83_FR_36606 83 FR 36460 - Assessment and Collection of Regulatory Fees for Fiscal Year 2018

83 FR 36460 - Assessment and Collection of Regulatory Fees for Fiscal Year 2018

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 83, Issue 146 (July 30, 2018)

Page Range36460-36467
FR Document2018-15651

In this document, the Federal Communications Commission (Commission) makes decisions involving submarine cables, international bearer circuits, and the calculation of cable television subscribers.

Federal Register, Volume 83 Issue 146 (Monday, July 30, 2018)
[Federal Register Volume 83, Number 146 (Monday, July 30, 2018)]
[Rules and Regulations]
[Pages 36460-36467]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-15651]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket Nos. 18-175; FCC 18-65]


Assessment and Collection of Regulatory Fees for Fiscal Year 2018

AGENCY: Federal Communications Commission.

ACTION: Final action.

-----------------------------------------------------------------------

SUMMARY: In this document, the Federal Communications Commission 
(Commission) makes decisions involving submarine cables, international 
bearer circuits, and the calculation of cable television subscribers.

DATES: This final action is effective August 29, 2018.

FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing 
Director at (202) 418-0444.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's FY 
2018 Report and Order (FY 2018 Report and Order), FCC 18-65, MD Docket 
No. 18-175 adopted on May 21, 2018 and released on May 22, 2018. 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 website, 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.

[[Page 36461]]

I. Procedural Matters

A. Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act of 1980 (RFA),\1\ 
the Commission has prepared a Final Regulatory Flexibility Analysis 
(FRFA) relating to this Report and Order. The FRFA is located towards 
the end of this document.
---------------------------------------------------------------------------

    \1\ See 5 U.S.C. 603. The RFA, see 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). 
The SBREFA was enacted as Title II of the Contract with America 
Advancement Act of 1996 (CWAAA).
---------------------------------------------------------------------------

B. Final Paperwork Reduction Act of 1995 Analysis

    2. 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).

C. Congressional Review Act

    3. The Commission will send a copy of this Report & Order to 
Congress and the Government Accountability Office pursuant to the 
Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).

II. Introduction

    In this Report and Order, we address several regulatory fee issues 
raised in the Further Notice of Proposed Rulemaking that published 
after the Commission's FY 2017 Report and Order.\2\ More specifically, 
in this Report and Order, we (1) adopt new tiers for calculating 
regulatory fees for submarine cable systems; (2) decline to adopt a new 
regulatory fee for international section 214 authorizations; and (3) 
retain the optional bulk rate calculation for determining the number of 
subscribers in multiple dwelling units used in the calculation of cable 
television regulatory fees.
---------------------------------------------------------------------------

    \2\ See generally Assessment and Collection of Regulatory Fees 
for Fiscal Year 2017 (Final Rule), 82 FR 44322 (Sept. 22, 2017), 32 
FCC Rcd 7057 (2017) (FY 2017 Report and Order) and Assessment and 
Collection of Regulatory Fees for Fiscal Year 2017 (Further Notice 
of Proposed Rulemaking), 82 FR 50598 (Nov. 1, 2017), 32 FCC Rcd 7057 
(2017) (2017 FNPRM).
---------------------------------------------------------------------------

III. Report and Order

A. Submarine Cable Regulatory Fees

    1. In 2009, the Commission adopted a new methodology for 
calculating submarine cable regulatory fees, based on a proposal from 
the submarine cable industry.\3\ The methodology adopted was a tiered 
per-cable system, with higher fees for larger systems and lower fees 
for smaller systems. The Commission concluded that the methodology was 
in the public interest and competitively neutral because it included 
both common carriers and non-common carriers; all entities with cable 
landing licensees would be required to pay this regulatory fee.\4\ At 
that time, the Commission adopted a five-tier system for the submarine 
cable industry, but since that date the subsequent growth in the 
industry has moved all but two systems into the highest tier.\5\ In the 
2017 FNPRM, we sought comment on revising the regulatory fee tiers for 
submarine cable systems.\6\ One commenter, the Submarine Cable 
Coalition, generally agrees with our proposal to revise the existing 
tiers.\7\
---------------------------------------------------------------------------

    \3\ Submarine Cable Order, 74 FR 22104 (May 12, 2009), 24 FCC 
Rcd at 4212-4216, paras. 7-18.
    \4\ Id., 24 FCC Rcd at 4212-13, paras. 8-9.
    \5\ FY 2017 Report and Order, 32 FCC Rcd at 7074, para. 46.
    \6\ 2017 FNPRM, 32 FCC Rcd at 7074-75, para. 46.
    \7\ Coalition Reply Comments at 3-4, 7-8.
---------------------------------------------------------------------------

    2. We adjust the tiers proposed in the 2017 FNPRM to reflect 
capacity growth since 2009 when the submarine cable tiers were first 
established. Specifically, the regulatory fee tiers for submarine cable 
systems we adopt below add higher thresholds to reflect capacity growth 
in the industry. Based on this increase in capacity, we believe the 
tiers better capture varying types of submarine cable operators.
     Systems with capacity equal to or greater than 4,000 Gbps 
will now pay 16 payment units.
     Systems with capacity equal to or greater than 1,000 Gbps 
but less than 4,000 Gbps will now pay 8 payment units.
     Systems with capacity equal to or greater than 250 Gbps 
but less than 1,000 Gbps will now pay 4 payment units.
     Systems with capacity equal to or greater than 50 Gbps but 
less than 250 Gbps, will pay 2 payment units.
     Systems with capacity less than 50 Gbps will pay 1 payment 
unit.
    3. Under the revised regulatory fee tiers we adopt today, we 
estimate that approximately half of the submarine cable systems will be 
in the bottom or middle tiers, while the remaining systems will be in 
the new highest tier. The FCC will provide proposed rates for submarine 
cable systems for FY 2018 in future rulemaking.
    4. Finally, while the Submarine Cable Coalition contends that non-
common carrier submarine cable systems should pay lower fees than 
common carriers, we note that the Commission adopted a competitively 
neutral methodology that included both common carriers and non-common 
carriers in the Submarine Cable Order, based on a consensus proposal 
from a group of operators, including at least one member of the 
Coalition, GU Holdings, Inc., an indirect, wholly-owned subsidiary of 
Google, Inc.\8\ The Coalition has not provided any evidence to support 
its claim that we should depart from this competitively neutral 
methodology and treat non-common carrier submarine cable systems 
differently from common carrier systems at this time.
---------------------------------------------------------------------------

    \8\ Submarine Cable Order, 24 FCC Rcd at 4208, para. 1 & note 3.
---------------------------------------------------------------------------

B. International Bearer Circuits and Section 214 Authorizations

    5. In the 2017 FNPRM, the Commission sought comment on a proposal 
raised by the Submarine Cable Coalition, that in lieu of regulatory 
fees for international bearer circuits (IBCs), we should assess a 
regulatory fee, based on International Bureau FTEs, on every holder of 
an international section 214 authorization.\9\ SIA supports replacing 
the satellite IBC fee with a fee on each international section 214 
authorization and contends that such a fee for all entities with 
international section 214 authorizations would be appropriate because 
the holders of international section 214 authority are ``directly 
involved in international common carrier services and benefit from 
associated Commission regulation. . . .'' \10\ The Submarine Cable 
Coalition contends that adopting a flat fee for all holders of 
international section 214 authorizations would be an efficient and 
equitable methodology for assessing regulatory fees.\11\
---------------------------------------------------------------------------

    \9\ 2017 FNPRM, 32 FCC Rcd at 7075, para. 48. This proposal was 
from the Submarine Cable Coalition.
    \10\ SIA Comments at 6.
    \11\ Coalition Reply Comments at 3.
---------------------------------------------------------------------------

    6. Other commenters oppose this approach. CTIA argues that 
assessing a fee based on international section 214 authorizations would 
change the basis for the IBC fees, which is ownership and use of 
international circuits, because many international 214 authorization 
holders only provide resold service and do not have international 
facilities.\12\ AT&T agrees with CTIA and notes that this approach 
would impose a new IBC regulatory fee on hundreds of entities

[[Page 36462]]

that do not currently pay IBC fees.\13\ These commenters also explain 
that because only common carriers hold international section 214 
authorizations, this approach would essentially reverse our decision in 
the FY 2017 Report and Order to include non-common carrier terrestrial 
IBCs in the IBC regulatory fee methodology.\14\ For example, AT&T 
states that replacing all or part of the IBC fee with a flat fee on 
international section 214 authorizations would ``effectively reverse 
the Commission's decisions to provide a competitively neutral IBC fee 
structure.'' \15\ CenturyLink argues that entities holding an 
international 214 authorization but that do not have active 
international circuits do not receive the benefits of Commission 
international activities, and therefore should not be subject to 
regulatory fees.\16\ CTIA also states that international section 214 
applicants already pay a $1,155 filing fee with each application and 
there is no evidence of other International Bureau costs associated 
with international section 214 authorizations.\17\ Commenters also note 
that such an approach would present administrative difficulties since 
many carriers have multiple international 214 authorizations and can 
surrender them if the Commission adopted a per-international section 
214 authorization regulatory fee.\18\
---------------------------------------------------------------------------

    \12\ CTIA Comments at 2-3.
    \13\ AT&T Reply Comments at 6; CTIA Comments at 2-3.
    \14\ CTIA Comments at 4-5; CenturyLink Comments at 5; AT&T Reply 
Comments at 5-6.
    \15\ AT&T Jan. 17, 2018 ex parte at 1.
    \16\ CenturyLink Comments at 5. See also AT&T Reply Comments at 
6.
    \17\ CTIA Comments at 3-4.
    \18\ CTIA Comments at 5; CenturyLink Comments at 5; AT&T Reply 
Comments at 6. The Submarine Cable Coalition contends that their 
proposal would reduce the burden on the International Bureau because 
of the costs associated with ``overseeing redundant international 
Section 214 licensees.'' Submarine Cable Coalition Reply Comments at 
9. However, there is no evidence in the record that there are such 
costs to the International Bureau.
---------------------------------------------------------------------------

    7. We decline to impose regulatory fees on international section 
214 authorizations in lieu of our existing IBC regulatory fees for 
terrestrial and satellite IBCs and submarine cable systems. The record 
does not demonstrate that this approach is advantageous over the 
existing scheme established in section 9(g) of the Act to charge the 
IBC regulatory fee based on active international bearer circuits.\19\ 
The Submarine Cable Coalition's proposal is also problematic because it 
would exclude non-common carriers from paying the fee. However, the 
Commission concluded in the FY 2017 Report and Order that regulatory 
fees should be paid for non-common carrier satellite and terrestrial 
circuits, as well as submarine cable systems.\20\ Further, the 
Submarine Cable Coalition has not shown how a CMRS provider or an ITSP 
with an international section 214 authorization is subject to 
regulation or oversight by the International Bureau that would justify 
an additional annual regulatory fee based on International Bureau FTEs. 
We recognize that oversight or regulation by the International Bureau 
is not limited to the processing of international section 214 
authorizations.\21\ We are, however, unconvinced at this time that such 
costs justify requiring hundreds of carriers regulated by other bureaus 
to pay additional regulatory fees \22\ based on International Bureau 
FTEs. For these reasons, we decline to adopt a new regulatory fee 
category for international section 214 authorizations to replace IBC 
regulatory fees at this time.
---------------------------------------------------------------------------

    \19\ 47 U.S.C. 159(g).
    \20\ FY 2017 Report and Order, 32 FCC Rcd at 7071-2, paras. 34-
35.
    \21\ For example, International Bureau FTEs could be involved in 
an international section 214 rulemaking proceeding, a proceeding 
related to revocation of a carrier's international section 214 
authorization, or other matters related to section 214 of the Act.
    \22\ The holders of such authorization pay regulatory fees based 
on the service provided (e.g., CMRS or ITSP).
---------------------------------------------------------------------------

C. Cable Television Services--Calculation of Number of Subscribers

    8. In the FY 2008 FNPRM, the Commission sought comment on the 
optional bulk rate calculation for determining the number of 
subscribers in a multiple dwelling unit or MDU.\23\ The methodology for 
calculating the number of cable subscribers has been the following:
---------------------------------------------------------------------------

    \23\ FY 2008 FNPRM, 73 FR 30563 (May 28, 2018), 24 FCC Rcd at 
6407-6408, paras. 51-52.

