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FY 2012 Regulatory Fees NPRM

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Released: May 4, 2012

Federal Communications Commission

FCC 12-48

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of
)
)

Assessment and Collection of Regulatory Fees for )
MD Docket No. 12-116
Fiscal Year 2012
)
)
)
)

NOTICE OF PROPOSED RULEMAKING

Adopted: May 3, 2012


Released: May 4, 2012

Comment Date

: May 31, 2012

Reply Comment Date

: June 7, 2012

By the Commission

:

TABLE OF CONTENTS

Heading
Paragraph #
I.
INTRODUCTION AND SUMMARY................................................................................................... 1
II. NOTICE OF PROPOSED RULEMAKING .......................................................................................... 6
A. Regulatory Fee Obligations for AM and FM Radio Stations........................................................... 9
B. Regulatory Fee Obligations for Digital Low Power, Class A, and TV Translators
/Boosters ........................................................................................................................................ 10
C. Regulatory Fee Obligations of Interstate Telecommunications Service Providers........................ 11
D. Improving Public Information on Waiver Requests and Decisions............................................... 12
E. Administrative and Operational Issues .......................................................................................... 13
III. FEE COLLECTION PROCEDURES .................................................................................................. 15
A. Public Notices and Fact Sheets ...................................................................................................... 16
B. Pre-Bill Notification and Collection of Regulatory Fees............................................................... 17
C. Assessment Notifications............................................................................................................... 18
1. Media Services Licensees........................................................................................................ 18
2. CMRS Cellular and Mobile Services Assessments................................................................. 19
3. Submarine Cable Allocation.................................................................................................... 22
D. Streamlined Regulatory Fee Payment Process............................................................................... 23
1. Cable Television Subscribers .................................................................................................. 23
2. CMRS Cellular and Mobile Providers..................................................................................... 24
3. Interstate Telecommunications Service Providers................................................................... 25
E. Payment of Regulatory Fees .......................................................................................................... 26
1. Lock Box Bank........................................................................................................................ 26
2. Receiving Bank for Wire Payments ........................................................................................ 27
3. De Minimis Regulatory Fees................................................................................................... 28
4. Standard Fee Calculations and Payment Dates ....................................................................... 29
F. Enforcement................................................................................................................................... 30

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FCC 12-48

IV. PROCEDURAL MATTERS................................................................................................................ 32
A. Initial Regulatory Flexibility Analysis........................................................................................... 32
B. Initial Paperwork Reduction Act of 1995 Analysis ....................................................................... 33
C. Other Procedural Matters ............................................................................................................... 34
1. Ex Parte Presentations ............................................................................................................. 34
2. Filing Requirements ................................................................................................................ 35
V. ORDERING CLAUSES....................................................................................................................... 40
ATTACHMENT A
Calculation of FY 2012 Revenue Requirements and Pro-Rata Fees
ATTACHMENT B
2012 Schedule of Regulatory Fees
ATTACHMENT C
Sources of Payment Unit Estimates for FY 2012
ATTACHMENT D
Factors, Measurements, and Calculations That Determine Station Signal
Contours and Associated Population Coverages
ATTACHMENT E
Initial Regulatory Flexibility Analysis
ATTACHMENT F
FY 2011 Schedule of Regulatory Fees

I.

INTRODUCTION AND SUMMARY

1.
In this Notice of Proposed Rulemaking (“FY 2012 NPRM”), we propose to collect
$339,844,000 in regulatory fees for Fiscal Year (“FY”) 2012, 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 amount of regulatory
fees to be collected is established each year in the Commission’s Annual Appropriations Act, which funds
the Commission.2 In this annual regulatory fee proceeding, we retain many of the current 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 2012 filing window in order to collect the required amount by the end of our fiscal year.
2.
This FY 2012 NPRM is one of three Notices of Proposed Rulemakings on regulatory fees
that the Commission expects to release on or before FY 2013. Because of the complexity of the
regulatory fee issues involved, the Commission will seek comment in phases.
3.
Since 1994 when the first regulatory fees were collected, the communications industry
has undergone a rapid transformation. At the same time, the current method for assessing regulatory fees
has changed only slightly since its inception in 1994.3 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 methodology.4 In our FY 2011
Regulatory Fees Report & Order, we stated that we would initiate a further rulemaking to update the
record on regulatory fee rebalancing, as well as expand the inquiry to include new issues and services not
covered by the FY 2008 Further Notice of Proposed Rulemaking.5
4.
In re-examining the regulatory fee program, as enacted by Congress and codified in
section 9 of the Communications Act, 47 U.S.C. § 159, the Commission will undertake two separate


1 47 U.S.C. § 159(a).
2 See the Consolidated Appropriations Act of 2012, Public Law 112-74 (December 23, 2011).
3 47 U.S.C. § 159(a) and § 159(b).
4 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.
5 See Assessment and Collection of Regulatory Fees for Fiscal Year 2011, Report and Order, 26 FCC Rcd 10812
(2011) at para. 28 (“FY 2011 Report and Order”).
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Notices of Proposed Rulemakings (“Reform Proceedings”) which will address the issues in two phases.
In Phase I, we will primarily consider the allocation percentages of core bureaus involved in regulatory
fee activity and how we calculate these percentages, and in Phase II, we will address other outstanding
substantive and procedural issues. Given the breadth and complexity of the issues involved, the issuance
of two separate Notices of Proposed Rulemakings will permit more orderly and consistent analysis of the
issues and facilitate their timely resolution. We will issue a Report and Order finalizing our decision on
all the issues raised in the Reform Proceedings, including new cost allocations and revised regulatory fees
in sufficient time to allow for their implementation in FY 2013.
5.
Although the Commission will reexamine its regulatory fee program in two separate
Notices of Proposed Rulemakings, the regular collections FY 2012 NPRM and the subsequent FY 2012
Report & Order will be adopted in sufficient time to collect regulatory fees in FY 2012. The proposed FY
2012 regulatory fee rates are listed in Attachment B. In calculating these FY 2012 fee rates, the
Commission proposes to: 1) incorporate the results of the 2010 Census data into our broadcast population
data, 2) assess a regulatory fee for each facility operating either in an analog or digital mode (but not
both) for Low Power, Class A, and TV Translators/Boosters, 3) maintain the FY 2012 Interstate
Telecommunications Service Provider (ITSP) fee rate at the same level as in FY 2011, 4) require
regulatees filing a request for a refund, waiver, fee reduction, or deferment of payment of an application
or regulatory fee to use an online filing system rather than submitting their requests in hardcopy format,
and 5) seek general comment on improving our collection procedures and processes.

II.

NOTICE OF PROPOSED RULEMAKING

6.

The section 9 regulatory fee proceeding is an annual rulemaking process for the
Commission to collect the required fee amount each year. In this FY 2012 NPRM, we propose to retain
the section 9 regulatory fee methodology used in FY 2011 and in prior fiscal years, with some
adjustments to maintain the FY 2012 ITSP fee rate at the same level as in FY 2011. These adjustments
are reflected in the ITSP fee rate, and in the fee rates of all remaining fee categories listed in Attachment
B.
7.
In each fiscal year since FY 1999, the Commission allocated the amount appropriated by
Congress (e.g. $339,844,000 in FY 2012) across the various fee categories, and then divided these
allocated amounts by the number of estimated payment units in each fee category to determine the unit
fee.6 As in prior years, for cases involving small multiyear fees (e.g., licenses that are renewed over a
multiyear term), we divided the allocated amounts by their respective estimated payment units, as well as
by the term of the license (5-year or 10-year) to determine the unit fee, which was then rounded to be
consistent with the requirements of Section 9(b)(2) of the Act. This process is illustrated in Attachment A
and yields the proposed FY 2012 regulatory fees shown in Attachment B.
8.
The list of sources for the estimated FY 2012 payment units appears in Attachment C.
We estimated the number of payment units using 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.7 Where appropriate, we adjusted and rounded our final estimates to take


6 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.
7 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
(continued….)
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into account factors that could affect the number of units for which regulatees submit payment. Such factors
include waivers and exemptions filed in FYs 2011 and 2012, and fluctuations in the number of licenses or
station operators due to economic, technical, or other reasons. Our estimated FY 2012 payment units,
therefore, are based on the variable factors that are relevant to each fee category. The fee rate may also be
rounded or adjusted slightly to account for these variables.

A.

Regulatory Fee Obligations for AM and FM Radio Stations

9.
The fee methodology for AM and FM radio stations is based on a number of factors,
including 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 Attachment D. In FY 2012, the Commission will be incorporating the
results of the 2010 Census data into our broadcast population data. These population counts, along with
the station’s class and type of service, are the basis for determining regulatory fees. We invite interested
parties to comment on incorporating the 2010 Census data into our broadcast population data.

