82 FR 26019 - Assessment and Collection of Regulatory Fees for Fiscal Year 2017
FEDERAL COMMUNICATIONS COMMISSION Federal Register Volume 82, Issue 107 (June 6, 2017)
Federal Register Volume 82, Issue 107 (June 6, 2017)
| Page Range | 26019-26041 | |
| FR Document | 2017-11578 |
[Federal Register Volume 82, Number 107 (Tuesday, June 6, 2017)] [Proposed Rules] [Pages 26019-26041] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11578] ======================================================================= ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 1 [MD Docket Nos. 17-134; FCC 17-62] Assessment and Collection of Regulatory Fees for Fiscal Year 2017 AGENCY: Federal Communications Commission. ACTION: Notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: In this document, the Federal Communications Commission (Commission) will revise its Schedule of Regulatory Fees in order to recover an amount of $356,710,992 that Congress has required the Commission to collect for fiscal year 2017, as amended, provides for the annual assessment and collection of regulatory fees under and respectively, for annual ``Mandatory Adjustments'' and ``Permitted Amendments'' to the Schedule of Regulatory Fees. DATES: Submit comments on or before June 22, 2017, and reply comments on or before July 7, 2017. ADDRESSES: You may submit comments, identified by MD Docket No. 17-134, by any of the following methods:Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. Federal Communications Commission's Web site: http://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments. People With Disabilities: Contact the FCC to request reasonable accommodations (accessible format documents, sign language interpreters, CART, etc.) by email: [email protected] or phone: 202-418- 0530 or TTY: 202-418-0432. Email: [email protected]. Include MD Docket No. 15-121 in the subject line of the message. Mail: Commercial overnight mail (other than U.S. Postal Service Express Mail, and Priority Mail, must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first- class, Express, and Priority mail should be addressed to 445 12th Street SW., Washington, DC 20554. For detailed instructions for submitting comments and additional information on the rulemaking process, see the SUPPLEMENTARY INFORMATION section of this document. FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing Director at (202) 418-0444. SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice of Proposed Rulemaking (NPRM), FCC 17-62, MD Docket No. 17-134 adopted on May 22, 2017 and released on May 23, 2017. The full text of this document is available for inspection and copying during normal business hours in the FCC Reference Center, 445 12th Street SW., Room CY-A257, Portals II, Washington, DC 20554, and may also be purchased from the Commission's copy contractor, BCPI, Inc., Portals II, 445 12th Street SW., Room CY-B402, Washington, DC 20554. Customers may contact BCPI, Inc. via their Web site, http://www.bcpi.com, or call 1-800-378-3160. This document is available in alternative formats (computer diskette, large print, audio record, and braille). Persons with disabilities who need documents in these formats may contact the FCC by email: [email protected] or phone: 202-418-0530 or TTY: 202-418-0432. I. Procedural Matters A. Ex Parte Rules Permit-But-Disclose Proceeding 1. This Notice of Proposed Rulemaking (FY 2017 NPRM) shall be treated as a ``permit-but-disclose'' proceeding in accordance with the Commission's ex parte rules. Persons making ex parte presentations must file a copy of any written presentation or a memorandum summarizing any oral presentation within two business days after the presentation (unless a different deadline applicable to the Sunshine period applies). Persons making oral ex parte presentations are reminded that memoranda summarizing the presentation must list all persons attending or otherwise participating in the meeting at which the ex parte presentation was made, and summarize all data presented and arguments made during the presentation. If the presentation consisted in whole or in part of the presentation of data or arguments already reflected in the presenter's written comments, memoranda, or other filings in the proceeding, the presenter may provide citations to such data or arguments in his or her prior comments, memoranda, or other filings (specifying the relevant page and/or paragraph numbers where such data or arguments can be found) in [[Page 26020]] lieu of summarizing them in the memorandum. Documents shown or given to Commission staff during ex parte meetings are deemed to be written ex parte presentations and must be filed consistent with section 1.1206(b). In proceedings governed by section 1.49(f) or for which the Commission has made available a method of electronic filing, written ex parte presentations and memoranda summarizing oral ex parte presentations, and all attachments thereto, must be filed through the electronic comment filing system available for that proceeding, and must be filed in their native format (e.g., .doc, .xml, .ppt, searchable .pdf). Participants in this proceeding should familiarize themselves with the Commission's ex parte rules. B. Comment Filing Procedures 2. Comments and Replies. Pursuant to sections 1.415 and 1.419 of the Commission's rules, 47 CFR 1.415, 1.419, interested parties may file comments and reply comments on or before the dates indicated on the first page of this document. Comments may be filed using: (1) The Commission's Electronic Comment Filing System (ECFS), (2) the Federal Government's eRulemaking Portal, or (3) by filing paper copies. See Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (1998). Electronic Filers: Comments may be filed electronically using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/ or the Federal eRulemaking Portal: http://www.regulations.gov. Paper Filers: Parties who choose to file by paper must file an original and four copies of each filing. If more than one docket or rulemaking number appears in the caption of this proceeding, filers must submit two additional copies for each additional docket or rulemaking number. Filings can be sent by hand or messenger delivery, by commercial overnight courier, or by first-class or overnight U.S. Postal Service mail. All filings must be addressed to the Commission's Secretary, Office of the Secretary, Federal Communications Commission. [ssquf] All hand-delivered or messenger-delivered paper filings for the Commission's Secretary must be delivered to FCC Headquarters at 445 12th St. SW., Room TW-A325, Washington, DC 20554. The filing hours are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with rubber bands or fasteners. Any envelopes must be disposed of before entering the building. [ssquf] Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail) must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. [ssquf] U.S. Postal Service first-class, Express, and Priority mail must be addressed to 445 12th Street SW., Washington, DC 20554. People With Disabilities: To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an email to [email protected] or call the Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202- 418-0432 (tty). 3. Availability of Documents. Comments, reply comments, and ex parte submissions will be available for public inspection during regular business hours in the FCC Reference Center, Federal Communications Commission, 445 12th Street SW., CY-A257, Washington, DC 20554. These documents will also be available free online, via ECFS. Documents will be available electronically in ASCII, Word, and/or Adobe Acrobat. 4. Accessibility Information. To request information in accessible formats (computer diskettes, large print, audio recording, and Braille), send an email to [email protected] or call the Commission's Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 (TTY). This document can also be downloaded in Word and Portable Document Format (``PDF'') at: http://www.fcc.gov. C. Initial Regulatory Flexibility Analysis 5. An initial regulatory flexibility analysis (IRFA) is contained in this summary. Comments to the IRFA must be identified as responses to the IRFA and filed by the deadlines for comments on the Notice. The Commission will send a copy of the Notice, including the IRFA, to the Chief Counsel for Advocacy of the Small Business Administration. D. Initial Paperwork Reduction Act of 1995 Analysis 6. This document does not contain new or modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. In addition, therefore, it does not contain any new or modified information collection burden for small business concerns with fewer than 25 employees, pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4). II. Introduction 7. In this Notice of Proposed Rulemaking, we seek comment on the Commission's proposed regulatory fees for fiscal year (FY) 2017. We propose to collect $356,710,992 in regulatory fees for FY 2017, as detailed in the proposed fee schedules attached in Table 4. III. Background 8. The Commission is required by Congress to assess regulatory fees each year in an amount that can reasonably be expected to equal the amount of its appropriation.\1\ Regulatory fees, mandated by Congress, are collected ``to recover the costs of . . . enforcement activities, policy and rulemaking activities, user information services, and international activities.'' \2\ Regulatory fees are to ``be derived by determining the full-time equivalent number of employees performing'' these activities, ``adjusted to take into account factors that are reasonably related to the benefits provided to the payer of the fee by the Commission's activities . . . .'' \3\ Regulatory fees recover direct costs, such as salary and expenses; indirect costs, such as overhead functions; and support costs, such as rent, utilities, or equipment.\4\ Regulatory fees also cover the costs incurred in regulating entities that are statutorily exempt from paying regulatory fees,\5\ entities whose regulatory fees are waived,\6\ and entities providing services for which we do not assess regulatory fees. --------------------------------------------------------------------------- \1\ 47 U.S.C. 159(b)(1)(B). The Commission collected $4.25 million above the required regulatory fee target goal in FY 2016, which the Commission deposited into the U.S. Treasury. The cumulative overcollection is $102.62 million as of September 30, 2016. \2\ 47 U.S.C. 159(a). \3\ 47 U.S.C. 159(b)(1)(A). \4\ Assessment and Collection of Regulatory Fees for Fiscal Year 2004, Report and Order, 19 FCC Rcd 11662, 11666, para. 11 (2004) (FY 2004 Report and Order). \5\ For example, governmental and nonprofit entities are exempt from regulatory fees under section 9(h). 47 U.S.C. 159(h); 47 CFR 1.1162. \6\ 47 CFR 1.1166. --------------------------------------------------------------------------- 9. Congress sets the amount the Commission must collect each year in the Commission's fiscal year appropriations. Section 9(a)(2) of the Communications Act of 1934, as amended (Communications Act or Act) requires the Commission to collect fees sufficient to offset the amount appropriated.\7\ To calculate regulatory fees, the Commission allocates the total collection target across all regulatory fee categories. The allocation of fees to fee categories is based on the Commission's calculation of Full Time Employees (or [[Page 26021]] FTEs) in each regulatory fee category.\8\ FTEs are classified as ``direct'' if the employee is in one of the four ``core'' bureaus; otherwise, that employee is considered an ``indirect'' FTE.\9\ The total FTEs for each fee category includes the direct FTEs associated with that category, plus a proportional allocation of indirect FTEs.\10\ The Commission then allocates the total amount to be collected among the various regulatory fee categories within each of the core bureaus. Each regulatee within a fee category pays its proportionate share based on an objective measure, e.g., revenues or number of subscribers.\11\ --------------------------------------------------------------------------- \7\ 47 U.S.C. 159(a)(2). \8\ One FTE is a unit of measure equal to the work performed annually by a full time person (working a 40 hour workweek for a full year) assigned to the particular job, and subject to agency personnel staffing limitations established by the U.S. Office of Management and Budget. \9\ The core bureaus are the Wireline Competition Bureau, Wireless Telecommunications Bureau, Media Bureau, and part of the International Bureau. The indirect FTEs are the employees from the following bureaus and offices: Enforcement Bureau, Consumer & Governmental Affairs Bureau, Public Safety and Homeland Security Bureau, part of the International Bureau, Chairman and Commissioners' offices, Office of the Managing Director, Office of General Counsel, Office of the Inspector General, Office of Communications Business Opportunities, Office of Engineering and Technology, Office of Legislative Affairs, Office of Strategic Planning and Policy Analysis, Office of Workplace Diversity, Office of Media Relations, and Office of Administrative Law Judges. \10\ The Commission observed in the FY 2013 Report and Order that ``the high percentage of the indirect FTEs is indicative of the fact that many Commission activities and costs are not limited to a particular fee category and instead benefit the Commission as a whole.'' See Assessment and Collection of Regulatory Fees for Fiscal Year 2013, Report and Order, 28 FCC Rcd 12351, 12357, para. 17 (2013) (FY 2013 Report and Order). \11\ See Procedures for Assessment and Collection of Regulatory Fees, Notice of Proposed Rulemaking, 27 FCC Rcd 8458, 8461 through 62, paras. 8 through 11 (2012) (FY 2012 NPRM). --------------------------------------------------------------------------- 10. The Commission annually reviews the regulatory fee schedule, proposes changes to the schedule to reflect changes in the amount of its appropriation, and proposes increases or decreases to the schedule of regulatory fees.\12\ The Commission will make changes to the regulatory fee schedule ``if the Commission determines that the schedule requires amendment to comply with the requirements'' \13\ of section 9(b)(1)(A) of the Act.\14\ The Commission may also add, delete, or reclassify services in the fee schedule to reflect additions, deletions, or changes in the nature of its services ``as a consequence of Commission rulemaking proceedings or changes in law.'' \15\ --------------------------------------------------------------------------- \12\ 47 U.S.C. 159(b)(1)(B). \13\ 47 U.S.C. 159(b)(2). \14\ 47 U.S.C. 159(b)(1)(A). \15\ 47 U.S.C. 159(b)(3). --------------------------------------------------------------------------- 11. As part of its annual review, the Commission regularly seeks to improve its regulatory fee analysis. For example, in the FY 2013 Report and Order, the Commission adopted updated FTE allocations to more accurately reflect the number of FTEs working on regulation and oversight of the regulatees in the various fee categories; \16\ reallocated some FTEs from the International Bureau as indirect; \17\ combined the UHF and VHF television stations into one regulatory fee category; \18\ and added Internet Protocol Television (IPTV) to the cable television regulatory fee category.\19\ Subsequently, in the FY 2014 Report and Order, the Commission adopted a new regulatory fee subcategory for toll free numbers within the Interstate Telecommunications Service Provider (ITSP) \20\ category; \21\ increased the de minimis threshold to $500 for annual regulatory fee payors; \22\ and eliminated several categories from the regulatory fee schedule.\23\ In the FY 2015 NPRM, the Commission adjusted regulatory fees for radio and television broadcasters, based on the type and class of service and on the population served; \24\ adopted an increase in the regulatory fee for Direct Broadcast Satellite (DBS) providers in the subcategory within the cable television and IPTV regulatory fee category; \25\ and adopted an across the board fee increase for the Commission's moving expenses.\26\ --------------------------------------------------------------------------- \16\ FY 2013 Report and Order, 28 FCC Rcd at 12354-58, paras. 10-20. The Commission now updates the FTE allocations annually. This was recommended in a report issued by the Government Accountability Office (GAO) in 2012. See GAO ``Federal Communications Commission Regulatory Fee Process Needs to be Updated,'' GAO-12-686 (August 2012) (GAO Report) at 36 (available at http://www.gao.gov/products/GAO-12-686). \17\ FY 2013 Report and Order, 28 FCC Rcd at 12355 through 58, paras. 13 through 20. \18\ Id., 28 FCC Rcd at 12361 through 62, paras. 29 through 31. \19\ Id., 28 FCC Rcd at 12362-63, paras. 32-33. \20\ The ITSP category includes interexchange carriers (IXCs), incumbent local exchange carriers, toll resellers, and other IXC service providers. \21\ Assessment and Collection of Regulatory Fees for Fiscal Year 2014, Report and Order and Further Notice of Proposed Rulemaking, 29 FCC Rcd 10767, 10777 through 79, paras. 25 through 28 (2014) (FY 2014 Report and Order). \22\ FY 2014 Report and Order, 29 FCC Rcd at 10774 through 76, paras. 18 through 21. \23\ Id., 29 FCC Rcd at 10776-77, paras. 22 through 24. \24\ Assessment and Collection of Regulatory Fees for Fiscal Year 2016, Report and Order, 31 FCC Rcd 10339, 10350-51, paras. 31 through 33 (2016) (FY 2016 Report and Order). \25\ FY 2016 Report and Order, 31 FCC Rcd at 10347-350, paras. 25-30. \26\ Id., 31 FCC Rcd at 10341, para. 7. --------------------------------------------------------------------------- IV. Discussion 12. The Commission proposes to collect $356,710,992 in regulatory fees for FY 2017,\27\ pursuant to section 9 of the Communications Act.\28\ These regulatory fees are mandated by Congress and are collected ``to recover the costs of . . . enforcement activities, policy and rulemaking activities, user information services, and international activities.'' \29\ We seek comment on the proposed regulatory fee schedule in Table 4. --------------------------------------------------------------------------- \27\ See Consolidated Appropriations Act, 2017, Division E-- Financial Services and General Government Appropriations Act, 2017, Title V--Independent Agencies, Public Law 115-31 (May 5, 2017), available at https://www.congress.gov/bill/115th-congress/house-bill/244/text. This provides the Commission with $356,710,992 for salaries and expenses, to be raised through section 9 regulatory fees, of which $16,866,992 is directed to be spent on completing the Commission's move and/or restacking. \28\ 47 U.S.C. 159. \29\ 47 U.S.C. 159(a). --------------------------------------------------------------------------- A. Allocating FTEs for Regulatory Fee Purposes 13. Under section 9 of the Act, regulatory fees are to ``be derived by determining the full-time equivalent number of employees performing'' these activities, ``adjusted to take into account factors that are reasonably related to the benefits provided to the payer of the fee by the Commission's activities . . . .'' \30\ As a general matter, we reasonably expect that the work of the FTEs in the core bureaus should remain focused on the industry segment regulated by each of those bureaus. The work of the FTEs in the indirect bureaus and offices benefits the Commission and the telecommunications industry and is not specifically focused on the licensees of a particular core bureau. Given the significant implications of reassignment of FTEs in our fee calculation, we make changes to FTE classifications only after performing considerable analysis and finding the clearest case for reassignment.\31\ For example, the Commission in the FY 2016 Report and Order declined to combine the regulatory fee categories for CMRS and ITSP categories, finding that doing so would not account for the substantial differences between the services in terms of regulatory oversight by the two bureaus.\32\ --------------------------------------------------------------------------- \30\ 47 U.S.C. 159(b)(1)(A). \31\ FY 2013 Report and Order, 28 FCC Rcd at 12357, para. 19. The Commission observed that the International Bureau was a ``singular case'' because the work of those FTEs ``primarily benefits licensees regulated by other bureaus.'' Id., 28 FCC Rcd at 12355, para. 14. \32\ FY 2016 Report and Order, 31 FCC Rcd at 10346-47, para. 22. --------------------------------------------------------------------------- [[Page 26022]] 14. The Commission has 1,431 FTEs funded by regulatory fees, of which 424 are currently direct FTEs.\33\ Of these, 167 would be allocated to Wireline Competition Bureau regulatees, 141 would be allocated to Media Bureau regulatees, 92 would be allocated to Wireless Telecommunications Bureau regulatees, and 24 would be allocated to International Bureau regulatees.\34\ As explained below, we propose to reallocate 38 FTEs associated with Universal Service Fund work as indirect and to reallocate four FTEs that work on wireless numbering issues to the Wireless Telecommunications Bureau. As a result of this proposed reallocation, we project that we would collect approximately 32.38 percent of regulatory fees (or $115.5 million) from Wireline Competition Bureau regulatees, 36.53 percent of regulatory fees (or $130.3 million) from Media Bureau regulatees, 24.87 percent of regulatory fees (or $88.7 million) from Wireless Telecommunications Bureau regulatees, and 6.22 percent of regulatory fees (or $22.2 million) from International Bureau regulatees. --------------------------------------------------------------------------- \33\ All numbers in this paragraph are for the current fiscal year (starting October 1, 2016) and exclude auction-funded FTEs. \34\ This includes space stations, earth stations, and submarine cable, terrestrial, and satellite international bearer circuits (IBCs). --------------------------------------------------------------------------- 1. Reallocating FTEs Associated With the Universal Service Fund 15. We believe that continuing changes to the USF regulatory landscape requires us to reexamine the appropriateness of treating Universal Service Fund FTEs as direct FTEs. To start, we estimate that there are approximately 51 FTEs in the Wireline Competition Bureau, including the bureau front office, devoted to the Universal Service Fund, with 13 of those FTEs devoted to the high-cost program. We also estimate that there are approximately 3 FTEs in the Wireless Telecommunications Bureau, including the bureau front office, devoted to implementing the Mobility Fund, a universal service high-cost support mechanism devoted exclusively to mobile services.\35\ We note that other FTEs throughout the Commission working on universal service issues are assigned as indirect FTEs. This includes the many FTEs working on universal service issues in the Enforcement Bureau, the Office of the Managing Director, the Office of the Inspector General, and the Office of the General Counsel. --------------------------------------------------------------------------- \35\ See Connect America Fund, et al., Report and Order and Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663 (2011). --------------------------------------------------------------------------- 16. We propose to ``adjust[ ]'' the allocation of these direct FTEs ``to take into account factors that are reasonably related to the benefits provided to the payer of the fee by the Commission's activities . . . '' \36\ Specifically, we propose to reallocate the 38 FTEs associated with the non-high-cost programs of the Universal Service Fund as indirect. First, we note that contributions to the Universal Service Fund are not only required from Wireline Competition Bureau regulatees but every provider using any technology that has end- user interstate telecommunications revenue is required to contribute to the Universal Service Fund.\37\ Second, we note that three of the distribution programs--E-Rate, Lifeline, and Rural Healthcare--tie funding eligibility to the beneficiary, whether it be a school, a library, a low-income individual or family, or a rural healthcare provider. None of these beneficiaries are Commission regulatees. Third, we note that wireless carriers now serve a substantial, if not majority, of Lifeline subscribers, and satellite operators, Wi-Fi network installers, and fiber builders may all receive funding through the E-Rate and Rural Healthcare programs. Fourth, we note that treating these FTEs as indirect would be more consistent with how FTEs working on universal service issues are treated elsewhere in the Commission. We seek comment on this proposal. We specifically seek comment on whether the statute requires us to impose regulatory fees on the regulatees of a single bureau even though the benefits provided by those FTEs accrue to regulatees of other bureaus as well as non-regulatees. --------------------------------------------------------------------------- \36\ 47 U.S.C. 159(b)(1)(A). \37\ 47 CFR 54.706(a). --------------------------------------------------------------------------- 17. We also seek comment on alternatives. Although the high-cost program has historically been tied to Wireline Competition Bureau regulatees, the Commission's recent actions such as the adoption of the Mobility Fund Phase II and the Connect America Fund Phase II reverse auctions open eligibility to many other providers. Do these recent changes justify reallocating the 13 Wireline Competition Bureau FTEs and three Wireless Telecommunications Bureau FTEs as indirect? Or should any such reallocation await the full implementation of these reverse auctions? Alternatively, should some portion of the 38 FTEs that work on non-high-cost programs of the Universal Service Fund not be reallocated as indirect? If so, what portion? 18. Commenters should provide legal and policy reasoning in support or opposition to the proposal and to the alternatives. We note that the Commission has said that it ``would be inconsistent with section 9 to delay reallocating . . . FTEs, where the reallocation is clearly warranted, while we engage in painstaking examinations of less clear and more factually complex situations in other bureaus.'' \38\ We seek comment on whether reallocation is clearly warranted here, and we ask commenters to address the impact any change in the allocation of FTEs will have on payors in other fee categories as well as the Commission's goal of ensuring that regulatory fees are administrable and sustainable.\39\ --------------------------------------------------------------------------- \38\ FY 2013 Report and Order, 28 FCC Rcd at 12357-58, paras. 19 through 20. \39\ Id., 28 FCC Rcd at 12354, para 9. --------------------------------------------------------------------------- 2. Reallocating FTEs Associated With Numbering 19. We estimate that 7-8 FTEs in the Wireline Competition Bureau work on numbering issues. We propose to ``adjust[ ]'' the allocation of these direct FTEs ``to take into account factors that are reasonably related to the benefits provided to the payer of the fee by the Commission's activities . . . .'' \40\ Specifically, we estimate approximately half of the benefit of the work of these FTEs accrue to Wireless Telecommunications Bureau regulatees, who control 44.02 percent of assigned numbers under the North American Numbering Plan \41\ and 73.01 percent of voice subscriptions.\42\ We therefore propose to reallocate four of the Wireline Competition Bureau FTEs that work on numbering issues to the Wireless Telecommunications Bureau as direct FTEs for regulatory fee purposes. We seek comment on this proposal. We specifically seek comment on whether the statute requires us to impose regulatory fees on the regulatees of a single bureau even though the benefits provided by those FTEs accrue to regulatees of another bureau. --------------------------------------------------------------------------- \40\ 47 U.S.C. 159(b)(1)(A). \41\ Industry Analysis and Technology Division, Wireline Competition Bureau, FCC, Numbering Resource Utilization in the United States NRUF Data as of June 30, 2010 at 12 Table 1 (2013). \42\ Industry Analysis and Technology Division, Wireline Competition Bureau, FCC, Voice Telephone Services: Status as of December 31, 2015 at 2 Figure 1 (2016). --------------------------------------------------------------------------- 20. Commenters should provide legal and policy reasoning in support or opposition to the proposal, as well as whether the Commission should consider any alternatives. We note that the Commission has said that it ``would [[Page 26023]] be inconsistent with section 9 to delay reallocating . . . FTEs, where the reallocation is clearly warranted, while we engage in painstaking examinations of less clear and more factually complex situations in other bureaus.'' \43\ We seek comment on whether reallocation is clearly warranted here, and we ask commenters to address the impact any change in the allocation of FTEs will have on payors in these two fee categories as well as the Commission's goal of ensuring that regulatory fees are administrable and sustainable.\44\ --------------------------------------------------------------------------- \43\ FY 2013 Report and Order, 28 FCC Rcd at 12357-58, paras. 19 through 20. \44\ Id., 28 FCC Rcd at 12354, para 9. --------------------------------------------------------------------------- B. Direct Broadcast Satellite (DBS) Regulatory Fees 21. The proposed fee schedule includes an updated regulatory fee for DBS, a subcategory in the cable television and IPTV category.\45\ In 2015, the Commission adopted an initial regulatory fee for DBS, as a subcategory in the cable television and IPTV category, of 12 cents per year per subscriber, or one cent per month.\46\ At that time, the Commission committed to updating the regulatory fee rate for FY 2016, as necessary for ensuring an appropriate level of regulatory parity with cable television and IPTV and considering the Media Bureau resources dedicated to this subcategory.\47\ Such examination is consistent with a report issued by the Government Accountability Office (GAO) in 2012, which observed it is important for the Commission to ``regularly update analyses to ensure that fees are set based on relevant information.'' \48\ --------------------------------------------------------------------------- \45\ DBS also pays a regulatory fee per operational station in geostationary orbit. \46\ Assessment and Collection of Regulatory Fees for Fiscal Year 2015, Report and Order and Further Notice of Proposed Rulemaking, 30 FCC Rcd 10268, 10276-77, paras. 19 through 20 (2015) (FY 2015 Report and Order). \47\ FY 2015 Report and Order, 30 FCC Rcd at 10277, para. 20. \48\ GAO Report at 12, available at http://www.gao.gov/products/GAO-12-686. --------------------------------------------------------------------------- 22. DBS service is a nationally distributed subscription service that delivers video and audio programming via satellite to a small parabolic dish antenna at the subscriber's location. The two DBS providers, AT&T and DISH Network, are multichannel video programming distributors (MVPDs).\49\ When the Commission adopted this regulatory fee subcategory, it recognized numerous recent regulatory developments increased Media Bureau FTE activity involving regulation and oversight of MVPDs, including DBS providers.\50\ During the FY 2016 regulatory fee proceeding, commenters representing the cable television industry observed that the Media Bureau FTEs increasingly devote time to issues involving the entire MVPD industry, and that DBS, cable television, and IPTV all receive oversight and regulation as a result of the work of the Media Bureau FTEs on MVPD issues.\51\ Recognizing this, in the FY 2016 Report and Order, the Commission increased the regulatory fee for DBS providers to 24 cents, plus an across-the-board increase of three cents for the Commission's moving expenses, for a total of 27 cents per subscriber, per year.\52\ The increase was adopted in response to the increase in DBS oversight and regulation due to Media Bureau rulemakings regarding MVPD issues.\53\ Nevertheless, the FY 2016 fee of 27 cents per subscriber adopted last year, increased from 12 cents, was still significantly below parity with the cable television/IPTV rate of $1.00 per year.