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 [year], rather than on a count as of December 31, 
[year].\24\
---------------------------------------------------------------------------

    \24\ This is essentially the same methodology we sought comment 
on in the FY 2008 FNPRM.

    9. In the 2017 FNPRM, we sought comment on whether we should keep 
the bulk rate calculation or if, due to the passage of time, we should 
modify the methodology to more accurately calculate the number of 
subscribers in a MDU.\25\ Commenters addressing this issue unanimously 
support retaining the current optional bulk rate calculation.\26\ In 
particular, commenters state that our methodology continues to be ``a 
reasonable and feasible approach to determining the number of MDU 
subscribers for regulatory fee purposes, and should be retained.'' \27\ 
And, there is no evidence in the record to support revising or 
eliminating this optional bulk rate calculation. For these reasons, we 
retain the bulk rate calculation.
---------------------------------------------------------------------------

    \25\ 2017 FNPRM, 32 FCC Rcd at 7076, paras. 50-51.
    \26\ ITTA Comments at 1-2; NCTA and ACA Comments at 1-3.
    \27\ NCTA and ACA Comments at 2.
---------------------------------------------------------------------------

IV. Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\28\ an Initial Regulatory Flexibility Analysis (IRFA) 
was included in the 2017 FNPRM.\29\ The Commission sought written 
public comment on these proposals including comment on the IRFA. This 
Final Regulatory Flexibility Analysis (FRFA) conforms to the IRFA.\30\
---------------------------------------------------------------------------

    \28\ 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).
    \29\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2017, 32 FCC Rcd 7057 (2017).
    \30\ 5 U.S.C. 604.
---------------------------------------------------------------------------

A. Need for, and Objectives of, the Report and Order

    2. This Report and Order adopts a revision to the existing tiers 
for submarine cable regulatory fees.

B. Summary of the Significant Issues Raised by the Public Comments in 
Response to the IRFA

    3. None.

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.\31\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \32\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\33\ A ``small business

[[Page 36463]]

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.\34\ Nationwide, there are a 
total of approximately 27.9 million small businesses, according to the 
SBA.\35\
---------------------------------------------------------------------------

    \31\ 5 U.S.C. 603(b)(3).
    \32\ 5 U.S.C. 601(6).
    \33\ 5 U.S.C. 601(3) (incorporating the definition of ``small-
business concern'' from 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.''
    \34\ 15 U.S.C. 632.
    \35\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
---------------------------------------------------------------------------

    5. 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.'' \36\ 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.\37\ 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.\38\ Thus, under 
this size standard, most firms in this industry can be considered 
small.
---------------------------------------------------------------------------

    \36\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \37\ See 13 CFR 120.201, NAICS code 517110.
    \38\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    6. 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 Wired Telecommunications Carriers as defined in 
paragraph 6 of this FRFA. Under the applicable SBA size standard, such 
a business is small if it has 1,500 or fewer employees.\39\ According 
to Commission data, 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.\40\ The Commission therefore estimates that most 
providers of local exchange carrier service are small entities that may 
be affected by the rules adopted.
---------------------------------------------------------------------------

    \39\ 13 CFR 121.201, NAICS code 517110.
    \40\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    7. 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 as defined in paragraph 6 of this FRFA. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees.\41\ According to Commission data, 3,117 firms operated 
in that year. Of this total, 3,083 operated with fewer than 1,000 
employees.\42\ Consequently, the Commission estimates that most 
providers of incumbent local exchange service are small businesses that 
may be affected by the rules and policies adopted. Three hundred and 
seven (307) Incumbent Local Exchange Carriers reported that they were 
incumbent local exchange service providers.\43\ Of this total, an 
estimated 1,006 have 1,500 or fewer employees.\44\
---------------------------------------------------------------------------

    \41\ 13 CFR 121.201, NAICS code 517110.
    \42\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \43\ See Trends in Telephone Service, Federal Communications 
Commission, Wireline Competition Bureau, Industry Analysis and 
Technology Division at Table 5.3 (Sept. 2010) (Trends in Telephone 
Service).
    \44\ Id.
---------------------------------------------------------------------------

    8. 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, as defined in paragraph 6 of this FRFA. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees.\45\ 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.\46\ Based on this data, the Commission 
concludes that most Competitive LECS, CAPs, Shared-Tenant Service 
Providers, and Other Local Service Providers, are small entities. 
According to Commission data, 1,442 carriers reported that they were 
engaged in the provision of either competitive local exchange services 
or competitive access provider services.\47\ Of these 1,442 carriers, 
an estimated 1,256 have 1,500 or fewer employees.\48\ 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.\49\ Also, 72 
carriers have reported that they are Other Local Service Providers.\50\ 
Of this total, 70 have 1,500 or fewer employees.\51\ Consequently, 
based on internally researched FCC data, 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.
---------------------------------------------------------------------------

    \45\ 13 CFR 121.201, NAICS code 517110.
    \46\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \47\ See Trends in Telephone Service, at Table 5.3.
    \48\ Id.
    \49\ Id.
    \50\ Id.
    \51\ Id.
---------------------------------------------------------------------------

    9. 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 FRFA. The applicable size standard under SBA rules 
is that such a business is small if it has 1,500 or fewer 
employees.\52\ U.S. Census data for 2012 indicates that 3,117 firms 
operated during that year. Of that number, 3,083 operated with fewer 
than 1,000 employees.\53\ According to internally developed Commission 
data, 359 companies reported that their primary telecommunications 
service activity was the provision of interexchange services.\54\ Of 
this total, an estimated 317 have 1,500 or fewer employees.\55\ 
Consequently, the Commission estimates that most interexchange service 
providers are small entities that may be affected by the rules adopted.
---------------------------------------------------------------------------

    \52\ 13 CFR 121.201, NAICS code 517110.
    \53\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \54\ See Trends in Telephone Service, at Table 5.3.
    \55\ Id.
---------------------------------------------------------------------------

    10. Prepaid Calling Card Providers. Neither the Commission nor the 
SBA has developed a small business definition specifically for prepaid 
calling card providers. The most appropriate NAICS code-based category 
for defining prepaid calling card

[[Page 36464]]

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.\56\ Under the applicable SBA size standard, such a 
business is small if it has 1,500 or fewer employees.\57\ 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.\58\ 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.\59\ All 193 carriers have 1,500 or fewer 
employees.\60\ Consequently, the Commission estimates that the majority 
of prepaid calling card providers are small entities that may be 
affected by the rules adopted.
---------------------------------------------------------------------------

    \56\ http://www.census.gov/cgi-bin/ssd/naics/naicsrch.
    \57\ 13 CFR 121.201, NAICS code 517911.
    \58\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \59\ See Trends in Telephone Service, at Table 5.3.
    \60\ Id.
---------------------------------------------------------------------------

    11. 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.\61\ 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.\62\ 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.\63\ Of this total, an estimated 211 have 1,500 or fewer 
employees.\64\ Consequently, the Commission estimates that the majority 
of local resellers are small entities that may be affected by the rules 
adopted.
---------------------------------------------------------------------------

    \61\ 13 CFR 121.201, NAICS code 517911.
    \62\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \63\ See Trends in Telephone Service, at Table 5.3.
    \64\ Id.
---------------------------------------------------------------------------

    12. 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.\65\ Under that size standard, such a business is small if it 
has 1,500 or fewer employees.\66\ 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.\67\ 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.\68\ Of this total, an estimated 857 have 1,500 
or fewer employees.\69\ Consequently, the Commission estimates that the 
majority of toll resellers are small entities.
---------------------------------------------------------------------------

    \65\ 13 CFR 121.201, NAICS code 517911.
    \66\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \67\ Id.
    \68\ Trends in Telephone Service at Table 5.3.
    \69\ Id.
---------------------------------------------------------------------------

    13.Other Toll Carriers. Neither the Commission nor the SBA has 
developed a definition 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 
FRFA. Under the applicable SBA size standard, such a business is small 
if it has 1,500 or fewer employees.\70\ 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.\71\ Thus, under this category 
and the associated small business size standard, most Other Toll 
Carriers can be considered small. According to internally developed 
Commission data, 284 companies reported that their primary 
telecommunications service activity was the provision of other toll 
carriage.\72\ Of these, an estimated 279 have 1,500 or fewer 
employees.\73\ Consequently, the Commission estimates that most Other 
Toll Carriers are small entities.
---------------------------------------------------------------------------

    \70\ 13 CFR 121.201, NAICS code 517110.
    \71\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \72\ Trends in Telephone Service at Table 5.3.
    \73\ Id.
---------------------------------------------------------------------------

    14. 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.\74\ 
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. Of this total, 955 firms had fewer than 1,000 employees. 
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 
internally developed 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.\75\ Of this total, an estimated 261 have 1,500 or 
fewer employees.\76\ Thus, using available data, we estimate that the 
majority of wireless firms can be considered small.
---------------------------------------------------------------------------

    \74\ NAICS code 517210. See http://www.census.gov/cgi-bin/ssd/naics/naiscsrch.
    \75\ Trends in Telephone Service at Table 5.3.
    \76\ Id.
---------------------------------------------------------------------------

    15. 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.'' \77\ 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

[[Page 36465]]

having $38.5 million or less in annual receipts.\78\ 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 most firms 
that operate television stations are small. The Commission has 
estimated the number of licensed commercial television stations to be 
1,383.\79\ 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.\80\ We therefore estimate that the majority of commercial 
television broadcasters are small entities.
---------------------------------------------------------------------------

    \77\ U.S. Census Bureau, 2012 NAICS code Economic Census 
Definitions, http://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \78\ 13 CFR 121.201, NAICS code 515120.
    \79\ See FCC News Release, ``Broadcast Station Totals as of 
March 31, 2017,'' April 11, 2017; https://apps.fcc.gov/edocs_public/attachmatch/DOC-344256A1.pdf.
    \80\ We recognize that BIA's estimate differs slightly from the 
FCC total.
---------------------------------------------------------------------------

    16. In assessing whether a business concern qualifies as small 
under the above definition, business (control) affiliations \81\ 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.
---------------------------------------------------------------------------

    \81\ ``[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).
---------------------------------------------------------------------------

    17. In addition, the Commission has estimated the number of 
licensed noncommercial educational television stations to be 394.\82\ 
These stations are non-profit, and therefore considered to be small 
entities.\83\ There are also 2,382 low power television stations, 
including Class A stations.\84\ 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.
---------------------------------------------------------------------------

    \82\ See FCC News Release, ``Broadcast Station Totals as of 
March 31, 2017,'' April 11, 2017; https://apps.fcc.gov/edocs_public/attachmatch/DOC-344256A1.pdf.
    \83\ See generally 5 U.S.C. 601(4), (6).
    \84\ See FCC News Release, ``Broadcast Station Totals as of 
March 31, 2017,'' April 11, 2017; https://apps.fcc.gov/edocs_public/attachmatch/DOC-344256A1.pdf.
---------------------------------------------------------------------------

    18. 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.'' \85\ 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.\86\ Census data for 
2012 show that 2,849 radio station firms operated during that year. Of 
that number, 2,806 operated with annual receipts of less than $25 
million per year.\87\ According to Commission staff review of BIA 
Advisory Services, LLC's Media Access Pro Radio Database, on March 28, 
2012, about 10,759 (97 percent) of 11,102 commercial radio stations had 
revenues of $38.5 million or less. Therefore, most such entities are 
small entities.
---------------------------------------------------------------------------

    \85\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \86\ 13 CFR 121.201, NAICS code 515112.
    \87\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    19. In assessing whether a business concern qualifies as small 
under the above size standard, business affiliations must be 
included.\88\ In addition, to be determined to be a ``small business,'' 
the entity may not be dominant in its field of operation.\89\ We note 
that it is difficult at times to assess these criteria in the context 
of media entities, and our estimate of small businesses may therefore 
be over-inclusive.
---------------------------------------------------------------------------

    \88\ ``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).
    \89\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------