B.

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

/Boosters
10.
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 still remains voluntary,
even though a transition date of September 1, 2015 has been set for the completion of this transition.
Historically, we have only considered the digital transition in the context of regulatory fees applicable to
full-service television stations, and not to Low Power, Class A, and TV Translators/Boosters.
Consequently, the “digital only” exemption that previously prevailed does not apply to Low Power, Class
A, and TV Translator/Booster facilities. Because the digital transition in the Low Power, Class A, and
TV Translator/Booster facilities is still voluntary, some of these facilities may transition from analog to
digital service more rapidly than others. During this period of transition, 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. Therefore, for regulatory fee purposes, we conclude that a fee will be
assessed for each facility operating either in an analog or digital mode. In instances in which a licensee is
simulcasting in both analog and digital modes, a single regulatory fee will be assessed for the analog
facility and its corresponding digital component. We request comment on this proposal. As greater
numbers of facilities convert to digital mode, the Commission will provide revised instructions on how
regulatory fees will be assessed.

C.

Regulatory Fee Obligations of Interstate Telecommunications Service Providers

11.
In our FY 2011 Regulatory Fee Report and Order, we assessed the Interstate
Telecommunications Service Provider (“ITSP”) industry a regulatory fee of $.00375 per revenue dollar.
This fee reflects the Commission’s decision to limit the increase in ITSP regulatory fees given the
continuing decrease in the revenue base upon which ITSP regulatory fees are calculated. In FY2011, we
stated that we would rebalance ITSP regulatory fees in the context of more fundamental regulatory fee
reform, which we will address in the forthcoming Reform Proceedings. Because we limited the increase
in ITSP regulatory fees in FY 2011, and we expect that rebalancing ITSP fees will reduce the regulatory
fee allocation for the ITSP industry, we propose, as an interim measure, to assess FY 2012 ITSP
regulatory fees at the same fee rate as in FY 2011 (.00375). In addition, consistent with our approach in
FY2011, we propose to allocate the remaining revenue requirement across all other fee categories. We
seek comment on these proposals.
(Continued from previous page)


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.
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FCC 12-48

D.

Improving Public Information on Waiver Requests and Decisions

12.
To improve the openness and transparency of our fee waiver decisions, we will shortly
announce improvements in the way that we provide public information about the waiver requests that are
filed and the decisions resolving them. To assist in the implementation of these changes, we propose to
require regulatees filing a request for a refund, waiver, fee reduction, or deferment of payment of an
application or regulatory fee to use an online filing system rather than submitting their requests in
hardcopy format. We believe that an online filing system will complement other existing online
Commission systems already in place, such as the Broadcast Radio and Television Electronic Filing
System (more commonly referred to as CDBS), the Cable Operations and Licensing System (COALS),
and Consumer Complaint Forms. The resulting fee waiver filing system will include such documents as
the filed request, any relevant supporting documentation, and the resulting decision. We propose to apply
the provisions of section 0.459 to requests that electronically-filed material be withheld from public
inspection.8 We invite comment from regulatees regarding the electronic filing of refund, waiver, fee
reduction, and deferment requests.

E.

Administrative and Operational Issues

13.
In FY 2009, the Commission implemented several changes in procedures that simplified
the payment and reconciliation processes of FY 2009 regulatory fees. In FY 2012, the Commission will
continue to promote greater use of technology (and less use of paper) in improving our regulatory fee
notification and collection process. We seek general comment on improving our fee collection process.
14.
In FY 2009, we instituted a mandatory filing requirement using the Commission’s
electronic filing and payment system (also known as “Fee Filer”).9 Licensees filing their annual
regulatory fee payments were required to begin the process by entering the Commission’s Fee Filer
system with a valid FCC Registration Number (“FRN”) and password.10 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 makes it much easier to process payments efficiently and effectively. We seek general comment
on how to improve the use of Fee Filer in filing annual regulatory fees. Because licensees have different
options when making their regulatory fee payment (by credit card, check, wire transfer, etc.), the
mandatory requirement to use Fee Filer is for the filing of annual regulatory fees using Fee Filer, not the
payment of regulatory fees through Fee Filer. In the upcoming Reform Proceeding, we will examine
whether to expand the use of Fee Filer for the filing of regulatory fees.

III.

FEE COLLECTION PROCEDURES

15.
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.


8 Specifically, Section 0.457(a) (2) through (g) describe, inter alia, how confidential material should be submitted
electronically, what showings must be made to justify withholding electronically-submitted information from public
inspection, and how the Commission will resolve confidentiality requests.
9 FY 2009 Report and Order at ¶¶ 20 and 21.
10 Therefore, it is important for licensees to have a current and valid FRN address on file in the Commission’s
Registration System (CORES).
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A.

Public Notices and Fact Sheets

16.
Each year we post public notices and fact sheets pertaining to regulatory fees on our
website. These documents contain information about the payment due date and relevant regulatory fee
payment procedures. We will continue to post this information on
http://transition.fcc.gov/fees/regfees.html, rather than mailing it to regulatees.

B.

Pre-Bill Notification and Collection of Regulatory Fees

17.
In prior years, the Commission mailed pre-bills via surface mail to licensees in select
regulatory fee categories: ITSPs, Geostationary (“GSO”) and Non-Geostationary (“NGSO”) satellite
space station licensees,11 holders of Cable Television Relay Service (“CARS”) licenses, and Earth Station
licensees.12 The remaining regulatees did not receive pre-bills. In our FY 2009 Report and Order, the
Commission decided to make the information contained in these pre-bills viewable in Fee Filer, rather
than mailing pre-bills to licensees via surface mail.13 We continued this practice in FY 2010 and FY 2011
by placing the pre-bill information on Fee Filer, where it could be accessed by licensees through the
Commission’s website. Regulatees can also look to the Commission’s website for information on
upcoming events and deadlines relating to regulatory fees.

C.

Assessment Notifications

1.

Media Services Licensees

18.
Beginning in FY 2003, we sent fee assessment notifications via surface mail to media
services entities on a per-facility basis.14 These notifications provided the assessed fee amount for the
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.15 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.16 In FY 2012, we will continue the practice of not mailing hardcopy notification
assessment letters to media licensees.


11 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.
12 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.
13 See FY 2009 Report and Order at ¶¶ 24, 26.
14An assessment is a proposed statement of the amount of regulatory fees owed by an 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.
15 Those refinements include providing licensees with a Commission-authorized website where they can update or
correct any information concerning their facilities, and 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.
16 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”)
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2.

CMRS Cellular and Mobile Services Assessments

19.
We will continue to follow our current procedures for conveying CMRS subscriber
counts to providers. 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”).17 The letter will include a listing of the carrier’s Operating Company Numbers (“OCNs”) upon
which the assessment is based.18 The letters will not include OCNs with their respective assigned number
counts, but rather, an aggregate total of assigned numbers for each carrier.
20.
A carrier wishing to revise its subscriber count can do so by accessing Fee Filer after
receiving its initial CMRS assessment letter. Providers should follow the prompts in Fee Filer to record
their subscriber revisions, along with any supporting documentation.19 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 to afford the
provider 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 our initial disapproval of the provider’s revised count submission, we expect the fee payment to
be based on the number of subscribers listed on the initial assessment letter. Once the timeframe for
revision has passed, the subscriber counts are final and are the basis upon which CMRS regulatory fees
are expected to be paid. Providers can also view their final subscriber counts online in Fee Filer. A final
CMRS assessment letter will not be mailed out.
21.
Because some carriers do not file the NRUF report, they may not receive an initial
assessment letter. In these instances, the carriers should compute their fee payment using the standard
methodology20 that is currently in place for CMRS Wireless services (e.g., compute their subscriber
counts as of December 31, 2011), 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

22.
Because the dollar amount that the Commission is required to collect could differ from
year to year, the revenue apportionment between submarine cable providers and terrestrial/satellite
facilities needs to be re-calculated each year based on an 87.4/12.6 percent allocation, respectively.21
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


17 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).
18 Id.
19 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.
20 See, e.g., Federal Communications Commission, Regulatory Fees Fact Sheet: What You Owe - Commercial
Wireless Services for FY 2011
at 1 (rel. September 2011).
21 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”).
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cable providers and terrestrial/satellite facilities, respectively.22 Each year, the Commission reserves the
right to revise this 87.4/12.6 allocation. For FY 2012, we do not find any basis to alter this 87.4/12.6
percent revenue allocation.

D.

Streamlined Regulatory Fee Payment Process

1.

