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^*8M[[x***[****[[[[[[[[[[**TjfbjXTjj1[fQmjbmbf_jbjbX***__*TTMTQ<TX..T.XTTT?M<XTTTD____5_____*_________.jTjTjTjTjTbMXQXQXQXQ1.1.1.1.mXjTjTjTjTjXjXjXjXbTjTjTjTjTbTjTbTjTj_jTbMbMb_b_jjXQ____XQjTj_j_j_j_j_j_1.____5_[__f_Q.QA__QCT1mXqmXm_jTj_b?b?b_fMfMfMf__D_<__j_jXj_j_jXjXb_XDXDXDj___m_f___b_j*__***WddddddddddddddddddddddddddddddddddddddddN_[[8TTT[[[MM[<<__[<**JJ[..[[tt___mff*J_<"___6_??t*_j[q_[*[j[m_tQq___****jmfqj_mX_XXjmt11f__qmj[jmtbmt{X_XbqjjjXj1_jbbm{**____jj___bbb*t_T?xWjrngg}}Wngg=W=W[Hz",tB^ f ^3D]nn333n3333nnnnnnnnnn33e{vje;n{avv{rvvj333rr3ee]eaHej77e7jeeeL]HjeeeRrrrr@rrrrr3rrrrrrrrr7eeeeev]jajajaja;7;7;7;7jeeeejjjjveedeeveeveerev]v]vrvrjarrrrjaerrrrrr;7rrrr@rnrr{ra7aNrraPe;jjrervLvLvr{]{]{]{rrRrHrrrjrrjjvrjRjRjRrrrr{rrrvr3rr333WddddddddddddddddddddddddddddddddddddddddNrnnDeeennn]]nHHrrnH33YYn77nnrrr{{3YrH"rrrArLL3rnrn3nnrarrr3333{rjrjj;;{rrnvjrjvj;rvv33rrrrrrrvvv3reLx)4i  II2{{ $i{{IiIi  nW<?xxx,ix6X@`7X@$* j7jC:,9Xj\  P6G;XP k7nC:,|Xn4  pG;Xwy.X80,X\  P6G;P ly.\80,T\4  pG;vW!@(#,h@\  P6G;hP)<R&HHH,>K,H6X@`7h@xH5!,i,5\  P6G;,P\}5hC:,-2Xh*f9 xr G;XX ?xxx,Dx `7X\y{,W80,-0W*f9 xr G;X6jC:,QXj9 xOG;XAPF,.\  P6G;P APF,\4  pG;<[*PPP,\MP6X@`7@a$G,',G\  P6G;Pa$I,',FI4  pG;:*,*\  P6G;PL7!,mw,72PG;,PM9!,ss,92pPG;,d!I,&,meI2PG;PfK,',sK2pPG;X@'!,mQ^@2PG;^PYB'",s^B2pPG;^?-,m-2PG;P^D*$,m0YwD2PG;wP<I,G6X@`7@&<n,6k6X@`7@n,D?k `7I,DAG `7<K,X6X@`7@ KdC,~pw7 ZxP,~G08pw78 0f?*,~N:fpw7:#" 9zL3,~ҭzpw7 G_?,~Wpw7W<^,6X@`7@%^,D's `7<X,׼6X@`7H@ }*Y8%,~vYpw7'^80,s^2pPG;W!B(#,~hB4  pG;h ?xxx,x6Nhez7XH2x X4  #Xj\  P6G;9XP#+ Before the`r(##]\  PCP#FCC 99146#o\  PC9XP# ă  X4[  FEDERAL COMMUNICATIONS COMMISSION  X'rWashington, D.C. 20554 ă  X4X` hp x (#%'0*,.8135@8:1,000,000 population$4,400  X"42.rrAM Class B rr  Xh$4rr<=20,000 population $325  XQ%4rr20,00150,000 population $650  X:&4rr50,001125,000 population $875  X#'4rr125,001400,000 population$1,400  X (4rr400,0011,000,000 population$2,250  X(4rr>1,000,000 population$3,600 ")2,**'0"Ԍ X4 H 3.rrAM Class C  X4rr<=20,000 population $225  X4rr20,00150,000 population $325  X4rr50,001125,000 population $450  Xv4rr125,001400,000 population $675  X_4rr400,0011,000,000 population$1,250  XH4rr>1,000,000 population$1,750  X 44.rrAM Class D  X 4rr<=20,000 population $275  X 4rr20,00150,000 population $450  X 4rr50,001125,000 population $675  X 4rr125,001400,000 population $825  X4rr400,0011,000,000 population$1,500  Xy4rr>1,000,000 population$2,250  XK45.rrAM Construction Permit $260  X46.rrFM Classes A, B1 and C3  X4rr<=20,000 population $325  X4rr20,00150,000 population $650  X4rr50,001125,000 population $875  X4rr125,001400,000 population$1,400  X4rr400,0011,000,000 population$2,250  X|4rr>1,000,000 population$3,600  XN47.rrFM Classes B, C, C1 and C2  X 4rr<=20,000 population $430  X 4rr20,00150,000 population $825  X4rr50,001125,000 population$1,350  X4rr125,001400,000 population$2,000  X 4rr400,0011,000,000 population$2,750  X!4rr>1,000,000 population$4,400  X#48.rrFM Construction Permits $780 "h$20*(("0"  X'   TV (47 CFR, Part 73)  X'VHF Commercial  X41.rrMarkets 1 thru 10$41,225XFCC, TV Branch  X42.rrMarkets 11 thru 25$34,325XP.O. Box 358835  X43.rrMarkets 26 thru 50$23,475XPittsburgh, PA  Xv44.rrMarkets 51 thru 100$13,150 X152515835  X_45.rrRemaining Markets$ 3,400  XH46.rrConstruction Permits$ 2,775  X ' UHF Commercial  X 41.rrMarkets 1 thru 10$15,550XFCC, UHF Commercial  X 42.rrMarkets 11 thru 25$11,775XP.O. Box 358835  X 43.rrMarkets 26 thru 50$ 7,300XPittsburgh, PA  X 44.rrMarkets 51 thru 100$ 4,350X152515835  X45.rrRemaining Markets$ 1,175X  Xy46.rrConstruction Permits$ 2,900  Xb'  XK'Satellite UHF/VHF Commercial  X41.rrAll Markets$1,300XFCC Satellite TV  X42.rrConstruction Permits$ 460XP.O. Box 358835 rrXPittsburgh, PA rrX152515835  X4 Low Power TV, TV/FM $ 290XFCC, Low Power  X4 Translator,& TV/FM Booster XP.O. Box 358835  X|4 (47 CFR, Part 74) XPittsburgh, PA rrX152515835  X74 Broadcast Auxiliary $ 12XFCC, Auxiliary rrXP.O. Box 358835 rrXPittsburgh, PA rrX152515835  X 4 Multipoint Distribution $ 285XFCC, Multipoint rrXP.O. Box 358835 rrXPittsburgh, PA rrX152515835 4. Sec. 1.1154 is revised to read as follows: ":&20*(($0"  X'  1.1154 Schedule of annual regulatory charges and filing locations for common carrier services.  X'   Radio FacilitiesFee AmountXAddress  X41.rrMicrowave (Domestic Public Fixed)$13XFCC, Common Carrier rrXP.O. Box 358130 rrXPittsburgh, PA rrX152515130  X ' Carriers  X 41.rrInterstate Telephone Service Providers$ .00121XFCC, Carriers  X 4rr(per dollar contributed to XP.O. Box 358835   X 4rrTRS Fund)XPittsburgh, PA  Xy45.rr Sec. 1.1155 is revised to read as follows:  X44  1.1155 Schedule of regulatory fees and filing locations for cable television services.  X'rrFee AmountXAddress  X41.rrCable Antenna Relay Service$55XFCC, Cable  X42.rrCable TV System$ .48XP.O. Box 358835  X4rr(per subscriber) XPittsburgh, PA rrX152515835 6. Section 1.1156 is revised to read as follows:  XN4 rr  X7'  1.1156 Schedule of regulatory fees and filing locations for international services.   X ' Radio FacilitiesFee AmountXAddress  X41.rrInternational (HF) $520XFCC, International  X 4rrBroadcastXP.O. Box 358835 rrXPittsburgh, PA rrX152515835  Xh$42.rrInternational Public $410XFCC, International  XQ%4rrFixedXP.O. Box 358835 rrXPittsburgh, PA rrX152515835"#'20*((,%0"Ԍ X4ԙ   Space Stations $130,550XFCC, Space Stations  X4 (Geostationary Orbit) XP.O. Box 358835 rrXPittsburgh, PA rrX152515835  X4 Space Stations $180,800XFCC, Space Stations  Xv4 (NonGeostationary Orbit) XP.O. Box 358835 rrXPittsburgh, PA rrX152515835  X 4 Earth Stations $180XFCC, Earth Station  X 4Transmit/Receive & XP.O. Box 358835  X 4Transmit Only (per authorization or registration)XPittsburgh, PA rrX152515835  X ' Carriers  X4  Xy41.rrInternational Bearer Circuits$ 7.00XFCC, International   Xb4rr(per active 64KBXP.O. Box 358835  XK4 rrcircuit or equivalent) XPittsburgh, PA  X44rrX152515835  X4 " 20*((b0"  X' H  `](#Attachment A ă  X'  FINAL REGULATORY FLEXIBILITY ANALYSIS Đl  X41. As required by the Regulatory Flexibility Act (RFA),3Xk[ yO'rr 5 U.S.C. 603. The RFA, 5 U.S.C. 601 et. seq.#]\  PCP#, has been amended by the Contract With America Advancement Act of 1996, Public Law No. 104121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA  yO'is the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).#x6X@KiX@# ñ an Initial Regulatory Flexibility  X4Analysis (IRFA) was incorporated in the Notice of Proposed Rulemaking, In the Matter of  Xv4Assessment and Collection of Regulatory Fees for Fiscal Year 1999, 64 FR 16661 (Apr. 6,  X_41999). The Commission sought written public comments on the proposals in its FY 1999  XH4regulatory fees NPRM, including on the IRFA. This present Final Regulatory Flexibility  X14Analysis (FRFA) conforms to the RFA, as amended.  X 4 I. Need for, and Objectives of, the Rules: 2. This rulemaking proceeding was initiated in order to collect regulatory fees in the amount of $172,523,000, the amount that Congress has required the Commission to recover through the collection of regulatory fees in FY 1999. The Commission seeks to collect the necessary amount through its revised regulatory fees, as contained in the attached Schedule of Regulatory Fees, in the most efficient manner possible and without undue burden on the public.  X4' II. Summary of Significant Issues Raised by Public Comments in Response to the  X'IRFA: 3. None.  X' III. Description and Estimate of the Number of Small Entities to which the Rules Will  X'Apply: 4. The RFA directs agencies to provide a description of and, where feasible, an estimate of  Xe4the number of small entities that may be affected by the proposed rules, if adopted.t4ek[ yO'rr#]\  PCP#  5 U.S.C. 603(b)(3). t The RFA generally defines the term "small entity" as having the same meaning as the terms "small  X74business," "small organization," and "small governmental jurisdiction."x57xk[ yO`#'rr#]\  PCP# Id. 601(6). x In addition, the term "small business" has the same meaning as the term "small business concern" under the Small  X 4 H Business Act.6  k[ yO&'rr#]\  PCP# 5 U.S.C. 601(3) (incorporating by reference the definition of "small business concern" in 15 U.S.C. 632). Pursuant to the RFA, the statutory definition of a small business applies "unless an agency, after consultation with the Office of Advocacy of the Small Business Administration and after opportunity for public comment, establishes one or more definitions of such term which are appropriate to the activities of the agency")5+**%)" and publishes such definition(s) in the Federal Register." 5 U.S.C. 601(3). A small business concern is one which: (1) is independently owned and" !X6+**0"  H operated; (2) is not dominant in its field of operation; and (3) satisfies any additional criteria  X4established by the Small Business Administration (SBA).7Xk[ yO'rr#]\  PCP# Small Business Act, 15 U.S.C. 632 (1996). A small organization is generally "any notforprofit enterprise which is independently owned and operated and is not dominant  X4in its field."t8k[ yOT'rr#]\  PCP# 5 U.S.C. 601(4). t Nationwide, as of 1992, there were approximately 275,801 small  X4organizations.9xk[ yO 'rr#]\  PCP# 1992 Economic Census, U.S. Bureau of the Census, Table 6 (special tabulation of data under contract to Office of Advocacy of the U.S. Small Business Administration). "Small governmental jurisdiction" generally means "governments of cities, counties, towns, townships, villages, school districts, or special districts, with a population of  Xv4less than 50,000."q:vk[ yO'rr#]\  PCP#  5 U.S.C. 601(5). q As of 1992, there were approximately 85,006 such jurisdictions in the  X_4United States.;_` k[ yOp'rr #]\  PCP# U.S. Dept. of Commerce, Bureau of the Census, "1992 Census of Governments." This number includes 38,978 counties, cities, and towns; of these, 37,566, or  XH496 percent, have populations of fewer than 50,000.i<H k[ yO'rr#]\  PCP# Id.i The Census Bureau estimates that this ratio is approximately accurate for all governmental entities. Thus, of the 85,006 governmental entities, we estimate that 81,600 (91 percent) are small entities. Below, we further describe and estimate the number of small entity licensees and regulatees that may be affected by the rules, herein adopted.  X ' CABLE SERVICES OR SYSTEMS 5. The SBA has developed a definition of small entities for cable and other pay television services, which includes all such companies generating $11 million or less in revenue  Xb4annually.~=b k[ yO'rr#]\  PCP#  13 CFR 121.201, SIC code 4841.~ This definition includes cable systems operators, closed circuit television services, direct broadcast satellite services, multipoint distribution systems, satellite master antenna systems and subscription television services. According to the Census Bureau data from 1992, there were 1,788 total cable and other pay television services and 1,423 had less than $11  X4million in revenue.6>k[ yO#'rr#]\  PCP#  1992 Economic Census Industry and Enterprise Receipts Size Report, Table 2D, SIC code 4841 (U.S. Bureau of the Census data under contract to the Office of Advocacy of the U.S. Small Business Administration). 6 6. The Commission has developed its own definition of a small cable system operator for purposes of rate regulation. Under the Commission's rules, a "small cable company" is one""h>+**0"  X4serving fewer than 400,000 subscribers nationwide.? k[ yOy'rr#]\  PCP#  47 CFR 76.901(e). The Commission developed this definition based on its determination that a small  yOA'cable system operator is one with annual revenues of $100 million or less. Implementation of Sections of the  yO '1992 Cable Act: Rate Regulation, Sixth Report and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393 (1995), 60 FR 10534 (Feb. 27, 1995).  Based on our most recent information, we estimate that there were 1,439 cable operators that qualified as small cable system  X4operators at the end of 1995.@k[ yO5'rr#]\  PCP#  Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 1996 (based on figures for Dec. 30, 1995). Since then, some of those companies may have grown, and others may have been involved in transactions that caused them to be combined with other cable operators. Consequently, we estimate that there are fewer than 1,439 small entity cable system operators. 7. The Communications Act also contains a definition of a small cable system operator, which is "a cable operator that, directly or through an affiliate, serves in the aggregate fewer than 1 percent of all subscribers in the United States and is not affiliated with any entity or  X 4entities whose gross annual revenues in the aggregate exceed $250,000,000."tA @k[ yO 'rr#]\  PCP#  47 U.S.C.543(m)(2).t The Commission has determined that there are 64,000,000 subscribers in the United States. Therefore, we found that an operator serving fewer than 617,000 subscribers shall be deemed a small operator, if its annual revenues, when combined with the total annual revenues of all  X 4of its affiliates, do not exceed $250 million in the aggregate.vB k[ yOA'rr#]\  PCP#  Id. 76.1403(b).v Based on available data, we  X 4find that the number of cable operators serving 617,000 subscribers or less totals 1,450.C ` k[ yO'rr#]\  PCP#  Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 1996 (based on figures for Dec. 30, 1995). We do not request nor do we collect information concerning whether cable system operators  X{4are affiliated with entities whose gross annual revenues exceed $250,000,000,DX{ k[ yO'rr#]\  PCP# We do receive such information on a casebycase basis only if a cable operator appeals a local franchise authority's finding that the operator does not qualify as a small cable operator pursuant to section  yO'76.1403(b) of the Commission's rules. See 47 CFR 76.1403(d). and thus are unable at this time to estimate with greater precision the number of cable system operators that would qualify as small cable operators under the definition in the Communications Act. It should be further noted that recent industry estimates project that there will be a total 64,000,000 subscribers, and we have based our fee revenue estimates on that figure.  X4 HH 8. Other Pay Services. Other pay television services are also classified under Standard Industrial Classification (SIC) 4841, which includes cable systems operators, closed circuit  X4television services, direct broadcast satellite services (DBS),Ek[ yO&'rr#]\  PCP#  Direct Broadcast Services (DBS) are discussed with the international services, infra. multipoint distribution systems  X4(MDS),Fk[ yO('rr#]\  PCP#  Multipoint Distribution Services (MDS) are discussed with the mass media services, infra. satellite master antenna systems (SMATV), and subscription television services."#0F+**0"Ԍ X' ÙCOMMON CARRIER SERVICES AND RELATED ENTITIES 9. The most reliable source of information regarding the total numbers of certain common carrier and related providers nationwide, as well as the number of commercial wireless  X4entities, appears to be data the Commission publishes in its Trends in Telephone Service  X4report.G yO'rr#]\  PCP#  FCC, Common Carrier Bureau, Industry Analysis Division, Trends in Telephone Service, Table 19.3 (February 19, 1999). According to data in the most recent report, there are 3,528 interstate carriers.kH  yO^ 'rr#]\  PCP#  Id. k  Xv4These carriers include, inter alia, local exchange carriers, wireline carriers and service  X_4providers, interexchange carriers, competitive access providers, operator service providers, pay  XH4telephone operators , providers of telephone toll service, providers of telephone exchange service, and resellers.  X 4  X 4 10. The SBA has defined establishments engaged in providing "Radiotelephone Communications" and "Telephone Communications, Except Radiotelephone" to be small  X 4businesses when they have no more than 1,500 employees.SI  yO6'rr#]\  PCP#  13 CFR121.201, Standard Industrial Classification (SIC) codes 4812 and 4813. See also Executive  yO'Office of the President, Office of Management and Budget, Standard Industrial Classification Manual (1987).S Below, we discuss the total estimated number of telephone companies falling within the two categories and the number of small businesses in each, and we then attempt to refine further those estimates to correspond with the categories of telephone companies that are commonly used under our rules. 