    20. 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.\90\ 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. Of this total, 319 operated with 
annual receipts of less than $25 million.\91\ Thus under this size 
standard, most firms offering cable and other program distribution 
services can be considered small and may be affected by rules adopted.
---------------------------------------------------------------------------

    \90\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \91\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US-51SSSZ5&prodType=Table.
---------------------------------------------------------------------------

    21. 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.\92\ Industry data 
indicate that there are currently 4,413 active cable systems in the 
United States.\93\ Of this total, all but ten cable operators 
nationwide are small under the 400,000-subscriber size standard.\94\ In 
addition, under the Commission's rate regulation rules, a ``small 
system'' is a cable system serving 15,000 or fewer subscribers.\95\ 
Current Commission records show 4,413 cable systems nationwide.\96\ Of 
this total, 3,900 cable systems have fewer than 15,000 subscribers, and 
700 systems have 15,000 or more subscribers, based on the same 
records.\97\ Thus, under this standard as well, we estimate that most 
cable systems are small entities.
---------------------------------------------------------------------------

    \92\ 47 CFR 76.901(e).
    \93\ See Eighteenth Competition Report, 32 FCC Rcd at 584, para. 
39 (citing the Commission's Cable Operations and Licensing Systems 
(COALS) database).
    \94\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2017).
    \95\ 47 CFR 76.901(c).
    \96\ See footnote 2, supra.
    \97\ August 5, 2015 report from the Media Bureau based on its 
research in COALS. See www.fcc.gov/coals.
---------------------------------------------------------------------------

    22. 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.'' \98\ There are approximately 53 million cable video 
subscribers in the United

[[Page 36466]]

States today.\99\ 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.\100\ Based on available data, 
we find that all but nine incumbent cable operators are small entities 
under this size standard.\101\ We note that the Commission neither 
requests nor collects information on whether cable system operators are 
affiliated with entities whose gross annual revenues exceed $250 
million.\102\ Although it seems certain that some of these cable system 
operators are affiliated with entities whose gross annual revenues 
exceed $250 million, 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.
---------------------------------------------------------------------------

    \98\ 47 CFR 76.901 (f) and notes ff. 1, 2, and 3.
    \99\ See NCTA Industry Data, Cable's Customer Base, available at 
https://www.ncta.com/industry-data (last visited July 6, 2017).
    \100\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \101\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2018).
    \102\ 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 section 76.901(f) of the Commission's rules. See 47 CFR 
76.901(f).
---------------------------------------------------------------------------

    23. 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 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.\103\ The SBA determines that a wireline business is 
small if it has fewer than 1500 employees.\104\ 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.\105\ Based on that data, we conclude that most wireline 
firms are small under the applicable standard. However, currently only 
two entities provide DBS service, AT&T and DISH Network. AT&T and DISH 
Network each report annual revenues that are in excess of the threshold 
for a small business. Accordingly, we conclude that DBS service is 
provided only by large firms.
---------------------------------------------------------------------------

    \103\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \104\ NAICS code 517110; 13 CFR 121.201.
    \105\ http://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    24. 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.\106\ 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.\107\ 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.\108\ Thus, most ``All Other 
Telecommunications'' firms potentially affected by the rules adopted 
can be considered small.
---------------------------------------------------------------------------

    \106\ http://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
    \107\ 13 CFR 121.201; NAICS code 517919.
    \108\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    25. RespOrgs. RespOrgs, i.e., Responsible Organizations, 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.\109\ 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.
---------------------------------------------------------------------------

    \109\ See 47 CFR 52.101(b).
---------------------------------------------------------------------------

    26. 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\110\ and Wireless Telecommunications Carriers (except 
satellite).\111\
---------------------------------------------------------------------------

    \110\ 13 CFR 121.201, NAICS code 517110.
    \111\ 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

    27. 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.\112\ 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.\113\ 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.\114\ Based 
on that data, we conclude that most Carrier RespOrgs that operated with 
wireline-based technology are small.
---------------------------------------------------------------------------

    \112\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \113\ 13 CFR 120,201, NAICS code 517110.
    \114\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    28. 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

[[Page 36467]]

airwaves, such as cellular services, paging services, wireless internet 
access, and wireless video services.\115\ The appropriate size standard 
under SBA rules is that such a business is small if it has 1,500 or 
fewer employees.\116\ 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.\117\ Based on that data, we 
conclude that most Carrier RespOrgs that operated with wireless-based 
technology are small.
---------------------------------------------------------------------------

    \115\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \116\ 13 CFR 120.201, NAICS code 517120.
    \117\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    29. Non-Carrier RespOrgs. Neither the Commission, the 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'' \118\ and ``Other Management Consulting 
Services.'' \119\
---------------------------------------------------------------------------

    \118\ 13 CFR 120.201, NAICS code 541890.
    \119\ 13 CFR 120.201, NAICS code 541618.
---------------------------------------------------------------------------

    30. 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.\120\ The SBA has established a size standard for this 
industry as annual receipts of $15 million dollars or less.\121\ 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 million.\122\ Based on that data we conclude that most 
Non-Carrier RespOrgs who provide TFN-related advertising services are 
small.
---------------------------------------------------------------------------

    \120\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \121\ 13 CFR 120.201, NAICS code 541890.
    \122\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    31. 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.\123\ The SBA has established a size standard 
for this industry of $15 million dollars or less.\124\ 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.\125\ Based on this data, we conclude that most non-
carrier RespOrgs who provide TFN-related management consulting services 
are small.\126\
---------------------------------------------------------------------------

    \123\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \124\ 13 CFR 120.201, NAICS code 514618.
    \125\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
    \126\ 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. Therefore, all RespOrgs, including 
those not identified specifically or individually, must comply with 
the rules adopted in the Regulatory Fees Report and Order associated 
with this Final Regulatory Flexibility Analysis.
---------------------------------------------------------------------------

    32. 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.\127\
---------------------------------------------------------------------------

    \127\ Email from Jennifer Blanchard, Somos, July 1, 2016.
---------------------------------------------------------------------------

D. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements

    33. This Report and Order does not adopt any new reporting, 
recordkeeping, or other compliance requirements.

E. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    34. 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.\128\
---------------------------------------------------------------------------

    \128\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------

    35. This Report and Order adopts new tiers in assessing regulatory 
fees for submarine cable systems. There should not be a significant 
impact on small entities because the fee is based on the number of 
systems and would therefore reflect the size of the entity. In keeping 
with the requirements of the Regulatory Flexibility Act, we have 
considered certain alternative means of mitigating the effects of fee 
increases to a particular industry segment. For example, the Commission 
has increased the de minimis threshold to $1,000, which will impact 
many small entities that pay regulatory fees. This increase in the de 
minimis threshold to $1,000 will relieve regulatees both financially 
and administratively. Regulatees may also seek waivers or other relief 
on the basis of financial hardship. See 47 CFR 1.1166.

F. Federal Rules That May Duplicate, Overlap, or Conflict

    None.

V. Ordering Clause

    36. Accordingly, it is ordered that, pursuant to Section 9(a), (b), 
(e), (f), and (g) of the Communications Act of 1934, as amended, 47 
U.S.C. 159(a), (b), (e), (f), and (g), this Report and Order is hereby 
adopted.

Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2018-15651 Filed 7-27-18; 8:45 am]
 BILLING CODE 6712-01-P



                                             36460               Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations

                                             proposed rulemaking and comment is                       works as intended to protect consumers                adjustment transfers for the 2017 benefit
                                             impracticable and contrary to the public                 from the effects of adverse selection and             year are $5.179 billion. As such, we also
                                             interest because consumers would be                      premium increases due to issuer                       adopt the RIA in the 2017 Payment
                                             negatively impacted by premium                           uncertainty. The Premium Stabilization                Notice proposed and final rules.
                                             changes should risk adjustment                           Rule and previous Payment Notices                       Dated: July 23, 2018.
                                             payments be interrupted or confidence                    noted above provided detail on the
                                                                                                                                                            Seema Verma,
                                             in the program undermined.                               implementation of the risk adjustment
                                                                                                                                                            Administrator, Centers for Medicare &
                                                There is also good cause to proceed                   program, including the specific
                                                                                                                                                            Medicaid Services.
                                             without notice and comment for the                       parameters applicable for the 2017
                                                                                                                                                              Dated: July 24, 2018.
                                             additional reason that such procedures                   benefit year.
                                             are unnecessary here. HHS has received                                                                         Alex M. Azar II,
                                                                                                      B. Overall Impact                                     Secretary, Department of Health and Human
                                             and considered comments in issuing the
                                             2014 through 2017 Payment Notices. In                       We have examined the impact of this                Services.
                                             each of these rulemaking processes,                      rule as required by Executive Order                   [FR Doc. 2018–16190 Filed 7–25–18; 4:15 pm]
                                             parties had the opportunity to comment                   12866 on Regulatory Planning and                      BILLING CODE 4120–01–P
                                             on HHS’s use of statewide average                        Review (September 30, 1993), Executive
                                             premium in the payment transfer                          Order 13563 on Improving Regulation
                                             formula under the HHS-operated risk                      and Regulatory Review (January 18,
                                                                                                      2011), the Regulatory Flexibility Act                 FEDERAL COMMUNICATIONS
                                             adjustment methodology. Because this                                                                           COMMISSION
                                             final rule adopts the same HHS-operated                  (RFA) (September 19, 1980, Pub. L. 96–
                                             risk adjustment methodology issued in                    354), section 1102(b) of the Social                   47 CFR Part 1
                                             the 2017 Payment Notice final rule, the                  Security Act, section 202 of the
                                             comments received in those                               Unfunded Mandates Reform Act of 1995                  [MD Docket Nos. 18–175; FCC 18–65]
                                             rulemakings are sufficiently current to                  (March 22, 1995; Pub. L. 104–4),
                                             indicate a lack of necessity to engage in                Executive Order 13132 on Federalism                   Assessment and Collection of
                                             further notice and comment. In the 2014                  (August 4, 1999), the Congressional                   Regulatory Fees for Fiscal Year 2018
                                             Payment Notice final rule, we received                   Review Act (5 U.S.C. 804(2), and
                                                                                                      Executive Order 13771 on Reducing                     AGENCY:  Federal Communications
                                             a number of comments in support of our                                                                         Commission.
                                             proposal to use the statewide average                    Regulation and Controlling Regulatory
                                                                                                      Costs. Executive Orders 12866 and                     ACTION: Final action.
                                             premium as the basis for risk adjustment
                                             transfers. In subsequent benefit year                    13563 direct agencies to assess all costs
                                                                                                      and benefits of available regulatory                  SUMMARY:  In this document, the Federal
                                             rulemakings, some commenters                                                                                   Communications Commission
                                                                                                      alternatives and, if regulation is
                                             expressed a desire for HHS to use a                                                                            (Commission) makes decisions
                                                                                                      necessary, to select regulatory
                                             plan’s own premium. HHS addressed                                                                              involving submarine cables,
                                                                                                      approaches that maximize net benefits
                                             those comments by reiterating that we                                                                          international bearer circuits, and the
                                                                                                      (including potential economic,
                                             had considered the use of a plan’s own                                                                         calculation of cable television
                                                                                                      environmental, public health and safety
                                             premium instead of the statewide                                                                               subscribers.
                                                                                                      effects, distributive impacts, and
                                             average premium and chose to use
                                                                                                      equity). A regulatory impact analysis                 DATES:  This final action is effective
                                             statewide average premium. As this
                                                                                                      (RIA) must be prepared for major rules                August 29, 2018.
                                             approach supports the overall goal of
                                                                                                      with economically significant effects                 FOR FURTHER INFORMATION CONTACT:
                                             the risk adjustment program to
                                                                                                      ($100 million or more in any one year).               Roland Helvajian, Office of Managing
                                             encourage issuers to rate for the average                   OMB has determined that this final
                                             risk in the applicable state market risk                                                                       Director at (202) 418–0444.
                                                                                                      rule is ‘‘economically significant’’
                                             pool, and avoids the creation of                         within the meaning of section 3(f)(1) of              SUPPLEMENTARY INFORMATION: This is a
                                             incentives for issuers to operate less                   Executive Order 12866, because it is                  summary of the Commission’s FY 2018
                                             efficiently, set higher prices, develop                  likely to have an annual effect of $100               Report and Order (FY 2018 Report and
                                             benefit designs or create marketing                      million in any 1 year. In addition, for               Order), FCC 18–65, MD Docket No. 18–
                                             strategies to avoid high risk enrollees.                 the reasons noted above, OMB has                      175 adopted on May 21, 2018 and
                                                                                                      determined that this is a major rule                  released on May 22, 2018. The full text
                                             V. Collection of Information
                                                                                                      under the Congressional Review Act.                   of this document is available for
                                             Requirements
                                                                                                         This final rule offers a further                   inspection and copying during normal
                                               This document does not impose                          explanation on budget neutrality and                  business hours in the FCC Reference
                                             information collection requirements,                     the use of statewide average premium in               Center, 445 12th Street SW, Room CY–
                                             that is, reporting, recordkeeping, or                    the risk adjustment payment transfer                  A257, Portals II, Washington, DC 20554,
                                             third-party disclosure requirements.                     formula when HHS is operating the                     and may also be purchased from the
                                             Consequently, there is no need for                       permanent risk adjustment program                     Commission’s copy contractor, BCPI,
                                             review by the Office of Management and                   established in section 1343 of the                    Inc., Portals II, 445 12th Street SW,
                                             Budget under the authority of the                        PPACA on behalf of a state for the 2017               Room CY–B402, Washington, DC 20554.
                                             Paperwork Reduction Act of 1995 (44                      benefit year. We note that we previously              Customers may contact BCPI, Inc. via
                                             U.S.C. 3501, et seq.).                                   estimated transfers associated with the               their website, http://www.bcpi.com, or
                                             VI. Regulatory Impact Analysis                           risk adjustment program in the Premium                call 1–800–378–3160. This document is
                                                                                                      Stabilization Rule and the 2017                       available in alternative formats
daltland on DSKBBV9HB2PROD with RULES