Cable Television Subscribers

23.
The Commission 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.23 We will continue this practice in FY 2012. 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 2012, 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

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 worksheet 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, thereby eliminating processing issues. For FY 2012, we will continue to round
lines 14 and 16 when calculating the FY 2012 ITSP fee obligation. In addition, we will continue the
practice of not mailing out Form 159-W via surface mail.

E.

Payment of Regulatory Fees

1.

Lock Box Bank

26.
All lock box payments to the Commission for FY 2012 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://transition.fcc.gov/fees/regfees.html.
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.


22 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”).
23 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).
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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://transition.fcc.gov/fees/wiretran.html.
3.

De Minimis Regulatory Fees

28.
Regulatees whose total FY 2012 regulatory fee liability, including all categories of fees
for which payment is due, is less than $10 are exempted from payment of FY 2012 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, 2011 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, 2011. In instances where a permit or license is
transferred or assigned after October 1, 2011, 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, 2011. In instances where a permit or license is transferred or
assigned after October 1, 2011, 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.24
·
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, 2011. The number of subscribers, units, or telephone
numbers on December 31, 2011 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, 2011,
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 Attachment 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
multi-year wireless” licenses that will be renewed or newly obtained in FY 2012.
·
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


24 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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of December 31, 2011.25 Regulatory fees also must be paid for CARS licenses that were granted
on or before October 1, 2011. In instances where a permit or license is transferred or assigned
after October 1, 2011, 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, 2011. In instances where a permit or license is transferred or assigned after
October 1, 2011, 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,
2011. In instances where a license is transferred or assigned after October 1, 2011,
responsibility for payment rests with the holder of the license as of the fee due date. For
regulatory fee purposes, the allocation in FY 2012 will remain at 87.6 percent for submarine
cable and 12.4 percent for satellite/terrestrial facilities.
·
International Services: Terrestrial 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, 2011 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, 2011. Whether circuits are
used specifically for voice or data is not relevant for purposes of determining that they are active
circuits. In instances where a permit or license is transferred or assigned after October 1, 2011,
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 2012 will remain at 87.6 percent for submarine
cable and 12.4 percent for satellite/terrestrial facilities.

F.

Enforcement

30.
To be considered timely, regulatory fee payments must be received and stamped at the
lockbox bank by the due date of regulatory fees. 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.26 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 Commission’s Rules27 and in
the Debt Collection Improvement Act of 1996 (“DCIA”).28 We also assess administrative processing


25 Cable television system operators should compute their number of 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 2011, rather than on a count as
of December 31, 2011.
26 47 U.S.C. § 159(c).
27 See 47 C.F.R. § 1.1910.
28 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
(continued….)
10

Federal Communications Commission

FCC 12-48

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.29 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.30 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).

IV.

PROCEDURAL MATTERS

A.

Initial Regulatory Flexibility Analysis

32.
An initial regulatory flexibility analysis (“IRFA”) is contained in Attachment 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.

B.

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).

C.

Other Procedural Matters

1.

Ex Parte Presentations

34.
This is a “permit-but-disclose” proceeding subject to the requirements of the
Commission’s ex parte rules.31 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 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.32 Additional rules pertaining to oral and written
presentations are set forth in Section 1.1206(b) of the Commission’s rules.
2.

Filing Requirements

35.
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
(Continued from previous page)


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.
29 47 C.F.R. § 1.1940(d).
30 See 47 C.F.R. §§ 1.1161(c), 1.1164(f)(5), and 1.1910.
31 See 47 C.F.R. §§ 1.200 et seq.
32 See 47 C.F.R. § 1.1206(b)(2).
11

Federal Communications Commission

FCC 12-48

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).
36.
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.
37.
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).
38.
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.
39.
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.
12

Federal Communications Commission

FCC 12-48

V.

ORDERING CLAUSES

40.
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.
41.
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 Attachment E, to the Chief Counsel
for Advocacy of the U.S. Small Business Administration.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
13

Federal Communications Commission

FCC 12-48

ATTACHMENT A

Calculation of FY 2012 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 at the time the application is filed.

Fee Category

FY 2012

FY 2011

Pro-Rated Computed Rounded Expected

Payment Units Years

Revenue

FY 2012

New FY

New

FY 2012

Estimate

Revenue

2012

FY 2012

Revenue

Require-

Regulatory Regula-

ment

Fee

tory Fee
PLMRS (Exclusive
1,400
10
480,000
499,057
36
35
490,000
Use)
PLMRS (Shared
15,000
10
2,300,000
2,388,342
16
15
2,250,000
use)
Microwave
13,200
10
2,550,000
2,352,695
18
20
2,640,000
218-219 MHz
5
10
1,950
3,565
71
70
3,500
(Formerly IVDS)
Marine (Ship)
6,550 10
670,000
784,232
12
10
655,000
GMRS
7,700
5
232,500
285,175
7
5
192,500
Aviation (Aircraft)
2,900 10
460,000
356,469
12
10
290,000
Marine (Coast)
285 10
132,500
142,588
50
50
142,500
Aviation (Ground)
900 10
165,000
142,588
16
15
135,000
Amateur Vanity
14,300
10
207,320
213,881
1.50
1.50
214,500
Call Signs
AM Class A4a
63
1
257,400
249,528
3,961
3,950
248,850
AM Class B4b
1,472
1
3,057,875
3,101,280
2,107
2,100
3,091,200
AM Class C4c
879
1
1,078,650
1,105,054
1,257
1,250
1,098,750
AM Class D4d
1,546
1
3,642,325
3,671,631
2,375
2,375
3,671,750
FM Classes A, B1
3,055
1
7,629,300
7,729,024
2,530
2,525
7,713,875
& C34e
FM Classes B, C,
3,043
1
9,410,775
9,475,723
3,114
3,125
9,509,375
C0, C1 & C24f
AM Construction
65
1
44,100
35,647
548
550
35,750
Permits
FM Construction
120
1
101,925
84,000
700
700
84,000
Permits1
Satellite TV
132
1
166,250
178,234
1,350
1,350
178,200
Satellite TV
4
1
2,010
3,565
891
890
3,560
Construction Permit
VHF Markets 1-10
20
1
1,692,500
1,748,391
87,420
87,425
1,748,500
VHF Markets 11-25
25
1
1,772,550
1,823,318
72,933
72,925
1,823,125
VHF Markets 26-50
36
1
1,457,100
1,500,603
41,683
41,675
1,500,300
VHF Markets 51-
60
1
1,183,000
1,244,069
20,734
20,725
1,243,500
100
14

Federal Communications Commission

FCC 12-48

Fee Category

FY 2012

FY 2011

Pro-Rated Computed Rounded Expected

Payment Units Years

Revenue

FY 2012

New FY

New

FY 2012

Estimate

Revenue

2012

FY 2012

Revenue

Require-

Regulatory Regula-

ment

Fee

tory Fee
VHF Remaining
137
1
774,700
793,995
5,796
5,800
794,600
Markets
VHF Construction
2
1
12,200
11,600
5,800
5,800
11,600
Permits1
UHF Markets 1-10
111
1
3,915,450
3,845,518
34,644
34,650
3,846,150
UHF Markets 11-25
108
1
3,525,650
3,449,769
31,942
31,950
3,450,600
UHF Markets 26-50
135
1
3,016,800
2,952,606
21,871
21,875
2,953,125
UHF Markets 51-
227
1
2,933,350
2,863,357
12,614
12,625
2,865,875
100
UHF Remaining
247
1
864,600
845,762
3,424
3,425
845,975
Markets
UHF Construction
7
1
32,750
23,975
3,425
3,425
23,975
Permits1
Broadcast
24,800
1
268,500
285,175
11
10
248,000
Auxiliaries
LPTV/Translators/
3,712
1
1,424,765
1,425,876
384
385
1,429,120
Boosters/Class A
TV
CARS Stations
375
1
173,900
178,234
475
475
178,125
Cable TV Systems
62,200,000
1
58,962,000 58,995,618
0.9485
0.95
59,090,000
Interstate
$39,900,000,000
1
148,125,000 149,625,000
0.003750
0.00375 149,625,000
Telecommunication
Service Providers
CMRS Mobile
310,000,000
1
50,660,000 51,950,707
0.1676
0.17
52,700,000
Services
(Cellular/Public
Mobile)
CMRS Messag.
3,400,000
1
336,000
272,000
0.0800
0.080
272,000
Services
BRS2
950
1
523,900
451,250
475
475
451,250
LMDS
475
1
161,200
225,625
475
475
225,625
Per 64 kbps Int’l
3,250,853
1
1,136,518
1,149,256
.354
.35
1,137,799
Bearer Circuits
Terrestrial (Common)
& Satellite (Common
& Non-Common)
Submarine Cable
38.313
1
8,080,734
8,118,938
211,914
211,925
8,119,377
Providers (see chart
in Appendix C)3
Earth Stations
3,250
1
875,875
891,172
274
275
893,750
Space Stations
87
1
11,429,625 11,513,948
132,344
132,350
11,514,450
(Geostationary)
15