\54\ --------------------------------------------------------------------------- \49\ MVPD is defined in section 602(13) of the Act, 47 U.S.C. 522(13). \50\ FY 2015 NPRM, 30 FCC Rcd at 5367 through 68, para. 31. See, e.g., Video Description: Implementation of the Twenty-First Century Communications and Video Accessibility Act of 2010, Notice of Proposed Rulemaking, 31 FCC Rcd 2463 (2016); Amendment to the Commission's Rules Concerning Market Modification, Implementation of Section 102 of the STELA Reauthorization Act of 2014, Report and Order, 30 FCC Rcd 10406 (2015); Implementation of Section 103 of the STELA Reauthorization Act of 2014, Notice of Proposed Rulemaking, 30 FCC Rcd 10327 (2015); Implementation of the Commercial Advertisement, Loudness Mitigation (CALM) Act, Report and Order, 26 FCC Rcd 17222 (2011) (CALM Act Report and Order). \51\ American Cable Association (ACA) Comments at 3-11 (filed in MD Docket No. 16-166); National Cable & Telecommunications Association (NCTA) Reply Comments at 3-7 (filed in MD Docket No. 16- 166). \52\ FY 2016 Report and Order, 31 FCC Rcd at 10348 through 49, para. 26. \53\ Id., 31 FCC Rcd at 10348 through 49, para. 26. Commenters representing the cable industry continue to observe that ``[w]hile cable, IPTV, and DBS providers are not regulated identically, they offer similar multichannel video services, participate in the same proceedings at the same level in terms of the number of filings and meetings, and benefit in a similar fashion from Media Bureau regulation of MVPDs.'' See Letter from Barbara Esbin, Cinnamon Mueller, attorney for ACA, to Marlene H. Dortch, Secretary, Federal Communications Commission (Dec. 16, 2016) (ACA ex parte) at 1. \54\ The agency is not required to calculate its costs with ``scientific precision.'' Central & Southern Motor Freight Tariff Ass'n v. United States, 777 F.2d 722, 736 (D.C. Cir. 1985). Reasonable approximations will suffice. Id.; National Cable Television Ass'n v. FCC, 554 F.2d 1094, 1105 (D.C. Cir. 1976). --------------------------------------------------------------------------- 23. Based on our updated analysis of the cable television/IPTV category, we find Media Bureau resources devoted to MVPD proceedings, including DBS,\55\ supports revising the DBS regulatory fee rate again. Specifically, we propose a regulatory fee rate of 36 cents per subscriber per year, plus two cents due to the increase in the Commission's budget for moving expenses, for a total of 38 cents per subscriber per year for FY 2017, as set forth in the proposed fee schedule in Table 4. This proposed incremental increase of approximately one cent per subscriber per month would result in bringing the DBS industry regulatory fees closer to those for cable television/IPTV. We seek comment on this proposal. --------------------------------------------------------------------------- \55\ See, e.g., Expanding Consumers' Video Navigation Choices, Commercial Availability of Navigation Devices, Notice of Proposed Rulemaking and Memorandum Opinion and Order, 31 FCC Rcd 1544 (2016); Promoting the Availability of Diverse and Independent Sources of Video Programming, Notice of Inquiry, 31 FCC Rcd 1610 (2016); Expansion of Online Public File Obligations to Cable and Satellite TV Operators and Broadcast and Satellite Radio Licensees, Report and Order, 31 FCC Rcd 526 (2016); Amendment of the Commission's Rules Concerning Market Modification; Implementation of Section 102 of the STELA Reauthorization Act of 2014, Report and Order, 30 FCC Rcd 10406 (2015). --------------------------------------------------------------------------- C. Broadcaster Regulatory Fees 24. In the FY 2016 NPRM, the Commission proposed to include a higher population row in the table for AM and FM broadcasters,\56\ to standardize the incremental increase in fees,\57\ and to better assess fees based on the type and class of service.\58\ The Commission also proposed to adjust the television broadcasters table so that Top 10 market stations paid approximately twice what stations in markets 26-50 paid.\59\ In response to the FY 2016 NPRM, several commenters contended that the proposed regulatory fees were too burdensome for small independent stations.\60\ After reviewing the record, including the comments filed by the industry identifying the economic hardship faced by small independent radio stations, the Commission adopted a revised version of the proposed table and reduced the regulatory fees in the two lowest population tiers for AM and FM broadcasters from the rates [[Page 26024]] proposed in the FY 2016 Report and Order.\61\ --------------------------------------------------------------------------- \56\ FY 2016 NPRM, 31 FCC Rcd at 5762 through 63, para. 12. The Commission also sought comment on this issue in the Further Notice of Proposed Rulemaking attached to the FY 2015 Report and Order. See FY 2015 Report and Order, 30 FCC Rcd at 10280, para. 28. \57\ Id. Specifically, the Commission sought comment on standardizing the incremental increase in fees as radio broadcasters increase the population they serve, such as by requiring that fee adjustments between tiers monotonically increase as the population served increases. Id. \58\ Id. \59\ FY 2016 NPRM, 31 FCC Rcd at 5763 through 64, para. 13. The Commission also sought comment on this issue in the Further Notice of Proposed Rulemaking attached to the FY 2015 Report and Order. See FY 2015 Report and Order, 30 FCC Rcd at 10280 through 81, para. 29. \60\ FY 2016 Report and Order, 31 FCC Rcd at 10351, para. 32. \61\ Id., 31 FCC Rcd at 10351, para. 33. --------------------------------------------------------------------------- 25. We seek comment on further adjusting the regulatory fees for FY 2017. The following chart proposes regulatory fees for AM and FM broadcasters, with revised ratios so that the difference between each tier is proportional. The second chart, for illustrative purposes, has the regulatory fees with the ratios used in the proposal for FY 2016. The second chart does not include the reduction for the two lowest tiers adopted in FY 2016. We seek comment on this proposal. Commenters should also discuss whether the regulatory fees should be reduced further for the AM and FM broadcasters in the two lowest tiers. Table 1--Proposed FY 2017 Radio Station Regulatory Fees -------------------------------------------------------------------------------------------------------------------------------------------------------- Proposed FY 2017 radio station regulatory fees This uses the proposed ratios for FY 2017 --------------------------------------------------------------------------------------------------------------------------------------------------------- FM Classes B, Population served AM Class A ($) AM Class B ($) AM Class C ($) AM Class D ($) FM Classes A, C, C0, C1 & C2 B1 & C3 ($) ($) -------------------------------------------------------------------------------------------------------------------------------------------------------- <=25,000................................................ $1,050 $750 $650 $715 $1,150 $1,300 25,001-75,000........................................... 1,575 1,125 975 1,075 1,725 1,950 75,001-150,000.......................................... 2,375 1,700 1,475 1,600 2,600 2,925 150,001-500,000......................................... 3,550 2,525 2,200 2,425 3,875 4,400 500,001-1,200,000....................................... 5,325 3,800 3,300 3,625 5,825 6,575 1,200,001-3,000,000..................................... 7,975 5,700 4,950 5,425 8,750 9,875 3,000,001-6,000,000..................................... 11,950 8,550 7,400 8,150 13,100 14,800 >6,000,000.............................................. 17,950 12,825 11,100 12,225 19,650 22,225 -------------------------------------------------------------------------------------------------------------------------------------------------------- Table 2--FY 2017 Radio Station Regulatory Fees Based on FY 2016 Ratios -------------------------------------------------------------------------------------------------------------------------------------------------------- FY 2017 Radio station regulatory fees, based on proposed FY 2016 fees This chart uses the proposed ratios in FY 2016 --------------------------------------------------------------------------------------------------------------------------------------------------------- FM Classes B, Population served AM Class A ($) AM Class B ($) AM Class C ($) AM Class D ($) FM Classes A, C, C0, C1 & C2 B1 & C3 ($) ($) -------------------------------------------------------------------------------------------------------------------------------------------------------- <=25,000................................................ $1,125 $825 $710 $780 $1,250 $1,425 25,001-75,000........................................... 1,700 1,250 1,075 1,175 1,875 2,150 75,001-150,000.......................................... 2,250 1,650 1,425 1,550 2,500 2,850 150,001-500,000......................................... 3,375 2,475 2,125 2,350 3,750 4,275 500,001-1,200,000....................................... 5,625 4,125 3,550 3,900 6,250 7,125 1,200,001-3,000,000..................................... 8,450 6,200 5,325 5,850 9,375 10,700 3,000,001-6,000,000..................................... 11,250 8,250 7,100 7,800 12,500 14,250 >6,000,000.............................................. 14,075 10,325 8,875 9,750 15,625 17,825 -------------------------------------------------------------------------------------------------------------------------------------------------------- D. Broadcast Television Satellites 26. Broadcast television satellite stations pay a lower regulatory fee than standalone, full-service broadcast television stations, and are designated as such pursuant to note 5 to section 73.3555 of the Commission's rules.\62\ In 1995, the Commission made a permissive amendment to the regulatory fees schedule to permit television satellite stations that had received authorization to retransmit programming of the primary station to pay a fee separate from the fee for fully operational television stations. This amount is based upon the fee passed by the House of Representatives for television satellite stations for FY 1994.\63\ Other full-service television licensees remain subject to the regulatory fee payment required for the class of station and market. Of note, since 1995, we have consistently defined, and thereby limited, a television satellite station as one commonly owned, authorized under note 5 of section 73.3555 of the Commission's rules, and also shown as such in the Television and Cable Factbook. Periodically, the Television and Cable Factbook includes information concerning satellite status that is inconsistent with our records. --------------------------------------------------------------------------- \62\ E.g., for FY 2016, satellite television was assessed $1,750, whereas digital broadcast UHF and VHF TV was assessed $5,000 to $60,675, depending on the market size. \63\ Assessment and Collection of Regulatory Fees for Fiscal Year 1995, Report and Order, 10 FCC Rcd 13512, 13534-35, para. 60 (1995). See also Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Report and Order, 9 FCC Rcd 5333, para. 82 (1994) (``Section 9(g)'s fee schedule establishes specific fees for commercial television stations. These fees are to be assessed against a licensee solely on the basis of the market in which the station operates. The text of the schedule makes no distinction between commercial stations that are fully operational and those that are satellite stations.''). --------------------------------------------------------------------------- 27. There is a standalone full-service station usually within the same market that serves as the ``parent'' to the satellite station that could not be commonly owned or controlled with the satellite, but for such a waiver. Section 76.55(e)(2) of the Commission's rules specifies that a commercial broadcast television station's market is its Designated Market Area (DMA), which reflects viewing patterns, as determined by Nielsen Media Research and published in its Nielsen Station Index Directory and Nielsen Station Index US Television Household Estimates or any successor publications.\64\ We are [[Page 26025]] unaware of the existence of any reliable published source that can identify which television stations are serving small markets at the fringe of larger DMA's.\65\ In a particular situation, the licensee of a broadcast television satellite station that is not carried by cable, satellite, or alternate methods, may have signal contours that cover the fringes of a DMA (generally, rural communities), whereas other full-service TV stations have greater over-the-air coverage of the DMA market. As a result, advertisers may devote more commercial spending to other full-service TV stations rather than to the more limited broadcast television satellite stations in the same DMA market. Such broadcast television satellite stations may originate their own programming, multicast their broadcasts, and with cable or satellite carriage, provide programming to the entire DMA market. For purposes of paying regulatory fees, the Commission identifies those stations that it deems to be broadcast satellite television stations based on Consolidated Data Base System (CDBS) and other Media Bureau data. However, some stations claim to operate as ``satellites,'' and pay a lower regulatory fee ($1,750 in FY 2016), although they have not been officially granted satellite status by the Commission. Because satellite status may be derived only as a result of Commission action, only stations granted such status by the Commission may pay the satellite television regulatory fee; other stations that claim such status must pay the fee for a full-service station. Attached in Appendix E is a list of the bona fide licensed broadcast satellite television stations, according to the Media Bureau records. This list is generated from the Commission's CDBS and other information provided to the Media Bureau. We invite comment on the accuracy of this list. --------------------------------------------------------------------------- \64\ 47 CFR 76.55(e)(2); Assessment and Collection of Regulatory Fees for Fiscal Year 2000, Report and Order, 15 FCC Rcd 14478, 14492, para. 34 (2000) (FY 2000 Report and Order) (``Fees for television stations are based on market size as determined by Nielsen. This is the only consistent source the Commission has for determining which market a station serves.''). See also Amendment to the Commission's Rules Concerning Market Modification, 30 FCC Rcd 10406, para. 6, n. 19 (2015) (``The Nielsen Company delineates television markets by assigning each U.S. county (except for certain counties in Alaska) to one market based on measured viewing patterns both off-air and via MVPD distribution.''); Designated Market Areas: Report to Congress, 31 FCC Rcd 5463, 5465 through 66, para. 6 (2015). \65\ FY 2000 Report and Order, 15 FCC Rcd 14478, 14492, para. 34 (Commission rejected commenter's ``argu[ment] that small television stations located near large designated market areas (DMA) are assessed disproportionately high fees because the A.C. Nielsen ratings include them in the DMA but they do not serve households in the DMA. Fees for television stations are based on market size as determined by Nielsen. This is the only consistent source the Commission has for determining which market a station serves.''). --------------------------------------------------------------------------- 28. Recognizing that the Commission permitted a lesser fee for television satellite stations, we seek comment on whether we should increase the regulatory fees for broadcast satellite television stations to ensure that all television broadcasters are paying an appropriate regulatory fee based on Media Bureau FTE oversight and regulation. The circumstances that existed in 1994 when the Commission explained that it would permit consideration of a reduced fee in very limited circumstances have changed.\66\ As it relates to television satellite stations, should the satellite regulatory fee be increased to a higher percentage of standalone full-service broadcast television stations for ``remaining markets''? In particular, we seek comment on whether the fee for broadcast television satellite stations should be increased to 50 or 75 percent of the regulatory fee for remaining markets for FY 2017 applicable if the station were not a broadcast satellite station, but a full-service standalone broadcast station. Commenters supporting an increase in the broadcast satellite television fee should explain why the fee should be closer to the regular standalone full-service broadcast television fee. --------------------------------------------------------------------------- \66\ See Implementation of section 9 of the Communications Act and Assessment and Collection of Regulatory Fees of the 1994 Fiscal Year, Memorandum Opinion and Order, 10 FCC Rcd 12759, 12763, para. 21 (1995) (Applicants considered for relief ``were generally UHF stations . . . lack[ing] network affiliations . . . located outside of the principal city's metropolitan area and do not provide a Grade B signal to a substantial portion of the market's metropolitan areas. Often these stations are not carried by cable systems serving the principal metropolitan areas.''); Assessment and Collection of Regulatory Fees for Fiscal Year 1996, Report and Order, 11 FCC Rcd 18774, 18786, para. 32 (1966) (``We . . .rely on Nielsen's DMA market rankings . . . Nielsen data is generally accepted throughout the industry and will be updated and published annually . . . We will consider the equities concerning the fees of licensees that change markets on a case-by-case basis, upon request, and, where a licensee demonstrates that it does not serve its assigned market, we will consider reducing the assigned fees to a more equitable level, based upon the area actually served by the licensee.''). --------------------------------------------------------------------------- E. International Bearer Circuits 29. Historically, regulatory fees for international bearer circuits (IBCs) have been paid by facilities-based common carriers based on the number of active international bearer circuits they have in a transmission facility used to provide service to specified types of entities--specifically, by facilities-based common carriers that have active international bearer circuits in any transmission facility for the provision of service to an end user or resale carrier, which includes active circuits to themselves or to their affiliates.\67\ In 2009, the Commission revised this methodology by allocating submarine IBC costs among service providers in an equitable and competitively neutral manner, without distinguishing between common carriers and non- common carriers, and assessing a flat per cable landing license fee for all submarine cable systems.\68\ It nonetheless declined to simplify terrestrial and satellite IBCs at that time because of the ``complexity of the legal, policy and equity issues involved.'' \69\ In the FY 2016 NPRM, the Commission revisited the disparate treatment of terrestrial and satellite IBCs vis-[agrave]-vis submarine IBCs,\70\ but decided in the FY 2016 Report and Order, that the record was insufficient to change the fee methodology at that time.\71\ --------------------------------------------------------------------------- \67\ Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd 4208, 4211, para. 4 (2009) (Subcable Order). \68\ Subcable Order, 24 FCC Rcd at 4214-16, paras. 13-17. \69\ Assessment and Collection of Regulatory Fees for Fiscal Year 2009, Report and Order, 24 FCC Rcd 10301, 10306 through 07, paras. 16 through 17 (2009). \70\ FY 2016 NPRM, 31 FCC Rcd at 5764 through 65, paras. 15 through 16. \71\ FY 2016 Report and Order, 31 FCC Rcd at 10343, para. 11. --------------------------------------------------------------------------- 30. The international services marketplace has continued to evolve and we seek comment on how to update and improve our regulatory fee assessment for terrestrial and satellite IBCs to reflect these changes.\72\ We seek comment on how to make our fee assessment more efficient, equitable, and less burdensome. In particular, we seek comment on adopting a flat, per-provider fee similar to how we treat submarine cable regulatory fees, with a tiered regulatory fee methodology for terrestrial IBCs based on capacity. Similar to the regulatory fee treatment of submarine cable IBCs, under this [[Page 26026]] proposal, terrestrial and satellite IBCs would be treated the same regardless of whether they are offered on a common-carrier or non- common-carrier basis. We seek comment on this proposal and how to divide the terrestrial IBCs into categories based on capacity. --------------------------------------------------------------------------- \72\ The Commission has a pending proceeding that seeks comment on the federal need for the international services reporting requirements set forth in section 43.62 of the Commission's rules. Section 43.62 Reporting Requirements for U.S. Providers of International Services; 2016 Biennial Review of Telecommunications Regulations, IB Docket Nos. 16 through 131 and 17 through 55, Notice of Proposed Rulemaking, 32 FCC Rcd 2606 (2017). Relevant to this proceeding, the Commission seeks comment on whether there are ways to further streamline the Circuit Capacity Reports, which require providers of international telecommunications services to file annual reports identifying the submarine cable, satellite, and terrestrial capacity between the United States and foreign points. As noted below, we rely on the reporting requirements for terrestrial, satellite, and submarine cable capacity data to administer the annual regulatory fees established in section 9 of the Act. See infra at Appendix C; see 47 CFR 43.62(a)(1). --------------------------------------------------------------------------- 31. Level 3 states that non-common carrier terrestrial IBCs should not be exempt from regulatory fees, as it finds the practice to be administratively burdensome, not equitable or competitively neutral, and a disincentive to compliance with the Commission's regulatory fee rules.\73\ Level 3, for example, states that it ``spends dozens of person hours each year polling multiple systems to identify international terrestrial facilities in service, generating reports of the circuits that have been sold over those facilities, and identifying whether any of the circuits were sold on a non-common carrier basis.'' \74\ Level 3 asserts that the disparate treatment of common carrier and non-common carrier circuits is neither equitable nor competitively neutral as ``[p]roviders that offer international terrestrial service on a common carrier basis are at a significant disadvantage vis a vis providers that characterize their service as non-common carrier.'' \75\ Level 3 states that ``[c]arriers currently have a strong incentive to characterize circuits as non-common carrier circuits in order to reduce their regulatory fee burden.'' \76\ According to Level 3, a flat fee will improve compliance with the Commission's regulatory fee requirements \77\ and ``a flat-fee system will remove incentives for providers to not deploy terrestrial IBCs, or to sell international capacity over submarine cable systems instead of terrestrial IBCs.'' \78\ We seek comment on these arguments and whether we should harmonize the regulatory treatment of common carrier and non-common carrier terrestrial circuits. --------------------------------------------------------------------------- \73\ Level 3 Comments, MD Docket No. 16-166, at 5. \74\ Id. at 5. \75\ Id. at 6 (stating that ``the fact that non-common carrier circuits are `unregulated' is not relevant to the Commission's authority to collect regulatory fees on those circuits. All terrestrial IBCs are `telecommunications' subject to the Commissions' jurisdiction, and benefit from the Commissions' `international activities,' including cross-border coordination with Canada and Mexico''). \76\ Id. at 5. \77\ Id. at 5. \78\ Id. at 4. --------------------------------------------------------------------------- 32. We also seek comment on whether we should make changes to the IBC fees for satellite circuits. The number of satellite IBCs are relatively small as compared to terrestrial IBCs.\79\ We also note that in addition to being assessed regulatory fees on their common carrier and non-common carrier circuits, earth station, geostationary orbit space station, and non-geostationary orbit space station licensees pay separate regulatory fees for their facilities that are licensed and operational.\80\ We seek comment on whether there is a basis to eliminate the IBC regulatory fee for satellite providers of international communications. If we retain the IBC regulatory fees for satellite circuits, should we adopt the methodology discussed herein for assessing the number of active circuits (either only assessing fees on systems active as of December 31 of the prior year, or assessing fees on IBCs that were active at any point during the preceding calendar year)? If we adopt the proposal for a flat-fee methodology, should we apply it to satellite circuits as well as terrestrial circuits? Are there any other steps we should take to harmonize our regulatory fee treatment of terrestrial and satellite IBCs? --------------------------------------------------------------------------- \79\ For example, for data as of December 31, 2014, there were a total of 21,911,703 circuit units (64 kbps) with terrestrial circuits accounting for 99.63 percent (21,830,546) while satellite accounted for only 0.37 percent (81,157). FCC, International Bureau, 2014 U.S. International Circuit Capacity Report at 3 (IB 2016), https://apps.fcc.gov/edocs_public/attachmatch/DOC-337257A2.pdf. \80\ See infra para. 39; FY 2016 Report and Order, 31 FCC Rcd at 10356, para. 42. --------------------------------------------------------------------------- 33. We also seek comment on whether we should continue to assess regulatory fees based on IBCs that were active as of December 31 of the prior year.\81\ Commenters should discuss whether instead we should assess regulatory fees based on IBCs that were active at any point during the preceding calendar year.\82\ --------------------------------------------------------------------------- \81\ 47 CFR 43.62(a)(1); see infra at para. 30. \82\ We recognize that this could require modification of section 43.62(a)(1) of our rules and any successor rules. 47 CFR 43.62(a)(1). --------------------------------------------------------------------------- 34. Finally, we tentatively conclude that adding non-common carrier international bearer circuits to the regulatory fee schedule would be a permitted amendment as defined in section 9(b)(3) of the Act,\83\ and pursuant to section 9(b)(4)(B) must be submitted to Congress at least 90 days before it would become effective.\84\ --------------------------------------------------------------------------- \83\ 47 U.S.C. 159(b)(3). \84\ 47 U.S.C. 159(b)(4)(B). --------------------------------------------------------------------------- F. Revising the De Minimis Threshold and Eliminating Regulatory Fee Categories 35. Under the Commission's current de minimis rule for regulatory fee payments, a regulatee is exempt from paying regulatory fees if the sum total of all of its regulatory fee liabilities for annual regulatory fees is $500 or less for the fiscal year.\85\ The Commission increased the de minimis threshold from $10 to $500 in the FY 2014 Report and Order.\86\ The higher threshold reflected the estimated costs of collecting an unpaid regulatory fee, i.e., at least $350 in direct costs, and the benefits to these entities of a higher de minimis threshold. The Commission's estimate of approximately $350 excluded overhead or other costs involved in regulatory fee collection.\87\ In addition, the Commission observed that setting the de minimis threshold at $500 was unlikely to reduce fee collections to an amount below the full amount of the Commission's annual appropriation.\88\ --------------------------------------------------------------------------- \85\ FY 2014 Report and Order, 29 FCC Rcd at 10774-76, paras. 18 through 21. \86\ Id. \87\ Id., 29 FCC Rcd at 10775, para. 20 & n. 62. \88\ Id. --------------------------------------------------------------------------- 36. In the FY 2014 regulatory fee proceeding, commenters argued the threshold should be increased to $750 or $1,000.\89\ For example, ACA suggested that the Commission adopt a threshold of 1000 or fewer subscribers for cable operators and the National Association of Broadcasters (NAB) argued that the Commission should adopt a de minimis threshold of $750 or $1,000 in order to provide relief for smaller entities.\90\ These commenters explained that a higher de minimis threshold may contribute to the difference between a small operator staying in business or closing operations.\91\ NAB also observed that a higher de minimis threshold would allow stations in smaller markets to devote more resources to improved programming and signal quality.\92\ The Commission adopted a new threshold of $500 for annual regulatory fee and committed to further monitor the de minimis threshold and consider whether to increase the threshold or revise on some other basis.\93\ --------------------------------------------------------------------------- \89\ Id. \90\ Id. \91\ Id., 29 FCC Rcd at 10774 through 75, para. 19. \92\ Id. \93\ Id., 29 FCC Rcd at 10775, para. 20. --------------------------------------------------------------------------- 37. Consistent with this commitment, we seek comment on increasing the de minimis threshold to $1,000 to improve the cost effectiveness of the Commission's collection of regulatory fees and to provide regulatory fee relief to smaller entities, particularly those that have little Commission regulation or oversight.\94\ As we explained in the [[Page 26027]] FY 2014 Report and Order, smaller entities with limited funds are less likely to be able to budget for regulatory fees on a timely basis and therefore may incur late fees and consequently use more Commission resources for fee collection.\95\ The administrative burden on small regulatees, and the Commission's operational costs associated with processing and collecting these smaller fees, likely outweigh the benefits of such payments. For example, payors between $500 and $1,000 account for less than one percent of all regulatory fee payments. In addition, the cost of researching, creating, and sending a bill to a non-payer, and completing all follow-up discussion and correspondence, totals more than $350. Added to this cost is the overhead and the costs of administering the regulatory fee program.\96\ We seek comment on whether it makes sense to incur upwards of $350 in administrative costs to collect not even that much in regulatory fees that can offset the costs fees paid by other regulatees (as is the case for regulatees that owe $501 to $700). We seek comment on whether a $1,000 threshold is high enough to ensure that the regulatory fees collected from any regulatee substantially exceed the costs of collection. We invite comment whether the cost of collections and burden on small entities outweigh the associated regulatory fee payments. --------------------------------------------------------------------------- \94\ Id. (observing that many small entities ``are subject to little Commission oversight and regulation which serves to further exacerbate this inequity [of the administrative burden].''). \95\ Id. \96\ Id. --------------------------------------------------------------------------- 38. We also seek comment on whether we should include multi-year wireless licenses in the de minimis threshold. If we adopt a de minimis threshold for multi-year wireless licensees, should the threshold be fee-based, or should it be determined by the number of licenses, frequencies, or paths the licensee holds? We recognize that some entities hold many multi-year licenses and the licenses can be renewed at different times of the year. Commenters should discuss whether including multi-year licenses in the de minimis threshold would be too administratively burdensome. We also seek comment on whether we should adopt a de minimis threshold based on number of cable television subscribers, as suggested by ACA.\97\ --------------------------------------------------------------------------- \97\ ACA observes that ``exempting cable/IPTV providers serving fewer than 1,000 subscribers from the Cable/IPTV fee category would be consistent with other exemptions the Commission has created for these operators, and would serve similar purposes.'' ACA ex parte at 4. ACA suggests a progressive fee structure, with the level of rates gradually increasing based on the number of subscribers. Id. at 5 through 6. --------------------------------------------------------------------------- 39. In addition, we seek comment on eliminating regulatory fee categories, such as CMRS Messaging (Paging).\98\ This category accounts for a very small amount of regulatory fees; we seek comment on the benefits of discontinuing such collections. Commenters should discuss other changes to the regulatory fee framework that would facilitate the goal of ensuring that regulatory fees are administrable and sustainable. For example, are there categories of regulatory fee payors that now have very little Commission oversight or regulation, apart from the application fee process? We seek comment on whether there are regulatory fees adopted for some categories in the past where now there is a clear case to conclude that the fee is no longer ``reasonably related to the benefits provided to the payer of the fee by the Commission's activities . . . .'' \99\ --------------------------------------------------------------------------- \98\ The Commission has sought comment on this issue previously. See Assessment and Collection of Regulatory Fees for Fiscal Year 2014, Notice of Proposed Rulemaking, 29 FCC Rcd 6417, 6429, para. 32 (2014) (FY 2014 NPRM). \99\ 47 U.S.C. 159(b)(1)(A). We note, however, that the Communications Act provides for ``waiver, reduction, and deferment'' of a regulatory fee in any specific instance for good cause shown, where such action would promote the public interest. As a result, commenters should not focus suggestions on the merits of individual regulatory fee payors but rather improvements to the system that are consistent with Congressional directive contained in section 9 of the Communications Act. --------------------------------------------------------------------------- 40. We tentatively conclude that eliminating categories from our regulatory fee schedule would be a permitted amendment as defined in section 9(b)(3) of the Act,\100\ and pursuant to section 9(b)(4)(B) must be submitted to Congress at least 90 days before it would become effective.