                                             A. Statement of Need                                     Payment Notice, and that the provisions               (computer diskette, large print, audio
                                               This final rule adopts the HHS-                        of this final rule do not change the risk             record, and braille). Persons with
                                             operated risk adjustment methodology                     adjustment transfers previously                       disabilities who need documents in
                                             for the 2017 benefit year set forth in the               estimated under the HHS-operated risk                 these formats may contact the FCC by
                                             2017 Payment Notice final rule to                        adjustment methodology established in                 email: FCC504@fcc.gov or phone: 202–
                                             ensure that the risk adjustment program                  those final rules. The approximate risk               418–0530 or TTY: 202–418–0432.


                                        VerDate Sep<11>2014   17:02 Jul 27, 2018   Jkt 244001   PO 00000   Frm 00062   Fmt 4700   Sfmt 4700   E:\FR\FM\30JYR1.SGM   30JYR1


                                                                 Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations                                                36461

                                             I. Procedural Matters                                    submarine cable regulatory fees, based                   4. Finally, while the Submarine Cable
                                                                                                      on a proposal from the submarine cable                Coalition contends that non-common
                                             A. Final Regulatory Flexibility Analysis
                                                                                                      industry.3 The methodology adopted                    carrier submarine cable systems should
                                               1. As required by the Regulatory                       was a tiered per-cable system, with                   pay lower fees than common carriers,
                                             Flexibility Act of 1980 (RFA),1 the                      higher fees for larger systems and lower              we note that the Commission adopted a
                                             Commission has prepared a Final                          fees for smaller systems. The                         competitively neutral methodology that
                                             Regulatory Flexibility Analysis (FRFA)                   Commission concluded that the                         included both common carriers and
                                             relating to this Report and Order. The                   methodology was in the public interest                non-common carriers in the Submarine
                                             FRFA is located towards the end of this                  and competitively neutral because it                  Cable Order, based on a consensus
                                             document.                                                included both common carriers and                     proposal from a group of operators,
                                             B. Final Paperwork Reduction Act of                      non-common carriers; all entities with                including at least one member of the
                                             1995 Analysis                                            cable landing licensees would be                      Coalition, GU Holdings, Inc., an
                                                                                                      required to pay this regulatory fee.4 At              indirect, wholly-owned subsidiary of
                                               2. This document does not contain                      that time, the Commission adopted a                   Google, Inc.8 The Coalition has not
                                             new or modified information collection                   five-tier system for the submarine cable              provided any evidence to support its
                                             requirements subject to the Paperwork                    industry, but since that date the                     claim that we should depart from this
                                             Reduction Act of 1995 (PRA), Public                      subsequent growth in the industry has                 competitively neutral methodology and
                                             Law 104–13. In addition, therefore, it                   moved all but two systems into the                    treat non-common carrier submarine
                                             does not contain any new or modified                     highest tier.5 In the 2017 FNPRM, we                  cable systems differently from common
                                             information collection burden for small                  sought comment on revising the                        carrier systems at this time.
                                             business concerns with fewer than 25                     regulatory fee tiers for submarine cable
                                             employees, pursuant to the Small                         systems.6 One commenter, the                          B. International Bearer Circuits and
                                             Business Paperwork Relief Act of 2002,                   Submarine Cable Coalition, generally                  Section 214 Authorizations
                                             Public Law 107–198, see 44 U.S.C.                        agrees with our proposal to revise the
                                             3506(c)(4).                                                                                                       5. In the 2017 FNPRM, the
                                                                                                      existing tiers.7
                                                                                                                                                            Commission sought comment on a
                                             C. Congressional Review Act                                 2. We adjust the tiers proposed in the
                                                                                                                                                            proposal raised by the Submarine Cable
                                                                                                      2017 FNPRM to reflect capacity growth
                                               3. The Commission will send a copy                                                                           Coalition, that in lieu of regulatory fees
                                                                                                      since 2009 when the submarine cable
                                             of this Report & Order to Congress and                                                                         for international bearer circuits (IBCs),
                                                                                                      tiers were first established. Specifically,
                                             the Government Accountability Office                                                                           we should assess a regulatory fee, based
                                                                                                      the regulatory fee tiers for submarine
                                             pursuant to the Congressional Review                     cable systems we adopt below add                      on International Bureau FTEs, on every
                                             Act, see 5 U.S.C. 801(a)(1)(A).                          higher thresholds to reflect capacity                 holder of an international section 214
                                                                                                      growth in the industry. Based on this                 authorization.9 SIA supports replacing
                                             II. Introduction                                                                                               the satellite IBC fee with a fee on each
                                                                                                      increase in capacity, we believe the tiers
                                                In this Report and Order, we address                  better capture varying types of                       international section 214 authorization
                                             several regulatory fee issues raised in                  submarine cable operators.                            and contends that such a fee for all
                                             the Further Notice of Proposed                              • Systems with capacity equal to or                entities with international section 214
                                             Rulemaking that published after the                      greater than 4,000 Gbps will now pay 16               authorizations would be appropriate
                                             Commission’s FY 2017 Report and                          payment units.                                        because the holders of international
                                             Order.2 More specifically, in this Report                   • Systems with capacity equal to or                section 214 authority are ‘‘directly
                                             and Order, we (1) adopt new tiers for                    greater than 1,000 Gbps but less than                 involved in international common
                                             calculating regulatory fees for                          4,000 Gbps will now pay 8 payment                     carrier services and benefit from
                                             submarine cable systems; (2) decline to                  units.                                                associated Commission regulation.
                                             adopt a new regulatory fee for                              • Systems with capacity equal to or                . . .’’ 10 The Submarine Cable Coalition
                                             international section 214 authorizations;                greater than 250 Gbps but less than                   contends that adopting a flat fee for all
                                             and (3) retain the optional bulk rate                    1,000 Gbps will now pay 4 payment                     holders of international section 214
                                             calculation for determining the number                   units.                                                authorizations would be an efficient and
                                             of subscribers in multiple dwelling                         • Systems with capacity equal to or                equitable methodology for assessing
                                             units used in the calculation of cable                   greater than 50 Gbps but less than 250                regulatory fees.11
                                             television regulatory fees.                              Gbps, will pay 2 payment units.                          6. Other commenters oppose this
                                             III. Report and Order                                       • Systems with capacity less than 50               approach. CTIA argues that assessing a
                                                                                                      Gbps will pay 1 payment unit.                         fee based on international section 214
                                             A. Submarine Cable Regulatory Fees                          3. Under the revised regulatory fee                authorizations would change the basis
                                               1. In 2009, the Commission adopted a                   tiers we adopt today, we estimate that                for the IBC fees, which is ownership and
                                             new methodology for calculating                          approximately half of the submarine                   use of international circuits, because
                                                                                                      cable systems will be in the bottom or                many international 214 authorization
                                               1 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601–
                                                                                                      middle tiers, while the remaining                     holders only provide resold service and
                                             612, has been amended by the Small Business              systems will be in the new highest tier.              do not have international facilities.12
                                             Regulatory Enforcement Fairness Act of 1996
                                             (SBREFA), Public Law 104–121, Title II, 110 Stat.        The FCC will provide proposed rates for               AT&T agrees with CTIA and notes that
                                             847 (1996). The SBREFA was enacted as Title II of        submarine cable systems for FY 2018 in                this approach would impose a new IBC
                                             the Contract with America Advancement Act of             future rulemaking.                                    regulatory fee on hundreds of entities
                                             1996 (CWAAA).
daltland on DSKBBV9HB2PROD with RULES




                                               2 See generally Assessment and Collection of
                                                                                                        3 Submarine Cable Order, 74 FR 22104 (May 12,         8 Submarine Cable Order, 24 FCC Rcd at 4208,
                                             Regulatory Fees for Fiscal Year 2017 (Final Rule),
                                                                                                      2009), 24 FCC Rcd at 4212–4216, paras. 7–18.          para. 1 & note 3.
                                             82 FR 44322 (Sept. 22, 2017), 32 FCC Rcd 7057              4 Id., 24 FCC Rcd at 4212–13, paras. 8–9.             9 2017 FNPRM, 32 FCC Rcd at 7075, para. 48. This
                                             (2017) (FY 2017 Report and Order) and Assessment
                                             and Collection of Regulatory Fees for Fiscal Year
                                                                                                        5 FY 2017 Report and Order, 32 FCC Rcd at 7074,     proposal was from the Submarine Cable Coalition.
                                             2017 (Further Notice of Proposed Rulemaking), 82         para. 46.                                               10 SIA Comments at 6.
                                                                                                        6 2017 FNPRM, 32 FCC Rcd at 7074–75, para. 46.        11 Coalition Reply Comments at 3.
                                             FR 50598 (Nov. 1, 2017), 32 FCC Rcd 7057 (2017)
                                             (2017 FNPRM).                                              7 Coalition Reply Comments at 3–4, 7–8.               12 CTIA Comments at 2–3.