11. Although some affected incumbent local exchange carriers (ILECs) may have 1,500 or fewer employees, we do not believe that such entities should be considered small entities within the meaning of the RFA because they are either dominant in their field of operations or are not independently owned and operated, and therefore by definition not "small entities" or "small business concerns" under the RFA. Accordingly, our use of the terms "small entities" and "small businesses" does not encompass small ILECs. Out of an abundance of caution, however, for regulatory flexibility analysis purposes, we will separately consider small ILECs within this analysis and use the term "small ILECs" to refer to any ILECs that  X4arguably might be defined by the SBA as "small business concerns."J  yOc 'rr#]\  PCP#  13 CFR 121.201, SIC code 4813. Since the time of the Commission's 1996 decision, Implementation  yO+!'of the Local Competition Provisions in the Telecommunications Act of 1996, First Report and Order, 11 FCC Rcd 15499, 1614445 (1996), 61 FR 45476 (Aug. 29, 1996), the Commission has consistently addressed in its regulatory flexibility analyses the impact of its rules on such ILECs.  X|4 H 12.  Total Number of Telephone Companies Affected. The U.S. Bureau of the Census ("Census Bureau") reports that, at the end of 1992, there were 3,497 firms engaged in  XN4providing telephone services, as defined therein, for at least one year.6KN  yO''rr#]\  PCP#  U.S. Department of Commerce, Bureau of the Census, 1992 Census of Transportation,  yO('Communications, and Utilities: Establishment and Firm Size, at Firm Size1-123 (1995) (1992 Census).6 This number contains a variety of different categories of carriers, including local exchange carriers, interexchange carriers, competitive access providers, cellular carriers, mobile service carriers, operator" $H Kx-++HHI0" service providers, pay telephone operators, covered specialized mobile radio providers, and resellers. It seems certain that some of these 3,497 telephone service firms may not qualify as  X4small entities or small ILECs because they are not "independently owned and operated."Lz yOK'rr#]\  PCP#  See generally 15 U.S.C. 632(a)(1). For example, a reseller that is affiliated with an interexchange carrier having more than 1,500 employees would not meet the definition of a small business. It is reasonable to conclude that fewer than 3,497 telephone service firms are small entity telephone service firms or small ILECs that may be affected by the rules, herein adopted.  XH413. Wireline Carriers and Service Providers. The SBA has developed a definition of small entities for telephone communications companies except radiotelephone (wireless) companies. The Census Bureau reports that there were 2,321 such telephone companies in  X 4operation for at least one year at the end of 1992.M Xz yO 'rr #]\  PCP# 1992 Census, supra, at Firm Size1-123. According to the SBA's definition, a small business telephone company other than a radiotelephone company is one employing no  X 4more than 1,500 persons.N z yOn'rr#]\  PCP#  13 CFR 121.201, SIC code 4813. All but 26 of the 2,321 nonradiotelephone companies listed by the Census Bureau were reported to have fewer than 1,000 employees. Thus, even if all 26 of those companies had more than 1,500 employees, there would still be 2,295 non-radiotelephone companies that might qualify as small entities or small ILECs. We do not have data specifying the number of these carriers that are not independently owned and operated, and thus are unable at this time to estimate with greater precision the number of wireline carriers and service providers that would qualify as small business concerns under the SBA's definition. Consequently, we estimate that fewer than 2,295 small telephone communications companies other than radiotelephone companies are small entities or small ILECs that may be affected by the rules, herein adopted.  X414. Local Exchange Carriers. Neither the Commission nor the SBA has developed a definition for small providers of local exchange services (LECs). The closest applicable definition under the SBA rules is for telephone communications companies other than  X4radiotelephone (wireless) companies.iOxz yO'rr#]\  PCP#  Id.i According to the most recent Telecommunications  X|4Industry Revenue data, 1,410 carriers reported that they were engaged in the provision of  Xe4local exchange services.Pez yO#'rr#]\  PCP#  Trends in Telephone Service, Table 19.3 (February 19, 1999). We do not have data specifying the number of these carriers that are either dominant in their field of operations, are not independently owned and operated, or have more than 1,500 employees, and thus are unable at this time to estimate with greater precision the number of LECs that would qualify as small business concerns under the SBA's definition. Consequently, we estimate that fewer than 1,410 providers of local exchange service are small entities or small ILECs that may be affected by the rules, herein adopted. "%P0*((70"Ԍ X4ԙ15. Interexchange Carriers . Neither the Commission nor the SBA has developed a definition of small entities specifically applicable to providers of interexchange services (IXCs). The closest applicable definition under the SBA rules is for telephone  X4communications companies other than radiotelephone (wireless) companies.~Qz yO4'rr#]\  PCP#  13 CFR 121.201, SIC code 4813.~ According to  X4the most recent Trends in Telephone Service data, 151 carriers reported that they were  X4engaged in the provision of interexchange services.RXz yO'rr#]\  PCP#  Trends in Telephone Service, Table 19.3 (February 19, 1999). We do not have data specifying the number of these carriers that are not independently owned and operated or have more than 1,500 employees, and thus are unable at this time to estimate with greater precision the number of IXCs that would qualify as small business concerns under the SBA's definition. Consequently, we estimate that there are fewer than 151 small entity IXCs that may be affected by the rules, herein adopted.  X 416.  Competitive Access Providers. Neither the Commission nor the SBA has developed a definition of small entities specifically applicable to competitive access services providers (CAPs). The closest applicable definition under the SBA rules is for telephone  X 4communications companies other than except radiotelephone (wireless) companies.~S z yO@'rr#]\  PCP#  13 CFR 121.201, SIC code 4813.~  X4According to the most recent Trends in Telephone Service data, 147 carriers reported that  Xy4they were engaged in the provision of competitive local exchange services.Tyxz yO'rr#]\  PCP#  Trends in Telephone Service, Table 19.3 (February 19, 1999). We do not have data specifying the number of these carriers that are not independently owned and operated, or have more than 1,500 employees, and thus are unable at this time to estimate with greater precision the number of CAPs that would qualify as small business concerns under the SBA's definition. Consequently, we estimate that there are fewer than 147 small entity CAPs that may be affected by the rules, herein adopted.  X4  17. Operator Service Providers. Neither the Commission nor the SBA has developed a definition of small entities specifically applicable to providers of operator services. The closest applicable definition under the SBA rules is for telephone communications companies  X4other than radiotelephone (wireless) companies.~Uz yOL!'rr#]\  PCP#  13 CFR 121.201, SIC code 4813.~ According to the most recent Trends in  X|4Telephone Service data, 32 carriers reported that they were engaged in the provision of  Xe4operator services.Vez yO$'rr#]\  PCP#  Trends in Telephone Service, Table 19.3 (February 19, 1999). We do not have data specifying the number of these carriers that are not independently owned and operated or have more than 1,500 employees, and thus are unable at this time to estimate with greater precision the number of operator service providers that would qualify as small business concerns under the SBA's definition. Consequently, we" &( V0*((0" estimate that there are fewer than 32 small entity operator service providers that may be affected by the rules, herein adopted.  X418. Pay Telephone Operators. Neither the Commission nor the SBA has developed a definition of small entities specifically applicable to pay telephone operators. The closest applicable definition under SBA rules is for telephone communications companies other than  Xv4radiotelephone (wireless) companies.~Wv: yO'rr#]\  PCP#  13 CFR 121.201, SIC code 4813.~ According to the most recent Trends in Telephone  X_4Service data, 509 carriers reported that they were engaged in the provision of pay telephone  XH4services.XHX: yOQ 'rr#]\  PCP#  Trends in Telephone Service, Table 19.3 (February 19, 1999). We do not have data specifying the number of these carriers that are not independently owned and operated or have more than 1,500 employees, and thus are unable at this time to estimate with greater precision the number of pay telephone operators that would qualify as small business concerns under the SBA's definition. Consequently, we estimate that there are fewer than 509 small entity pay telephone operators that may be affected by the rules, herein adopted.  X 419. Resellers (including debit card providers). Neither the Commission nor the SBA has developed a definition of small entities specifically applicable to resellers. The closest applicable SBA definition for a reseller is a telephone communications company other than  Xb4radiotelephone (wireless) companies.~Yb: yO'rr#]\  PCP#  13 CFR 121.201, SIC code 4813.~ According to the most recent Trends in Telephone  XK4Service data, 358 reported that they were engaged in the resale of telephone service.ZKx: yOt'rr#]\  PCP#  Trends in Telephone Service, Table 19.3 (February 19, 1999). We do not have data specifying the number of these carriers that are not independently owned and operated or have more than 1,500 employees, and thus are unable at this time to estimate with greater precision the number of resellers that would qualify as small business concerns under the SBA's definition. Consequently, we estimate that there are fewer than 358 small entity resellers that may be affected by the rules, herein adopted.  X4      X420. 800 and 800Like Service Subscribers. [: yOc 'rr#]\  PCP#  We include all tollfree number subscribers in this category, including 888 numbers. Neither the Commission nor the SBA has developed a definition of small entities specifically applicable to 800 and 800like service ("toll free") subscribers. The most reliable source of information regarding the number of these service subscribers appears to be data the Commission collects on the 800, 888, and 877  XN4numbers in use.\N: yO%'rr#]\  PCP#  FCC, CCB Industry Analysis Division, FCC Releases, Study on Telephone Trends, Tbls. 21.2, 21.3 and 21.4 (February 19, 1999). According to our most recent data, at the end of January 1999, the number of 800 numbers assigned was 7,692,955; the number of 888 numbers that had been assigned was 7,706,393; and the number of 877 numbers assigned was 1,946,538. We do not have" ' \ +))0" data specifying the number of these subscribers that are not independently owned and operated or have more than 1,500 employees, and thus are unable at this time to estimate with greater precision the number of toll free subscribers that would qualify as small business concerns under the SBA's definition. Consequently, we estimate that there are fewer than 7,692,955 small entity 800 subscribers, fewer than 7,706,393 small entity 888 subscribers, and fewer than 1,946,538 small entity 877 subscribers may be affected by the rules, herein adopted.  XH' INTERNATIONAL SERVICES  X 421. The Commission has not developed a definition of small entities applicable to licensees in the international services. Therefore, the applicable definition of small entity is generally the definition under the SBA rules applicable to Communications Services, Not Elsewhere  X 4Classified (NEC).] : yON'rr#]\  PCP#  An exception is the Direct Broadcast Satellite (DBS) Service, infra. This definition provides that a small entity is expressed as one with $11.0  X 4million or less in annual receipts.^ X: yO'rr#]\  PCP#  13 CFR 120.121, SIC code 4899.  According to the Census Bureau, there were a total of 848 communications services providers, NEC, in operation in 1992, and a total of 775 had  X4annual receipts of less than $9.999 million.6_: yO)'rr#]\  PCP#  1992 Economic Census Industry and Enterprise Receipts Size Report, Table 2D, SIC code 4899 (U.S. Bureau of the Census data under contract to the Office of Advocacy of the U.S. Small Business Administration). 6 The Census report does not provide more precise data.  XK422. International Broadcast Stations . Commission records show that there are 20  X44international broadcast station licensees. We do not request nor collect annual revenue information, and thus are unable to estimate the number of international broadcast licensees that would constitute a small business under the SBA definition. However, the Commission estimates that only six international broadcast stations are subject to regulatory fee payments.  X4  23. International Public Fixed Radio (Public and Control Stations) .  X4There are 3 licensees in this service subject to payment of regulatory fees. We do not request nor collect annual revenue information, and thus are unable to estimate the number of international broadcast licensees that would constitute a small business under the SBA definition.  X7424. Fixed Satellite Transmit/Receive Earth Stations. Based on actual payments from FY  X 41998, there are approximately 3,100 earth station authorizations, a portion of which are Fixed Satellite Transmit/Receive Earth Stations. We do not request nor collect annual revenue  X4information, and thus are unable to estimate the number of the earth stations that would constitute a small business under the SBA definition.  X!4    25. Fixed Satellite Small Transmit/Receive Earth Stations. There are 3,100 earth station"!(@_ +)) 0"  X4authorizations, a portion of which are Fixed Satellite Small Transmit/Receive Earth Stations. We do not request nor collect annual revenue information, and thus are unable to estimate the  X4number of fixed satellite transmit/receive earth stations that would constitute a small business under the SBA definition.  X426. Fixed Satellite Very Small Aperture Terminal (VSAT) Systems . These stations operate on a primary basis, and frequency coordination with terrestrial microwave systems is not required. Thus, a single "blanket" application may be filed for a specified number of small antennas and one or more hub stations. The Commission has processed 377 applications. We do not request nor collect annual revenue information, and thus are unable to estimate the number of VSAT systems that would constitute a small business under the SBA definition.  X 427. Mobile Satellite Earth Stations. There are 11 licensees. We do not request nor collect annual revenue information, and thus are unable to estimate the number of mobile satellite earth stations that would constitute a small business under the SBA definition.  X428. Radio Determination Satellite Earth Stations. There are four licensees. We do not request nor collect annual revenue information, and thus are unable to estimate the number of radio determination satellite earth stations that would constitute a small business under the SBA definition.  X429. Space Stations (Geostationary). Commission records reveal that there are 43 Geostationary Space Station licensees. We do not request nor collect annual revenue information, and thus are unable to estimate the number of geostationary space stations that would constitute a small business under the SBA definition.  