\101\ --------------------------------------------------------------------------- \100\ 47 U.S.C. 159(b)(3). \101\ 47 U.S.C. 159(b)(4)(B). --------------------------------------------------------------------------- G. Other Reforms 41. We also seek comment on ways to further improve our regulatory fee process to make it less burdensome for all entities. In particular, we seek comment on ways we can communicate better with smaller regulatees, such as mass emails (instead of through the U.S. Postal Service), and if we should therefore require a current email address for all regulatory fee payors. V. Procedural Matters A. Payment of Regulatory Fees 1. Checks Will Not Be Accepted for Payment of Annual Regulatory Fees 42. Pursuant to an Office of Management and Budget (OMB) directive,\102\ the Commission is moving towards a paperless environment, extending to disbursement and collection of select federal government payments and receipts.\103\ In 2015, the Commission stopped accepting checks (including cashier's checks and money orders) and the accompanying hardcopy forms (e.g., Forms 159, 159-B, 159-E, 159-W) for the payment of regulatory fees.\104\ All regulatory fee payments must be made by online Automated Clearing House (ACH) payment, online credit card, or wire transfer. Any other form of payment (e.g., checks, cashier's checks, or money orders) will be rejected. For payments by wire, a Form 159-E should still be transmitted via fax so that the Commission can associate the wire payment with the correct regulatory fee information. --------------------------------------------------------------------------- \102\ Office of Management and Budget (OMB) Memorandum M-10-06, Open Government Directive, Dec. 8, 2009; see also http://www.whitehouse.gov/the-press-office/2011/06/13/executive-order-13576-delivering-efficient-effective-and-accountable-gov. \103\ See U.S. Department of the Treasury, Open Government Plan 2.1, September 2012. \104\ FY 2015 Report and Order, 30 FCC Rcd at 10282 through 83, para. 35. See 47 CFR 1.1158. --------------------------------------------------------------------------- 2. Credit Card Transaction Levels 43. Since June 1, 2015, in accordance with U.S. Treasury Announcement No. A-2014-04 (July 2014), the amount that can be charged on a credit card for transactions with federal agencies has is $24,999.99.\105\ Transactions greater than $24,999.99 will be rejected. This limit applies to single payments or bundled payments of more than one bill. Multiple transactions to a single agency in one day may be aggregated and treated as a single transaction subject to the $24,999.99 limit. Customers who wish to pay an amount greater than $24,999.99 should consider available electronic alternatives such as Visa or MasterCard debit cards, ACH debits from a bank account, and wire transfers. Each of these payment options is available after filing regulatory fee information in Fee Filer. Further details will be provided regarding payment methods and procedures at the time of FY 2017 regulatory fee collection in Fact Sheets, available at https://www.fcc.gov/regfees. --------------------------------------------------------------------------- \105\ Customers who owe an amount on a bill, debt, or other obligation due to the federal government are prohibited from splitting the total amount due into multiple payments. Splitting an amount owed into several payment transactions violates the credit card network and Fiscal Service rules. An amount owed that exceeds the Fiscal Service maximum dollar amount, $24,999.99, may not be split into two or more payment transactions in the same day by using one or multiple cards. Also, an amount owed that exceeds the Fiscal Service maximum dollar amount may not be split into two or more transactions over multiple days by using one or more cards. --------------------------------------------------------------------------- 3. De Minimis Regulatory Fees 44. Under the Commission's present de minimis rule for regulatory fee [[Page 26028]] payments, a regulatee is exempt from paying regulatory fees if the sum total of all of its annual regulatory fee liabilities is $500 or less for the fiscal year. The de minimis threshold applies only to filers of annual regulatory fees (not regulatory fees paid through multi-year filings), and it is not a permanent exemption. Each regulatee will need to reevaluate the total annual fee liability each fiscal year to determine whether they meet the de minimis exemption. This de minimis threshold could change as a result of this Notice of Proposed Rulemaking. 4. Standard Fee Calculations and Payment Dates 45. The Commission will accept fee payments made in advance of the window for the payment of regulatory fees. The responsibility for payment of fees by service category is as follows: Media Services: Regulatory fees must be paid for initial construction permits that were granted on or before October 1, 2016 for AM/FM radio stations, VHF/UHF full service television stations, and satellite television stations. Regulatory fees must be paid for all broadcast facility licenses granted on or before October 1, 2016. Wireline (Common Carrier) Services: Regulatory fees must be paid for authorizations that were granted on or before October 1, 2016. In instances where a permit or license is transferred or assigned after October 1, 2016, responsibility for payment rests with the holder of the permit or license as of the fee due date. Audio bridging service providers are included in this category.\106\ For Responsible Organizations (RespOrgs) that manage Toll Free Numbers (TFN), regulatory fees should be paid on all working, assigned, and reserved toll free numbers as well as toll free numbers in any other status as defined in section 52.103 of the Commission's rules.\107\ The unit count should be based on toll free numbers managed by RespOrgs on or about December 31, 2016. --------------------------------------------------------------------------- \106\ Audio bridging services are toll teleconferencing services. \107\ 47 CFR 52.103. --------------------------------------------------------------------------- Wireless Services: CMRS cellular, mobile, and messaging services (fees based on number of subscribers or telephone number count): Regulatory fees must be paid for authorizations that were granted on or before October 1, 2016. The number of subscribers, units, or telephone numbers on December 31, 2016 will be used as the basis from which to calculate the fee payment. In instances where a permit or license is transferred or assigned after October 1, 2016, responsibility for payment rests with the holder of the permit or license as of the fee due date. Wireless Services, Multi-year fees: The first eight regulatory fee categories in our Schedule of Regulatory Fees pay ``small multi-year wireless regulatory fees.'' Entities pay these regulatory fees in advance for the entire amount period covered by the five-year or ten-year terms of their initial licenses, and pay regulatory fees again only when the license is renewed or a new license is obtained. We include these fee categories in our rulemaking to publicize our estimates of the number of ``small multi-year wireless'' licenses that will be renewed or newly obtained in FY 2017. Multichannel Video Programming Distributor Services (cable television operators, CARS licensees, DBS, and IPTV): Regulatory fees must be paid for the number of basic cable television subscribers as of December 31, 2016.\108\ Regulatory fees also must be paid for CARS licenses that were granted on or before October 1, 2016. In instances where a permit or license is transferred or assigned after October 1, 2016, responsibility for payment rests with the holder of the permit or license as of the fee due date. For providers of Direct Broadcast Satellite (DBS) service and IPTV-based MVPDs, regulatory fees should be paid based on a subscriber count on or about December 31, 2016. In instances where a permit or license is transferred or assigned after October 1, 2016, responsibility for payment rests with the holder of the permit or license as of the fee due date. --------------------------------------------------------------------------- \108\ Cable television system operators should compute their number of basic subscribers as follows: Number of single family dwellings + number of individual households in multiple dwelling unit (apartments, condominiums, mobile home parks, etc.) paying at the basic subscriber rate + bulk rate customers + courtesy and free service. Note: Bulk-Rate Customers = Total annual bulk-rate charge divided by basic annual subscription rate for individual households. Operators may base their count on ``a typical day in the last full week'' of December 2016, rather than on a count as of December 31, 2016. --------------------------------------------------------------------------- International Services: Regulatory fees must be paid for (1) earth stations and (2) geostationary orbit space stations and non- geostationary orbit satellite systems that were licensed and operational on or before October 1, 2016. In instances where a permit or license is transferred or assigned after October 1, 2016, responsibility for payment rests with the holder of the permit or license as of the fee due date. International Services: (Submarine Cable Systems): Regulatory fees for submarine cable systems are to be paid on a per cable landing license basis based on circuit capacity as of December 31, 2016. In instances where a license is transferred or assigned after October 1, 2016, responsibility for payment rests with the holder of the license as of the fee due date. For regulatory fee purposes, the allocation in FY 2017 will remain at 87.6 percent for submarine cable and 12.4 percent for satellite/terrestrial facilities. International Services: (Terrestrial and Satellite Services): Regulatory fees for Terrestrial and Satellite IBCs are to be paid by facilities-based common carriers that have active (used or leased) international bearer circuits as of December 31, 2016 in any terrestrial or satellite transmission facility for the provision of service to an end user or resale carrier. When calculating the number of such active circuits, the facilities-based common carriers must include circuits used by themselves or their affiliates. In addition, non-common carrier satellite operators must pay a fee for each circuit they and their affiliates hold and each circuit sold or leased to any customer, other than an international common carrier authorized by the Commission to provide U.S. international common carrier services. For these purposes, ``active circuits'' include backup and redundant circuits as of December 31, 2016. Whether circuits are used specifically for voice or data is not relevant for purposes of determining that they are active circuits.\109\ In instances where a permit or license is transferred or assigned after October 1, 2016, responsibility for payment rests with the holder of the permit or license as of the fee due date. For regulatory fee purposes, the allocation in FY 2017 will remain at 87.6 percent for submarine cable and 12.4 percent for satellite/terrestrial facilities.\110\ --------------------------------------------------------------------------- \109\ We encourage terrestrial and satellite service providers to seek guidance from the International Bureau's Telecommunications and Analysis Division to verify their particular IBC reporting processes to ensure that their calculation methods comply with our rules. \110\ We remind facilities-based common carriers to review their reporting processes to ensure that they accurately calculate and report IBCs. --------------------------------------------------------------------------- B. Commercial Mobile Radio Service (CMRS) and Mobile Services Assessments 46. The Commission will compile data from the Numbering Resource Utilization Forecast (NRUF) report that is based on ``assigned'' telephone number (subscriber) counts that have been adjusted for porting to net Type 0 ports (``in'' and ``out'').\111\ This [[Page 26029]] information of telephone numbers (subscriber count) will be posted on the Commission's electronic filing and payment system (Fee Filer) along with the carrier's Operating Company Numbers (OCNs). --------------------------------------------------------------------------- \111\ See Assessment and Collection of Regulatory Fees for Fiscal Year 2005, Report and Order and Order on Reconsideration, 20 FCC Rcd 12259, 12264, paras. 38 through 44 (2005). --------------------------------------------------------------------------- 47. A carrier wishing to revise its telephone number (subscriber) count can do so by accessing Fee Filer and follow the prompts to revise their telephone number counts. Any revisions to the telephone number counts should be accompanied by an explanation or supporting documentation.\112\ The Commission will then review the revised count and supporting documentation and either approve or disapprove the submission in Fee Filer. If the submission is disapproved, the Commission will contact the provider to afford the provider an opportunity to discuss its revised subscriber count and/or provide additional supporting documentation. If we receive no response from the provider, or we do not reverse our initial disapproval of the provider's revised count submission, the fee payment must be based on the number of subscribers listed initially in Fee Filer. Once the timeframe for revision has passed, the telephone number counts are final and are the basis upon which CMRS regulatory fees are to be paid. Providers can view their final telephone counts online in Fee Filer. A final CMRS assessment letter will not be mailed out. --------------------------------------------------------------------------- \112\ In the supporting documentation, the provider will need to state a reason for the change, such as a purchase or sale of a subsidiary, the date of the transaction, and any other pertinent information that will help to justify a reason for the change. --------------------------------------------------------------------------- 48. Because some carriers do not file the NRUF report, they may not see their telephone number counts in Fee Filer. In these instances, the carriers should compute their fee payment using the standard methodology that is currently in place for CMRS Wireless services (i.e., compute their telephone number counts as of December 31, 2016), and submit their fee payment accordingly. Whether a carrier reviews its telephone number counts in Fee Filer or not, the Commission reserves the right to audit the number of telephone numbers for which regulatory fees are paid. In the event that the Commission determines that the number of telephone numbers that are paid is inaccurate, the Commission will bill the carrier for the difference between what was paid and what should have been paid. VI. Additional Tables Table 3--Calculation of FY 2017 Revenue Requirements and Pro-Rata Fees [Regulatory fees in the first seven fee categories are collected by the Commission in advance to cover the term of the license and are submitted at the time the application is filed.] -------------------------------------------------------------------------------------------------------------------------------------------------------- FY 2016 Pro-Rated FY Computed FY Fee Category FY 2017 Payment Years Revenue 2017 Revenue 2017 Rounded FY Expected FY units estimate requirement Regulatory fee 2017 reg. fee 2017 revenue -------------------------------------------------------------------------------------------------------------------------------------------------------- PLMRS (Exclusive Use)..................... 1,300 10 625,000 326,950 25 25 325,000 PLMRS (Shared use)........................ 16,000 10 3,110,000 1,609,600 10 10 1,600,000 Microwave................................. 11,800 10 3,125,000 2,967,700 25 25 2,950,000 Marine (Ship)............................. 8,100 10 1,035,000 1,222,290 15 15 1,215,000 Aviation (Aircraft)....................... 4,200 10 470,000 422,520 10 10 420,000 Marine (Coast)............................ 150 10 192,500 60,360 40 40 60,000 Aviation (Ground)......................... 1,100 10 220,000 221,329 20 20 220,000 AM Class A \4\............................ 65 1 313,500 307,333 4,728 4,725 307,125 AM Class B \4\............................ 1,523 1 3,875,875 3,830,345 2,515 2,525 3,845,575 AM Class C \4\............................ 870 1 1,400,175 1,356,591 1,559 1,550 1,348,500 AM Class D \4\............................ 1,492 1 4,587,900 4,502,856 3,018 3,025 4,513,300 FM Classes A, B1 & C3 \4\................. 3,150 1 9,678,200 9,427,478 2,993 3,000 9,450,000 FM Classes B, C, C0, C1 & C2 \4\.......... 3,114 1 11,849,725 11,590,931 3,722 3,725 11,599,650 AM Construction Permits \1\............... 10 1 9,300 6,500 650 650 6,500 FM Construction Permits\1\................ 113 1 192,425 129,950 1,150 1,150 129,950 Satellite TV.............................. 126 1 224,000 218,654 1,735 1,725 217,350 Digital TV Markets 1-10................... 139 1 8,433,825 8,355,082 60,109 60,100 8,353,900 Digital TV Markets 11-25.................. 131 1 6,348,825 5,933,665 45,295 45,300 5,934,300 Digital TV Markets 26-50.................. 181 1 5,525,025 5,471,684 30,230 30,225 5,470,725 Digital TV Markets 51-100................. 285 1 4,301,600 4,314,986 15,140 15,150 4,317,750 Digital TV Remaining Markets.............. 367 1 1,825,000 1,818,320 4,955 4,950 1,816,650 Digital TV Construction Permits \1\....... 3 1 15,000 14,864 4,955 4,950 14,850 LPTV/Translators/Boosters/Class A TV...... 4,051 1 1,785,420 1,752,382 433 435 1,762,185 CARS Stations............................. 230 1 220,875 216,340 941 940 216,200 Cable TV Systems, including IPTV.......... 62,000,000 1 64,200,000 59,253,400 .9557 .96 59,520,000 Direct Broadcast Satellite (DBS).......... 32,500,000 1 9,180,000 12,424,100 .38 .38 12,350,000 Interstate Telecommunication Service 37,300,000,000 1 142,722,000 112,571,400 0.003018 0.00302 112,646,000 Providers................................ Toll Free Numbers......................... 32,700,000 1 4,745,000 3,947,544 0.1207 0.12 3,924,000 [[Page 26030]] CMRS Mobile Services (Cellular/Public 385,000,000 1 73,200,000 81,336,108 0.211 0.21 80,850,000 Mobile).................................. CMRS Messag. Services..................... 2,100,000 1 184,000 168,000 0.0800 0.080 168,000 BRS \2\................................... 870 1 645,250 561,398 805 805 700,350 LMDS...................................... 395 1 286,375 456,976 805 805 317,975 Per 64 kbps Int'l Bearer Circuits 26,500,000 1 638,000 791,219 .0299 .03 795,000 Terrestrial (Common) & Satellite (Common & Non-Common)............................ Submarine Cable Providers (see chart in 41.19 1 5,486,242 5,589,583 135,709 135,700 5,589,212 Appendix C) \3\.......................... Earth Stations............................ 3,400 1 1,173,000 1,228,896 361 360 1,224,000 Space Stations (Geostationary)............ 95 1 13,155,125 13,725,182 144,476 144,475 13,725,125 Space Stations (Non-Geostationary)........ 6 1 911,700 951,190 158,532 158,525 951,150 ------------------------------------------------------------------------------------------------------------- ****** Total Estimated Revenue to be ................. ......... 384,890,362 359,083,693 .............. .............. 358,855,322 Collected............................ ------------------------------------------------------------------------------------------------------------- ****** Total Revenue Requirement.. ................. ......... 384,012,497 356,710,992 .............. .............. 356,710,992 ------------------------------------------------------------------------------------------------------------- Difference.................... ................. ......... 877,865 2,372,701 .............. .............. 2,144,330 -------------------------------------------------------------------------------------------------------------------------------------------------------- Notes on Table 3 \1\ The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted, respectively, to set the regulatory fee to an amount no higher than the lowest licensed fee for that class of service. Reductions in the Digital (VHF/UHF) Construction Permit revenues, and in the AM and FM Construction Permit revenues, were offset by increases in the revenue totals for Digital television stations by market size, and in the AM and FM radio stations by class size and population served, respectively. \2\ MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands, Report & Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, para. 6 (2004). \3\ The chart at the end of Table 4 lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from the adoption of the Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Report and Order and Further Notice of Proposed Rulemaking, 24 FCC Rcd 6388 (2008) and Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd 4208 (2009). \4\ The fee amounts listed in the column entitled ``Rounded New FY 2017 Regulatory Fee'' constitute a weighted average broadcast regulatory fee by class of service. The actual FY 2017 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4. Table 4--Proposed Regulatory Fees Regulatory fees in the first eight fee categories are collected by the Commission in advance to cover the term of the license and are submitted at the time the application is filed. ------------------------------------------------------------------------ Annual Fee category regulatory fee (U.S. $'s) ------------------------------------------------------------------------ PLMRS (per license) (Exclusive Use) (47 CFR part 90). 25 Microwave (per license) (47 CFR part 101)............ 25 Marine (Ship) (per station) (47 CFR part 80)......... 15 Marine (Coast) (per license) (47 CFR part 80)........ 40 Rural Radio (47 CFR part 22) (previously listed under 10 the Land Mobile category)........................... PLMRS (Shared Use) (per license) (47 CFR part 90).... 10 Aviation (Aircraft) (per station) (47 CFR part 87)... 10 Aviation (Ground) (per license) (47 CFR part 87)..... 20 CMRS Mobile/Cellular Services (per unit) (47 CFR .21 parts 20, 22, 24, 27, 80 and 90).................... CMRS Messaging Services (per unit) (47 CFR parts 20, .08 22, 24 and 90)...................................... Broadband Radio Service (formerly MMDS/MDS) (per 805 license) (47 CFR part 27)........................... Local Multipoint Distribution Service (per call sign) 805 (47 CFR, part 101).................................. AM Radio Construction Permits........................ 650 FM Radio Construction Permits........................ 1,150 Digital TV (47 CFR part 73) VHF and UHF Commercial... ................. Markets 1-10..................................... 60,100 [[Page 26031]] Markets 11-25.................................... 45,300 Markets 26-50.................................... 30,225 Markets 51-100................................... 15,150 Remaining Markets................................ 4,950 Construction Permits............................. 4,950 Satellite Television Stations (All Markets).......... 1,725 Low Power TV, Class A TV, TV/FM Translators & 435 Boosters (47 CFR part 74)........................... CARS (47 CFR part 78)................................ 940 Cable Television Systems (per subscriber) (47 CFR .96 part 76), Including IPTV............................ Direct Broadcast Service (DBS) (per subscriber) (as .38 defined by section 602(13) of the Act).............. Interstate Telecommunication Service Providers (per .00302 revenue dollar)..................................... Toll Free (per toll free subscriber) (47 CFR section .12 52.101 (f) of the rules)............................ Earth Stations (47 CFR part 25)...................... 360 Space Stations (per operational station in 144,475 geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational station) (47 CFR part 100)................................................ Space Stations (per operational system in non- 158,525 geostationary orbit) (47 CFR part 25)............... International Bearer Circuits--Terrestrial/Satellites .03 (per 64KB circuit).................................. Submarine Cable Landing Licenses Fee (per cable See Table Below system)............................................. ------------------------------------------------------------------------ FY 2017 Radio Station Regulatory Fees -------------------------------------------------------------------------------------------------------------------------------------------------------- FM Classes B, Population served AM Class A AM Class B AM Class C AM Class D FM Classes A, C, C0, C1 & ($) ($) ($) ($) B1 & C3 ($) C2 ($) -------------------------------------------------------------------------------------------------------------------------------------------------------- <=25,000................................................ 1,050 750 650 715 1,150 1,300 25,001-75,000........................................... 1,575 1,125 975 1,075 1,725 1,950 75,001-150,000.......................................... 2,375 1,700 1,475 1,600 2,600 2,925 150,001-500,000......................................... 3,550 2,525 2,200 2,425 3,875 4,400 500,001-1,200,000....................................... 5,325 3,800 3,300 3,625 5,825 6,575 1,200,001-3,000,00...................................... 7,975 5,700 4,950 5,425 8,750 9,875 3,000,001-6,000,00...................................... 11,950 8,550 7,400 8,150 13,100 14,800 >6,000,000.............................................. 17,950 12,825 11,100 12,225 19,650 22,225 -------------------------------------------------------------------------------------------------------------------------------------------------------- International Bearer Circuits--Submarine Cable ------------------------------------------------------------------------ Submarine cable systems (capacity as of December 31, Fee amount 2016) ($) ------------------------------------------------------------------------ <2.5 Gbps............................................... 8,475 2.5 Gbps or greater, but less than 5 Gbps............... 16,975 5 Gbps or greater, but less than 10 Gbps................ 33,925 10 Gbps or greater, but less than 20 Gbps............... 67,850 20 Gbps or greater...................................... 135,700 ------------------------------------------------------------------------ Sources of Payment Unit Estimates for FY 2017 In order to calculate individual service fees for FY 2017, we adjusted FY 2016 payment units for each service to more accurately reflect expected FY 2017 payment liabilities. We obtained our updated estimates through a variety of means. For example, we used Commission licensee data bases, actual prior year payment records and industry and trade association projections when available. The databases we consulted include our Universal Licensing System (ULS), International Bureau Filing System (IBFS), Consolidated Database System (CDBS) and Cable Operations and Licensing System (COALS), as well as reports generated within the Commission such as the Wireless Telecommunications Bureau's Numbering Resource Utilization Forecast. We sought verification for these estimates from multiple sources and, in all cases, we compared FY 2017 estimates with actual FY 2016 payment units to ensure that our revised estimates were reasonable. Where appropriate, we adjusted and/or rounded our final estimates to take into consideration the fact that certain variables that impact on the number of payment units cannot yet be estimated with sufficient accuracy. These include an unknown number of waivers and/or exemptions that may occur in FY 2017 and the fact that, in many services, the number of actual licensees or station operators fluctuates from time to time due to economic, technical, or other reasons. When we note, for example, that our estimated FY 2017 payment units are based on FY 2016 actual payment units, it does not necessarily mean that our FY 2017 projection is exactly the same number as in FY 2016. We have either rounded the FY 2017 number or adjusted it slightly to account for these variables. ------------------------------------------------------------------------ Fee category Sources of payment unit estimates ------------------------------------------------------------------------ Land Mobile (All), Microwave, Based on Wireless Telecommunications Marine (Ship & Coast), Bureau (WTB) projections of new Aviation (Aircraft & applications and renewals taking into Ground), Domestic Public consideration existing Commission Fixed. 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. [[Page 26032]] CMRS Cellular/Mobile Services Based on WTB projection reports, and FY 16 payment data. CMRS Messaging Services...... Based on WTB reports, and FY 16 payment data. AM/FM Radio Stations......... Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units. Digital TV Stations (Combined Based on CDBS data, adjusted for VHF/UHF units). exemptions, and actual FY 2016 payment units. AM/FM/TV Construction Permits Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units. LPTV, Translators and Based on CDBS data, adjusted for Boosters, Class A Television. exemptions, and actual FY 2016 payment units. BRS (formerly MDS/MMDS) LMDS. Based on WTB reports and actual FY 2016 payment units. Based on WTB reports and actual FY 2016 payment units. Cable Television Relay Based on data from Media Bureau's COALS Service (CARS) Stations. database and actual FY 2016 payment units. Cable Television System Based on publicly available data sources Subscribers, Including IPTV for estimated subscriber counts and Subscribers. actual FY 2016 payment units. Interstate Telecommunication Based on FCC Form 499-Q data for the four Service Providers. quarters of calendar year 2016, the Wireline Competition Bureau projected the amount of calendar year 2016 revenue that will be reported on 2017 FCC Form 499-A worksheets due in April, 2017. Earth Stations............... Based on International Bureau (``IB'') licensing data and actual FY 2016 payment units. Space Stations (GSOs & NGSOs) Based on IB data reports and actual FY 2016 payment units. International Bearer Circuits Based on IB reports and submissions by licensees, adjusted as necessary. Submarine Cable Licenses..... Based on IB license information. ------------------------------------------------------------------------ TABLE 6--Factors, Measurements, and Calculations That Determine Station Signal Contours and Associated Population Coverages ------------------------------------------------------------------------ ------------------------------------------------------------------------- AM Stations ------------------------------------------------------------------------ For stations with nondirectional daytime antennas, the theoretical radiation was used at all azimuths. For stations with directional daytime antennas, specific information on each day tower, including field ratio, phase, spacing, and orientation was retrieved, as well as the theoretical pattern root-mean-square of the radiation in all directions in the horizontal plane (RMS) figure (milliVolt per meter (mV/m) @1 km) for the antenna system. The standard, or augmented standard if pertinent, horizontal plane radiation pattern was calculated using techniques and methods specified in sections 73.150 and 73.152 of the Commission's rules. Radiation values were calculated for each of 360 radials around the transmitter site. Next, estimated soil conductivity data was retrieved from a database representing the information in FCC Figure R3. Using the calculated horizontal radiation values, and the retrieved soil conductivity data, the distance to the principal community (5 mV/m) contour was predicted for each of the 360 radials. The resulting distance to principal community contours were used to form a geographical polygon. Population counting was accomplished by determining which 2010 block centroids were contained in the polygon. (A block centroid is the center point of a small area containing population as computed by the U.S. Census Bureau.) The sum of the population figures for all enclosed blocks represents the total population for the predicted principal community coverage area. ------------------------------------------------------------------------ FM Stations ------------------------------------------------------------------------ The greater of the horizontal or vertical effective radiated power (ERP) (kW) and respective height above average terrain (HAAT) (m) combination was used. Where the antenna height above mean sea level (HAMSL) was available, it was used in lieu of the average HAAT figure to calculate specific HAAT figures for each of 360 radials under study. Any available directional pattern information was applied as well, to produce a radial-specific ERP figure. The HAAT and ERP figures were used in conjunction with the Field Strength (50-50) propagation curves specified in 47 CFR 73.313 of the Commission's rules to predict the distance to the principal community (70 dBu (decibel above 1 microVolt per meter) or 3.17 mV/m) contour for each of the 360 radials. The resulting distance to principal community contours were used to form a geographical polygon. Population counting was accomplished by determining which 2010 block centroids were contained in the polygon. The sum of the population figures for all enclosed blocks represents the total population for the predicted principal community coverage area. ------------------------------------------------------------------------ Table 7--List of the Licensed Satellite Television Stations Based on Commission Records [all markets] ---------------------------------------------------------------------------------------------------------------- Licensee as of September FCC_ID Call sign TV market 28, 2016 ---------------------------------------------------------------------------------------------------------------- 11912.............................. KAAS-TV............... Wichita-Hutchinson, KS KSAS LICENSEE, LLC 48659.............................. KABY-TV............... Sioux Falls-Mitchell, GRAY TELEVISION LICENSEE, SD. LLC 4145............................... KAII-TV............... Honolulu, HI.......... LIN LICENSE COMPANY, LLC 13813.............................. KATN.................. Fairbanks, AK......... VISION ALASKA II LLC 48556.............................. KBIM-TV............... Albuquerque-Santa Fe, LIN OF NEW MEXICO, LLC NM. 55370.............................. KBRR.................. Fargo-Valley City, ND. RED RIVER BROADCAST CO., LLC 66414.............................. KBSD-DT............... Wichita-Hutchinson, KS GRAY TELEVISION LICENSEE, LLC 66415.............................. KBSH-DT............... Wichita-Hutchinson, KS GRAY TELEVISION LICENSEE, LLC 66416.............................. KBSL-DT............... Wichita-Hutchinson, KS GRAY TELEVISION LICENSEE, LLC 6669............................... KBTX-TV............... Waco-Temple-Bryan, TX. GRAY TELEVISION LICENSEE, LLC 35909.............................. KBVO.................. Austin, TX............ KXAN LLC 49750.............................. KCBY-TV............... Eugene, OR............ SINCLAIR EUGENE LICENSEE, LLC 9632............................... KCCO-TV............... Minneapolis-St. Paul, CBS BROADCASTING INC. MN. 9640............................... KCCW-TV............... Minneapolis-St. Paul, CBS BROADCASTING INC. MN. 18079.............................. KCFW-TV............... Missoula, MT.......... BLUESTONE LICENSE HOLDINGS INC. 41969.............................. KCLO-TV............... Rapid City, SD........ YOUNG BROADCASTING OF RAPID CITY, INC. [[Page 26033]] 60740.............................. KDKF.................. Medford-Klamath Falls, OREGON TV LICENSE COMPANY OR. LLC 41975.............................. KDLO-TV............... Sioux Falls-Mitchell, YOUNG BROADCASTING OF SIOUX SD. FALLS, INC. 55375.............................. KDLV-TV............... Sioux Falls-Mitchell, RED RIVER BROADCAST CO., SD. LLC 56029.............................. KEPR-TV............... Yakima-Pasco-Richland- SINCLAIR YAKIMA LICENSEE, Kennewick, WA. LLC 125................................ KFCT.................. Denver, CO............ TRIBUNE BROADCASTING DENVER LICENSE 21613.............................. KFNE.................. Casper-Riverton, WY... WYOMEDIA CORPORATION 21612.............................. KFNR.................. Casper-Riverton, WY... WYOMEDIA CORPORATION 83714.............................. KFTC.................. Minneapolis-St. Paul, FOX TELEVISION STATIONS, MN. LLC 7894............................... KGIN.................. Lincoln-Hastings- GRAY TELEVISION LICENSEE, Kearney, NE. LLC 36914.............................. KGMD-TV............... Honolulu, HI.......... HITV LICENSE SUBSIDIARY, INC. 36920.............................. KGMV.................. Honolulu, HI.......... HITV LICENSE SUBSIDIARY, INC. 63162.............................. KGWL-TV............... Casper-Riverton, WY... MARK III MEDIA, INC. 63170.............................. KGWR-TV............... Casper-Riverton, WY... MARK III MEDIA, INC. 4146............................... KHAW-TV............... Honolulu, HI.......... LIN LICENSE COMPANY, LLC 34846.............................. KHBC-TV............... Honolulu, HI.......... KHNL/KGMB LICENSE SUBSIDIARY, LLC 60354.............................. KHOG-TV............... Ft. Smith-Fayetteville- KHBS HEARST TELEVISION INC. Springdale-Rogers, AR. 34348.............................. KHSD-TV............... Rapid City, SD........ GRAY TELEVISION LICENSEE, LLC 64544.............................. KHVO.................. Honolulu, HI.......... KITV, INC. 55364.............................. KJRR.................. Fargo-Valley City, ND. RED RIVER BROADCAST CO., LLC 1283............................... KJWP.................. Philadelphia, PA...... PMCM TV, LLC 65523.............................. KLBY.................. Wichita-Hutchinson, KS KNOXVILLE TV LLC 664................................ KLEI-TV............... Honolulu, HI.......... MAUNA KEA BROADCASTING COMPANY, INC. 56032.............................. KLEW-TV............... Spokane, WA........... SINCLAIR LEWISTON LICENSEE, LLC 64551.............................. KMAU.................. Honolulu, HI.......... KITV, INC. 35183.............................. KMCB.................. Eugene, OR............ KMTR TELEVISION, LLC 22127.............................. KMCY.................. Minot-Bismarck- KBMY-KMCY, LLC Dickinson, ND. 41425.............................. KMOT.................. Minot-Bismarck- GRAY TELEVISION LICENSEE, Dickinson, ND. LLC 82615.............................. KNDM.................. Minot-Bismarck- LEGACY BROADCASTING, LLC Dickinson, ND. 12427.............................. KNDU.................. Yakima-Pasco-Richland- KHQ, INCORPORATED Kennewick, WA. 17683.............................. KNEP.................. Cheyenne, WY- GRAY TELEVISION LICENSEE, Scottsbluff, NE. LLC 55362.............................. KNRR.................. Fargo-Valley City, ND. RED RIVER BROADCAST CO., LLC 29557.............................. KNWA-TV............... Ft. Smith-Fayetteville NEXSTAR BROADCASTING, INC. -Springdale-Rogers, AR. 35321.............................. KOBF.................. Albuquerque-Santa Fe, KOB-TV, LLC NM. 62272.............................. KOBR.................. Albuquerque-Santa Fe, KOB-TV, LLC NM. 83181.............................. KOCW.................. Wichita-Hutchinson, KS KSAS LICENSEE, LLC 34859.............................. KOGG.................. Honolulu, HI.......... KHNL/KGMB LICENSE SUBSIDIARY, LLC 8284............................... KOTI.................. Medford-Klamath Falls, CALIFORNIA OREGON OR. BROADCASTING, INC. 61551.............................. KPIC.................. Eugene, OR............ SOUTH WEST OREGON TV BROAD. CORP. 41964.............................. KPLO-TV............... Sioux Falls-Mitchell, YOUNG BROADCASTING OF SIOUX SD. FALLS, INC. 73998.............................. KPOB-TV............... Paducah-Cape Girardeau- WSIL-TV, INC. Harrisburg-Mt Vernon. 48660.............................. KPRY-TV............... Sioux Falls-Mitchell, GRAY TELEVISION LICENSEE, SD. LLC 41430.............................. KQCD-TV............... Minot-Bismarck- GRAY TELEVISION LICENSEE, Dickinson, ND. LLC 17686.............................. KQME.................. Rapid City, SD........ LEGACY BROADCASTING OF RAPID CITY LLC 70578.............................. KREG-TV............... Denver, CO............ NEXSTAR BROADCASTING, INC. 70579.............................. KREY-TV............... Grand Junction- NEXSTAR BROADCASTING, INC. Montrose, CO. 48589.............................. KREZ-TV............... Albuquerque-Santa Fe, LIN OF COLORADO, LLC NM. 82698.............................. KRII.................. Duluth, MN-Superior, KBJR LICENSE, LLC WI. 82613.............................. KRTN-TV............... Albuquerque-Santa Fe, RAMAR COMMUNICATIONS, INC. NM. 84157.............................. KRWB-TV............... Albuquerque-Santa Fe, KASY-TV LICENSEE LLC NM. 35585.............................. KRWF.................. Minneapolis-St. Paul, KSAX-TV, INC. MN. 307................................ KSAN-TV............... San Angelo, TX........ MISSION BROADCASTING, INC. 35584.............................. KSAX.................. Minneapolis-St. Paul, KSAX-TV, INC. MN. 17680.............................. KSGW-TV............... Rapid City, SD........ GRAY TELEVISION LICENSEE, LLC 72359.............................. KSNC.................. Wichita-Hutchinson, KS LIN LICENSE COMPANY, LLC 72361.............................. KSNG.................. Wichita-Hutchinson, KS LIN LICENSE COMPANY, LLC 72362.............................. KSNK.................. Wichita-Hutchinson, KS LIN LICENSE COMPANY, LLC 63182.............................. KSTF.................. Cheyenne, WY- GRAY TELEVISION LICENSEE, Scottsbluff, NE. LLC 35187.............................. KTCW.................. Eugene, OR............ KMTR TELEVISION, LLC 68541.............................. KTRE.................. Tyler-Longview, TX.... KLTV/KTRE LICENSE SUBSIDIARY, LLC 28501.............................. KTTM.................. Sioux Falls-Mitchell, INDEPENDENT COMMUNICATIONS, SD. INC. 18066.............................. KTVM-TV............... Butte-Bozeman, MT..... BLUESTONE LICENSE HOLDINGS INC. 41429.............................. KUMV-TV............... Minot-Bismarck- GRAY TELEVISION LICENSEE, Dickinson, ND. LLC 65535.............................. KUPK.................. Wichita-Hutchinson, KS KNOXVILLE TV LLC 2495............................... KVEW.................. Yakima-Pasco-Richland- APPLE VALLEY BROADCASTING, Kennewick, WA. INC. 40450.............................. KVIH-TV............... Amarillo, TX.......... KVII LICENSEE, LLC [[Page 26034]] 33078.............................. KVTV.................. Laredo, TX............ EAGLE CREEK BROADCASTING OF LAREDO 42008.............................. KWAB-TV............... Odessa-Midland, TX.... KWES LICENSE SUBSIDIARY, LLC 21162.............................. KWNB-TV............... Lincoln-Hastings- KHGI LICENSEE, LLC Kearney, NE. 55684.............................. KXMA-TV............... Minot-Bismarck- NEXSTAR BROADCASTING, INC. Dickinson, ND. 55686.............................. KXMB-TV............... Minot-Bismarck- NEXSTAR BROADCASTING, INC. Dickinson, ND. 55683.............................. KXMD-TV............... Minot-Bismarck- NEXSTAR BROADCASTING, INC. Dickinson, ND. 60384.............................. KYLE-TV............... Waco-Temple-Bryan, TX. NEXSTAR BROADCASTING, INC. 5237............................... KYUS-TV............... Billings, MT.......... KYUS-TV BROADCASTING CORPORATION 76001.............................. WBKP.................. Marquette, MI......... LAKE SUPERIOR COMMUNITY BROAD. CORP. 69544.............................. WCCU.................. Champaign-Springfield- GOCOM MEDIA OF ILLINOIS, Decatur, IL. LLC 74419.............................. WCDC-TV............... Albany-Schenectady- YOUNG BROADCASTING OF Troy, NY. ALBANY, INC. 42116.............................. WCIX.................. Champaign-Springfield- NEXSTAR BROADCASTING, INC. Decatur, IL. 22124.............................. WDAZ-TV............... Fargo-Valley City, ND. FORUM COMMUNICATIONS COMPANY 71325.............................. WDBB.................. Birmingham, AL........ WDBB-TV, INC. 6476............................... WDPX-TV............... Boston, MA............ ION MEDIA BOSTON LICENSE, INC. 2709............................... WEUX.................. La Crosse-Eau Claire, NEXSTAR BROADCASTING, INC. WI. 60553.............................. WFTY-DT............... New York, NY.......... UNIVISION NEW YORK LLC 25395.............................. WFUP.................. Traverse City- CADILLAC TELECASTING CO. Cadillac, MI. 59279.............................. WGTQ.................. Traverse City- TRAVERSE CITY (WGTU-TV) Cadillac, MI. LICENSEE, INC. 48668.............................. WHLT.................. Hattiesburg-Laurel, MS MEDIA GENERAL COMMUNICATIONS HOLDINGS 25684.............................. WICD.................. Champaign-Springfield- WICD LICENSEE, LLC Decatur, IL. 39887.............................. WIRS.................. San Juan, PR.......... AMERICA-CV STATION GROUP, INC. 71336.............................. WIRT-DT............... Duluth, MN-Superior, WDIO-TV, LLC WI. 68519.............................. WJKT.................. Jackson, TN........... NEXSTAR BROADCASTING, INC. 86537.............................. WJLP.................. New York, NY.......... PMCM TV, LLC 9630............................... WJMN-TV............... Marquette, MI......... NEXSTAR BROADCASTING, INC. 58342.............................. WJWN-TV............... San Juan, PR.......... AMERICA-CV STATION GROUP, INC. 58341.............................. WKPV.................. San Juan, PR.......... AMERICA-CV STATION GROUP, INC. 73336.............................. WNJX-TV............... San Juan, PR.......... TELEVICENTRO OF PUERTO RICO, LLC 73344.............................. WNNE.................. Burlington, VT- HEARST STATIONS INC. Plattsburgh, NY. 16539.............................. WNTZ-TV............... Alexandria, LA........ NEXSTAR BROADCASTING, INC. 64865.............................. WORA-TV............... San Juan, PR.......... TELECINCO, INC. 48406.............................. WPXG-TV............... Boston, MA............ ION MEDIA BOSTON LICENSE, INC. 37971.............................. WPXU-TV............... Greenville-New Bern - ION MEDIA JACKSONVILLE Washington, NC. LICENSE, INC. 64550.............................. WQOW.................. La Crosse-Eau Claire, WXOW-WQOW LICENSE, LLC WI. 19776.............................. WSUR-DT............... San Juan, PR.......... WLII/WSUR LICENSE PARTNERSHIP, G.P. 26681.............................. WTIN-TV............... San Juan, PR.......... TELEVICENTRO OF PUERTO RICO, LLC 21254.............................. WTOM-TV............... Traverse City- WPBN LICENSEE, LLC Cadillac, MI. 56526.............................. WTTK.................. Indianapolis, IN...... TRIBUNE BROADCASTING INDIANAPOLIS, LLC 61573.............................. WVEO.................. San Juan, PR.......... SPANISH BROAD. SYSTEM HOLDING CO. 24812.............................. WWCW.................. Roanoke-Lynchburg, VA. NEXSTAR BROADCASTING, INC. 23264.............................. WWPX-TV............... Washington, DC........ ION MEDIA MARTINSBURG LICENSE, INC. 26993.............................. WWUP-TV............... Traverse City- HERITAGE BROAD. COMPANY OF Cadillac, MI. MICHIGAN 35582.............................. WYDO.................. Greenville-New Bern - ESTEEM BROADCASTING OF Washington, NC. NORTH CAROLINA 77789.............................. WYOW.................. Wausau-Rhinelander, WI WAOW-WYOW LICENSE, LLC 83270.............................. WZVI.................. Virgin Islands........ ALPHA BROADCASTING CORPORATION ---------------------------------------------------------------------------------------------------------------- Table 8--FY 2016 Schedule of Regulatory Fees [Regulatory fees for the categories shaded in gray are collected by the Commission in advance to cover the term of the license and are submitted at the time the application is filed.] ------------------------------------------------------------------------ Annual Fee Category regulatory fee (U.S. $s) ------------------------------------------------------------------------ PLMRS (per license) (Exclusive Use) (47 CFR part 90). 25 Microwave (per license) (47 CFR part 101)............ 25 Marine (Ship) (per station) (47 CFR part 80)......... 15 Marine (Coast) (per license) (47 CFR part 80)........ 40 Rural Radio (47 CFR part 22) (previously listed under 10 the Land Mobile category)........................... PLMRS (Shared Use) (per license) (47 CFR part 90).... 10 Aviation (Aircraft) (per station) (47 CFR part 87)... 10 Aviation (Ground) (per license) (47 CFR part 87)..... 20 CMRS Mobile/Cellular Services (per unit) (47 CFR .20 parts 20, 22, 24, 27, 80 and 90).................... CMRS Messaging Services (per unit) (47 CFR parts 20, .08 22, 24 and 90)...................................... [[Page 26035]] Broadband Radio Service (formerly MMDS/MDS) (per 725 license) (47 CFR part 27)........................... Local Multipoint Distribution Service (per call sign) 725 (47 CFR, part 101).................................. AM Radio Construction Permits........................ 620 FM Radio Construction Permits........................ 1,075 Digital TV (47 CFR part 73) VHF and UHF Commercial: Markets 1-10..................................... 60,675 Markets 11-25.................................... 45,675 Markets 26-50.................................... 30,525 Markets 51-100................................... 15,200 Remaining Markets................................ 5,000 Construction Permits............................. 5,000 Satellite Television Stations (All Markets).......... 1,750 Low Power TV, Class A TV, TV/FM Translators & 455 Boosters (47 CFR part 74)........................... CARS (47 CFR part 78)................................ 775 Cable Television Systems (per subscriber) (47 CFR 1.00 part 76), Including IPTV............................ Direct Broadcast Service (DBS) (per subscriber) (as .27 defined by section 602(13) of the Act).............. Interstate Telecommunication Service Providers (per .00371 revenue dollar)..................................... Toll Free (per toll free subscriber) (47 CFR section .13 52.101 (f) of the rules)............................ Earth Stations (47 CFR part 25)...................... 345 Space Stations (per operational station in 138,475 geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational station) (47 CFR part 100)................................................ Space Stations (per operational system in non- 151,950 geostationary orbit) (47 CFR part 25)............... International Bearer Circuits--Terrestrial/Satellites .02 (per 64KB circuit).................................. Submarine Cable Landing Licenses Fee (per cable See Table Below system)............................................. ------------------------------------------------------------------------ FY 2016 Schedule of Regulatory Fees: (continued) [FY 2016 Radio Station Regulatory Fees] -------------------------------------------------------------------------------------------------------------------------------------------------------- FM Classes B, Population served AM Class A ($) AM Class B ($) AM Class C ($) AM Class D ($) FM Classes A, C, C0, C1 & B1 & C3 ($) C2 ($) -------------------------------------------------------------------------------------------------------------------------------------------------------- <=25,000................................................ 990 715 620 685 1,075 1,250 25,001-75,000........................................... 1,475 1,075 925 1,025 1,625 1,850 75,001-150,000.......................................... 2,200 1,600 1,375 1,525 2,400 2,750 150,001-500,000......................................... 3,300 2,375 2,075 2,275 3,600 4,125 500,001-1,200,000....................................... 5,500 3,975 3,450 3,800 6,000 6,875 1,200,001-3,000,000..................................... 8,250 5,950 5,175 5,700 9,000 10,300 3,000,001-6,000,000..................................... 11,000 7,950 6,900 7,600 12,000 13,750 >6,000,000.............................................. 13,750 9,950 8,625 9,500 15,000 17,175 -------------------------------------------------------------------------------------------------------------------------------------------------------- FY 2016 Schedule of Regulatory Fees (continued) [International Bearer Circuits--Submarine Cable] ------------------------------------------------------------------------ Submarine Cable Systems (capacity as of December 31, 2015) Fee amount ------------------------------------------------------------------------ < 2.5 Gbps.............................................. $8,325 2.5 Gbps or greater, but less than 5 Gbps............... 16,650 5 Gbps or greater, but less than 10 Gbps................ 33,300 10 Gbps or greater, but less than 20 Gbps............... 66,600 20 Gbps or greater...................................... 133,200 ------------------------------------------------------------------------ VII. Initial Regulatory Flexibility Analysis 1. As required by the Regulatory Flexibility Act of 1980, as amended (RFA),\113\ the Commission prepared this Initial Regulatory Flexibility Analysis (IRFA) of the possible significant economic impact on small entities by the policies and rules proposed in the Notice of Proposed Rulemaking (NPRM). Written comments are requested on this IRFA. Comments must be identified as responses to the IRFA and must be filed by the deadline for comments on this NPRM. The Commission will send a copy of the NPRM, including the IRFA, to the NPRM and IRFA (or summaries thereof) will be published in the Federal Register.\114\ --------------------------------------------------------------------------- \113\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996). \114\ Id. --------------------------------------------------------------------------- A. Need for, and Objectives of, the Notice 2. This NPRM seeks comment regarding adopting proposed regulatory fees for Fiscal Year 2017. The proposed regulatory fees are attached to the NPRM in Table 4. This regulatory fee NPRM is needed each year because the Commission is required by Congress to adopt regulatory fees each year ``to recover the costs of . . . enforcement activities, policy and rulemaking activities, user information services, and international activities.'' \115\ The objective of this NPRM is to propose regulatory fees for fiscal year 2017 and adopt regulatory fee reform to improve the regulatory fee process. This NPRM seeks comment on the following [[Page 26036]] proposals. (i) The NPRM proposes an increase in the DBS fee rate to 38 cents per DBS subscriber so that the DBS fee would be approaching parity with the cable television/IPTV fee, based on the Media Bureau FTEs devoted to issues that include DBS. (ii) The NPRM seeks comment on revising rates for AM and FM broadcasters and further reducing rates for those broadcasters in smaller markets. (iii) The NPRM seeks comment on correctly identifying satellite television operators and ensuring that they pay the regulatory fee associated with satellite television. (iv) The NPRM seeks comment on adopting a new methodology for determining terrestrial international bearer circuit regulatory fees. (v) The NPRM seeks comment on providing additional regulatory fee relief to smaller entities by increasing the de minimis threshold from $500 to $1,000; allowing multiyear fee categories to be de minimis if the licensees' total fee for the year is no greater than the de minimis threshold; and eliminating certain fee categories from regulatory fees. (vi) The NPRM seeks comment on a proposal to reassign certain Wireline Competition Bureau FTEs and Wireless Telecommunications Bureau FTEs as indirect FTEs and reassign certain Wireline Competition Bureau FTEs as Wireless Telecommunications Bureau FTEs, for regulatory fee purposes. --------------------------------------------------------------------------- \115\ 47 U.S.C. 159(a). --------------------------------------------------------------------------- B. Legal Basis 3. This action, including publication of proposed rules, is authorized under sections (4)(i) and (j), 9, and 303(r) of the Communications Act of 1934, as amended.\116\ --------------------------------------------------------------------------- \116\ 47 U.S.C. 154(i) and (j), 159, and 303(r). --------------------------------------------------------------------------- C. Description and Estimate of the Number of Small Entities to Which the Rules Will Apply 4. The RFA directs agencies to provide a description of, and where feasible, an estimate of the number of small entities that may be affected by the proposed rules and policies, if adopted.\117\ The RFA generally defines the term ``small entity'' as having the same meaning as the terms ``small business,'' ``small organization,'' and ``small governmental jurisdiction.'' \118\ In addition, the term ``small business'' has the same meaning as the term ``small business concern'' under the Small Business Act.\119\ A ``small business concern'' is one which: (1) Is independently owned and operated; (2) is not dominant in its field of operation; and (3) satisfies any additional criteria established by the SBA.\120\ --------------------------------------------------------------------------- \117\ 5 U.S.C. 603(b)(3). \118\ 5 U.S.C. 601(6). \119\ 5 U.S.C. 601(3) (incorporating by reference the definition of ``small-business concern'' in the Small Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a small business applies ``unless an agency, after consultation with the Office of Advocacy of the Small Business Administration and after opportunity for public comment, establishes one or more definitions of such term which are appropriate to the activities of the agency and publishes such definition(s) in the Federal Register.'' \120\ 15 U.S.C. 632. --------------------------------------------------------------------------- 5. Small Entities. Our actions, over time, may affect small entities that are not easily categorized at present. We therefore describe here, at the outset, three comprehensive small entity size standards that could be directly affected by the proposals under consideration.\121\ As of 2009, small businesses represented 99.9 percent of the 27.5 million businesses in the United States, according to the SBA.\122\ In addition, a ``small organization is generally any not-for-profit enterprise which is independently owned and operated and not dominant in its field.\123\ In addition, the term ``small governmental jurisdiction'' is defined generally as ``governments of cities, towns, townships, villages, school districts, or special districts, with a population of less than fifty thousand.'' \124\ U.S. Census Bureau data for 2011 indicate that there were 90,056 local governmental jurisdictions in the United States.\125\ We estimate that, of this total, as many as 89,327 entities may qualify as ``small governmental jurisdictions.'' \126\ Thus, we estimate that most local government jurisdictions are small. --------------------------------------------------------------------------- \121\ See 5 U.S.C. 601(3) through (6). \122\ See SBA, Office of Advocacy, ``Frequently Asked Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf. \123\ 5 U.S.C. 601(4). \124\ 5 U.S.C. 601(5). \125\ See SBA, Office of Advocacy, ``Frequently Asked Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf. \126\ The 2011 U.S. Census Data for small governmental organizations are not presented based on the size of the population in each organization. As stated above, there were 90,056 local governmental organizations in 2011. As a basis for estimating how many of these 90,056 local governmental organizations were small, we note that there were a total of 729 cities and towns (incorporated places and civil divisions) with populations over 50,000. See http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. If we subtract the 729 cities and towns that exceed the 50,000 population threshold, we conclude that approximately 789,237 are small. --------------------------------------------------------------------------- 6. Wired Telecommunications Carriers. The U.S. Census Bureau defines this industry as ``establishments primarily engaged in operating and/or providing access to transmission facilities and infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using wired communications networks. Transmission facilities may be based on a single technology or a combination of technologies. Establishments in this industry use the wired telecommunications network facilities that they operate to provide a variety of services, such as wired telephony services, including VoIP services, wired (cable) audio and video programming distribution, and wired broadband internet services. By exception, establishments providing satellite television distribution services using facilities and infrastructure that they operate are included in this industry.'' \127\ The SBA has developed a small business size standard for Wired Telecommunications Carriers, which consists of all such companies having 1,500 or fewer employees.\128\ Census data for 2012 shows that there were 3,117 firms that operated that year. Of this total, 3,083 operated with fewer than 1,000 employees.\129\ Thus, under this size standard, the majority of firms in this industry can be considered small. --------------------------------------------------------------------------- \127\ See http://www.census.gov/cgi-bin/sssd/naics/naicsrch. \128\ See 13 CFR 120.201, NAICS code 517110. \129\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. --------------------------------------------------------------------------- 7. Local Exchange Carriers (LECs). Neither the Commission nor the SBA has developed a size standard for small businesses specifically applicable to local exchange services. The closest applicable NAICS code category is for Wired Telecommunications Carriers. Under that size standard, such a business is small if it has 1,500 or fewer employees.\130\ According to census data from 2012, there were 3,117 establishments that operated that year. Of this total, 3,083 operated with fewer than 1,000 employees.\131\ The Commission estimates that most providers of local exchange service are small entities that may be affected by the rules proposed in the NPRM. --------------------------------------------------------------------------- \130\ 13 CFR 121.201, NAICS code 517110. \131\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. --------------------------------------------------------------------------- 8. Incumbent LECs. Neither the Commission nor the SBA has developed a small business size standard specifically for incumbent local exchange services. The closest applicable NAICS code category is Wired Telecommunications Carriers. Under that size standard, such a business is small if it has 1,500 or fewer [[Page 26037]] employees.\132\ According to census data from 2012, 3,117 firms operated in that year. Of this total, 3,083 operated with fewer than 1,000 employees.\133\ According to Commission data, 1,307 carriers reported that they were incumbent local exchange service providers.\134\ Of this total of 1,307 incumbent local exchange service providers, an estimated 1,006 operated with 1,500 or fewer employees.\135\ Consequently, the Commission estimates that most providers of incumbent local exchange service are small businesses that may be affected by the rules proposed in this NPRM. --------------------------------------------------------------------------- \132\ 13 CFR 121.201, NAICS code 517110. \133\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \134\ See Trends in Telephone Service, Federal Communications Commission, Wireline Competition Bureau, Industry Analysis and Technology Division at Table 5.3 (September 2010) (Trends in Telephone Service). \135\ See id. --------------------------------------------------------------------------- 9. Competitive Local Exchange Carriers (Competitive LECs), Competitive Access Providers (CAPs), Shared-Tenant Service Providers, and Other Local Service Providers. Neither the Commission nor the SBA has developed a small business size standard specifically for these service providers. The appropriate NAICS code category is Wired Telecommunications Carriers. Under that size standard, such a business is small if it has 1,500 or fewer employees.\136\ U.S. Census data for 2012 indicate that 3,117 firms operated during that year. Of that number, 3,083 operated with fewer than 1,000 employees.\137\ Based on this data, the Commission concludes that the majority of Competitive LECs, CAPs, Shared-Tenant Service Providers, and Other Local Service Providers are small entities. According to the Commission data, 1,442 carriers reported that they were engaged in the provision of either competitive local exchange services or competitive access provider services.\138\ Of these 1,442 carriers, an estimated 1,256 have 1,500 or fewer employees. In addition, 17 carriers have reported that they are Shared-Tenant Service Providers, and all 17 are estimated to have 1,500 or fewer employees.\139\ Also, 72 carriers have reported that they are Other Local Service Providers.\140\ Of this total, 70 have 1,500 or fewer employees.\141\ Consequently, the Commission estimates that most providers of competitive local exchange service, competitive access providers, Shared-Tenant Service Providers, and Other Local Service Providers are small entities that may be affected by rules proposed in this NPRM. --------------------------------------------------------------------------- \136\ 13 CFR 121.201, NAICS code 517110. \137\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \138\ See Trends in Telephone Service, at Table 5.3. \139\ Id. \140\ Id. \141\ Id. --------------------------------------------------------------------------- 10. Interexchange Carriers (IXCs). Neither the Commission nor the SBA has developed a definition for Interexchange Carriers. The closest NAICS code category is Wired Telecommunications Carriers as defined in paragraph 6 of this IRFA. The applicable size standard under SBA rules is that such a business is small if it has 1,500 or fewer employees.\142\ U.S. Census data for 2012 indicate that 3,117 firms operated during that year. Of that number, 3,083 operated with fewer than 1,000 employees.\143\ According to Commission data, 359 companies reported that their primary telecommunications service activity was the provision of interexchange services.