                                        VerDate Sep<11>2014   17:02 Jul 27, 2018   Jkt 244001   PO 00000   Frm 00063   Fmt 4700   Sfmt 4700   E:\FR\FM\30JYR1.SGM   30JYR1


                                             36462               Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations

                                             that do not currently pay IBC fees.13                    satellite and terrestrial circuits, as well             MDU.25 Commenters addressing this
                                             These commenters also explain that                       as submarine cable systems.20 Further,                  issue unanimously support retaining the
                                             because only common carriers hold                        the Submarine Cable Coalition has not                   current optional bulk rate calculation.26
                                             international section 214 authorizations,                shown how a CMRS provider or an ITSP                    In particular, commenters state that our
                                             this approach would essentially reverse                  with an international section 214                       methodology continues to be ‘‘a
                                             our decision in the FY 2017 Report and                   authorization is subject to regulation or               reasonable and feasible approach to
                                             Order to include non-common carrier                      oversight by the International Bureau                   determining the number of MDU
                                             terrestrial IBCs in the IBC regulatory fee               that would justify an additional annual                 subscribers for regulatory fee purposes,
                                             methodology.14 For example, AT&T                         regulatory fee based on International                   and should be retained.’’ 27 And, there is
                                             states that replacing all or part of the                 Bureau FTEs. We recognize that                          no evidence in the record to support
                                             IBC fee with a flat fee on international                 oversight or regulation by the                          revising or eliminating this optional
                                             section 214 authorizations would                         International Bureau is not limited to                  bulk rate calculation. For these reasons,
                                             ‘‘effectively reverse the Commission’s                   the processing of international section                 we retain the bulk rate calculation.
                                             decisions to provide a competitively                     214 authorizations.21 We are, however,                  IV. Final Regulatory Flexibility
                                             neutral IBC fee structure.’’ 15                          unconvinced at this time that such costs                Analysis
                                             CenturyLink argues that entities holding                 justify requiring hundreds of carriers
                                             an international 214 authorization but                   regulated by other bureaus to pay                         1. As required by the Regulatory
                                             that do not have active international                    additional regulatory fees 22 based on                  Flexibility Act of 1980, as amended
                                             circuits do not receive the benefits of                  International Bureau FTEs. For these                    (RFA),28 an Initial Regulatory Flexibility
                                             Commission international activities, and                 reasons, we decline to adopt a new                      Analysis (IRFA) was included in the
                                             therefore should not be subject to                       regulatory fee category for international               2017 FNPRM.29 The Commission sought
                                             regulatory fees.16 CTIA also states that                 section 214 authorizations to replace                   written public comment on these
                                             international section 214 applicants                     IBC regulatory fees at this time.                       proposals including comment on the
                                             already pay a $1,155 filing fee with each                                                                        IRFA. This Final Regulatory Flexibility
                                             application and there is no evidence of                  C. Cable Television Services—                           Analysis (FRFA) conforms to the
                                             other International Bureau costs                         Calculation of Number of Subscribers                    IRFA.30
                                             associated with international section                                                                            A. Need for, and Objectives of, the
                                                                                                        8. In the FY 2008 FNPRM, the
                                             214 authorizations.17 Commenters also                                                                            Report and Order
                                                                                                      Commission sought comment on the
                                             note that such an approach would
                                                                                                      optional bulk rate calculation for                        2. This Report and Order adopts a
                                             present administrative difficulties since
                                             many carriers have multiple                              determining the number of subscribers                   revision to the existing tiers for
                                             international 214 authorizations and can                 in a multiple dwelling unit or MDU.23                   submarine cable regulatory fees.
                                             surrender them if the Commission                         The methodology for calculating the
                                                                                                      number of cable subscribers has been                    B. Summary of the Significant Issues
                                             adopted a per-international section 214                                                                          Raised by the Public Comments in
                                             authorization regulatory fee.18                          the following:
                                                                                                                                                              Response to the IRFA
                                                7. We decline to impose regulatory                    Cable television system operators should
                                             fees on international section 214                        compute their number of basic subscribers as
                                                                                                                                                                3. None.
                                             authorizations in lieu of our existing                   follows: Number of single family dwellings +            C. Description and Estimate of the
                                             IBC regulatory fees for terrestrial and                  number of individual households in multiple             Number of Small Entities to Which the
                                             satellite IBCs and submarine cable                       dwelling unit (apartments, condominiums,                Rules Will Apply
                                             systems. The record does not                             mobile home parks, etc.) paying at the basic
                                                                                                      subscriber rate + bulk rate customers +                    4. The RFA directs agencies to
                                             demonstrate that this approach is                                                                                provide a description of, and where
                                             advantageous over the existing scheme                    courtesy and free service. Note: Bulk-Rate
                                                                                                      Customers = Total annual bulk-rate charge               feasible, an estimate of the number of
                                             established in section 9(g) of the Act to                                                                        small entities that may be affected by
                                                                                                      divided by basic annual subscription rate for
                                             charge the IBC regulatory fee based on                                                                           the proposed rules and policies, if
                                                                                                      individual households. Operators may base
                                             active international bearer circuits.19                  their count on ‘‘a typical day in the last full         adopted.31 The RFA generally defines
                                             The Submarine Cable Coalition’s                          week’’ of December [year], rather than on a             the term ‘‘small entity’’ as having the
                                             proposal is also problematic because it                  count as of December 31, [year].24                      same meaning as the terms ‘‘small
                                             would exclude non-common carriers                                                                                business,’’ ‘‘small organization,’’ and
                                             from paying the fee. However, the                          9. In the 2017 FNPRM, we sought                       ‘‘small governmental jurisdiction.’’ 32 In
                                             Commission concluded in the FY 2017                      comment on whether we should keep                       addition, the term ‘‘small business’’ has
                                             Report and Order that regulatory fees                    the bulk rate calculation or if, due to the             the same meaning as the term ‘‘small
                                             should be paid for non-common carrier                    passage of time, we should modify the                   business concern’’ under the Small
                                                                                                      methodology to more accurately                          Business Act.33 A ‘‘small business
                                                13 AT&T Reply Comments at 6; CTIA Comments
                                                                                                      calculate the number of subscribers in a
                                             at 2–3.
                                                                                                                                                                25 2017   FNPRM, 32 FCC Rcd at 7076, paras. 50–
                                                14 CTIA Comments at 4–5; CenturyLink

                                             Comments at 5; AT&T Reply Comments at 5–6.
                                                                                                           20 FY
                                                                                                              2017 Report and Order, 32 FCC Rcd at            51.
                                                                                                      7071–2, paras. 34–35.                                      26 ITTA Comments at 1–2; NCTA and ACA
                                                15 AT&T Jan. 17, 2018 ex parte at 1.
                                                16 CenturyLink Comments at 5. See also AT&T
                                                                                                        21 For example, International Bureau FTEs could       Comments at 1–3.
                                                                                                                                                                 27 NCTA and ACA Comments at 2.
                                             Reply Comments at 6.                                     be involved in an international section 214
                                                17 CTIA Comments at 3–4.                              rulemaking proceeding, a proceeding related to             28 5 U.S.C. 603. The RFA, 5 U.S.C. 601–612 has

                                                18 CTIA Comments at 5; CenturyLink Comments           revocation of a carrier’s international section 214     been amended by the Small Business Regulatory
                                                                                                      authorization, or other matters related to section      Enforcement Fairness Act of 1996 (SBREFA), Public
                                             at 5; AT&T Reply Comments at 6. The Submarine
daltland on DSKBBV9HB2PROD with RULES




                                                                                                      214 of the Act.                                         Law 104–121, Title II, 110 Stat. 847 (1996).
                                             Cable Coalition contends that their proposal would                                                                  29 Assessment and Collection of Regulatory Fees
                                                                                                        22 The holders of such authorization pay
                                             reduce the burden on the International Bureau
                                             because of the costs associated with ‘‘overseeing        regulatory fees based on the service provided (e.g.,    for Fiscal Year 2017, 32 FCC Rcd 7057 (2017).
                                                                                                      CMRS or ITSP).                                             30 5 U.S.C. 604.
                                             redundant international Section 214 licensees.’’
                                                                                                        23 FY 2008 FNPRM, 73 FR 30563 (May 28, 2018),            31 5 U.S.C. 603(b)(3).
                                             Submarine Cable Coalition Reply Comments at 9.
                                             However, there is no evidence in the record that         24 FCC Rcd at 6407–6408, paras. 51–52.                     32 5 U.S.C. 601(6).

                                             there are such costs to the International Bureau.          24 This is essentially the same methodology we           33 5 U.S.C. 601(3) (incorporating the definition of
                                                19 47 U.S.C. 159(g).                                  sought comment on in the FY 2008 FNPRM.                 ‘‘small-business concern’’ from the Small Business



                                        VerDate Sep<11>2014   17:02 Jul 27, 2018   Jkt 244001   PO 00000     Frm 00064   Fmt 4700   Sfmt 4700   E:\FR\FM\30JYR1.SGM   30JYR1


                                                                  Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations                                                       36463

                                             concern’’ is one which: (1) Is                           such a business is small if it has 1,500                 the Commission concludes that most
                                             independently owned and operated; (2)                    or fewer employees.39 According to                       Competitive LECS, CAPs, Shared-
                                             is not dominant in its field of operation;               Commission data, census data for 2012                    Tenant Service Providers, and Other
                                             and (3) satisfies any additional criteria                shows that there were 3,117 firms that                   Local Service Providers, are small
                                             established by the SBA.34 Nationwide,                    operated that year. Of this total, 3,083                 entities. According to Commission data,
                                             there are a total of approximately 27.9                  operated with fewer than 1,000                           1,442 carriers reported that they were
                                             million small businesses, according to                   employees.40 The Commission therefore                    engaged in the provision of either
                                             the SBA.35                                               estimates that most providers of local                   competitive local exchange services or
                                                5. Wired Telecommunications                           exchange carrier service are small                       competitive access provider services.47
                                             Carriers. The U.S. Census Bureau                         entities that may be affected by the rules               Of these 1,442 carriers, an estimated
                                             defines this industry as ‘‘establishments                adopted.                                                 1,256 have 1,500 or fewer employees.48
                                             primarily engaged in operating and/or                       7. Incumbent LECs. Neither the                        In addition, 17 carriers have reported
                                             providing access to transmission                         Commission nor the SBA has developed                     that they are Shared-Tenant Service
                                             facilities and infrastructure that they                  a small business size standard                           Providers, and all 17 are estimated to
                                             own and/or lease for the transmission of                 specifically for incumbent local                         have 1,500 or fewer employees.49 Also,
                                             voice, data, text, sound, and video using                exchange services. The closest                           72 carriers have reported that they are
                                             wired communications networks.                           applicable NAICS code category is                        Other Local Service Providers.50 Of this
                                             Transmission facilities may be based on                  Wired Telecommunications Carriers as                     total, 70 have 1,500 or fewer
                                             a single technology or a combination of                  defined in paragraph 6 of this FRFA.                     employees.51 Consequently, based on
                                             technologies. Establishments in this                     Under that size standard, such a                         internally researched FCC data, the
                                             industry use the wired                                   business is small if it has 1,500 or fewer               Commission estimates that most
                                             telecommunications network facilities                    employees.41 According to Commission                     providers of competitive local exchange
                                             that they operate to provide a variety of                data, 3,117 firms operated in that year.                 service, competitive access providers,
                                             services, such as wired telephony                        Of this total, 3,083 operated with fewer                 Shared-Tenant Service Providers, and
                                             services, including VoIP services, wired                 than 1,000 employees.42 Consequently,                    Other Local Service Providers are small
                                             (cable) audio and video programming                      the Commission estimates that most                       entities.
                                             distribution, and wired broadband                        providers of incumbent local exchange                       9. Interexchange Carriers (IXCs).
                                             internet services. By exception,                         service are small businesses that may be                 Neither the Commission nor the SBA
                                             establishments providing satellite                       affected by the rules and policies                       has developed a definition for
                                             television distribution services using                   adopted. Three hundred and seven (307)                   Interexchange Carriers. The closest
                                             facilities and infrastructure that they                  Incumbent Local Exchange Carriers                        NAICS code category is Wired
                                             operate are included in this                             reported that they were incumbent local                  Telecommunications Carriers as defined
                                             industry.’’ 36 The SBA has developed a                   exchange service providers.43 Of this                    in paragraph 6 of this FRFA. The
                                             small business size standard for Wired                   total, an estimated 1,006 have 1,500 or                  applicable size standard under SBA
                                             Telecommunications Carriers, which                       fewer employees.44                                       rules is that such a business is small if
                                             consists of all such companies having                       8. Competitive Local Exchange                         it has 1,500 or fewer employees.52 U.S.
                                             1,500 or fewer employees.37 Census data                  Carriers (Competitive LECs),                             Census data for 2012 indicates that
                                             for 2012 shows that there were 3,117                     Competitive Access Providers (CAPs),                     3,117 firms operated during that year.
                                             firms that operated that year. Of this                   Shared-Tenant Service Providers, and                     Of that number, 3,083 operated with
                                             total, 3,083 operated with fewer than                    Other Local Service Providers. Neither                   fewer than 1,000 employees.53
                                             1,000 employees.38 Thus, under this                      the Commission nor the SBA has                           According to internally developed
                                             size standard, most firms in this                        developed a small business size                          Commission data, 359 companies
                                             industry can be considered small.                        standard specifically for these service                  reported that their primary
                                                6. Local Exchange Carriers (LECs).                    providers. The appropriate NAICS code                    telecommunications service activity was
                                             Neither the Commission nor the SBA                       category is Wired Telecommunications                     the provision of interexchange
                                             has developed a size standard for small                  Carriers, as defined in paragraph 6 of                   services.54 Of this total, an estimated
                                             businesses specifically applicable to                    this FRFA. Under that size standard,                     317 have 1,500 or fewer employees.55
                                             local exchange services. The closest                     such a business is small if it has 1,500                 Consequently, the Commission
                                             applicable NAICS code category is                        or fewer employees.45 U.S. Census data                   estimates that most interexchange
                                             Wired Telecommunications Carriers as                     for 2012 indicate that 3,117 firms                       service providers are small entities that
                                             defined in paragraph 6 of this FRFA.                     operated during that year. Of that                       may be affected by the rules adopted.
                                             Under the applicable SBA size standard,                  number, 3,083 operated with fewer than                      10. Prepaid Calling Card Providers.
                                                                                                      1,000 employees.46 Based on this data,                   Neither the Commission nor the SBA
                                             Act, 15 U.S.C. 632). Pursuant to 5 U.S.C. 601(3), the                                                             has developed a small business
                                             statutory definition of a small business applies              39 13   CFR 121.201, NAICS code 517110.
                                             ‘‘unless an agency, after consultation with the
                                                                                                                                                               definition specifically for prepaid
                                                                                                           40 http://factfinder.census.gov/faces/
                                             Office of Advocacy of the Small Business                 tableservices/jsf/pages/productview.xhtml?
                                                                                                                                                               calling card providers. The most
                                             Administration and after opportunity for public          pid=ECN_2012_US_51SSSZ5&prodType=table.                  appropriate NAICS code-based category
                                             comment, establishes one or more definitions of            41 13 CFR 121.201, NAICS code 517110.                  for defining prepaid calling card
                                             such term which are appropriate to the activities of       42 http://factfinder.census.gov/faces/
                                             the agency and publishes such definition(s) in the       tableservices/jsf/pages/productview.xhtml?                 47 See
                                             Federal Register.’’                                                                                                          Trends in Telephone Service, at Table 5.3.
                                                                                                      pid=ECN_2012_US_51SSSZ5&prodType=table.                    48 Id.
                                                34 15 U.S.C. 632.
                                                                                                        43 See Trends in Telephone Service, Federal
                                                                                                                                                                 49 Id.
                                                35 See SBA, Office of Advocacy, ‘‘Frequently
                                                                                                      Communications Commission, Wireline
daltland on DSKBBV9HB2PROD with RULES