Federal Communications Commission

FCC 12-48

Fee Category

FY 2012

FY 2011

Pro-Rated Computed Rounded Expected

Payment Units Years

Revenue

FY 2012

New FY

New

FY 2012

Estimate

Revenue

2012

FY 2012

Revenue

Require-

Regulatory Regula-

ment

Fee

tory Fee
Space Stations
6
1
850,500
855,526
142,588
142,600
855,600
(Non-Geostationary
****** Total
336,599,047 339,843,566
340,495,730
Estimated Revenue
to be Collected
****** Total
335,794,000 339,844,000
339,844,000
Revenue
Requirement

805,048
(434)
651,730
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 C 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 2012 Regulatory Fee” constitute a weighted
average media regulatory fee by class of service. The actual FY 2012 regulatory fees for AM/FM radio station are
listed on a grid located at the end of Attachment B.
16

Federal Communications Commission

FCC 12-48

ATTACHMENT B

FY 2012 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 at the time the application is filed.

Annual

Fee Category

Regulatory Fee

(U.S. $'s)
PLMRS (per license) (Exclusive Use) (47 CFR part 90)
35
Microwave (per license) (47 CFR part 101)
20
218-219 MHz (Formerly Interactive Video Data Service) (per license) (47 CFR
70
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)
15
PLMRS (Shared Use) (per license) (47 CFR part 90)
15
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)
1.50
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and
.17
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
475
27)
Local Multipoint Distribution Service (per call sign) (47 CFR, part 101)
475
AM Radio Construction Permits
550
FM Radio Construction Permits
700
TV (47 CFR part 73) VHF Commercial
Markets 1-10
87,425
Markets 11-25
72,925
Markets 26-50
41,675
Markets 51-100
20,725
Remaining Markets
5,800
Construction Permits
5,800
17

Federal Communications Commission

FCC 12-48

Annual

Fee Category

Regulatory Fee

(U.S. $'s)
TV (47 CFR part 73) UHF Commercial
Markets 1-10
34,650
Markets 11-25
31,950
Markets 26-50
21,875
Markets 51-100
12,625
Remaining Markets
3,425
Construction Permits
3,425
Satellite Television Stations (All Markets)
1,350
Construction Permits – Satellite Television Stations
890
Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74)
385
Broadcast Auxiliaries (47 CFR part 74)
10
CARS (47 CFR part 78)
475
Cable Television Systems (per subscriber) (47 CFR part 76)
.95
Interstate Telecommunication Service Providers (per revenue dollar)
.00375
Earth Stations (47 CFR part 25)
275
Space Stations (per operational station in geostationary orbit) (47 CFR part 25)
also includes DBS Service (per operational station) (47 CFR part 100)
132,350
Space Stations (per operational system in non-geostationary orbit) (47 CFR part
142,600
25)
International Bearer Circuits - Terrestrial/Satellites (per 64KB circuit)
.35
International Bearer Circuits - Submarine Cable
See Table Below
18

Federal Communications Commission

FCC 12-48

FY 2012 SCHEDULE OF REGULATORY FEES (continued)

FY 2012 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
$725
$600
$550
$625
$700
$875
25,001 – 75,000
$1,475
$1,225
$850
$950
$1,425
$1,550
75,001 – 150,000
$2,200
$1,525
$1,125
$1,600
$1,950
$2,875
150,001 – 500,000
$3,300
$2,600
$1,675
$1,900
$3,025
$3,750
500,001 – 1,200,000
$4,775
$3,975
$2,800
$3,175
$4,800
$5,525
1,200,001 – 3,000,00
$7,350
$6,100
$4,200
$5,075
$7,800
$8,850
>3,000,000
$8,825
$7,325
$5,325
$6,350
$9,950
$11,500

FY 2012 SCHEDULE OF REGULATORY FEES

International Bearer Circuits - Submarine Cable

Submarine Cable Systems
Fee amount
Address
(capacity as of December 31, 2011)
< 2.5 Gbps
FCC, International, P.O. Box
$13,250
979084, St. Louis, MO 63197-
9000
2.5 Gbps or greater, but less
than 5 Gbps

FCC, International, P.O. Box
$26,500
979084, St. Louis, MO 63197-
9000
5 Gbps or greater, but less than
10 Gbps

FCC, International, P.O. Box
$52,975
979084, St. Louis, MO 63197-
9000
10 Gbps or greater, but less
than 20 Gbps

FCC, International, P.O. Box
$105,975
979084, St. Louis, MO 63197-
9000
20 Gbps or greater
FCC, International, P.O. Box
$211,925
979084, St. Louis, MO 63197-
9000
19

Federal Communications Commission

FCC 12-48

ATTACHMENT C

Sources of Payment Unit Estimates for FY 2012

In order to calculate individual service fees for FY 2012, we adjusted FY 2011 payment units for each
service to more accurately reflect expected FY 2012 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 2012
estimates with actual FY 2011 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 2012 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 2012 payment
units are based on FY 2011 actual payment units, it does not necessarily mean that our FY 2012 projection
is exactly the same number as in FY 2011. We have either rounded the FY 2012 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 11 payment data.
CMRS Messaging Services
Based on WTB reports, and FY 11 payment data.
AM/FM Radio Stations
Based on CDBS data, adjusted for exemptions, and actual FY 2011
payment units.
UHF/VHF Television Stations
Based on CDBS data, adjusted for exemptions, and actual FY 2011
payment units.
AM/FM/TV Construction Permits
Based on CDBS data, adjusted for exemptions, and actual FY 2011
payment units.
LPTV, Translators and Boosters,
Based on CDBS data, adjusted for exemptions, and actual FY 2011
Class A Television
payment units.
Broadcast Auxiliaries
Based on actual FY 2011 payment units.
BRS (formerly MDS/MMDS)
Based on WTB reports and actual FY 2011 payment units.
LMDS
Based on WTB reports and actual FY 2011 payment units.
20

Federal Communications Commission

FCC 12-48

Cable Television Relay Service
Based on data from Media Bureau’s COALS database and actual
(“CARS”) Stations
FY 2011 payment units.
Cable Television System
Based on publicly available data sources for estimated subscriber
Subscribers
counts and actual FY 2011 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 2012 FCC
Form 499-A worksheets in April, 2012.
Earth Stations
Based on International Bureau (“IB”) licensing data and actual FY
2011 payment units.
Space Stations (GSOs & NGSOs)
Based on IB data reports and actual FY 2011 payment units.
International Bearer Circuits
Based on IB reports and submissions by licensees.
Submarine Cable Licenses
Based on IB license information.
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ATTACHMENT D

Factors, Measurements, and Calculations That Determines 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.
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ATTACHMENT 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 $339,844,000,
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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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….)
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FCC 12-48

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 employees. Consequently,
(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.
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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 Serviceat 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 For the category of Wireless
Telecommunications Carriers (except Satellite), preliminary data for 2007 show that there was 11,927
firms operating that year.48 While the Census Bureau has not released data on the establishments broken
down by number of employees, we note that the Census Bureau lists total employment for all firms in that
sector at 281,262.49 Since all firms with fewer than 1,500 employees are considered small, given the total
employment in the sector, we estimate that the vast 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.”50 Since 2007, the Census
Bureau has placed wireless firms within this new, broad, economic census category.51 Prior to that time,
such firms were within the now-superseded categories of “Paging” and “Cellular and Other Wireless
Telecommunications.”52 Under the present and prior categories, the SBA has deemed a wireless business
to be small if it has 1,500 or fewer employees.53 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.54 Of this total, 804 firms had employment of 999 or fewer employees, and three firms had