\144\ Of this total, an estimated 317 have 1,500 or fewer employees. Consequently, the Commission estimates that the majority of interexchange service providers are small entities that may be affected by rules proposed in this NPRM. --------------------------------------------------------------------------- \142\ 13 CFR 121.201, NAICS code 517110. \143\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \144\ See Trends in Telephone Service, at Table 5.3. --------------------------------------------------------------------------- 11. Prepaid Calling Card Providers. Neither the Commission nor the SBA has developed a small business size standard specifically for prepaid calling card providers. The appropriate NAICS code category for prepaid calling card providers is Telecommunications Resellers. This industry comprises establishments engaged in purchasing access and network capacity from owners and operators of telecommunications networks and reselling wired and wireless telecommunications services (except satellite) to businesses and households. Establishments in this industry resell telecommunications; they do not operate transmission facilities and infrastructure. Mobile virtual networks operators (MVNOs) are included in this industry.\145\ Under the applicable SBA size standard, such a business is small if it has 1,500 or fewer employees.\146\ U.S. Census data for 2012 show that 1,341 firms provided resale services during that year. Of that number, 1,341 operated with fewer than 1,000 employees.\147\ Thus, under this category and the associated small business size standard, the majority of these prepaid calling card providers can be considered small entities. According to Commission data, 193 carriers have reported that they are engaged in the provision of prepaid calling cards.\148\ All 193 carriers have 1,500 or fewer employees.\149\ Consequently, the Commission estimates that the majority of prepaid calling card providers are small entities that may be affected by rules proposed in this NPRM. --------------------------------------------------------------------------- \145\ http://www.census.gov/cgi-bin/ssd/naics/naicsrch. \146\ 13 CFR 121.201, NAICS code 517911. \147\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \148\ See Trends in Telephone Service, at Table 5.3. \149\ Id. --------------------------------------------------------------------------- 12. Local Resellers. Neither the Commission nor the SBA has developed a small business size standard specifically for Local Resellers. The SBA has developed a small business size standard for the category of Telecommunications Resellers. Under that size standard, such a business is small if it has 1,500 or fewer employees.\150\ Census data for 2012 show that 1,341 firms provided resale services during that year.\151\ Of that number, 1,341 operated with fewer than 1,000 employees.\152\ Under this category and the associated small business size standard, the majority of these local resellers can be considered small entities. According to Commission data, 213 carriers have reported that they are engaged in the provision of local resale services.\153\ Of this total, an estimated 211 have 1,500 or fewer employees.\154\ Consequently, the Commission estimates that the majority of local resellers are small entities that may be affected by rules proposed in this NPRM. --------------------------------------------------------------------------- \150\ 13 CFR 121.201, NAICS code 517911. \151\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \152\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \153\ See Trends in Telephone Service, at Table 5.3. \154\ Id. --------------------------------------------------------------------------- 13. Toll Resellers. The Commission has not developed a definition for Toll Resellers. The closest NAICS code Category is Telecommunications Resellers, and the SBA has developed a small business size standard for the category of Telecommunications Resellers.\155\ Under that size standard, such a business is small if it has 1,500 [[Page 26038]] or fewer employees.\156\ Census data for 2012 show that 1,341 firms provided resale services during that year.\157\ Of that number, 1,341 operated with fewer than 1,000 employees.\158\ Thus, under this category and the associated small business size standard, the majority of these resellers can be considered small entities. According to Commission data, 881 carriers have reported that they are engaged in the provision of toll resale services.\159\ Of this total, an estimated 857 have 1,500 or fewer employees.\160\ Consequently, the Commission estimates that the majority of toll resellers are small entities that may be affected by the rules proposed in the NPRM. --------------------------------------------------------------------------- \155\ 13 CFR 121.201, NAICS code 517911. \156\ Id. \157\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \158\ Id. \159\ Trends in Telephone Service at Table 5.3. \160\ Id. --------------------------------------------------------------------------- 14. Other Toll Carriers. Neither the Commission nor the SBA has developed a size standard for small businesses specifically applicable to Other Toll Carriers. This category includes toll carriers that do not fall within the categories of interexchange carriers, operator service providers, prepaid calling card providers, satellite service carriers, or toll resellers. The closest applicable NAICS code category is for Wired Telecommunications Carriers, as defined in paragraph 6 of this IRFA. Under that size standard, such a business is small if it has 1,500 or fewer employees.\161\ Census data for 2012 shows that there were 3,117 firms that operated that year.\162\ Of this total, 3,083 operated with fewer than 1,000 employees.\163\ Thus, under this category and the associated small business size standard, the majority of Other Toll Carriers can be considered small. According to Commission data, 284 companies reported that their primary telecommunications service activity was the provision of other toll carriage.\164\ Of these, an estimated 279 have 1,500 or fewer employees.\165\ Consequently, the Commission estimates that most Other Toll Carriers are small entities that may be affected by the rules proposed in the NPRM. --------------------------------------------------------------------------- \161\ 13 CFR 121.201, NAICS code 517110. \162\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \163\ Id. \164\ Trends in Telephone Service, at Table 5.3. \165\ Id. --------------------------------------------------------------------------- 15. Wireless Telecommunications Carriers (except Satellite). This industry comprises establishments engaged in operating and maintaining switching and transmission facilities to provide communications via the airwaves. Establishments in this industry have spectrum licenses and provide services using that spectrum, such as cellular services, paging services, wireless internet access, and wireless video services.\166\ The appropriate size standard under SBA rules is that such a business is small if it has 1,500 or fewer employees. For this industry, Census Data for 2012 show that there were 967 firms that operated for the entire year.\167\ Of this total, 955 firms had fewer than 1,000 employees.\168\ Thus under this category and the associated size standard, the Commission estimates that the majority of wireless telecommunications carriers (except satellite) are small entities. Similarly, according to Commission data, 413 carriers reported that they were engaged in the provision of wireless telephony, including cellular service, Personal Communications Service (PCS), and Specialized Mobile Radio (SMR) services.\169\ Of this total, an estimated 261 have 1,500 or fewer employees.\170\ Thus, using available data, we estimate that the majority of wireless firms can be considered small and may be affected by rules proposed in this NPRM. --------------------------------------------------------------------------- \166\ NAICS code 517210. See http://www.census.gov/cgi-bin/ssd/ naics/naiscsrch. \167\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \168\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \169\ Trends in Telephone Service, at Table 5.3. \170\ Id. --------------------------------------------------------------------------- 16. Television Broadcasting. This Economic Census category ``comprises establishments primarily engaged in broadcasting images together with sound. These establishments operate television broadcasting studios and facilities for the programming and transmission of programs to the public.'' \171\ These establishments also produce or transmit visual programming to affiliated broadcast television stations, which in turn broadcast the programs to the public on a predetermined schedule. Programming may originate in their own studio, from an affiliated network, or from external sources. The SBA has created the following small business size standard for Television Broadcasting firms: Those having $38.5 million or less in annual receipts.\172\ The 2012 Economic Census reports that 751 television broadcasting firms operated during that year. Of that number, 656 had annual receipts of less than $25 million per year. Based on that Census data we conclude that a majority of firms that operate television stations are small. The Commission has estimated the number of licensed commercial television stations to be 1,387.\173\ In addition, according to Commission staff review of the BIA Advisory Services, LLC's Media Access Pro Television Database on March 28, 2012, about 950 of an estimated 1,300 commercial television stations (or approximately 73 percent) had revenues of $14 million or less.\174\ We therefore estimate that the majority of commercial television broadcasters are small entities. --------------------------------------------------------------------------- \171\ U.S. Census Bureau, 2012 NAICS code Economic Definitions, http://www.census.gov.cgi-bin/sssd/naics/naicsrch. \172\ 13 CFR 121.201, NAICS code 515120. \173\ See FCC News Release, ``Broadcast Station Totals as of December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf. \174\ We recognize that BIA's estimate differs slightly from the FCC total given supra. --------------------------------------------------------------------------- 17. In assessing whether a business concern qualifies as small under the above definition, business (control) affiliations \175\ must be included. Our estimate, therefore, likely overstates the number of small entities that might be affected by our action, because the revenue figure on which it is based does not include or aggregate revenues from affiliated companies. In addition, an element of the definition of ``small business'' is that the entity not be dominant in its field of operation. We are unable at this time to define or quantify the criteria that would establish whether a specific television station is dominant in its field of operation. Accordingly, the estimate of small businesses to which rules may apply does not exclude any television station from the definition of a small business on this basis and is therefore possibly over-inclusive to that extent. --------------------------------------------------------------------------- \175\ ``[Business concerns] are affiliates of each other when one concern controls or has the power to control the other or a third party or parties controls or has to power to control both.'' 13 CFR 21.103(a)(1). --------------------------------------------------------------------------- 18. In addition, the Commission has estimated the number of licensed noncommercial educational (NCE) television stations to be 396.\176\ These stations are non-profit, and therefore considered to be small entities.\177\ There are also 2,528 low power television stations, including Class A stations [[Page 26039]] (LPTV).\178\ Given the nature of these services, we will presume that all LPTV licensees qualify as small entities under the above SBA small business size standard. --------------------------------------------------------------------------- \176\ See FCC News Release, ``Broadcast Station Totals as of December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf. \177\ See generally 5 U.S.C. 601(4), (6). \178\ See FCC News Release, ``Broadcast Station Totals as of December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf. --------------------------------------------------------------------------- 19. Radio Broadcasting. This Economic Census category ``comprises establishments primarily engaged in broadcasting aural programs by radio to the public. Programming may originate in their own studio, from an affiliated network, or from external sources.'' \179\ The SBA has established a small business size standard for this category, which is: Such firms having $38.5 million or less in annual receipts.\180\ U.S. Census data for 2012 show that 2,849 radio station firms operated during that year.\181\ Of that number, 2,806 operated with annual receipts of less than $25 million per year.\182\ According to Commission staff review of BIA Advisory Services, LLC's Media Access Pro Radio Database on March 28, 2012, about 10,759 (97%) of 11,102 commercial radio stations had revenues of $38.5 million or less. Therefore, the majority of such entities are small entities. --------------------------------------------------------------------------- \179\ http://www.census.gov.cgi-bin/sssd/naics/naicsrch. \180\ 13 CFR 121.201, NAICS code 515112. \181\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \182\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. --------------------------------------------------------------------------- 20. In assessing whether a business concern qualifies as small under the above size standard, business affiliations must be included.\183\ In addition, to be determined to be a ``small business,'' the entity may not be dominant in its field of operation.\184\ It is difficult at times to assess these criteria in the context of media entities, and our estimate of small businesses may therefore be over-inclusive. --------------------------------------------------------------------------- \183\ ``Concerns and entities are affiliates of each other when one controls or has the power to control the other, or a third party or parties controls or has the power to control both. It does not matter whether control is exercised, so long as the power to control exists.'' 13 CFR 121.103(a)(1) (an SBA regulation). \184\ 13 CFR 121.102(b) (an SBA regulation). --------------------------------------------------------------------------- 21. Cable Television and other Subscription Programming. This industry comprises establishments primarily engaged in operating studios and facilities for the broadcasting of programs on a subscription or fee basis. The broadcast programming is typically narrowcast in nature, e.g., limited format, such as news, sports, education, or youth-oriented. These establishments produce programming in their own facilities or acquire programming from external sources. The programming material is usually delivered to a third party, such as cable systems or direct-to-home satellite systems, for transmission to viewers.\185\ The SBA has established a size standard for this industry of $38.5 million or less. Census data for 2012 shows that there were 367 firms that operated that year.\186\ Of this total, 319 operated with annual receipts of less than $25 million.\187\ Thus under this size standard, the majority of firms offering cable and other program distribution services can be considered small and may be affected by rules proposed in this NPRM. --------------------------------------------------------------------------- \185\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch. \186\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. \187\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US-51SSSZ5&prodType=Table. --------------------------------------------------------------------------- 22. Cable Companies and Systems. The Commission has developed its own small business size standards for the purpose of cable rate regulation. Under the Commission's rules, a ``small cable company'' is one serving 400,000 or fewer subscribers nationwide.\188\ Industry data indicate that there are currently 4,600 active cable systems in the United States.\189\ Of this total, all but ten cable operators nationwide are small under the 400,000-subscriber size standard.\190\ In addition, under the Commission's rate regulation rules, a ``small system'' is a cable system serving 15,000 or fewer subscribers.\191\ Current Commission records show 4,600 cable systems nationwide.\192\ Of this total, 3,900 cable systems have less than 15,000 subscribers, and 700 systems have 15,000 or more subscribers, based on the same records.\193\ Thus, under this standard as well, the Commission estimates that most cable systems are small entities. --------------------------------------------------------------------------- \188\ 47 CFR 76.901(e). \189\ August 15, 2015 Report from the Media Bureau based on data contained in the Commission's Cable Operations and Licensing System (COALS). See www/fcc.gov/coals. \190\ See SNL KAGAN at www.snl.com/interactiveX/top cableMSOs aspx?period2015Q1&sortcol=subscribersbasic&sortorder=desc. \191\ 47 CFR 76.901(c). \192\ See footnote 2, supra. \193\ August 5, 2015 report from the Media Bureau based on its research in COALS. See www.fcc.gov/coals. --------------------------------------------------------------------------- 23. Cable System Operators (Telecom Act Standard). The Communications Act also contains a size standard for small cable system operators, which is ``a cable operator that, directly or through an affiliate, serves in the aggregate fewer than 1 percent of all subscribers in the United States and is not affiliated with any entity or entities whose gross annual revenues in the aggregate exceed $250,000,000.'' \194\ There are approximately 52,403,705 cable video subscribers in the United States today.\195\ Accordingly, an operator serving fewer than 524,037 subscribers shall be deemed a small operator if its annual revenues, when combined with the total annual revenues of all its affiliates, do not exceed $250 million in the aggregate.\196\ Based on available data, we find that all but nine incumbent cable operators are small entities under this size standard.\197\ The Commission neither requests nor collects information on whether cable system operators are affiliated with entities whose gross annual revenues exceed $250 million.\198\ Although it seems certain that some of these cable system operators are affiliated with entities whose gross annual revenues exceed $250,000,000, we 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. --------------------------------------------------------------------------- \194\ 47 CFR 76.901 (f) and notes ff. 1, 2, and 3. \195\ See SNL KAGAN at www.snl.com/interactivex/MultichannelIndustryBenchmarks.aspx. \196\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3. \197\ See SNL KAGAN at www.snl.com/Interactivex/TopCable MSOs.aspx. \198\ The Commission does receive such information on a case-by- case basis if a cable operator appeals a local franchise authority's finding that the operator does not qualify as a small cable operator pursuant to 47 CFR 76.901(f) of the Commission's rules. See 47 CFR 76.901(f). --------------------------------------------------------------------------- 24. Direct Broadcast Satellite (DBS) Service. DBS Service is a nationally distributed subscription service that delivers video and audio programming via satellite to a small parabolic dish antenna at the subscriber's location. DBS is now included in SBA's economic census category ``Wired Telecommunications Carriers.'' The Wired Telecommunications Carriers industry comprises establishments primarily engaged in operating and/or providing access to transmission facilities and infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using wired telecommunications networks. Transmission facilities may be based on a single technology or combination of technologies. Establishments in this industry use the wired telecommunications network facilities that they operate to provide a variety of [[Page 26040]] services, such as wired telephony services, including VOIP services, wired (cable) audio and video programming distribution; and wired broadband internet services. By exception, establishments providing satellite television distribution services using facilities and infrastructure that they operate are included in this industry.\199\ The SBA determines that a wireline business is small if it has fewer than 1500 employees.\200\ Census data for 2012 indicate that 3,117 wireline companies were operational during that year. Of that number, 3,083 operated with fewer than 1,000 employees.\201\ Based on that data, we conclude that the majority of wireline firms are small under the applicable standard. However, currently only two entities provide DBS service, which requires a great deal of capital for operation: AT&T and DISH Network.\202\ AT&T and DISH Network each report annual revenues that are in excess of the threshold for a small business. Accordingly, we must conclude that DBS service is provided only by large firms. --------------------------------------------------------------------------- \199\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch. \200\ NAICs code 517110; 13 CFR 121.201. \201\ http://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table. \202\ See 15th Annual Video Competition Report, 28 FCC Rcd at 1057, Section 27. --------------------------------------------------------------------------- 25. All Other Telecommunications. ``All Other Telecommunications'' is defined as follows: This U.S. industry is comprised of establishments that are primarily engaged in providing specialized telecommunications services, such as satellite tracking, communications telemetry, and radar station operation. This industry also includes establishments primarily engaged in providing satellite terminal stations and associated facilities connected with one or more terrestrial systems and capable of transmitting telecommunications to, and receiving telecommunications from, satellite systems. Establishments providing Internet services or Voice over Internet Protocol (VoIP) services via client-supplied telecommunications connections are also included in this industry.\203\ The SBA has developed a small business size standard for ``All Other Telecommunications,'' which consists of all such firms with gross annual receipts of $32.5 million or less.\204\ For this category, census data for 2012 show that there were 1,442 firms that operated for the entire year. Of these firms, a total of 1,400 had gross annual receipts of less than $25 million.\205\ Thus, a majority of ``All Other Telecommunications'' firms potentially affected by the proposals in the NPRM can be considered small. --------------------------------------------------------------------------- \203\ http://www.census.gov/cgi-bin/ssssd/naics/naicsrch. \204\ 13 CFR 121.201; NAICs code 517919. \205\ http://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table. --------------------------------------------------------------------------- 26. RespOrgs. Responsible Organizations, or RespOrgs, are entities chosen by toll free subscribers to manage and administer the appropriate records in the toll free Service Management System for the toll free subscriber.\206\ Although RespOrgs are often wireline carriers, they can also include non-carrier entities. Therefore, in the definition herein of RespOrgs, two categories are presented, i.e., Carrier RespOrgs and Non-Carrier RespOrgs. --------------------------------------------------------------------------- \206\ See 47 CFR 52.101(b). --------------------------------------------------------------------------- 27. Carrier RespOrgs. Neither the Commission, the U.S. Census, nor the SBA have developed a definition for Carrier RespOrgs. Accordingly, the Commission believes that the closest NAICS code-based definitional categories for Carrier RespOrgs are Wired Telecommunications Carriers,\207\ and Wireless Telecommunications Carriers (except satellite).\208\ --------------------------------------------------------------------------- \207\ 13 CFR 121.201, NAICS code 517110. \208\ Id. --------------------------------------------------------------------------- 28. The U.S. Census Bureau defines Wired Telecommunications Carriers as establishments primarily engaged in operating and/or providing access to transmission facilities and infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using wired communications networks. Transmission facilities may be based on a single technology or a combination of technologies. Establishments in this industry use the wired telecommunications network facilities that they operate to provide a variety of services, such as wired telephony services, including VoIP services, wired (cable) audio and video programming distribution, and wired broadband internet services. By exception, establishments providing satellite television distribution services using facilities and infrastructure that they operate are included in this industry.\209\ The SBA has developed a small business size standard for Wired Telecommunications Carriers, which consists of all such companies having 1,500 or fewer employees.\210\ Census data for 2012 show that there were 3,117 Wired Telecommunications Carrier firms that operated for that entire year. Of that number, 3,083 operated with less than 1,000 employees.\211\ Based on that data, we conclude that the majority of Carrier RespOrgs that operated with wireline-based technology are small. --------------------------------------------------------------------------- \209\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch. \210\ 13 CFR 120,201, NAICS code 517110. \211\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table. --------------------------------------------------------------------------- 29. The U.S. Census Bureau defines Wireless Telecommunications Carriers (except satellite) as establishments engaged in operating and maintaining switching and transmission facilities to provide communications via the airwaves, such as cellular services, paging services, wireless internet access, and wireless video services.\212\ The appropriate size standard under SBA rules is that such a business is small if it has 1,500 or fewer employees.\213\ Census data for 2012 show that 967 Wireless Telecommunications Carriers operated in that year. Of that number, 955 operated with less than 1,000 employees.\214\ Based on that data, we conclude that the majority of Carrier RespOrgs that operated with wireless-based technology are small. --------------------------------------------------------------------------- \212\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch. \213\ 13 CFR 120.201, NAICS code 517120. \214\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table. --------------------------------------------------------------------------- 30. Non-Carrier RespOrgs. Neither the Commission, the U.S. Census, nor the SBA have developed a definition of Non-Carrier RespOrgs. Accordingly, the Commission believes that the closest NAICS code-based definitional categories for Non-Carrier RespOrgs are ``Other Services Related to Advertising'' \215\ and ``Other Management Consulting Services.'' \216\ --------------------------------------------------------------------------- \215\ 13 CFR 120.201, NAICS code 541890. \216\ 13 CFR 120.201, NAICS code 541618. --------------------------------------------------------------------------- 31. The U.S. Census defines Other Services Related to Advertising as comprising establishments primarily engaged in providing advertising services (except advertising agency services, public relations agency services, media buying agency services, media representative services, display advertising services, direct mail advertising services, advertising material distribution services, and marketing consulting services).\217\ The SBA has established a size standard for this industry as annual receipts of $15 million dollars or less.\218\ Census data for 2012 show that 5,804 firms operated in this industry for the entire year. Of that number, 5,249 operated with annual receipts of less than $10 [[Page 26041]] million.\219\ Based on that data we conclude that the majority of Non- Carrier RespOrgs who provide toll-free number (TFN)-related advertising services are small. --------------------------------------------------------------------------- \217\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch. \218\ 13 CFR 120.201, NAICS code 541890. \219\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table. --------------------------------------------------------------------------- 32. The U.S. Census defines Other Management Consulting Services as establishments primarily engaged in providing management consulting services (except administrative and general management consulting; human resources consulting; marketing consulting; or process, physical distribution, and logistics consulting). Establishments providing telecommunications or utilities management consulting services are included in this industry.\220\ The SBA has established a size standard for this industry of $15 million dollars or less.\221\ Census data for 2012 show that 3,683 firms operated in this industry for that entire year. Of that number, 3,632 operated with less than $10 million in annual receipts.\222\ Based on this data, we conclude that a majority of non-carrier RespOrgs who provide TFN-related management consulting services are small.\223\ --------------------------------------------------------------------------- \220\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch. \221\ 13 CFR 120.201, NAICS code 514618. \222\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table. \223\ The four NAICS code-based categories selected above to provide definitions for Carrier and Non-Carrier RespOrgs were selected because as a group they refer generically and comprehensively to all RespOrgs. --------------------------------------------------------------------------- 33. In addition to the data contained in the four (see above) U.S. Census NAICS code categories that provide definitions of what services and functions the Carrier and Non-Carrier RespOrgs provide, Somos, the trade association that monitors RespOrg activities, compiled data showing that as of July 1, 2016 there were 23 RespOrgs operational in Canada and 436 RespOrgs operational in the United States, for a total of 459 RespOrgs currently registered with Somos. D. Description of Projected Reporting, Recordkeeping and Other Compliance Requirements 34. This NPRM does not propose any changes to the Commission's current information collection, reporting, recordkeeping, or compliance requirements. E. Steps Taken To Minimize Significant Economic Impact on Small Entities, and Significant Alternatives Considered 35. The RFA requires an agency to describe any significant alternatives that it has considered in reaching its approach, which may include the following four alternatives, among others: (1) The establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities; (2) the clarification, consolidation, or simplification of compliance or reporting requirements under the rule for small entities; (3) the use of performance, rather than design, standards; and (4) an exemption from coverage of the rule, or any part thereof, for small entities.\224\ --------------------------------------------------------------------------- \224\ 5 U.S.C. 603(c)(1) through (c)(4). --------------------------------------------------------------------------- 36. This NPRM seeks comment on the Commission's regulatory fee collection for Fiscal Year 2017, as required by Congress each year. Specifically, we ask for comments each year in the Regulatory Flexibility Analysis on how to minimize adverse economic impact, imposed by our proposed rules, on small entities. The regulatory fees proposed in this NPRM do not include any new fee categories. However, the proposal to reduce fees for smaller broadcast entities may provide financial relief to smaller entities if it is adopted. The proposal to increase the de minimis threshold from $500 to $1,000 would, if adopted, allow additional smaller entities to pay no regulatory fees if their annual total amount of fees is no greater than $1,000. The proposal to allow multiyear licenses to be de minimis based on the total amount of fees owed each year, if adopted, would allow smaller entities with multiyear licenses to pay no regulatory fees depending on the total amount owed each year. Finally, the proposal to exclude certain licenses from regulatory fees may, if adopted, provide financial relief to smaller entities because they would not have to pay regulatory fees for those particular licenses at all. F. Federal Rules That May Duplicate, Overlap, or Conflict With the Proposed Rules 37. None. VIII. Ordering Clause 38. Accordingly, it is ordered that, pursuant to section 9 of the Communications Act of 1934, as amended, 47 U.S.C. 159, this Notice of Proposed Rulemaking is hereby adopted. Federal Communications Commission. Katura Jackson, Federal Register Liasion Officer. [FR Doc. 2017-11578 Filed 6-5-17; 8:45 am] BILLING CODE 6712-01-P
![Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Proposed Rules 26019
of possible substantive changes as part CFR part 403 and achieve the following For detailed instructions for
of any reconsideration of the 2015 rule. pretreatment standards for existing submitting comments and additional
sources (PSES) by July 1, 1984. For information on the rulemaking process,
List of Subjects in 40 CFR Part 423
applicability of the requirements in see the SUPPLEMENTARY INFORMATION
Environmental protection, Electric §§ 423.16(e), (f), (g), (h), and (i), see section of this document.
power generation, Power plants, Waste § 423.10(b). FOR FURTHER INFORMATION CONTACT:
treatment and disposal, Water pollution * * * * * Roland Helvajian, Office of Managing
control. [FR Doc. 2017–11221 Filed 6–5–17; 8:45 am] Director at (202) 418–0444.