                                                                                                                                                                 50 Id.
                                             Asked Questions,’’ https://www.sba.gov/sites/            Competition Bureau, Industry Analysis and
                                                                                                                                                                 51 Id.
                                             default/files/advocacy/SB-FAQ-2016_WEB.pdf.              Technology Division at Table 5.3 (Sept. 2010)
                                                36 http://www.census.gov/cgi-bin/sssd/naics/                                                                     52 13    CFR 121.201, NAICS code 517110.
                                                                                                      (Trends in Telephone Service).
                                             naicsrch.                                                  44 Id.                                                   53 http://factfinder.census.gov/faces/
                                                37 See 13 CFR 120.201, NAICS code 517110.               45 13 CFR 121.201, NAICS code 517110.                  tableservices/jsf/pages/productview.xhtml?pid=
                                                38 http://factfinder.census.gov/faces/                  46 http://factfinder.census.gov/faces/                 ECN_2012_US_51SSSZ5&prodType=table.
                                                                                                                                                                 54 See Trends in Telephone Service, at Table 5.3.
                                             tableservices/jsf/pages/productview.xhtml?               tableservices/jsf/pages/productview.xhtml?pid=
                                             pid=ECN_2012_US_51SSSZ5&prodType=table.                  ECN_2012_US_51SSSZ5&prodType=table.                        55 Id.




                                        VerDate Sep<11>2014   17:02 Jul 27, 2018   Jkt 244001   PO 00000     Frm 00065    Fmt 4700   Sfmt 4700   E:\FR\FM\30JYR1.SGM     30JYR1


                                             36464               Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations

                                             providers is Telecommunications                          211 have 1,500 or fewer employees.64                      activity was the provision of other toll
                                             Resellers. This industry comprises                       Consequently, the Commission                              carriage.72 Of these, an estimated 279
                                             establishments engaged in purchasing                     estimates that the majority of local                      have 1,500 or fewer employees.73
                                             access and network capacity from                         resellers are small entities that may be                  Consequently, the Commission
                                             owners and operators of                                  affected by the rules adopted.                            estimates that most Other Toll Carriers
                                             telecommunications networks and                             12. Toll Resellers. The Commission                     are small entities.
                                             reselling wired and wireless                             has not developed a definition for Toll                      14. Wireless Telecommunications
                                             telecommunications services (except                      Resellers. The closest NAICS code                         Carriers (except Satellite). This industry
                                             satellite) to businesses and households.                 Category is Telecommunications                            comprises establishments engaged in
                                             Establishments in this industry resell                   Resellers, and the SBA has developed a                    operating and maintaining switching
                                             telecommunications; they do not                          small business size standard for the                      and transmission facilities to provide
                                             operate transmission facilities and                      category of Telecommunications                            communications via the airwaves.
                                             infrastructure. Mobile virtual networks                  Resellers.65 Under that size standard,                    Establishments in this industry have
                                             operators (MVNOs) are included in this                   such a business is small if it has 1,500                  spectrum licenses and provide services
                                             industry.56 Under the applicable SBA                     or fewer employees.66 Census data for                     using that spectrum, such as cellular
                                             size standard, such a business is small                  2012 show that 1,341 firms provided                       services, paging services, wireless
                                             if it has 1,500 or fewer employees.57                    resale services during that year. Of that                 internet access, and wireless video
                                             U.S. Census data for 2012 show that                      number, 1,341 operated with fewer than                    services.74 The appropriate size
                                             1,341 firms provided resale services                     1,000 employees.67 Thus, under this                       standard under SBA rules is that such
                                             during that year. Of that number, 1,341                  category and the associated small                         a business is small if it has 1,500 or
                                             operated with fewer than 1,000                           business size standard, the majority of                   fewer employees. For this industry,
                                             employees.58 Thus, under this category                   these resellers can be considered small                   Census data for 2012 show that there
                                             and the associated small business size                   entities. According to Commission data,                   were 967 firms that operated for the
                                             standard, the majority of these prepaid                  881 carriers have reported that they are                  entire year. Of this total, 955 firms had
                                             calling card providers can be considered                 engaged in the provision of toll resale                   fewer than 1,000 employees. Thus,
                                             small entities. According to Commission                  services.68 Of this total, an estimated                   under this category and the associated
                                             data, 193 carriers have reported that                    857 have 1,500 or fewer employees.69                      size standard, the Commission estimates
                                             they are engaged in the provision of                     Consequently, the Commission                              that the majority of wireless
                                             prepaid calling cards.59 All 193 carriers                estimates that the majority of toll                       telecommunications carriers (except
                                             have 1,500 or fewer employees.60                         resellers are small entities.                             satellite) are small entities. Similarly,
                                             Consequently, the Commission                                13.Other Toll Carriers. Neither the                    according to internally developed
                                             estimates that the majority of prepaid                   Commission nor the SBA has developed                      Commission data, 413 carriers reported
                                             calling card providers are small entities                a definition for small businesses                         that they were engaged in the provision
                                             that may be affected by the rules                        specifically applicable to Other Toll                     of wireless telephony, including cellular
                                             adopted.                                                 Carriers. This category includes toll                     service, Personal Communications
                                                11. Local Resellers. Neither the                      carriers that do not fall within the                      Service (PCS), and Specialized Mobile
                                             Commission nor the SBA has developed                     categories of interexchange carriers,                     Radio (SMR) services.75 Of this total, an
                                             a small business size standard                           operator service providers, prepaid                       estimated 261 have 1,500 or fewer
                                             specifically for Local Resellers. The SBA                calling card providers, satellite service                 employees.76 Thus, using available data,
                                                                                                                                                                we estimate that the majority of wireless
                                             has developed a small business size                      carriers, or toll resellers. The closest
                                                                                                                                                                firms can be considered small.
                                             standard for the category of                             applicable NAICS code category is for
                                                                                                                                                                   15. Television Broadcasting. This
                                             Telecommunications Resellers. Under                      Wired Telecommunications Carriers as                      Economic Census category ‘‘comprises
                                             that size standard, such a business is                   defined in paragraph 6 of this FRFA.                      establishments primarily engaged in
                                             small if it has 1,500 or fewer                           Under the applicable SBA size standard,                   broadcasting images together with
                                             employees.61 Census data for 2012 show                   such a business is small if it has 1,500                  sound. These establishments operate
                                             that 1,341 firms provided resale services                or fewer employees.70 Census data for                     television broadcasting studios and
                                             during that year. Of that number, 1,341                  2012 shows that there were 3,117 firms                    facilities for the programming and
                                             operated with fewer than 1,000                           that operated that year. Of this total,                   transmission of programs to the
                                             employees.62 Under this category and                     3,083 operated with fewer than 1,000                      public.’’ 77 These establishments also
                                             the associated small business size                       employees.71 Thus, under this category                    produce or transmit visual programming
                                             standard, the majority of these local                    and the associated small business size                    to affiliated broadcast television
                                             resellers can be considered small                        standard, most Other Toll Carriers can                    stations, which in turn broadcast the
                                             entities. According to Commission data,                  be considered small. According to                         programs to the public on a
                                             213 carriers have reported that they are                 internally developed Commission data,                     predetermined schedule. Programming
                                             engaged in the provision of local resale                 284 companies reported that their                         may originate in their own studio, from
                                             services.63 Of this total, an estimated                  primary telecommunications service                        an affiliated network, or from external
                                               56 http://www.census.gov/cgi-bin/ssd/naics/                 64 Id.
                                                                                                                                                                sources. The SBA has created the
                                             naicsrch.                                                     65 13    CFR 121.201, NAICS code 517911.
                                                                                                                                                                following small business size standard
                                               57 13 CFR 121.201, NAICS code 517911.                       66 http://factfinder.census.gov/faces/               for Television Broadcasting firms: those
                                               58 http://factfinder.census.gov/faces/                 tableservices/jsf/pages/productview.xhtml?
                                             tableservices/jsf/pages/productview.xhtml?               pid=ECN_2012_US_51SSSZ5&prodType=table.                     72 Trends   in Telephone Service at Table 5.3.
daltland on DSKBBV9HB2PROD with RULES




                                             pid=ECN_2012_US_51SSSZ5&prodType=table.                    67 Id.                                                    73 Id.
                                               59 See Trends in Telephone Service, at Table 5.3.        68 Trends in Telephone Service at Table 5.3.              74 NAICS code 517210. See http://
                                               60 Id.                                                   69 Id.                                                  www.census.gov/cgi-bin/ssd/naics/naiscsrch.
                                               61 13 CFR 121.201, NAICS code 517911.                    70 13 CFR 121.201, NAICS code 517110.                     75 Trends in Telephone Service at Table 5.3.
                                               62 http://factfinder.census.gov/faces/                   71 http://factfinder.census.gov/faces/                    76 Id.

                                             tableservices/jsf/pages/productview.xhtml?               tableservices/jsf/pages/                                    77 U.S. Census Bureau, 2012 NAICS code
                                             pid=ECN_2012_US_51SSSZ5&prodType=table.                  productview.xhtml?pid=ECN_2012_US_                        Economic Census Definitions, http://
                                               63 See Trends in Telephone Service, at Table 5.3.      51SSSZ5&prodType=table.                                   www.census.gov.cgi-bin/sssd/naics/naicsrch.