X430. Space Stations (NonGeostationary). There are 12 NonGeostationary Space Station licensees, of which only two systems are operational. We do not request nor collect annual revenue information, and thus are unable to estimate the number of nongeostationary space stations that would constitute a small business under the SBA definition. "N)_,**'0"  X4    31. Direct Broadcast Satellites. Because DBS provides subscription services, DBS falls  X4within the SBArecognized definition of "Cable and Other Pay Television Services."~`z yOb'rr#]\  PCP#  13 CFR 120.121, SIC code 4841.~ This  X4definition provides that a small entity is one with $11.0 million or less in annual receipts.~aXz yO'rr#]\  PCP#  13 CFR 121.201, SIC code 4841.~ As of December 1996, there were eight DBS licensees. However, the Commission does not collect annual revenue data for DBS and, therefore, is unable to ascertain the number of small DBS licensees that would be impacted by these proposed rules. Although DBS service requires a great investment of capital for operation, there are several new entrants in this field that may not yet have generated $11 million in annual receipts, and therefore may be categorized as small businesses, if independently owned and operated.  X '   MASS MEDIA SERVICES  X 4  32. Commercial Radio and Television Services. The proposed rules and policies will apply  X 4to television broadcasting licensees and radio broadcasting licensees.b z yOn'rr#]\  PCP#  While we tentatively believe that the SBA's definition of "small business" greatly overstates the number of radio and television broadcast stations that are small businesses and is not suitable for purposes of  yO'determining the impact of the proposals on small television and radio stations, for purposes of this Notice we utilize the SBA's definition in determining the number of small businesses to which the proposed rules would apply. We reserve the right to adopt, in the future, a more suitable definition of "small business" as applied to  yOV'radio and television broadcast stations or other entities subject to the proposed rules in this Notice, and to consider further the issue of the number of small entities that are radio and television broadcasters or other small  yO'media entities.  See Report and Order in MM Docket No. 93-48 (Children's Television Programming), 11 FCC  yO'Rcd 10660, 1073738 (1996), 61 FR 43981 (Aug. 27, 1996), citing 5 U.S.C. 601(3). The SBA defines a television broadcasting station that has $10.5 million or less in annual receipts as a small  X 4business.~c z yO'rr#]\  PCP#  13 CFR 121.201, SIC code 4833.~ Television broadcasting stations consist of establishments primarily engaged in broadcasting visual programs by television to the public, except cable and other pay television  Xy4services.dXyH z yOr'rr#]\  PCP#  Economics and Statistics Administration, Bureau of Census, U.S. Department of Commerce, 1992  yO:'Census of Transportation, Communications and Utilities, Establishment and Firm Size, Series UC92S1,  yO 'Appendix A9 (1995) (1992 Census, Series UC92S1). Included in this industry are commercial, religious, educational, and other  Xb4television stations.exbhz yO{"'rr#]\  PCP#  Id.; see Executive Office of the President, Office of Management and Budget, Standard Industrial  yOC#'Classification Manual (1987), at 283, which describes "Television Broadcasting Stations" (SIC code 4833) as: rrEstablishments primarily engaged in broadcasting visual programs by television to the public, except cable and other pay television services. Included in this industry are commercial, religious, educational and other television stations. Also included here are establishments primarily engaged in television broadcasting and which produce taped television program materials.f!r Also included are establishments primarily engaged in television"b*e0*((g0"  X4broadcasting and which produce taped television program materials.fz yOy'rr#]\  PCP#  1992 Census, Series UC92S1, at Appendix A9. Separate establishments primarily engaged in producing taped television program materials are  X4classified under another SIC number.#gXz yO'rr#]\  PCP#  Id., SIC code 7812 (Motion Picture and Video Tape Production); SIC code 7922 (Theatrical Producers and Miscellaneous Theatrical Services) (producers of live radio and television programs). # There were 1,509 television stations operating in the  X4nation in 1992.hz yO 'rr#]\  PCP#  FCC News Release No. 31327 (Jan. 13, 1993); 1992 Census, Series UC92S1, at Appendix A9. That number has remained fairly constant as indicated by the approximately 1,564 operating television broadcasting stations in the nation as of December  X431, 1997.i@z yO~ 'rr#]\  PCP#  FCC News Release, "Broadcast Station Totals as of Dec. 31, 1997." For 1992,Ejz yO'rr#]\  PCP#  A census to determine the estimated number of Communications establishments is performed every  {O'five years, in years ending with a "2" or "7." See 1992 Census, Series UC92S1, at III. E the number of television stations that produced less than $10.0  Xv4million in revenue was 1,155 establishments.kXv* z yOQ'rr#]\  PCP#  The amount of $10 million was used to estimate the number of small business establishments because the relevant Census categories stopped at $9,999,999 and began at $10,000,000. No category for $10.5 million existed. Thus, the number is as accurate as it is possible to calculate with the available information. Only commercial stations are subject to regulatory fees.   33. Additionally, the Small Business Administration defines a radio broadcasting station that  X 4has $5 million or less in annual receipts as a small business.~l J z yO'rr#]\  PCP#  13 CFR 121.201, SIC code 4832.~ A radio broadcasting station is  X 4an establishment primarily engaged in broadcasting aural programs by radio to the public.m z yO'rr#]\  PCP#  1992 Census, Series UC92S1, at Appendix A9. ġ  X 4Included in this industry are commercial, religious, educational, and other radio stations.in jz yO'rr#]\  PCP#  Id.i Radio broadcasting stations which primarily are engaged in radio broadcasting and which  X 4produce radio program materials are similarly included.io z yOi 'rr#]\  PCP#  Id.i However, radio stations which are separate establishments and are primarily engaged in producing radio program material are  X4classified under another SIC number.ipz yO#'rr#]\  PCP#  Id.i The 1992 Census indicates that 96 percent (5,861 of  Xy46,127) radio station establishments produced less than $5 million in revenue in 1992.qyz yOD&'rr#]\  PCP#  The Census Bureau counts radio stations located at the same facility as one establishment. Therefore, each colocated AM/FM combination counts as one establishment.  "y+rq0*((30"   Official Commission records indicate that 11,334 individual radio stations were operating in  X41992.rz yOb'rr#]\  PCP#  FCC News Release, No. 31327 (Jan. 13, 1993). As of December 31, 1997, Commission records indicate that 12,270 radio stations  X4were operating, of which 7,465 were FM stations.sXz yO'rr#]\  PCP#  FCC News Release, "Broadcast Station Totals as of December 31, 1997." Only commercial stations are subject to  X4regulatory fees.  X4  34. Thus, the rules may affect approximately 1,558 full power television stations,  Xv4approximately 1,200 of which are considered small businesses.'tvz yO 'rr#]\  PCP#  We use the 77 percent figure of TV stations operating at less than $10 million for 1992 and apply it to the 1997 total of 1558 TV stations to arrive at 1,200 stations categorized as small businesses.' Additionally, the proposed rules will affect some 12,156 full power radio stations, approximately 11,670 of which are  XH4small businesses.>uXH@z yO9'rr#]\  PCP#  We use the 96% figure of radio station establishments with less than $5 million revenue from the Census data and apply it to the 12,088 individual station count to arrive at 11,605 individual stations as small businesses. > These estimates may overstate the number of small entities because the revenue figures on which they are based do not include or aggregate revenues from non-television or non-radio affiliated companies. There are also 1,952 low power television  X 4stations (LPTV).v ` z yO'rr#]\  PCP#  FCC News Release, No. 7033 (Mar. 6, 1997). Given the nature of this service, we will presume that all LPTV licensees qualify as small entities under the SBA definition.  X ' Alternative Classification of Small Stations 35. An alternative way to classify small radio and television stations is by number of employees. The Commission currently applies a standard based on the number of employees  Xb4in administering its Equal Employment Opportunity Rule (EEO) for broadcasting.Zwxb z yO'rr#]\  PCP#  The Commission's definition of a small broadcast station for purposes of applying its EEO rules was adopted prior to the requirement of approval by the SBA pursuant to section 3(a) of the Small Business Act, 15 U.S.C. 632(a), as amended by section 222 of the Small Business Credit and Business Opportunity Enhancement Act of 1992, Public Law 102366, 222(b)(1), 106 Stat. 999 (1992), as further amended by the Small Business Administration Reauthorization and Amendments Act of 1994, Public Law 103403, 301, 108 Stat. 4187 (1994).  yO 'However, this definition was adopted after public notice and the opportunity for comment. See Report and  yO!'Order in Docket No. 18244, 23 FCC 2d 430 (1970), 35 FR 8925 (Jun. 6, 1970).Z Thus, radio or television stations with fewer than five fulltime employees are exempted from  X44certain EEO reporting and record keeping requirements.x 40z yO%'rr#]\  PCP#   See, e.g., 47 CFR 73.3612 (Requirement to file annual employment reports on Form 395 applies to  yO%'licensees with five or more fulltime employees); First Report and 0rder in Docket No.21474 (Amendment of  yO&'Broadcast Equal Employment Opportunity Rules and FCC Form 395), 70 FCC 2d 1466 (1979), 50 FR 50329 (Dec. 10, 1985). The Commission is currently considering how to decrease the administrative burdens imposed"m'w0*((x'"  yO'by the EEO rule on small stations while maintaining the effectiveness of our broadcast EEO enforcement.  Order and Notice of Proposed Rule Making in MM Docket No. 9616 (Streamlining Broadcast EEO Rule and Policies, Vacating the EEO Forfeiture Policy Statement and Amending Section 1.80 of the Commission's Rules to Include  yO'EEO Forfeiture Guidelines), 11 FCC Rcd 5154 (1996), 61 FR 9964 (Mar. 12, 1996). One option under consideration is whether to define a small station for purposes of affording such relief as one with ten or fewer fulltime employees.  We estimate that the total number"4,@x0*((.0"  X4of broadcast stations with 4 or fewer employees is approximately 4,239.y@z yO'rr#]\  PCP#  Compilation of 1994 Broadcast Station Annual Employment Reports (FCC Form B), Equal Opportunity Employment Branch, Mass Media Bureau, FCC.  X' Auxiliary, Special Broadcast and other program distribution services 36. 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.   Therefore, the applicable definitions of small entities are those, noted previously, under the  X14SBA rules applicable to radio broadcasting stations and television broadcasting stations.z1z yOz'rr#]\  PCP#  13 CFR 121.201, SIC code 4832.   X 437. There are currently 2,720 FM translators and boosters, and 4,952 TV translators.{ ( z yO'rr#]\  PCP#  FCC News Release, Broadcast Station Totals as of December 31, 1996, No. 71831 (Jan. 21, 1997). The FCC 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, however, that most, if not all, of these auxiliary facilities could be classified as small businesses by themselves. We also recognize that most translators and boosters are owned by a parent station which, in some cases, would be covered by the revenue definition of small business entity discussed above. These stations would likely have annual revenues that exceed the SBA maximum to be designated as a small business (either $5 million for a radio station or $10.5 million for a TV station). Furthermore, they do not meet the Small Business Act's definition of a "small business concern" because they are not independently owned and  X4operated. n| z yO 'rr#]\  PCP#  15 U.S.C. 632.n  X438. Multipoint Distribution Service (MDS) . This service involves a variety of transmitters, which are used to relay programming to the home or office, similar to that provided by cable  X4television systems.}H z yO%'rr#]\  PCP#  For purposes of this item, MDS includes both the single channel Multipoint Distribution Service (MDS) and the Multichannel Multipoint Distribution Service (MMDS).  In connection with the 1996 MDS auction, the Commission defined  X4small businesses as entities that had annual average gross revenues for the three preceding"-}0*((B0"  X4years not in excess of $40 million.u~z yOy'rr#]\  PCP#  47 CFR 1.2110 (a)(1).u This definition of a small entity in the context of MDS  X4auctions has been approved by the SBA. Xz yO'rr#]\  PCP#  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  yO'309(j) of the Communications Act Competitive Bidding, 10 FCC Rcd 9589 (1995), 60 FR 36524 (Jul. 17, 1995). These stations were licensed prior to  X4implementation of Section 309(j) of the Communications Act of 1934, as amended.r@z yO 'rr#X\  P6G;P#  47 U.S.C. 309(j). r Licenses for new MDS facilities are now awarded to auction winners in Basic Trading Areas  X4(BTAs) and BTAlike areas.Nz yO% 'rr#]\  PCP#  Id. A Basic Trading Area (BTA) is the geographic area by which the Multipoint Distribution Service  yO 'is licensed.  See Rand McNally 1992 Commercial Atlas and Marketing Guide, 123rd Edition, pp. 3639. N The MDS auctions resulted in 67 successful bidders obtaining licensing opportunities for 493 BTAs. Of the 67 auction winners, 61 meet the definition of a small business. There are 1,573 previously authorized and proposed MDS stations currently licensed. Thus, we conclude that there are 1,634 MDS providers that are small businesses as deemed by the SBA and the Commission's auction rules. It is estimated, however, that only 1,650 MDS licensees are subject to regulatory fees, and the number which are small businesses is unknown.  X ' WIRELESS AND COMMERCIAL MOBILE SERVICES  X 439. Cellular Licensees . Neither the Commission nor the SBA has developed a definition of small entities applicable to cellular licensees. Therefore, the applicable definition of small entity is the definition under the SBA rules applicable to radiotelephone (wireless) companies. This provides that a small entity is a radiotelephone company employing no more than 1,500  Xb4persons.b( z yO;'rr#]\  PCP#  13 CFR 121.201, SIC code 4812. According to the Bureau of the Census, only twelve radiotelephone firms from a  XK4total of 1,178 such firms which operated during 1992 had 1,000 or more employees.K z yO'rr#]\  PCP# 1992 Census, Series UC92S1, at Table 5, SIC code 4812. Therefore, even if all twelve of these firms were cellular telephone companies, nearly all cellular carriers were small businesses under the SBA's definition. In addition, we note that there are 1,758 cellular licenses; however, a cellular licensee may own several licenses. In  X4addition, according to the most recent Telecommunications Industry Revenue data, 732 carriers reported that they were engaged in the provision of either cellular service or Personal  X4Communications Service (PCS) services, which are placed together in the data.H z yO%'rr#]\  PCP#  Trends in Telephone Service, Table 19.3 (February 19, 1999). We do not have data specifying the number of these carriers that are not independently owned and operated or have more than 1,500 employees, and thus are unable at this time to estimate with".0*((m0" greater precision the number of cellular service carriers that would qualify as small business concerns under the SBA's definition. Consequently, we estimate that there are fewer than 732 small cellular service carriers that may be affected by the rules, herein adopted.  X440. 