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, 2007 Economic Census, Sector 51, EC0751I1 Information: Industry Series: Preliminary
Summary Statistics for the United States: 2007, NAICS code 517210 (issued Oct. 20, 2009),
factfinder.census.gov/servlet/IBQTable?-fds_name=EC0700A1&-_clearIBQ=Y&-ds_name=EC0751I1&-
NAICS2007=51721 (visited Mar. 2, 2011).
49 Id.
50 13 C.F.R. § 121.201, NAICS code 517212.
51 U.S. Census Bureau, 2007 NAICS Definitions, “517210 Wireless Telecommunications Categories (Except
Satellite)”; http://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
52
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.
53 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).
54 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).
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employment of 1,000 employees or more.55 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.56
Of this total, 1,378 firms had employment of 999 or fewer employees, and 19 firms had employment of
1,000 employees or more.57 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.58 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.59 The
SBA has approved this definition.60 An initial auction of Metropolitan Economic Area (“MEA”) licenses
was conducted in the year 2000. Of the 2,499 licenses auctioned, 985 were sold.61 Fifty-seven companies
claiming small business status won 440 licenses.62 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.63 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. 64
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
in the provision of “paging and messaging” services.65 Of these, an estimated 279 have 1,500 or fewer
employees and two have more than 1,500 employees.66 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,


55 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.”
56 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).
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 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).
59 Paging Second Report and Order, 12 FCC Rcd at 2811, ¶ 179.
60 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”).
61 See 929 and 931 MHz Paging Auction Closes,” Public Notice, 15 FCC Rcd 4858 (WTB 2000).
62 See id.
63 See Lower and Upper Paging Band Auction Closes,” Public Notice, 16 FCC Rcd 21821 (WTB 2002).
64 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.
65 “Trends in Telephone Service” at Table 5.3.
66 Id.
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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.67 The SBA approved
these definitions.68 The Commission conducted an auction of geographic area licenses in the WCS
service in 1997. In the auction, seven bidders that qualified as very small business entities won licenses,
and one bidder that qualified as a small business entity won a license.
27.
1670-1675 MHz Services. This service can be used for fixed and mobile uses,
except aeronautical mobile.69 An auction for one license in the 1670-1675 MHz band was conducted in
2003. 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).70
Under the SBA small business size standard, a business is small if it has 1,500 or fewer employees.71
According to Trends in Telephone Service data, 413 carriers reported that they were engaged in wireless
telephony.72 Of these, an estimated 261 have 1,500 or fewer employees and 152 have more than 1,500
employees.73 Therefore, more than half of these entities can be considered small.
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 initially defined a “small
business” for C- and F-Block licenses as an entity that has average gross revenues of $40 million or less
in the three previous years.74 For Block F licenses, 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 years.75 These small business size
standards, in the context of broadband PCS auctions, have been approved by the SBA.76 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 claimed small business status in the first two C Block
auctions.77 A total of 93 bidders that claimed “small” and “very small” business status won licenses in the


67 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).
68 See Alvarez Letter 1998.
69 47 C.F.R. § 2.106; see generally 47 C.F.R. §§ 27.1–.70.
70 13 C.F.R. § 121.201, NAICS code 517210.
71 Id.
72 “Trends in Telephone Service” at Table 5.3.
73 Id.
74 See Amendment of Parts 20 and 24 of the Commission’s Rules – Broadband PCS Competitive Bidding and the
Commercial Mobile Radio Service Spectrum Cap et al., Report and Order, 11 FCC Rcd 7824, 7850–52, ¶¶ 57–60
(1996) (“PCS Report and Order”); see also 47 C.F.R. § 24.720(b).
75 See PCS Report and Order, 11 FCC Rcd at 7852, para. 60.
76 See Alvarez Letter 1998.
77 See Entrepreneurs’ C Block Auction Closes, Public Notice, DA 96-716 (1996); Entrepreneurs C Block Reauction
Closes, Public Notice, DA 96-1153 (1996).
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first auction of the D, E, and F Blocks.78 In 1999, the Commission completed a subsequent auction of C,
D, E, and F Block licenses.79 Of the 57 winning bidders in that auction, 48 claimed small business status
and won 277 licenses. 80
30.
In 2001, the Commission completed the auction of 422 C and F Block Broadband
PCS licenses (Auction 35). Of the 35 winning bidders in that auction, 29 claimed small or very small
businesses status.81 Subsequent events concerning that Auction, including judicial and agency
determinations, resulted in only a portion of those C and F Block licenses being available for grant. The
Commission completed an auction of 188 C Block licenses and 21 F Block licenses in 2005. Of the 24
winning bidders in that auction, 16 claimed small business status and won 156 licenses. 82 In 2007, the
Commission completed an auction of licenses in the A, C, and F Blocks.83 Of the 12 winning bidders in
that auction, five claimed small business status and won 18 licenses.84 Most recently, in 2008, the
Commission completed the auction of C, D, E, and F Block Broadband PCS licenses.85 Of the eight
winning bidders for Broadband PCS licenses in that auction, six claimed small business status and won 14
licenses.86
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 66.87 For the AWS-1 bands, the Commission has defined a “small business” as an
entity with average annual gross revenues for the preceding three years not exceeding $40 million, and a
“very small business” as an entity with average annual gross revenues for the preceding three years not
exceeding $15 million.88 In Auction 66, 31 winning bidders identified themselves as very small


78 See Broadband PCS, D, E and F Block Auction Closes, Public Notice, Doc. No. 89838 (rel. Jan. 14, 1997).
79 See C, D, E, and F Block Broadband PCS Auction Closes, Public Notice, 14 FCC Rcd 6688 (1999). Before
Auction No. 22, the Commission established a very small standard for the C Block to match the standard used for F
Block. Amendment of the Commission’s Rules Regarding Installment Payment Financing for Personal
Communications Services (PCS) Licensees, WT Docket No. 97-82, Fourth Report and Order, 13 FCC Rcd 15,743,
15,768 ¶ 46 (1998).
80 See C, D, E, and F Block Broadband PCS Auction Closes, Public Notice, 14 FCC Rcd 6688 (1999).
81 See “C and F Block Broadband PCS Auction Closes; Winning Bidders Announced,” Public Notice, 16 FCC Rcd
2339 (2001).
82 See “Broadband PCS Spectrum Auction Closes; Winning Bidders Announced for Auction No. 58,” Public Notice,
20 FCC Rcd 3703 (2005).
83 See “Auction of Broadband PCS Spectrum Licenses Closes; Winning Bidders Announced for Auction No. 71,”
Public Notice, 22 FCC Rcd 9247 (2007).
84 Id.
85 See Auction of AWS-1 and Broadband PCS Licenses Closes; Winning Bidders Announced for Auction 78, Public
Notice
, 23 FCC Rcd 12,749 (2008).
86 Id.
87 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”);
88 See Service Rules for Advanced Wireless Services in the 1.7 GHz and 2.1 GHz Bands, Report and Order, 18 FCC
Rcd 25,162, App. B (2003), modified by Service Rules for Advanced Wireless Services In the 1.7 GHz and 2.1 GHz
Bands, Order on Reconsideration, 20 FCC Rcd 14,058, App. C (2005).
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businesses and won 142 licenses.89 Twenty-six of the winning bidders identified themselves as small
businesses and won 73 licenses.90 In a subsequent 2008 auction, the Commission offered 35 AWS-1
licenses.91 Four winning bidders identifying themselves as very small businesses won 17 licenses, and
three winning bidders identifying themselves as a small business won five AWS-1 licenses. 92
32.

Narrowband Personal Communications Services

. In 1994, the Commission
conducted two auctions of Narrowband PCS licenses. For these auctions, the Commission defined a
“small business” as an entity with average annual gross revenues for the preceding three years not
exceeding $40 million.93 Through these auctions, the Commission awarded a total of 41 licenses, 11 of
which were obtained by four small businesses.94 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.95 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.96 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.97 The
SBA has approved these small business size standards.98 A third auction of Narrowband PCS licenses
was conducted in 2001. In that auction, five bidders won 317 (Metropolitan Trading Areas and
nationwide) licenses.99 Three of the winning bidders claimed status as a small or very small entity and
won 311 licenses.
33.

Lower 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.100 The Commission defined a “small business” as an entity that,


89 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”)
90 See id.
91 See AWS-1 and Broadband PCS Procedures Public Notice, 23 FCC Rcd at 7499. Auction 78 also included an
auction of broadband PCS licenses.
92 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).
93 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).
94 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).
95 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”).
96 Narrowband PCS Second Report and Order, 15 FCC Rcd at 10476, para. 40.
97 Id.
98 See Alvarez Letter 1998.
99 See “Narrowband PCS Auction Closes,” Public Notice, 16 FCC Rcd 18663 (WTB 2001).
100 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”).
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together with its affiliates and controlling principals, has average gross revenues not exceeding $40
million for the preceding three years.101 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
the preceding three years.102 Additionally, the Lower 700 MHz Service had a third category of small
business status for Metropolitan/Rural Service Area (“MSA/RSA”) licenses —“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.103 The SBA approved these small size
standards.104 An auction of 740 licenses was conducted in 2002 (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 won by 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. 105 A second auction commenced on May 28, 2003, closed on June 13, 2003, and included 256
licenses.106 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.107 In 2005, the Commission
completed an auction of 5 licenses in the lower 700 MHz band (Auction 60). All three winning bidders
claimed small business status.
34.
In 2007, the Commission reexamined its rules governing the 700 MHz band in the
700 MHz Second Report and Order.108 An auction of A, B and E block licenses in the Lower 700 MHz
band was held in 2008.109 Twenty winning bidders claimed small business status (those with attributable
average annual gross revenues that exceed $15 million and do not exceed $40 million for the preceding
three years). Thirty three winning bidders claimed very small business status (those with attributable
average annual gross revenues that do not exceed $15 million for the preceding three years).
35.