Dated: May 25, 2017. BILLING CODE 6560–50–P SUPPLEMENTARY INFORMATION: This is a
E. Scott Pruitt, summary of the Commission’s Notice of
Administrator. Proposed Rulemaking (NPRM), FCC 17–
FEDERAL COMMUNICATIONS 62, MD Docket No. 17–134 adopted on
■ Therefore, 40 CFR Chapter I is May 22, 2017 and released on May 23,
COMMISSION
proposed to be amended as follows: 2017. The full text of this document is
47 CFR Part 1 available for inspection and copying
PART 423—STEAM ELECTRIC POWER
GENERATING POINT SOURCE [MD Docket Nos. 17–134; FCC 17–62]
during normal business hours in the
FCC Reference Center, 445 12th Street
CATEGORY
Assessment and Collection of SW., Room CY–A257, Portals II,
■ 1. The authority citation for part 423 Regulatory Fees for Fiscal Year 2017 Washington, DC 20554, and may also be
continues to read as follows: purchased from the Commission’s copy
AGENCY: Federal Communications contractor, BCPI, Inc., Portals II, 445
Authority: Secs. 101; 301; 304(b), (c), (e),
and (g); 306; 307; 308 and 501, Clean Water Commission. 12th Street SW., Room CY–B402,
Act (Federal Water Pollution Control Act ACTION: Notice of proposed rulemaking. Washington, DC 20554. Customers may
Amendments of 1972, as amended; 33 U.S.C. contact BCPI, Inc. via their Web site,
1251; 1311; 1314(b), (c), (e), and (g); 1316; SUMMARY: In this document, the Federal http://www.bcpi.com, or call 1–800–
1317; 1318 and 1361). Communications Commission 378–3160. This document is available in
■ 2. Section 423.10 is amended by (Commission) will revise its Schedule of alternative formats (computer diskette,
designating the undesignated paragraph Regulatory Fees in order to recover an large print, audio record, and braille).
as paragraph (a) and adding paragraph amount of $356,710,992 that Congress Persons with disabilities who need
(b) to read as follows: has required the Commission to collect documents in these formats may contact
for fiscal year 2017, as amended, the FCC by email: FCC504@fcc.gov or
§ 423.10 Applicability. provides for the annual assessment and phone: 202–418–0530 or TTY: 202–418–
* * * * * collection of regulatory fees under and 0432.
(b) The compliance dates specified in respectively, for annual ‘‘Mandatory
Adjustments’’ and ‘‘Permitted I. Procedural Matters
§§ 423.13(g)(1)(i), (h)(1)(i), (i)(1)(i),
(j)(1)(i), and (k)(1)(i) and 423.16(e), (f), Amendments’’ to the Schedule of A. Ex Parte Rules Permit-But-Disclose
(g), (h), and (i) are postponed. Regulatory Fees. Proceeding
■ 3. Section 423.13 is amended by DATES: Submit comments on or before 1. This Notice of Proposed
revising the introductory text to read as June 22, 2017, and reply comments on Rulemaking (FY 2017 NPRM) shall be
follows: or before July 7, 2017. treated as a ‘‘permit-but-disclose’’
ADDRESSES: You may submit comments, proceeding in accordance with the
§ 423.13 Effluent limitations guidelines
representing the degree of effluent identified by MD Docket No. 17–134, by Commission’s ex parte rules. Persons
reduction attainable by the application of any of the following methods: making ex parte presentations must file
the best available technology economically • Federal eRulemaking Portal: http:// a copy of any written presentation or a
achievable (BAT). www.regulations.gov. Follow the memorandum summarizing any oral
Except as provided in 40 CFR 125.30 instructions for submitting comments. presentation within two business days
through 125.32, any existing point • Federal Communications after the presentation (unless a different
source subject to this part must achieve Commission’s Web site: http:// deadline applicable to the Sunshine
the following effluent limitations www.fcc.gov/cgb/ecfs. Follow the period applies). Persons making oral ex
representing the degree of effluent instructions for submitting comments. parte presentations are reminded that
reduction attainable by the application • People With Disabilities: Contact memoranda summarizing the
of the best available technology the FCC to request reasonable presentation must list all persons
economically achievable (BAT). For accommodations (accessible format attending or otherwise participating in
applicability of the requirements in documents, sign language interpreters, the meeting at which the ex parte
§§ 423.13(g)(1)(i), (h)(1)(i), (i)(1)(i), CART, etc.) by email: FCC504@fcc.gov presentation was made, and summarize
(j)(1)(i), and (k)(1)(i), see § 423.10(b). or phone: 202–418–0530 or TTY: 202– all data presented and arguments made
* * * * * 418–0432. during the presentation. If the
■ 4. Section 423.16 is amended by
• Email: ecfs@fcc.gov. Include MD presentation consisted in whole or in
revising the introductory text to read as Docket No. 15–121 in the subject line of part of the presentation of data or
follows: the message. arguments already reflected in the
mstockstill on DSK30JT082PROD with PROPOSALS
• Mail: Commercial overnight mail presenter’s written comments,
§ 423.16 Pretreatment standards for (other than U.S. Postal Service Express memoranda, or other filings in the
existing sources (PSES). Mail, and Priority Mail, must be sent to proceeding, the presenter may provide
Except as provided in 40 CFR 403.7 9300 East Hampton Drive, Capitol citations to such data or arguments in
and 403.13, any existing source subject Heights, MD 20743. U.S. Postal Service his or her prior comments, memoranda,
to this subpart which introduces first-class, Express, and Priority mail or other filings (specifying the relevant
pollutants into a publicly owned should be addressed to 445 12th Street page and/or paragraph numbers where
treatment works must comply with 40 SW., Washington, DC 20554. such data or arguments can be found) in
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14. The Commission has 1,431 FTEs General, and the Office of the General Service Fund not be reallocated as
funded by regulatory fees, of which 424 Counsel. indirect? If so, what portion?
are currently direct FTEs.33 Of these, 16. We propose to ‘‘adjust[ ]’’ the 18. Commenters should provide legal
167 would be allocated to Wireline allocation of these direct FTEs ‘‘to take and policy reasoning in support or
Competition Bureau regulatees, 141 into account factors that are reasonably opposition to the proposal and to the
would be allocated to Media Bureau related to the benefits provided to the alternatives. We note that the
regulatees, 92 would be allocated to payer of the fee by the Commission’s Commission has said that it ‘‘would be
Wireless Telecommunications Bureau activities . . . ’’ 36 Specifically, we inconsistent with section 9 to delay
regulatees, and 24 would be allocated to propose to reallocate the 38 FTEs reallocating . . . FTEs, where the
International Bureau regulatees.34 As associated with the non-high-cost reallocation is clearly warranted, while
programs of the Universal Service Fund we engage in painstaking examinations
explained below, we propose to
as indirect. First, we note that of less clear and more factually complex
reallocate 38 FTEs associated with
contributions to the Universal Service situations in other bureaus.’’ 38 We seek
Universal Service Fund work as indirect comment on whether reallocation is
and to reallocate four FTEs that work on Fund are not only required from
Wireline Competition Bureau regulatees clearly warranted here, and we ask
wireless numbering issues to the commenters to address the impact any
Wireless Telecommunications Bureau. but every provider using any technology
that has end-user interstate change in the allocation of FTEs will
As a result of this proposed reallocation, have on payors in other fee categories as
we project that we would collect telecommunications revenue is required
to contribute to the Universal Service well as the Commission’s goal of
approximately 32.38 percent of ensuring that regulatory fees are
regulatory fees (or $115.5 million) from Fund.37 Second, we note that three of the
distribution programs—E-Rate, Lifeline, administrable and sustainable.39
Wireline Competition Bureau
regulatees, 36.53 percent of regulatory and Rural Healthcare—tie funding 2. Reallocating FTEs Associated With
eligibility to the beneficiary, whether it Numbering
fees (or $130.3 million) from Media
be a school, a library, a low-income 19. We estimate that 7–8 FTEs in the
Bureau regulatees, 24.87 percent of
individual or family, or a rural Wireline Competition Bureau work on
regulatory fees (or $88.7 million) from
healthcare provider. None of these numbering issues. We propose to
Wireless Telecommunications Bureau
beneficiaries are Commission regulatees. ‘‘adjust[ ]’’ the allocation of these direct
regulatees, and 6.22 percent of
Third, we note that wireless carriers FTEs ‘‘to take into account factors that
regulatory fees (or $22.2 million) from now serve a substantial, if not majority,
International Bureau regulatees. are reasonably related to the benefits
of Lifeline subscribers, and satellite provided to the payer of the fee by the
1. Reallocating FTEs Associated With operators, Wi-Fi network installers, and Commission’s activities . . . .’’ 40
the Universal Service Fund fiber builders may all receive funding Specifically, we estimate approximately
through the E-Rate and Rural Healthcare half of the benefit of the work of these
15. We believe that continuing programs. Fourth, we note that treating FTEs accrue to Wireless
changes to the USF regulatory landscape these FTEs as indirect would be more Telecommunications Bureau regulatees,
requires us to reexamine the consistent with how FTEs working on who control 44.02 percent of assigned
appropriateness of treating Universal universal service issues are treated numbers under the North American
Service Fund FTEs as direct FTEs. To elsewhere in the Commission. We seek Numbering Plan 41 and 73.01 percent of
start, we estimate that there are comment on this proposal. We voice subscriptions.42 We therefore
approximately 51 FTEs in the Wireline specifically seek comment on whether propose to reallocate four of the
Competition Bureau, including the the statute requires us to impose Wireline Competition Bureau FTEs that
bureau front office, devoted to the regulatory fees on the regulatees of a work on numbering issues to the
Universal Service Fund, with 13 of single bureau even though the benefits Wireless Telecommunications Bureau as
those FTEs devoted to the high-cost provided by those FTEs accrue to direct FTEs for regulatory fee purposes.
program. We also estimate that there are regulatees of other bureaus as well as We seek comment on this proposal. We
approximately 3 FTEs in the Wireless non-regulatees. specifically seek comment on whether
Telecommunications Bureau, including 17. We also seek comment on the statute requires us to impose
the bureau front office, devoted to alternatives. Although the high-cost regulatory fees on the regulatees of a
implementing the Mobility Fund, a program has historically been tied to single bureau even though the benefits
universal service high-cost support Wireline Competition Bureau provided by those FTEs accrue to
mechanism devoted exclusively to regulatees, the Commission’s recent regulatees of another bureau.
mobile services.35 We note that other actions such as the adoption of the 20. Commenters should provide legal
FTEs throughout the Commission Mobility Fund Phase II and the Connect and policy reasoning in support or
working on universal service issues are America Fund Phase II reverse auctions opposition to the proposal, as well as
assigned as indirect FTEs. This includes open eligibility to many other providers. whether the Commission should
the many FTEs working on universal Do these recent changes justify consider any alternatives. We note that
service issues in the Enforcement reallocating the 13 Wireline the Commission has said that it ‘‘would
Bureau, the Office of the Managing Competition Bureau FTEs and three
Director, the Office of the Inspector Wireless Telecommunications Bureau 38 FY 2013 Report and Order, 28 FCC Rcd at
FTEs as indirect? Or should any such 12357–58, paras. 19 through 20.
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39 Id., 28 FCC Rcd at 12354, para 9.
33 All numbers in this paragraph are for the reallocation await the full 40 47 U.S.C. 159(b)(1)(A).
current fiscal year (starting October 1, 2016) and implementation of these reverse 41 Industry Analysis and Technology Division,
exclude auction-funded FTEs. auctions? Alternatively, should some Wireline Competition Bureau, FCC, Numbering
34 This includes space stations, earth stations, and
portion of the 38 FTEs that work on Resource Utilization in the United States NRUF
submarine cable, terrestrial, and satellite non-high-cost programs of the Universal Data as of June 30, 2010 at 12 Table 1 (2013).
international bearer circuits (IBCs). 42 Industry Analysis and Technology Division,
35 See Connect America Fund, et al., Report and Wireline Competition Bureau, FCC, Voice
36 47 U.S.C. 159(b)(1)(A).
Order and Further Notice of Proposed Rulemaking, Telephone Services: Status as of December 31, 2015
26 FCC Rcd 17663 (2011). 37 47 CFR 54.706(a). at 2 Figure 1 (2016).
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be inconsistent with section 9 to delay providers.50 During the FY 2016 supports revising the DBS regulatory fee
reallocating . . . FTEs, where the regulatory fee proceeding, commenters rate again. Specifically, we propose a
reallocation is clearly warranted, while representing the cable television regulatory fee rate of 36 cents per
we engage in painstaking examinations industry observed that the Media subscriber per year, plus two cents due
of less clear and more factually complex Bureau FTEs increasingly devote time to to the increase in the Commission’s
situations in other bureaus.’’ 43 We seek issues involving the entire MVPD budget for moving expenses, for a total
comment on whether reallocation is industry, and that DBS, cable television, of 38 cents per subscriber per year for
clearly warranted here, and we ask and IPTV all receive oversight and FY 2017, as set forth in the proposed fee
commenters to address the impact any regulation as a result of the work of the schedule in Table 4. This proposed
change in the allocation of FTEs will Media Bureau FTEs on MVPD issues.51 incremental increase of approximately
have on payors in these two fee Recognizing this, in the FY 2016 Report one cent per subscriber per month
categories as well as the Commission’s and Order, the Commission increased would result in bringing the DBS
goal of ensuring that regulatory fees are the regulatory fee for DBS providers to industry regulatory fees closer to those
administrable and sustainable.44 24 cents, plus an across-the-board for cable television/IPTV. We seek
increase of three cents for the comment on this proposal.
B. Direct Broadcast Satellite (DBS)
Commission’s moving expenses, for a
Regulatory Fees C. Broadcaster Regulatory Fees
total of 27 cents per subscriber, per
21. The proposed fee schedule year.52 The increase was adopted in 24. In the FY 2016 NPRM, the
includes an updated regulatory fee for response to the increase in DBS Commission proposed to include a
DBS, a subcategory in the cable oversight and regulation due to Media higher population row in the table for
television and IPTV category.45 In 2015, Bureau rulemakings regarding MVPD AM and FM broadcasters,56 to
the Commission adopted an initial issues.53 Nevertheless, the FY 2016 fee standardize the incremental increase in
regulatory fee for DBS, as a subcategory of 27 cents per subscriber adopted last fees,57 and to better assess fees based on
in the cable television and IPTV year, increased from 12 cents, was still the type and class of service.58 The
category, of 12 cents per year per significantly below parity with the cable Commission also proposed to adjust the
subscriber, or one cent per month.46 At television/IPTV rate of $1.00 per year.54 television broadcasters table so that Top
that time, the Commission committed to 23. Based on our updated analysis of 10 market stations paid approximately
updating the regulatory fee rate for FY the cable television/IPTV category, we twice what stations in markets 26–50
2016, as necessary for ensuring an find Media Bureau resources devoted to paid.59 In response to the FY 2016
appropriate level of regulatory parity MVPD proceedings, including DBS,55 NPRM, several commenters contended
with cable television and IPTV and that the proposed regulatory fees were
considering the Media Bureau resources 50 FY 2015 NPRM, 30 FCC Rcd at 5367 through too burdensome for small independent
dedicated to this subcategory.47 Such 68, para. 31. See, e.g., Video Description: stations.60 After reviewing the record,
Implementation of the Twenty-First Century including the comments filed by the
examination is consistent with a report Communications and Video Accessibility Act of
issued by the Government 2010, Notice of Proposed Rulemaking, 31 FCC Rcd
industry identifying the economic
Accountability Office (GAO) in 2012, 2463 (2016); Amendment to the Commission’s hardship faced by small independent
which observed it is important for the Rules Concerning Market Modification, radio stations, the Commission adopted
Implementation of Section 102 of the STELA a revised version of the proposed table
Commission to ‘‘regularly update Reauthorization Act of 2014, Report and Order, 30
analyses to ensure that fees are set based FCC Rcd 10406 (2015); Implementation of Section
and reduced the regulatory fees in the
on relevant information.’’ 48 103 of the STELA Reauthorization Act of 2014, two lowest population tiers for AM and
22. DBS service is a nationally Notice of Proposed Rulemaking, 30 FCC Rcd 10327 FM broadcasters from the rates
(2015); Implementation of the Commercial
distributed subscription service that Advertisement, Loudness Mitigation (CALM) Act,
delivers video and audio programming and Memorandum Opinion and Order, 31 FCC Rcd
Report and Order, 26 FCC Rcd 17222 (2011) (CALM 1544 (2016); Promoting the Availability of Diverse
via satellite to a small parabolic dish Act Report and Order). and Independent Sources of Video Programming,
antenna at the subscriber’s location. The 51 American Cable Association (ACA) Comments
Notice of Inquiry, 31 FCC Rcd 1610 (2016);
two DBS providers, AT&T and DISH at 3–11 (filed in MD Docket No. 16–166); National Expansion of Online Public File Obligations to
Cable & Telecommunications Association (NCTA) Cable and Satellite TV Operators and Broadcast
Network, are multichannel video Reply Comments at 3–7 (filed in MD Docket No. and Satellite Radio Licensees, Report and Order, 31
programming distributors (MVPDs).49 16–166). FCC Rcd 526 (2016); Amendment of the
When the Commission adopted this 52 FY 2016 Report and Order, 31 FCC Rcd at Commission’s Rules Concerning Market
regulatory fee subcategory, it recognized 10348 through 49, para. 26. Modification; Implementation of Section 102 of the
53 Id., 31 FCC Rcd at 10348 through 49, para. 26. STELA Reauthorization Act of 2014, Report and
numerous recent regulatory Order, 30 FCC Rcd 10406 (2015).
Commenters representing the cable industry
developments increased Media Bureau continue to observe that ‘‘[w]hile cable, IPTV, and 56 FY 2016 NPRM, 31 FCC Rcd at 5762 through
FTE activity involving regulation and DBS providers are not regulated identically, they 63, para. 12. The Commission also sought comment
oversight of MVPDs, including DBS offer similar multichannel video services, on this issue in the Further Notice of Proposed
participate in the same proceedings at the same Rulemaking attached to the FY 2015 Report and
43 FY 2013 Report and Order, 28 FCC Rcd at level in terms of the number of filings and meetings, Order. See FY 2015 Report and Order, 30 FCC Rcd
and benefit in a similar fashion from Media Bureau at 10280, para. 28.
12357–58, paras. 19 through 20.
44 Id., 28 FCC Rcd at 12354, para 9.
regulation of MVPDs.’’ See Letter from Barbara 57 Id. Specifically, the Commission sought
Esbin, Cinnamon Mueller, attorney for ACA, to comment on standardizing the incremental increase
45 DBS also pays a regulatory fee per operational
Marlene H. Dortch, Secretary, Federal in fees as radio broadcasters increase the population
station in geostationary orbit. Communications Commission (Dec. 16, 2016) (ACA they serve, such as by requiring that fee adjustments
46 Assessment and Collection of Regulatory Fees
ex parte) at 1. between tiers monotonically increase as the
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for Fiscal Year 2015, Report and Order and Further 54 The agency is not required to calculate its costs population served increases. Id.
Notice of Proposed Rulemaking, 30 FCC Rcd 10268, with ‘‘scientific precision.’’ Central & Southern 58 Id.
10276–77, paras. 19 through 20 (2015) (FY 2015 Motor Freight Tariff Ass’n v. United States, 777 59 FY 2016 NPRM, 31 FCC Rcd at 5763 through
Report and Order). F.2d 722, 736 (D.C. Cir. 1985). Reasonable 64, para. 13. The Commission also sought comment
47 FY 2015 Report and Order, 30 FCC Rcd at
approximations will suffice. Id.; National Cable on this issue in the Further Notice of Proposed
10277, para. 20. Television Ass’n v. FCC, 554 F.2d 1094, 1105 (D.C. Rulemaking attached to the FY 2015 Report and
48 GAO Report at 12, available at http:// Cir. 1976). Order. See FY 2015 Report and Order, 30 FCC Rcd
www.gao.gov/products/GAO-12-686. 55 See, e.g., Expanding Consumers’ Video at 10280 through 81, para. 29.
49 MVPD is defined in section 602(13) of the Act, Navigation Choices, Commercial Availability of 60 FY 2016 Report and Order, 31 FCC Rcd at
47 U.S.C. 522(13). Navigation Devices, Notice of Proposed Rulemaking 10351, para. 32.
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unaware of the existence of any reliable Bureau. We invite comment on the service to an end user or resale carrier,
published source that can identify accuracy of this list. which includes active circuits to
which television stations are serving 28. Recognizing that the Commission themselves or to their affiliates.67 In
small markets at the fringe of larger permitted a lesser fee for television 2009, the Commission revised this
DMA’s.65 In a particular situation, the satellite stations, we seek comment on methodology by allocating submarine
licensee of a broadcast television whether we should increase the IBC costs among service providers in an
satellite station that is not carried by regulatory fees for broadcast satellite equitable and competitively neutral
cable, satellite, or alternate methods, television stations to ensure that all manner, without distinguishing between
may have signal contours that cover the television broadcasters are paying an common carriers and non-common
fringes of a DMA (generally, rural appropriate regulatory fee based on carriers, and assessing a flat per cable
Media Bureau FTE oversight and landing license fee for all submarine
communities), whereas other full-
regulation. The circumstances that cable systems.68 It nonetheless declined
service TV stations have greater over-
existed in 1994 when the Commission to simplify terrestrial and satellite IBCs
the-air coverage of the DMA market. As explained that it would permit at that time because of the ‘‘complexity
a result, advertisers may devote more consideration of a reduced fee in very of the legal, policy and equity issues
commercial spending to other full- limited circumstances have changed.66 involved.’’ 69 In the FY 2016 NPRM, the
service TV stations rather than to the As it relates to television satellite Commission revisited the disparate
more limited broadcast television stations, should the satellite regulatory treatment of terrestrial and satellite IBCs
satellite stations in the same DMA fee be increased to a higher percentage vis-à-vis submarine IBCs,70 but decided
market. Such broadcast television of standalone full-service broadcast in the FY 2016 Report and Order, that
satellite stations may originate their television stations for ‘‘remaining the record was insufficient to change the
own programming, multicast their markets’’? In particular, we seek fee methodology at that time.71
broadcasts, and with cable or satellite comment on whether the fee for 30. The international services
carriage, provide programming to the broadcast television satellite stations marketplace has continued to evolve
entire DMA market. For purposes of should be increased to 50 or 75 percent and we seek comment on how to update
paying regulatory fees, the Commission of the regulatory fee for remaining and improve our regulatory fee
identifies those stations that it deems to markets for FY 2017 applicable if the assessment for terrestrial and satellite
be broadcast satellite television stations station were not a broadcast satellite IBCs to reflect these changes.72 We seek
based on Consolidated Data Base station, but a full-service standalone comment on how to make our fee
System (CDBS) and other Media Bureau broadcast station. Commenters assessment more efficient, equitable,
data. However, some stations claim to supporting an increase in the broadcast and less burdensome. In particular, we
operate as ‘‘satellites,’’ and pay a lower satellite television fee should explain seek comment on adopting a flat, per-
regulatory fee ($1,750 in FY 2016), why the fee should be closer to the provider fee similar to how we treat
although they have not been officially regular standalone full-service broadcast submarine cable regulatory fees, with a
granted satellite status by the television fee. tiered regulatory fee methodology for
Commission. Because satellite status E. International Bearer Circuits terrestrial IBCs based on capacity.
may be derived only as a result of Similar to the regulatory fee treatment of
29. Historically, regulatory fees for submarine cable IBCs, under this
Commission action, only stations international bearer circuits (IBCs) have
granted such status by the Commission been paid by facilities-based common 67 Assessment and Collection of Regulatory Fees
may pay the satellite television carriers based on the number of active for Fiscal Year 2008, Second Report and Order, 24
regulatory fee; other stations that claim international bearer circuits they have FCC Rcd 4208, 4211, para. 4 (2009) (Subcable
such status must pay the fee for a full- in a transmission facility used to Order).
service station. Attached in Appendix E provide service to specified types of
68 Subcable Order, 24 FCC Rcd at 4214–16, paras.
is a list of the bona fide licensed 13–17.
entities—specifically, by facilities-based 69 Assessment and Collection of Regulatory Fees
broadcast satellite television stations, common carriers that have active for Fiscal Year 2009, Report and Order, 24 FCC Rcd
according to the Media Bureau records. international bearer circuits in any 10301, 10306 through 07, paras. 16 through 17
This list is generated from the transmission facility for the provision of (2009).
70 FY 2016 NPRM, 31 FCC Rcd at 5764 through
Commission’s CDBS and other
65, paras. 15 through 16.
information provided to the Media 66 See Implementation of section 9 of the
71 FY 2016 Report and Order, 31 FCC Rcd at
Communications Act and Assessment and
Collection of Regulatory Fees of the 1994 Fiscal 10343, para. 11.
Commission has for determining which market a Year, Memorandum Opinion and Order, 10 FCC
72 The Commission has a pending proceeding that
station serves.’’). See also Amendment to the Rcd 12759, 12763, para. 21 (1995) (Applicants seeks comment on the federal need for the
Commission’s Rules Concerning Market considered for relief ‘‘were generally UHF stations international services reporting requirements set
Modification, 30 FCC Rcd 10406, para. 6, n. 19 . . . lack[ing] network affiliations . . . located forth in section 43.62 of the Commission’s rules.