220 MHz Radio Service Phase I Licensees. The 220 MHz service has both PhaseI and PhaseII licenses. Phase I licensing was conducted by lotteries in 1992 and 1993. There are approximately 1,515 such non-nationwide licensees and four nationwide licensees currently authorized to operate in the 220 MHz band. The Commission has not developed a definition of small entities specifically applicable to such incumbent 220 MHZ Phase I licensees. To estimate the number of such licensees that are small businesses, we apply the definition under the SBA rules applicable to Radiotelephone Communications companies. This definition provides that a small entity is a radiotelephone company employing no more  X 4than 1,500 persons. z yOe 'rr#]\  PCP#  13 C.F.R.  121.201, Standard Industrial Classification (SIC) code 4812. According to the Bureau of the Census, only 12 radiotelephone firms out of a total of 1,178 such firms which operated during 1992 had 1,000 or more  X 4employees.X  Xz yO'rr#]\  PCP#  U.S. Bureau of the Census, U.S. Department of Commerce, 1992 Census of Transportation, Communications, and Utilities, UC92-S-1, Subject Series, Establishment and Firm Size, Table 5, Employment Size of Firms; 1992, SIC code 4812 (issued May 1995). X Therefore, if this general ratio continues in 1999 in the context of PhaseI 220 MHz licensees, we estimate that nearly all such licensees are small businesses under the SBA's definition.  Xb441. 220 MHz Radio Service PhaseII Licensees. The PhaseII 220 MHz service is a new  XK4service, and is subject to spectrum auctions. In the 220 MHz Third Report and Order, we adopted criteria for defining small businesses and very small businesses for purposes of determining their eligibility for special provisions such as bidding credits and installment  X4payments.@z yO'rr#]\  PCP# 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-70, at paras. 291- 295 (1997). We have defined a small business as an entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding $15 million for the preceding three years. Additionally, a very small business is defined as an entity that, together with its affiliates and controlling principals, has average gross revenues that are not  X4more than $3 million for the preceding three years.z yO+!'rr#]\  PCP#  220 MHz Third Report and Order, 12 FCC Rcd at 11068-69, para. 291. The SBA has approved these  X4definitions.` z {O#'rr#]\  PCP#  See Letter from A. Alvarez, Administrator, SBA, to D. Phythyon, Chief, Wireless Telecommunications Bureau, FCC (Jan. 6, 1998). An auction of Phase II licenses commenced on September 15, 1998, and closed  X|4on October 22, 1998.| z {O&'rr#]\  PCP# See generally Public Notice, "220 MHz Service Auction Closes," Report No. WT 98-36 (Wireless Telecom. Bur. Oct. 23, 1998). Nine hundred and eight (908) licenses were auctioned in 3 "|/0*(( 0"   different-sized geographic areas: three nationwide licenses, 30 Regional Economic Area Group Licenses, and 875 Economic Area (EA) Licenses. Of the 908 licenses auctioned, 693 were sold. Companies claiming small business status won: one of the Nationwide licenses, 67% of the Regional licenses, and 54% of the EA licenses. As of January 22, 1999, the Commission announced that it was prepared to grant 654 of the Phase II licenses won at  X4auction.: yO'rr#]\  PCP# Public Notice, "FCC Announces It is Prepared to Grant 654 Phase II 220 MHz Licenses After Final Payment is Made," Report No. AUC18H, DA No. 99229 (Wireless Telecom. Bur. Jan. 22, 1999). A reauction of the remaining, unsold licenses is likely to take place during calendar year 1999.  XH442. Private and Common Carrier Paging. The Commission has proposed a twotier definition of small businesses in the context of auctioning licenses in the Common Carrier Paging and exclusive Private Carrier Paging services. Under the proposal, a small business will be defined as either (1) an entity that, together with its affiliates and controlling principals, has average gross revenues for the three preceding years of not more than $3 million, or (2) an entity that, together with affiliates and controlling principals, has average gross revenues for the three preceding calendar years of not more than $15 million. Because the SBA has not yet approved this definition for paging services, we will utilize the SBA's  X4definition applicable to radiotelephone companies, i.e., an entity employing no more than  Xy41,500 persons.~y : yOJ'rr#]\  PCP#  13 CFR 121.201, SIC code 4812.~ At present, there are approximately 24,000 Private Paging licenses and  Xb474,000 Common Carrier Paging licenses. According to the most recent Telecommunications  XK4Industry Revenue data, 137 carriers reported that they were engaged in the provision of either  X44paging or "other mobile" services, which are placed together in the data.4: yO'rr#]\  PCP#  Trends in Telephone Service, Table 19.3 (February 19, 1999). We do not have data specifying the number of these carriers that are not independently owned and operated or have more than 1,500 employees, and thus are unable at this time to estimate with greater precision the number of paging carriers that would qualify as small business concerns under the SBA's definition. Consequently, we estimate that there are fewer than 137 small paging carriers that may be affected by the proposed rules, if adopted. We estimate that the majority of private and common carrier paging providers would qualify as small entities under the SBA definition.  Xe443. Mobile Service Carriers. Neither the Commission nor the SBA has developed a definition of small entities specifically applicable to mobile service carriers, such as paging companies. As noted above in the section concerning paging service carriers, the closest  X 4applicable definition under the SBA rules is that for radiotelephone (wireless) companies,~ @: yO%'rr#]\  PCP#  13 CFR 121.201, SIC code 4812.~  X 4and the most recent Telecommunications Industry Revenue data shows that 23 carriers reported that they were engaged in the provision of SMR dispatching and "other mobile""0 +))0"  X4services.: yOy'rr#]\  PCP#  Trends in Telephone Service, Table 19.3 (February 19, 1999).   Consequently, we estimate that there are fewer than 23 small mobile service carriers that may be affected by the rules, herein adopted.  X444. Broadband  Personal Communications Service (PCS). The broadband PCS spectrum is divided into six frequency blocks designated A through F, and the Commission has held auctions for each block. The Commission defined "small entity'' for Blocks C and F as an entity that has average gross revenues of less than $40 million in the three previous calendar  X_4years.X_X: yOh 'rr#]\  PCP#  See Amendment of Parts 20 and 24 of the Commission's Rules Broadband PCS Competitive  yO0 'Bidding and the Commercial Mobile Radio Service Spectrum Cap, Report and Order, FCC 96278, WT Docket  yO 'No. 9659, paras. 57 60 (released Jun. 24, 1996), 61 FR 33859 (Jul. 1, 1996); see also 47 CFR 24.720(b). For Block F, an additional classification for "very small business" was added and is defined as an entity that, together with their affiliates, has average gross revenues of not more  X14than $15 million for the preceding three calendar years.X1x: yOZ'rr#]\  PCP#  See Amendment of Parts 20 and 24 of the Commission's Rules Broadband PCS Competitive  yO"'Bidding and the Commercial Mobile Radio Service Spectrum Cap, Report and Order, FCC 96278, WT Docket  yO'No. 9659, para. 60 (1996), 61 FR 33859 (Jul. 1, 1996). These regulations defining "small  X 4entity'' in the context of broadband PCS auctions have been approved by the SBA.1 : yOc'rr#]\  PCP#  See, e.g., Implementation of Section 309(j) of the Communications Act Competitive Bidding,  yO+'PPDocket No.93253, Fifth Report and Order, 9 FCC Rcd 5532, 558184 (1994).1 No small businesses within the SBAapproved definition bid successfully for licenses in Blocks A and B. There were 90 winning bidders that qualified as small entities in the Block C auctions. A total of 93 small and very small business bidders won approximately 40% of the  X 41,479 licenses for Blocks D, E, and F. : yO_'rr#]\  PCP#  FCC News, Broadband PCS, D, E and F Block Auction Closes, No. 71744 (released Jan. 14, 1997). Based on this information, we conclude that the number of small broadband PCS licensees will include the 90 winning C Block bidders and the 93 qualifying bidders in the D, E, and F blocks, for a total of 183 small entity PCS providers as defined by the SBA and the Commission's auction rules.  XK445. Narrowband PCS. The Commission has auctioned nationwide and regional licenses for narrowband PCS. There are 11 nationwide and 30 regional licensees for narrowband PCS. The Commission does not have sufficient information to determine whether any of these licensees are small businesses within the SBAapproved definition for radiotelephone companies. At present, there have been no auctions held for the major trading area (MTA) and basic trading area (BTA) narrowband PCS licenses. The Commission anticipates a total of 561 MTA licenses and 2,958 BTA licenses will be awarded by auction. Such auctions have not yet been scheduled, however. Given that nearly all radiotelephone companies have no more than 1,500 employees and that no reliable estimate of the number of prospective MTA and BTA narrowband licensees can be made, we assume, for purposes of this IRFA, that all of the licenses will be awarded to small entities, as that term is defined by the SBA. "N1  +))0"  X446. Rural Radiotelephone Service. The Commission has not adopted a definition of small  X4entity specific to the Rural Radiotelephone Service.z yOb'rr#]\  PCP#  The service is defined in Section 22.99 of the Commission's Rules, 47 CFR 22.99. A significant subset of the Rural  X4Radiotelephone Service is the Basic Exchange Telephone Radio Systems (BETRS).Xz yO'rr#]\  PCP#  BETRS is defined in Sections 22.757 and 22.759 of the Commission's Rules, 47 CFR 22.757 and 22.759. We  X4will use the SBA's definition applicable to radiotelephone companies, i.e., an entity  X4employing no more than 1,500 persons.z yO 'rr#]\  PCP#  13 CFR 121.201, SIC code 4812. There are approximately 1,000 licensees in the Rural Radiotelephone Service, and we estimate that almost all of them qualify as small  Xv4entities under the SBA's definition.     XH447. AirGround Radiotelephone Service. The Commission has not adopted a definition of  X14small entity specific to the AirGround Radiotelephone Service.1@z yO"'rr#]\  PCP#  The service is defined in Section 22.99 of the Commission's Rules, 47 CFR 22.99. Accordingly, we will use  X 4the SBA's definition applicable to radiotelephone companies, i.e., an entity employing no  X 4more than 1,500 persons.~ z yO'rr#]\  PCP#  13 CFR 121.201, SIC code 4812.~ There are approximately 100 licensees in the AirGround Radiotelephone Service, and we estimate that almost all of them qualify as small under the SBA definition.   X 448. Specialized Mobile Radio (SMR). The Commission awards bidding credits in auctions for geographic area 800 MHz and 900 MHz SMR licenses to firms that had revenues of no  Xy4more than $15 million in each of the three previous calendar years.uy` z yO'rr#]\  PCP#  47 CFR 90.814(b)(1). u In the context of 900 MHz SMR, this regulation defining "small entity" has been approved by the SBA; approval concerning 800 MHz SMR is being sought. 49. The proposed fees in the NPRM apply to SMR providers in the 800 MHz and 900 MHz bands that either hold geographic area licenses or have obtained extended implementation authorizations. We do not know how many firms provide 800 MHz or 900 MHz geographic area SMR service pursuant to extended implementation authorizations, nor how many of these providers have annual revenues of no more than $15 million. One firm has over $15 million in revenues. We assume, for purposes of this IRFA, that all of the remaining existing extended implementation authorizations are held by small entities, as that term is defined by the SBA.  XN450. For geographic area licenses in the 900 MHz SMR band, there are 60 who qualified as small entities. For the 800 MHz SMR's, 38 are small or very small entities."72 0*((0"Ԍ X4ԙ  51. Private Land Mobile Radio (PLMR). PLMR systems serve an essential role in a range of industrial, business, land transportation, and public safety activities. These radios are used by companies of all sizes operating in all U.S. business categories. The Commission has not developed a definition of small entity specifically applicable to PLMR licensees due to the vast array of PLMR users. For the purpose of determining whether a licensee is a small business as defined by the SBA, each licensee would need to be evaluated within its own business area. 52. The Commission is unable at this time to estimate the number of small businesses which could be impacted by the rules. However, the Commission's 1994 Annual Report on  X 4PLMRs z yO 'rr#]\  PCP#  Federal Communications Commission, 60th Annual Report, Fiscal Year 1994, at 116. indicates that at the end of fiscal year 1994 there were 1,087,267 licensees operating 12,481,989 transmitters in the PLMR bands below 512 MHz. Because any entity engaged in a commercial activity is eligible to hold a PLMR license, the proposed rules in this context could potentially impact every small business in the United States.  X 453. Amateur Radio Service. We estimate that 6,800 applicants will apply for vanity call signs in FY 1999. All are presumed to be individuals. All other amateur licensees are exempt from payment of regulatory fees.  XK454. Aviation and Marine Radio Service. Small businesses in the aviation and marine radio services use a marine very high frequency (VHF) radio, any type of emergency position indicating radio beacon (EPIRB) and/or radar, a VHF aircraft radio, and/or any type of emergency locator transmitter (ELT). The Commission has not developed a definition of small entities specifically applicable to these small businesses. Therefore, the applicable definition of small entity is the definition under the SBA rules for radiotelephone  X4communications.~Xz yO'rr#]\  PCP#  13 CFR 121.201, SIC code 4812.~ 55. 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. Therefore, for purposes of our evaluations and conclusions in this IRFA, we estimate that there may be at least 712,000 potential licensees which are individuals or are small entities, as that term is defined by the SBA. We estimate, however, that only 11,600 will be subject to FY 1999 regulatory fees. " 30*((0"  X4 X 56. Fixed Microwave Services. Microwave services include common carrier, yOy'rr#]\  PCP#  47 CFR 101 et seq. (formerly, part 21 of the Commission's Rules).  X4private-operational fixed,+ X yO'rr#]\  PCP#  Persons eligible under parts 80 and 90 of the Commission's rules can use Private OperationalFixed  yO'Microwave services. See 47 CFR parts 80 and 90. Stations in this service are called operationalfixed to distinguish them from common carrier and public fixed stations. Only the licensee may use the operationalfixed station, and only for communications related to the licensee's commercial, industrial, or safety operations.+ and broadcast auxiliary radio services.@ yO'rr#]\  PCP#  Auxiliary Microwave Service is governed by part 74 of Title 47 of the Commission's Rules. See 47  yO 'CFR 74 et seq. Available to licensees of broadcast stations and to broadcast and cable network entities, broadcast auxiliary microwave stations are used for relaying broadcast television signals from the studio to the transmitter, or between two points such as a main studio and an auxiliary studio. The service also includes mobile TV pickups, which relay signals from a remote location back to the studio.  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 yet defined a small business with respect to microwave services. For purposes of this  X4IRFA, we will utilize the SBA's definition applicable to radiotelephone companies  i.e., an  Xv4entity with no more than 1,500 persons.zv  yO'rr#]\  PCP#  13 CFR 121.201, SIC 4812.z We estimate, for this purpose, that all of the Fixed Microwave licensees (excluding broadcast auxiliary licensees) would qualify as small entities under the SBA definition for radiotelephone companies.  