Upper 700 MHz Band Licenses

. In the 700 MHz Second Report and Order, the
Commission revised its rules regarding Upper 700 MHz band licenses.110 In 2008, the Commission
conducted Auction 73 in which C and D block licenses in the Upper 700 MHz band were available.111


101 See Channels 52-59 Report and Order, 17 FCC Rcd at 1087-88, ¶ 172.
102 See id.
103 See id, 17 FCC Rcd at 1088, ¶ 173.
104 See Letter from Aida Alvarez, Administrator, SBA, to Thomas Sugrue, Chief, WTB, FCC (Aug. 10, 1999)
(“Alvarez Letter 1999”).
105 See “Lower 700 MHz Band Auction Closes,” Public Notice, 17 FCC Rcd 17272 (WTB 2002).
106 See Lower 700 MHz Band Auction Closes, Public Notice, 18 FCC Rcd 11,873 (WTB 2003).
107 See id.
108 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, 22 FCC Rcd 15289 (2007) (“700 MHz Second Report and Order”).
109 See Auction of 700 MHz Band Licenses Closes, Public Notice, 23 FCC Rcd 4572 (WTB 2008).
110 700 MHz Second Report and Order, 22 FCC Rcd 15,289.
111 See Auction of 700 MHz Band Licenses Closes, Public Notice, 23 FCC Rcd 4572 (2008).
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Three winning bidders claimed very small business status (those with attributable average annual gross
revenues that do not exceed $15 million for the preceding three years).
36.
700 MHz Guard Band Licenses. In 2000, the Commission adopted the 700 MHz
Guard Band Report and Order, in which it established rules for the A and B block licenses in the Upper
700 MHz band, including size standards for “small businesses” and “very small businesses” for purposes
of determining their eligibility for special provisions such as bidding credits.112 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.113 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.114 SBA approval of these definitions is not
required.115 An auction of these licenses was conducted in 2000.116 Of the 104 licenses auctioned, 96
licenses were won by nine bidders. Five of these bidders were small businesses that won a total of 26
licenses. A second auction of 700 MHz Guard Band licenses was held in 2001. All eight of the licenses
auctioned were sold to three bidders. One of these bidders was a small business.117
37.

Specialized Mobile Radio

. The Commission adopted small business size
standards for the purpose of determining eligibility for bidding credits in auctions of Specialized Mobile
Radio (SMR) geographic area licenses in the 800 MHz and 900 MHz bands. The Commission defined a
“small business” as an entity that, together with its affiliates and controlling principals, has average gross
revenues not exceeding $15 million for the preceding three years.118 The Commission defined a “very
small business” as an entity that together with its affiliates and controlling principals, has average gross
revenues not exceeding $3 million for the preceding three years.119 The SBA has approved these small
business size standards for both the 800 MHz and 900 MHz SMR Service.120 The first 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 licenses in the 900 MHz SMR band. In 2004, the Commission held a
second auction of 900 MHz SMR licenses and three winning bidders identifying themselves as very small
businesses won 7 licenses.121 The auction of 800 MHz SMR licenses for the upper 200 channels was
conducted in 1997. Ten bidders claiming that they qualified as small or very small businesses under the
$15 million size standard won 38 licenses for the upper 200 channels.122 A second auction of 800 MHz


112 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) (“700 MHz Guard Band Report and Order”).
113 See 700 MHz Guard Band Report and Order, 15 FCC Rcd at 5343, para. 108.
114 See id.
115 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).
116 See “700 MHz Guard Bands Auction Closes: Winning Bidders Announced,” Public Notice, 15 FCC Rcd 18026
(2000).
117 See “700 MHz Guard Bands Auction Closes: Winning Bidders Announced,” Public Notice, 16 FCC Rcd 4590
(WTB 2001).
118 47 C.F.R. §§ 90.810, 90.814(b), 90.912.
119 47 C.F.R. §§ 90.810, 90.814(b), 90.912.
120 See Alvarez Letter 1999.
121 See 900 MHz Specialized Mobile Radio Service Spectrum Auction Closes: Winning Bidders Announced,”
Public Notice, 19 FCC Rcd. 3921 (WTB 2004).
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).
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SMR licenses was conducted in 2002 and included 23 BEA licenses. One bidder claiming small business
status won five licenses.123
38.
The auction of the 1,053 800 MHz SMR licenses for the General Category
channels was conducted in 2000. Eleven bidders who won 108 licenses for the General Category
channels in the 800 MHz SMR band qualified as small or very small businesses .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 or very small business status
and won 129 licenses. Thus, combining all three auctions, 41 winning bidders for geographic licenses in
the 800 MHz SMR band claimed to be small businesses.
39.
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 not exceeding $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.
40.
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.
41.
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 small business size standards for defining “small” and “very small” businesses for the purpose of
determining their eligibility for special provisions such as bidding credits, which are discounts on a
winning bids.129 that the Commission defined a “small business” as an entity that, together with its
affiliates and controlling principals, has average gross revenues not exceeding $15 million for the
preceding three years.130 The Commission defined a “very small business” as an entity that, together with


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).
130 Id. at 11068, para. 291.
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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 The first auction of
Phase II licenses was conducted in 1998.133 In that 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 or very small businesses won 373 licenses in the first 220 MHz auction. A second auction in 1999
offered 225 licenses: 216 EA licenses and 9 EAG licenses. Fourteen companies claiming very 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 that identified themselves as very small businesses won 56
of the 76 licenses. One winning bidder that identified itself as a small business won 5 licenses.
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.140 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.141
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


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 13 C.F.R. § 121.201, NAICS code 517210.
141 See generally 13 C.F.R. § 121.201.
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potentially impact small entities covering a great variety of industries.
44.

Fixed Microwave Services

. Fixed microwave services include common carrier,142
private operational-fixed,143 and broadcast auxiliary radio services.144 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.145 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 adopted small business size standards for 39
GHz licenses. A “small business” is defined as an entity that, together with its affiliates and controlling
principals, has average gross revenues not exceeding $40 million in the preceding three years.146 A “very
small business” is defined as an entity that, together with its affiliates and controlling principals, has
average gross revenues of not more than $15 million for the preceding three years.147 The SBA has
approved these small business size standards.148 In 2000, the Commission conducted an auction of 2,173,
39 GHz licenses. A total of 18 bidders who claimed small or very 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.149 The Commission established small business size standards for LMDS licenses. It


142 See 47 C.F.R. §§ 101 et seq. for common carrier fixed microwave services (except Multipoint Distribution
Service).
143 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.
144 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.
145 13 C.F.R. § 121.201, NAICS code 517210.
146 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).
147 Id.
148 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).
149 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”).
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defined a “small business” as an entity that has average gross revenues of not more than $40 million in
the three preceding years and defined a “very small business” as an entity that, together with its affiliates,
has average gross revenues of not more than $15 million for the three preceding years.150 The SBA
approved these small business size standards for auctions of LMDS licenses.151 In 1998, an auction of
986 LMDS licenses was conducted. A total of 93 winning bidders that qualified as small or very small
businesses won approximately 664 licenses. In 1999, the Commission conducted an auction of 161
LMDS licenses. and in this auction, 32 small and very small businesses won 119 licenses.
47.
218-219 MHz Service. The first auction of 218-219 MHz Service (previously
referred to as the Interactive and Video Data Service or IVDS) licenses resulted in 178 entities winning
licenses for 594 Metropolitan Statistical Areas (“MSAs”).152 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.153 In the 218-219 MHz Report and Order and Memorandum Opinion and Order, the
Commission revised its small business size standards for the 218-219 MHz Service and 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.154 The Commission defined a very small business 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 not exceeding $3 million for the preceding three years.155 The SBA has approved these
definitions.156
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 auctions of
LMS licenses, the Commission has defined a “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.157 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.158
These definitions have been approved by the SBA.159 An auction of LMS licenses was conducted in
1999. Of the 528 licenses auctioned, 289 licenses were sold to four small businesses.