                                        VerDate Sep<11>2014   17:02 Jul 27, 2018   Jkt 244001   PO 00000     Frm 00066     Fmt 4700   Sfmt 4700   E:\FR\FM\30JYR1.SGM   30JYR1


                                                                   Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations                                                     36465

                                             having $38.5 million or less in annual                     these services, we will presume that all                 systems or direct-to-home satellite
                                             receipts.78 The 2012 Economic Census                       LPTV licensees qualify as small entities                 systems, for transmission to viewers.90
                                             reports that 751 television broadcasting                   under the above SBA small business                       The SBA has established a size standard
                                             firms operated during that year. Of that                   size standard.                                           for this industry of $38.5 million or less.
                                             number, 656 had annual receipts of less                       18. Radio Broadcasting.                               Census data for 2012 shows that there
                                             than $25 million per year. Based on that                      This Economic Census category                         were 367 firms that operated that year.
                                             Census data we conclude that most                          ‘‘comprises establishments primarily                     Of this total, 319 operated with annual
                                             firms that operate television stations are                 engaged in broadcasting aural programs                   receipts of less than $25 million.91 Thus
                                             small. The Commission has estimated                        by radio to the public. Programming                      under this size standard, most firms
                                             the number of licensed commercial                          may originate in their own studio, from                  offering cable and other program
                                             television stations to be 1,383.79 In                      an affiliated network, or from external                  distribution services can be considered
                                             addition, according to Commission staff                    sources.’’ 85 The SBA has established a                  small and may be affected by rules
                                             review of the BIA Advisory Services,                       small business size standard for this                    adopted.
                                             LLC’s Media Access Pro Television                          category, which is: such firms having
                                             Database, on March 28, 2012, about 950                     $38.5 million or less in annual                             21. Cable Companies and Systems.
                                             of an estimated 1,300 commercial                           receipts.86 Census data for 2012 show                    The Commission has developed its own
                                             television stations (or approximately 73                   that 2,849 radio station firms operated                  small business size standards for the
                                             percent) had revenues of $14 million or                    during that year. Of that number, 2,806                  purpose of cable rate regulation. Under
                                             less.80 We therefore estimate that the                     operated with annual receipts of less                    the Commission’s rules, a ‘‘small cable
                                             majority of commercial television                          than $25 million per year.87 According                   company’’ is one serving 400,000 or
                                             broadcasters are small entities.                           to Commission staff review of BIA                        fewer subscribers nationwide.92
                                                16. In assessing whether a business                     Advisory Services, LLC’s Media Access                    Industry data indicate that there are
                                             concern qualifies as small under the                       Pro Radio Database, on March 28, 2012,                   currently 4,413 active cable systems in
                                             above definition, business (control)                       about 10,759 (97 percent) of 11,102                      the United States.93 Of this total, all but
                                             affiliations 81 must be included. Our                      commercial radio stations had revenues                   ten cable operators nationwide are small
                                             estimate, therefore, likely overstates the                 of $38.5 million or less. Therefore, most                under the 400,000-subscriber size
                                             number of small entities that might be                     such entities are small entities.                        standard.94 In addition, under the
                                             affected by our action, because the                           19. In assessing whether a business                   Commission’s rate regulation rules, a
                                             revenue figure on which it is based does                   concern qualifies as small under the                     ‘‘small system’’ is a cable system serving
                                             not include or aggregate revenues from                     above size standard, business                            15,000 or fewer subscribers.95 Current
                                             affiliated companies. In addition, an                      affiliations must be included.88 In                      Commission records show 4,413 cable
                                             element of the definition of ‘‘small                       addition, to be determined to be a                       systems nationwide.96 Of this total,
                                             business’’ is that the entity not be                       ‘‘small business,’’ the entity may not be                3,900 cable systems have fewer than
                                             dominant in its field of operation. We                     dominant in its field of operation.89 We                 15,000 subscribers, and 700 systems
                                             are unable at this time to define or                       note that it is difficult at times to assess             have 15,000 or more subscribers, based
                                             quantify the criteria that would                           these criteria in the context of media                   on the same records.97 Thus, under this
                                             establish whether a specific television                    entities, and our estimate of small                      standard as well, we estimate that most
                                             station is dominant in its field of                        businesses may therefore be over-                        cable systems are small entities.
                                             operation. Accordingly, the estimate of                    inclusive.                                                  22. Cable System Operators (Telecom
                                             small businesses to which rules may                           20. Cable Television and Other                        Act Standard). The Communications
                                             apply does not exclude any television                      Subscription Programming. This                           Act also contains a size standard for
                                             station from the definition of a small                     industry comprises establishments                        small cable system operators, which is
                                             business on this basis and is therefore                    primarily engaged in operating studios                   ‘‘a cable operator that, directly or
                                             possibly over-inclusive to that extent.                    and facilities for the broadcasting of                   through an affiliate, serves in the
                                                17. In addition, the Commission has                     programs on a subscription or fee basis.                 aggregate fewer than 1 percent of all
                                             estimated the number of licensed                           The broadcast programming is typically                   subscribers in the United States and is
                                             noncommercial educational television                       narrowcast in nature (e.g., limited                      not affiliated with any entity or entities
                                             stations to be 394.82 These stations are                   format, such as news, sports, education,                 whose gross annual revenues in the
                                             non-profit, and therefore considered to                    or youth-oriented). These                                aggregate exceed $250,000,000.’’ 98
                                             be small entities.83 There are also 2,382                  establishments produce programming in                    There are approximately 53 million
                                             low power television stations, including                   their own facilities or acquire                          cable video subscribers in the United
                                             Class A stations.84 Given the nature of                    programming from external sources. The
                                               78 13
                                                                                                        programming material is usually                             90 https://www.census.gov.cgi-bin/sssd/naics/
                                                       CFR 121.201, NAICS code 515120.
                                               79 See   FCC News Release, ‘‘Broadcast Station
                                                                                                        delivered to a third party, such as cable                naicsrch.
                                                                                                                                                                    91 http://factfinder.census.gov/faces/
                                             Totals as of March 31, 2017,’’ April 11, 2017;
                                             https://apps.fcc.gov/edocs_public/attachmatch/             https://apps.fcc.gov/edocs_public/attachmatch/           tableservices/jsf/pages/productview.xhtml?
                                             DOC-344256A1.pdf.                                          DOC-344256A1.pdf.                                        pid=ECN_2012_US-51SSSZ5&prodType=Table.
                                                                                                          85 https://www.census.gov.cgi-bin/sssd/naics/             92 47 CFR 76.901(e).
                                                80 We recognize that BIA’s estimate differs
                                                                                                                                                                    93 See Eighteenth Competition Report, 32 FCC
                                             slightly from the FCC total.                               naicsrch.
                                                81 ‘‘[Business concerns] are affiliates of each other     86 13 CFR 121.201, NAICS code 515112.                  Rcd at 584, para. 39 (citing the Commission’s Cable
                                             when one concern controls or has the power to                87 http://factfinder.census.gov/faces/                 Operations and Licensing Systems (COALS)
                                             control the other or a third party or parties controls     tableservices/jsf/pages/productview.xhtml?               database).
                                                                                                                                                                    94 See https://www.snl.com/web/
                                             or has to power to control both.’’ 13 CFR                  pid=ECN_2012_US_51SSSZ5&prodType=table.
daltland on DSKBBV9HB2PROD with RULES




                                             21.103(a)(1).                                                88 ‘‘Concerns and entities are affiliates of each      client?auth=inherit#industry/topCableMSOs (last
                                                82 See FCC News Release, ‘‘Broadcast Station
                                                                                                        other when one controls or has the power to control      visited July 18, 2017).
                                                                                                                                                                    95 47 CFR 76.901(c).
                                             Totals as of March 31, 2017,’’ April 11, 2017;             the other, or a third party or parties controls or has
                                             https://apps.fcc.gov/edocs_public/attachmatch/             the power to control both. It does not matter               96 See footnote 2, supra.

                                             DOC-344256A1.pdf.                                          whether control is exercised, so long as the power          97 August 5, 2015 report from the Media Bureau
                                                83 See generally 5 U.S.C. 601(4), (6).                  to control exists.’’ 13 CFR 121.103(a)(1) (an SBA        based on its research in COALS. See www.fcc.gov/
                                                84 See FCC News Release, ‘‘Broadcast Station            regulation).                                             coals.
                                             Totals as of March 31, 2017,’’ April 11, 2017;               89 13 CFR 121.102(b) (an SBA regulation).                 98 47 CFR 76.901 (f) and notes ff. 1, 2, and 3.




                                        VerDate Sep<11>2014    17:02 Jul 27, 2018   Jkt 244001   PO 00000   Frm 00067   Fmt 4700    Sfmt 4700   E:\FR\FM\30JYR1.SGM     30JYR1


                                             36466                Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations

                                             States today.99 Accordingly, an operator                 operate are included in this industry.103             records in the toll-free Service
                                             serving fewer than 524,037 subscribers                   The SBA determines that a wireline                    Management System for the toll-free
                                             shall be deemed a small operator if its                  business is small if it has fewer than                subscriber.109 Although RespOrgs are
                                             annual revenues, when combined with                      1500 employees.104 Census data for                    often wireline carriers, they can also
                                             the total annual revenues of all its                     2012 indicate that 3,117 wireline                     include non-carrier entities. Therefore,
                                             affiliates, do not exceed $250 million in                companies were operational during that                in the definition herein of RespOrgs,
                                             the aggregate.100 Based on available                     year. Of that number, 3,083 operated                  two categories are presented, i.e., Carrier
                                             data, we find that all but nine                          with fewer than 1,000 employees.105                   RespOrgs and Non-Carrier RespOrgs.
                                             incumbent cable operators are small                      Based on that data, we conclude that                     26. Carrier RespOrgs. Neither the
                                             entities under this size standard.101 We                 most wireline firms are small under the               Commission, the U.S. Census, nor the
                                             note that the Commission neither                         applicable standard. However, currently               SBA have developed a definition for
                                             requests nor collects information on                     only two entities provide DBS service,                Carrier RespOrgs. Accordingly, the
                                             whether cable system operators are                       AT&T and DISH Network. AT&T and                       Commission believes that the closest
                                             affiliated with entities whose gross                     DISH Network each report annual                       NAICS code-based definitional
                                             annual revenues exceed $250                              revenues that are in excess of the                    categories for Carrier RespOrgs are
                                             million.102 Although it seems certain                    threshold for a small business.                       Wired Telecommunications Carriers110
                                             that some of these cable system                          Accordingly, we conclude that DBS                     and Wireless Telecommunications
                                             operators are affiliated with entities                   service is provided only by large firms.              Carriers (except satellite).111
                                             whose gross annual revenues exceed                          24. All Other Telecommunications.                     27. The U.S. Census Bureau defines
                                             $250 million, we are unable at this time                 ‘‘All Other Telecommunications’’ is                   Wired Telecommunications Carriers as
                                             to estimate with greater precision the                   defined as follows: This U.S. industry is             establishments primarily engaged in
                                             number of cable system operators that                    comprised of establishments that are                  operating and/or providing access to
                                             would qualify as small cable operators                   primarily engaged in providing                        transmission facilities and infrastructure
                                             under the definition in the                              specialized telecommunications                        that they own and/or lease for the
                                             Communications Act.                                      services, such as satellite tracking,                 transmission of voice, data, text, sound,
                                                                                                      communications telemetry, and radar                   and video using wired communications
                                                23. Direct Broadcast Satellite (DBS)                                                                        networks. Transmission facilities may
                                                                                                      station operation. This industry also
                                             Service. DBS Service is a nationally                                                                           be based on a single technology or a
                                                                                                      includes establishments primarily
                                             distributed subscription service that                                                                          combination of technologies.
                                                                                                      engaged in providing satellite terminal
                                             delivers video and audio programming                     stations and associated facilities                    Establishments in this industry use the
                                             via satellite to a small parabolic dish                  connected with one or more terrestrial                wired telecommunications network
                                             antenna at the subscriber’s location.                    systems and capable of transmitting                   facilities that they operate to provide a
                                             DBS is now included in SBA’s                             telecommunications to, and receiving                  variety of services, such as wired
                                             economic census category ‘‘Wired                         telecommunications from, satellite                    telephony services, including VoIP
                                             Telecommunications Carriers.’’ The                       systems. Establishments providing                     services, wired (cable) audio and video
                                             Wired Telecommunications Carriers                        internet services or voice over internet              programming distribution, and wired
                                             industry comprises establishments                        protocol (VoIP) services via client-                  broadband internet services. By
                                             primarily engaged in operating and/or                    supplied telecommunications                           exception, establishments providing
                                             providing access to transmission                         connections are also included in this                 satellite television distribution services
                                             facilities and infrastructure that they                  industry.106 The SBA has developed a                  using facilities and infrastructure that
                                             own and/or lease for the transmission of                 small business size standard for ‘‘All                they operate are included in this
                                             voice, data, text, sound, and video using                Other Telecommunications,’’ which                     industry.112 The SBA has developed a
                                             wired telecommunications networks.                       consists of all such firms with gross                 small business size standard for Wired
                                             Transmission facilities may be based on                  annual receipts of $32.5 million or                   Telecommunications Carriers, which
                                             a single technology or combination of                    less.107 For this category, census data for           consists of all such companies having
                                             technologies. Establishments in this                     2012 show that there were 1,442 firms                 1,500 or fewer employees.113 Census
                                             industry use the wired                                   that operated for the entire year. Of                 data for 2012 show that there were 3,117
                                             telecommunications network facilities                    these firms, a total of 1,400 had gross               Wired Telecommunications Carrier
                                             that they operate to provide a variety of                annual receipts of less than $25                      firms that operated for that entire year.
                                             services, such as wired telephony                        million.108 Thus, most ‘‘All Other                    Of that number, 3,083 operated with
                                             services, including VoIP services, wired                 Telecommunications’’ firms potentially                less than 1,000 employees.114 Based on
                                             (cable) audio and video programming                      affected by the rules adopted can be                  that data, we conclude that most Carrier
                                             distribution; and wired broadband                        considered small.                                     RespOrgs that operated with wireline-
                                             internet services. By exception,                            25. RespOrgs. RespOrgs, i.e.,                      based technology are small.
                                             establishments providing satellite                       Responsible Organizations, are entities                  28. The U.S. Census Bureau defines
                                             television distribution services using                   chosen by toll-free subscribers to                    Wireless Telecommunications Carriers
                                             facilities and infrastructure that they                  manage and administer the appropriate                 (except satellite) as establishments
                                                                                                                                                            engaged in operating and maintaining
                                                99 See NCTA Industry Data, Cable’s Customer             103 http://www.census.gov/cgi-bin/sssd/naics/
                                                                                                                                                            switching and transmission facilities to
                                             Base, available at https://www.ncta.com/industry-        naicsrch.                                             provide communications via the
                                             data (last visited July 6, 2017).                          104 NAICS code 517110; 13 CFR 121.201.
                                                100 47 CFR 76.901(f) and notes ff. 1, 2, and 3.         105 http://factfinder.census.gov/faces/
                                                                                                                                                              109 See 47 CFR 52.101(b).
                                                101 See https://www.snl.com/web/                      tableservices.jasf/pages/productview.xhtml?
daltland on DSKBBV9HB2PROD with RULES