X 457. Public Safety Radio Services. Public Safety radio services include police, fire, local  X 4government, forestry conservation, highway maintenance, and emergency medical services.IH   yO4'rr#]\  PCP#  With the exception of the special emergency service, these services are governed by Subpart B of part 90 of the Commission's Rules, 47 CFR 90.15-90.27. The police service includes 26,608 licensees that serve state, county, and municipal enforcement through telephony (voice), telegraphy (code) and teletype and facsimile (printed material). The fire radio service includes 22,677 licensees comprised of private volunteer or professional fire companies as well as units under governmental control. The local government service that is presently comprised of 40,512 licensees that are state, county, or municipal entities that use the radio for official purposes not covered by other public safety services. There are 7,325 licensees within the forestry service which is comprised of licensees from state departments of conservation and private forest organizations who set up communications networks among fire lookout towers and ground crews. The 9,480 state and local governments are licensed to highway maintenance service provide emergency and routine communications to aid other public safety services to keep main roads safe for vehicular traffic. The 1,460 licensees in the Emergency Medical Radio Service (EMRS) use the 39 channels allocated to this service for emergency medical service communications related to the delivery of emergency medical treatment. 47 CFR 90.15 90.27. The 19,478 licensees in the special emergency service include medical services, rescue organizations, veterinarians, handicapped persons, disaster relief organizations, school buses, beach patrols, establishments in isolated areas,  yO#'communications standby facilities, and emergency repair of public communications facilities. 47 CFR 90.33-90.55.I There are a total of approximately 127,540 licensees within these services. Governmental entities as well as private businesses comprise the licensees for these services. As indicated  X 4supra in paragraph four of this IRFA, all governmental entities with populations of less than  X 450,000 fall within the definition of a small entity.r  yO)'rr#]\  PCP#  5 U.S.C. 601(5). r All licensees in this category are exempt from the payment of regulatory fees."4 x-++0"Ԍ X4ԙ X 58. Personal Radio Services. Personal radio services provide shortrange, low power radio for personal communications, radio signalling, and business communications not provided for in other services. The services include the citizen's band (CB) radio service, general mobile  X4radio service (GMRS), radio control radio service, and family radio service (FRS). z yO4'rr#]\  PCP#  Licensees in the Citizens Band (CB) Radio Service, General Mobile Radio Service (GMRS), Radio Control (R/C) Radio Service and Family Radio Service (FRS) are governed by Subpart D, Subpart A, Subpart C, and Subpart B, respectively, of part 95 of the Commission's Rules. 47 CFR 95.401-95.428; 95.1-95.181;  yO'95.201-95.225; 47 CFR 95.191-95.194.  Inasmuch as the CB, GMRS, and FRS licensees are individuals, no small business definition applies for these services. We are unable at this time to estimate the number of other licensees that would qualify as small under the SBA's definition; however, only GMRS licensees are subject to regulatory fees.  XH4   X1459. Offshore Radiotelephone Service. This service operates on several UHF TV broadcast channels that are not used for TV broadcasting in the coastal area of the states bordering the  X 4Gulf of Mexico. z yOd'rr#]\  PCP#  This service is governed by subpart I of part 22 of the Commission's Rules. See 47 CFR  yO,'22.1001-22.1037. At present, there are approximately 55 licensees in this service. We are unable at this time to estimate the number of licensees that would qualify as small under the SBA's definition for radiotelephone communications.  X 460. Wireless Communications Services. This service can be used for fixed, mobile, radiolocation and digital audio broadcasting satellite uses. The Commission defined "small business" for the wireless communications services (WCS) auction as an entity with average gross revenues of $40 million for each of the three preceding years, and a "very small business" as an entity with average gross revenues of $15 million for each of the three preceding years. The Commission auctioned geographic area licenses in the WCS service. In the auction, there were seven winning bidders that qualified as very small business entities, and one that qualified as a small business entity. We conclude that the number of geographic area WCS licensees affected includes these eight entities.  X' IV. Description of Projected Reporting, Recordkeeping and Other Compliance  X'Requirements: 61. With certain exceptions, the Commission's Schedule of Regulatory Fees applies to all Commission licensees and regulatees. Most licensees will be required to count the number of licenses or call signs authorized, complete and submit an FCC Form 159 ("FCC Remittance  X74Advice"), and pay a regulatory fee based on the number of licenses or call signs. 7z yO$'rr#]\  PCP#  The following categories are exempt from the Commission's Schedule of Regulatory Fees: Amateur radio licensees (except applicants for vanity call signs) and operators in other nonlicensed services (e.g., Personal Radio, part 15, ship and aircraft). Governments and nonprofit (exempt under section 501(c) of the Internal Revenue Code) entities are exempt from payment of regulatory fees and need not submit payment. Non"H'0*((S'"ԫcommercial 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 noncommercial 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 $10. Interstate"75( 0*((80"  H telephone service providers must compute their annual regulatory fee based on their adjusted gross interstate revenue using information they already supply to the Commission in compliance with the Telecommunications Relay Service (TRS) Fund, and they must complete and submit the FCC Form 159. Compliance with the fee schedule will require some licensees  X4to tabulate the number of units (e.g., cellular telephones, pagers, cable TV subscribers) they have in service, and complete and submit an FCC Form 159. Licensees ordinarily will keep a list of the number of units they have in service as part of their normal business practices. No additional outside professional skills are required to complete the FCC Form 159, and it can be completed by the employees responsible for an entity's business records. 62. Each licensee must submit the FCC Form 159 to the Commission's lockbox bank after computing the number of units subject to the fee. As an option, licensees are permitted to file electronically or on computer diskette to minimize the burden of submitting multiple copies of the FCC Form 159. This latter, optional procedure may require additional technical skills. Applicants who pay small fees in advance supply fee information as part of their application or by attaching FCC Form 159, where applicable. 63. Licensees and regulatees are advised that failure to submit the required regulatory fee in a timely manner will subject the licensee or regulatee to a late payment fee of 25 percent in  XK4addition to the required fee.tK(  yO$'rr#]\  PCP#  47 U.S.C. 1.1164(a).t Until payment is received, no new or pending applications will  X44be processed, and existing authorizations may be subject to rescission.t4  yO'rr#]\  PCP#  47 U.S.C. 1.1164(c).t Further, in accordance with the Debt Collection Improvement Act of 1996, federal agencies may bar a person or entity from obtaining a federal loan or loan insurance guarantee if that person or  X4entity fails to pay a delinquent debt owed to any federal agency.H  yO#'rr#]\  PCP#  Public Law 104134, 110 Stat. 1321 (1996). Thus, debts owed to the  X4Commission may result in a person or entity being denied a federal loan or loan guarantee  X4pending before another federal agency until such obligations are paid.x yOJ''rr#]\  PCP#  31 U.S.C. 7701(c)(2)(B).x 64. The Commission's rules currently provide for relief in exceptional circumstances. Persons or entities that believe they have been placed in the wrong regulatory fee category or are experiencing extraordinary and compelling financial hardship, upon a showing that such"e6hx-++HH0"  H circumstances override the public interest in reimbursing the Commission for its regulatory  X4costs, may request a waiver, reduction or deferment of payment of the regulatory fee.q% yOb'rr#]\  PCP#  47 U.S.C. 1.1166.q However, timely submission of the required regulatory fee must accompany requests for waivers or reductions. This will avoid any late payment penalty if the request is denied. The fee will be refunded if the request is granted. In exceptional and compelling instances (where payment of the regulatory fee along with the waiver or reduction request could result in reduction of service to a community or other financial hardship to the licensee), the Commission will accept a petition to defer payment along with a waiver or reduction request.  X1' V. Steps Taken to Minimize Significant Economic Impact on Small Entities, and  X 'Significant Alternatives Considered:  X 4  X 465. The Omnibus Consolidated and Emergency Supplemental Appropriations Act for FY  X 41999, Public Law 105277 requires the Commission to revise its Schedule of Regulatory Fees in order to recover the amount of regulatory fees that Congress, pursuant to Section 9(a) of the Communications Act, as amended, has required the Commission to collect for Fiscal Year  X4(FY) 1999.qX% yO'rr#X\  P6G;P#  47 U.S.C.159(a). q We have sought comment on the proposed methodology for implementing these statutory requirements and any other potential impact of these proposals on small business entities.  XK4 rr(#r 66. With the use of actual cost accounting data for computation of regulatory fees, we found that some fees which were very small in previous years would have increased dramatically.  X4The methodology we are adopting in this Report and Order minimizes this impact by limiting the amount of increase and shifting costs to other services which, for the most part, are larger entities.  X4 67. Several categories of licensees and regulatees are exempt from payment of regulatory  X4fees. See, e.g., footnote 164, supra, and Attachment F of the Report and Order, infra.  Xe4Report to Small Business Administration: The Commission will send a copy of this Report  XN4and Order, including a copy of the initial certification, to the Chief Counsel for Advocacy of the Small Business Administration. The certification will also be published in the Federal Register pursuant to 5 U.S.C. 605(b).  X4 Report to Congress: The Commission shall include a copy of this Final Regulatory Flexibility  X4Analysis, along with this Report and Order, including a copy of the final certification, in a report to Congress pursuant to the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 801(a)(1)(A). A copy of this FRFA (or summary thereof) will also be  X"4published in the Federal Register, along with this Report and Order. "#7-p+p+!0"  X4 X   Attachment B ă  b4  b4)SOURCES OF PAYMENT UNIT ESTIMATES FOR FY 1999 ă  aE ';  9 #MP6X@`7\@##G\  P6G;P#In order to calculate individual service fees for FY 1999, we adjusted FY 1998 payment units for each service to more accurately reflect expected FY 1999  ' payment liabilities. We obtained our updated estimates through a variety of means. For example, we used Commission licensee data bases, actual prior year  ' payment records and industry and trade association projections when available. We tried to obtain verification for these estimates from multiple sources and,  ' in all cases, we compared FY 1999 estimates with actual FY 1998 payment units to ensure that our revised estimates were reasonable. Where it made sense,  ' we adjusted and/or rounded our final estimates to take into consideration the fact that certain variables that impact on the number of payment units cannot yet  '! be estimated exactly. These include an unknown number of waivers and/or exemptions that may occur in FY 1999 and the fact that, in many services, the number  '2 of actual licensees or station operators fluctuates from time to time due to economic, technical or other reasons. Therefore, when we note, for example, that our  aE~ ' estimated FY 1999 payment units are based on FY 1998 actual payment units, it does not necessarily mean that our FY 1999 projection is exactly the same number as FY 1998. It means that we have either rounded the FY 1999 number or adjusted it slightly to account for these variables.  '   9X  O !ddx ( ( (  Addx 8t  O  N h 8 "FEE CATEGORYd 8"-SOURCES OF PAYMENT UNIT ESTIMATESN     8   aE #MP6X@`7\@##G\  P6G;P#Land Mobile (All), Microwave, IVDS (now  aE 218219 MHz Serv.)X =e yO'rr#]\  PCP#  After the NPRM was issued in this proceeding, the Wireless Telecommunications Bureau's staff advised that they anticipate receiving 513 renewal applications for IVDS in FY 1999. Therefore, there will be a regulatory fee in the 218219 MHz Service (previously IVDS) category for FY 1999., Marine (Ship & Coast), Aviation (Aircraft & Ground), GMRS, Amateur Vanity Call Signs, Domestic Public Fixed  Based on Wireless Telecommunications Bureau (WTB) projections of new applications and renewals taking into consideration existing Commission licensee data bases. Aviation (Aircraft) and Marine (Ship) estimates have been adjusted to take into consideration the licensing of portions of these services on a voluntary basis.  z d  V  CMRS Mobile Services  Based on actual FY 1998 payment units adjusted to take into consideration industry estimates of growth between FY 1998 and FY 1999 and Wireless Telecommunications Bureau projections of new applications and average number of mobile units associated with each application. z .  V  CMRS Messaging Services, Based on industry estimates of the number of units in operation. . .  AM/FM Radio StationsZ Based on actual FY 1998 payment units. . . , UHF/VHF Television Stations Based on actual FY 1998 payment units.. . Z AM/FM/TV Construction Permits Based on actual FY 1998 payment units. . .  LPTV, Translators and Boosters Based on actual FY 1998 payment units.. .  Auxiliaries Based on actual FY 1998 payment units.. .  MDS/MMDS@ Based on actual FY 1998 payment units.. .  Cable Antenna Relay Service (CARS)n Based on actual FY 1998 payment units.. . @ Cable Television System Subscribers Based on Cable Services Bureau and industry estimates of subscribership. . z n V  Interstate Telephone Service Providers Based on actual FY 1998 interstate revenues associated with contributions to the Telecommunications Relay System (TRS) Fund, adjusted to take into consideration FY 1999 revenue growth in this industry as estimated by the Common Carrier Bureau.z .  V  Earth StationsD  Based on actual FY 1998 payment units.. .  Space Stations (GSOs & NGSOs)r! Based on International Bureau licensee data bases.. . D  International Bearer Circuits" Based on International Bureau estimate..  r!   