150 See LMDS Second Report and Order, 12 FCC Rcd at 12689-90, ¶ 348.
151 See Alvarez to Phythyon Letter 1998.
152 See Interactive Video and Data Service (IVDS) Applications Accepted for Filing,” Public Notice, 9 FCC Rcd
6227 (1994).
153 Implementation of Section 309(j) of the Communications Act – Competitive Bidding, Fourth Report and Order, 9
FCC Rcd 2330 (1994).
154 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).
155 Id.
156 See Alvarez to Phythyon Letter 1998.
157 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.
158 Automatic Vehicle Monitoring Systems Second Report and Order, 13 FCC Rcd at 15192, para. 20; see also 47
C.F.R. § 90.1103.
159 See Alvarez Letter 1998.
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49.

Rural Radiotelephone Service

. The Commission has not adopted a size standard
for small businesses specific to the Rural Radiotelephone Service.160 A significant subset of the Rural
Radiotelephone Service is the Basic Exchange Telephone Radio System (“BETRS”).161 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.162 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

.163 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.164 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.165 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 $15 million.166 These definitions were approved by the SBA.167 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.168 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.169 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


160 The service is defined in § 22.99 of the Commission’s Rules, 47 C.F.R. § 22.99.
161 BETRS is defined in §§ 22.757 and 22.759 of the Commission’s Rules, 47 C.F.R. §§ 22.757 and 22.759.
162 13 C.F.R. § 121.201, NAICS code 517210.
163 The service is defined in § 22.99 of the Commission’s Rules, 47 C.F.R. § 22.99.
164 13 C.F.R. § 121.201, NAICS codes 517210.
165 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).
166 Id.
167 See Letter from Hector V. Barreto, Administrator, SBA, to Gary D. Michaels, Deputy Chief, Auctions and
Spectrum Access Division, WTB, FCC (Sept. 19, 2005).
168 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).
169 13 C.F.R. § 121.201, NAICS code 517210.
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approximately 62,969 licensees that are small businesses under the SBA standard.170 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 VHF Public Coast licenses, 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 exceeding $15 million dollars. In addition, it
defined a “very small” business as one that, together with controlling interests and affiliates, has average
gross revenues for the preceding three years not exceeding $3 million dollars.171 The Commission also
made available Automated Maritime Telecommunications System (“AMTS”) licenses in Auctions 57 and
61.172 Winning bidders could claim status as a very small business or a very small business. For AMTS,
the Commission defined a very small business as an entity with attributed average annual gross revenues
that do not exceed $3 million for the preceding three years, and defined a small business as an entity with
attributed average annual gross revenues not exceeding $15 million for the preceding three years.173
Three of the winning bidders in Auction 57 qualified as small or very small businesses, and three winning
bidders 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.174 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
standard for Wireless Telecommunications Carriers (except Satellite) services.175 Under that SBA small
business size standard, a business is small if it has 1,500 or fewer employees.176
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 preceding three calendar years.177 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.178 The SBA has approved these
definitions.179 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


170 A licensee may have a license in more than one category.
171 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).
172 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).
173 47 C.F.R. § 80.1252.
174 This service is governed by Subpart I of Part 22 of the Commission’s Rules. See 47 C.F.R. §§ 22.1001-22.1037.
175 13 C.F.R. § 121.201, NAICS code 517210.
176 Id.
177 See Amendment of the Commission’s Rules Regarding Multiple Address Systems, Report and Order, 15 FCC Rcd
11956, 12008, ¶ 123 (2000).
178 Id.
179See Alvarez Letter 1999.
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that, as of March 5, 2010, there were over 11,500 MAS station authorizations. In 2001, an auction of
5,104 MAS licenses in 176 EAs was conducted in 2001.180 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.181 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 in the paired 1392-1395 MHz and 1432-1435 MHz bands, and in the unpaired 1390-1392
MHz band in 2007.182 For these licenses, the Commission defined “small business” as an entity that,
together with its affiliates and controlling interests, had average gross revenues not exceeding $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 $15 million for the preceding
three years.183 Neither of the two winning bidders claimed small business status.184
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.185 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, Teligent186 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.
57.

Future 24 GHz Licensees

. With respect to new applicants for licenses in the
24 GHz band, for the purpose of determining eligibility for bidding credits, the Commission established
three small business definitions. An “entrepreneur” is defined as an entity that, together with controlling
interests and affiliates, has average annual gross revenues for the three preceding years not exceeding $40


180 See Multiple Address Systems Spectrum Auction Closes,” Public Notice, 16 FCC Rcd 21011 (2001).
181 See 13 C.F.R. § 121.201, NAICS code 517210.
182 See Auction of 1.4 GHz Bands Licenses Scheduled for February 7, 2007,” Public Notice, 21 FCC Rcd 12393
(WTB 2006); “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”).
183 Auction No. 69 Closing PN, Attachment C.
184 See Auction No. 69 Closing PN.
185 13 C.F.R. § 121.201, NAICS code 517210.
186 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.
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million.187 A “small business” is defined as an entity that, together with controlling interests and
affiliates, has average annual gross revenues for the three preceding years not exceeding $15 million.188
A “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.189 The
SBA has approved these definitions.190 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, 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”)).191 Some BRS systems, known as “wireless cable”, transmit video programming to subscribers.
In connection with the 1996 BRS auction, the Commission established a size standard that defined a
“small business” as an entity that had annual average gross revenues of no more than $40 million in the
preceding three years.192 The BRS auctions resulted in 67 successful bidders obtaining licensing
opportunities for 493 Basic Trading Areas (“BTAs”). Of the 67 winning bidders, 61 met the definition of
a small business. At this time, we estimate that of the 61 small businesses that won BRS licenses in the
1996 auction, 48 remain small business licensees. BRS also includes licensees of stations authorized
prior to the 1996 auction. In addition to the 48 small businesses that hold BTA authorizations, there are
approximately 392 incumbent BRS licensees that are considered small entities.193 In 2008, the
Commission adopted three small business definitions for BRS, for the purpose of determining eligibility
for bidding credits. A “small business” is defined as an entity with attributed average annual gross
revenues that do not exceed $40 million for the preceding three years. A “very small business” is defined
as an entity with attributed average annual gross revenues that do not exceed $15 million for the
preceding three years. An “entrepreneur” is defined as an entity with attributed average annual gross
revenues that do not exceed $3 million for the preceding three years.194 In 2009, the Commission


187 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)(3).
18824 GHz Report and Order, 15 FCC Rcd at 16967 ¶ 77 ; see also 47 C.F.R. § 101.538(a)(2).
189 24 GHz Report and Order, 15 FCC Rcd at 16967 ¶ 77; see also 47 C.F.R. § 101.538(a)(1).
190 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).
191 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).
192 47 C.F.R. § 21.961(b)(1).
193 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.
194 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
,
WT Docket No. 03-66, Fourth Memorandum Opinion and Order and Second Further Notice of Proposed
Rulemaking, 23 FCC Rcd 5992, 6007 ¶ 28 (2008) (“BRS/EBS 4th MO&O & 2nd FNPRM”).
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conducted Auction 86, which offered 78 BRS licenses.195 Auction 86 concluded with the sale of 61
licenses.196 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. After adding the number of small
businesses that won licenses in the Commission’s BRS auctions to the approximately 392 incumbent BRS
licensees who are considered small entities, we estimate that there are currently approximately 445 BRS
licensees that are defined as small businesses under either the SBA or the Commission’s rules.
59.

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.”197 The SBA has created the following small business size standard for Television
Broadcasting firms: those having $14 million or less in annual receipts.198 The Commission has
estimated the number of licensed commercial television stations to be 1,387.199 In addition, according to
Commission staff review of the BIA Advisory Services, LLC’s Media Access Pro Television Database on
March 28, 2012, about 950 of an estimated 1,300 commercial television stations (or approximately 73
percent) had revenues of $14 million or less.200 We therefore estimate that the majority of commercial
television broadcasters are small entities.
60.
We note, however, that in assessing whether a business concern qualifies as small
under the above definition, business (control) affiliations201 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.
61.
In addition, the Commission has estimated the number of licensed noncommercial
educational (NCE) television stations to be 396.202 These stations are non-profit, and therefore
considered to be small entities.203


195 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).
196 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).
197 U.S. Census Bureau, 2007 NAICS Definitions, “515120 Television Broadcasting” (partial definition);
http://www.census.gov/naics/2007/def/ND515120.HTM#N515120.
198 13 C.F.R. § 121.201, NAICS code 515120 (updated for inflation in 2010).
199 See FCC News Release, “Broadcast Station Totals as of December 31, 2011,” dated January 6, 2012;
http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
200 We recognize that BIA’s estimate differs slightly from the FCC total given supra.
201 “[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).
202 See FCC News Release, “Broadcast Station Totals as of December 31, 2011,” dated January 6, 2012;
http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
203 See generally 5 U.S.C. §§ 601(4), (6).
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62.
In addition, there are also 2,528 low power television stations, including Class A
stations (LPTV).204 Given the nature of these services, we will presume that all LPTV licensees qualify
as small entities under the above SBA small business size standard.
63.