(2015) (‘‘The Nielsen Company delineates television outside of the principal city’s metropolitan area and Section 43.62 Reporting Requirements for U.S.
markets by assigning each U.S. county (except for do not provide a Grade B signal to a substantial Providers of International Services; 2016 Biennial
certain counties in Alaska) to one market based on portion of the market’s metropolitan areas. Often Review of Telecommunications Regulations, IB
measured viewing patterns both off-air and via these stations are not carried by cable systems Docket Nos. 16 through 131 and 17 through 55,
MVPD distribution.’’); Designated Market Areas: serving the principal metropolitan areas.’’); Notice of Proposed Rulemaking, 32 FCC Rcd 2606
Report to Congress, 31 FCC Rcd 5463, 5465 through Assessment and Collection of Regulatory Fees for (2017). Relevant to this proceeding, the Commission
66, para. 6 (2015). Fiscal Year 1996, Report and Order, 11 FCC Rcd seeks comment on whether there are ways to further
65 FY 2000 Report and Order, 15 FCC Rcd 14478, streamline the Circuit Capacity Reports, which
18774, 18786, para. 32 (1966) (‘‘We . . .rely on
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14492, para. 34 (Commission rejected commenter’s Nielsen’s DMA market rankings . . . Nielsen data require providers of international
‘‘argu[ment] that small television stations located is generally accepted throughout the industry and telecommunications services to file annual reports
near large designated market areas (DMA) are will be updated and published annually . . . We identifying the submarine cable, satellite, and
assessed disproportionately high fees because the will consider the equities concerning the fees of terrestrial capacity between the United States and
A.C. Nielsen ratings include them in the DMA but licensees that change markets on a case-by-case foreign points. As noted below, we rely on the
they do not serve households in the DMA. Fees for basis, upon request, and, where a licensee reporting requirements for terrestrial, satellite, and
television stations are based on market size as demonstrates that it does not serve its assigned submarine cable capacity data to administer the
determined by Nielsen. This is the only consistent market, we will consider reducing the assigned fees annual regulatory fees established in section 9 of
source the Commission has for determining which to a more equitable level, based upon the area the Act. See infra at Appendix C; see 47 CFR
market a station serves.’’). actually served by the licensee.’’). 43.62(a)(1).
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proposal, terrestrial and satellite IBCs compared to terrestrial IBCs.79 We also all of its regulatory fee liabilities for
would be treated the same regardless of note that in addition to being assessed annual regulatory fees is $500 or less for
whether they are offered on a common- regulatory fees on their common carrier the fiscal year.85 The Commission
carrier or non-common-carrier basis. We and non-common carrier circuits, earth increased the de minimis threshold
seek comment on this proposal and how station, geostationary orbit space from $10 to $500 in the FY 2014 Report
to divide the terrestrial IBCs into station, and non-geostationary orbit and Order.86 The higher threshold
categories based on capacity. space station licensees pay separate reflected the estimated costs of
regulatory fees for their facilities that are collecting an unpaid regulatory fee, i.e.,
31. Level 3 states that non-common
licensed and operational.80 We seek at least $350 in direct costs, and the
carrier terrestrial IBCs should not be
comment on whether there is a basis to benefits to these entities of a higher de
exempt from regulatory fees, as it finds
eliminate the IBC regulatory fee for minimis threshold. The Commission’s
the practice to be administratively estimate of approximately $350
satellite providers of international
burdensome, not equitable or excluded overhead or other costs
communications. If we retain the IBC
competitively neutral, and a involved in regulatory fee collection.87
regulatory fees for satellite circuits,
disincentive to compliance with the In addition, the Commission observed
should we adopt the methodology
Commission’s regulatory fee rules.73 that setting the de minimis threshold at
discussed herein for assessing the
Level 3, for example, states that it $500 was unlikely to reduce fee
number of active circuits (either only
‘‘spends dozens of person hours each collections to an amount below the full
assessing fees on systems active as of
year polling multiple systems to identify amount of the Commission’s annual
December 31 of the prior year, or
international terrestrial facilities in appropriation.88
assessing fees on IBCs that were active
service, generating reports of the circuits at any point during the preceding 36. In the FY 2014 regulatory fee
that have been sold over those facilities, calendar year)? If we adopt the proposal proceeding, commenters argued the
and identifying whether any of the for a flat-fee methodology, should we threshold should be increased to $750
circuits were sold on a non-common apply it to satellite circuits as well as or $1,000.89 For example, ACA
carrier basis.’’ 74 Level 3 asserts that the terrestrial circuits? Are there any other suggested that the Commission adopt a
disparate treatment of common carrier steps we should take to harmonize our threshold of 1000 or fewer subscribers
and non-common carrier circuits is regulatory fee treatment of terrestrial for cable operators and the National
neither equitable nor competitively and satellite IBCs? Association of Broadcasters (NAB)
neutral as ‘‘[p]roviders that offer 33. We also seek comment on whether argued that the Commission should
international terrestrial service on a we should continue to assess regulatory adopt a de minimis threshold of $750 or
common carrier basis are at a significant fees based on IBCs that were active as $1,000 in order to provide relief for
disadvantage vis a vis providers that of December 31 of the prior year.81 smaller entities.90 These commenters
characterize their service as non- Commenters should discuss whether explained that a higher de minimis
common carrier.’’ 75 Level 3 states that instead we should assess regulatory fees threshold may contribute to the
‘‘[c]arriers currently have a strong based on IBCs that were active at any difference between a small operator
incentive to characterize circuits as non- point during the preceding calendar staying in business or closing
common carrier circuits in order to year.82 operations.91 NAB also observed that a
reduce their regulatory fee burden.’’ 76 34. Finally, we tentatively conclude higher de minimis threshold would
According to Level 3, a flat fee will that adding non-common carrier allow stations in smaller markets to
improve compliance with the international bearer circuits to the devote more resources to improved
Commission’s regulatory fee regulatory fee schedule would be a programming and signal quality.92 The
requirements 77 and ‘‘a flat-fee system permitted amendment as defined in Commission adopted a new threshold of
will remove incentives for providers to section 9(b)(3) of the Act,83 and $500 for annual regulatory fee and
not deploy terrestrial IBCs, or to sell pursuant to section 9(b)(4)(B) must be committed to further monitor the de
international capacity over submarine submitted to Congress at least 90 days minimis threshold and consider
cable systems instead of terrestrial before it would become effective.84 whether to increase the threshold or
IBCs.’’ 78 We seek comment on these revise on some other basis.93
arguments and whether we should F. Revising the De Minimis Threshold 37. Consistent with this commitment,
harmonize the regulatory treatment of and Eliminating Regulatory Fee we seek comment on increasing the de
Categories minimis threshold to $1,000 to improve
common carrier and non-common
35. Under the Commission’s current the cost effectiveness of the
carrier terrestrial circuits.
de minimis rule for regulatory fee Commission’s collection of regulatory
32. We also seek comment on whether fees and to provide regulatory fee relief
we should make changes to the IBC fees payments, a regulatee is exempt from
paying regulatory fees if the sum total of to smaller entities, particularly those
for satellite circuits. The number of that have little Commission regulation
satellite IBCs are relatively small as 79 For example, for data as of December 31, 2014, or oversight.94 As we explained in the
there were a total of 21,911,703 circuit units (64
73 Level 85 FY 2014 Report and Order, 29 FCC Rcd at
3 Comments, MD Docket No. 16–166, at kbps) with terrestrial circuits accounting for 99.63
5. percent (21,830,546) while satellite accounted for 10774–76, paras. 18 through 21.
86 Id.
74 Id.
at 5. only 0.37 percent (81,157). FCC, International
75 Id.
at 6 (stating that ‘‘the fact that non-common Bureau, 2014 U.S. International Circuit Capacity 87 Id., 29 FCC Rcd at 10775, para. 20 & n. 62.
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carrier circuits are ‘unregulated’ is not relevant to Report at 3 (IB 2016), https://apps.fcc.gov/ 88 Id.
the Commission’s authority to collect regulatory edocs_public/attachmatch/DOC-337257A2.pdf. 89 Id.
80 See infra para. 39; FY 2016 Report and Order,
fees on those circuits. All terrestrial IBCs are 90 Id.
‘telecommunications’ subject to the Commissions’ 31 FCC Rcd at 10356, para. 42. 91 Id., 29 FCC Rcd at 10774 through 75, para. 19.
jurisdiction, and benefit from the Commissions’ 81 47 CFR 43.62(a)(1); see infra at para. 30. 92 Id.
‘international activities,’ including cross-border 82 We recognize that this could require 93 Id., 29 FCC Rcd at 10775, para. 20.
coordination with Canada and Mexico’’). modification of section 43.62(a)(1) of our rules and 94 Id. (observing that many small entities ‘‘are
76 Id. at 5. any successor rules. 47 CFR 43.62(a)(1). subject to little Commission oversight and
77 Id. at 5. 83 47 U.S.C. 159(b)(3).
regulation which serves to further exacerbate this
78 Id. at 4. 84 47 U.S.C. 159(b)(4)(B). inequity [of the administrative burden].’’).
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information of telephone numbers afford the provider an opportunity to In these instances, the carriers should
(subscriber count) will be posted on the discuss its revised subscriber count and/ compute their fee payment using the
Commission’s electronic filing and or provide additional supporting standard methodology that is currently
payment system (Fee Filer) along with documentation. If we receive no in place for CMRS Wireless services
the carrier’s Operating Company response from the provider, or we do (i.e., compute their telephone number
Numbers (OCNs). not reverse our initial disapproval of the counts as of December 31, 2016), and
47. A carrier wishing to revise its provider’s revised count submission, the submit their fee payment accordingly.
telephone number (subscriber) count fee payment must be based on the Whether a carrier reviews its telephone
can do so by accessing Fee Filer and number of subscribers listed initially in number counts in Fee Filer or not, the
follow the prompts to revise their Fee Filer. Once the timeframe for Commission reserves the right to audit
telephone number counts. Any revisions revision has passed, the telephone the number of telephone numbers for
to the telephone number counts should number counts are final and are the which regulatory fees are paid. In the
be accompanied by an explanation or basis upon which CMRS regulatory fees event that the Commission determines
supporting documentation.112 The are to be paid. Providers can view their that the number of telephone numbers
Commission will then review the final telephone counts online in Fee that are paid is inaccurate, the
revised count and supporting Filer. A final CMRS assessment letter Commission will bill the carrier for the
documentation and either approve or will not be mailed out. difference between what was paid and
disapprove the submission in Fee Filer. 48. Because some carriers do not file what should have been paid.
If the submission is disapproved, the the NRUF report, they may not see their
Commission will contact the provider to telephone number counts in Fee Filer. VI. Additional Tables
TABLE 3—CALCULATION OF FY 2017 REVENUE REQUIREMENTS AND PRO-RATA FEES
[Regulatory fees in the first seven fee categories are collected by the Commission in advance to cover the term of the license and are submitted
at the time the application is filed.]
FY 2016 Pro-Rated FY Computed FY Rounded Expected
FY 2017 Payment
Fee Category Years Revenue 2017 Revenue 2017 Regu- FY 2017 FY 2017
units estimate requirement latory fee reg. fee revenue
PLMRS (Exclusive Use) 1,300 10 625,000 326,950 25 25 325,000
PLMRS (Shared use) ..... 16,000 10 3,110,000 1,609,600 10 10 1,600,000
Microwave ...................... 11,800 10 3,125,000 2,967,700 25 25 2,950,000
Marine (Ship) ................. 8,100 10 1,035,000 1,222,290 15 15 1,215,000
Aviation (Aircraft) ........... 4,200 10 470,000 422,520 10 10 420,000
Marine (Coast) ............... 150 10 192,500 60,360 40 40 60,000
Aviation (Ground) ........... 1,100 10 220,000 221,329 20 20 220,000
AM Class A 4 .................. 65 1 313,500 307,333 4,728 4,725 307,125
AM Class B 4 .................. 1,523 1 3,875,875 3,830,345 2,515 2,525 3,845,575
AM Class C 4 .................. 870 1 1,400,175 1,356,591 1,559 1,550 1,348,500
AM Class D 4 .................. 1,492 1 4,587,900 4,502,856 3,018 3,025 4,513,300
FM Classes A, B1 & C3 4 3,150 1 9,678,200 9,427,478 2,993 3,000 9,450,000
FM Classes B, C, C0,
C1 & C2 4 ................... 3,114 1 11,849,725 11,590,931 3,722 3,725 11,599,650
AM Construction Per-
mits 1 ........................... 10 1 9,300 6,500 650 650 6,500
FM Construction Per-
mits1 ........................... 113 1 192,425 129,950 1,150 1,150 129,950
Satellite TV ..................... 126 1 224,000 218,654 1,735 1,725 217,350
Digital TV Markets 1–10 139 1 8,433,825 8,355,082 60,109 60,100 8,353,900
Digital TV Markets 11–
25 ................................ 131 1 6,348,825 5,933,665 45,295 45,300 5,934,300
Digital TV Markets 26–
50 ................................ 181 1 5,525,025 5,471,684 30,230 30,225 5,470,725
Digital TV Markets 51–
100 .............................. 285 1 4,301,600 4,314,986 15,140 15,150 4,317,750
Digital TV Remaining
Markets ....................... 367 1 1,825,000 1,818,320 4,955 4,950 1,816,650
Digital TV Construction
Permits 1 ..................... 3 1 15,000 14,864 4,955 4,950 14,850
LPTV/Translators/Boost-
ers/Class A TV ........... 4,051 1 1,785,420 1,752,382 433 435 1,762,185
CARS Stations ............... 230 1 220,875 216,340 941 940 216,200
Cable TV Systems, in-
cluding IPTV ............... 62,000,000 1 64,200,000 59,253,400 .9557 .96 59,520,000
Direct Broadcast Satellite
mstockstill on DSK30JT082PROD with PROPOSALS
(DBS) .......................... 32,500,000 1 9,180,000 12,424,100 .38 .38 12,350,000
Interstate Telecommuni-
cation Service Pro-
viders .......................... 37,300,000,000 1 142,722,000 112,571,400 0.003018 0.00302 112,646,000
Toll Free Numbers ......... 32,700,000 1 4,745,000 3,947,544 0.1207 0.12 3,924,000
Order on Reconsideration, 20 FCC Rcd 12259, 112 In the supporting documentation, the provider transaction, and any other pertinent information
12264, paras. 38 through 44 (2005). will need to state a reason for the change, such as that will help to justify a reason for the change.
a purchase or sale of a subsidiary, the date of the
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![26030 Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Proposed Rules
TABLE 3—CALCULATION OF FY 2017 REVENUE REQUIREMENTS AND PRO-RATA FEES—Continued
[Regulatory fees in the first seven fee categories are collected by the Commission in advance to cover the term of the license and are submitted
at the time the application is filed.]
FY 2016 Pro-Rated FY Computed FY Rounded Expected
FY 2017 Payment
Fee Category Years Revenue 2017 Revenue 2017 Regu- FY 2017 FY 2017
units estimate requirement latory fee reg. fee revenue
CMRS Mobile Services
(Cellular/Public Mobile) 385,000,000 1 73,200,000 81,336,108 0.211 0.21 80,850,000
CMRS Messag. Services 2,100,000 1 184,000 168,000 0.0800 0.080 168,000
BRS 2 ..............................
LMDS ............................. 870 1 645,250 561,398 805 805 700,350
395 1 286,375 456,976 805 805 317,975
Per 64 kbps Int’l Bearer
Circuits Terrestrial
(Common) & Satellite
(Common & Non-Com-
mon) ........................... 26,500,000 1 638,000 791,219 .0299 .03 795,000
Submarine Cable Pro-
viders (see chart in
Appendix C) 3 ............. 41.19 1 5,486,242 5,589,583 135,709 135,700 5,589,212
Earth Stations ................ 3,400 1 1,173,000 1,228,896 361 360 1,224,000
Space Stations (Geo-
stationary) ................... 95 1 13,155,125 13,725,182 144,476 144,475 13,725,125
Space Stations (Non-
Geostationary) ............ 6 1 911,700 951,190 158,532 158,525 951,150
****** Total Esti-
mated Revenue to
be Collected ........ .............................. ................ 384,890,362 359,083,693 ........................ ........................ 358,855,322
****** Total Rev-
enue Re-
quirement ..... .............................. ................ 384,012,497 356,710,992 ........................ ........................ 356,710,992
Difference .............................. ................ 877,865 2,372,701 ........................ ........................ 2,144,330
Notes on Table 3
1 The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted, respectively, to set
the regulatory fee to an amount no higher than the lowest licensed fee for that class of service. Reductions in the Digital (VHF/UHF) Construction
Permit revenues, and in the AM and FM Construction Permit revenues, were offset by increases in the revenue totals for Digital television sta-
tions by market size, and in the AM and FM radio stations by class size and population served, respectively.
2 MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission’s
Rules to Facilitate the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150–2162 and 2500–
2690 MHz Bands, Report & Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, para. 6 (2004).
3 The chart at the end of Table 4 lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted
from the adoption of the Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Report and Order and Further Notice of Proposed
Rulemaking, 24 FCC Rcd 6388 (2008) and Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24
FCC Rcd 4208 (2009).
4 The fee amounts listed in the column entitled ‘‘Rounded New FY 2017 Regulatory Fee’’ constitute a weighted average broadcast regulatory
fee by class of service. The actual FY 2017 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4.
TABLE 4—PROPOSED REGULATORY FEES
Regulatory fees in the first eight fee categories are collected by the Commission in advance to cover the term of the license and are submitted at
the time the application is filed.
Annual
Fee category regulatory fee
(U.S. $’s)
PLMRS (per license) (Exclusive Use) (47 CFR part 90) .............................................................................................................. 25
Microwave (per license) (47 CFR part 101) .................................................................................................................................. 25
Marine (Ship) (per station) (47 CFR part 80) ................................................................................................................................ 15
Marine (Coast) (per license) (47 CFR part 80) ............................................................................................................................. 40
Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category) ..................................................................... 10
PLMRS (Shared Use) (per license) (47 CFR part 90) .................................................................................................................. 10
Aviation (Aircraft) (per station) (47 CFR part 87) .......................................................................................................................... 10
mstockstill on DSK30JT082PROD with PROPOSALS
Aviation (Ground) (per license) (47 CFR part 87) ......................................................................................................................... 20
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90) ................................................................. .21
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90) .................................................................................... .08
Broadband Radio Service (formerly MMDS/MDS) (per license) (47 CFR part 27) ...................................................................... 805
Local Multipoint Distribution Service (per call sign) (47 CFR, part 101) ...................................................................................... 805
AM Radio Construction Permits .................................................................................................................................................... 650
FM Radio Construction Permits .................................................................................................................................................... 1,150
Digital TV (47 CFR part 73) VHF and UHF Commercial ..............................................................................................................
Markets 1–10 .......................................................................................................................................................................... 60,100
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Fee category Sources of payment unit estimates
CMRS Cellular/Mobile Services ......................... Based on WTB projection reports, and FY 16 payment data.
CMRS Messaging Services ................................ Based on WTB reports, and FY 16 payment data.
AM/FM Radio Stations ........................................ Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units.
Digital TV Stations (Combined VHF/UHF units) Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units.
AM/FM/TV Construction Permits ........................ Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units.
LPTV, Translators and Boosters, Class A Tele- Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units.
vision.
BRS (formerly MDS/MMDS) LMDS .................... Based on WTB reports and actual FY 2016 payment units. Based on WTB reports and actual
FY 2016 payment units.
Cable Television Relay Service (CARS) Sta- Based on data from Media Bureau’s COALS database and actual FY 2016 payment units.
tions.
Cable Television System Subscribers, Including Based on publicly available data sources for estimated subscriber counts and actual FY 2016
IPTV Subscribers. payment units.
Interstate Telecommunication Service Providers Based on FCC Form 499–Q data for the four quarters of calendar year 2016, the Wireline
Competition Bureau projected the amount of calendar year 2016 revenue that will be re-
ported on 2017 FCC Form 499–A worksheets due in April, 2017.
Earth Stations ..................................................... Based on International Bureau (‘‘IB’’) licensing data and actual FY 2016 payment units.
Space Stations (GSOs & NGSOs) ..................... Based on IB data reports and actual FY 2016 payment units.
International Bearer Circuits ............................... Based on IB reports and submissions by licensees, adjusted as necessary.
Submarine Cable Licenses ................................. Based on IB license information.
TABLE 6—FACTORS, MEASUREMENTS, AND CALCULATIONS THAT DETERMINE STATION SIGNAL CONTOURS AND
ASSOCIATED POPULATION COVERAGES
AM Stations
For stations with nondirectional daytime antennas, the theoretical radiation was used at all azimuths. For stations with directional daytime anten-
nas, specific information on each day tower, including field ratio, phase, spacing, and orientation was retrieved, as well as the theoretical pat-
tern root-mean-square of the radiation in all directions in the horizontal plane (RMS) figure (milliVolt per meter (mV/m) @1 km) for the an-
tenna system. The standard, or augmented standard if pertinent, horizontal plane radiation pattern was calculated using techniques and
methods specified in sections 73.150 and 73.152 of the Commission’s rules. Radiation values were calculated for each of 360 radials around
the transmitter site. Next, estimated soil conductivity data was retrieved from a database representing the information in FCC Figure R3.
Using the calculated horizontal radiation values, and the retrieved soil conductivity data, the distance to the principal community (5 mV/m)
contour was predicted for each of the 360 radials. The resulting distance to principal community contours were used to form a geographical
polygon. Population counting was accomplished by determining which 2010 block centroids were contained in the polygon. (A block centroid
is the center point of a small area containing population as computed by the U.S. Census Bureau.) The sum of the population figures for all
enclosed blocks represents the total population for the predicted principal community coverage area.
FM Stations
The greater of the horizontal or vertical effective radiated power (ERP) (kW) and respective height above average terrain (HAAT) (m) combina-
tion was used. Where the antenna height above mean sea level (HAMSL) was available, it was used in lieu of the average HAAT figure to
calculate specific HAAT figures for each of 360 radials under study. Any available directional pattern information was applied as well, to
produce a radial-specific ERP figure. The HAAT and ERP figures were used in conjunction with the Field Strength (50–50) propagation
curves specified in 47 CFR 73.313 of the Commission’s rules to predict the distance to the principal community (70 dBu (decibel above 1 mi-
croVolt per meter) or 3.17 mV/m) contour for each of the 360 radials. The resulting distance to principal community contours were used to
form a geographical polygon. Population counting was accomplished by determining which 2010 block centroids were contained in the pol-
ygon. The sum of the population figures for all enclosed blocks represents the total population for the predicted principal community coverage
area.
TABLE 7—LIST OF THE LICENSED SATELLITE TELEVISION STATIONS BASED ON COMMISSION RECORDS
[all markets]
FCC_ID Call sign TV market Licensee as of September 28, 2016
11912 .................. KAAS–TV .............. Wichita-Hutchinson, KS .............. KSAS LICENSEE, LLC
48659 .................. KABY–TV .............. Sioux Falls-Mitchell, SD .............. GRAY TELEVISION LICENSEE, LLC
4145 .................... KAII–TV ................. Honolulu, HI ................................ LIN LICENSE COMPANY, LLC
13813 .................. KATN ..................... Fairbanks, AK ............................. VISION ALASKA II LLC
48556 .................. KBIM–TV ............... Albuquerque-Santa Fe, NM ........ LIN OF NEW MEXICO, LLC
55370 .................. KBRR ..................... Fargo-Valley City, ND ................. RED RIVER BROADCAST CO., LLC
66414 .................. KBSD–DT .............. Wichita-Hutchinson, KS .............. GRAY TELEVISION LICENSEE, LLC
mstockstill on DSK30JT082PROD with PROPOSALS
66415 .................. KBSH–DT .............. Wichita-Hutchinson, KS .............. GRAY TELEVISION LICENSEE, LLC
66416 .................. KBSL-DT ............... Wichita-Hutchinson, KS .............. GRAY TELEVISION LICENSEE, LLC
6669 .................... KBTX–TV ............... Waco-Temple-Bryan, TX ............ GRAY TELEVISION LICENSEE, LLC
35909 .................. KBVO ..................... Austin, TX ................................... KXAN LLC
49750 .................. KCBY–TV .............. Eugene, OR ................................ SINCLAIR EUGENE LICENSEE, LLC
9632 .................... KCCO–TV .............. Minneapolis-St. Paul, MN ........... CBS BROADCASTING INC.
9640 .................... KCCW–TV ............. Minneapolis-St. Paul, MN ........... CBS BROADCASTING INC.
18079 .................. KCFW–TV ............. Missoula, MT .............................. BLUESTONE LICENSE HOLDINGS INC.
41969 .................. KCLO–TV .............. Rapid City, SD ............................ YOUNG BROADCASTING OF RAPID CITY, INC.
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![Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Proposed Rules 26033
TABLE 7—LIST OF THE LICENSED SATELLITE TELEVISION STATIONS BASED ON COMMISSION RECORDS—Continued
[all markets]
FCC_ID Call sign TV market Licensee as of September 28, 2016
60740 .................. KDKF ..................... Medford-Klamath Falls, OR ........ OREGON TV LICENSE COMPANY LLC
41975 .................. KDLO–TV .............. Sioux Falls-Mitchell, SD .............. YOUNG BROADCASTING OF SIOUX FALLS, INC.
55375 .................. KDLV–TV ............... Sioux Falls-Mitchell, SD .............. RED RIVER BROADCAST CO., LLC
56029 .................. KEPR–TV .............. Yakima-Pasco-Richland- SINCLAIR YAKIMA LICENSEE, LLC
Kennewick, WA.
125 ...................... KFCT ..................... Denver, CO ................................. TRIBUNE BROADCASTING DENVER LICENSE
21613 .................. KFNE ..................... Casper-Riverton, WY .................. WYOMEDIA CORPORATION
21612 .................. KFNR ..................... Casper-Riverton, WY .................. WYOMEDIA CORPORATION
83714 .................. KFTC ..................... Minneapolis-St. Paul, MN ........... FOX TELEVISION STATIONS, LLC
7894 .................... KGIN ...................... Lincoln-Hastings-Kearney, NE .... GRAY TELEVISION LICENSEE, LLC
36914 .................. KGMD–TV ............. Honolulu, HI ................................ HITV LICENSE SUBSIDIARY, INC.
36920 .................. KGMV .................... Honolulu, HI ................................ HITV LICENSE SUBSIDIARY, INC.
63162 .................. KGWL–TV ............. Casper-Riverton, WY .................. MARK III MEDIA, INC.
63170 .................. KGWR–TV ............. Casper-Riverton, WY .................. MARK III MEDIA, INC.
4146 .................... KHAW–TV ............. Honolulu, HI ................................ LIN LICENSE COMPANY, LLC
34846 .................. KHBC–TV .............. Honolulu, HI ................................ KHNL/KGMB LICENSE SUBSIDIARY, LLC
60354 .................. KHOG–TV ............. Ft. Smith-Fayetteville-Springdale- KHBS HEARST TELEVISION INC.
Rogers, AR.
34348 .................. KHSD–TV .............. Rapid City, SD ............................ GRAY TELEVISION LICENSEE, LLC
64544 .................. KHVO .................... Honolulu, HI ................................ KITV, INC.
55364 .................. KJRR ..................... Fargo-Valley City, ND ................. RED RIVER BROADCAST CO., LLC
1283 .................... KJWP ..................... Philadelphia, PA ......................... PMCM TV, LLC
65523 .................. KLBY ..................... Wichita-Hutchinson, KS .............. KNOXVILLE TV LLC
664 ...................... KLEI–TV ................ Honolulu, HI ................................ MAUNA KEA BROADCASTING COMPANY, INC.
56032 .................. KLEW–TV .............. Spokane, WA .............................. SINCLAIR LEWISTON LICENSEE, LLC
64551 .................. KMAU .................... Honolulu, HI ................................ KITV, INC.
35183 .................. KMCB .................... Eugene, OR ................................ KMTR TELEVISION, LLC
22127 .................. KMCY .................... Minot-Bismarck-Dickinson, ND ... KBMY–KMCY, LLC
41425 .................. KMOT .................... Minot-Bismarck-Dickinson, ND ... GRAY TELEVISION LICENSEE, LLC
82615 .................. KNDM .................... Minot-Bismarck-Dickinson, ND ... LEGACY BROADCASTING, LLC
12427 .................. KNDU .................... Yakima-Pasco-Richland- KHQ, INCORPORATED
Kennewick, WA.