International HF Broadcast Stations, International Public Fixed Radio Service$ Based on actual FY 1998 payment units. " X "$8-$,$,XX" "  aE X  XXX `N"%! Attachment C  CALCULATION OF REVENUE REQUIREMENTS AND PRORATA FEES  f@L#,-2Pw,P##I2PG;eP# #|?xzPCeP# h Addx 8t   a(9 99:h $     "$ *g* wFee Category6a FY 1999 5K Payment ? UnitsL/T(times) FY 1998 FeeL/(times) Payment YearsL/38(equals) .Computed 1$ FY 1999 1"Revenue &RequirementgProRated Revenue Requireme f@<nt* g f@J Rounded New FY 1999 Regulatory  f@Fee g f@J" Expected <"FY 1999  f@$"Revenue &   t  & *gy*  dB' #,72PG;w,P##^@2PG;Q^P#LM (220 MHz, >470 MHZBase, SMRS)  yZ5,800  yp12  y5  yW~348,000 y381,799 y!13 y3"377,000&t    & *y*  Private MicrowaveZ5,375 p12 a10 W~645,000707,645!133"698,750&  d   & *l*  xB )  Domestic Public Fixed/Comc'l Microwave> lZ1,000 > lp12 > lt10> lW~120,000> l131,655> l!13> l3"130,000&d    & *l*  218219 MHz Service b513  D(12 assumed) 5  \30,780 33,769 !13 8;#33,345&    > & **  Marine (Ship) Z7,100  6  a10  W~426,000 467,375 V!7 3"497,000&     & **  GMRS/Other LM Uw68,700  6  5  O2,061,000 E2,261,172 V!7 +"2,404,500&     & **  Aviation (Aircraft)v Z4,500 v 6 v a10 v W~270,000v 296,223v V!7v 3"315,000&     & **  Marine (Coast)D Z1,400 D 6 D 5 D \42,000D 46,079D V!7D 8;#49,000&    v & **  Aviation (Ground)Z1,600 6 5 \48,00052,662V!78;#56,000&    D & **  Amateur Vanity Call SignsZ6,800 6 a10 \88,40096,986 1.438;#96,732&    & **  AM/FM RadioZ8,905 1,370 1 J12,195,73513,380,229r 1,500&W"13,381,900&    & **  AM Construction Permits|g[75 |/235 |1 |\17,625|19,337| 260|8;#19,500&    & **  FM Construction PermitsJb300 J1,150J1 JW~345,000J378,508Jr 1,250J3"375,000&    |& **  Satellite TVb109 1,1751 W~128,075140,514r 1,3003"141,700&    J& **  Satellite TV Construction Permitl6 /420 1 a2,520)2,765 460=|#2,760&    & **  VHF Markets 110g[42 37,575 1 O1,578,150E1,731,4261 41,225+"1,731,450&    & **  VHF Markets 1125g[60 31,275 1 O1,876,500E2,058,7521 34,325+"2,059,500&    & **  VHF Markets 2650Pg[70 P21,400 P1 PO1,498,000PE1,643,491P1 23,475P+"1,643,250&    & **  VHF Markets 51100b119 11,9751 O1,425,025E1,563,4291 13,150+"1,564,850&    P& **  VHF Remaining Markets b205 3,100 1 W~635,500697,222r 3,4003"697,000&    & **  VHF Construction Permitsg[15 2,525 1 \37,87541,554r 2,7758;#41,625&    & **  UHF Markets 110g[68 14,175 1 W~963,900E1,057,5171 15,550+"1,057,400&    & **  UHF Markets 1125Vg[67 V10,725 V1 VW~718,575V788,366V1 11,775V3"788,925&    & **  UHF Markets 2650$b100 $6,650 $1 $W~665,000$729,587$r 7,300$3"730,000&    V& **  UHF Markets 51100b150 3,975 1 W~596,250654,160r 4,3503"652,500&    $& **  UHF Remaining Markets b180 1,075 1 W~193,500212,293r 1,1753"211,500&    & **  UHF Construction Permitsg[60 2,650 1 W~159,000174,443r 2,9003"174,000&    & **  Auxiliaries\Uw22,000 \p11 \1 \W~242,000\265,504\!12\3"264,000&    & **  International HF Broadcast*l5 */475 *1 *a2,375*)2,606* 520*=|#2,600&    \& **  LPTV/Translators/BoostersZ2,020 /265 1 W~535,300587,290 2903"585,800&    *& **  CARSZ1,687 p50 1 \84,35092,542!558;#92,785&    & **  Cable Systems  C 64,000,000  0.44  1  J28,160,000 30,895,000  0.48 &W"30,895,000&  d  & *l*  Interstate Telephone Service Providersb!4 67,732,300,000 t!l0.0011 !l1 !lJ74,505,530!l81,741,773!l0.00121!l&W"81,741,773&d     & *l*  CMRS Mobile Services"C 55,540,000 "0.29 "1 "J16,106,600"17,670,931" 0.32"&W"17,670,931&    !& **  CMRS Messaging Services#C 34,500,000 #0.04 #1 #O1,380,000#E1,514,031# 0.04#+"1,514,031&    "& **  MDS/MMDSb$Z1,650 b$/260 b$1 b$W~429,000b$470,666b$ 285b$3"470,250&    #& **  International Circuits0%P6465,000 0%6 0%1 0%O2,790,0000%E3,060,9750%V!70%+"3,255,000&    b$& **  International Public Fixed%l3 %/375 %1 %a1,125%)1,234% 410%=|#1,230&    0%& **  Earth Stations&Z3,100 &/165 &1 &W~511,500&561,179& 180&3"558,000&    %& **  Space Stations (Geostationary)'b 42.5'r119,000'1 'O5,057,500'E5,548,702'130,550'+"5,548,375&    && **  Space Stations (Nongeostationary)h(l2 h(K164,800 h(1 h(W~329,600h(361,612h(180,800h(3"361,600&    '& ** 6)t6)6)6) Y=(ux% 6) X>(u'N 6) !6)T$&    h(& ** ****** Total Estimated Revenue Collected*t***E157,250,290*172,523,000* !*!"172,894,779&    6)& ** ****** Total Revenue Requirement*t***E172,523,000*172,523,000* !*!"172,523,000&     *& **  Difference+t+++D(15,272,710)+ 0+ !+3"371,779   -*  X>,u'* 1.097123573 factor applied#/xzPCw,P#",9X/--XX -*"  dB' Xhh   (J"#<2PeP# 3'3'Standard3'3'Standard referencehXXhh:   Attachment D#%2PP#ѐh%6X  n+h#6X@@# FY 1999 SCHEDULE OF REGULATORY FEES #Xx6X@iX@#ѐ ?46X ă _/ IIƀ%I _ h a(9 99: ddxD:p h   * Q   KAb  {R[J #4zp7#Fee Category#:l4zp7!N:#ѐb_D Q  Z !Annual  ZRegulatory FeeĐ Q48" 8" ( U.S. $'s) ă F D Q  PMRS (per license) (Formerly Land Mobile Exclusive Use at 220222 MHz, above 470 MHz,  Q 4Base Station and SMRS) (47 CFR part 90)  Ƭ  !Xr x (#%'0*,.8135@8:@@CEGHJLNPQS13F g D     Q 4Microwave (per license) (47 CFR part 101)((Ƭ( !13g g   218219 MHz Service (per license) (47 CFR part 95)X!`h !p"$ 'x)+(.0205798<>@@CEGHJLNPQSX` hp x (#%'0*,.8135@8:1,000,000&Z4,400&3,600&1,750&x2,250&Q3,600&H#4,400  $"&;0R+R+hh *_("  Q `R(#Attachment E ă  ^[{#!6X@@# #x6X@KiX@#COMPARISON BETWEEN FY 1998, FY 1999 PROPOSED  ^ [& FY 1999 FINAL REGULATORY FEES #*6X@K@# {X m 44P*=;e  ddx <  m    $ Q   XN;   {R[ #4zp7#Fee Category#_4zp7'v#ѐ; _1Q  f@G#'@2p#Annual >wRegulatory QxFee FFY 1998 H`'Z+#P2p(#1Q  f@#(@2p#NPRM IProposed  Fee  f@FY 1999#P2p(#1Q  f@ d!#(@2p#Annual  Regulatory !Fee  ]!FY 1999 H`' ^" #P2p(#      Q  PMRS (per license) (Formerly Land MobileExclusive Use at 220222 Mhz, above 470 Mhz, Base Station and SMRS) (47  HI 'CFR part 90)  SX` hp x (#%'0*,.8135@8:@@CEGHJLNPQS12 #13 "13  P  1 R   H 'Microwave (per license) (47 CFR part 101)(( (a RS12a R#13a R"13P  P    RR  218219 MHz Service (per license) (47 CFR part 95) RC`h !p"$ 'x)+(.0205798<>@@CEGHJLNPQSX` hp x (#%'0*,.8135@8:1,000,000'X4,000'3,250'1,500'w2,000'Q3,250'F#4,000  & "R*=0A+A+yy&* &"Ԍ | 44P*_=e  44P*>e | $  &$ &y&  n%FY 1999 RADIO STATION REGULATORY FEES$' $ &y& ePopulation  Served</ AM Class A<AM Class B<AM Class C<NAM Class D<RFM Classes MA, B1 & C3<!FM Classes !B, C, C1 & 0#C2$' i h$ &_&  <=20,000_c#430_=325_#W225_q275_325_QV$430$i i $ 20,001 50,000a_d#825a_=650a_#W325a_q450a_650a_RV$825$i i $ 50.001 125,000 _[1,350 _=875 _"W450 _q675 _875 _I#1,350$i i a$ 125,001 400,0003 _Y2,0003 _1,4003 _#W6753 _q8253 _Q1,4003 _G#2,000$i i  $ 400,001 1,000,000 _Y2,750 _2,250 _1,250 _y1,500 _Q2,250 _G#2,750$i       3 $ &_&  >1,000,0005W4,40053,60051,7505w2,2505Q3,6005E#4,400   "5>0R/R/hh J "  X' hh   #!XN\  P9XP##Xj\  P6G;9XP# #o\  PC9XP# `q(#Attachment F  X' DETAILED GUIDANCE ON WHO MUST PAY REGULATORY FEES  X4 1. The guidelines below provide an explanation of regulatory fee categories established by  Xv4the Schedule of Regulatory Fees in section 9 (g) of the Communications Act,pv yO'#X\  P6G;P#  47 U.S.C. 159(g)p as modified in  X_4the instant Report and Order. Where regulatory fee categories need interpretation or clarification, we have relied on the legislative history of section 9, and our own experience in establishing and regulating the Schedule of Regulatory Fees for Fiscal Years (FY) 1994, 1995, 1996, 1997, and 1998 and the services subject to the fee schedule. The categories and amounts set out in the schedule have been modified to reflect changes in the number of payment units, additions and changes in the services subject to the fee requirement and the benefits derived from the Commission's regulatory activities, and to simplify the structure of the schedule. The schedule may be similarly modified or adjusted in future years to reflect  X 4changes in the Commission's budget and in the services regulated by the Commission.y X yO'#X\  P6G;P# 47 U.S.C. 159(b)(2), (3).y  Xy42. Exemptions. Governments and nonprofit entities are exempt from paying regulatory fees and should not submit payment. A nonprofit entity may be asked to submit a current IRS Determination Letter documenting that it is exempt from taxes under section 501 of the Internal Revenue Code or the certification of a governmental authority attesting to its nonprofit status. The governmental exemption applies even where the governmentowned or communityowned facility is in competition with a commercial operation. Other specific exemptions are discussed below in the descriptions of other particular service categories.  X' 1. Private Wireless Radio Services  X4 3. Two levels of statutory fees were established for the Private Wireless Radio Services exclusive use services and shared use services. Thus, licensees who generally receive a higher quality communication channel due to exclusive or lightly shared frequency assignments will pay a higher fee than those who share marginal quality assignments. This dichotomy is consistent with the directive of section 9, that the regulatory fees reflect the benefits provided  X 4to the licensees.x  yO"'#X\  P6G;P#  47 U.S.C. 159(b)(1)(A). x In addition, because of the generally small amount of the fees assessed against Private Wireless Radio Service licensees, applicants for new licenses and reinstatements and for renewal of existing licenses are required to pay a regulatory fee covering the entire license term, with only a percentage of all licensees paying a regulatory fee in any one year. Applications for modification or assignment of existing authorizations do not require the payment of regulatory fees. The expiration date of those authorizations will reflect only the unexpired term of the underlying license rather than a new license term. ""?x +))C!J "Ԍ X'   a. Exclusive Use Services  X4 4. Private Mobile Radio Services (PMRS) : Regulatees in this category include those authorized under part 90 of the Commission's Rules to provide limited access Wireless Radio service that allows high quality voice or digital communications between vehicles or to fixed stations to further the business activities of the licensee. These services, using the 220222 MHz band and frequencies at 470 MHz and above, may be offered on a private carrier basis  X_4in the Specialized Mobile Radio Services (SMRS). _ yO'#X\  P6G;P#  This category only applies to licensees of shareduse private 220222 MHz and 470 MHz and above in the Specialized Mobile Radio (SMR) service who have elected not to change to the Commercial Mobile Radio Service (CMRS). Those who have elected to change to the CMRS are referred to paragraph 14 of this Attachment. For FY 1999, PMRS licensees will pay a $13 annual regulatory fee per license, payable for an entire five or ten year license term at  X14the time of application for a new, renewal, or reinstatement license.;1 yO'#X\  P6G;P#  Although this fee category includes licenses with tenyear terms, the estimated volume of tenyear license applications in FY 1999 is less than onetenth of one percent and, therefore, is statistically insignificant. ; The total regulatory fee due is either $65 for a license with a five year term or $130 for a license with a 10 year term.  X 45. Microwave Services: These services include private and commercial microwave systems and private and commercial carrier systems authorized under part 101 of the Commission's Rules to provide telecommunications services between fixed points on a high quality channel of communications. Microwave systems are often used to relay data and to control railroad, pipeline, and utility equipment. Commercial systems typically are used for video or data transmission or distribution. For FY 1999, Microwave licensees will pay a $13 annual regulatory fee per license, payable for an entire ten year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $130 for the ten year license term.  X46. Interactive Video Data Service (now 218219 MHz Service): The 218219 MHz Service is a twoway, pointtomultipoint radio service allocated high quality channels of communications and authorized under part 95 of the Commission's Rules. The 218219 MHz Service provides information, products, and services, and also the capability to obtain responses from subscribers in a specific service area. The 218219 MHz Service is offered on a private carrier basis. The Commission anticipates receiving 513 renewal applications for the 218219 MHz Service during FY 1999. Therefore, for FY 1999, the regulatory fee for 218 XN4219 MHz Service licensees will be $13 per renewal, payable for an entire five year term. The  X74total regulatory fee due is $65 for the five year license term.  X 4b. Shared Use Services  X47. Marine (Ship) Service: This service is a shipboard radio service authorized under part 80 of the Commission's Rules to provide telecommunications between watercraft or between watercraft and shorebased stations. Radio installations are required by domestic and"!@ +))L J " international law for large passenger or cargo vessels. Radio equipment may be voluntarily installed on smaller vessels, such as recreational boats. The Telecommunications Act of 1996 gave the Commission the authority to license certain ship stations by rule rather than by individual license. The Commission exercises that authority. Thus, private boat operators sailing entirely within domestic U.S. waters and who are not otherwise required by treaty or agreement to carry a radio, are no longer required to hold a marine license, and they will not be required to pay a regulatory fee. For FY 1999, parties required to be licensed and those choosing to be licensed for Marine (Ship) Stations will pay a $7 annual regulatory fee per station, payable for an entire tenyear license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $70 for the ten year license term.  X 48. Marine (Coast) Service: This service includes landbased stations in the maritime services, authorized under part 80 of the Commission's Rules, to provide communications services to ships and other watercraft in coastal and inland waterways. For FY 1999, licensees of Marine (Coast) Stations will pay a $7 annual regulatory fee per call sign, payable for the entire fiveyear license term at the time of application for a new, renewal, or reinstatement license. The  Xy4total regulatory fee due is $35 per call sign for the fiveyear license term.   XK49. Private Land Mobile (Other) Services: These services include Land Mobile Radio Services operating under parts 90 and 95 of the Commission's Rules. Services in this category provide one or twoway communications between vehicles, persons or fixed stations on a shared basis and include radiolocation services, industrial radio services, and land transportation radio services. For FY 1999, licensees of services in this category will pay a $7 annual regulatory fee per call sign, payable for an entire fiveyear license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $35 for the fiveyear license term.  X|410. Aviation (Aircraft) Service: These services include stations authorized to provide communications between aircraft and between aircraft and ground stations and include frequencies used to communicate with air traffic control facilities pursuant to part 87 of the Commission's Rules. The Telecommunications Act of 1996 gave the Commission the authority to license certain aircraft radio stations by rule rather than by individual license. The commission exercises that authority. Thus, private aircraft operators flying entirely within domestic U.S. airspace and who are not otherwise required by treaty or agreement to carry a radio are no longer required to hold an aircraft license, and they will not be required to pay a regulatory fee. For FY 1999, parties required to be licensed and those choosing to be licensed for Aviation (Aircraft) Stations will pay a $7 annual regulatory fee per station, payable for the entire tenyear license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $70 per station for the tenyear license term.  X:&411. Aviation (Ground) Service: This service includes stations authorized to provide groundbased communications to aircraft for weather or landing information, or for logistical support pursuant to part 87 of the Commission's Rules. Certain groundbased stations which only" (A +))%J " serve itinerant traffic, i.e., possess no actual units on which to assess a fee, are exempt from   payment of regulatory fees. For FY 1999, licensees of Aviation (Ground) Stations will pay a $7 annual regulatory fee per license, payable for the entire fiveyear license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee is $35 per call sign for the fiveyear license term.  Xv412. General Mobile Radio Service (GMRS): These services include Land Mobile Radio licensees providing personal and limited business communications between vehicles or to fixed stations for shortrange, twoway communications pursuant to part 95 of the  X14Commission's Rules. For FY 1999, GMRS licensees will pay a $7 annual regulatory fee per license, payable for an entire fiveyear license term at the time of application for a new, renewal or reinstatement license. The total regulatory fee due is $35 per license for the fiveyear license term.  X ' c. Amateur Radio Vanity Call Signs  X413. Amateur Vanity Call Signs: This category covers voluntary requests for specific call signs in the Amateur Radio Service authorized under part 97 of the Commission's Rules. Applicants for Amateur Vanity CallSigns will continue to pay a $1.30 annual regulatory fee per call sign, as prescribed in the FY 1998 fee schedule, payable for an entire tenyear license term at the time of application for a vanity call sign until the FY 1999 fee schedule becomes effective. The total regulatory fee due would be $13 per license for the tenyear license  X4term.xX yO'#X\  P6G;P#  Section 9(h) exempts "amateur radio operator licenses under part 97 of the Commission's rules (47 CFR part 97)" from the requirement. However, section 9(g)'s fee schedule explicitly includes "Amateur vanity call signs" as a category subject to the payment of a regulatory fee. x For FY 1999, Amateur Vanity Call Sign applicants will pay a $1.40 annual regulatory fee per call sign, payable for an entire tenyear term at the time of application for a new, renewal or reinstatement license. The total regulatory fee due is $14.00 per call sign for the tenyear license term.  