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.”205 The SBA has established a
small business size standard for this category, which is: such firms having $7 million or less in annual
receipts.206 According to Commission staff review of BIA Advisory Services, LLC’s Media Access Pro
Radio Database
on March 28, 2012, about 10,759 (97%) of 11,102 commercial radio stations had
revenues of $7 million or less. Therefore, the majority of such entities are small entities.
64.
We note, however, that in assessing whether a business concern qualifies as small
under the above size standard, business affiliations must be included.207 In addition, to be determined to
be a “small business,” the entity may not be dominant in its field of operation.208 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.
65.

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.209
66.
The Commission estimates that there are approximately 6,099 FM translators and
boosters.210 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. 211


204 See FCC News Release, “Broadcast Station Totals as of December 31, 2011,” dated January 6, 2012;
http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
205 U.S. Census Bureau, 2007 NAICS Definitions, “515112 Radio Stations”;
http://www.census.gov/naics/2007/def/ND515112.HTM#N515112.
206 13 C.F.R. § 121.201, NAICS code 515112 (updated for inflation in 2010).
207 “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).
208 13 C.F.R. § 121.102(b) (an SBA regulation).
209 13 C.F.R. 121.201, NAICS codes 515112 and 515120.
210 See supra note 294.
211 See 15 U.S.C. § 632.
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67.

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.
Transmission facilities may be based on a single technology or a combination of technologies.”212 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.213 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.214 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.215 Thus, the majority
of these firms can be considered small.
68.

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.216 Industry data indicate
that, of 1,076 cable operators nationwide, all but eleven are small under this size standard.217 In addition,
under the Commission’s rules, a “small system” is a cable system serving 15,000 or fewer subscribers.218
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.219 Thus, under this second size standard,
most cable systems are small.
69.

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.”220 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


212 U.S. Census Bureau, 2007 NAICS Definitions, “517110 Wired Telecommunications Carriers” (partial
definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
213 13 C.F.R. § 121.201, NAICS code 517110.
214 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).
215 Id. An additional 61 firms had annual receipts of $25 million or more.
216 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).
217 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.
218 47 C.F.R. § 76.901(c).
219 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.
220 47 U.S.C. § 543(m)(2); see 47 C.F.R. § 76.901(f) & nn. 1-3.
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revenues of all its affiliates, do not exceed $250 million in the aggregate.221 Industry data indicate that, of
1,076 cable operators nationwide, all but ten are small under this size standard.222 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,223 and therefore we are unable to estimate
more accurately the number of cable system operators that would qualify as small under this size
standard.
70.

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.224 The OVS framework provides opportunities for the
distribution of video programming other than through cable systems. Because OVS operators provide
subscription services,225 OVS falls within the SBA small business size standard covering cable services,
which is “Wired Telecommunications Carriers.”226 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.227 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.228 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.229 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.230 Broadband service providers (“BSPs”) are currently the only significant
holders of OVS certifications or local OVS franchises.231 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.


221 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).
222 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.
223 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).
224 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
”).
225 See 47 U.S.C. § 573.
226 U.S. Census Bureau, 2007 NAICS Definitions, “517110 Wired Telecommunications Carriers”;
http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
227 13 C.F.R. § 121.201, NAICS code 517110.
228 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).
229 Id. An additional 61 firms had annual receipts of $25 million or more.
230 A list of OVS certifications may be found at http://www.fcc.gov/mb/ovs/csovscer.html.
231 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.
46

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FCC 12-48

71.

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 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.”232 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.233 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.234 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.235 Thus, the majority
of these firms can be considered small.
72.

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 defines 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.236 These definitions were approved by the SBA.237 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.238 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.239


232 U.S. Census Bureau, 2007 NAICS Definitions, “517110 Wired Telecommunications Carriers” (partial
definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
233 13 C.F.R. § 121.201, NAICS code 517110.
234 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).
235 Id. An additional 61 firms had annual receipts of $25 million or more.
236 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).
237 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).
238 See Multichannel Video Distribution and Data Service Auction Closes,” Public Notice, 19 FCC Rcd 1834
(2004).
239 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).
47

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73.

Amateur Radio Service

. These licensees are held by individuals in a
noncommercial capacity; these licensees are not small entities.
74.

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 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.240 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 VHF Public Coast licenses, the Commission defines 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
defined as an entity that, together with controlling interests and affiliates, has average gross revenues for
the preceding three years not to exceed $3 million dollars.241 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.
75.

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.242
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”).243 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.244
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.


240 13 C.F.R. § 121.201, NAICS code 517210.
241 Amendment of the Commission’s Rules Concerning Maritime Communications, Third Report and Order and
Memorandum Opinion and Order, 13 FCC Rcd 19853 (1998).
242 47 C.F.R. Part 90.
243 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.
244 13 C.F.R. § 121.201, NAICS Code 517210.
48

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FCC 12-48

76.

Public Safety Radio Services

. Public Safety radio services include police, fire,
local government, forestry conservation, highway maintenance, and emergency medical services.245
There are a total of approximately 127,540 licensees in these services. Governmental entities246 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.247
77.

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,248 which has an SBA small business size
standard of 1,500 or fewer employees.249 The latter are within the category of All Other
Telecommunications,250 which has a size standard of annual receipts of $25 million or less.251 The most
current Census Bureau data for all such firms, however, are the 2002 data for the previous census
category called Internet Service Providers.252 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.253 Of those, 2,437 firms had annual receipts
of under $10 million, and an additional 47 firms had receipts of between $10 million and $24,999,999.254


245 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
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.
246 47 C.F.R. § 1.1162.
247 5 U.S.C. § 601(5).
248 U.S. Census Bureau, 2007 NAICS Definitions, “517110 Wired Telecommunications Carriers”,
http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
249 13 C.F.R. § 121.201, NAICS code 517110 (updated for inflation in 2008).
250 U.S. Census Bureau, 2007 NAICS Definitions, “517919 All Other Telecommunications”;
http://www.census.gov/naics/2007/def/ND517919.HTM#N517919.
251 13 C.F.R. § 121.201, NAICS code 517919 (updated for inflation in 2008).
252 U.S. Census Bureau, “2002 NAICS Definitions, “518111 Internet Service Providers”;
http://www.census.gov/eped/naics02/def/NDEF518.HTM.
253 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).
254 An additional 45 firms had receipts of $25 million or more.
49

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FCC 12-48

Consequently, we estimate that the majority of ISP firms are small entities.
78.
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
our action might affect, we discuss in turn several different types of entities that might be providing
Internet access service.
79.
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:

80.
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.255 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.
81.
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.
82.
Licensees and regulatees are advised that failure to submit the required regulatory


255 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.
50

Federal Communications Commission

FCC 12-48

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.256 If payment is not received, new or pending applications may be dismissed,
and existing authorizations may be subject to rescission.257 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.258 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.259
83.
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.260
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:

84.
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.261 In this NPRM, we seek 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.
85.
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:

86.
None.


256 47 C.F.R. § 1.1164.
257 47 C.F.R. § 1.1164(c).
258 Public Law 104-134, 110 Stat. 1321 (1996).
259 31 U.S.C. § 7701(c)(2)(B).
260 47 C.F.R. § 1.1166.
261 5 U.S.C. § 603.
51

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ATTACHMENT F

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)
20
PLMRS (Shared Use) (per license) (47 CFR part 90)
20
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
.17
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
52

Federal Communications Commission

FCC 12-48

Annual

Fee Category

Regulatory Fee

(U.S. $'s)
Construction Permits
6,100
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
670
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)
.00375
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)
.35
International Bearer Circuits - Submarine Cable
See Table Below
53

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FCC 12-48

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

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

$51,300
FCC, International, P.O. Box
979084, St. Louis, MO 63197-
9000
10 Gbps or greater, but less
than 20 Gbps

$102,625
FCC, International, P.O. Box
979084, St. Louis, MO 63197-
9000
20 Gbps or greater
$205,225
FCC, International, P.O. Box
979084, St. Louis, MO 63197-
9000
54

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