including small entities, while remaining consistent with our statutory
responsibilities in this proceeding. We received no comments specifically in response to the IRFA.
86.
Several categories of licensees and regulatees are exempt from payment of
regulatory fees. Also, waiver procedures provide regulatees, including small entity regulatees, relief in
exceptional circumstances. We note that small entities should be assisted by our implementation of the
Fee Filer program, and that we have continued our practice of exempting fees whose total sum owed is
less than $10.00.

VI

.

Federal Rules that May Duplicate, Overlap, or Conflict with the Proposed Rules:

87.
None.


266 47 C.F.R. 1.1164(c).
267 Public Law 104-134, 110 Stat. 1321 (1996).
268 31 U.S.C. 7701(c)(2)(B).
269 47 C.F.R. 1.1166.
270 5 U.S.C. 603.
54

Federal Communications Commission

FCC 11-68

APPENDIX F

FY 2010 Schedule of Regulatory Fees

Regulatory fees for the categories shaded in gray are collected by the Commission in advance to cover the
term of the license and are submitted along with the application at the time the application is filed.

Annual

Fee Category

Regulatory Fee

(U.S. $'s)
PLMRS (per license) (Exclusive Use) (47 CFR part 90)
40
Microwave (per license) (47 CFR part 101)
25
218-219 MHz (Formerly Interactive Video Data Service) (per license) (47 CFR
65
part 95)
Marine (Ship) (per station) (47 CFR part 80)
10
Marine (Coast) (per license) (47 CFR part 80)
45
General Mobile Radio Service (per license) (47 CFR part 95)
5
Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category)
20
PLMRS (Shared Use) (per license) (47 CFR part 90)
20
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)
1.33
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and
.18
90)
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90)
.08
Broadband Radio Service (formerly MMDS/ MDS) (per license) (47 CFR part
310
21)
Local Multipoint Distribution Service (per call sign) (47 CFR, part 101)
310
AM Radio Construction Permits
390
FM Radio Construction Permits
675
TV (47 CFR part 73) VHF Commercial
Markets 1-10
81,550
Markets 11-25
63,275
Markets 26-50
42,550
Markets 51-100
23,750
Remaining Markets
6,125
Construction Permits
6,125
55

Federal Communications Commission

FCC 11-68

Annual

Fee Category

Regulatory Fee

(U.S. $'s)
TV (47 CFR part 73) UHF Commercial
Markets 1-10
32,275
Markets 11-25
30,075
Markets 26-50
18,900
Markets 51-100
11,550
Remaining Markets
3,050
Construction Permits
3,050
Satellite Television Stations (All Markets)
1,300
Construction Permits Satellite Television Stations
675
Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74)
415
Broadcast Auxiliaries (47 CFR part 74)
10
CARS (47 CFR part 78)
315
Cable Television Systems (per subscriber) (47 CFR part 76)
.89
Interstate Telecommunication Service Providers (per revenue dollar)
.00349
Earth Stations (47 CFR part 25)
240
Space Stations (per operational station in geostationary orbit) (47 CFR part 25)
also includes DBS Service (per operational station) (47 CFR part 100)
127,925
Space Stations (per operational system in non-geostationary orbit) (47 CFR part
138,050
25)
International Bearer Circuits - Terrestrial/Satellites (per 64KB circuit)
.39
International Bearer Circuits - Submarine Cable
See Table Below
56

Federal Communications Commission

FCC 11-68

FY 2010 SCHEDULE OF REGULATORY FEES (continued)

FY 2010 RADIO STATION REGULATORY FEES

Population

AM Class AM Class

AM

AM

FM Classes

FM Classes

Served

A

B

Class C

Class D

A, B1 & C3

B, C, C0, C1

& C2
<=25,000
$675
$550
$500
$575
$650
$825
25,001 75,000
$1,350
$1,075
$750
$875
$1,325
$1,450
75,001 150,000
$2,025
$1,350
$1,000
$1,450
$1,825
$2,725
150,001 500,000
$3,050
$2,300
$1,500
$1,725
$2,800
$3,550
500,001 1,200,000
$4,400
$3,500
$2,500
$2,875
$4,450
$5,225
1,200,001 3,000,00
$6,750
$5,400
$3,750
$4,600
$7,250
$8,350
>3,000,000
$8,100
$6,475
$4,750
$5,750
$9,250
$10,850

FY 2010 SCHEDULE OF REGULATORY FEES

International Bearer Circuits - Submarine Cable

Submarine Cable Systems
Fee amount
Address
(capacity as of December 31, 2009)
< 2.5 Gbps
FCC, International, P.O. Box
$14,625
979084, St. Louis, MO 63197-
9000
2.5 Gbps or greater, but less
than 5 Gbps

$29,250
FCC, International, P.O. Box
979084, St. Louis, MO 63197-
9000
5 Gbps or greater, but less than
10 Gbps

$58,500
FCC, International, P.O. Box
979084, St. Louis, MO 63197-
9000
10 Gbps or greater, but less
than 20 Gbps

$116,975
FCC, International, P.O. Box
979084, St. Louis, MO 63197-
9000
20 Gbps or greater
$233,950
FCC, International, P.O. Box
979084, St. Louis, MO 63197-
9000
57

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