X'  X'd. Commercial Wireless Radio Services  Xe414. Commercial Mobile Radio Services (CMRS) Mobile Services: The Commercial Mobile Radio Service (CMRS) is an "umbrella" descriptive term attributed to various existing broadband services authorized to provide interconnected mobile radio services for profit to the public, or to such classes of eligible users as to be effectively available to a substantial portion of the public. CMRS Mobile Services include certain licensees which formerly were licensed as part of the Private Radio Services (e.g., Specialized Mobile Radio Services) and others  X4formerly licensed as part of the Common Carrier Radio Services (e.g., Public Mobile Services and Cellular Radio Service). While specific rules pertaining to each covered service remain in separate parts 22, 24, 27, 80 and 90, general rules for CMRS are contained in part 20. "!B +)) J "  X4CMRS Mobile Services will include: Specialized Mobile Radio Services (part 90); ; yOy'#X\  P6G;P#  This category does not include licensees of private shareduse 220 MHz and 470 MHz and above in the Specialized Mobile Radio (SMR) service who have elected to remain noncommercial. Those who have elected not to change to the Commercial Mobile Radio Service (CMRS) are referred to paragraph 4 of this Attachment.  Broadband Personal Communications Services (part 24), Public Coast Stations (part 80); Public Mobile Radio (Cellular, 800 MHz AirGround Radiotelephone, and Offshore Radio Services) (part 22); and Wireless Communications Service (part 27). Each licensee in this group will pay an annual regulatory fee for each mobile or cellular unit (mobile or telephone number), assigned to its customers, including resellers of its services. For FY 1999, the  Xv4regulatory fee is $.32 per unit.  XH415. Commercial Mobile Radio Services (CMRS) Messaging Services: The Commercial Mobile Radio Service (CMRS) is an "umbrella" descriptive term attributed to various existing narrowband services authorized to provide interconnected mobile radio services for profit to the public, or to such classes of eligible users as to be effectively available to a substantial portion of the public. CMRS Messaging Services   include certain licensees which formerly were licensed as part of the Private Radio Services (e.g., Private Paging and Radiotelephone Service), licensees formerly licensed as part of the Common Carrier Radio Services (e.g., Public Mobile OneWay Paging), licensees of Narrowband Personal Communications Service (PCS) (e.g., oneway and twoway paging), and 220222 MHz Band and Interconnected Business Radio Service. In addition, for FY 1999, this category will also include small SMR systems authorized for use of less than 10 MHz of bandwidth. While specific rules pertaining to each covered service remain in separate parts 22, 24 and 90, general rules for CMRS are contained in part 20. Each licensee in the CMRS Messaging Services will pay an annual regulatory fee for each unit (pager, telephone number, or mobile) assigned to its customers, including resellers of its services. For FY 1999, the regulatory fee is $.04 per unit. 16. Finally, we are reiterating our definition of CMRS payment units to make it clear that fees are assessable on each PCS or cellular telephone and each oneway or twoway pager capable of receiving or transmitting information, whether or not the unit is "active" on the "asof" date for payment of these fees. The unit becomes "feeable" if the end user or assignee of the unit has possession of the unit and the unit is capable of transmitting or receiving voice or nonvoice messages or data and the unit is either owned and operated by the licensee of the CMRS system or a reseller, or the end user of a unit has a contractual agreement for the provision of a CMRS service from a licensee of a CMRS system or a reseller of a CMRS service. The responsible payer of the regulatory fee is the CMRS licensee. For example, John Doe purchases a pager and contractually obtains paging services from Paging Licensee X. Paging Licensee X is responsible for paying the applicable regulatory fee for this unit. Likewise, Cellular Licensee Y donates cellular phones to a high school and the high school either pays for or obtains free cellular service from Cellular Licensee Y. In this situation, Cellular Licensee Y is responsible for paying the applicable regulatory fees for these units. ""C0*(( J "Ԍ X4 H  2. Mass Media Services 17. The regulatory fees for the Mass Media fee category apply to broadcast licensees and permittees. Noncommercial Educational Broadcasters are exempt from regulatory fees.  X4 a. Commercial Radio 18. These categories include licensed Commercial AM (Classes A, B, C, and D) and FM (Classes A, B, B1, C, C1, C2, and C3) Radio Stations operating under part 73 of the  X14Commission's Rules. 1w4 yO '#X\  P6G;P#  The Commission acknowledges that certain stations operating in Puerto Rico and Guam have been assigned a higher level station class than would be expected if the station were located on the mainland. Although this results in a higher regulatory fee, we believe that the increased interference protection associated with the higher station class is necessary and justifies the fee. We have combined class of station and city grade contour population data to formulate a schedule of radio fees which differentiate between stations based on class of station and population served. In general, higher class stations and stations in metropolitan areas will pay higher fees than lower class stations and stations located in rural areas. The specific fee that a station must pay is determined by where it ranks after weighting its fee requirement (determined by class of station) with its population. The regulatory fee classifications for Radio Stations for FY 1999 are as follows:  X4 | 44P*>e  !44P*yDe | $   $ &y&  ' FY 1999 RADIO STATION REGULATORY FEES$E y$ &y&  Population Servedh<) AM Class HAh<AM Class ;Bh<AM Class OCh<HAM Class giDh<FM Classes A, B1 & vC3Q r!FM Classes  s!B, C, C1 & ,"C2$E s  $ &_&  <=20,000_^430_"325_<225_|V275_325_L;$430$s s Q$ &__&  20,001 50,0007_^8257_"6507_<3257_|V4507_6507_L;$825$s s $ &__&  50.001 125,000_Pp1,350_"875_<450_|V675_875_>#1,350$s s 7$ &__&  125,001 400,000_Pp2,000_1,400_<675_|V825_#1,400_>#2,000$s s $ &__&  400,001 1,000,000_Pp2,750_2,250_1,250_n1,500_#2,250_>#2,750$s       $ &_&  >1,000,0003Pp4,40033,60031,7503n2,2503#3,6003>#4,400   X34 19. Licensees may determine the appropriate fee payment by referring to a list which will be  X4provided as an attachment to the final Report and Order in this proceeding. This same information will be available on the FCC's Internet world wide web site (http://www.fcc.gov) by calling the FCC's National Call Center (18882255322), and may be included in the  X"4Public Notices mailed to each licensee for which we have a current address on file (Note: Nonreceipt of a Public Notice does not relieve a licensee of its obligation to submit its  X{$'regulatory fee payment). "{$D+****"["Ԍ X'ԙ H  b. Construction Permits Commercial AM Radio 20. This category includes holders of permits to construct new Commercial AM Stations. For FY 1999, permittees will pay a fee of $260 for each permit held. Upon issuance of an operating license, this fee would no longer be applicable and licensees would be required to pay the applicable fee for the designated group within which the station appears.  X_4 c. Construction Permits Commercial FM Radio 21. This category includes holders of permits to construct new Commercial FM Stations. For FY 1999, permittees will pay a fee of $780 for each permit held. Upon issuance of an operating license, this fee would no longer be applicable. Instead, licensees would pay a  X 4regulatory fee based upon the designated group within which the station appears.   X '  X 4d. Commercial Television Stations 22. This category includes licensed Commercial VHF and UHF Television Stations covered under part 73 of the Commission's Rules, except commonly owned Television Satellite Stations, addressed separately below. Markets are Nielsen Designated Market Areas (DMA)  XK4as listed in the Television & Cable Factbook, Stations Volume No. 67, 1999 Edition, Warren Publishing, Inc. The fees for each category of station are as follows: ` `  Ghh}VHF Markets 110...............$41,225 ` `  Ghh}VHF Markets 1125...............34,325 ` `  Ghh}VHF Markets 2650...............23,475 ` `  Ghh}VHF Markets 51100.............13,150 ` `  Ghh}VHF Remaining Markets.........3,400 ` `  Ghh}UHF Markets 110...............$15,550 ` `  Ghh}UHF Markets 1125...............11,775 ` `  Ghh}UHF Markets 2650.................7,300 ` `  Ghh}UHF Markets 51100...............4,350 ` `  Ghh}UHF Remaining Markets.........1,175  X' e. Commercial Television Satellite Stations 23. Commonly owned Television Satellite Stations in any market (authorized pursuant to Note 5 of 73.3555 of the Commission's Rules) that retransmit programming of the primary station are assessed a fee of $1,300 annually. Those stations designated as Television Satellite  X#4Stations in the 1999 Edition of the Television and Cable Factbook are subject to the fee applicable to Television Satellite Stations. All other television licensees are subject to the regulatory fee payment required for their class of station and market. ":&E0*((\$["  X' H  f. Construction Permits Commercial VHF Television Stations 24. This category includes holders of permits to construct new Commercial VHF Television Stations. For FY 1999, VHF permittees will pay an annual regulatory fee of $2,775. Upon issuance of an operating license, this fee would no longer be applicable. Instead, licensees would pay a fee based upon the designated market of the station.  X_' g. Construction Permits Commercial UHF Television Stations 25 This category includes holders of permits to construct new UHF Television Stations. For  X 4FY 1999, UHF Television permittees will pay an annual regulatory fee of $2,900. Upon issuance of an operating license, this fee would no longer be applicable. Instead, licensees would pay a fee based upon the designated market of the station.  X '  X 4h. Construction Permits ĩ Satellite Television Stations 26. The fee for UHF and VHF Television Satellite Station construction permits for FY 1999 is $460. An individual regulatory fee payment is to be made for each Television Satellite Station construction permit held.  XK' i. Low Power Television, FM Translator and Booster Stations, TV Translator and Booster Stations  X4 27. This category includes Low Power UHF/VHF Television stations operating under part 74 of the Commission's Rules with a transmitter power output limited to 1 kW for a UHF facility and, generally, 0.01 kW for a VHF facility. Low Power Television (LPTV) stations may retransmit the programs and signals of a TV Broadcast Station, originate programming,  X4and/or operate as a subscription service.  This category also includes translators and boosters operating under part 74 which rebroadcast the signals of full service stations on a frequency different from the parent station (translators) or on the same frequency (boosters). The stations in this category are secondary to full service stations in terms of frequency priority. We have also received requests for waivers of the regulatory fees from operators of community based Translators. These Translators are generally not affiliated with commercial broadcasters, are nonprofit, nonprofitable, or only marginally profitable, serve small rural communities, and are supported financially by the residents of the communities served. We are aware of the difficulties these Translators have in paying even minimal regulatory fees,  X 4and we have addressed those concerns in the ruling on reconsideration of the FY 1994 Report  X!4and Order. Communitybased Translators are exempt from regulatory fees. For FY 1999, licensees in low power television, FM translator and booster, and TV translator and booster category will pay a regulatory fee of $290 for each license held.  XQ%4 j. Broadcast Auxiliary Stations 28. This category includes licensees of remote pickup stations (either base or mobile) and associated accessory equipment authorized pursuant to a single license, Aural Broadcast Auxiliary Stations (Studio Transmitter Link and InterCity Relay) and Television Broadcast"(F+****&["  HH Auxiliary Stations (TV Pickup, TV Studio Transmitter Link, TV Relay) authorized under part 74 of the Commission's Rules. Auxiliary Stations are generally associated with a particular television or radio broadcast station or cable television system. This category does not  X4include translators and boosters (see paragraph 26 infra). For FY 1999, licensees of Commercial Auxiliary Stations will pay an $12 annual regulatory fee on a per call sign basis.  X'  Xv'k. Multipoint Distribution Service 29. This category includes Multipoint Distribution Service (MDS), Local Multipoint Distribution (LMDS), and Multichannel Multipoint Distribution Service (MMDS), authorized under part 21 of the Commission's Rules to use microwave frequencies for video and data distribution within the United States. For FY 1999, MDS, LMDS, and MMDS stations will pay an annual regulatory fee of $285 per call sign.  X '  X 43. Cable Services  X4 a. Cable Television Systems  30. This category includes operators of Cable Television Systems, providing or distributing programming or other services to subscribers under part 76 of the Commission's Rules. For  X44FY 1999, Cable Systems will pay a regulatory fee of $.48 per subscriber.B4. yO'#X\  P6G;P#  Cable systems are to pay their regulatory fees on a per subscriber basis rather than per 1,000  yOu'subscribers as set forth in the statutory fee schedule. See FY 1994 Report and Order at paragraph 100. B Payments for Cable Systems are to be made on a per subscriber basis as of December 31, 1998. Cable Systems should determine their subscriber numbers by calculating the number of single family  X4dwellings, the number of individual households in multiple dwelling units, e.g., apartments, condominiums, mobile home parks, etc., paying at the basic subscriber rate, the number of bulk rate customers, and the number of courtesy or fee customers. In order to determine the number of bulk rate subscribers, a system should divide its bulk rate charge by the annual  X4subscription rate for individual households. See FY 1994 Report and Order, Appendix B at paragraph 31.  Xe'  XN4b. Cable Antenna Relay Service 31. This category includes Cable Antenna Relay Service (CARS) stations used to transmit television and related audio signals, signals of AM and FM Broadcast Stations, and cablecasting from the point of reception to a terminal point from where the signals are distributed to the public by a Cable Television System. For FY 1999, licensees will pay an annual regulatory fee of $55 per CARS license.  X"' 4. Common Carrier Services  Xh$' a. Commercial Microwave (Domestic Public Fixed Radio Service)  X:&432. This category includes licensees in the PointtoPoint Microwave Radio Service, Local Television Transmission Radio Service, and Digital Electronic Message Service, authorized"#'G x- , ,HHm%["  H under part 101 of the Commission's Rules to use microwave frequencies for video and data distribution within the United States. These services are now included in the Microwave  X4category (see paragraph 5 infra).  X' b. Interstate Telephone Service Providers  X4 33. This category includes InterExchange Carriers (IXCs), Local Exchange Carriers (LECs), Competitive Access Providers (CAPs), domestic and international carriers that provide operator services, Wide Area Telephone Service (WATS), 800, 900, telex, telegraph, video, other switched, interstate access, special access, and alternative access services either by using their own facilities or by reselling facilities and services of other carriers or telephone carrier  X 4holding companies, and companies other than traditional local telephone companies that provide interstate access services to long distance carriers and other customers. This category also includes prepaid calling card providers. These common carriers, including resellers, must submit fee payments based upon their proportionate share of gross interstate revenues  X 4using the methodology that we have adopted for calculating contributions to the TRS fund. c yO '#X\  P6G;P#  See Telecommunications Relay Services, 8 FCC Rcd 5300 (1993), 58 FR 39671 (Jul. 26, 1993). In order to avoid imposing any double payment burden on resellers, we will permit carriers to subtract from their gross interstate revenues, as reported to NECA in connection with their TRS contribution, any payments made to underlying common carriers for telecommunications facilities and services, including payments for interstate access service, that are sold in the form of interstate service. For this purpose, resold telecommunications facilities and services are only intended to include payments that correspond to revenues that will be included by another carrier reporting interstate revenue. For FY 1999, carriers must multiply their adjusted gross revenue figure (gross revenue reduced by the total amount of their payments to underlying common carriers for telecommunications facilities or services) by the factor 0.00121 to determine the appropriate fee for this category of service. Regulatees may want to use the following worksheet to determine their fee payment: h !44P*yDe Addx|H h  @  y   y "lMTOTAL y * INTERSTATE@ P | yE   yO'#X\  P6G;P#(1) Revenue reported in TRS Fund worksheets]E ]E P P   EE  (2) Less: Access charges paidE E P  ] E  (3) Less: Other telecommunications facilities and services taken for resale   P @  E  (4) Adjusted revenues (1)minus(2)minus(3)!E !E P @ P @  EE  (5) Fee factore"E e"E * 0.00121P @  B ! El  (6) Fee due (4)times(5)#l #l  B e"l "$HX0*((# "  X' H  #Xj\  P6G;9XP#5. International Services  X' a. Earth Stations 34. Very Small Aperture Terminal (VSAT) Earth Stations, equivalent CBand Earth Stations and antennas, and earth station systems comprised of very small aperture terminals operate in the 12 and 14 GHz bands and provide a variety of communications services to other stations  X_4in the network. VSAT systems consist of a network of technicallyidentical small FixedSatellite Earth Stations which often include a larger hub station. VSAT Earth Stations and CBand Equivalent Earth Stations are authorized pursuant to part 25 of the Commission's Rules.  X 4Mobile Satellite Earth Stations, operating pursuant to part 25 of the Commission's Rules under blanket licenses for mobile antennas (transceivers), are smaller than one meter and provide voice or data communications, including position location information for mobile  X 4platforms such as cars, buses, or trucks.}X  yON'#X\  P6G;P#  Mobile earth stations are handheld or vehiclebased units capable of operation while the operator or vehicle is in motion. In contrast, transportable units are moved to a fixed location and operate in a stationary (fixed) mode. Both are assessed the same regulatory fee for FY 1999.} FixedSatellite Transmit/Receive and Transmit X 4Only Earth Station antennas, authorized or registered under part 25 of the Commission's Rules, are operated by private and public carriers to provide telephone, television, data, and other forms of communications. Included in this category are telemetry, tracking and control (TT&C) earth stations, and earth station uplinks. For FY 1999, licensees of VSATs, Mobile Satellite Earth Stations, and FixedSatellite Transmit/Receive and TransmitOnly Earth  XK4Stations will pay a fee of $180 per authorization or registration as well as a separate fee of  X44$180 for each associated Hub Station.  X435. Receiveonly earth stations. For FY 1999, there is no regulatory fee for receiveonly earth stations.  X4 b. Space Stations (Geostationary Orbit)  36. Geostationary Orbit (also referred to as Geosynchronous) Space Stations are domestic and international satellites positioned in orbit to remain approximately fixed relative to the earth. Most are authorized under part 25 of the Commission's Rules to provide communications between satellites and earth stations on a common carrier and/or private carrier basis. In addition, this category includes Direct Broadcast Satellite (DBS) Service which includes space stations authorized under part 100 of the Commission's rules to transmit or retransmit signals for direct reception by the general public encompassing both individual and community reception. For FY 1999, entities authorized to operate geostationary space stations (including DBS satellites) will be assessed an annual regulatory fee of $130,550 per operational station in orbit. Payment is required for any geostationary satellite that has been launched and tested and is authorized to provide service.  X#' c. Space Stations (NonGeostationary Orbit) 37. NonGeostationary Orbit Systems (such as Low Earth Orbit (LEO) Systems) are space stations that orbit the earth in nongeosynchronous orbit. They are authorized under part 25 of the Commission's rules to provide communications between satellites and earth stations on"#'Ix- , ,HHS% "  HH a common carrier and/or private carrier basis. For FY 1999, entities authorized to operate NonGeostationary Orbit Systems (NGSOs) will be assessed an annual regulatory fee of $180,800 per operational system in orbit. Payment is required for any NGSO System that has  X4one or more operational satellites operational. In our FY 1997 Report and Order at paragraph 75 we retained our requirement that licensees of LEOs pay the LEO regulatory fee upon their certification of operation of a single satellite pursuant to section 25.120(d). We require payment of this fee following commencement of operations of a system's first satellite to insure that we recover our regulatory costs related to LEO systems from licensees of these systems as early as possible so that other regulatees are not burdened with these costs any longer than necessary. Because section 25.120(d) has significant implications beyond regulatory fees (such as whether the entire planned cluster is operational in accordance with the terms and conditions of the license) we are clarifying our current definition of an operational LEO satellite to prevent misinterpretation of our intent as follows: XLicensees of NonGeostationary Satellite Systems (such as LEOs) are assessed a regulatory fee upon the commencement of operation of a system's first satellite as reported annually pursuant to sections 25.142(c), 25.143(e), 25.145(g), or upon certification of operation of a single satellite pursuant to section 25.120(d).   XK'  X44d. International Bearer Circuits 38 Regulatory fees for International Bearer Circuits are to be paid by facilitiesbased common carriers (either domestic or international) activating the circuit in any transmission facility for the provision of service to an end user or resale carrier. Payment of the fee for bearer circuits by noncommon carrier submarine cable operators is required for circuits sold on an indefeasible right of use (IRU) basis or leased to any customer, including themselves or their affiliates, other than an international common carrier authorized by the Commission to  X|4provide U.S. international common carrier services. Compare FY 1994 Report and Order at 5367. Payment of the international bearer circuit fee is also required by noncommon carrier satellite operators for circuits sold or leased to any customer, including themselves or their affiliates, other than an international common carrier authorized by the Commission to provide U.S. international common carrier services. The fee is based upon active 64 kbps circuits, or equivalent circuits. Under this formulation, 64 kbps circuits or their equivalent will be assessed a fee. Equivalent circuits include the 64 kbps circuit equivalent of larger bit stream circuits. For example, the 64 kbps circuit equivalent of a 2.048 Mbps circuit is 30 64 kbps circuits. Analog circuits such as 3 and 4 kHz circuits used for international service are also included as 64 kbps circuits. However, circuits derived from 64 kbps circuits by the use of digital circuit multiplication systems are not equivalent 64 kbps circuits. Such circuits are not subject to fees. Only the 64 kbps circuit from which they have been derived will be subject to payment of a fee. For FY 1999, the regulatory fee is $7.00 for each active 64 kbps circuit or equivalent. For analog television channels we will assess fees as follows: Analog Television Channel No. of equivalent 64 kbps Circuits  X (4Size in MHz Ghh}  36......................................................................... 630  24......................................................................... 288  18.......................................................................... 240"*Jx- , ,HH( "Ԍ  X' e. International Public Fixed 39. This fee category includes common carriers authorized under part 23 of the Commission's Rules to provide radio communications between the United States and a foreign point via microwave or HF troposcatter systems, other than satellites and satellite earth stations, but not including service between the United States and Mexico, and the United States and Canada, using frequencies above 72 MHz. For FY 1999, International Public Fixed Radio Service licensees will pay a $410 annual regulatory fee per call sign.  X ' f. International (HF) Broadcast 40. This category covers International Broadcast Stations licensed under part 73 of the Commission's Rules to operate on frequencies in the 5,950 kHz to 26,100 kHz range to provide service to the general public in foreign countries. For FY 1999, International HF Broadcast Stations will pay an annual regulatory fee of $520 per station license. "Kx- , ,HH "  X4 H #Xj\  P6G;9XP#`Q(# Attachment G ă  X4_ Description of FCC Activities à  X4 Authorization of Service: The authorization or licensing of radio stations, telecommunications equipment, and radio operators, as well as the authorization of common carrier and other services and facilities. Includes policy direction, program development, legal services, and executive direction, as well as support services associated with authorization  X14activities.>1 yO '#]\  PCP#  Although Authorization of Service is described in this exhibit, it is not one of the activities included as a feeable activity for regulatory fee purposes pursuant to section 9(a)(1) of the Act. 47 U.S.C. 159(a)(1).>  X 4 Policy and Rulemaking: Formal inquiries, rulemaking proceedings to establish or amend the Commission's rules and regulations, action on petitions for rulemaking, and requests for rule interpretations or waivers; economic studies and analyses; spectrum planning, modeling, propagation-interference analyses, and allocation; and development of equipment standards. Includes policy direction, program development, legal services, and executive direction, as well as support services associated with policy and rulemaking activities.  Xb4 Enforcement: Enforcement of the Commission's rules, regulations and authorizations, including investigations, inspections, compliance monitoring, and sanctions of all types. Also includes the receipt and disposition of formal and informal complaints regarding common carrier rates and services, the review and acceptance/rejection of carrier tariffs, and the review, prescription and audit of carrier accounting practices. Includes policy direction, program development, legal services, and executive direction, as well as support services associated with enforcement activities.  X4   X4 Public Information Services: The publication and dissemination of Commission decisions and actions, and related activities; public reference and library services; the duplication and dissemination of Commission records and databases; the receipt and disposition of public inquiries; consumer, small business, and public assistance; and public affairs and media relations. Includes policy direction, program development, legal services, and executive direction, as well as support services associated with public information activities.  X 4#Xj\  P6G;9XP#" L 0*(( "  X4`Q(# Attachment H ă  X4> Factors, Measurements and Calculations That Go Into Determining  X'E Station Signal Contours And Associated Population Coverages ă  X' AM Stations Specific information on each day tower, including field ratio, phasing, spacing and orientation was retrieved, as well as the theoretical pattern RMS figure (mV/m @ 1 km) for the antenna system. The standard, or modified standard if pertinent, horizontal plane radiation pattern was calculated using techniques and methods specified in sections 73.150 and 73.152 of the  X 4Commission's rules.}  yO| '#X\  P6G;P#  47 U.S.C. 73.150 and 73.152. } Radiation values were calculated for each of 72 radials around the transmitter site (every 5 degrees of azimuth). Next, estimated soil conductivity data was retrieved from a database representing the information in FCC Figure M3. Using the calculated horizontal radiation values, and the retrieved soil conductivity data, the distance to the city grade (5 mV/m) contour was predicted for each of the 72 radials. The resulting distance to city grade contours were used to form a geographical polygon. Population counting was accomplished by determining which 1990 block centroids were contained in the polygon. The sum of the population figures for all enclosed blocks represents the total population for the predicted city grade coverage area.  X' FM Stations The maximum of the horizontal and vertical HAAT (m) and ERP (kW) was used. Where the antenna HAMSL was available, it was used in lieu of the overall HAAT figure to calculate specific HAAT figures for each of 72 radials under study. Any available directional pattern information was applied as well, to produce a radialspecific ERP figure. The HAAT and ERP figures were used in conjunction with the propagation curves specified in section 73.313 of the Commission's rules to predict the distance to the city grade (70 dBuV/m or 3.17  Xe4mV/m) contour for each of the 72 radials.ueX yOn'#X\  P6G;P#  47 U.S.C. 73.313. u The resulting distance to city grade contours were used to form a geographical polygon. Population counting was accomplished by determining which 1990 block centroids were contained in the polygon. The sum of the population figures for all enclosed blocks represents the total population for the predicted city   grade coverage area." M0*(( "  X4  `(# Attachment I ă  X4Parties Filing Comments on the Notice of Inquiry MCI WorldCom, Inc. BellSouth Corporation Paging Network, Inc. American Mobile Telecommunications Association, Inc. Small Business in Telecommunications ARDIS Company Personal Communications Industry Association Industrial Telecommunications Association, Inc. GE American Communications, Inc. Space Imaging L.P. Lockheed Martin Corporation PanAmSat Corporation Orbital Communications Corporation L/Q Licensee, Inc.  Xb4Parties Filing Reply Comments on the Notice of Inquiry BellSouth Corporation (Late Filed) L/Q Licensee, Inc. GE American Communications, Inc. COMSAT Corporation Loral Space & Communications Ltd.  X4Parties Filing Comments on the Notice of Proposed Rule Making Rural Telecommunications Group (Oral Ex Parte) Council of Independent Communications Suppliers Satellite Industry Association AirTouch Communications, Inc. Cellular Telecommunications Industry Association National Association of Broadcasters Walt Disney Company PanAmSat Corporation GE American Communications, Inc. BellSouth Corporation  X#4Parties Filing Reply Comments on the Notice of Proposed Rule Making PrimeCo Personal Communications, L.P. GE American Communications, Inc. COMSAT Corporation Blooston, Mordkofsky, Jackson & Dickens American Mobile Telecommunications Association, Inc. (also filed Oral Ex Parte)"(N,**& "Ԍ X4ԙ  `(# Attachment J ă  X'J  AM and FM Radio Regulatory Fees l A list of AM and FM Radio Regulatory Fees will be published in a separate public notice.