17683 .................. KNEP ..................... Cheyenne, WY-Scottsbluff, NE .. GRAY TELEVISION LICENSEE, LLC
55362 .................. KNRR .................... Fargo-Valley City, ND ................. RED RIVER BROADCAST CO., LLC
29557 .................. KNWA–TV ............. Ft. Smith-Fayetteville -Spring- NEXSTAR BROADCASTING, INC.
dale-Rogers, AR.
35321 .................. KOBF ..................... Albuquerque-Santa Fe, NM ........ KOB–TV, LLC
62272 .................. KOBR .................... Albuquerque-Santa Fe, NM ........ KOB–TV, LLC
83181 .................. KOCW ................... Wichita-Hutchinson, KS .............. KSAS LICENSEE, LLC
34859 .................. KOGG .................... Honolulu, HI ................................ KHNL/KGMB LICENSE SUBSIDIARY, LLC
8284 .................... KOTI ...................... Medford-Klamath Falls, OR ........ CALIFORNIA OREGON BROADCASTING, INC.
61551 .................. KPIC ...................... Eugene, OR ................................ SOUTH WEST OREGON TV BROAD. CORP.
41964 .................. KPLO–TV .............. Sioux Falls-Mitchell, SD .............. YOUNG BROADCASTING OF SIOUX FALLS, INC.
73998 .................. KPOB–TV .............. Paducah-Cape Girardeau-Harris- WSIL–TV, INC.
burg-Mt Vernon.
48660 .................. KPRY–TV .............. Sioux Falls-Mitchell, SD .............. GRAY TELEVISION LICENSEE, LLC
41430 .................. KQCD–TV .............. Minot-Bismarck-Dickinson, ND ... GRAY TELEVISION LICENSEE, LLC
17686 .................. KQME .................... Rapid City, SD ............................ LEGACY BROADCASTING OF RAPID CITY LLC
70578 .................. KREG–TV .............. Denver, CO ................................. NEXSTAR BROADCASTING, INC.
70579 .................. KREY–TV .............. Grand Junction-Montrose, CO .... NEXSTAR BROADCASTING, INC.
48589 .................. KREZ–TV .............. Albuquerque-Santa Fe, NM ........ LIN OF COLORADO, LLC
82698 .................. KRII ........................ Duluth, MN-Superior, WI ............ KBJR LICENSE, LLC
82613 .................. KRTN–TV .............. Albuquerque-Santa Fe, NM ........ RAMAR COMMUNICATIONS, INC.
84157 .................. KRWB–TV ............. Albuquerque-Santa Fe, NM ........ KASY–TV LICENSEE LLC
35585 .................. KRWF .................... Minneapolis-St. Paul, MN ........... KSAX–TV, INC.
307 ...................... KSAN–TV .............. San Angelo, TX .......................... MISSION BROADCASTING, INC.
35584 .................. KSAX ..................... Minneapolis-St. Paul, MN ........... KSAX–TV, INC.
17680 .................. KSGW–TV ............. Rapid City, SD ............................ GRAY TELEVISION LICENSEE, LLC
72359 .................. KSNC ..................... Wichita-Hutchinson, KS .............. LIN LICENSE COMPANY, LLC
72361 .................. KSNG .................... Wichita-Hutchinson, KS .............. LIN LICENSE COMPANY, LLC
72362 .................. KSNK ..................... Wichita-Hutchinson, KS .............. LIN LICENSE COMPANY, LLC
63182 .................. KSTF ..................... Cheyenne, WY-Scottsbluff, NE .. GRAY TELEVISION LICENSEE, LLC
mstockstill on DSK30JT082PROD with PROPOSALS
35187 .................. KTCW .................... Eugene, OR ................................ KMTR TELEVISION, LLC
68541 .................. KTRE ..................... Tyler-Longview, TX ..................... KLTV/KTRE LICENSE SUBSIDIARY, LLC
28501 .................. KTTM ..................... Sioux Falls-Mitchell, SD .............. INDEPENDENT COMMUNICATIONS, INC.
18066 .................. KTVM–TV .............. Butte-Bozeman, MT .................... BLUESTONE LICENSE HOLDINGS INC.
41429 .................. KUMV–TV .............. Minot-Bismarck-Dickinson, ND ... GRAY TELEVISION LICENSEE, LLC
65535 .................. KUPK ..................... Wichita-Hutchinson, KS .............. KNOXVILLE TV LLC
2495 .................... KVEW .................... Yakima-Pasco-Richland- APPLE VALLEY BROADCASTING, INC.
Kennewick, WA.
40450 .................. KVIH–TV ................ Amarillo, TX ................................ KVII LICENSEE, LLC
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![26034 Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Proposed Rules
TABLE 7—LIST OF THE LICENSED SATELLITE TELEVISION STATIONS BASED ON COMMISSION RECORDS—Continued
[all markets]
FCC_ID Call sign TV market Licensee as of September 28, 2016
33078 .................. KVTV ..................... Laredo, TX .................................. EAGLE CREEK BROADCASTING OF LAREDO
42008 .................. KWAB–TV ............. Odessa-Midland, TX ................... KWES LICENSE SUBSIDIARY, LLC
21162 .................. KWNB–TV ............. Lincoln-Hastings-Kearney, NE .... KHGI LICENSEE, LLC
55684 .................. KXMA–TV .............. Minot-Bismarck-Dickinson, ND ... NEXSTAR BROADCASTING, INC.
55686 .................. KXMB–TV .............. Minot-Bismarck-Dickinson, ND ... NEXSTAR BROADCASTING, INC.
55683 .................. KXMD–TV .............. Minot-Bismarck-Dickinson, ND ... NEXSTAR BROADCASTING, INC.
60384 .................. KYLE–TV ............... Waco-Temple-Bryan, TX ............ NEXSTAR BROADCASTING, INC.
5237 .................... KYUS–TV .............. Billings, MT ................................. KYUS–TV BROADCASTING CORPORATION
76001 .................. WBKP .................... Marquette, MI .............................. LAKE SUPERIOR COMMUNITY BROAD. CORP.
69544 .................. WCCU ................... Champaign-Springfield-Decatur, GOCOM MEDIA OF ILLINOIS, LLC
IL.
74419 .................. WCDC–TV ............. Albany-Schenectady-Troy, NY ... YOUNG BROADCASTING OF ALBANY, INC.
42116 .................. WCIX ..................... Champaign-Springfield-Decatur, NEXSTAR BROADCASTING, INC.
IL.
22124 .................. WDAZ–TV ............. Fargo-Valley City, ND ................. FORUM COMMUNICATIONS COMPANY
71325 .................. WDBB .................... Birmingham, AL .......................... WDBB–TV, INC.
6476 .................... WDPX–TV ............. Boston, MA ................................. ION MEDIA BOSTON LICENSE, INC.
2709 .................... WEUX .................... La Crosse-Eau Claire, WI ........... NEXSTAR BROADCASTING, INC.
60553 .................. WFTY–DT .............. New York, NY ............................. UNIVISION NEW YORK LLC
25395 .................. WFUP .................... Traverse City-Cadillac, MI .......... CADILLAC TELECASTING CO.
59279 .................. WGTQ ................... Traverse City-Cadillac, MI .......... TRAVERSE CITY (WGTU–TV) LICENSEE, INC.
48668 .................. WHLT .................... Hattiesburg-Laurel, MS ............... MEDIA GENERAL COMMUNICATIONS HOLDINGS
25684 .................. WICD ..................... Champaign-Springfield-Decatur, WICD LICENSEE, LLC
IL.
39887 .................. WIRS ..................... San Juan, PR ............................. AMERICA–CV STATION GROUP, INC.
71336 .................. WIRT–DT ............... Duluth, MN-Superior, WI ............ WDIO–TV, LLC
68519 .................. WJKT ..................... Jackson, TN ................................ NEXSTAR BROADCASTING, INC.
86537 .................. WJLP ..................... New York, NY ............................. PMCM TV, LLC
9630 .................... WJMN–TV ............. Marquette, MI .............................. NEXSTAR BROADCASTING, INC.
58342 .................. WJWN–TV ............. San Juan, PR ............................. AMERICA–CV STATION GROUP, INC.
58341 .................. WKPV .................... San Juan, PR ............................. AMERICA–CV STATION GROUP, INC.
73336 .................. WNJX–TV .............. San Juan, PR ............................. TELEVICENTRO OF PUERTO RICO, LLC
73344 .................. WNNE .................... Burlington, VT-Plattsburgh, NY .. HEARST STATIONS INC.
16539 .................. WNTZ–TV .............. Alexandria, LA ............................ NEXSTAR BROADCASTING, INC.
64865 .................. WORA–TV ............. San Juan, PR ............................. TELECINCO, INC.
48406 .................. WPXG–TV ............. Boston, MA ................................. ION MEDIA BOSTON LICENSE, INC.
37971 .................. WPXU–TV ............. Greenville-New Bern -Wash- ION MEDIA JACKSONVILLE LICENSE, INC.
ington, NC.
64550 .................. WQOW .................. La Crosse-Eau Claire, WI ........... WXOW–WQOW LICENSE, LLC
19776 .................. WSUR–DT ............. San Juan, PR ............................. WLII/WSUR LICENSE PARTNERSHIP, G.P.
26681 .................. WTIN–TV ............... San Juan, PR ............................. TELEVICENTRO OF PUERTO RICO, LLC
21254 .................. WTOM–TV ............. Traverse City-Cadillac, MI .......... WPBN LICENSEE, LLC
56526 .................. WTTK .................... Indianapolis, IN ........................... TRIBUNE BROADCASTING INDIANAPOLIS, LLC
61573 .................. WVEO .................... San Juan, PR ............................. SPANISH BROAD. SYSTEM HOLDING CO.
24812 .................. WWCW .................. Roanoke-Lynchburg, VA ............. NEXSTAR BROADCASTING, INC.
23264 .................. WWPX–TV ............ Washington, DC .......................... ION MEDIA MARTINSBURG LICENSE, INC.
26993 .................. WWUP–TV ............ Traverse City-Cadillac, MI .......... HERITAGE BROAD. COMPANY OF MICHIGAN
35582 .................. WYDO ................... Greenville-New Bern -Wash- ESTEEM BROADCASTING OF NORTH CAROLINA
ington, NC.
77789 .................. WYOW ................... Wausau-Rhinelander, WI ............ WAOW–WYOW LICENSE, LLC
83270 .................. WZVI ...................... Virgin Islands .............................. ALPHA BROADCASTING CORPORATION
TABLE 8—FY 2016 SCHEDULE OF REGULATORY FEES
[Regulatory fees for the categories shaded in gray are collected by the Commission in advance to cover the term of the license and are
submitted at the time the application is filed.]
Annual
Fee Category regulatory fee
(U.S. $s)
PLMRS (per license) (Exclusive Use) (47 CFR part 90) .............................................................................................................. 25
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Microwave (per license) (47 CFR part 101) .................................................................................................................................. 25
Marine (Ship) (per station) (47 CFR part 80) ................................................................................................................................ 15
Marine (Coast) (per license) (47 CFR part 80) ............................................................................................................................. 40
Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category) ..................................................................... 10
PLMRS (Shared Use) (per license) (47 CFR part 90) .................................................................................................................. 10
Aviation (Aircraft) (per station) (47 CFR part 87) .......................................................................................................................... 10
Aviation (Ground) (per license) (47 CFR part 87) ......................................................................................................................... 20
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90) ................................................................. .20
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90) .................................................................................... .08
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![Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Proposed Rules 26035
TABLE 8—FY 2016 SCHEDULE OF REGULATORY FEES—Continued
[Regulatory fees for the categories shaded in gray are collected by the Commission in advance to cover the term of the license and are
submitted at the time the application is filed.]
Annual
Fee Category regulatory fee
(U.S. $s)
Broadband Radio Service (formerly MMDS/MDS) (per license) (47 CFR part 27) ...................................................................... 725
Local Multipoint Distribution Service (per call sign) (47 CFR, part 101) ...................................................................................... 725
AM Radio Construction Permits .................................................................................................................................................... 620
FM Radio Construction Permits .................................................................................................................................................... 1,075
Digital TV (47 CFR part 73) VHF and UHF Commercial:
Markets 1–10 .......................................................................................................................................................................... 60,675
Markets 11–25 ........................................................................................................................................................................ 45,675
Markets 26–50 ........................................................................................................................................................................ 30,525
Markets 51–100 ...................................................................................................................................................................... 15,200
Remaining Markets ................................................................................................................................................................. 5,000
Construction Permits .............................................................................................................................................................. 5,000
Satellite Television Stations (All Markets) ..................................................................................................................................... 1,750
Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74) ........................................................................... 455
CARS (47 CFR part 78) ................................................................................................................................................................ 775
Cable Television Systems (per subscriber) (47 CFR part 76), Including IPTV ............................................................................ 1.00
Direct Broadcast Service (DBS) (per subscriber) (as defined by section 602(13) of the Act) ..................................................... .27
Interstate Telecommunication Service Providers (per revenue dollar) ......................................................................................... .00371
Toll Free (per toll free subscriber) (47 CFR section 52.101 (f) of the rules) ................................................................................ .13
Earth Stations (47 CFR part 25) ................................................................................................................................................... 345
Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational
station) (47 CFR part 100) ......................................................................................................................................................... 138,475
Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) ............................................................... 151,950
International Bearer Circuits—Terrestrial/Satellites (per 64KB circuit) ......................................................................................... .02
Submarine Cable Landing Licenses Fee (per cable system) ....................................................................................................... See Table Below
FY 2016 SCHEDULE OF REGULATORY FEES: (CONTINUED)
[FY 2016 Radio Station Regulatory Fees]
FM Classes
FM Classes
AM Class A AM Class B AM Class C AM Class D B, C, C0,
Population served A, B1 & C3
($) ($) ($) ($) C1 & C2
($) ($)
<=25,000 .................................................. 990 715 620 685 1,075 1,250
25,001–75,000 ......................................... 1,475 1,075 925 1,025 1,625 1,850
75,001–150,000 ....................................... 2,200 1,600 1,375 1,525 2,400 2,750
150,001–500,000 ..................................... 3,300 2,375 2,075 2,275 3,600 4,125
500,001–1,200,000 .................................. 5,500 3,975 3,450 3,800 6,000 6,875
1,200,001–3,000,000 ............................... 8,250 5,950 5,175 5,700 9,000 10,300
3,000,001–6,000,000 ............................... 11,000 7,950 6,900 7,600 12,000 13,750
>6,000,000 ............................................... 13,750 9,950 8,625 9,500 15,000 17,175
FY 2016 SCHEDULE OF REGULATORY (RFA),113 the Commission prepared this A. Need for, and Objectives of, the
FEES (CONTINUED) Initial Regulatory Flexibility Analysis Notice
[International Bearer Circuits—Submarine (IRFA) of the possible significant
2. This NPRM seeks comment
Cable] economic impact on small entities by
regarding adopting proposed regulatory
the policies and rules proposed in the
Submarine Cable Systems
fees for Fiscal Year 2017. The proposed
Notice of Proposed Rulemaking (NPRM).
(capacity as of December 31, Fee amount regulatory fees are attached to the NPRM
2015)
Written comments are requested on this in Table 4. This regulatory fee NPRM is
IRFA. Comments must be identified as needed each year because the
< 2.5 Gbps ............................ $8,325 responses to the IRFA and must be filed Commission is required by Congress to
2.5 Gbps or greater, but less by the deadline for comments on this adopt regulatory fees each year ‘‘to
than 5 Gbps ...................... 16,650 NPRM. The Commission will send a recover the costs of . . . enforcement
5 Gbps or greater, but less copy of the NPRM, including the IRFA,
than 10 Gbps .................... 33,300 activities, policy and rulemaking
to the NPRM and IRFA (or summaries activities, user information services, and
10 Gbps or greater, but less
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than 20 Gbps .................... 66,600 thereof) will be published in the Federal international activities.’’ 115 The
20 Gbps or greater ............... 133,200 Register.114 objective of this NPRM is to propose
regulatory fees for fiscal year 2017 and
VII. Initial Regulatory Flexibility 113 5 U.S.C. 603. The RFA, 5 U.S.C. 601–612 has
adopt regulatory fee reform to improve
Analysis been amended by the Small Business Regulatory
the regulatory fee process. This NPRM
Enforcement Fairness Act of 1996 (SBREFA), Public seeks comment on the following
1. As required by the Regulatory Law 104–121, Title II, 110 Stat. 847 (1996).
Flexibility Act of 1980, as amended 114 Id. 115 47 U.S.C. 159(a).
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![26038 Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Proposed Rules
or fewer employees.156 Census data for operating and maintaining switching receipts.172 The 2012 Economic Census
2012 show that 1,341 firms provided and transmission facilities to provide reports that 751 television broadcasting
resale services during that year.157 Of communications via the airwaves. firms operated during that year. Of that
that number, 1,341 operated with fewer Establishments in this industry have number, 656 had annual receipts of less
than 1,000 employees.158 Thus, under spectrum licenses and provide services than $25 million per year. Based on that
this category and the associated small using that spectrum, such as cellular Census data we conclude that a majority
business size standard, the majority of services, paging services, wireless of firms that operate television stations
these resellers can be considered small internet access, and wireless video are small. The Commission has
entities. According to Commission data, services.166 The appropriate size estimated the number of licensed
881 carriers have reported that they are standard under SBA rules is that such commercial television stations to be
engaged in the provision of toll resale a business is small if it has 1,500 or 1,387.173 In addition, according to
services.159 Of this total, an estimated fewer employees. For this industry, Commission staff review of the BIA
857 have 1,500 or fewer employees.160 Census Data for 2012 show that there Advisory Services, LLC’s Media Access
Consequently, the Commission were 967 firms that operated for the Pro Television Database on March 28,
estimates that the majority of toll entire year.167 Of this total, 955 firms 2012, about 950 of an estimated 1,300
resellers are small entities that may be had fewer than 1,000 employees.168 commercial television stations (or
affected by the rules proposed in the Thus under this category and the approximately 73 percent) had revenues
NPRM. associated size standard, the of $14 million or less.174 We therefore
14. Other Toll Carriers. Neither the Commission estimates that the majority estimate that the majority of commercial
Commission nor the SBA has developed of wireless telecommunications carriers television broadcasters are small
a size standard for small businesses (except satellite) are small entities. entities.
specifically applicable to Other Toll Similarly, according to Commission
Carriers. This category includes toll 17. In assessing whether a business
data, 413 carriers reported that they concern qualifies as small under the
carriers that do not fall within the were engaged in the provision of
categories of interexchange carriers, above definition, business (control)
wireless telephony, including cellular affiliations 175 must be included. Our
operator service providers, prepaid service, Personal Communications
calling card providers, satellite service estimate, therefore, likely overstates the
Service (PCS), and Specialized Mobile number of small entities that might be
carriers, or toll resellers. The closest Radio (SMR) services.169 Of this total,
applicable NAICS code category is for affected by our action, because the
an estimated 261 have 1,500 or fewer revenue figure on which it is based does
Wired Telecommunications Carriers, as employees.170 Thus, using available
defined in paragraph 6 of this IRFA. not include or aggregate revenues from
data, we estimate that the majority of affiliated companies. In addition, an
Under that size standard, such a
wireless firms can be considered small element of the definition of ‘‘small
business is small if it has 1,500 or fewer
and may be affected by rules proposed business’’ is that the entity not be
employees.161 Census data for 2012
in this NPRM. dominant in its field of operation. We
shows that there were 3,117 firms that
operated that year.162 Of this total, 3,083 16. Television Broadcasting. This are unable at this time to define or
operated with fewer than 1,000 Economic Census category ‘‘comprises quantify the criteria that would
employees.163 Thus, under this category establishments primarily engaged in establish whether a specific television
and the associated small business size broadcasting images together with station is dominant in its field of
standard, the majority of Other Toll sound. These establishments operate operation. Accordingly, the estimate of
Carriers can be considered small. television broadcasting studios and small businesses to which rules may
According to Commission data, 284 facilities for the programming and apply does not exclude any television
companies reported that their primary transmission of programs to the station from the definition of a small
telecommunications service activity was public.’’ 171 These establishments also business on this basis and is therefore
the provision of other toll carriage.164 Of produce or transmit visual programming possibly over-inclusive to that extent.
these, an estimated 279 have 1,500 or to affiliated broadcast television 18. In addition, the Commission has
fewer employees.165 Consequently, the stations, which in turn broadcast the estimated the number of licensed
Commission estimates that most Other programs to the public on a noncommercial educational (NCE)
Toll Carriers are small entities that may predetermined schedule. Programming television stations to be 396.176 These
be affected by the rules proposed in the may originate in their own studio, from stations are non-profit, and therefore
NPRM. an affiliated network, or from external considered to be small entities.177 There
15. Wireless Telecommunications sources. The SBA has created the are also 2,528 low power television
Carriers (except Satellite). This industry following small business size standard stations, including Class A stations
comprises establishments engaged in for Television Broadcasting firms: Those
having $38.5 million or less in annual 172 13
156 Id. CFR 121.201, NAICS code 515120.
173 See FCC News Release, ‘‘Broadcast Station
157 http://factfinder.census.gov/faces/
166 NAICS code 517210. See http://
Totals as of December 31, 2011,’’ dated January 6,
tableservices/jsf/pages/ www.census.gov/cgi-bin/ssd/naics/naiscsrch. 2012; http://transition.fcc.gov/Daily_Releases/
productview.xhtml?pid=ECN_2012_US_ 167 http://factfinder.census.gov/faces/ Daily_Business/2012/db0106/DOC-311837A1.pdf.
51SSSZ5&prodType=table.
158 Id.
tableservices/jsf/pages/ 174 We recognize that BIA’s estimate differs
productview.xhtml?pid=ECN_2012_US_ slightly from the FCC total given supra.
159 Trends in Telephone Service at Table 5.3.
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51SSSZ5&prodType=table. 175 ‘‘[Business concerns] are affiliates of each
160 Id. 168 http://factfinder.census.gov/faces/
other when one concern controls or has the power
161 13 CFR 121.201, NAICS code 517110.
tableservices/jsf/pages/ to control the other or a third party or parties
162 http://factfinder.census.gov/faces/ productview.xhtml?pid=ECN_2012_US_ controls or has to power to control both.’’ 13 CFR
tableservices/jsf/pages/ 51SSSZ5&prodType=table. 21.103(a)(1).
productview.xhtml?pid=ECN_2012_US_ 169 Trends in Telephone Service, at Table 5.3. 176 See FCC News Release, ‘‘Broadcast Station
51SSSZ5&prodType=table. 170 Id. Totals as of December 31, 2011,’’ dated January 6,
163 Id. 171 U.S. Census Bureau, 2012 NAICS code 2012; http://transition.fcc.gov/Daily_Releases/
164 Trends in Telephone Service, at Table 5.3. Daily_Business/2012/db0106/DOC-311837A1.pdf.
Economic Definitions, http://www.census.gov.cgi-
165 Id. bin/sssd/naics/naicsrch. 177 See generally 5 U.S.C. 601(4), (6).
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![Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Proposed Rules 26041
million.219 Based on that data we definitions of what services and Regulatory Flexibility Analysis on how
conclude that the majority of Non- functions the Carrier and Non-Carrier to minimize adverse economic impact,
Carrier RespOrgs who provide toll-free RespOrgs provide, Somos, the trade imposed by our proposed rules, on
number (TFN)-related advertising association that monitors RespOrg small entities. The regulatory fees
services are small. activities, compiled data showing that proposed in this NPRM do not include
32. The U.S. Census defines Other as of July 1, 2016 there were 23 any new fee categories. However, the
Management Consulting Services as RespOrgs operational in Canada and 436 proposal to reduce fees for smaller
establishments primarily engaged in RespOrgs operational in the United broadcast entities may provide financial
providing management consulting States, for a total of 459 RespOrgs relief to smaller entities if it is adopted.
services (except administrative and currently registered with Somos. The proposal to increase the de minimis
general management consulting; human threshold from $500 to $1,000 would, if
resources consulting; marketing D. Description of Projected Reporting,
Recordkeeping and Other Compliance adopted, allow additional smaller
consulting; or process, physical entities to pay no regulatory fees if their
distribution, and logistics consulting). Requirements
annual total amount of fees is no greater
Establishments providing 34. This NPRM does not propose any than $1,000. The proposal to allow
telecommunications or utilities changes to the Commission’s current multiyear licenses to be de minimis
management consulting services are information collection, reporting, based on the total amount of fees owed
included in this industry.220 The SBA recordkeeping, or compliance each year, if adopted, would allow
has established a size standard for this requirements. smaller entities with multiyear licenses
industry of $15 million dollars or E. Steps Taken To Minimize Significant to pay no regulatory fees depending on
less.221 Census data for 2012 show that Economic Impact on Small Entities, and the total amount owed each year.
3,683 firms operated in this industry for Significant Alternatives Considered Finally, the proposal to exclude certain
that entire year. Of that number, 3,632 licenses from regulatory fees may, if
operated with less than $10 million in 35. The RFA requires an agency to
describe any significant alternatives that adopted, provide financial relief to
annual receipts.222 Based on this data, smaller entities because they would not
we conclude that a majority of non- it has considered in reaching its
approach, which may include the have to pay regulatory fees for those
carrier RespOrgs who provide TFN- particular licenses at all.
related management consulting services following four alternatives, among
are small.223 others: (1) The establishment of F. Federal Rules That May Duplicate,
33. In addition to the data contained differing compliance or reporting Overlap, or Conflict With the Proposed
in the four (see above) U.S. Census requirements or timetables that take into Rules
NAICS code categories that provide account the resources available to small
entities; (2) the clarification, 37. None.
219 http://factfinder.census.gov/faces/ consolidation, or simplification of VIII. Ordering Clause
tableservices/jsf/pages/ compliance or reporting requirements
productview.xhtml?pid=ECN_2012_US_ under the rule for small entities; (3) the 38. Accordingly, it is ordered that,
51SSSZ4&prodType=table. use of performance, rather than design, pursuant to section 9 of the
220 http://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
standards; and (4) an exemption from Communications Act of 1934, as
221 13 CFR 120.201, NAICS code 514618. coverage of the rule, or any part thereof, amended, 47 U.S.C. 159, this Notice of
222 http://factfinder.census.gov/faces/ for small entities.224 Proposed Rulemaking is hereby
tableservices/jsf/pages/ 36. This NPRM seeks comment on the adopted.
productview.xhtml?pid=ECN_2012_US_ Commission’s regulatory fee collection Federal Communications Commission.
51SSSZ4&prodType=table. for Fiscal Year 2017, as required by
223 The four NAICS code-based categories Katura Jackson,
selected above to provide definitions for Carrier and
Congress each year. Specifically, we ask
for comments each year in the Federal Register Liasion Officer.
Non-Carrier RespOrgs were selected because as a
group they refer generically and comprehensively to [FR Doc. 2017–11578 Filed 6–5–17; 8:45 am]
all RespOrgs. 224 5 U.S.C. 603(c)(1) through (c)(4). BILLING CODE 6712–01–P
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Document Created: 2017-06-06 06:20:53
Document Modified: 2017-06-06 06:20:53
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Notice of proposed rulemaking. | |
| Dates | Submit comments on or before June 22, 2017, and reply comments on or before July 7, 2017. | |
| Contact | Roland Helvajian, Office of Managing Director at (202) 418-0444. | |
| FR Citation | 82 FR 26019 |
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