                                                                                                                                                              110 13 CFR 121.201, NAICS code 517110.
                                             client?auth=inherit#industry/topCableMSOs (last          pid+ECN_2012_US.51SSSZ4&prodType=table.
                                                                                                        106 http://www.census.gov/cgi-bin/ssssd/naics/        111 13 CFR 121.201, NAICS code 517210.
                                             visited July 18, 2018).
                                                                                                                                                              112 http://www.census.gov/cgi-bin/sssd/
                                                102 The Commission does receive such                  naicsrch.
                                             information on a case-by-case basis if a cable             107 13 CFR 121.201; NAICS code 517919.              naics.naicsrch.
                                                                                                                                                              113 13 CFR 120,201, NAICS code 517110.
                                             operator appeals a local franchise authority’s             108 http://factfinder.census.gov/faces/

                                             finding that the operator does not qualify as a small    tableservices/jsf/pages/                                114 http://factfinder.census.gov/faces/

                                             cable operator pursuant to section 76.901(f) of the      productview.xhtml?pid=ECN_2012_US_                    tableservices/jsf/pages/productview.xhtml?
                                             Commission’s rules. See 47 CFR 76.901(f).                51SSSZ4&prodType=table.                               pid=ECN_2012_US_51SSSZ4&prodType=table.



                                        VerDate Sep<11>2014   17:02 Jul 27, 2018   Jkt 244001   PO 00000   Frm 00068   Fmt 4700   Sfmt 4700   E:\FR\FM\30JYR1.SGM   30JYR1


                                                                 Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations                                                  36467

                                             airwaves, such as cellular services,                     Establishments providing                                coverage of the rule, or any part thereof,
                                             paging services, wireless internet access,               telecommunications or utilities                         for small entities.128
                                             and wireless video services.115 The                      management consulting services are                         35. This Report and Order adopts new
                                             appropriate size standard under SBA                      included in this industry.123 The SBA                   tiers in assessing regulatory fees for
                                             rules is that such a business is small if                has established a size standard for this                submarine cable systems. There should
                                             it has 1,500 or fewer employees.116                      industry of $15 million dollars or                      not be a significant impact on small
                                             Census data for 2012 show that 967                       less.124 Census data for 2012 show that                 entities because the fee is based on the
                                             Wireless Telecommunications Carriers                     3,683 firms operated in this industry for               number of systems and would therefore
                                             operated in that year. Of that number,                   that entire year. Of that number, 3,632                 reflect the size of the entity. In keeping
                                             955 operated with less than 1,000                        operated with less than $10 million in                  with the requirements of the Regulatory
                                             employees.117 Based on that data, we                     annual receipts.125 Based on this data,                 Flexibility Act, we have considered
                                             conclude that most Carrier RespOrgs                      we conclude that most non-carrier                       certain alternative means of mitigating
                                             that operated with wireless-based                        RespOrgs who provide TFN-related                        the effects of fee increases to a particular
                                             technology are small.                                    management consulting services are                      industry segment. For example, the
                                                29. Non-Carrier RespOrgs. Neither the                 small.126                                               Commission has increased the de
                                             Commission, the Census, nor the SBA                        32. In addition to the data contained                 minimis threshold to $1,000, which will
                                             have developed a definition of Non-                      in the four (see above) U.S. Census                     impact many small entities that pay
                                             Carrier RespOrgs. Accordingly, the                       NAICS code categories that provide                      regulatory fees. This increase in the de
                                             Commission believes that the closest                     definitions of what services and                        minimis threshold to $1,000 will relieve
                                             NAICS code-based definitional                            functions the Carrier and Non-Carrier                   regulatees both financially and
                                             categories for Non-Carrier RespOrgs are                  RespOrgs provide, Somos, the trade                      administratively. Regulatees may also
                                             ‘‘Other Services Related To                              association that monitors RespOrg                       seek waivers or other relief on the basis
                                             Advertising’’ 118 and ‘‘Other                            activities, compiled data showing that                  of financial hardship. See 47 CFR
                                             Management Consulting Services.’’ 119                    as of July 1, 2016, there were 23                       1.1166.
                                                30. The U.S. Census defines Other                     RespOrgs operational in Canada and 436
                                             Services Related to Advertising as                       RespOrgs operational in the United                      F. Federal Rules That May Duplicate,
                                             comprising establishments primarily                      States, for a total of 459 RespOrgs                     Overlap, or Conflict
                                             engaged in providing advertising                         currently registered with Somos.127                       None.
                                             services (except advertising agency
                                             services, public relations agency                        D. Description of Projected Reporting,                  V. Ordering Clause
                                             services, media buying agency services,                  Recordkeeping and Other Compliance                         36. Accordingly, it is ordered that,
                                             media representative services, display                   Requirements                                            pursuant to Section 9(a), (b), (e), (f), and
                                             advertising services, direct mail                          33. This Report and Order does not                    (g) of the Communications Act of 1934,
                                             advertising services, advertising                        adopt any new reporting, recordkeeping,                 as amended, 47 U.S.C. 159(a), (b), (e),
                                             material distribution services, and                      or other compliance requirements.                       (f), and (g), this Report and Order is
                                             marketing consulting services.120 The                    E. Steps Taken To Minimize Significant                  hereby adopted.
                                             SBA has established a size standard for                  Economic Impact on Small Entities, and                  Federal Communications Commission.
                                             this industry as annual receipts of $15                  Significant Alternatives Considered                     Marlene Dortch,
                                             million dollars or less.121 Census data
                                                                                                         34. The RFA requires an agency to                    Secretary.
                                             for 2012 show that 5,804 firms operated
                                             in this industry for the entire year. Of                 describe any significant alternatives that              [FR Doc. 2018–15651 Filed 7–27–18; 8:45 am]
                                             that number, 5,249 operated with                         it has considered in reaching its                       BILLING CODE 6712–01–P

                                             annual receipts of less than $10                         approach, which may include the
                                             million.122 Based on that data we                        following four alternatives, among
                                             conclude that most Non-Carrier                           others: (1) The establishment of                        FEDERAL COMMUNICATIONS
                                             RespOrgs who provide TFN-related                         differing compliance or reporting                       COMMISSION
                                             advertising services are small.                          requirements or timetables that take into
                                                                                                      account the resources available to small                47 CFR Part 63
                                                31. The U.S. Census defines Other
                                             Management Consulting Services as                        entities; (2) the clarification,                        [GN Docket No. 13–5; RM–11358; FCC 16–
                                             establishments primarily engaged in                      consolidation, or simplification of                     90]
                                             providing management consulting                          compliance or reporting requirements
                                             services (except administrative and                      under the rule for small entities; (3) the              Technology Transitions; Policies and
                                             general management consulting; human                     use of performance, rather than design,                 Rules Governing Retirement of Copper
                                             resources consulting; marketing                          standards; and (4) an exemption from                    Loops by Incumbent Local Exchange
                                             consulting; or process, physical                                                                                 Carriers
                                                                                                         123 http://www.census.gov/cgi-bin/sssd/
                                             distribution, and logistics consulting).                                                                         AGENCY:   Federal Communications
                                                                                                      naics.naicsrch.
                                                                                                         124 13 CFR 120.201, NAICS code 514618.               Commission.
                                               115 http://www.census.gov/cgi-bin/sssd/

                                             naics.naicsrch.
                                                                                                         125 http://factfinder.census.gov/faces/              ACTION: Final rule; announcement of
                                               116 13 CFR 120.201, NAICS code 517120.
                                                                                                      tableservices/jsf/pages/productview.xhtml?              effective date.
                                                                                                      pid=ECN_2012_US_51SSSZ4&prodType=table.
                                               117 http://factfinder.census.gov/faces/
                                                                                                         126 The four NAICS code-based categories
                                             tableservices/jsf/pages/productview.xhtml?                                                                       SUMMARY:  In this document, the
                                                                                                      selected above to provide definitions for Carrier and
                                             pid=ECN_2012_US_51SSSZ4&prodType=table.
                                                                                                      Non-Carrier RespOrgs were selected because as a
                                                                                                                                                              Commission announces that the Office
daltland on DSKBBV9HB2PROD with RULES




                                               118 13 CFR 120.201, NAICS code 541890.
                                                                                                      group they refer generically and comprehensively to     of Management and Budget (OMB) has
                                               119 13 CFR 120.201, NAICS code 541618.
                                                                                                      all RespOrgs. Therefore, all RespOrgs, including        approved, for a period of three years, the
                                               120 http://www.census.gov/cgi-bin/sssd/
                                                                                                      those not identified specifically or individually,      information collection associated with
                                             naics.naicsrch.                                          must comply with the rules adopted in the
                                               121 13 CFR 120.201, NAICS code 541890.                 Regulatory Fees Report and Order associated with
                                                                                                                                                              the Commission’s discontinuance rules.
                                               122 http://factfinder.census.gov/faces/                this Final Regulatory Flexibility Analysis.             This document is consistent with the
                                             tableservices/jsf/pages/productview.xhtml?                  127 Email from Jennifer Blanchard, Somos, July 1,

                                             pid=ECN_2012_US_51SSSZ4&prodType=table.                  2016.                                                     128 5   U.S.C. 603(c)(1)–(c)(4).



                                        VerDate Sep<11>2014   17:02 Jul 27, 2018   Jkt 244001   PO 00000   Frm 00069   Fmt 4700   Sfmt 4700   E:\FR\FM\30JYR1.SGM       30JYR1



Document Created: 2018-07-28 01:44:04
Document Modified: 2018-07-28 01:44:04
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal action.
DatesThis final action is effective August 29, 2018.
ContactRoland Helvajian, Office of Managing Director at (202) 418-0444.
FR Citation83 FR 36460 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR