83_FR_47260 83 FR 47079 - Assessment and Collection of Regulatory Fees for Fiscal Year 2018

83 FR 47079 - Assessment and Collection of Regulatory Fees for Fiscal Year 2018

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 83, Issue 181 (September 18, 2018)

Page Range47079-47097
FR Document2018-19548

In this document, the Commission revises its Schedule of Regulatory Fees to recover an amount of $322,035,000 that Congress has required the Commission to collect for fiscal year 2018. Section 9 of the Communications Act of 1934, as amended, provides for the annual assessment and collection of regulatory fees under sections 9(b)(2) and 9(b)(3), respectively, for annual ``Mandatory Adjustments'' and ``Permitted Amendments'' to the Schedule of Regulatory Fees.

Federal Register, Volume 83 Issue 181 (Tuesday, September 18, 2018)
[Federal Register Volume 83, Number 181 (Tuesday, September 18, 2018)]
[Rules and Regulations]
[Pages 47079-47097]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19548]


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

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 18-175; FCC 18-126]


Assessment and Collection of Regulatory Fees for Fiscal Year 2018

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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

SUMMARY: In this document, the Commission revises its Schedule of 
Regulatory Fees to recover an amount of $322,035,000 that Congress has 
required the Commission to collect for fiscal year 2018. Section 9 of 
the Communications Act of 1934, as amended, provides for the annual 
assessment and collection of regulatory fees under sections 9(b)(2) and 
9(b)(3), respectively, for annual ``Mandatory Adjustments'' and 
``Permitted Amendments'' to the Schedule of Regulatory Fees.

DATES: Effective September 18, 2018, except for the amendment to Sec.  
1.1940, which is effective October 1, 2018. To avoid penalties and 
interest, regulatory fees should be paid by the due date of September 
25, 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 Report 
and Order, FCC 18-126, MD Docket No. 18-175, adopted on August 28, 2018 
and released on August 29, 2018. The full text of this document is 
available for public inspection and copying during normal business 
hours in the FCC Reference Center (Room CY-A257), 445 12th Street SW, 
Washington, DC 20554, or by downloading the text from the Commission's 
website at http://transition.fcc.gov/Daily_Releases/Daily_Business/2017/db0906/FCC-17-111A1.pdf.

I. Administrative 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 the Report and Order to 
Congress and the Government Accountability Office pursuant to the 
Congressional Review Act, 5 U.S.C. 801(a)(1)(A).

II. Introduction

    1. This Report and Order adopts a schedule of regulatory fees to 
assess and collect $322,035,000 in regulatory fees for fiscal year (FY) 
2018, pursuant to section 9 \2\ of the Communications Act of 1934, as 
amended, and the Commission's FY 2018 Appropriation.\3\ The schedule of 
regulatory fees for FY 2018 adopted herein is attached in Table 4. The 
regulatory fees for all payors are due in September 2018.
---------------------------------------------------------------------------

    \2\ 47 U.S.C. 159. Although the Repack Airwaves Yielding Better 
Access for Users of Modern Services Act of 2018, or the RAY BAUM'S 
Act of 2018, amended sections 8 and 9 and added section 9A to the 
Communications Act, those provisions do not become effective until 
October 1, 2018. Consolidated Appropriations Act, 2018, Public Law 
Number 115-141, 132 Stat. 1084, Division P--RAY BAUM's Act of 2018, 
Title I, 103 (2018).
    \3\ Consolidated Appropriations Act, 2018, Division E--Financial 
Services and General Government Appropriations Act, 2018, Title V--
Independent Agencies, Public Law 115-141 (March 23, 2018) (FCC FY 
2018 Appropriation).
---------------------------------------------------------------------------

    2. Additionally, we amend our rules in accordance with the 
directives of the RAY BAUM'S Act regarding the collection of delinquent 
debts.\4\ This rule change will become effective on October 1, 2018.
---------------------------------------------------------------------------

    \4\ See supra note 1.
---------------------------------------------------------------------------

III. Background

    3. The Commission is required by Congress to assess regulatory fees 
each year in an amount that can reasonably be expected to equal the 
amount of its appropriation.\5\ Regulatory fees, mandated by Congress, 
are collected ``to recover the costs of . . . enforcement activities, 
policy and rulemaking activities, user information services, and 
international activities.'' \6\ Regulatory fees are to ``be derived by 
determining the full-time equivalent number of employees performing'' 
these activities, ``adjusted to take into account factors that are 
reasonably related to the benefits provided to the payer of the fee by 
the Commission's activities. . . . .'' \7\ Regulatory fees recover 
direct costs, such as salary and expenses; indirect costs, such as 
overhead functions; and support costs, such as rent, utilities, and 
equipment.\8\ Regulatory fees also cover the costs incurred in 
regulating entities that are statutorily exempt from paying regulatory 
fees,\9\ entities whose regulatory fees are waived,\10\ and entities 
providing services for which we do not assess regulatory fees.
---------------------------------------------------------------------------

    \5\ 47 U.S.C. 159(b)(1)(B).
    \6\ 47 U.S.C. 159(a).
    \7\ 47 U.S.C. 159(b)(1)(A).
    \8\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2004, Report and Order, 19 FCC Rcd 11662, 11666, paragraph 11 (2004) 
(FY 2004 Report and Order), 69 FR 41028 (July 7, 2004).
    \9\ For example, governmental and nonprofit entities are exempt 
from regulatory fees under section 9(h). 47 U.S.C. 159(h); 47 CFR 
1.1162.
    \10\ 47 CFR 1.1166.
---------------------------------------------------------------------------

    4. Congress sets the amount of regulatory fees the Commission must 
collect each year in the Commission's fiscal year appropriations. 
Section 9(a)(2) of the Communications Act requires the Commission to 
collect fees sufficient to offset the amount appropriated.\11\ To 
calculate regulatory fees, the Commission allocates the total 
collection target across all regulatory fee categories. The allocation 
of fees to fee categories is based on the Commission's calculation of 
Full Time Employees (FTEs) in each regulatory fee category.\12\ FTEs 
are classified as ``direct'' if the employee is in one of the four 
``core'' bureaus; otherwise, that employee is considered an 
``indirect'' FTE.\13\ The

[[Page 47080]]

total FTEs for each fee category includes the direct FTEs associated 
with that category, plus a proportional allocation of indirect 
FTEs.\14\ The Commission then allocates the total amount to be 
collected among the various regulatory fee categories within each of 
the core bureaus. Each regulatee within a fee category pays its 
proportionate share based on an objective measure (e.g., revenues or 
number of subscribers).\15\ These calculations are illustrated in Table 
3. The sources for the unit estimates that are used in these 
calculations are listed in Table 5.
---------------------------------------------------------------------------

    \11\ 47 U.S.C. 159(a)(2).
    \12\ One FTE is a unit of measure equal to the work performed 
annually by a full-time person (working a 40 hour workweek for a 
full year) assigned to the particular job, and subject to agency 
personnel staffing limitations established by the U.S. Office of 
Management and Budget.
    \13\ The core bureaus, which have the direct FTEs, are the 
Wireline Competition Bureau (124), Wireless Telecommunications 
Bureau (101), Media Bureau (135), and part of the International 
Bureau (24). The indirect FTEs are the employees from the following 
bureaus and offices: Enforcement Bureau (203), Consumer & 
Governmental Affairs Bureau (136), Public Safety and Homeland 
Security Bureau (104), part of the International Bureau (72), part 
of the Wireline Competition Bureau (38), Chairman and Commissioners' 
offices (15), Office of the Managing Director (149), Office of 
General Counsel (74), Office of the Inspector General (46), Office 
of Communications Business Opportunities (8), Office of Engineering 
and Technology (73), Office of Legislative Affairs (9), Office of 
Strategic Planning and Policy Analysis (15), Office of Workplace 
Diversity (5), Office of Media Relations (14), and Office of 
Administrative Law Judges (4).
    \14\ The Commission observed in the FY 2013 Report and Order 
that ``the high percentage of the indirect FTEs is indicative of the 
fact that many Commission activities and costs are not limited to a 
particular fee category and instead benefit the Commission as a 
whole.'' See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2013, Report and Order, 28 FCC Rcd 12351, 12357, paragraph 17 
(2013) (FY 2013 Report and Order), 78 FR 52433 (Aug. 23, 2013).
    \15\ See Procedures for Assessment and Collection of Regulatory 
Fees, Notice of Proposed Rulemaking, 27 FCC Rcd 8458, 8461-62, 
paragraphs 8-11 (2012) (FY 2012 NPRM), 77 FR 29275 (May 17, 2012).
---------------------------------------------------------------------------

    5. The Commission annually reviews the regulatory fee schedule, 
proposes changes to the schedule to reflect changes in the amount of 
its appropriation, and proposes increases or decreases to the schedule 
of regulatory fees.\16\ As part of its annual review, the Commission 
also regularly seeks to improve the regulatory fee process.\17\
---------------------------------------------------------------------------

    \16\ 47 U.S.C. 159(b)(1)(B).
    \17\ In the FY 2013 Report and Order, the Commission adopted 
updated FTE allocations to more accurately reflect the number of 
FTEs working on regulation and oversight of regulatees in the fee 
categories. FY 2013 Report and Order, 28 FCC Rcd at 12354-58, 
paragraphs 10-20. This was recommended in a report issued by the 
Government Accountability Office (GAO) in 2012. See GAO ``Federal 
Communications Commission Regulatory Fee Process Needs to be 
Updated,'' GAO-12-686 (August 2012) (GAO Report) at 36, http://www.gao.gov/products/GAO-12-686. The Commission has since updated 
the FTE allocations annually. In addition, the Commission 
reallocated some FTEs from the International Bureau as indirect; 
combined the UHF and VHF television stations into one regulatory fee 
category; and added internet Protocol Television (IPTV) to the cable 
television regulatory fee category. FY 2013 Report and Order, 28 FCC 
Rcd at 12355-63, paragraphs 13-33.
---------------------------------------------------------------------------

    6. In the FY 2018 Notice of Proposed Rulemaking, the Commission 
proposed to collect $322,035,000 in regulatory fees for FY 2018 and 
sought comment on a detailed proposed fee schedule.\18\ The Commission 
sought comment specifically on an incremental increase in the DBS 
regulatory fee \19\ and on proposed regulatory fees for terrestrial and 
satellite international bearer circuits for FY 2018.\20\ Additionally, 
the Commission sought comment on the methodology for calculating 
broadcast television station regulatory fees for FY 2019 \21\ and 
whether to adopt a new regulatory fee category for small satellites for 
FY 2019, and if so, what the appropriate regulatory fee for small 
satellites should be.\22\ We received 9 comments and four reply 
comments on the FY 2018 NPRM.\23\
---------------------------------------------------------------------------

    \18\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2018, Report and Order and Notice of Proposed Rulemaking, FCC 
18-65 (2018) (FY 2018 NPRM), 83 FR 27846 (June 14, 2018).
    \19\ Id. paragraphs 17-20.
    \20\ Id. paragraphs 22-26.
    \21\ Id. paragraphs 27-31.
    \22\ Id. paragraphs 32-33. We defer consideration of a new 
regulatory fee category, and the appropriate regulatory fee, for 
small satellites until we adopt a definition of ``small satellites'' 
in the pending Small Satellite NPRM proceeding. See Streamlining 
Licensing Procedures for Small Satellites, IB Docket No. 18-86, 
Notice of Proposed Rulemaking, FCC 18-44 (2018) (Small Satellite 
NPRM), 83 FR 24064 (May 24, 2018).
    \23\ Commenters to the FY 2018 NPRM are listed in Appendix A.
---------------------------------------------------------------------------

IV. Report and Order

    7. In this FY 2018 Report and Order, we adopt the regulatory fee 
schedule proposed in the FY 2018 NPRM for FY 2018, pursuant to section 
9 of the Communications Act, to collect $322,035,000 in regulatory 
fees. Of this amount, we project approximately $20.3 million (6.25 
percent of the total FTE allocation) in fees from the International 
Bureau regulatees; $84.7 million (26.3 percent of the total FTE 
allocation) in fees from the Wireless Telecommunications Bureau 
regulatees; $103.99 million (32.29 percent of the total FTE allocation) 
in fees from the Wireline Competition Bureau regulatees; and $113.22 
million (35.16 percent of the total FTE allocation) in fees from the 
Media Bureau regulatees. These regulatory fees are due in September 
2018. The schedule of regulatory fees for FY 2018 adopted herein is 
attached as Table 4.

FY 2018 Adjustment: Video Distribution Provider Regulatory Fees

    8. Among other activities, the Media Bureau oversees the regulation 
of video distribution providers like multichannel video programming 
distributors (MVPDs), i.e., regulated companies that make available for 
purchase, by subscribers or customers, multiple channels of video 
programming. The Media Bureau relies on a common pool of FTEs to carry 
out its oversight of MVPDs and other video distribution providers. 
These responsibilities include market modifications, local-into-local, 
must-carry and retransmission consent disputes, program carriage and 
program access complaints, over-the-air reception device declaratory 
rulings and waivers, media rule modernization, media ownership, and 
proposed transactions.\24\
---------------------------------------------------------------------------

    \24\ See NCTA Comments at 6-7; ACA Comments at 4 & n.13.
---------------------------------------------------------------------------

    9. For these activities in FY 2018, the Commission must collect 
$62,330,000 in regulatory fees from three categories of providers: 
Cable TV systems, IPTV providers, and direct broadcast satellite (DBS) 
operators. Although the Commission decided to assess cable TV systems 
and IPTV providers the same for regulatory fee purposes--assessing each 
provider based on its subscribership--the Commission took a different 
approach when it began to assess Media Bureau-based regulatory fees on 
DBS operators. Specifically, the Commission decided to phase in the new 
Media Bureau-based regulatory fee for DBS, starting at 12 cents per 
subscriber per year.\25\ At the same time, the Commission committed to 
updating the regulatory fee rate in future years ``as necessary for 
ensuring an appropriate level of regulatory parity and considering the 
resources dedicated to this new regulatory fee subcategory.'' \26\ 
Accordingly, the Commission increased the regulatory fee for DBS 
operators to 27 cents (including a three cent moving fee) and then 38 
cents (including a two cent moving fee) per subscriber per year, with 
the regulatory fees paid by DBS operators reducing those paid by other 
MVPDs.\27\
---------------------------------------------------------------------------

    \25\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2015, Report and Order, 30 FCC Rcd 10268, 10277, paragraph 20 
(2015) (FY 2015 Report and Order), 80 FR 55775 (Sept. 17, 2015).
    \26\ FY 2015 Report and Order, 30 FCC Rcd at 10277, paragraph 
20.
    \27\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2017, Report and Order, 32 FCC Rcd 7057, 7067, paragraph 20 
(2017) (FY 2017 Report and Order), 82 FR 44322 (Sept. 22, 2017); 
Assessment and Collection of Regulatory Fees for Fiscal Year 2016, 
Report and Order, 31 FCC Rcd 10339, 10350, paragraph 30 (2016) (FY 
2016 Report and Order), 81 FR 65926 (Sept. 26, 2016).
---------------------------------------------------------------------------

    10. For FY 2018, the Commission proposed to continue the transition 
by increasing the DBS regulatory fee rate to 48 cents per subscriber 
per year, thereby leaving other MVPDs with a regulatory fee of 77 cents 
per subscriber per year.\28\ Although a common pool of FTEs work on 
MVPD and related issues for DBS operators, IPTV providers, and cable TV 
systems, which some commenters argue justifies immediate parity in 
regulatory

[[Page 47081]]

fees across these providers,\29\ we believe it prudent to adopt our 
proposal to increase such rates by less than one cent per subscriber 
per month, or 10 cents per subscriber per year. Doing so reflects the 
statutory imperative to take into account the FTEs devoted to oversight 
of this common category of regulatees, ``adjusted to take into account 
factors that are reasonably related to the benefits provided to the 
payor of the fee by the Commission's activities, including . . . 
factors that the Commission determines are necessary in the public 
interest,'' \30\ such as our concern to mitigate the impact of 
increases on MVPDs should we move to immediate parity (which a 
regulatory fee of 67 cents per subscriber per year would achieve).\31\
---------------------------------------------------------------------------

    \28\ FY 2018 NPRM at paragraph 19.
    \29\ ACA Comments at 1-3; NCTA Comments at 4.
    \30\ 47 U.S.C. 159(b)(1)(A).
    \31\ For similar reasons, we reject NCTA's request to increase 
the DBS regulatory fee to at least 60 cents per subscriber per year 
(and reduce the proposed cable television/IPTV regulatory fee to 72 
cents per subscriber per year) in order to accommodate cable 
television providers' chosen billing systems. See NCTA Comments at 8 
& n.23.
---------------------------------------------------------------------------

    11. AT&T and DISH--the two DBS operators--reiterate several 
arguments against any increase in DBS regulatory fees that they have 
raised, and the Commission has rejected, in previous years. For 
example, AT&T and DISH claim that the proposed fee increase will result 
in ``rate shock,'' \32\ even though last year the Commission held an 
increase of about one penny per subscriber per month would not cause 
such shock.\33\ AT&T and DISH also claim the Commission cannot increase 
DBS regulatory fees without an allocation of ``additional FTEs to 
handle DBS matters,'' \34\ even though last year the Commission held 
that the DBS regulatory fee is based on the significant number of Media 
Bureau FTEs that work on MVPD issues that include DBS, ``not a 
particular number of FTEs focused solely on DBS'' or ``specific recent 
proceedings.'' \35\ For these reasons, we reject these arguments and 
agree with commenters that the continued participation of DBS operators 
in Commission proceedings, along with the use of a common pool of FTEs 
to oversee MVPD matters (including matters related to DBS operators in 
particular), justifies an increase in the DBS regulatory fee rate.
---------------------------------------------------------------------------

    \32\ DISH and AT&T Comments at 9.
    \33\ See also FY 2017 Report and Order, 32 FCC Rcd at 7067, 
paragraph 21 (rejecting the claim that a regulatory fee increase of 
several cents per subscriber, per month would harm customers given 
that ``such an increase is a negligible faction of a monthly 
bill'').
    \34\ AT&T and DISH Comments at 3.
    \35\ FY 2017 Report and Order, 32 FCC Rcd at 7067-68, paragraphs 
22-23; see also FY 2015 NPRM and Report and Order, 30 FCC Rcd 5354, 
5369, paragraph 33 (2015) (FY 2015 NPRM and Report and Order), 80 FR 
37206 (June 30, 2015) (``We also reject the argument raised by 
DIRECTV and DISH that section 9 of the Act requires us to `show that 
DBS and cable occupy a comparable number of FTEs.' '').
---------------------------------------------------------------------------

FY 2018 Adjustment: Terrestrial and Satellite International Bearer 
Circuits

    12. As discussed in the FY 2018 NPRM, the Commission has previously 
sought comment on adopting a tiered methodology for assessing 
terrestrial and satellite international bearer circuit regulatory fees, 
and we should have sufficient information from payors in September 2018 
to be able to consider a tiered rate structure for FY 2019.\36\ In the 
meantime, the Commission proposed to continue assessing terrestrial and 
satellite IBC regulatory fees on a per-circuit basis for FY 2018, using 
Gbps as the measurement rather than 64 kbps.\37\ CenturyLink observes 
that the proposed rate of $0.02 per circuit in Appendix B to the FY 
2018 NPRM used 64 kbps instead of Gbps.\38\ We agree with CenturyLink 
that the measurement listed in the FY 2018 NPRM should have been Gbps 
instead of 64 kbps, and we are therefore adopting the proposed per-
circuit fee of $176, using Gbps, in lieu of 64 kbps. No commenter 
opposed this proposal.
---------------------------------------------------------------------------

    \36\ See FY 2018 NPRM, paragraphs 22-26. SIA raises a number of 
arguments in opposition to a tiered methodology for assessing 
terrestrial and satellite IBC regulatory fees. See SIA Comments at 
1-2 (``SIA continues to oppose use of a tier-based system to 
calculate fees . . . . Instead, the Commission should reconsider 
exempting satellite IBCs from IBC [regulatory] fees or retain the 
current assessment method.); id. at 2-5. Because we do not adopt a 
tiered methodology at this time, we do not address SIA's arguments 
here.
    \37\ FY 2018 NPRM. paragraph 26.
    \38\ CenturyLink Comments at 1-2.
---------------------------------------------------------------------------

FY 2019 Amendment: Broadcast Television Stations

    13. Full service television station licensees are subject to 
regulatory fee payments based on the market served. Historically, 
broadcast full service television stations pay regulatory fees based on 
the schedule of regulatory fees established in section 9(g) of the 
Communications Act, which consolidated stations into market groupings 
1-10, 11-25, 26-50, 51-100, and remaining markets.\39\ The Commission 
subsequently established a separate fee category for broadcast 
television satellite stations.\40\ The Commission uses Nielsen 
Designated Market Areas (DMAs) to define the market a station serves. 
For FY 2017, the regulatory fees for full service stations ranged from 
$1,725 for satellite stations to $59,750 for stations in markets 1-10.
---------------------------------------------------------------------------

    \39\ 47 U.S.C. 159(g).
    \40\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 1995, Report and Order, 10 FCC Rcd 13512, 13534, paragraph 60 
(1995), 60 FR 34004 (June 29, 1995).
---------------------------------------------------------------------------

    14. In the FY 2018 NPRM, we sought comment on whether we could more 
accurately ascertain the actual market served by a station for purposes 
of assessing regulatory fees by examining the actual population covered 
by the station's contours rather than using DMAs.\41\ Specifically we 
sought comment on whether, for FY 2019 and going forward, regulatory 
fees should be assessed for full-power broadcast television stations 
based on the population covered by the station's contour, instead of 
DMAs.\42\ No commenter opposed this proposal. In the FY 2018 NPRM, we 
also sought comment on whether to phase in the implementation of this 
methodology over a two-year, or longer, period of time.\43\ In order to 
facilitate the transition to this new fee structure, for FY 2019, we 
plan to adopt a fee based on an average of the current DMA methodology 
and the population covered by a full-power broadcast station's contour. 
Thereafter, in 2020, we plan to assess regulatory fees for full-power 
broadcast stations based on the population covered by the station's 
contour. Such an approach is consistent with the methodology used for 
AM and FM broadcasters, in which fees are based on population served 
and the class of service based on the signal contours. In addition, 
this approach addresses concerns about the assessment of regulatory 
fees on broadcast television satellite stations serving small markets 
at the fringe of larger DMAs.\44\ The population data for broadcasters' 
service areas will be extracted annually from the TVStudy database, 
based on a station's projected noise-limited service contour, 
consistent with our rules,\45\ and we will enable broadcasters to 
review population data for their service area in our annual regulatory 
fee NPRM. We will multiply the population by a factor for which we will 
seek comment in the annual regulatory fee NPRM, e.g., 0.63 cents 
($.0063).
---------------------------------------------------------------------------

    \41\ FY 2018 NPRM at paragraph 28.
    \42\ FY 2018 NPRM at paragraph 28.
    \43\ FY 2018 NPRM at paragraph 28.
    \44\ See, e.g., FY 2017 NPRM, 32 FCC Rcd at 4534-36, paragraphs 
20-22, 82 FR 26019 (June 6, 2017) (discussing concerns about the 
regulatory fees assessed on broadcast satellite television stations 
serving small markets at the fringe of larger DMAs).
    \45\ 47 CFR 73.622(e).
---------------------------------------------------------------------------

    15. The adoption of these methodologies for assessing regulatory 
fees for broadcast television stations is a permitted amendment as 
defined in

[[Page 47082]]

section 9(b)(3) of the Act,\46\ and pursuant to section 9(b)(4)(B), it 
must be submitted to Congress at least 90 days before it would become 
effective.\47\ Therefore, for FY 2018, we will assess regulatory fees 
for all broadcast television stations using the same methodology as we 
did for FY 2017.\48\ The regulatory fees for broadcast television 
stations for FY 2018 are in Table 4.
---------------------------------------------------------------------------

    \46\ 47 U.S.C. 159(b)(3).
    \47\ 47 U.S.C. 159(b)(4)(B).
    \48\ See e.g., FY 2018 NPRM at Appendix H.
---------------------------------------------------------------------------

V. Order--Collection Costs for Regulatory and Application Fees

    16. The Commission's rules requires the assessment of 
administrative costs incurred for processing and handling delinquent 
debts.\49\ However, the RAY BAUM'S Act amended the Communications Act, 
in relevant part, prohibiting the Commission from assessing its 
administrative costs of collecting delinquent regulatory and 
application fee debt (or related penalties), effective October 1, 
2018.\50\ Therefore, we amend our rules to reflect these statutory 
changes.\51\ This rule change will become effective on October 1, 2018.
---------------------------------------------------------------------------

    \49\ 47 CFR 1.1940(c). This provision implements 31 U.S.C. 
3717(e), part of the Debt Collection Improvement Act.
    \50\ New section 9A(c)(2) requires the Commission to charge 
interest at the rate set forth in 31 U.S.C. 3717 on delinquent 
regulatory and application fee debt as well as the 25 percent 
penalty prescribed in new section 9A(c)(1). However, new section 
9A(c)(2) provides that section 3717 shall not otherwise apply to 
such a fee or penalty. Thus, while new section 9A(c)(2) of the 
Communications Act leaves intact those parts of Sec.  1.1940 of the 
Commission's rules pertaining to interest charges, the Commission is 
no longer authorized to assess its administrative costs on these 
delinquent debts.
    \51\ See ``Final Rules'' section at the end of this document 
(amending Sec.  1.1940(c) of the Commission's rules).
---------------------------------------------------------------------------

    17. We find good cause under section 553(b)(B) of the 
Administrative Procedure Act \52\ to adopt this change without prior 
notice and comment. Section 553(b)(B) provides that notice and public 
comment procedures do not apply when ``impracticable, unnecessary, or 
contrary to the public interest.'' New section 9A of the Communications 
Act is clear in its directive that the Commission must cease applying 
to regulatory and application fees or penalties the provisions of 
section 3717 of Title 31, United States Code, that do not involve 
interest rates. The Commission is thus afforded no discretion to apply 
such provisions of section 3717 to such fees or penalties because its 
prior authority has been eliminated by statute. As a result, prior 
notice or comment is unnecessary.\53\
---------------------------------------------------------------------------

    \52\ 5 U.S.C. 553(b)(B).
    \53\ The Commission previously has applied the unnecessary prong 
to encompass rule amendments that involve little or no exercise of 
agency discretion. See, e.g., Amendment of Parts 0, 1, 73, and 74 of 
the Commission's Rules, Order, 26 FCC Rcd 13538, 13544, 13539-41, 
13543, 13545, paragraphs 4-5, 10, 15 (OMD 2011), 76 FR 70904 (Nov. 
16, 2011) (deleting or amending obsolete rule provisions, including 
those superseded by an Act of Congress).
---------------------------------------------------------------------------

VI. Procedural Matters

Broadcast Television Licenses, Post-Incentive Auction

    18. On March 29, 2016, the Commission commenced the incentive 
auction to allow broadcast television stations to make their spectrum 
available for wireless broadband licensees. On April 13, 2017, the 
Commission released a Public Notice formally closing the auction \54\ 
and beginning the 39-month post-auction transition period during which 
some broadcast television stations will transition to new channel 
assignments and other stations will go off the air. We remind licensees 
that those who held a broadcast television station license on October 
1, 2017 are responsible for FY 2018 regulatory fees for that 
license.\55\ Licensees who have relinquished their licenses by 
September 30, 2017 are not responsible for FY 2018 regulatory fees for 
the cancelled license.\56\
---------------------------------------------------------------------------

    \54\ Incentive Auction Closing and Channel Reassignment Public 
Notice, Public Notice, 32 FCC Rcd 2786 (MB, WTB 2017).
    \55\ See ``Standard Fee Calculation and Payment Dates,'' 
paragraph 20, infra.
    \56\ Cancelled licenses from May 31, 2017 through September 30, 
2017 are, according to the Commission's records, the following call 
signs: KSPR, WIFR, WAGT, WDLP-CD, WEMM-CD, KMMA-CD, WAZF-CD, WLPH-
CD, WQVC-CD, WQCH-CD, WBOA-CD, WMUN-CD, WTSD-CD, WATA-CD, WHTV, 
WMEI, WWIS-CD.
---------------------------------------------------------------------------

Payment of Regulatory Fees

1. Checks Are Not Accepted for Payment of Annual Regulatory Fees
    19. All regulatory fee payments must be made by online Automated 
Clearing House (ACH) payment, online credit card, or wire transfer. Any 
other form of payment (e.g., checks, cashier's checks, or money orders) 
will be rejected. For payments by wire, a Form 159-E should still be 
transmitted via fax so that the Commission can associate the wire 
payment with the correct regulatory fee information.
2. Credit Card Transaction Levels
    20. Since June 1, 2015, in accordance with U.S. Treasury 
Announcement No. A-2014-04 (July 2014), the amount that can be charged 
on a credit card for transactions with federal agencies has is 
$24,999.99.\57\ Transactions greater than $24,999.99 will be rejected. 
This limit applies to single payments or bundled payments of more than 
one bill. Multiple transactions to a single agency in one day may be 
aggregated and treated as a single transaction subject to the 
$24,999.99 limit. Customers who wish to pay an amount greater than 
$24,999.99 should consider available electronic alternatives such as 
Visa or MasterCard debit cards, ACH debits from a bank account, and 
wire transfers. Each of these payment options is available after filing 
regulatory fee information in Fee Filer. Further details will be 
provided regarding payment methods and procedures at the time of FY 
2018 regulatory fee collection in Fact Sheets, available at https://www.fcc.gov/regfees.
---------------------------------------------------------------------------

    \57\ Customers who owe an amount on a bill, debt, or other 
obligation due to the federal government are prohibited from 
splitting the total amount due into multiple payments. Splitting an 
amount owed into several payment transactions violates the credit 
card network and Fiscal Service rules. An amount owed that exceeds 
the Fiscal Service maximum dollar amount, $24,999.99, may not be 
split into two or more payment transactions in the same day by using 
one or multiple cards. Also, an amount owed that exceeds the Fiscal 
Service maximum dollar amount may not be split into two or more 
transactions over multiple days by using one or more cards.
---------------------------------------------------------------------------

3. Payment Methods
    21. During the fee season for collecting FY 2018 regulatory fees, 
regulatees can pay their fees by credit card through Pay.gov,\58\ ACH, 
debit card,\59\ or by wire transfer. Additional filing and payment 
instructions are posted on the Commission's website at https://www.fcc.gov/licensing-databases/fees/regulatory-fees. The receiving 
bank for all wire payments is the U.S. Treasury, New York, New York. 
When making a wire transfer, regulatees must fax a copy of their Fee 
Filer generated Form 159-E to the Federal Communications Commission at 
(202) 418-2843 at least one hour before initiating the wire transfer 
(but on the same business day) so as not to delay crediting their 
account. Regulatees should discuss arrangements (including bank closing 
schedules) with their bankers several days before they plan to make the 
wire transfer to allow sufficient time for the transfer to be

[[Page 47083]]

initiated and completed before the deadline. Complete instructions for 
making wire payments are posted at https://www.fcc.gov/licensing-databases/fees/wire-transfer.
---------------------------------------------------------------------------

    \58\ In accordance with U.S. Treasury Financial Manual 
Announcement No. A-2014-04 (July 2014), the amount that may be 
charged on a credit card for transactions with federal agencies has 
been reduced to $24,999.99.
    \59\ In accordance with U.S. Treasury Financial Manual 
Announcement No. A-2012-02, the maximum dollar-value limit for debit 
card transactions is eliminated. Only Visa and MasterCard branded 
debit cards are accepted by Pay.gov.
---------------------------------------------------------------------------

4. De Minimis Regulatory Fees
    22. Under the Commission's de minimis rule for regulatory fee 
payments, a regulatee is exempt from paying regulatory fees if the sum 
total of all of its annual regulatory fee liabilities is $1,000 or less 
for the fiscal year. The de minimis threshold applies only to filers of 
annual regulatory fees, not regulatory fees paid through multi-year 
filings, and it is not a permanent exemption. Each regulatee will need 
to reevaluate the total annual fee liability each fiscal year to 
determine whether they meet the de minimis exemption.
5. Standard Fee Calculations and Payment Dates
    23. The Commission will accept fee payments made in advance of the 
window for the payment of regulatory fees. The responsibility for 
payment of fees by service category is as follows:
     Media Services: Regulatory fees must be paid for initial 
construction permits that were granted on or before October 1, 2017 for 
AM/FM radio stations, VHF/UHF full service television stations, and 
satellite television stations. Regulatory fees must be paid for all 
broadcast facility licenses granted on or before October 1, 2017. In 
instances where a permit or license is transferred or assigned after 
October 1, 2017, responsibility for payment rests with the holder of 
the permit or license as of the fee due date.
     Wireline (Common Carrier) Services: Regulatory fees must 
be paid for authorizations that were granted on or before October 1, 
2017. In instances where a permit or license is transferred or assigned 
after October 1, 2017, responsibility for payment rests with the holder 
of the permit or license as of the fee due date. Audio bridging service 
providers are included in this category.\60\ For Responsible 
Organizations (RespOrgs) that manage Toll Free Numbers (TFN), 
regulatory fees should be paid on all working, assigned, and reserved 
toll free numbers as well as toll free numbers in any other status as 
defined in Sec.  52.103 of the Commission's rules.\61\ The unit count 
should be based on toll free numbers managed by RespOrgs on or about 
December 31, 2017.
---------------------------------------------------------------------------

    \60\ Audio bridging services are toll teleconferencing services.
    \61\ 47 CFR 52.103.
---------------------------------------------------------------------------

     Wireless Services: CMRS cellular, mobile, and messaging 
services (fees based on number of subscribers or telephone number 
count): Regulatory fees must be paid for authorizations that were 
granted on or before October 1, 2017. The number of subscribers, units, 
or telephone numbers on December 31, 2017 will be used as the basis 
from which to calculate the fee payment. In instances where a permit or 
license is transferred or assigned after October 1, 2017, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
     Wireless Services, Multi-year fees: The first eight 
regulatory fee categories in our Schedule of Regulatory Fees pay 
``small multi-year wireless regulatory fees.'' Entities pay these 
regulatory fees in advance for the entire amount period covered by the 
five-year or ten-year terms of their initial licenses, and pay 
regulatory fees again only when the license is renewed or a new license 
is obtained. We include these fee categories in our rulemaking to 
publicize our estimates of the number of ``small multi-year wireless'' 
licenses that will be renewed or newly obtained in FY 2018.
     Multichannel Video Programming Distributor Services (cable 
television operators, CARS licensees, DBS, and IPTV): Regulatory fees 
must be paid for the number of basic cable television subscribers as of 
December 31, 2017.\62\ Regulatory fees also must be paid for CARS 
licenses that were granted on or before October 1, 2017. In instances 
where a permit or license is transferred or assigned after October 1, 
2017, responsibility for payment rests with the holder of the permit or 
license as of the fee due date. For providers of Direct Broadcast 
Satellite (DBS) service and IPTV-based MVPDs, regulatory fees should be 
paid based on a subscriber count on or about December 31, 2017. In 
instances where a permit or license is transferred or assigned after 
October 1, 2017, responsibility for payment rests with the holder of 
the permit or license as of the fee due date.
---------------------------------------------------------------------------

    \62\ 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 2017, rather than on a count as of December 31, 
2017.
---------------------------------------------------------------------------

     International Services: Regulatory fees must be paid for 
(1) earth stations and (2) geostationary orbit space stations and non-
geostationary orbit satellite systems that were licensed and 
operational on or before October 1, 2017. In instances where a permit 
or license is transferred or assigned after October 1, 2017, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
     International Services (Submarine Cable Systems): 
Regulatory fees for submarine cable systems are to be paid on a per 
cable landing license basis for all systems that are licensed and 
operational as of October 1, 2017. The fee is based on circuit capacity 
as of December 31, 2017. In instances where a license is transferred or 
assigned after October 1, 2017, responsibility for payment rests with 
the holder of the license as of the fee due date. For regulatory fee 
purposes, the allocation in FY 2018 will remain at 87.6 percent for 
submarine cable and 12.4 percent for satellite/terrestrial facilities.
     International Services (Terrestrial and Satellite 
Services): Regulatory fees for Terrestrial and Satellite IBCs are to be 
paid based on active (used or leased) international bearer circuits as 
of December 31, 2017 in any terrestrial or satellite transmission 
facility for the provision of service to an end user or resale carrier. 
When calculating the number of such active circuits, entities must 
include circuits used by themselves or their affiliates. For these 
purposes, ``active circuits'' include backup and redundant circuits as 
of December 31, 2017 and include both common carrier and non-common 
carrier circuits for both terrestrial and satellite services. Whether 
circuits are used specifically for voice or data is not relevant for 
purposes of determining that they are active circuits.\63\ In instances 
where a permit or license is transferred or assigned after October 1, 
2017, responsibility for payment rests with the holder of the permit or 
license as of the fee due date based on circuit counts as of December 
31, 2017. For regulatory fee purposes, the allocation in FY 2018 will 
remain at 87.6 percent for submarine cable and 12.4 percent for 
satellite/terrestrial facilities.
---------------------------------------------------------------------------

    \63\ We encourage terrestrial and satellite service providers to 
seek guidance from the International Bureau's Telecommunications and 
Analysis Division to verify their particular IBC reporting processes 
to ensure that their calculation methods comply with our rules.
---------------------------------------------------------------------------

Commercial Mobile Radio Service (CMRS) and Mobile Services Assessments

    24. The Commission will compile data from the Numbering Resource 
Utilization Forecast (NRUF) report that is based on ``assigned'' 
telephone

[[Page 47084]]

number (subscriber) counts that have been adjusted for porting to net 
Type 0 ports (``in'' and ``out'').\64\ This information of telephone 
numbers (subscriber count) will be posted on the Commission's 
electronic filing and payment system (Fee Filer) along with the 
carrier's Operating Company Numbers (OCNs).
---------------------------------------------------------------------------

    \64\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2005, Report and Order and Order on Reconsideration, 20 FCC Rcd 
12259, 12264, paragraphs 38-44 (2005).
---------------------------------------------------------------------------

    25. A carrier wishing to revise its telephone number (subscriber) 
count can do so by accessing Fee Filer and follow the prompts to revise 
their telephone number counts. Any revisions to the telephone number 
counts should be accompanied by an explanation or supporting 
documentation.\65\ The Commission will then review the revised count 
and supporting documentation and either approve or disapprove the 
submission in Fee Filer. If the submission is disapproved, the 
Commission will contact the provider to afford the provider an 
opportunity to discuss its revised subscriber count and/or provide 
additional supporting documentation. If we receive no response from the 
provider, or we do not reverse our initial disapproval of the 
provider's revised count submission, the fee payment must be based on 
the number of subscribers listed initially in Fee Filer. Once the 
timeframe for revision has passed, the telephone number counts are 
final and are the basis upon which CMRS regulatory fees are to be paid. 
Providers can view their final telephone counts online in Fee Filer. A 
final CMRS assessment letter will not be mailed out.
---------------------------------------------------------------------------

    \65\ In the supporting documentation, the provider will need to 
state a reason for the change, such as a purchase or sale of a 
subsidiary, the date of the transaction, and any other pertinent 
information that will help to justify a reason for the change.
---------------------------------------------------------------------------

    26. Because some carriers do not file the NRUF report, they may not 
see their telephone number counts in Fee Filer. In these instances, the 
carriers should compute their fee payment using the standard 
methodology that is currently in place for CMRS Wireless services 
(i.e., compute their telephone number counts as of December 31, 2017), 
and submit their fee payment accordingly. Whether a carrier reviews its 
telephone number counts in Fee Filer or not, the Commission reserves 
the right to audit the number of telephone numbers for which regulatory 
fees are paid. In the event that the Commission determines that the 
number of telephone numbers that are paid is inaccurate, the Commission 
will bill the carrier for the difference between what was paid and what 
should have been paid.

Enforcement

    27. To be considered timely, regulatory fee payments must be made 
electronically by the payment due date for regulatory fees. Section 
9(c) of the Act requires us to impose a late payment penalty of 25 
percent of the unpaid amount to be assessed on the first day following 
the deadline for filing these fees.\66\ Failure to pay regulatory fees 
and/or any late penalty will subject regulatees to sanctions, including 
those set forth in Sec.  1.1910 of the Commission's rules,\67\ which 
generally requires the Commission to withhold action on ``applications, 
including on a petition for reconsideration or any application for 
review of a fee determination, or requests for authorization by any 
entity found to be delinquent in its debt to the Commission'' and in 
the DCIA.\68\ We also assess administrative processing charges on 
delinquent debts to recover additional costs incurred in processing and 
handling the debt pursuant to the DCIA and Sec.  1.1940(c) of the 
Commission's rules.\69\ These administrative processing charges will be 
assessed on any delinquent FY 2018 regulatory fee, in addition to the 
25 percent late charge penalty. In the case of partial payments 
(underpayments) of regulatory fees, the payor will be given credit for 
the amount paid, but if it is later determined that the fee paid is 
incorrect or not timely paid, then the 25 percent late charge penalty 
(and other charges and/or sanctions, as appropriate) will be assessed 
on the portion that is not paid in a timely manner.
---------------------------------------------------------------------------

    \66\ 47 U.S.C. 159(c).
    \67\ See 47 CFR 1.1910.
    \68\ Delinquent debt owed to the Commission triggers the ``red 
light rule,'' which places a hold on the processing of pending 
applications, fee offsets, and pending disbursement payments. 47 CFR 
1.1910, 1.1911, 1.1912. In 2004, the Commission adopted rules 
implementing the requirements of the DCIA. See Amendment of Parts 0 
and 1 of the Commission's Rules, MD Docket No. 02-339, Report and 
Order, 19 FCC Rcd 6540 (2004), 69 FR 27843 (May 17, 2004); 47 CFR 
part 1, subpart O, Collection of Claims Owed the United States.
    \69\ 47 CFR 1.1940(c). As discussed in Part IV above, the 
amendment to Sec.  1.1940(c) of the Commission's rules that we adopt 
to reflect amendments to the Communications Act by the RAY BAUM'S 
Act does not take effect until October 1, 2018. Therefore, the 
Commission will assess administrative processing charges for failure 
to timely pay FY 2019 regulatory fees, which are due in September 
2018.
---------------------------------------------------------------------------

    28. In addition to financial penalties, section 9(c)(3) of the 
Act,\70\ and Sec.  1.1164(f) of the Commission's rules \71\ grant the 
FCC the authority to revoke authorizations for failure to pay 
regulatory fees in a timely fashion. Should a fee delinquency not be 
rectified in a timely manner the Commission may require the licensee to 
file with documented evidence within sixty (60) calendar days that full 
payment of all outstanding regulatory fees has been made, plus any 
associated penalties as calculated by the Secretary of Treasury in 
accordance with Sec.  1.1164(a) of the Commission's rules,\72\ or show 
cause why the payment is inapplicable or should be waived or deferred. 
Failure to provide such evidence of payment or to show cause within the 
time specified may result in revocation of the station license.\73\
---------------------------------------------------------------------------

    \70\ 47 U.S.C. 159(c)(3).
    \71\ 47 CFR 1.1164(f).
    \72\ 47 CFR 1.1164(a).
    \73\ See, e.g., Cortaro Broadcasting Corp., Order to Pay or Show 
Cause, 32 FCC Rcd 9336 (MB 2017).
---------------------------------------------------------------------------

    29. Pursuant to the ``red light rule,'' we will withhold action on 
any applications or other requests for benefits filed by anyone who is 
delinquent in any non-tax debts owed to the Commission (including 
regulatory fees) and will ultimately dismiss those applications or 
other requests if payment of the delinquent debt or other satisfactory 
arrangement for payment is not made.\74\ Failure to pay regulatory fees 
can also result in the initiation of a proceeding to revoke any and all 
authorizations held by the entity responsible for paying the delinquent 
fee(s).\75\
---------------------------------------------------------------------------

    \74\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
    \75\ 47 U.S.C. 159.
---------------------------------------------------------------------------

Effective Date

6. Report and Order--FY 2018 Regulatory Fees
    30. Providing a 30-day period after Federal Register publication 
before this Report and Order becomes effective as required by 5 U.S.C. 
553(d) will not allow sufficient time to collect the FY 2018 fees 
before FY 2018 ends on September 30, 2018. For this reason, pursuant to 
5 U.S.C. 553(d)(3), we find there is good cause to waive the 
requirements of section 553(d), and this Report and Order will become 
effective upon publication in the Federal Register. Because payments of 
the regulatory fees will not actually be due until late September, 
persons affected by this Report and Order will still have a reasonable 
period in which to make their payments and thereby comply with the 
rules established herein.
7. Order--Collection Costs for Regulatory and Application Fees
    31. In our Order above, we amend Sec.  1.1940 of our rules and find 
that there

[[Page 47085]]

is good cause under 5 U.S.C. 553(b)(B) to adopt the clarification 
without following the notice and comment procedures of the 
Administrative Procedure Act.\76\ Similarly, under these circumstances, 
we find that these actions fall under the good cause exemption to the 5 
U.S.C. 553(d) effective date requirements and the clarification of 
Sec.  1.1940 of our rules will become effective on October 1, 2018.
---------------------------------------------------------------------------

    \76\ See supra Section V.
---------------------------------------------------------------------------

VII. Additional Tables

                                           Table 1--List of Commenters
----------------------------------------------------------------------------------------------------------------
                  Commenter                                            Abbreviated name
----------------------------------------------------------------------------------------------------------------
American Cable Assocation...................  ACA.
Astro Digital, US, Inc., Planet, Inc., and    Astro Digital, Planet, and Spire.
 Spire Global, Inc.
CenturyLink, Inc............................  CenturyLink.
DISH Network L.L.C. and AT&T Services, Inc..  DISH and AT&T.
Richard A. Golden...........................  Golden.
NCTA--The Internet and Television             NCTA.
 Association.
Satellite Industry Association..............  SIA.
Somos, Inc..................................  Somos.
University Small-Satellite Researchers......  Small-Satellite Researchers.
----------------------------------------------------------------------------------------------------------------


                    Table 2--List of Reply Commenters
------------------------------------------------------------------------
 
------------------------------------------------------------------------
AT&T Services, Inc....................  AT&T.
CenturyLink, Inc......................  CenturyLink.
EchoStar Satellite Operating            EchoStar.
 Corporation and Hughes Network
 Systems, LLC.
NCTA--The Internet & Television         NCTA and ACA.
 Assocation and the American Cable
 Association.
------------------------------------------------------------------------

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

                                         Table 3--Calculation of FY 2018 Revenue Requirements and Pro-Rata Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              FY 2017      Pro-rated FY     Computed FY     Rounded FY
                 Fee category                   FY 2018 payment   Years       revenue      2018 revenue        2018            2018         Expected FY
                                                     units                   estimate       requirement   regulatory fee  regulatory fee   2018 revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)........................               340       10         325,000          85,000              25              25          85,000
PLMRS (Shared use)...........................            12,500       10       1,600,000       1,250,000              10              10       1,250,000
Microwave....................................             7,750       10       2,950,000       1,937,500              25              25       1,937,500
Marine (Ship)................................             7,150       10       1,215,000       1,072,500              15              15       1,072,500
Aviation (Aircraft)..........................             4,000       10         420,000         400,000              10              10         400,000
Marine (Coast)...............................                75       10          60,000          30,000              40              40          30,000
Aviation (Ground)............................             1,000       10         220,000         200,000              20              20         200,000
AM Class A \1\...............................                63        1         305,500         266,175           4,214           4,225         266,175
AM Class B \1\...............................             1,523        1       3,807,500       3,274,450           2,162           2,150       3,274,450
AM Class C \1\...............................               872        1       1,348,500       1,177,200           1,352           1,350       1,177,200
AM Class D \1\...............................             1,503        1       4,476,000       3,907,800           2,592           2,600       3,907,800
FM Classes A, B1 & C3 \1\....................             3,166        1       9,371,250       8,152,450           2,582           2,575       8,152,450
FM Classes B, C, C0, C1 & C2 \1\.............             3,128        1      11,521,800      10,009,600           3,203           3,200      10,009,600
AM Construction Permits \2\..................                 9        1           5,550           4,950             550             550           4,950
FM Construction Permits \2\..................               109        1         110,740         105,185             965             965         105,185
Satellite TV.................................               126        1         217,350         189,000           1,497           1,500         189,000
Digital TV Mkt 1-10..........................               144        1       8,305,250       7,164,000          49,739          49,750       7,164,000
Digital TV Mkt 11-25.........................               140        1       5,898,275       5,243,000          37,455          37,450       5,243,000
Digital TV Mkt 26-50.........................               189        1       5,439,050       4,729,725          25,013          25,025       4,729,725
Digital TV Mkt 51-100........................               290        1       4,267,875       3,617,750          12,470          12,475       3,617,750
Digital TV Remaining Markets.................               389        1       1,807,475       1,594,900           4,099           4,100       1,594,900
Digital TV Construction Permits \2\..........                 3        1          14,775          12,300           4,100           4,100          12,300
LPTV/Translators/Boosters/Class A TV.........             3,989        1       1,741,930       1,515,820             378             380       1,515,820
CARS Stations................................               175        1         215,050         188,125           1,068           1,075         188,125
Cable TV Systems, including IPTV.............        61,000,000        1      58,900,000      46,970,000           .7658             .77      46,970,000
Direct Broadcast Satellite (DBS).............        32,000,000        1      12,350,000      15,360,000            .480             .48      15,360,000
Interstate Telecommunication Service            $34,600,000,000        1     111,740,000     100,686,000        0.002906         0.00291     100,686,000
 Providers...................................
Toll Free Numbers............................        33,200,000        1       3,924,000       3,320,000         0.10405            0.10       3,320,000
CMRS Mobile Services (Cellular/Public Mobile)       404,000,000        1      82,530,000      80,800,000           0.195            0.20      80,800,000
CMRS Messag. Services........................         1,000,000        1         168,000          80,000          0.0800           0.080          80,000
BRS/ \3\.....................................             1,175        1         696,000         567,050             600             600         705,000
LMDS.........................................               400        1         316,000         378,250             600             600         240,000
Per Gbps circuit Int'l Bearer Circuits                    2,831        1         901,680         685,102             176             176         685,102
 Terrestrial (Common and Non-Common) &
 Satellite (Common & Non-Common).............
Submarine Cable Providers (see chart in Table             41.19        1       5,660,261       4,959,228         120,405         120,400       4,959,035
 4) \4\......................................
Earth Stations...............................             3,400        1       1,224,000       1,105,000             326             325       1,105,000

[[Page 47086]]

 
Space Stations (Geostationary)...............                97        1      13,669,725      12,401,450         127,839         127,850      12,401,450
Space Stations (Non-Geostationary)...........                 7        1         947,450         859,425         122,776         122,775         859,425
    ****** Total Estimated Revenue to be       ................  .......     358,670,986     324,323,753  ..............  ..............     324,365,671
     Collected...............................
        ****** Total Revenue Requirement.....  ................  .......     356,710,992     322,035,000  ..............  ..............     322,035,000
            Difference.......................  ................  .......       1,959,994       2,288,753  ..............  ..............       2,330,671
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Table 3:
\1\ The fee amounts listed in the column entitled ``Rounded New FY 2018 Regulatory Fee'' constitute a weighted average broadcast regulatory fee by class
  of service. The actual FY 2018 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4.
\2\ The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted, respectively, to set the regulatory
  fee to an amount no higher than the lowest licensed fee for that class of service. Reductions in the Digital (VHF/UHF) Construction Permit revenues,
  and in the AM and FM Construction Permit revenues, were offset by increases in the revenue totals for Digital television stations by market size, and
  in the AM and FM radio stations by class size and population served, respectively.
\3\ MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate
  the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands, Report & Order
  and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, paragraph 6 (2004), 69 FR 72048 (Dec. 10, 2004).
\4\ The chart at the end of Table 4 lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from
  the adoption of the Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Report and Order and Further Notice of Proposed Rulemaking, 24
  FCC Rcd 6388 (2008), 73 FR 5028 (Aug. 26, 2008) and Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC
  Rcd 4208 (2009), 74 FR 22104 (May 12, 2009).

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

                    Table 4--FY 2018 Regulatory Fees
------------------------------------------------------------------------
                                                             Annual
                     Fee category                        regulatory fee
                                                           (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)..                25
Microwave (per license) (47 CFR part 101).............                25
Marine (Ship) (per station) (47 CFR part 80)..........                15
Marine (Coast) (per license) (47 CFR part 80).........                40
Rural Radio (47 CFR part 22) (previously listed under                 10
 the Land Mobile category)............................
PLMRS (Shared Use) (per license) (47 CFR part 90).....                10
Aviation (Aircraft) (per station) (47 CFR part 87)....                10
Aviation (Ground) (per license) (47 CFR part 87)......                20
CMRS Mobile/Cellular Services (per unit) (47 CFR parts               .20
 20, 22, 24, 27, 80 and 90)...........................
CMRS Messaging Services (per unit) (47 CFR parts 20,                 .08
 22, 24 and 90).......................................
Broadband Radio Service (formerly MMDS/MDS) (per                     600
 license) (47 CFR part 27)............................
Local Multipoint Distribution Service (per call sign)                600
 (47 CFR part 101)....................................
AM Radio Construction Permits.........................               550
FM Radio Construction Permits.........................               965
Digital TV (47 CFR part 73) VHF and UHF Commercial:
    Markets 1-10......................................            49,750
    Markets 11-25.....................................            37,450
    Markets 26-50.....................................            25,025
    Markets 51-100....................................            12,475
    Remaining Markets.................................             4,100
    Construction Permits..............................             4,100
Satellite Television Stations (All Markets)...........             1,500
Low Power TV, Class A TV, TV/FM Translators & Boosters               380
 (47 CFR part 74).....................................
CARS (47 CFR part 78).................................             1,075
Cable Television Systems (per subscriber) (47 CFR part               .77
 76), Including IPTV..................................
Direct Broadcast Service (DBS) (per subscriber) (as                  .48
 defined by section 602(13) of the Act)...............
Interstate Telecommunication Service Providers (per               .00291
 revenue dollar)......................................
Toll Free (per toll free subscriber) (47 CFR 52.101(f)               .10
 of the rules)........................................
Earth Stations (47 CFR part 25).......................               325
Space Stations (per operational station in                       127,850
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station) (47 CFR part
 100).................................................
Space Stations (per operational system in non-                   122,775
 geostationary orbit) (47 CFR part 25)................
International Bearer Circuits--Terrestrial/Satellites                176
 (per Gbps circuit)...................................
Submarine Cable Landing Licenses Fee (per cable          See Table Below
 system)..............................................
------------------------------------------------------------------------


[[Page 47087]]


                                                          FY 2018 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           FM Classes A,   FM Classes B,
                    Population served                       AM Class A      AM Class B      AM Class C      AM Class D        B1 & C3     C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................            $880            $635            $550            $605            $965          $1,100
25,001-75,000...........................................          $1,325            $950            $825            $910          $1,450          $1,650
75,001-150,000..........................................          $1,975          $1,425          $1,250          $1,350          $2,175          $2,475
150,001-500,000.........................................          $2,975          $2,150          $1,850          $2,050          $3,250          $3,725
500,001-1,200,000.......................................          $4,450          $3,225          $2,775          $3,050          $4,875          $5,575
1,200,001-3,000,00......................................          $6,700          $4,825          $4,175          $4,600          $7,325          $8,350
3,000,001-6,000,00......................................         $10,025          $7,225          $6,275          $6,900         $11,000         $12,525
>6,000,000..............................................         $15,050         $10,850          $9,400         $10,325         $16,500         $18,800
--------------------------------------------------------------------------------------------------------------------------------------------------------


     FY 2018 International Bearer Circuits--Submarine Cable Systems
------------------------------------------------------------------------
  Submarine cable systems (capacity as of December 31,    Fee amount for
                          2017)                               FY 2018
------------------------------------------------------------------------
Less than 50 Gbps.......................................          $9,850
50 Gbps or greater, but less than 250 Gbps..............          19,725
250 Gbps or greater, but less than 1,000 Gbps...........          39,425
1,000 Gbps or greater, but less than 4,000 Gbps.........          78,875
4,000 Gbps or greater...................................         157,750
------------------------------------------------------------------------

Table 5--Sources of Payment Unit Estimates for FY 2018

    In order to calculate individual service fees for FY 2018, we 
adjusted FY 2017 payment units for each service to more accurately 
reflect expected FY 2018 payment liabilities. We obtained our updated 
estimates through a variety of means. For example, we used Commission 
licensee data bases, actual prior year payment records and industry and 
trade association projections when available. The databases we 
consulted include our Universal Licensing System (ULS), International 
Bureau Filing System (IBFS), Consolidated Database System (CDBS) and 
Cable Operations and Licensing System (COALS), as well as reports 
generated within the Commission such as the Wireless Telecommunications 
Bureau's Numbering Resource Utilization Forecast.
    We sought verification for these estimates from multiple sources 
and, in all cases, we compared FY 2018 estimates with actual FY 2017 
payment units to ensure that our revised estimates were reasonable. 
Where appropriate, we adjusted and/or rounded our final estimates to 
take into consideration the fact that certain variables that impact on 
the number of payment units cannot yet be estimated with sufficient 
accuracy. These include an unknown number of waivers and/or exemptions 
that may occur in FY 2018 and the fact that, in many services, the 
number of actual licensees or station operators fluctuates from time to 
time due to economic, technical, or other reasons. When we note, for 
example, that our estimated FY 2018 payment units are based on FY 2017 
actual payment units, it does not necessarily mean that our FY 2018 
projection is exactly the same number as in FY 2017. We have either 
rounded the FY 2018 number or adjusted it slightly to account for these 
variables.

----------------------------------------------------------------------------------------------------------------
              Fee category                                  Sources of payment unit estimates
----------------------------------------------------------------------------------------------------------------
Land Mobile (All), Microwave, Marine     Based on Wireless Telecommunications Bureau (WTB) projections of new
 (Ship & Coast), Aviation (Aircraft &     applications and renewals taking into consideration existing
 Ground), Domestic Public Fixed.          Commission licensee data bases. Aviation (Aircraft) and Marine (Ship)
                                          estimates have been adjusted to take into consideration the licensing
                                          of portions of these services on a voluntary basis.
CMRS Cellular/Mobile Services..........  Based on WTB projection reports, and FY 17 payment data.
CMRS Messaging Services................  Based on WTB reports, and FY 17 payment data.
AM/FM Radio Stations...................  Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment
                                          units.
Digital TV Stations....................  Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment
(Combined VHF/UHF units)...............   units.
AM/FM/TV Construction Permits..........  Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment
                                          units.
LPTV, Translators and Boosters, Class A  Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment
 Television.                              units.
BRS (formerly MDS/MMDS)................  Based on WTB reports and actual FY 2017 payment units.
LMDS...................................  Based on WTB reports and actual FY 2017 payment units.
Cable Television Relay Service (CARS)    Based on data from Media Bureau's COALS database and actual FY 2017
 Stations.                                payment units.
Cable Television System Subscribers,     Based on publicly available data sources for estimated subscriber
 Including IPTV Subscribers.              counts and actual FY 2017 payment units.
Interstate Telecommunication Service     Based on FCC Form 499-Q data for the four quarters of calendar year
 Providers.                               2017, the Wireline Competition Bureau projected the amount of calendar
                                          year 2017 revenue that will be reported on 2018 FCC Form 499-A
                                          worksheets due in April, 2018.
Earth Stations.........................  Based on International Bureau (``IB'') licensing data and actual FY
                                          2017 payment units.
Space Stations (GSOs & NGSOs)..........  Based on IB data reports and actual FY 2017 payment units.
International Bearer Circuits..........  Based on IB reports and submissions by licensees, adjusted as
                                          necessary.

[[Page 47088]]

 
Submarine Cable Licenses...............  Based on IB license information.
----------------------------------------------------------------------------------------------------------------


 Table 6--Factors, Measurements, and Calculations That Determine Station
           Signal Contours and Associated Population Coverages
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
AM Stations:
    For stations with nondirectional daytime antennas, the theoretical
     radiation was used at all azimuths. For stations with directional
     daytime antennas, specific information on each day tower, including
     field ratio, phase, spacing, and orientation was retrieved, as well
     as the theoretical pattern root-mean-square of the radiation in all
     directions in the horizontal plane (RMS) figure (milliVolt per
     meter (mV/m) @1 km) for the antenna system. The standard, or
     augmented standard if pertinent, horizontal plane radiation pattern
     was calculated using techniques and methods specified in Sec.  Sec.
       73.150 and 73.152 of the Commission's rules. Radiation values
     were calculated for each of 360 radials around the transmitter
     site. Next, estimated soil conductivity data was retrieved from a
     database representing the information in FCC Figure R3. Using the
     calculated horizontal radiation values, and the retrieved soil
     conductivity data, the distance to the principal community (5 mV/m)
     contour was predicted for each of the 360 radials. The resulting
     distance to principal community contours were used to form a
     geographical polygon. Population counting was accomplished by
     determining which 2010 block centroids were contained in the
     polygon. (A block centroid is the center point of a small area
     containing population as computed by the U.S. Census Bureau.) The
     sum of the population figures for all enclosed blocks represents
     the total population for the predicted principal community coverage
     area.
FM Stations:
    The greater of the horizontal or vertical effective radiated power
     (ERP) (kW) and respective height above average terrain (HAAT) (m)
     combination was used. Where the antenna height above mean sea level
     (HAMSL) was available, it was used in lieu of the average HAAT
     figure to calculate specific HAAT figures for each of 360 radials
     under study. Any available directional pattern information was
     applied as well, to produce a radial-specific ERP figure. The HAAT
     and ERP figures were used in conjunction with the Field Strength
     (50-50) propagation curves specified in 47 CFR 73.313 of the
     Commission's rules to predict the distance to the principal
     community (70 dBu (decibel above 1 microVolt per meter) or 3.17 mV/
     m) contour for each of the 360 radials. The resulting distance to
     principal community contours were used to form a geographical
     polygon. Population counting was accomplished by determining which
     2010 block centroids were contained in the polygon. The sum of the
     population figures for all enclosed blocks represents the total
     population for the predicted principal community coverage area.
------------------------------------------------------------------------

Table 7--FY 2017 Schedule of Regulatory Fees

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

------------------------------------------------------------------------
                                                             Annual
                     Fee category                        regulatory fee
                                                            (U.S. $s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)..                25
Microwave (per license) (47 CFR part 101).............                25
Marine (Ship) (per station) (47 CFR part 80)..........                15
Marine (Coast) (per license) (47 CFR part 80).........                40
Rural Radio (47 CFR part 22) (previously listed under                 10
 the Land Mobile category)............................
PLMRS (Shared Use) (per license) (47 CFR part 90).....                10
Aviation (Aircraft) (per station) (47 CFR part 87)....                10
Aviation (Ground) (per license) (47 CFR part 87)......                20
CMRS Mobile/Cellular Services (per unit) (47 CFR parts               .21
 20, 22, 24, 27, 80 and 90)...........................
CMRS Messaging Services (per unit) (47 CFR parts 20,                 .08
 22, 24 and 90).......................................
Broadband Radio Service (formerly MMDS/MDS) (per                     800
 license) (47 CFR part 27)............................
Local Multipoint Distribution Service (per call sign)
 (47 CFR part 101)....................................
800...................................................
AM Radio Construction Permits.........................               555
FM Radio Construction Permits.........................               980
Digital TV (47 CFR part 73) VHF and UHF Commercial:
    Markets 1-10......................................            59,750
    Markets 11-25.....................................            45,025
    Markets 26-50.....................................            30,050
    Markets 51-100....................................            14,975
    Remaining Markets.................................             4,925
    Construction Permits..............................             4,925
Satellite Television Stations (All Markets)...........             1,725
Low Power TV, Class A TV, TV/FM Trans. & Boosters (47                430
 CFR part 74).........................................
CARS (47 CFR part 78).................................               935
Cable Television Systems (per subscriber) (47 CFR part               .95
 76), including IPTV..................................
Direct Broadcast Service (DBS) (per subscriber) (as                  .38
 defined by section 602(13) of the Act)...............
Interstate Telecommunication Service Providers (per               .00302
 revenue dollar)......................................
Toll Free (per toll free subscriber) (47 CFR 52.101(f)               .12
 of the rules)........................................
Earth Stations (47 CFR part 25).......................               360
Space Stations (per operational station in                       140,925
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station) (47 CFR part
 100).................................................

[[Page 47089]]

 
Space Stations (per operational system in non-                   135,350
 geostationary orbit) (47 CFR part 25)................
International Bearer Circuits--Terrestrial/Satellites                .03
 (per 64KB circuit)...................................
Submarine Cable Landing Licenses Fee (per cable          See Table Below
 system)..............................................
------------------------------------------------------------------------


                                      FY 2017 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                      FM Classes
            Population served             AM Class A  AM Class B  AM Class C  AM Class D  FM Classes   B, C, C0,
                                                                                          A, B1 & C3    C1 & C2
----------------------------------------------------------------------------------------------------------------
<=25,000................................        $895        $640        $555        $610        $980      $1,100
25,001-75,000...........................       1,350         955         830         915       1,475       1,650
75,001-150,000..........................       2,375       1,700       1,475       1,600       2,600       2,925
150,001-500,000.........................       3,550       2,525       2,200       2,425       3,875       4,400
500,001-1,200,000.......................       5,325       3,800       3,300       3,625       5,825       6,575
1,200,001-3,000,00......................       7,975       5,700       4,950       5,425       8,750       9,875
3,000,001-6,000,00......................      11,950       8,550       7,400       8,150      13,100      14,800
>6,000,000..............................      17,950      12,825      11,100      12,225      19,650      22,225
----------------------------------------------------------------------------------------------------------------


 FY 2017 Regulatory Fees International Bearer Circuits--Submarine Cable
------------------------------------------------------------------------
 Submarine cable systems (capacity as of
           December 31, 2016)                       Fee amount
------------------------------------------------------------------------
                   <2.5 Gbps                       $8,600
2.5 Gbps or greater, but less than 5               17,175
                         Gbps
5 Gbps or greater, but less than 10 Gbps           34,350
10 Gbps or greater, but less than 20               68,725
                         Gbps
          20 Gbps or greater                      137,425
------------------------------------------------------------------------

VIII. Final Regulatory Flexibility Analysis

    32. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\77\ an Initial Regulatory Flexibility Analysis (IRFA) 
was included in the Notice of Proposed Rulemaking (NPRM).\78\ The 
Commission sought written public comment on these proposals including 
comment on the IRFA. This Final Regulatory Flexibility Analysis (FRFA) 
conforms to the IRFA.\79\
---------------------------------------------------------------------------

    \77\ 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 Number 104-121, Title II, 110 Stat. 847 (1996).
    \78\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2017, Report and Order and Further Notice of Proposed 
Rulemaking, 32 FCC Rcd 7057 (2017), 82 FR 50598 (Nov. 1, 2017).
    \79\ 5 U.S.C. 604.
---------------------------------------------------------------------------

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

    33. In this Report and Order we adopt our proposal in the Notice of 
Proposed Rulemaking on collecting $322,035,000 in regulatory fees for 
FY 2018, pursuant to section 9 of the Communications Act of 1934, as 
amended (Communications Act or Act).\80\ These regulatory fees will be 
due in September 2018. Under section 9 of the Communications Act, 
regulatory fees are mandated by Congress and collected to recover the 
regulatory costs associated with the Commission's enforcement, policy 
and rulemaking, user information, and international activities in an 
amount that can be reasonably expected to equal the amount of the 
Commission's annual appropriation.\81\ This Report and Order adopts the 
regulatory fees proposed in the Notice of Proposed Rulemaking.
---------------------------------------------------------------------------

    \80\ 47 U.S.C. 159.
    \81\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

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

    34. None.

C. Description and Estimate of the Number of Small Entities to Which 
the Rules Will Apply

    35. 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.\82\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \83\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\84\ A ``small business concern'' is one 
which: (1) Is independently owned and operated; (2) is not dominant in 
its field of operation; and (3) satisfies any additional criteria 
established by the SBA.\85\ Nationwide, there are a total of 
approximately 27.9 million small businesses, according to the SBA.\86\
---------------------------------------------------------------------------

    \82\ 5 U.S.C. 603(b)(3).
    \83\ 5 U.S.C. 601(6).
    \84\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \85\ 15 U.S.C. 632.
    \86\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
---------------------------------------------------------------------------

    36. 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.

[[Page 47090]]

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.'' \87\ 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.\88\ 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.\89\ Thus, under 
this size standard, most firms in this industry can be considered 
small.
---------------------------------------------------------------------------

    \87\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \88\ See 13 CFR 120.201, NAICS code 517110.
    \89\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    37. 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.\90\ 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.\91\ The Commission therefore estimates that most 
providers of local exchange carrier service are small entities that may 
be affected by the rules adopted.
---------------------------------------------------------------------------

    \90\ 13 CFR 121.201, NAICS code 517110.
    \91\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    38. 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.\92\ According to Commission data, 3,117 firms 
operated in that year. Of this total, 3,083 operated with fewer than 
1,000 employees.\93\ 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.\94\ Of this total, an 
estimated 1,006 have 1,500 or fewer employees.\95\
---------------------------------------------------------------------------

    \92\ 13 CFR 121.201, NAICS code 517110.
    \93\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \94\ See Trends in Telephone Service, Federal Communications 
Commission, Wireline Competition Bureau, Industry Analysis and 
Technology Division at Table 5.3 (September 2010) (Trends in 
Telephone Service).
    \95\ Id.
---------------------------------------------------------------------------

    39. 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.\96\ 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.\97\ 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.\98\ Of these 1,442 carriers, 
an estimated 1,256 have 1,500 or fewer employees.\99\ 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.\100\ Also, 
72 carriers have reported that they are Other Local Service 
Providers.\101\ Of this total, 70 have 1,500 or fewer employees.\102\ 
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.
---------------------------------------------------------------------------

    \96\ 13 CFR 121.201, NAICS code 517110.
    \97\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \98\ See Trends in Telephone Service, at Table 5.3.
    \99\ Id.
    \100\ Id.
    \101\ Id.
    \102\ Id.
---------------------------------------------------------------------------

    40. 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.\103\ 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.\104\ According to internally developed Commission 
data, 359 companies reported that their primary telecommunications 
service activity was the provision of interexchange services.\105\ Of 
this total, an estimated 317 have 1,500 or fewer employees.\106\ 
Consequently, the Commission estimates that most interexchange service 
providers are small entities that may be affected by the rules adopted.
---------------------------------------------------------------------------

    \103\ 13 CFR 121.201, NAICS code 517110.
    \104\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \105\ See Trends in Telephone Service, at Table 5.3.
    \106\ Id.
---------------------------------------------------------------------------

    41. 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 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.\107\ 
Under the applicable SBA size standard, such a business is small if it 
has 1,500 or fewer employees.\108\ 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

[[Page 47091]]

employees.\109\ 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.\110\ All 193 carriers have 1,500 or fewer 
employees.\111\ Consequently, the Commission estimates that the 
majority of prepaid calling card providers are small entities that may 
be affected by the rules adopted.
---------------------------------------------------------------------------

    \107\ http://www.census.gov/cgi-bin/ssd/naics/naicsrch.
    \108\ 13 CFR 121.201, NAICS code 517911.
    \109\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \110\ See Trends in Telephone Service, at Table 5.3.
    \111\ Id.
---------------------------------------------------------------------------

    42. 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.\112\ 
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.\113\ 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.\114\ Of this total, an estimated 211 have 1,500 or fewer 
employees.\115\ Consequently, the Commission estimates that the 
majority of local resellers are small entities that may be affected by 
the rules adopted.
---------------------------------------------------------------------------

    \112\ 13 CFR 121.201, NAICS code 517911.
    \113\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \114\ See Trends in Telephone Service, at Table 5.3.
    \115\ Id.
---------------------------------------------------------------------------

    43. 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.\116\ Under that size standard, such a business is small if 
it has 1,500 or fewer employees.\117\ 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.\118\ 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.\119\ Of this total, an estimated 
857 have 1,500 or fewer employees.\120\ Consequently, the Commission 
estimates that the majority of toll resellers are small entities.
---------------------------------------------------------------------------

    \116\ 13 CFR 121.201, NAICS code 517911.
    \117\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \118\ Id.
    \119\ Trends in Telephone Service at Table 5.3.
    \120\ Id.
---------------------------------------------------------------------------

    44. 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.\121\ 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.\122\ 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.\123\ Of these, an estimated 279 have 1,500 or fewer 
employees.\124\ Consequently, the Commission estimates that most Other 
Toll Carriers are small entities.
---------------------------------------------------------------------------

    \121\ 13 CFR 121.201, NAICS code 517110.
    \122\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \123\ Trends in Telephone Service at Table 5.3.
    \124\ Id.
---------------------------------------------------------------------------

    45. 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.\125\ 
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.\126\ Of this total, an estimated 261 have 1,500 
or fewer employees.\127\ Thus, using available data, we estimate that 
the majority of wireless firms can be considered small.
---------------------------------------------------------------------------

    \125\ NAICS code 517210. See http://www.census.gov/cgi-bin/ssd/
naics/naiscsrch.
    \126\ Trends in Telephone Service at Table 5.3.
    \127\ Id.
---------------------------------------------------------------------------

    46. 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.'' \128\ These establishments 
also produce or transmit visual programming to affiliated broadcast 
television stations, which in turn broadcast the programs to the public 
on a predetermined schedule. Programming may originate in their own 
studio, from an affiliated network, or from external sources. The SBA 
has created the following small business size standard for Television 
Broadcasting firms: those having $38.5 million or less in annual 
receipts.\129\ 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.\130\ 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.\131\ We therefore 
estimate that the

[[Page 47092]]

majority of commercial television broadcasters are small entities.
---------------------------------------------------------------------------

    \128\ U.S. Census Bureau, 2012 NAICS code Economic Census 
Definitions, http://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \129\ 13 CFR 121.201, NAICS code 515120.
    \130\ 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.
    \131\ We recognize that BIA's estimate differs slightly from the 
FCC total.
---------------------------------------------------------------------------

    47. In assessing whether a business concern qualifies as small 
under the above definition, business (control) affiliations \132\ 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.
---------------------------------------------------------------------------

    \132\ ``[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).
---------------------------------------------------------------------------

    48. In addition, the Commission has estimated the number of 
licensed noncommercial educational television stations to be 394.\133\ 
These stations are non-profit, and therefore considered to be small 
entities.\134\ There are also 2,382 low power television stations, 
including Class A stations.\135\ 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.
---------------------------------------------------------------------------

    \133\ 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.
    \134\ See generally 5 U.S.C. 601(4), (6).
    \135\ 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.
---------------------------------------------------------------------------

    49. 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.'' \136\ 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.\137\ 
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.\138\ 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.
---------------------------------------------------------------------------

    \136\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \137\ 13 CFR 121.201, NAICS code 515112.
    \138\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    50. In assessing whether a business concern qualifies as small 
under the above size standard, business affiliations must be 
included.\139\ In addition, to be determined to be a ``small 
business,'' the entity may not be dominant in its field of 
operation.\140\ 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.
---------------------------------------------------------------------------

    \139\ ``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).
    \140\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------

    51. 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.\141\ 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.\142\ 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.
---------------------------------------------------------------------------

    \141\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \142\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US-51SSSZ5&prodType=Table.
---------------------------------------------------------------------------

    52. 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.\143\ The 
Commission's industry data indicate that there are currently 4,160 
active cable systems in the United States.\144\ Of this total, all but 
ten cable operators nationwide are small under the 400,000-subscriber 
size standard.\145\ In addition, under the Commission's rate regulation 
rules, a ``small system'' is a cable system serving 15,000 or fewer 
subscribers.\146\ Current Commission records show 4,160 cable systems 
nationwide.\147\ Thus, under this standard as well, we estimate that 
most cable systems are small entities.
---------------------------------------------------------------------------

    \143\ 47 CFR 76.901(e).
    \144\ As of July 5, 2018, there were 4,160 active cable systems 
in the Commission's Cable Operations and Licensing Systems (COALS) 
database.
    \145\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2017).
    \146\ 47 CFR 76.901(c)
    \147\ See footnote 2, supra.
---------------------------------------------------------------------------

    53. 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.'' \148\ There are approximately 53 million cable video 
subscribers in the United States today.\149\ 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.\150\ 
Based on available data, we find that all but nine incumbent cable 
operators are small entities under this size standard.\151\ 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.\152\ Although it seems certain 
that some of these cable system operators are affiliated with entities 
whose gross annual revenues

[[Page 47093]]

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.
---------------------------------------------------------------------------

    \148\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \149\ See NCTA Industry Data, Cable's Customer Base, available 
at https://www.ncta.com/industry-data (last visited July 6, 2017).
    \150\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \151\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2018).
    \152\ 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 Sec.  76.901(f) of the Commission's rules. See 47 CFR 
76.901(f).
---------------------------------------------------------------------------

    54. 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.\153\ The SBA determines that a wireline business is 
small if it has fewer than 1500 employees.\154\ 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.\155\ 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.
---------------------------------------------------------------------------

    \153\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \154\ NAICS code 517110; 13 CFR 121.201.
    \155\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=PEP_2017_PEPANNRES&src=pt.
---------------------------------------------------------------------------

    55. 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.\156\ 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.\157\ 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.\158\ Thus, most ``All Other 
Telecommunications'' firms potentially affected by the rules adopted 
can be considered small.
---------------------------------------------------------------------------

    \156\ http://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
    \157\ 13 CFR 121.201; NAICS code 517919.
    \158\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    56. 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.\159\ 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.
---------------------------------------------------------------------------

    \159\ See 47 CFR 52.101(b)
---------------------------------------------------------------------------

    57. 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 
\160\ and Wireless Telecommunications Carriers (except satellite).\161\
---------------------------------------------------------------------------

    \160\ 13 CFR 121.201, NAICS code 517110
    \161\ 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

    58. 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.\162\ 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.\163\ 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.\164\ Based 
on that data, we conclude that most Carrier RespOrgs that operated with 
wireline-based technology are small.
---------------------------------------------------------------------------

    \162\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \163\ 13 CFR 120,201, NAICS code 517110.
    \164\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    59. The U.S. Census Bureau defines Wireless Telecommunications 
Carriers (except satellite) as establishments engaged in operating and 
maintaining switching and transmission facilities to provide 
communications via the airwaves, such as cellular services, paging 
services, wireless internet access, and wireless video services.\165\ 
The appropriate size standard under SBA rules is that such a business 
is small if it has 1,500 or fewer employees.\166\ 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.\167\ 
Based on that data, we conclude that most Carrier RespOrgs that 
operated with wireless-based technology are small.
---------------------------------------------------------------------------

    \165\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \166\ 13 CFR 120.201, NAICS code 517120.
    \167\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    60. 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'' \168\ and ``Other Management Consulting 
Services.'' \169\
---------------------------------------------------------------------------

    \168\ 13 CFR 120.201, NAICS code 541890.
    \169\ 13 CFR 120.201, NAICS code 541618.

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

[[Page 47094]]

    61. 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.\170\ The SBA has established a size standard for this 
industry as annual receipts of $15 million dollars or less.\171\ 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.\172\ Based on that data we conclude that most 
Non-Carrier RespOrgs who provide TFN-related advertising services are 
small.
---------------------------------------------------------------------------

    \170\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \171\ 13 CFR 120.201, NAICS code 541890.
    \172\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    62. 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.\173\ The SBA has established a size standard 
for this industry of $15 million dollars or less.\174\ 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.\175\ Based on this data, we conclude that most non-
carrier RespOrgs who provide TFN-related management consulting services 
are small.\176\
---------------------------------------------------------------------------

    \173\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \174\ 13 CFR 120.201, NAICS code 514618.
    \175\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
    \176\ 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.
---------------------------------------------------------------------------

    63. 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.\177\
---------------------------------------------------------------------------

    \177\ Email from Jennifer Blanchard, Somos, July 1, 2016.
---------------------------------------------------------------------------

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

    64. 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

    65. 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.\178\
---------------------------------------------------------------------------

    \178\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------

    66. This Report and Order adopts the proposals in the Notice of 
Proposed Rulemaking to collect $322,035,000 in regulatory fees for FY 
2018, as detailed in the fee schedules in Table 4, including an 
increase in the DBS fee rate to 48 cents per subscriber so that the DBS 
fee would approach the cable television/IPTV fee, based on the Media 
Bureau FTEs devoted to issues that include DBS. The two DBS providers 
are not small entities. The regulatory fees adopted do not include any 
new fee categories, except for the addition of non-common carrier 
terrestrial international bearer circuits to the regulatory fee 
category of international bearer circuits, that previously did not pay 
regulatory fees. To the extent such providers are small entities, the 
rates for smaller numbers of circuits would be lower than the rates for 
larger quantity of circuits and, in addition, the de minimis of $1,000 
would likely exempt the smaller entities from paying annual regulatory 
fees.
    67. 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

    68. None.

IX. Ordering Clauses

    69. 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.
    70. It is further ordered that, pursuant to Division P--RAY BAUM's 
Act of 2018, Title I, 101-103, Consolidated Appropriations Act, 2018, 
Public Law Number 115-141, 132 Stat. 1084, (2018), the Order in Section 
V is hereby adopted.
    71. It is further ordered that the Report and Order in Section IV 
shall be effective upon publication in the Federal Register.
    72. It is further ordered that the Order in Section V shall be 
effective on October 1, 2018.
    73. It is further ordered that the Commission's Consumer & 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Report and Order, including the Final Regulatory 
Flexibility Analysis in this Report and Order, to the Chief Counsel for 
Advocacy of the U.S. Small Business Administration.

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure.

Federal Communications Commission.
Marlene Dortch,
Secretary.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 1 as follows:

[[Page 47095]]

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 is revised to read as follows:


    Authority:  47 U.S.C. 151, 154(i), 155, 157, 160, 201, 225, 227, 
303, 309, 332, 1403, 1404, 1451, 1452, and 1455; Sec. 102(c), Div. 
P, Public Law 115-141, 132 Stat. 1084, unless otherwise noted.


0
2. Section 1.1152 is revised to read as follows:

Sec.  1.1152   Schedule of annual regulatory fees for wireless radio 
services.

------------------------------------------------------------------------
         Exclusive use services (per license)            Fee amount \1\
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz and 220 MHz Local, Base
 Station & SMRS) (47 CFR part 90):
    (a) New, Renew/Mod (FCC 601 & 159)................            $25.00
    (b) New, Renew/Mod (Electronic Filing) (FCC 601 &              25.00
     159).............................................
    (c) Renewal Only (FCC 601 & 159)..................             25.00
    (d) Renewal Only (Electronic Filing) (FCC 601 &                25.00
     159).............................................
220 MHz Nationwide:
    (a) New, Renew/Mod (FCC 601 & 159)................             25.00
    (b) New, Renew/Mod (Electronic Filing) (FCC 601 &              25.00
     159).............................................
    (c) Renewal Only (FCC 601 & 159)..................             25.00
    (d) Renewal Only (Electronic Filing) (FCC 601 &                25.00
     159).............................................
2. Microwave (47 CFR Pt. 101) (Private):
    (a) New, Renew/Mod (FCC 601 & 159)................             25.00
    (b) New, Renew/Mod (Electronic Filing) (FCC 601 &              25.00
     159).............................................
    (c) Renewal Only (FCC 601 & 159)..................             25.00
    (d) Renewal Only (Electronic Filing) (FCC 601 &                25.00
     159).............................................
3. Shared Use Services Land Mobile (Frequencies Below
 470 MHz--except 220 MHz):
    (a) New, Renew/Mod (FCC 601 & 159)................             10.00
    (b) New, Renew/Mod (Electronic Filing) (FCC 601 &              10.00
     159).............................................
    (c) Renewal Only (FCC 601 & 159)..................             10.00
    (d) Renewal Only (Electronic Filing) (FCC 601 &                10.00
     159).............................................
Rural Radio (Part 22):
    (a) New, Additional Facility, Major Renew/Mod                  10.00
     (Electronic Filing) (FCC 601 & 159)..............
    (b) Renewal, Minor Renew/Mod (Electronic Filing)               10.00
     (FCC 601 & 159) Marine Coast.....................
Marine Coast (per license) (47 CFR part 80):
    (a) New Renewal/Mod (FCC 601 & 159)...............             40.00
    (b) New, Renewal/Mod (Electronic Filing) (FCC 601              40.00
     & 159)...........................................
    (c) Renewal Only (FCC 601 & 159)..................             40.00
    (d) Renewal Only (Electronic Filing) (FCC 601 &                40.00
     159).............................................
Aviation Ground:
    (a) New, Renewal/Mod (FCC 601 & 159)..............             20.00
    (b) New, Renewal/Mod (Electronic Filing) (FCC 601              20.00
     & 159)...........................................
    (c) Renewal Only (FCC 601 & 159)..................             20.00
    (d) Renewal Only (Electronic Only) (FCC 601 & 159)             20.00
Marine Ship:
    (a) New, Renewal/Mod (FCC 605 & 159)..............             15.00
    (b) New, Renewal/Mod (Electronic Filing) (FCC 605              15.00
     & 159)...........................................
    (c) Renewal Only (FCC 605 & 159)..................             15.00
    (d) Renewal Only (Electronic Filing) (FCC 605 &                15.00
     159).............................................
Aviation Aircraft:
    (a) New, Renew/Mod (FCC 605 & 159)................             10.00
    (b) New, Renew/Mod (Electronic Filing) (FCC 605 &              10.00
     159).............................................
    (c) Renewal Only (FCC 605 & 159)..................             10.00
    (d) Renewal Only (Electronic Filing) (FCC 605 &                10.00
     159).............................................
4. CMRS Cellular/Mobile Services (per unit) (FCC 159).           \2\ .20
5. CMRS Messaging Services (per unit) (FCC 159).......            \3\.08
6. Broadband Radio Service (formerly MMDS and MDS)....               600
7. Local Multipoint Distribution Service..............               600
------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the entire
  license term. Therefore, the annual fee amount shown in this table
  that is a small fee (categories 1 through 5) must be multiplied by the
  10-year license term to arrive at the total amount of regulatory fees
  owed. Also, application fees may apply as detailed in Sec.   1.1102.
\2\ These are standard fees that are to be paid in accordance with Sec.
   1.1157(b).
\3\ These are standard fees that are to be paid in accordance with Sec.
   1.1157(b).



0
3. Section 1.1153 is revised to read as follows:


Sec.  1.1153   Schedule of annual regulatory fees and filing locations 
for mass media services.

------------------------------------------------------------------------
                                                           Fee amount
------------------------------------------------------------------------
                   Radio [AM and FM] (47 CFR part 73)
------------------------------------------------------------------------
1. AM Class A:
    <=25,000 population...............................              $880
    25,001-75,000 population..........................             1,325
    75,001-150,000 population.........................             1,975
    150,001-500,000 population........................             2,975

[[Page 47096]]

 
    500,001-1,200,000 population......................             4,450
    1,200,001-3,000,000 population....................             6,700
    3,000,001-6,000,000 population....................            10,025
    >6,000,000 population.............................            15,050
2. AM Class B:
    <=25,000 population...............................               635
    25,001-75,000 population..........................               950
    75,001-150,000 population.........................             1,425
    150,001-500,000 population........................             2,150
    500,001-1,200,000 population......................             3,225
    1,200,001-3,000,000 population....................             4,825
    3,000,001-6,000,000 population....................             7,225
    >6,000,000 population.............................            10,850
3. AM Class C:
    <=25,000 population...............................               550
    25,001-75,000 population..........................               825
    75,001-150,000 population.........................             1,250
    150,001-500,000 population........................             1,850
    500,001-1,200,000 population......................             2,775
    1,200,001-3,000,000 population....................             4,175
    3,000,001-6,000,000 population....................             6,275
    >6,000,000 population.............................             9,400
4. AM Class D:
    <=25,000 population...............................               605
    25,001-75,000 population..........................               910
    75,001-150,000 population.........................             1,350
    150,001-500,000 population........................             2,050
    500,001-1,200,000 population......................             3,050
    1,200,001-3,000,000 population....................             4,600
    3,000,001-6,000,000 population....................             6,900
    >6,000,000 population.............................            10,325
5. AM Construction Permit.............................               550
6. FM Classes A, B1 and C3:
    <=25,000 population...............................               965
    25,001-75,000 population..........................             1,450
    75,001-150,000 population.........................             2,175
    150,001-500,000 population........................             3,250
    500,001-1,200,000 population......................             4,875
    1,200,001-3,000,000 population....................             7,325
    3,000,001-6,000,000 population....................            11,000
    >6,000,000 population.............................            16,500
7. FM Classes B, C, C0, C1 and C2:
    <=25,000 population...............................             1,100
    25,001-75,000 population..........................             1,650
    75,001-150,000 population.........................             2,475
    150,001-500,000 population........................             3,725
    500,001-1,200,000 population......................             5,575
    1,200,001-3,000,000 population....................             8,350
    3,000,001-6,000,000 population....................            12,525
    >6,000,000 population.............................            18,800
8. FM Construction Permits............................               965
------------------------------------------------------------------------
                           TV (47 CFR part 73)
------------------------------------------------------------------------
Digital TV (UHF and VHF Commercial Stations):
    1. Markets 1 thru 10..............................            49,750
    2. Markets 11 thru 25.............................            37,450
    3. Markets 26 thru 50.............................            25,025
    4. Markets 51 thru 100............................            12,475
    5. Remaining Markets..............................             4,100
    6. Construction Permits...........................             4,100
Satellite UHF/VHF Commercial:
    1. All Markets....................................             1,500
    Low Power TV, Class A TV, TV/FMTranslator, & TV/FM               380
     Booster (47 CFR part 74).........................
------------------------------------------------------------------------



0
4. Section 1.1154 is revised to read as follows:

Sec.  1.1154   Schedule of annual regulatory charges for common carrier 
services.


----------------------------------------------------------------------------------------------------------------
                      Radio facilities                                            Fee amount
----------------------------------------------------------------------------------------------------------------
1. Microwave (Domestic Public Fixed) (Electronic Filing)     $25.00.
 (FCC Form 601 & 159).

[[Page 47097]]

 
Carriers:                                                    ...................................................
    1. Interstate Telephone Service Providers (per           $.00291.
     interstate and international end-user revenues (see
     FCC Form 499-A).
    2. Toll Free Number Fee................................  $.10 per Toll Free Number.
----------------------------------------------------------------------------------------------------------------



0
5. Section 1.1155 is revised to read as follows:

Sec.  1.1155   Schedule of regulatory fees for cable television 
services.

----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
1. Cable Television Relay Service..........................  $1,075.
2. Cable TV System, Including IPTV (per subscriber)........  $.77.
3. Direct Broadcast Satellite (DBS)........................  $.48 per subscriber.
----------------------------------------------------------------------------------------------------------------



0
6. Section 1.1156 is revised to read as follows:

Sec.  1.1156   Schedule of regulatory fees for international services.

    (a) Geostationary Orbit (GSO) and Non-Geostationary Orbit (NGSO) 
Space Stations. The following schedule applies for the listed services:

------------------------------------------------------------------------
                     Fee category                          Fee amount
------------------------------------------------------------------------
Space Stations (Geostationary Orbit)..................          $127,850
Space Stations (Non-Geostationary Orbit)..............           122,775
Earth Stations: Transmit/Receive & Transmit only (per                325
 authorization or registration).......................
------------------------------------------------------------------------

    (b) International Terrestrial and Satellite. (1) Regulatory fees 
for International Bearer Circuits are to be paid by facilities-based 
common carriers and non-common carrier basis that have active (used or 
leased) international bearer circuits as of December 31 of the prior 
year in any terrestrial or satellite transmission facility for the 
provision of service to an end user or resale carrier, which includes 
active circuits to themselves or to their affiliates. ``Active 
circuits'' for these purposes include backup and redundant circuits. In 
addition, whether circuits are used specifically for voice or data is 
not relevant in determining that they are active circuits.
    (2) The fee amount on a per active Gbps basis will be determined 
for each fiscal year.

----------------------------------------------------------------------------------------------------------------
  International terrestrial and satellite (capacity as of
                     December 31, 2017)                                           Fee amount
----------------------------------------------------------------------------------------------------------------
Terrestrial Common Carrier.................................  $176 per Gbps Circuit.
Terrestrial Non-Common Carrier.                              ...................................................
Satellite Common Carrier.                                    ...................................................
Satellite Non-Common Carrier.                                ...................................................
----------------------------------------------------------------------------------------------------------------

    (c) Submarine cable. Regulatory fees for submarine cable systems 
will be paid annually, per cable landing license, for all submarine 
cable systems operating as of December 31 of the prior year. The fee 
amount will be determined by the Commission for each fiscal year.

------------------------------------------------------------------------
Submarine cable systems (capacity as of Dec. 31, 2017)     Fee amount
------------------------------------------------------------------------
<50 Gbps..............................................            $9,850
50 Gbps or greater, but less than 250 Gbps............            19,725
250 Gbps or greater, but less than 1,000 Gbps.........            39,425
1,0000 Gbps or greater, but less than 4,000 Gbps......            78,875
4,000 Gbps or greater.................................           157,750
------------------------------------------------------------------------



0
7. Section 1.1940(c) is revised to read as follows:

Sec.  1.1940   Assessment.

* * * * *
    (c) The Commission shall assess administrative costs incurred for 
processing and handling delinquent debts, unless otherwise prohibited 
by statute. The calculation of administrative costs may be based on 
actual costs incurred or upon estimated costs as determined by the 
Commission. Commission administrative costs include the personnel and 
service costs (e.g., telephone, copier, and overhead) to notify and 
collect the debt, without regard to the success of such efforts by the 
Commission.
* * * * *

[FR Doc. 2018-19548 Filed 9-17-18; 8:45 am]
 BILLING CODE 6712-01-P



                                                              Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations                                                47079

                                               Dated: September 6, 2018.                             Commission has prepared a Final                       appropriation.5 Regulatory fees,
                                             Katherine B. Fox,                                       Regulatory Flexibility Analysis (FRFA)                mandated by Congress, are collected ‘‘to
                                             Assistant Administrator for Mitigation,                 relating to this Report and Order. The                recover the costs of . . . enforcement
                                             Federal Insurance and Mitigation                        FRFA is located towards the end of this               activities, policy and rulemaking
                                             Administration—FEMA Resilience,                         document.                                             activities, user information services, and
                                             Department of Homeland Security, Federal                                                                      international activities.’’ 6 Regulatory
                                             Emergency Management Agency.                            B. Final Paperwork Reduction Act of
                                                                                                     1995 Analysis                                         fees are to ‘‘be derived by determining
                                             [FR Doc. 2018–20257 Filed 9–17–18; 8:45 am]                                                                   the full-time equivalent number of
                                             BILLING CODE 9110–12–P                                    2. This document does not contain                   employees performing’’ these activities,
                                                                                                     new or modified information collection                ‘‘adjusted to take into account factors
                                                                                                     requirements subject to the Paperwork                 that are reasonably related to the
                                             FEDERAL COMMUNICATIONS                                  Reduction Act of 1995 (PRA), Public                   benefits provided to the payer of the fee
                                             COMMISSION                                              Law 104–13. In addition, therefore, it                by the Commission’s activities. . . . .’’ 7
                                                                                                     does not contain any new or modified                  Regulatory fees recover direct costs,
                                             47 CFR Part 1                                           information collection burden for small               such as salary and expenses; indirect
                                             [MD Docket No. 18–175; FCC 18–126]
                                                                                                     business concerns with fewer than 25                  costs, such as overhead functions; and
                                                                                                     employees, pursuant to the Small                      support costs, such as rent, utilities, and
                                             Assessment and Collection of                            Business Paperwork Relief Act of 2002,                equipment.8 Regulatory fees also cover
                                             Regulatory Fees for Fiscal Year 2018                    Public Law 107–198, see 44 U.S.C.                     the costs incurred in regulating entities
                                                                                                     3506(c)(4).                                           that are statutorily exempt from paying
                                             AGENCY:  Federal Communications
                                             Commission.                                             C. Congressional Review Act                           regulatory fees,9 entities whose
                                                                                                       3. The Commission will send a copy                  regulatory fees are waived,10 and
                                             ACTION: Final rule.
                                                                                                     of the Report and Order to Congress and               entities providing services for which we
                                             SUMMARY:    In this document, the                       the Government Accountability Office                  do not assess regulatory fees.
                                             Commission revises its Schedule of                      pursuant to the Congressional Review                     4. Congress sets the amount of
                                             Regulatory Fees to recover an amount of                 Act, 5 U.S.C. 801(a)(1)(A).                           regulatory fees the Commission must
                                             $322,035,000 that Congress has required                                                                       collect each year in the Commission’s
                                             the Commission to collect for fiscal year               II. Introduction                                      fiscal year appropriations. Section
                                             2018. Section 9 of the Communications                      1. This Report and Order adopts a                  9(a)(2) of the Communications Act
                                             Act of 1934, as amended, provides for                   schedule of regulatory fees to assess and             requires the Commission to collect fees
                                             the annual assessment and collection of                 collect $322,035,000 in regulatory fees               sufficient to offset the amount
                                             regulatory fees under sections 9(b)(2)                  for fiscal year (FY) 2018, pursuant to                appropriated.11 To calculate regulatory
                                             and 9(b)(3), respectively, for annual                   section 9 2 of the Communications Act                 fees, the Commission allocates the total
                                             ‘‘Mandatory Adjustments’’ and                           of 1934, as amended, and the                          collection target across all regulatory fee
                                             ‘‘Permitted Amendments’’ to the                         Commission’s FY 2018 Appropriation.3                  categories. The allocation of fees to fee
                                             Schedule of Regulatory Fees.                            The schedule of regulatory fees for FY                categories is based on the Commission’s
                                             DATES: Effective September 18, 2018,                    2018 adopted herein is attached in                    calculation of Full Time Employees
                                             except for the amendment to § 1.1940,                   Table 4. The regulatory fees for all                  (FTEs) in each regulatory fee category.12
                                             which is effective October 1, 2018. To                  payors are due in September 2018.                     FTEs are classified as ‘‘direct’’ if the
                                             avoid penalties and interest, regulatory                   2. Additionally, we amend our rules                employee is in one of the four ‘‘core’’
                                             fees should be paid by the due date of                  in accordance with the directives of the              bureaus; otherwise, that employee is
                                             September 25, 2018.                                     RAY BAUM’S Act regarding the                          considered an ‘‘indirect’’ FTE.13 The
                                             FOR FURTHER INFORMATION CONTACT:                        collection of delinquent debts.4 This
                                             Roland Helvajian, Office of Managing                    rule change will become effective on                    5 47 U.S.C. 159(b)(1)(B).
                                             Director at (202) 418–0444.                             October 1, 2018.                                        6 47 U.S.C. 159(a).
                                                                                                                                                             7 47 U.S.C. 159(b)(1)(A).
                                             SUPPLEMENTARY INFORMATION: This is a                    III. Background                                         8 Assessment and Collection of Regulatory Fees
                                             summary of the Commission’s Report
                                                                                                        3. The Commission is required by                   for Fiscal Year 2004, Report and Order, 19 FCC Rcd
                                             and Order, FCC 18–126, MD Docket No.                                                                          11662, 11666, paragraph 11 (2004) (FY 2004 Report
                                                                                                     Congress to assess regulatory fees each
                                             18–175, adopted on August 28, 2018                                                                            and Order), 69 FR 41028 (July 7, 2004).
                                                                                                     year in an amount that can reasonably
                                             and released on August 29, 2018. The                                                                            9 For example, governmental and nonprofit
                                                                                                     be expected to equal the amount of its                entities are exempt from regulatory fees under
                                             full text of this document is available for
                                                                                                                                                           section 9(h). 47 U.S.C. 159(h); 47 CFR 1.1162.
                                             public inspection and copying during
                                                                                                     Regulatory Enforcement Fairness Act of 1996             10 47 CFR 1.1166.
                                             normal business hours in the FCC                        (SBREFA), Public Law 104–121, Title II, 110 Stat.       11 47 U.S.C. 159(a)(2).
                                             Reference Center (Room CY–A257), 445                    847 (1996). The SBREFA was enacted as Title II of       12 One FTE is a unit of measure equal to the work

                                             12th Street SW, Washington, DC 20554,                   the Contract with America Advancement Act of          performed annually by a full-time person (working
                                             or by downloading the text from the                     1996 (CWAAA).                                         a 40 hour workweek for a full year) assigned to the
                                                                                                       2 47 U.S.C. 159. Although the Repack Airwaves
                                             Commission’s website at http://                                                                               particular job, and subject to agency personnel
                                                                                                     Yielding Better Access for Users of Modern Services   staffing limitations established by the U.S. Office of
                                             transition.fcc.gov/Daily_Releases/Daily_                Act of 2018, or the RAY BAUM’S Act of 2018,           Management and Budget.
                                             Business/2017/db0906/FCC-17-                            amended sections 8 and 9 and added section 9A to        13 The core bureaus, which have the direct FTEs,

                                             111A1.pdf.                                              the Communications Act, those provisions do not       are the Wireline Competition Bureau (124),
                                                                                                     become effective until October 1, 2018.               Wireless Telecommunications Bureau (101), Media
                                             I. Administrative Matters                               Consolidated Appropriations Act, 2018, Public Law     Bureau (135), and part of the International Bureau
daltland on DSKBBV9HB2PROD with RULES




                                                                                                     Number 115–141, 132 Stat. 1084, Division P—RAY        (24). The indirect FTEs are the employees from the
                                             A. Final Regulatory Flexibility Analysis                BAUM’s Act of 2018, Title I, 103 (2018).              following bureaus and offices: Enforcement Bureau
                                                                                                       3 Consolidated Appropriations Act, 2018,
                                               1. As required by the Regulatory                                                                            (203), Consumer & Governmental Affairs Bureau
                                                                                                     Division E—Financial Services and General             (136), Public Safety and Homeland Security Bureau
                                             Flexibility Act of 1980 (RFA),1 the                     Government Appropriations Act, 2018, Title V—         (104), part of the International Bureau (72), part of
                                                                                                     Independent Agencies, Public Law 115–141 (March       the Wireline Competition Bureau (38), Chairman
                                               1 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601–        23, 2018) (FCC FY 2018 Appropriation).                and Commissioners’ offices (15), Office of the
                                             612, has been amended by the Small Business               4 See supra note 1.                                                                              Continued




                                        VerDate Sep<11>2014   18:11 Sep 17, 2018   Jkt 244001   PO 00000   Frm 00053   Fmt 4700   Sfmt 4700   E:\FR\FM\18SER1.SGM   18SER1


                                             47080            Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations

                                             total FTEs for each fee category includes               The Commission sought comment                             MVPDs and other video distribution
                                             the direct FTEs associated with that                    specifically on an incremental increase                   providers. These responsibilities
                                             category, plus a proportional allocation                in the DBS regulatory fee 19 and on                       include market modifications, local-
                                             of indirect FTEs.14 The Commission                      proposed regulatory fees for terrestrial                  into-local, must-carry and
                                             then allocates the total amount to be                   and satellite international bearer circuits               retransmission consent disputes,
                                             collected among the various regulatory                  for FY 2018.20 Additionally, the                          program carriage and program access
                                             fee categories within each of the core                  Commission sought comment on the                          complaints, over-the-air reception
                                             bureaus. Each regulatee within a fee                    methodology for calculating broadcast                     device declaratory rulings and waivers,
                                             category pays its proportionate share                   television station regulatory fees for FY                 media rule modernization, media
                                             based on an objective measure (e.g.,                    2019 21 and whether to adopt a new                        ownership, and proposed
                                             revenues or number of subscribers).15                   regulatory fee category for small                         transactions.24
                                             These calculations are illustrated in                   satellites for FY 2019, and if so, what                      9. For these activities in FY 2018, the
                                             Table 3. The sources for the unit                       the appropriate regulatory fee for small                  Commission must collect $62,330,000 in
                                             estimates that are used in these                        satellites should be.22 We received 9                     regulatory fees from three categories of
                                             calculations are listed in Table 5.                     comments and four reply comments on                       providers: Cable TV systems, IPTV
                                               5. The Commission annually reviews                    the FY 2018 NPRM.23                                       providers, and direct broadcast satellite
                                             the regulatory fee schedule, proposes                                                                             (DBS) operators. Although the
                                             changes to the schedule to reflect                      IV. Report and Order                                      Commission decided to assess cable TV
                                             changes in the amount of its                               7. In this FY 2018 Report and Order,                   systems and IPTV providers the same
                                             appropriation, and proposes increases                   we adopt the regulatory fee schedule                      for regulatory fee purposes—assessing
                                             or decreases to the schedule of                         proposed in the FY 2018 NPRM for FY                       each provider based on its
                                             regulatory fees.16 As part of its annual                2018, pursuant to section 9 of the                        subscribership—the Commission took a
                                             review, the Commission also regularly                   Communications Act, to collect                            different approach when it began to
                                             seeks to improve the regulatory fee                     $322,035,000 in regulatory fees. Of this                  assess Media Bureau-based regulatory
                                             process.17                                              amount, we project approximately $20.3                    fees on DBS operators. Specifically, the
                                               6. In the FY 2018 Notice of Proposed                  million (6.25 percent of the total FTE                    Commission decided to phase in the
                                             Rulemaking, the Commission proposed                     allocation) in fees from the International                new Media Bureau-based regulatory fee
                                             to collect $322,035,000 in regulatory                   Bureau regulatees; $84.7 million (26.3                    for DBS, starting at 12 cents per
                                             fees for FY 2018 and sought comment                     percent of the total FTE allocation) in                   subscriber per year.25 At the same time,
                                             on a detailed proposed fee schedule.18                  fees from the Wireless                                    the Commission committed to updating
                                                                                                     Telecommunications Bureau regulatees;                     the regulatory fee rate in future years
                                             Managing Director (149), Office of General Counsel      $103.99 million (32.29 percent of the                     ‘‘as necessary for ensuring an
                                             (74), Office of the Inspector General (46), Office of
                                                                                                     total FTE allocation) in fees from the                    appropriate level of regulatory parity
                                             Communications Business Opportunities (8), Office                                                                 and considering the resources dedicated
                                             of Engineering and Technology (73), Office of           Wireline Competition Bureau
                                             Legislative Affairs (9), Office of Strategic Planning   regulatees; and $113.22 million (35.16                    to this new regulatory fee
                                             and Policy Analysis (15), Office of Workplace           percent of the total FTE allocation) in                   subcategory.’’ 26 Accordingly, the
                                             Diversity (5), Office of Media Relations (14), and
                                                                                                     fees from the Media Bureau regulatees.                    Commission increased the regulatory fee
                                             Office of Administrative Law Judges (4).                                                                          for DBS operators to 27 cents (including
                                                14 The Commission observed in the FY 2013            These regulatory fees are due in
                                             Report and Order that ‘‘the high percentage of the      September 2018. The schedule of                           a three cent moving fee) and then 38
                                             indirect FTEs is indicative of the fact that many       regulatory fees for FY 2018 adopted                       cents (including a two cent moving fee)
                                             Commission activities and costs are not limited to      herein is attached as Table 4.                            per subscriber per year, with the
                                             a particular fee category and instead benefit the                                                                 regulatory fees paid by DBS operators
                                             Commission as a whole.’’ See Assessment and             FY 2018 Adjustment: Video Distribution                    reducing those paid by other MVPDs.27
                                             Collection of Regulatory Fees for Fiscal Year 2013,
                                             Report and Order, 28 FCC Rcd 12351, 12357,
                                                                                                     Provider Regulatory Fees                                     10. For FY 2018, the Commission
                                             paragraph 17 (2013) (FY 2013 Report and Order),           8. Among other activities, the Media                    proposed to continue the transition by
                                             78 FR 52433 (Aug. 23, 2013).
                                                                                                     Bureau oversees the regulation of video                   increasing the DBS regulatory fee rate to
                                                15 See Procedures for Assessment and Collection
                                                                                                     distribution providers like multichannel                  48 cents per subscriber per year, thereby
                                             of Regulatory Fees, Notice of Proposed Rulemaking,                                                                leaving other MVPDs with a regulatory
                                             27 FCC Rcd 8458, 8461–62, paragraphs 8–11 (2012)        video programming distributors
                                             (FY 2012 NPRM), 77 FR 29275 (May 17, 2012).             (MVPDs), i.e., regulated companies that                   fee of 77 cents per subscriber per year.28
                                                16 47 U.S.C. 159(b)(1)(B).
                                                                                                     make available for purchase, by                           Although a common pool of FTEs work
                                                17 In the FY 2013 Report and Order, the
                                                                                                     subscribers or customers, multiple                        on MVPD and related issues for DBS
                                             Commission adopted updated FTE allocations to
                                                                                                     channels of video programming. The                        operators, IPTV providers, and cable TV
                                             more accurately reflect the number of FTEs working                                                                systems, which some commenters argue
                                             on regulation and oversight of regulatees in the fee    Media Bureau relies on a common pool
                                                                                                                                                               justifies immediate parity in regulatory
                                             categories. FY 2013 Report and Order, 28 FCC Rcd        of FTEs to carry out its oversight of
                                             at 12354–58, paragraphs 10–20. This was
                                             recommended in a report issued by the Government                                                                     24 See NCTA Comments at 6–7; ACA Comments
                                                                                                     of Proposed Rulemaking, FCC 18–65 (2018) (FY
                                             Accountability Office (GAO) in 2012. See GAO                                                                      at 4 & n.13.
                                                                                                     2018 NPRM), 83 FR 27846 (June 14, 2018).
                                             ‘‘Federal Communications Commission Regulatory            19 Id. paragraphs 17–20.
                                                                                                                                                                  25 Assessment and Collection of Regulatory Fees

                                             Fee Process Needs to be Updated,’’ GAO–12–686                                                                     for Fiscal Year 2015, Report and Order, 30 FCC Rcd
                                                                                                       20 Id. paragraphs 22–26.
                                             (August 2012) (GAO Report) at 36, http://                                                                         10268, 10277, paragraph 20 (2015) (FY 2015 Report
                                                                                                       21 Id. paragraphs 27–31.
                                             www.gao.gov/products/GAO-12-686. The                                                                              and Order), 80 FR 55775 (Sept. 17, 2015).
                                             Commission has since updated the FTE allocations          22 Id. paragraphs 32–33. We defer consideration of         26 FY 2015 Report and Order, 30 FCC Rcd at

                                             annually. In addition, the Commission reallocated       a new regulatory fee category, and the appropriate        10277, paragraph 20.
                                             some FTEs from the International Bureau as              regulatory fee, for small satellites until we adopt a        27 Assessment and Collection of Regulatory Fees
daltland on DSKBBV9HB2PROD with RULES




                                             indirect; combined the UHF and VHF television           definition of ‘‘small satellites’’ in the pending Small   for Fiscal Year 2017, Report and Order, 32 FCC Rcd
                                             stations into one regulatory fee category; and added    Satellite NPRM proceeding. See Streamlining               7057, 7067, paragraph 20 (2017) (FY 2017 Report
                                             internet Protocol Television (IPTV) to the cable        Licensing Procedures for Small Satellites, IB Docket      and Order), 82 FR 44322 (Sept. 22, 2017);
                                             television regulatory fee category. FY 2013 Report      No. 18–86, Notice of Proposed Rulemaking, FCC             Assessment and Collection of Regulatory Fees for
                                             and Order, 28 FCC Rcd at 12355–63, paragraphs           18–44 (2018) (Small Satellite NPRM), 83 FR 24064          Fiscal Year 2016, Report and Order, 31 FCC Rcd
                                             13–33.                                                  (May 24, 2018).                                           10339, 10350, paragraph 30 (2016) (FY 2016 Report
                                                18 Assessment and Collection of Regulatory Fees        23 Commenters to the FY 2018 NPRM are listed            and Order), 81 FR 65926 (Sept. 26, 2016).
                                             for Fiscal Year 2018, Report and Order and Notice       in Appendix A.                                               28 FY 2018 NPRM at paragraph 19.




                                        VerDate Sep<11>2014   16:42 Sep 17, 2018   Jkt 244001   PO 00000   Frm 00054   Fmt 4700   Sfmt 4700   E:\FR\FM\18SER1.SGM      18SER1


                                                              Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations                                                 47081

                                             fees across these providers,29 we believe               operators in Commission proceedings,                    market a station serves. For FY 2017, the
                                             it prudent to adopt our proposal to                     along with the use of a common pool of                  regulatory fees for full service stations
                                             increase such rates by less than one cent               FTEs to oversee MVPD matters                            ranged from $1,725 for satellite stations
                                             per subscriber per month, or 10 cents                   (including matters related to DBS                       to $59,750 for stations in markets 1–10.
                                             per subscriber per year. Doing so reflects              operators in particular), justifies an                     14. In the FY 2018 NPRM, we sought
                                             the statutory imperative to take into                   increase in the DBS regulatory fee rate.                comment on whether we could more
                                             account the FTEs devoted to oversight                                                                           accurately ascertain the actual market
                                                                                                     FY 2018 Adjustment: Terrestrial and                     served by a station for purposes of
                                             of this common category of regulatees,
                                                                                                     Satellite International Bearer Circuits                 assessing regulatory fees by examining
                                             ‘‘adjusted to take into account factors
                                             that are reasonably related to the                         12. As discussed in the FY 2018                      the actual population covered by the
                                             benefits provided to the payor of the fee               NPRM, the Commission has previously                     station’s contours rather than using
                                             by the Commission’s activities,                         sought comment on adopting a tiered                     DMAs.41 Specifically we sought
                                             including . . . factors that the                        methodology for assessing terrestrial                   comment on whether, for FY 2019 and
                                             Commission determines are necessary                     and satellite international bearer circuit              going forward, regulatory fees should be
                                             in the public interest,’’ 30 such as our                regulatory fees, and we should have                     assessed for full-power broadcast
                                             concern to mitigate the impact of                       sufficient information from payors in                   television stations based on the
                                             increases on MVPDs should we move to                    September 2018 to be able to consider                   population covered by the station’s
                                             immediate parity (which a regulatory                    a tiered rate structure for FY 2019.36 In               contour, instead of DMAs.42 No
                                             fee of 67 cents per subscriber per year                 the meantime, the Commission                            commenter opposed this proposal. In
                                             would achieve).31                                       proposed to continue assessing                          the FY 2018 NPRM, we also sought
                                                11. AT&T and DISH—the two DBS                        terrestrial and satellite IBC regulatory                comment on whether to phase in the
                                             operators—reiterate several arguments                   fees on a per-circuit basis for FY 2018,                implementation of this methodology
                                             against any increase in DBS regulatory                  using Gbps as the measurement rather                    over a two-year, or longer, period of
                                             fees that they have raised, and the                     than 64 kbps.37 CenturyLink observes                    time.43 In order to facilitate the
                                             Commission has rejected, in previous                    that the proposed rate of $0.02 per                     transition to this new fee structure, for
                                             years. For example, AT&T and DISH                       circuit in Appendix B to the FY 2018                    FY 2019, we plan to adopt a fee based
                                             claim that the proposed fee increase will               NPRM used 64 kbps instead of Gbps.38                    on an average of the current DMA
                                             result in ‘‘rate shock,’’ 32 even though                We agree with CenturyLink that the                      methodology and the population
                                             last year the Commission held an                        measurement listed in the FY 2018                       covered by a full-power broadcast
                                             increase of about one penny per                         NPRM should have been Gbps instead of                   station’s contour. Thereafter, in 2020,
                                             subscriber per month would not cause                    64 kbps, and we are therefore adopting                  we plan to assess regulatory fees for full-
                                             such shock.33 AT&T and DISH also                        the proposed per-circuit fee of $176,                   power broadcast stations based on the
                                             claim the Commission cannot increase                    using Gbps, in lieu of 64 kbps. No                      population covered by the station’s
                                             DBS regulatory fees without an                          commenter opposed this proposal.                        contour. Such an approach is consistent
                                             allocation of ‘‘additional FTEs to handle               FY 2019 Amendment: Broadcast                            with the methodology used for AM and
                                             DBS matters,’’ 34 even though last year                 Television Stations                                     FM broadcasters, in which fees are
                                             the Commission held that the DBS                                                                                based on population served and the
                                             regulatory fee is based on the significant                 13. Full service television station                  class of service based on the signal
                                             number of Media Bureau FTEs that                        licensees are subject to regulatory fee                 contours. In addition, this approach
                                             work on MVPD issues that include DBS,                   payments based on the market served.                    addresses concerns about the
                                             ‘‘not a particular number of FTEs                       Historically, broadcast full service                    assessment of regulatory fees on
                                             focused solely on DBS’’ or ‘‘specific                   television stations pay regulatory fees                 broadcast television satellite stations
                                             recent proceedings.’’ 35 For these                      based on the schedule of regulatory fees                serving small markets at the fringe of
                                             reasons, we reject these arguments and                  established in section 9(g) of the                      larger DMAs.44 The population data for
                                             agree with commenters that the                          Communications Act, which                               broadcasters’ service areas will be
                                             continued participation of DBS                          consolidated stations into market                       extracted annually from the TVStudy
                                                                                                     groupings 1–10, 11–25, 26–50, 51–100,                   database, based on a station’s projected
                                               29 ACA    Comments at 1–3; NCTA Comments at 4.        and remaining markets.39 The                            noise-limited service contour, consistent
                                               30 47  U.S.C. 159(b)(1)(A).                           Commission subsequently established a                   with our rules,45 and we will enable
                                                31 For similar reasons, we reject NCTA’s request     separate fee category for broadcast                     broadcasters to review population data
                                             to increase the DBS regulatory fee to at least 60       television satellite stations.40 The                    for their service area in our annual
                                             cents per subscriber per year (and reduce the           Commission uses Nielsen Designated
                                             proposed cable television/IPTV regulatory fee to 72                                                             regulatory fee NPRM. We will multiply
                                             cents per subscriber per year) in order to              Market Areas (DMAs) to define the                       the population by a factor for which we
                                             accommodate cable television providers’ chosen                                                                  will seek comment in the annual
                                             billing systems. See NCTA Comments at 8 & n.23.            36 See FY 2018 NPRM, paragraphs 22–26. SIA
                                                                                                                                                             regulatory fee NPRM, e.g., 0.63 cents
                                                32 DISH and AT&T Comments at 9.                      raises a number of arguments in opposition to a
                                                33 See also FY 2017 Report and Order, 32 FCC         tiered methodology for assessing terrestrial and        ($.0063).
                                             Rcd at 7067, paragraph 21 (rejecting the claim that     satellite IBC regulatory fees. See SIA Comments at         15. The adoption of these
                                             a regulatory fee increase of several cents per          1–2 (‘‘SIA continues to oppose use of a tier-based      methodologies for assessing regulatory
                                             subscriber, per month would harm customers given        system to calculate fees . . . . Instead, the           fees for broadcast television stations is
                                             that ‘‘such an increase is a negligible faction of a    Commission should reconsider exempting satellite
                                                                                                     IBCs from IBC [regulatory] fees or retain the current   a permitted amendment as defined in
                                             monthly bill’’).
                                                34 AT&T and DISH Comments at 3.                      assessment method.); id. at 2–5. Because we do not
                                                35 FY 2017 Report and Order, 32 FCC Rcd at           adopt a tiered methodology at this time, we do not        41 FY 2018 NPRM at paragraph 28.
daltland on DSKBBV9HB2PROD with RULES




                                                                                                     address SIA’s arguments here.                             42 FY 2018 NPRM at paragraph 28.
                                             7067–68, paragraphs 22–23; see also FY 2015 NPRM           37 FY 2018 NPRM. paragraph 26.                         43 FY 2018 NPRM at paragraph 28.
                                             and Report and Order, 30 FCC Rcd 5354, 5369,
                                                                                                        38 CenturyLink Comments at 1–2.                        44 See, e.g., FY 2017 NPRM, 32 FCC Rcd at 4534–
                                             paragraph 33 (2015) (FY 2015 NPRM and Report
                                                                                                        39 47 U.S.C. 159(g).                                 36, paragraphs 20–22, 82 FR 26019 (June 6, 2017)
                                             and Order), 80 FR 37206 (June 30, 2015) (‘‘We also
                                             reject the argument raised by DIRECTV and DISH             40 Assessment and Collection of Regulatory Fees      (discussing concerns about the regulatory fees
                                             that section 9 of the Act requires us to ‘show that     for Fiscal Year 1995, Report and Order, 10 FCC Rcd      assessed on broadcast satellite television stations
                                             DBS and cable occupy a comparable number of             13512, 13534, paragraph 60 (1995), 60 FR 34004          serving small markets at the fringe of larger DMAs).
                                             FTEs.’ ’’).                                             (June 29, 1995).                                          45 47 CFR 73.622(e).




                                        VerDate Sep<11>2014   16:42 Sep 17, 2018   Jkt 244001   PO 00000   Frm 00055   Fmt 4700   Sfmt 4700   E:\FR\FM\18SER1.SGM      18SER1


                                             47082            Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations

                                             section 9(b)(3) of the Act,46 and                       result, prior notice or comment is                    $24,999.99.57 Transactions greater than
                                             pursuant to section 9(b)(4)(B), it must be              unnecessary.53                                        $24,999.99 will be rejected. This limit
                                             submitted to Congress at least 90 days                                                                        applies to single payments or bundled
                                                                                                     VI. Procedural Matters
                                             before it would become effective.47                                                                           payments of more than one bill.
                                             Therefore, for FY 2018, we will assess                  Broadcast Television Licenses, Post-                  Multiple transactions to a single agency
                                             regulatory fees for all broadcast                       Incentive Auction                                     in one day may be aggregated and
                                             television stations using the same                         18. On March 29, 2016, the                         treated as a single transaction subject to
                                             methodology as we did for FY 2017.48                    Commission commenced the incentive                    the $24,999.99 limit. Customers who
                                             The regulatory fees for broadcast                       auction to allow broadcast television                 wish to pay an amount greater than
                                             television stations for FY 2018 are in                  stations to make their spectrum                       $24,999.99 should consider available
                                             Table 4.                                                available for wireless broadband                      electronic alternatives such as Visa or
                                                                                                     licensees. On April 13, 2017, the                     MasterCard debit cards, ACH debits
                                             V. Order—Collection Costs for
                                                                                                     Commission released a Public Notice                   from a bank account, and wire transfers.
                                             Regulatory and Application Fees
                                                                                                     formally closing the auction 54 and                   Each of these payment options is
                                                16. The Commission’s rules requires                  beginning the 39-month post-auction                   available after filing regulatory fee
                                             the assessment of administrative costs                  transition period during which some                   information in Fee Filer. Further details
                                             incurred for processing and handling                    broadcast television stations will                    will be provided regarding payment
                                             delinquent debts.49 However, the RAY                    transition to new channel assignments                 methods and procedures at the time of
                                             BAUM’S Act amended the                                  and other stations will go off the air. We            FY 2018 regulatory fee collection in Fact
                                             Communications Act, in relevant part,                   remind licensees that those who held a                Sheets, available at https://www.fcc.gov/
                                             prohibiting the Commission from                         broadcast television station license on               regfees.
                                             assessing its administrative costs of                   October 1, 2017 are responsible for FY
                                             collecting delinquent regulatory and                                                                          3. Payment Methods
                                                                                                     2018 regulatory fees for that license.55
                                             application fee debt (or related                        Licensees who have relinquished their                    21. During the fee season for
                                             penalties), effective October 1, 2018.50                licenses by September 30, 2017 are not                collecting FY 2018 regulatory fees,
                                             Therefore, we amend our rules to reflect                responsible for FY 2018 regulatory fees               regulatees can pay their fees by credit
                                             these statutory changes.51 This rule                    for the cancelled license.56                          card through Pay.gov,58 ACH, debit
                                             change will become effective on October                                                                       card,59 or by wire transfer. Additional
                                             1, 2018.                                                Payment of Regulatory Fees                            filing and payment instructions are
                                                17. We find good cause under section                 1. Checks Are Not Accepted for                        posted on the Commission’s website at
                                             553(b)(B) of the Administrative                         Payment of Annual Regulatory Fees                     https://www.fcc.gov/licensing-
                                             Procedure Act 52 to adopt this change                      19. All regulatory fee payments must               databases/fees/regulatory-fees. The
                                             without prior notice and comment.                       be made by online Automated Clearing                  receiving bank for all wire payments is
                                             Section 553(b)(B) provides that notice                  House (ACH) payment, online credit                    the U.S. Treasury, New York, New York.
                                             and public comment procedures do not                    card, or wire transfer. Any other form of             When making a wire transfer, regulatees
                                             apply when ‘‘impracticable,                             payment (e.g., checks, cashier’s checks,              must fax a copy of their Fee Filer
                                             unnecessary, or contrary to the public                  or money orders) will be rejected. For                generated Form 159–E to the Federal
                                             interest.’’ New section 9A of the                       payments by wire, a Form 159–E should                 Communications Commission at (202)
                                             Communications Act is clear in its                      still be transmitted via fax so that the              418–2843 at least one hour before
                                             directive that the Commission must                      Commission can associate the wire                     initiating the wire transfer (but on the
                                             cease applying to regulatory and                        payment with the correct regulatory fee               same business day) so as not to delay
                                             application fees or penalties the                       information.                                          crediting their account. Regulatees
                                             provisions of section 3717 of Title 31,                                                                       should discuss arrangements (including
                                             United States Code, that do not involve                 2. Credit Card Transaction Levels                     bank closing schedules) with their
                                             interest rates. The Commission is thus                     20. Since June 1, 2015, in accordance              bankers several days before they plan to
                                             afforded no discretion to apply such                    with U.S. Treasury Announcement No.                   make the wire transfer to allow
                                             provisions of section 3717 to such fees                 A–2014–04 (July 2014), the amount that                sufficient time for the transfer to be
                                             or penalties because its prior authority                can be charged on a credit card for
                                             has been eliminated by statute. As a                    transactions with federal agencies has is
                                                                                                                                                              57 Customers who owe an amount on a bill, debt,

                                                                                                                                                           or other obligation due to the federal government
                                               46 47                                                                                                       are prohibited from splitting the total amount due
                                                      U.S.C. 159(b)(3).                                53 The Commission previously has applied the
                                               47 47
                                                                                                                                                           into multiple payments. Splitting an amount owed
                                                      U.S.C. 159(b)(4)(B).                           unnecessary prong to encompass rule amendments        into several payment transactions violates the credit
                                                48 See e.g., FY 2018 NPRM at Appendix H.
                                                                                                     that involve little or no exercise of agency          card network and Fiscal Service rules. An amount
                                                49 47 CFR 1.1940(c). This provision implements       discretion. See, e.g., Amendment of Parts 0, 1, 73,   owed that exceeds the Fiscal Service maximum
                                             31 U.S.C. 3717(e), part of the Debt Collection          and 74 of the Commission’s Rules, Order, 26 FCC       dollar amount, $24,999.99, may not be split into
                                             Improvement Act.                                        Rcd 13538, 13544, 13539–41, 13543, 13545,             two or more payment transactions in the same day
                                                50 New section 9A(c)(2) requires the Commission      paragraphs 4–5, 10, 15 (OMD 2011), 76 FR 70904        by using one or multiple cards. Also, an amount
                                             to charge interest at the rate set forth in 31 U.S.C.   (Nov. 16, 2011) (deleting or amending obsolete rule   owed that exceeds the Fiscal Service maximum
                                             3717 on delinquent regulatory and application fee       provisions, including those superseded by an Act      dollar amount may not be split into two or more
                                             debt as well as the 25 percent penalty prescribed       of Congress).                                         transactions over multiple days by using one or
                                             in new section 9A(c)(1). However, new section             54 Incentive Auction Closing and Channel            more cards.
                                             9A(c)(2) provides that section 3717 shall not           Reassignment Public Notice, Public Notice, 32 FCC        58 In accordance with U.S. Treasury Financial
                                             otherwise apply to such a fee or penalty. Thus,         Rcd 2786 (MB, WTB 2017).                              Manual Announcement No. A–2014–04 (July 2014),
                                             while new section 9A(c)(2) of the Communications          55 See ‘‘Standard Fee Calculation and Payment       the amount that may be charged on a credit card
daltland on DSKBBV9HB2PROD with RULES




                                             Act leaves intact those parts of § 1.1940 of the        Dates,’’ paragraph 20, infra.                         for transactions with federal agencies has been
                                             Commission’s rules pertaining to interest charges,        56 Cancelled licenses from May 31, 2017 through     reduced to $24,999.99.
                                             the Commission is no longer authorized to assess        September 30, 2017 are, according to the                 59 In accordance with U.S. Treasury Financial
                                             its administrative costs on these delinquent debts.     Commission’s records, the following call signs:       Manual Announcement No. A–2012–02, the
                                                51 See ‘‘Final Rules’’ section at the end of this
                                                                                                     KSPR, WIFR, WAGT, WDLP–CD, WEMM–CD,                   maximum dollar-value limit for debit card
                                             document (amending § 1.1940(c) of the                   KMMA–CD, WAZF–CD, WLPH–CD, WQVC–CD,                   transactions is eliminated. Only Visa and
                                             Commission’s rules).                                    WQCH–CD, WBOA–CD, WMUN–CD, WTSD–CD,                   MasterCard branded debit cards are accepted by
                                                52 5 U.S.C. 553(b)(B).                               WATA–CD, WHTV, WMEI, WWIS–CD.                         Pay.gov.



                                        VerDate Sep<11>2014   16:42 Sep 17, 2018   Jkt 244001   PO 00000   Frm 00056   Fmt 4700   Sfmt 4700   E:\FR\FM\18SER1.SGM   18SER1


                                                              Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations                                                     47083

                                             initiated and completed before the                            • Wireless Services: CMRS cellular,                   stations and non-geostationary orbit
                                             deadline. Complete instructions for                        mobile, and messaging services (fees                     satellite systems that were licensed and
                                             making wire payments are posted at                         based on number of subscribers or                        operational on or before October 1,
                                             https://www.fcc.gov/licensing-                             telephone number count): Regulatory                      2017. In instances where a permit or
                                             databases/fees/wire-transfer.                              fees must be paid for authorizations that                license is transferred or assigned after
                                                                                                        were granted on or before October 1,                     October 1, 2017, responsibility for
                                             4. De Minimis Regulatory Fees                              2017. The number of subscribers, units,                  payment rests with the holder of the
                                                22. Under the Commission’s de                           or telephone numbers on December 31,                     permit or license as of the fee due date.
                                             minimis rule for regulatory fee                            2017 will be used as the basis from                         • International Services (Submarine
                                             payments, a regulatee is exempt from                       which to calculate the fee payment. In                   Cable Systems): Regulatory fees for
                                             paying regulatory fees if the sum total of                 instances where a permit or license is                   submarine cable systems are to be paid
                                             all of its annual regulatory fee liabilities               transferred or assigned after October 1,                 on a per cable landing license basis for
                                             is $1,000 or less for the fiscal year. The                 2017, responsibility for payment rests                   all systems that are licensed and
                                             de minimis threshold applies only to                       with the holder of the permit or license                 operational as of October 1, 2017. The
                                             filers of annual regulatory fees, not                      as of the fee due date.                                  fee is based on circuit capacity as of
                                             regulatory fees paid through multi-year                       • Wireless Services, Multi-year fees:                 December 31, 2017. In instances where
                                             filings, and it is not a permanent                         The first eight regulatory fee categories                a license is transferred or assigned after
                                             exemption. Each regulatee will need to                     in our Schedule of Regulatory Fees pay                   October 1, 2017, responsibility for
                                             reevaluate the total annual fee liability                  ‘‘small multi-year wireless regulatory                   payment rests with the holder of the
                                             each fiscal year to determine whether                      fees.’’ Entities pay these regulatory fees               license as of the fee due date. For
                                             they meet the de minimis exemption.                        in advance for the entire amount period                  regulatory fee purposes, the allocation
                                                                                                        covered by the five-year or ten-year                     in FY 2018 will remain at 87.6 percent
                                             5. Standard Fee Calculations and                           terms of their initial licenses, and pay                 for submarine cable and 12.4 percent for
                                             Payment Dates                                              regulatory fees again only when the                      satellite/terrestrial facilities.
                                                                                                        license is renewed or a new license is                      • International Services (Terrestrial
                                                23. The Commission will accept fee
                                                                                                        obtained. We include these fee                           and Satellite Services): Regulatory fees
                                             payments made in advance of the
                                                                                                        categories in our rulemaking to                          for Terrestrial and Satellite IBCs are to
                                             window for the payment of regulatory
                                                                                                        publicize our estimates of the number of                 be paid based on active (used or leased)
                                             fees. The responsibility for payment of
                                                                                                        ‘‘small multi-year wireless’’ licenses                   international bearer circuits as of
                                             fees by service category is as follows:
                                                                                                        that will be renewed or newly obtained                   December 31, 2017 in any terrestrial or
                                                • Media Services: Regulatory fees                                                                                satellite transmission facility for the
                                                                                                        in FY 2018.
                                             must be paid for initial construction                         • Multichannel Video Programming                      provision of service to an end user or
                                             permits that were granted on or before                     Distributor Services (cable television                   resale carrier. When calculating the
                                             October 1, 2017 for AM/FM radio                            operators, CARS licensees, DBS, and                      number of such active circuits, entities
                                             stations, VHF/UHF full service                             IPTV): Regulatory fees must be paid for                  must include circuits used by
                                             television stations, and satellite                         the number of basic cable television                     themselves or their affiliates. For these
                                             television stations. Regulatory fees must                  subscribers as of December 31, 2017.62                   purposes, ‘‘active circuits’’ include
                                             be paid for all broadcast facility licenses                Regulatory fees also must be paid for                    backup and redundant circuits as of
                                             granted on or before October 1, 2017. In                   CARS licenses that were granted on or                    December 31, 2017 and include both
                                             instances where a permit or license is                     before October 1, 2017. In instances                     common carrier and non-common
                                             transferred or assigned after October 1,                   where a permit or license is transferred                 carrier circuits for both terrestrial and
                                             2017, responsibility for payment rests                     or assigned after October 1, 2017,                       satellite services. Whether circuits are
                                             with the holder of the permit or license                   responsibility for payment rests with the                used specifically for voice or data is not
                                             as of the fee due date.                                    holder of the permit or license as of the                relevant for purposes of determining
                                                • Wireline (Common Carrier)                             fee due date. For providers of Direct                    that they are active circuits.63 In
                                             Services: Regulatory fees must be paid                     Broadcast Satellite (DBS) service and                    instances where a permit or license is
                                             for authorizations that were granted on                    IPTV-based MVPDs, regulatory fees                        transferred or assigned after October 1,
                                             or before October 1, 2017. In instances                    should be paid based on a subscriber                     2017, responsibility for payment rests
                                             where a permit or license is transferred                   count on or about December 31, 2017.                     with the holder of the permit or license
                                             or assigned after October 1, 2017,                         In instances where a permit or license                   as of the fee due date based on circuit
                                             responsibility for payment rests with the                  is transferred or assigned after October                 counts as of December 31, 2017. For
                                             holder of the permit or license as of the                  1, 2017, responsibility for payment rests                regulatory fee purposes, the allocation
                                             fee due date. Audio bridging service                       with the holder of the permit or license                 in FY 2018 will remain at 87.6 percent
                                             providers are included in this                             as of the fee due date.                                  for submarine cable and 12.4 percent for
                                             category.60 For Responsible                                   • International Services: Regulatory                  satellite/terrestrial facilities.
                                             Organizations (RespOrgs) that manage                       fees must be paid for (1) earth stations                 Commercial Mobile Radio Service
                                             Toll Free Numbers (TFN), regulatory                        and (2) geostationary orbit space                        (CMRS) and Mobile Services
                                             fees should be paid on all working,
                                                                                                                                                                 Assessments
                                             assigned, and reserved toll free numbers                     62 Cable television system operators should

                                             as well as toll free numbers in any other                  compute their number of basic subscribers as                24. The Commission will compile
                                             status as defined in § 52.103 of the                       follows: Number of single family dwellings +             data from the Numbering Resource
                                                                                                        number of individual households in multiple
                                             Commission’s rules.61 The unit count                       dwelling unit (apartments, condominiums, mobile
                                                                                                                                                                 Utilization Forecast (NRUF) report that
daltland on DSKBBV9HB2PROD with RULES




                                             should be based on toll free numbers                       home parks, etc.) paying at the basic subscriber rate    is based on ‘‘assigned’’ telephone
                                             managed by RespOrgs on or about                            + bulk rate customers + courtesy and free service.
                                             December 31, 2017.                                           Note: Bulk-Rate Customers = Total annual bulk-           63 We encourage terrestrial and satellite service

                                                                                                        rate charge divided by basic annual subscription         providers to seek guidance from the International
                                                                                                        rate for individual households. Operators may base       Bureau’s Telecommunications and Analysis
                                                60 Audio bridging services are toll
                                                                                                        their count on ‘‘a typical day in the last full week’’   Division to verify their particular IBC reporting
                                             teleconferencing services.                                 of December 2017, rather than on a count as of           processes to ensure that their calculation methods
                                                61 47 CFR 52.103.                                       December 31, 2017.                                       comply with our rules.



                                        VerDate Sep<11>2014    16:42 Sep 17, 2018     Jkt 244001   PO 00000   Frm 00057   Fmt 4700   Sfmt 4700   E:\FR\FM\18SER1.SGM     18SER1


                                             47084            Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations

                                             number (subscriber) counts that have                    difference between what was paid and                      grant the FCC the authority to revoke
                                             been adjusted for porting to net Type 0                 what should have been paid.                               authorizations for failure to pay
                                             ports (‘‘in’’ and ‘‘out’’).64 This                                                                                regulatory fees in a timely fashion.
                                                                                                     Enforcement
                                             information of telephone numbers                                                                                  Should a fee delinquency not be
                                             (subscriber count) will be posted on the                   27. To be considered timely,                           rectified in a timely manner the
                                             Commission’s electronic filing and                      regulatory fee payments must be made                      Commission may require the licensee to
                                             payment system (Fee Filer) along with                   electronically by the payment due date                    file with documented evidence within
                                             the carrier’s Operating Company                         for regulatory fees. Section 9(c) of the                  sixty (60) calendar days that full
                                             Numbers (OCNs).                                         Act requires us to impose a late                          payment of all outstanding regulatory
                                                                                                     payment penalty of 25 percent of the                      fees has been made, plus any associated
                                                25. A carrier wishing to revise its                  unpaid amount to be assessed on the
                                             telephone number (subscriber) count                                                                               penalties as calculated by the Secretary
                                                                                                     first day following the deadline for                      of Treasury in accordance with
                                             can do so by accessing Fee Filer and                    filing these fees.66 Failure to pay
                                             follow the prompts to revise their                                                                                § 1.1164(a) of the Commission’s rules,72
                                                                                                     regulatory fees and/or any late penalty                   or show cause why the payment is
                                             telephone number counts. Any revisions                  will subject regulatees to sanctions,
                                             to the telephone number counts should                                                                             inapplicable or should be waived or
                                                                                                     including those set forth in § 1.1910 of                  deferred. Failure to provide such
                                             be accompanied by an explanation or                     the Commission’s rules,67 which                           evidence of payment or to show cause
                                             supporting documentation.65 The                         generally requires the Commission to                      within the time specified may result in
                                             Commission will then review the                         withhold action on ‘‘applications,                        revocation of the station license.73
                                             revised count and supporting                            including on a petition for                                  29. Pursuant to the ‘‘red light rule,’’
                                             documentation and either approve or                     reconsideration or any application for                    we will withhold action on any
                                             disapprove the submission in Fee Filer.                 review of a fee determination, or                         applications or other requests for
                                             If the submission is disapproved, the                   requests for authorization by any entity                  benefits filed by anyone who is
                                             Commission will contact the provider to                 found to be delinquent in its debt to the                 delinquent in any non-tax debts owed to
                                             afford the provider an opportunity to                   Commission’’ and in the DCIA.68 We                        the Commission (including regulatory
                                             discuss its revised subscriber count and/               also assess administrative processing                     fees) and will ultimately dismiss those
                                             or provide additional supporting                        charges on delinquent debts to recover                    applications or other requests if
                                             documentation. If we receive no                         additional costs incurred in processing                   payment of the delinquent debt or other
                                             response from the provider, or we do                    and handling the debt pursuant to the                     satisfactory arrangement for payment is
                                             not reverse our initial disapproval of the              DCIA and § 1.1940(c) of the                               not made.74 Failure to pay regulatory
                                             provider’s revised count submission, the                Commission’s rules.69 These                               fees can also result in the initiation of
                                             fee payment must be based on the                        administrative processing charges will                    a proceeding to revoke any and all
                                             number of subscribers listed initially in               be assessed on any delinquent FY 2018                     authorizations held by the entity
                                             Fee Filer. Once the timeframe for                       regulatory fee, in addition to the 25                     responsible for paying the delinquent
                                             revision has passed, the telephone                      percent late charge penalty. In the case                  fee(s).75
                                             number counts are final and are the                     of partial payments (underpayments) of
                                             basis upon which CMRS regulatory fees                   regulatory fees, the payor will be given                  Effective Date
                                             are to be paid. Providers can view their                credit for the amount paid, but if it is                  6. Report and Order—FY 2018
                                             final telephone counts online in Fee                    later determined that the fee paid is                     Regulatory Fees
                                             Filer. A final CMRS assessment letter                   incorrect or not timely paid, then the 25
                                             will not be mailed out.                                                                                              30. Providing a 30-day period after
                                                                                                     percent late charge penalty (and other
                                                                                                                                                               Federal Register publication before this
                                                26. Because some carriers do not file                charges and/or sanctions, as
                                                                                                                                                               Report and Order becomes effective as
                                             the NRUF report, they may not see their                 appropriate) will be assessed on the
                                                                                                                                                               required by 5 U.S.C. 553(d) will not
                                             telephone number counts in Fee Filer.                   portion that is not paid in a timely
                                                                                                                                                               allow sufficient time to collect the FY
                                             In these instances, the carriers should                 manner.
                                                                                                        28. In addition to financial penalties,                2018 fees before FY 2018 ends on
                                             compute their fee payment using the                                                                               September 30, 2018. For this reason,
                                             standard methodology that is currently                  section 9(c)(3) of the Act,70 and
                                                                                                     § 1.1164(f) of the Commission’s rules 71                  pursuant to 5 U.S.C. 553(d)(3), we find
                                             in place for CMRS Wireless services                                                                               there is good cause to waive the
                                             (i.e., compute their telephone number                                                                             requirements of section 553(d), and this
                                                                                                       66 47  U.S.C. 159(c).
                                             counts as of December 31, 2017), and                      67 See                                                  Report and Order will become effective
                                                                                                               47 CFR 1.1910.
                                             submit their fee payment accordingly.                      68 Delinquent debt owed to the Commission              upon publication in the Federal
                                             Whether a carrier reviews its telephone                 triggers the ‘‘red light rule,’’ which places a hold on   Register. Because payments of the
                                             number counts in Fee Filer or not, the                  the processing of pending applications, fee offsets,      regulatory fees will not actually be due
                                             Commission reserves the right to audit                  and pending disbursement payments. 47 CFR
                                                                                                                                                               until late September, persons affected
                                             the number of telephone numbers for                     1.1910, 1.1911, 1.1912. In 2004, the Commission
                                                                                                     adopted rules implementing the requirements of the        by this Report and Order will still have
                                             which regulatory fees are paid. In the                  DCIA. See Amendment of Parts 0 and 1 of the               a reasonable period in which to make
                                             event that the Commission determines                    Commission’s Rules, MD Docket No. 02–339, Report          their payments and thereby comply
                                             that the number of telephone numbers                    and Order, 19 FCC Rcd 6540 (2004), 69 FR 27843
                                                                                                                                                               with the rules established herein.
                                             that are paid is inaccurate, the                        (May 17, 2004); 47 CFR part 1, subpart O, Collection
                                                                                                     of Claims Owed the United States.                         7. Order—Collection Costs for
                                             Commission will bill the carrier for the                   69 47 CFR 1.1940(c). As discussed in Part IV

                                                                                                     above, the amendment to § 1.1940(c) of the
                                                                                                                                                               Regulatory and Application Fees
                                                64 See Assessment and Collection of Regulatory       Commission’s rules that we adopt to reflect                  31. In our Order above, we amend
daltland on DSKBBV9HB2PROD with RULES




                                             Fees for Fiscal Year 2005, Report and Order and         amendments to the Communications Act by the
                                                                                                     RAY BAUM’S Act does not take effect until October
                                                                                                                                                               § 1.1940 of our rules and find that there
                                             Order on Reconsideration, 20 FCC Rcd 12259,
                                             12264, paragraphs 38–44 (2005).                         1, 2018. Therefore, the Commission will assess
                                                                                                                                                                 72 47 CFR 1.1164(a).
                                                65 In the supporting documentation, the provider     administrative processing charges for failure to
                                             will need to state a reason for the change, such as     timely pay FY 2019 regulatory fees, which are due           73 See, e.g., Cortaro Broadcasting Corp., Order to
                                             a purchase or sale of a subsidiary, the date of the     in September 2018.                                        Pay or Show Cause, 32 FCC Rcd 9336 (MB 2017).
                                                                                                        70 47 U.S.C. 159(c)(3).                                  74 See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
                                             transaction, and any other pertinent information
                                             that will help to justify a reason for the change.         71 47 CFR 1.1164(f).                                     75 47 U.S.C. 159.




                                        VerDate Sep<11>2014   16:42 Sep 17, 2018   Jkt 244001   PO 00000   Frm 00058   Fmt 4700   Sfmt 4700   E:\FR\FM\18SER1.SGM        18SER1


                                                                     Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations                                                                                        47085

                                             is good cause under 5 U.S.C. 553(b)(B)                                               Procedure Act.76 Similarly, under these                          effective date requirements and the
                                             to adopt the clarification without                                                   circumstances, we find that these                                clarification of § 1.1940 of our rules will
                                             following the notice and comment                                                     actions fall under the good cause                                become effective on October 1, 2018.
                                             procedures of the Administrative                                                     exemption to the 5 U.S.C. 553(d)                                 VII. Additional Tables
                                                                                                                                        TABLE 1—LIST OF COMMENTERS
                                                                                                                             Commenter                                                                                       Abbreviated name

                                             American Cable Assocation .....................................................................................................................              ACA.
                                             Astro Digital, US, Inc., Planet, Inc., and Spire Global, Inc ......................................................................                          Astro Digital, Planet, and Spire.
                                             CenturyLink, Inc .......................................................................................................................................     CenturyLink.
                                             DISH Network L.L.C. and AT&T Services, Inc ........................................................................................                          DISH and AT&T.
                                             Richard A. Golden ....................................................................................................................................       Golden.
                                             NCTA—The Internet and Television Association ....................................................................................                            NCTA.
                                             Satellite Industry Association ...................................................................................................................           SIA.
                                             Somos, Inc ...............................................................................................................................................   Somos.
                                             University Small-Satellite Researchers ....................................................................................................                  Small-Satellite Researchers.


                                                                                                                                 TABLE 2—LIST OF REPLY COMMENTERS
                                             AT&T Services, Inc ......................................................................................................................................................................      AT&T.
                                             CenturyLink, Inc ...........................................................................................................................................................................   CenturyLink.
                                             EchoStar Satellite Operating Corporation and Hughes Network Systems, LLC .........................................................................                                             EchoStar.
                                             NCTA—The Internet & Television Assocation and the American Cable Association .................................................................                                                 NCTA and ACA.



                                               Regulatory fees for the categories                                                 term of the license and are submitted at
                                             shaded in gray are collected by the                                                  the time the application is filed.
                                             Commission in advance to cover the
                                                                                   TABLE 3—CALCULATION OF FY 2018 REVENUE REQUIREMENTS AND PRO-RATA FEES
                                                                                                                                                                                    Pro-rated              Computed                Rounded
                                                                                                                                  FY 2018                       FY 2017                                                                             Expected
                                                                                                                                                                                     FY 2018                FY 2018                FY 2018
                                                                         Fee category                                             payment           Years       revenue                                                                             FY 2018
                                                                                                                                                                                     revenue               regulatory             regulatory
                                                                                                                                    units                       estimate                                                                            revenue
                                                                                                                                                                                   requirement                fee                    fee

                                             PLMRS (Exclusive Use) ........................................                                340         10           325,000              85,000                       25                       25        85,000
                                             PLMRS (Shared use) ............................................                            12,500         10         1,600,000           1,250,000                       10                       10     1,250,000
                                             Microwave .............................................................                     7,750         10         2,950,000           1,937,500                       25                       25     1,937,500
                                             Marine (Ship) .........................................................                     7,150         10         1,215,000           1,072,500                       15                       15     1,072,500
                                             Aviation (Aircraft) ...................................................                     4,000         10           420,000             400,000                       10                       10       400,000
                                             Marine (Coast) ......................................................                          75         10            60,000              30,000                       40                       40        30,000
                                             Aviation (Ground) ..................................................                        1,000         10           220,000             200,000                       20                       20       200,000
                                             AM Class A 1 .........................................................                         63          1           305,500             266,175                    4,214                  4,225         266,175
                                             AM Class B 1 .........................................................                      1,523          1         3,807,500           3,274,450                    2,162                  2,150       3,274,450
                                             AM Class C 1 .........................................................                        872          1         1,348,500           1,177,200                    1,352                   1,350      1,177,200
                                             AM Class D 1 .........................................................                      1,503          1         4,476,000           3,907,800                    2,592                  2,600       3,907,800
                                             FM Classes A, B1 & C3 1 .....................................                               3,166          1         9,371,250           8,152,450                    2,582                   2,575      8,152,450
                                             FM Classes B, C, C0, C1 & C2 1 ..........................                                   3,128          1        11,521,800          10,009,600                    3,203                  3,200      10,009,600
                                             AM Construction Permits 2 ....................................                                  9          1             5,550               4,950                      550                     550          4,950
                                             FM Construction Permits 2 ....................................                                109          1           110,740             105,185                      965                     965        105,185
                                             Satellite TV ............................................................                     126          1           217,350             189,000                    1,497                  1,500         189,000
                                             Digital TV Mkt 1–10 ..............................................                            144          1         8,305,250           7,164,000                   49,739                 49,750       7,164,000
                                             Digital TV Mkt 11–25 ............................................                             140          1         5,898,275           5,243,000                   37,455                 37,450       5,243,000
                                             Digital TV Mkt 26–50 ............................................                             189          1         5,439,050           4,729,725                   25,013                 25,025       4,729,725
                                             Digital TV Mkt 51–100 ..........................................                              290          1         4,267,875           3,617,750                   12,470                 12,475       3,617,750
                                             Digital TV Remaining Markets ..............................                                   389          1         1,807,475           1,594,900                    4,099                   4,100      1,594,900
                                             Digital TV Construction Permits 2 ..........................                                    3          1            14,775              12,300                    4,100                   4,100         12,300
                                             LPTV/Translators/Boosters/Class A TV ................                                       3,989          1         1,741,930           1,515,820                      378                     380      1,515,820
                                             CARS Stations ......................................................                          175          1           215,050             188,125                    1,068                   1,075        188,125
                                             Cable TV Systems, including IPTV .......................                               61,000,000          1        58,900,000          46,970,000                    .7658                      .77    46,970,000
                                             Direct Broadcast Satellite (DBS) ...........................                           32,000,000          1        12,350,000          15,360,000                     .480                      .48    15,360,000
                                             Interstate Telecommunication Service Providers                                    $34,600,000,000          1       111,740,000         100,686,000                0.002906                 0.00291     100,686,000
                                             Toll Free Numbers ................................................                     33,200,000          1         3,924,000           3,320,000                 0.10405                     0.10      3,320,000
                                             CMRS Mobile Services (Cellular/Public Mobile) ...                                     404,000,000          1        82,530,000          80,800,000                    0.195                    0.20     80,800,000
                                             CMRS Messag. Services ......................................                            1,000,000          1           168,000              80,000                   0.0800                  0.080          80,000
                                             BRS/ 3 ....................................................................                 1,175          1           696,000             567,050                      600                     600        705,000
                                             LMDS ....................................................................                     400          1           316,000             378,250                      600                     600        240,000
daltland on DSKBBV9HB2PROD with RULES




                                             Per Gbps circuit Int’l Bearer Circuits Terrestrial
                                                (Common and Non-Common) & Satellite
                                                (Common & Non-Common) ...............................                                    2,831          1          901,680                685,102                      176                  176        685,102
                                             Submarine Cable Providers (see chart in Table
                                                4) 4 .....................................................................               41.19          1         5,660,261            4,959,228                 120,405                120,400       4,959,035
                                             Earth Stations ........................................................                     3,400          1         1,224,000            1,105,000                     326                    325       1,105,000


                                                76 See    supra Section V.



                                        VerDate Sep<11>2014             16:42 Sep 17, 2018             Jkt 244001            PO 00000   Frm 00059    Fmt 4700   Sfmt 4700    E:\FR\FM\18SER1.SGM              18SER1


                                             47086                 Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations

                                                                   TABLE 3—CALCULATION OF FY 2018 REVENUE REQUIREMENTS AND PRO-RATA FEES—Continued
                                                                                                                                                                                      Pro-rated           Computed                    Rounded
                                                                                                                              FY 2018                                 FY 2017                                                                                 Expected
                                                                                                                                                                                       FY 2018             FY 2018                    FY 2018
                                                                       Fee category                                           payment                   Years         revenue                                                                                 FY 2018
                                                                                                                                                                                       revenue            regulatory                 regulatory
                                                                                                                                units                                 estimate                                                                                revenue
                                                                                                                                                                                     requirement             fee                        fee

                                             Space Stations (Geostationary) ............................                                        97              1      13,669,725      12,401,450                 127,839                    127,850          12,401,450
                                             Space Stations (Non-Geostationary) ....................                                             7              1         947,450         859,425                 122,776                    122,775             859,425
                                                ****** Total Estimated Revenue to be Col-
                                                   lected ..........................................................    ............................   ............   358,670,986     324,323,753      ........................   ........................   324,365,671
                                                     ****** Total Revenue Requirement ..........                        ............................   ............   356,710,992     322,035,000      ........................   ........................   322,035,000
                                                          Difference ........................................           ............................   ............     1,959,994       2,288,753      ........................   ........................     2,330,671
                                                Notes on Table 3:
                                                1 The fee amounts listed in the column entitled ‘‘Rounded New FY 2018 Regulatory Fee’’ constitute a weighted average broadcast regulatory fee by class of serv-
                                             ice. The actual FY 2018 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4.
                                                2 The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted, respectively, to set the regulatory fee to
                                             an amount no higher than the lowest licensed fee for that class of service. Reductions in the Digital (VHF/UHF) Construction Permit revenues, and in the AM and FM
                                             Construction Permit revenues, were offset by increases in the revenue totals for Digital television stations by market size, and in the AM and FM radio stations by
                                             class size and population served, respectively.
                                                3 MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission’s Rules to Facilitate the
                                             Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150–2162 and 2500–2690 MHz Bands, Report & Order and Fur-
                                             ther Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, paragraph 6 (2004), 69 FR 72048 (Dec. 10, 2004).
                                                4 The chart at the end of Table 4 lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from the adoption of
                                             the Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Report and Order and Further Notice of Proposed Rulemaking, 24 FCC Rcd 6388 (2008), 73
                                             FR 5028 (Aug. 26, 2008) and Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd 4208 (2009), 74 FR
                                             22104 (May 12, 2009).


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

                                                                                                                              TABLE 4—FY 2018 REGULATORY FEES
                                                                                                                                                                                                                                                            Annual
                                                                                                                                           Fee category                                                                                                  regulatory fee
                                                                                                                                                                                                                                                           (U.S. $’s)

                                             PLMRS (per license) (Exclusive Use) (47 CFR part 90) ................................................................................................................                                                     25
                                             Microwave (per license) (47 CFR part 101) ....................................................................................................................................                                            25
                                             Marine (Ship) (per station) (47 CFR part 80) ..................................................................................................................................                                           15
                                             Marine (Coast) (per license) (47 CFR part 80) ...............................................................................................................................                                             40
                                             Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category) .......................................................................                                                                   10
                                             PLMRS (Shared Use) (per license) (47 CFR part 90) ....................................................................................................................                                                    10
                                             Aviation (Aircraft) (per station) (47 CFR part 87) ............................................................................................................................                                           10
                                             Aviation (Ground) (per license) (47 CFR part 87) ...........................................................................................................................                                              20
                                             CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90) ...................................................................                                                                    .20
                                             CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90) ......................................................................................                                                               .08
                                             Broadband Radio Service (formerly MMDS/MDS) (per license) (47 CFR part 27) ........................................................................                                                                     600
                                             Local Multipoint Distribution Service (per call sign) (47 CFR part 101) .........................................................................................                                                       600
                                             AM Radio Construction Permits ......................................................................................................................................................                                    550
                                             FM Radio Construction Permits ......................................................................................................................................................                                    965
                                             Digital TV (47 CFR part 73) VHF and UHF Commercial:
                                                  Markets 1–10 ............................................................................................................................................................................                      49,750
                                                  Markets 11–25 ..........................................................................................................................................................................                       37,450
                                                  Markets 26–50 ..........................................................................................................................................................................                       25,025
                                                  Markets 51–100 ........................................................................................................................................................................                        12,475
                                                  Remaining Markets ...................................................................................................................................................................                            4,100
                                                  Construction Permits ................................................................................................................................................................                            4,100
                                             Satellite Television Stations (All Markets) .......................................................................................................................................                                   1,500
                                             Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74) .............................................................................                                                                   380
                                             CARS (47 CFR part 78) ..................................................................................................................................................................                              1,075
                                             Cable Television Systems (per subscriber) (47 CFR part 76), Including IPTV ..............................................................................                                                                .77
                                             Direct Broadcast Service (DBS) (per subscriber) (as defined by section 602(13) of the Act) .......................................................                                                                      .48
                                             Interstate Telecommunication Service Providers (per revenue dollar) ...........................................................................................                                                     .00291
                                             Toll Free (per toll free subscriber) (47 CFR 52.101(f) of the rules) ................................................................................................                                                   .10
                                             Earth Stations (47 CFR part 25) .....................................................................................................................................................                                   325
                                             Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational
                                                station) (47 CFR part 100) ...........................................................................................................................................................                        127,850
daltland on DSKBBV9HB2PROD with RULES




                                             Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) .................................................................                                                            122,775
                                             International Bearer Circuits—Terrestrial/Satellites (per Gbps circuit) ...........................................................................................                                                  176
                                             Submarine Cable Landing Licenses Fee (per cable system) .........................................................................................................                                        See Table Below




                                        VerDate Sep<11>2014           16:42 Sep 17, 2018           Jkt 244001          PO 00000        Frm 00060          Fmt 4700    Sfmt 4700   E:\FR\FM\18SER1.SGM         18SER1


                                                                  Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations                                                                                         47087

                                                                                                                 FY 2018 RADIO STATION REGULATORY FEES
                                                                                                                                                                                                                                                FM Classes
                                                                                                                                                                                                                        FM Classes
                                                              Population served                                 AM Class A                AM Class B                AM Class C                AM Class D                                         B, C, C0,
                                                                                                                                                                                                                        A, B1 & C3               C1 & C2

                                             <=25,000 ..................................................                    $880                      $635                      $550                    $605                       $965              $1,100
                                             25,001–75,000 .........................................                      $1,325                      $950                     $825                      $910                    $1,450              $1,650
                                             75,001–150,000 .......................................                       $1,975                    $1,425                    $1,250                   $1,350                    $2,175              $2,475
                                             150,001–500,000 .....................................                        $2,975                    $2,150                    $1,850                   $2,050                    $3,250              $3,725
                                             500,001–1,200,000 ..................................                         $4,450                    $3,225                    $2,775                   $3,050                    $4,875              $5,575
                                             1,200,001–3,000,00 .................................                         $6,700                    $4,825                    $4,175                   $4,600                    $7,325              $8,350
                                             3,000,001–6,000,00 .................................                        $10,025                    $7,225                    $6,275                   $6,900                   $11,000             $12,525
                                             >6,000,000 ...............................................                  $15,050                   $10,850                    $9,400                  $10,325                   $16,500             $18,800


                                                                                       FY 2018 INTERNATIONAL BEARER CIRCUITS—SUBMARINE CABLE SYSTEMS
                                                                                                                       Submarine cable systems                                                                                                  Fee amount
                                                                                                                  (capacity as of December 31, 2017)                                                                                            for FY 2018

                                             Less than 50 Gbps ..............................................................................................................................................................................        $9,850
                                             50 Gbps or greater, but less than 250 Gbps ......................................................................................................................................                       19,725
                                             250 Gbps or greater, but less than 1,000 Gbps .................................................................................................................................                         39,425
                                             1,000 Gbps or greater, but less than 4,000 Gbps ..............................................................................................................................                          78,875
                                             4,000 Gbps or greater .........................................................................................................................................................................        157,750



                                             Table 5—Sources of Payment Unit                                          System (CDBS) and Cable Operations                                        payment units cannot yet be estimated
                                             Estimates for FY 2018                                                    and Licensing System (COALS), as well                                     with sufficient accuracy. These include
                                                                                                                      as reports generated within the                                           an unknown number of waivers and/or
                                               In order to calculate individual                                       Commission such as the Wireless                                           exemptions that may occur in FY 2018
                                             service fees for FY 2018, we adjusted FY                                 Telecommunications Bureau’s                                               and the fact that, in many services, the
                                             2017 payment units for each service to                                   Numbering Resource Utilization                                            number of actual licensees or station
                                             more accurately reflect expected FY                                      Forecast.                                                                 operators fluctuates from time to time
                                             2018 payment liabilities. We obtained                                       We sought verification for these                                       due to economic, technical, or other
                                             our updated estimates through a variety                                  estimates from multiple sources and, in                                   reasons. When we note, for example,
                                             of means. For example, we used                                           all cases, we compared FY 2018                                            that our estimated FY 2018 payment
                                             Commission licensee data bases, actual                                   estimates with actual FY 2017 payment                                     units are based on FY 2017 actual
                                             prior year payment records and industry                                  units to ensure that our revised                                          payment units, it does not necessarily
                                             and trade association projections when                                   estimates were reasonable. Where                                          mean that our FY 2018 projection is
                                             available. The databases we consulted                                    appropriate, we adjusted and/or                                           exactly the same number as in FY 2017.
                                             include our Universal Licensing System                                   rounded our final estimates to take into                                  We have either rounded the FY 2018
                                             (ULS), International Bureau Filing                                       consideration the fact that certain                                       number or adjusted it slightly to account
                                             System (IBFS), Consolidated Database                                     variables that impact on the number of                                    for these variables.

                                                              Fee category                                                                                  Sources of payment unit estimates

                                             Land Mobile (All), Microwave, Ma-                        Based on Wireless Telecommunications Bureau (WTB) projections of new applications and renewals tak-
                                                rine (Ship & Coast), Aviation (Air-                     ing into consideration existing Commission licensee data bases. Aviation (Aircraft) and Marine (Ship) es-
                                                craft & Ground), Domestic Public                        timates have been adjusted to take into consideration the licensing of portions of these services on a
                                                Fixed.                                                  voluntary basis.
                                             CMRS Cellular/Mobile Services ......                     Based on WTB projection reports, and FY 17 payment data.
                                             CMRS Messaging Services ............                     Based on WTB reports, and FY 17 payment data.
                                             AM/FM Radio Stations ....................                Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment units.
                                             Digital TV Stations ..........................           Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment units.
                                             (Combined VHF/UHF units) ............
                                             AM/FM/TV Construction Permits ....                       Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment units.
                                             LPTV, Translators and Boosters,                          Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment units.
                                                Class A Television.
                                             BRS (formerly MDS/MMDS) ...........                      Based on WTB reports and actual FY 2017 payment units.
                                             LMDS ..............................................      Based on WTB reports and actual FY 2017 payment units.
                                             Cable Television Relay Service                           Based on data from Media Bureau’s COALS database and actual FY 2017 payment units.
                                                (CARS) Stations.
                                             Cable Television System Sub-                             Based on publicly available data sources for estimated subscriber counts and actual FY 2017 payment
                                                scribers, Including IPTV Sub-                           units.
daltland on DSKBBV9HB2PROD with RULES




                                                scribers.
                                             Interstate Telecommunication Serv-                       Based on FCC Form 499–Q data for the four quarters of calendar year 2017, the Wireline Competition Bu-
                                                ice Providers.                                          reau projected the amount of calendar year 2017 revenue that will be reported on 2018 FCC Form 499–
                                                                                                        A worksheets due in April, 2018.
                                             Earth Stations .................................         Based on International Bureau (‘‘IB’’) licensing data and actual FY 2017 payment units.
                                             Space Stations (GSOs & NGSOs)                            Based on IB data reports and actual FY 2017 payment units.
                                             International Bearer Circuits ...........                Based on IB reports and submissions by licensees, adjusted as necessary.



                                        VerDate Sep<11>2014        16:42 Sep 17, 2018         Jkt 244001      PO 00000       Frm 00061        Fmt 4700      Sfmt 4700      E:\FR\FM\18SER1.SGM              18SER1


                                             47088                Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations

                                                              Fee category                                                                                   Sources of payment unit estimates

                                             Submarine Cable Licenses .............                   Based on IB license information.


                                                       TABLE 6—FACTORS, MEASUREMENTS, AND CALCULATIONS THAT DETERMINE STATION SIGNAL CONTOURS AND
                                                                                   ASSOCIATED POPULATION COVERAGES
                                             AM Stations:
                                                     For stations with nondirectional daytime antennas, the theoretical radiation was used at all azimuths. For stations with directional day-
                                                       time antennas, specific information on each day tower, including field ratio, phase, spacing, and orientation was retrieved, as well as
                                                       the theoretical pattern root-mean-square of the radiation in all directions in the horizontal plane (RMS) figure (milliVolt per meter (mV/
                                                       m) @1 km) for the antenna system. The standard, or augmented standard if pertinent, horizontal plane radiation pattern was cal-
                                                       culated using techniques and methods specified in §§ 73.150 and 73.152 of the Commission’s rules. Radiation values were cal-
                                                       culated for each of 360 radials around the transmitter site. Next, estimated soil conductivity data was retrieved from a database rep-
                                                       resenting the information in FCC Figure R3. Using the calculated horizontal radiation values, and the retrieved soil conductivity data,
                                                       the distance to the principal community (5 mV/m) contour was predicted for each of the 360 radials. The resulting distance to prin-
                                                       cipal community contours were used to form a geographical polygon. Population counting was accomplished by determining which
                                                       2010 block centroids were contained in the polygon. (A block centroid is the center point of a small area containing population as
                                                       computed by the U.S. Census Bureau.) The sum of the population figures for all enclosed blocks represents the total population for
                                                       the predicted principal community coverage area.
                                             FM Stations:
                                                     The greater of the horizontal or vertical effective radiated power (ERP) (kW) and respective height above average terrain (HAAT) (m)
                                                       combination was used. Where the antenna height above mean sea level (HAMSL) was available, it was used in lieu of the average
                                                       HAAT figure to calculate specific HAAT figures for each of 360 radials under study. Any available directional pattern information was
                                                       applied as well, to produce a radial-specific ERP figure. The HAAT and ERP figures were used in conjunction with the Field Strength
                                                       (50–50) propagation curves specified in 47 CFR 73.313 of the Commission’s rules to predict the distance to the principal community
                                                       (70 dBu (decibel above 1 microVolt per meter) or 3.17 mV/m) contour for each of the 360 radials. The resulting distance to principal
                                                       community contours were used to form a geographical polygon. Population counting was accomplished by determining which 2010
                                                       block centroids were contained in the polygon. The sum of the population figures for all enclosed blocks represents the total popu-
                                                       lation for the predicted principal community coverage area.



                                             Table 7—FY 2017 Schedule of                                               Commission in advance to cover the
                                             Regulatory Fees                                                           term of the license and are submitted at
                                               Regulatory fees for the categories                                      the time the application is filed.
                                             shaded in gray are collected by the

                                                                                                                                                                                                                                                 Annual
                                                                                                                                 Fee category                                                                                                 regulatory fee
                                                                                                                                                                                                                                                (U.S. $s)

                                             PLMRS (per license) (Exclusive Use) (47 CFR part 90) ................................................................................................................                                          25
                                             Microwave (per license) (47 CFR part 101) ....................................................................................................................................                                 25
                                             Marine (Ship) (per station) (47 CFR part 80) ..................................................................................................................................                                15
                                             Marine (Coast) (per license) (47 CFR part 80) ...............................................................................................................................                                  40
                                             Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category) .......................................................................                                                        10
                                             PLMRS (Shared Use) (per license) (47 CFR part 90) ....................................................................................................................                                         10
                                             Aviation (Aircraft) (per station) (47 CFR part 87) ............................................................................................................................                                10
                                             Aviation (Ground) (per license) (47 CFR part 87) ...........................................................................................................................                                   20
                                             CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90) ...................................................................                                                         .21
                                             CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90) ......................................................................................                                                   .08
                                             Broadband Radio Service (formerly MMDS/MDS) (per license) (47 CFR part 27) ........................................................................                                                          800
                                             Local Multipoint Distribution Service (per call sign) (47 CFR part 101) .........................................................................................
                                             800.
                                             AM Radio Construction Permits ......................................................................................................................................................                         555
                                             FM Radio Construction Permits ......................................................................................................................................................                         980
                                             Digital TV (47 CFR part 73) VHF and UHF Commercial:
                                                  Markets 1–10 ............................................................................................................................................................................           59,750
                                                  Markets 11–25 ..........................................................................................................................................................................            45,025
                                                  Markets 26–50 ..........................................................................................................................................................................            30,050
                                                  Markets 51–100 ........................................................................................................................................................................             14,975
                                                  Remaining Markets ...................................................................................................................................................................                 4,925
                                                  Construction Permits ................................................................................................................................................................                 4,925
                                             Satellite Television Stations (All Markets) .......................................................................................................................................                        1,725
                                             Low Power TV, Class A TV, TV/FM Trans. & Boosters (47 CFR part 74) ....................................................................................                                                      430
                                             CARS (47 CFR part 78) ..................................................................................................................................................................                     935
daltland on DSKBBV9HB2PROD with RULES




                                             Cable Television Systems (per subscriber) (47 CFR part 76), including IPTV ..............................................................................                                                    .95
                                             Direct Broadcast Service (DBS) (per subscriber) (as defined by section 602(13) of the Act) .......................................................                                                           .38
                                             Interstate Telecommunication Service Providers (per revenue dollar) ...........................................................................................                                          .00302
                                             Toll Free (per toll free subscriber) (47 CFR 52.101(f) of the rules) ................................................................................................                                        .12
                                             Earth Stations (47 CFR part 25) .....................................................................................................................................................                        360
                                             Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational
                                                station) (47 CFR part 100) ...........................................................................................................................................................               140,925



                                        VerDate Sep<11>2014         16:42 Sep 17, 2018         Jkt 244001      PO 00000       Frm 00062       Fmt 4700       Sfmt 4700      E:\FR\FM\18SER1.SGM              18SER1


                                                                  Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations                                                                                               47089

                                                                                                                                                                                                                                                      Annual
                                                                                                                                    Fee category                                                                                                   regulatory fee
                                                                                                                                                                                                                                                     (U.S. $s)

                                             Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) .................................................................                                                        135,350
                                             International Bearer Circuits—Terrestrial/Satellites (per 64KB circuit) ...........................................................................................                                               .03
                                             Submarine Cable Landing Licenses Fee (per cable system) .........................................................................................................                                    See Table Below


                                                                                                                   FY 2017 RADIO STATION REGULATORY FEES
                                                                                                                                                                                                                                       FM Class-       FM Class-
                                                                                                                                                    AM Class             AM Class             AM Class             AM Class                es             es
                                                                                Population served                                                      A                    B                    C                    D                 A, B1 &        B, C, C0,
                                                                                                                                                                                                                                          C3            C1 & C2

                                             <=25,000 ......................................................................................               $895                 $640                 $555                 $610                 $980        $1,100
                                             25,001–75,000 .............................................................................                  1,350                  955                   830                  915                1,475        1,650
                                             75,001–150,000 ...........................................................................                   2,375                1,700                 1,475                1,600                2,600        2,925
                                             150,001–500,000 .........................................................................                    3,550                2,525                 2,200                2,425                3,875        4,400
                                             500,001–1,200,000 ......................................................................                     5,325                3,800                 3,300                3,625                5,825        6,575
                                             1,200,001–3,000,00 .....................................................................                     7,975                5,700                 4,950                5,425                8,750        9,875
                                             3,000,001–6,000,00 .....................................................................                    11,950                8,550                 7,400                8,150               13,100       14,800
                                             >6,000,000 ...................................................................................              17,950               12,825                11,100               12,225               19,650       22,225


                                                                               FY 2017 REGULATORY FEES INTERNATIONAL BEARER CIRCUITS—SUBMARINE CABLE
                                                                                                                       Submarine cable systems                                                                                                      Fee amount
                                                                                                                  (capacity as of December 31, 2016)

                                             <2.5 Gbps ........................................................................................................................................................................................            $8,600
                                             2.5 Gbps or greater, but less than 5 Gbps .....................................................................................................................................                               17,175
                                             5 Gbps or greater, but less than 10 Gbps ......................................................................................................................................                               34,350
                                             10 Gbps or greater, but less than 20 Gbps ....................................................................................................................................                                68,725
                                             20 Gbps or greater ..........................................................................................................................................................................                137,425



                                             VIII. Final Regulatory Flexibility                                          section 9 of the Communications Act,                                        addition, the term ‘‘small business’’ has
                                             Analysis                                                                    regulatory fees are mandated by                                             the same meaning as the term ‘‘small
                                                                                                                         Congress and collected to recover the                                       business concern’’ under the Small
                                               32. As required by the Regulatory
                                                                                                                         regulatory costs associated with the                                        Business Act.84 A ‘‘small business
                                             Flexibility Act of 1980, as amended
                                                                                                                         Commission’s enforcement, policy and                                        concern’’ is one which: (1) Is
                                             (RFA),77 an Initial Regulatory Flexibility
                                                                                                                         rulemaking, user information, and                                           independently owned and operated; (2)
                                             Analysis (IRFA) was included in the
                                                                                                                         international activities in an amount                                       is not dominant in its field of operation;
                                             Notice of Proposed Rulemaking
                                                                                                                         that can be reasonably expected to equal                                    and (3) satisfies any additional criteria
                                             (NPRM).78 The Commission sought
                                                                                                                         the amount of the Commission’s annual                                       established by the SBA.85 Nationwide,
                                             written public comment on these                                             appropriation.81 This Report and Order                                      there are a total of approximately 27.9
                                             proposals including comment on the                                          adopts the regulatory fees proposed in                                      million small businesses, according to
                                             IRFA. This Final Regulatory Flexibility                                     the Notice of Proposed Rulemaking.                                          the SBA.86
                                             Analysis (FRFA) conforms to the                                                                                                                            36. Wired Telecommunications
                                             IRFA.79                                                                     B. Summary of the Significant Issues                                        Carriers. The U.S. Census Bureau
                                                                                                                         Raised by the Public Comments in                                            defines this industry as ‘‘establishments
                                             A. Need for, and Objectives of, the                                         Response to the IRFA
                                             Report and Order                                                                                                                                        primarily engaged in operating and/or
                                                                                                                           34. None.                                                                 providing access to transmission
                                               33. In this Report and Order we adopt                                                                                                                 facilities and infrastructure that they
                                             our proposal in the Notice of Proposed                                      C. Description and Estimate of the
                                                                                                                         Number of Small Entities to Which the                                       own and/or lease for the transmission of
                                             Rulemaking on collecting $322,035,000                                                                                                                   voice, data, text, sound, and video using
                                             in regulatory fees for FY 2018, pursuant                                    Rules Will Apply
                                                                                                                                                                                                     wired communications networks.
                                             to section 9 of the Communications Act                                         35. The RFA directs agencies to
                                             of 1934, as amended (Communications                                         provide a description of, and where                                           84 5 U.S.C. 601(3) (incorporating by reference the

                                             Act or Act).80 These regulatory fees will                                   feasible, an estimate of the number of                                      definition of ‘‘small-business concern’’ in the Small
                                             be due in September 2018. Under                                             small entities that may be affected by                                      Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C.
                                                                                                                                                                                                     601(3), the statutory definition of a small business
                                                                                                                         the proposed rules and policies, if                                         applies ‘‘unless an agency, after consultation with
                                               77 5 U.S.C. 603. The RFA, 5 U.S.C. 601–612 has                            adopted.82 The RFA generally defines                                        the Office of Advocacy of the Small Business
                                             been amended by the Small Business Regulatory                               the term ‘‘small entity’’ as having the                                     Administration and after opportunity for public
daltland on DSKBBV9HB2PROD with RULES




                                             Enforcement Fairness Act of 1996 (SBREFA), Public                           same meaning as the terms ‘‘small                                           comment, establishes one or more definitions of
                                             Law Number 104–121, Title II, 110 Stat. 847 (1996).                                                                                                     such term which are appropriate to the activities of
                                               78 Assessment and Collection of Regulatory Fees
                                                                                                                         business,’’ ‘‘small organization,’’ and
                                                                                                                                                                                                     the agency and publishes such definition(s) in the
                                             for Fiscal Year 2017, Report and Order and Further                          ‘‘small governmental jurisdiction.’’ 83 In                                  Federal Register.’’
                                             Notice of Proposed Rulemaking, 32 FCC Rcd 7057                                                                                                            85 15 U.S.C. 632.
                                             (2017), 82 FR 50598 (Nov. 1, 2017).                                            81 47 U.S.C. 159(a).                                                       86 See SBA, Office of Advocacy, ‘‘Frequently
                                               79 5 U.S.C. 604.                                                             82 5 U.S.C. 603(b)(3).                                                   Asked Questions,’’ https://www.sba.gov/sites/
                                               80 47 U.S.C. 159.                                                            83 5 U.S.C. 601(6).                                                      default/files/advocacy/SB-FAQ-2016_WEB.pdf.



                                        VerDate Sep<11>2014         16:42 Sep 17, 2018          Jkt 244001      PO 00000        Frm 00063       Fmt 4700       Sfmt 4700       E:\FR\FM\18SER1.SGM              18SER1


                                             47090            Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations

                                             Transmission facilities may be based on                 Of this total, 3,083 operated with fewer              service, competitive access providers,
                                             a single technology or a combination of                 than 1,000 employees.93 Consequently,                 Shared-Tenant Service Providers, and
                                             technologies. Establishments in this                    the Commission estimates that most                    Other Local Service Providers are small
                                             industry use the wired                                  providers of incumbent local exchange                 entities.
                                             telecommunications network facilities                   service are small businesses that may be                 40. Interexchange Carriers (IXCs).
                                             that they operate to provide a variety of               affected by the rules and policies
                                                                                                                                                           Neither the Commission nor the SBA
                                             services, such as wired telephony                       adopted. Three hundred and seven (307)
                                                                                                                                                           has developed a definition for
                                             services, including VoIP services, wired                Incumbent Local Exchange Carriers
                                             (cable) audio and video programming                     reported that they were incumbent local               Interexchange Carriers. The closest
                                             distribution, and wired broadband                       exchange service providers.94 Of this                 NAICS code category is Wired
                                             internet services. By exception,                        total, an estimated 1,006 have 1,500 or               Telecommunications Carriers as defined
                                             establishments providing satellite                      fewer employees.95                                    in paragraph 6 of this FRFA. The
                                             television distribution services using                     39. Competitive Local Exchange                     applicable size standard under SBA
                                             facilities and infrastructure that they                 Carriers (Competitive LECs),                          rules is that such a business is small if
                                             operate are included in this                            Competitive Access Providers (CAPs),                  it has 1,500 or fewer employees.103 U.S.
                                             industry.’’ 87 The SBA has developed a                  Shared-Tenant Service Providers, and                  Census data for 2012 indicates that
                                             small business size standard for Wired                  Other Local Service Providers. Neither                3,117 firms operated during that year.
                                             Telecommunications Carriers, which                      the Commission nor the SBA has                        Of that number, 3,083 operated with
                                             consists of all such companies having                   developed a small business size                       fewer than 1,000 employees.104
                                             1,500 or fewer employees.88 Census data                 standard specifically for these service               According to internally developed
                                             for 2012 shows that there were 3,117                    providers. The appropriate NAICS code                 Commission data, 359 companies
                                             firms that operated that year. Of this                  category is Wired Telecommunications                  reported that their primary
                                             total, 3,083 operated with fewer than                   Carriers, as defined in paragraph 6 of                telecommunications service activity was
                                             1,000 employees.89 Thus, under this                     this FRFA. Under that size standard,                  the provision of interexchange
                                             size standard, most firms in this                       such a business is small if it has 1,500              services.105 Of this total, an estimated
                                             industry can be considered small.                       or fewer employees.96 U.S. Census data                317 have 1,500 or fewer employees.106
                                                37. Local Exchange Carriers (LECs).                  for 2012 indicate that 3,117 firms                    Consequently, the Commission
                                             Neither the Commission nor the SBA                      operated during that year. Of that                    estimates that most interexchange
                                             has developed a size standard for small                 number, 3,083 operated with fewer than                service providers are small entities that
                                             businesses specifically applicable to                   1,000 employees.97 Based on this data,                may be affected by the rules adopted.
                                             local exchange services. The closest                    the Commission concludes that most
                                             applicable NAICS code category is                       Competitive LECS, CAPs, Shared-                          41. Prepaid Calling Card Providers.
                                             Wired Telecommunications Carriers as                    Tenant Service Providers, and Other                   Neither the Commission nor the SBA
                                             defined in paragraph 6 of this FRFA.                    Local Service Providers, are small                    has developed a small business
                                             Under the applicable SBA size standard,                 entities. According to Commission data,               definition specifically for prepaid
                                             such a business is small if it has 1,500                1,442 carriers reported that they were                calling card providers. The most
                                             or fewer employees.90 According to                      engaged in the provision of either                    appropriate NAICS code-based category
                                             Commission data, census data for 2012                   competitive local exchange services or                for defining prepaid calling card
                                             shows that there were 3,117 firms that                  competitive access provider services.98               providers is Telecommunications
                                             operated that year. Of this total, 3,083                Of these 1,442 carriers, an estimated                 Resellers. This industry comprises
                                             operated with fewer than 1,000                          1,256 have 1,500 or fewer employees.99                establishments engaged in purchasing
                                             employees.91 The Commission therefore                   In addition, 17 carriers have reported                access and network capacity from
                                             estimates that most providers of local                  that they are Shared-Tenant Service                   owners and operators of
                                             exchange carrier service are small                      Providers, and all 17 are estimated to                telecommunications networks and
                                             entities that may be affected by the rules              have 1,500 or fewer employees.100 Also,               reselling wired and wireless
                                             adopted.                                                72 carriers have reported that they are               telecommunications services (except
                                                38. Incumbent LECs. Neither the                      Other Local Service Providers.101 Of this             satellite) to businesses and households.
                                             Commission nor the SBA has developed                    total, 70 have 1,500 or fewer                         Establishments in this industry resell
                                             a small business size standard                          employees.102 Consequently, based on                  telecommunications; they do not
                                             specifically for incumbent local                        internally researched FCC data, the                   operate transmission facilities and
                                             exchange services. The closest                          Commission estimates that most                        infrastructure. Mobile virtual networks
                                             applicable NAICS code category is                       providers of competitive local exchange               operators (MVNOs) are included in this
                                             Wired Telecommunications Carriers as                                                                          industry.107 Under the applicable SBA
                                             defined in paragraph 6 of this FRFA.                      93 http://factfinder.census.gov/faces/
                                                                                                                                                           size standard, such a business is small
                                             Under that size standard, such a                        tableservices/jsf/pages/productview.xhtml?
                                                                                                     pid=ECN_2012_US_51SSSZ5&prodType=table.               if it has 1,500 or fewer employees.108
                                             business is small if it has 1,500 or fewer                94 See Trends in Telephone Service, Federal         U.S. Census data for 2012 show that
                                             employees.92 According to Commission                    Communications Commission, Wireline                   1,341 firms provided resale services
                                             data, 3,117 firms operated in that year.                Competition Bureau, Industry Analysis and
                                                                                                                                                           during that year. Of that number, 1,341
                                                                                                     Technology Division at Table 5.3 (September 2010)
                                               87 http://www.census.gov/cgi-bin/sssd/naics/          (Trends in Telephone Service).                        operated with fewer than 1,000
                                                                                                       95 Id.
                                             naicsrch.
                                                                                                       96 13 CFR 121.201, NAICS code 517110.                 103 13
                                               88 See 13 CFR 120.201, NAICS code 517110.                                                                              CFR 121.201, NAICS code 517110.
daltland on DSKBBV9HB2PROD with RULES




                                               89 http://factfinder.census.gov/faces/                  97 http://factfinder.census.gov/faces/                104 http://factfinder.census.gov/faces/

                                             tableservices/jsf/pages/productview.xhtml?              tableservices/jsf/pages/productview.xhtml?            tableservices/jsf/pages/productview.xhtml?
                                             pid=ECN_2012_US_51SSSZ5&prodType=table.                 pid=ECN_2012_US_51SSSZ5&prodType=table.               pid=ECN_2012_US_51SSSZ5&prodType=table.
                                               90 13 CFR 121.201, NAICS code 517110.                   98 See Trends in Telephone Service, at Table 5.3.     105 See Trends in Telephone Service, at Table 5.3.

                                               91 http://factfinder.census.gov/faces/                  99 Id.                                                106 Id.
                                                                                                       100 Id.
                                             tableservices/jsf/pages/productview.xhtml?                                                                      107 http://www.census.gov/cgi-bin/ssd/naics/

                                             pid=ECN_2012_US_51SSSZ5&prodType=table.                   101 Id.                                             naicsrch.
                                               92 13 CFR 121.201, NAICS code 517110.                   102 Id.                                               108 13 CFR 121.201, NAICS code 517911.




                                        VerDate Sep<11>2014   16:42 Sep 17, 2018   Jkt 244001   PO 00000   Frm 00064   Fmt 4700   Sfmt 4700   E:\FR\FM\18SER1.SGM     18SER1


                                                              Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations                                                  47091

                                             employees.109 Thus, under this category                 category and the associated small                       were 967 firms that operated for the
                                             and the associated small business size                  business size standard, the majority of                 entire year. Of this total, 955 firms had
                                             standard, the majority of these prepaid                 these resellers can be considered small                 fewer than 1,000 employees. Thus,
                                             calling card providers can be considered                entities. According to Commission data,                 under this category and the associated
                                             small entities. According to Commission                 881 carriers have reported that they are                size standard, the Commission estimates
                                             data, 193 carriers have reported that                   engaged in the provision of toll resale                 that the majority of wireless
                                             they are engaged in the provision of                    services.119 Of this total, an estimated                telecommunications carriers (except
                                             prepaid calling cards.110 All 193 carriers              857 have 1,500 or fewer employees.120                   satellite) are small entities. Similarly,
                                             have 1,500 or fewer employees.111                       Consequently, the Commission                            according to internally developed
                                             Consequently, the Commission                            estimates that the majority of toll                     Commission data, 413 carriers reported
                                             estimates that the majority of prepaid                  resellers are small entities.                           that they were engaged in the provision
                                             calling card providers are small entities                 44. Other Toll Carriers. Neither the                  of wireless telephony, including cellular
                                             that may be affected by the rules                       Commission nor the SBA has developed                    service, Personal Communications
                                             adopted.                                                a definition for small businesses                       Service (PCS), and Specialized Mobile
                                                42. Local Resellers. Neither the                     specifically applicable to Other Toll                   Radio (SMR) services.126 Of this total,
                                             Commission nor the SBA has developed                    Carriers. This category includes toll                   an estimated 261 have 1,500 or fewer
                                             a small business size standard                          carriers that do not fall within the                    employees.127 Thus, using available
                                             specifically for Local Resellers. The SBA               categories of interexchange carriers,                   data, we estimate that the majority of
                                             has developed a small business size                     operator service providers, prepaid                     wireless firms can be considered small.
                                             standard for the category of                            calling card providers, satellite service                  46. Television Broadcasting. This
                                             Telecommunications Resellers. Under                     carriers, or toll resellers. The closest                Economic Census category ‘‘comprises
                                             that size standard, such a business is                  applicable NAICS code category is for                   establishments primarily engaged in
                                             small if it has 1,500 or fewer                          Wired Telecommunications Carriers as                    broadcasting images together with
                                             employees.112 Census data for 2012                      defined in paragraph 6 of this FRFA.                    sound. These establishments operate
                                             show that 1,341 firms provided resale                   Under the applicable SBA size standard,                 television broadcasting studios and
                                             services during that year. Of that                      such a business is small if it has 1,500                facilities for the programming and
                                             number, 1,341 operated with fewer than                  or fewer employees.121 Census data for                  transmission of programs to the
                                             1,000 employees.113 Under this category                 2012 shows that there were 3,117 firms                  public.’’ 128 These establishments also
                                             and the associated small business size                  that operated that year. Of this total,                 produce or transmit visual programming
                                             standard, the majority of these local                   3,083 operated with fewer than 1,000                    to affiliated broadcast television
                                             resellers can be considered small                       employees.122 Thus, under this category                 stations, which in turn broadcast the
                                             entities. According to Commission data,                 and the associated small business size                  programs to the public on a
                                             213 carriers have reported that they are                standard, most Other Toll Carriers can                  predetermined schedule. Programming
                                             engaged in the provision of local resale                be considered small. According to                       may originate in their own studio, from
                                             services.114 Of this total, an estimated                internally developed Commission data,                   an affiliated network, or from external
                                             211 have 1,500 or fewer employees.115                   284 companies reported that their                       sources. The SBA has created the
                                             Consequently, the Commission                            primary telecommunications service                      following small business size standard
                                             estimates that the majority of local                    activity was the provision of other toll                for Television Broadcasting firms: those
                                             resellers are small entities that may be                carriage.123 Of these, an estimated 279                 having $38.5 million or less in annual
                                             affected by the rules adopted.                          have 1,500 or fewer employees.124
                                                                                                                                                             receipts.129 The 2012 Economic Census
                                                43. Toll Resellers. The Commission                   Consequently, the Commission
                                             has not developed a definition for Toll                                                                         reports that 751 television broadcasting
                                                                                                     estimates that most Other Toll Carriers
                                             Resellers. The closest NAICS code                                                                               firms operated during that year. Of that
                                                                                                     are small entities.
                                             Category is Telecommunications                            45. Wireless Telecommunications                       number, 656 had annual receipts of less
                                             Resellers, and the SBA has developed a                  Carriers (except Satellite). This industry              than $25 million per year. Based on that
                                             small business size standard for the                    comprises establishments engaged in                     Census data we conclude that most
                                             category of Telecommunications                          operating and maintaining switching                     firms that operate television stations are
                                             Resellers.116 Under that size standard,                 and transmission facilities to provide                  small. The Commission has estimated
                                             such a business is small if it has 1,500                communications via the airwaves.                        the number of licensed commercial
                                             or fewer employees.117 Census data for                  Establishments in this industry have                    television stations to be 1,383.130 In
                                             2012 show that 1,341 firms provided                     spectrum licenses and provide services                  addition, according to Commission staff
                                             resale services during that year. Of that               using that spectrum, such as cellular                   review of the BIA Advisory Services,
                                             number, 1,341 operated with fewer than                  services, paging services, wireless                     LLC’s Media Access Pro Television
                                             1,000 employees.118 Thus, under this                    internet access, and wireless video                     Database, on March 28, 2012, about 950
                                                                                                     services.125 The appropriate size                       of an estimated 1,300 commercial
                                               109 http://factfinder.census.gov/faces/                                                                       television stations (or approximately 73
                                                                                                     standard under SBA rules is that such
                                             tableservices/jsf/pages/productview.xhtml?                                                                      percent) had revenues of $14 million or
                                                                                                     a business is small if it has 1,500 or
                                             pid=ECN_2012_US_51SSSZ5&prodType=table.                                                                         less.131 We therefore estimate that the
                                               110 See Trends in Telephone Service, at Table 5.3.    fewer employees. For this industry,
                                               111 Id.                                               Census data for 2012 show that there                      126 Trends   in Telephone Service at Table 5.3.
                                               112 13 CFR 121.201, NAICS code 517911.                                                                          127 Id.
                                               113 http://factfinder.census.gov/faces/                 119 Trends    in Telephone Service at Table 5.3.         128 U.S. Census Bureau, 2012 NAICS code
                                             tableservices/jsf/pages/productview.xhtml?                120 Id.
                                                                                                                                                             Economic Census Definitions, http://
daltland on DSKBBV9HB2PROD with RULES




                                             pid=ECN_2012_US_51SSSZ5&prodType=table.                   121 13    CFR 121.201, NAICS code 517110.             www.census.gov.cgi-bin/sssd/naics/naicsrch.
                                               114 See Trends in Telephone Service, at Table 5.3.      122 http://factfinder.census.gov/faces/                  129 13 CFR 121.201, NAICS code 515120.
                                               115 Id.                                               tableservices/jsf/pages/productview.xhtml?                 130 See FCC News Release, ‘‘Broadcast Station
                                               116 13 CFR 121.201, NAICS code 517911.                pid=ECN_2012_US_51SSSZ5&prodType=table.                 Totals as of March 31, 2017,’’ April 11, 2017;
                                               117 http://factfinder.census.gov/faces/                 123 Trends in Telephone Service at Table 5.3.
                                                                                                                                                             https://apps.fcc.gov/edocs_public/attachmatch/
                                             tableservices/jsf/pages/productview.xhtml?                124 Id.                                               DOC-344256A1.pdf.
                                             pid=ECN_2012_US_51SSSZ5&prodType=table.                   125 NAICS code 517210. See http://                       131 We recognize that BIA’s estimate differs
                                               118 Id.                                               www.census.gov/cgi-bin/ssd/naics/naiscsrch.             slightly from the FCC total.



                                        VerDate Sep<11>2014   16:42 Sep 17, 2018   Jkt 244001   PO 00000   Frm 00065     Fmt 4700   Sfmt 4700   E:\FR\FM\18SER1.SGM      18SER1


                                             47092            Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations

                                             majority of commercial television                       million per year.138 According to                        fewer subscribers nationwide.143 The
                                             broadcasters are small entities.                        Commission staff review of BIA                           Commission’s industry data indicate
                                                47. In assessing whether a business                  Advisory Services, LLC’s Media Access                    that there are currently 4,160 active
                                             concern qualifies as small under the                    Pro Radio Database, on March 28, 2012,                   cable systems in the United States.144 Of
                                             above definition, business (control)                    about 10,759 (97 percent) of 11,102                      this total, all but ten cable operators
                                             affiliations 132 must be included. Our                  commercial radio stations had revenues                   nationwide are small under the 400,000-
                                             estimate, therefore, likely overstates the              of $38.5 million or less. Therefore, most                subscriber size standard.145 In addition,
                                             number of small entities that might be                  such entities are small entities.                        under the Commission’s rate regulation
                                             affected by our action, because the                        50. In assessing whether a business                   rules, a ‘‘small system’’ is a cable system
                                             revenue figure on which it is based does                concern qualifies as small under the                     serving 15,000 or fewer subscribers.146
                                             not include or aggregate revenues from                  above size standard, business                            Current Commission records show 4,160
                                             affiliated companies. In addition, an                   affiliations must be included.139 In                     cable systems nationwide.147 Thus,
                                             element of the definition of ‘‘small                    addition, to be determined to be a                       under this standard as well, we estimate
                                             business’’ is that the entity not be                    ‘‘small business,’’ the entity may not be                that most cable systems are small
                                             dominant in its field of operation. We                  dominant in its field of operation.140 We                entities.
                                             are unable at this time to define or                    note that it is difficult at times to assess                53. Cable System Operators (Telecom
                                             quantify the criteria that would                        these criteria in the context of media                   Act Standard). The Communications
                                             establish whether a specific television                 entities, and our estimate of small                      Act also contains a size standard for
                                             station is dominant in its field of                     businesses may therefore be over-                        small cable system operators, which is
                                             operation. Accordingly, the estimate of                 inclusive.                                               ‘‘a cable operator that, directly or
                                             small businesses to which rules may                        51. Cable Television and Other                        through an affiliate, serves in the
                                             apply does not exclude any television                   Subscription Programming. This                           aggregate fewer than 1 percent of all
                                             station from the definition of a small                  industry comprises establishments                        subscribers in the United States and is
                                             business on this basis and is therefore                 primarily engaged in operating studios                   not affiliated with any entity or entities
                                             possibly over-inclusive to that extent.                 and facilities for the broadcasting of                   whose gross annual revenues in the
                                                                                                     programs on a subscription or fee basis.                 aggregate exceed $250,000,000.’’ 148
                                                48. In addition, the Commission has                  The broadcast programming is typically                   There are approximately 53 million
                                             estimated the number of licensed                        narrowcast in nature (e.g., limited                      cable video subscribers in the United
                                             noncommercial educational television                    format, such as news, sports, education,                 States today.149 Accordingly, an
                                             stations to be 394.133 These stations are               or youth-oriented). These                                operator serving fewer than 524,037
                                             non-profit, and therefore considered to                 establishments produce programming in                    subscribers shall be deemed a small
                                             be small entities.134 There are also 2,382              their own facilities or acquire                          operator if its annual revenues, when
                                             low power television stations, including                programming from external sources. The                   combined with the total annual
                                             Class A stations.135 Given the nature of                programming material is usually                          revenues of all its affiliates, do not
                                             these services, we will presume that all                delivered to a third party, such as cable                exceed $250 million in the aggregate.150
                                             LPTV licensees qualify as small entities                systems or direct-to-home satellite                      Based on available data, we find that all
                                             under the above SBA small business                      systems, for transmission to viewers.141                 but nine incumbent cable operators are
                                             size standard.                                          The SBA has established a size standard                  small entities under this size
                                                49. Radio Broadcasting. This                         for this industry of $38.5 million or less.              standard.151 We note that the
                                             Economic Census category ‘‘comprises                    Census data for 2012 shows that there                    Commission neither requests nor
                                             establishments primarily engaged in                     were 367 firms that operated that year.                  collects information on whether cable
                                             broadcasting aural programs by radio to                 Of this total, 319 operated with annual                  system operators are affiliated with
                                             the public. Programming may originate                   receipts of less than $25 million.142                    entities whose gross annual revenues
                                             in their own studio, from an affiliated                 Thus under this size standard, most                      exceed $250 million.152 Although it
                                             network, or from external sources.’’ 136                firms offering cable and other program                   seems certain that some of these cable
                                             The SBA has established a small                         distribution services can be considered                  system operators are affiliated with
                                             business size standard for this category,               small and may be affected by rules                       entities whose gross annual revenues
                                             which is: such firms having $38.5                       adopted.
                                             million or less in annual receipts.137                     52. Cable Companies and Systems.                        143 47  CFR 76.901(e).
                                             Census data for 2012 show that 2,849                    The Commission has developed its own                       144 As  of July 5, 2018, there were 4,160 active
                                             radio station firms operated during that                small business size standards for the                    cable systems in the Commission’s Cable
                                                                                                                                                              Operations and Licensing Systems (COALS)
                                             year. Of that number, 2,806 operated                    purpose of cable rate regulation. Under                  database.
                                             with annual receipts of less than $25                   the Commission’s rules, a ‘‘small cable                     145 See https://www.snl.com/web/client?auth=

                                                                                                     company’’ is one serving 400,000 or                      inherit#industry/topCableMSOs (last visited July
                                               132 ‘‘[Business concerns] are affiliates of each                                                               18, 2017).
                                                                                                                                                                 146 47 CFR 76.901(c)
                                             other when one concern controls or has the power          138 http://factfinder.census.gov/faces/
                                             to control the other or a third party or parties        tableservices/jsf/pages/productview.xhtml?                  147 See footnote 2, supra.

                                             controls or has to power to control both.’’ 13 CFR      pid=ECN_2012_US_51SSSZ5&prodType=table.                     148 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
                                             21.103(a)(1).                                             139 ‘‘Concerns and entities are affiliates of each        149 See NCTA Industry Data, Cable’s Customer
                                               133 See FCC News Release, ‘‘Broadcast Station
                                                                                                     other when one controls or has the power to control      Base, available at https://www.ncta.com/industry-
                                             Totals as of March 31, 2017,’’ April 11, 2017;          the other, or a third party or parties controls or has   data (last visited July 6, 2017).
                                             https://apps.fcc.gov/edocs_public/attachmatch/          the power to control both. It does not matter               150 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
                                             DOC-344256A1.pdf.                                       whether control is exercised, so long as the power          151 See https://www.snl.com/web/client?auth=
daltland on DSKBBV9HB2PROD with RULES




                                               134 See generally 5 U.S.C. 601(4), (6).               to control exists.’’ 13 CFR 121.103(a)(1) (an SBA        inherit#industry/topCableMSOs (last visited July
                                               135 See FCC News Release, ‘‘Broadcast Station         regulation).                                             18, 2018).
                                             Totals as of March 31, 2017,’’ April 11, 2017;            140 13 CFR 121.102(b) (an SBA regulation).                152 The Commission does receive such
                                             https://apps.fcc.gov/edocs_public/attachmatch/            141 https://www.census.gov.cgi-bin/sssd/naics/
                                                                                                                                                              information on a case-by-case basis if a cable
                                             DOC-344256A1.pdf.                                       naicsrch.                                                operator appeals a local franchise authority’s
                                               136 https://www.census.gov.cgi-bin/sssd/naics/          142 http://factfinder.census.gov/faces/                finding that the operator does not qualify as a small
                                             naicsrch.                                               tableservices/jsf/pages/productview.xhtml?               cable operator pursuant to § 76.901(f) of the
                                               137 13 CFR 121.201, NAICS code 515112.                pid=ECN_2012_US-51SSSZ5&prodType=Table.                  Commission’s rules. See 47 CFR 76.901(f).



                                        VerDate Sep<11>2014   16:42 Sep 17, 2018   Jkt 244001   PO 00000   Frm 00066   Fmt 4700   Sfmt 4700   E:\FR\FM\18SER1.SGM        18SER1


                                                              Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations                                         47093

                                             exceed $250 million, we are unable at                   station operation. This industry also                 Establishments in this industry use the
                                             this time to estimate with greater                      includes establishments primarily                     wired telecommunications network
                                             precision the number of cable system                    engaged in providing satellite terminal               facilities that they operate to provide a
                                             operators that would qualify as small                   stations and associated facilities                    variety of services, such as wired
                                             cable operators under the definition in                 connected with one or more terrestrial                telephony services, including VoIP
                                             the Communications Act.                                 systems and capable of transmitting                   services, wired (cable) audio and video
                                                54. Direct Broadcast Satellite (DBS)                 telecommunications to, and receiving                  programming distribution, and wired
                                             Service. DBS Service is a nationally                    telecommunications from, satellite                    broadband internet services. By
                                             distributed subscription service that                   systems. Establishments providing                     exception, establishments providing
                                             delivers video and audio programming                    internet services or voice over internet              satellite television distribution services
                                             via satellite to a small parabolic dish                 protocol (VoIP) services via client-                  using facilities and infrastructure that
                                             antenna at the subscriber’s location.                   supplied telecommunications                           they operate are included in this
                                             DBS is now included in SBA’s                            connections are also included in this                 industry.162 The SBA has developed a
                                             economic census category ‘‘Wired                        industry.156 The SBA has developed a                  small business size standard for Wired
                                             Telecommunications Carriers.’’ The                      small business size standard for ‘‘All                Telecommunications Carriers, which
                                             Wired Telecommunications Carriers                       Other Telecommunications,’’ which                     consists of all such companies having
                                             industry comprises establishments                       consists of all such firms with gross                 1,500 or fewer employees.163 Census
                                             primarily engaged in operating and/or                   annual receipts of $32.5 million or                   data for 2012 show that there were 3,117
                                             providing access to transmission                        less.157 For this category, census data for           Wired Telecommunications Carrier
                                             facilities and infrastructure that they                 2012 show that there were 1,442 firms                 firms that operated for that entire year.
                                             own and/or lease for the transmission of                that operated for the entire year. Of                 Of that number, 3,083 operated with
                                             voice, data, text, sound, and video using               these firms, a total of 1,400 had gross               less than 1,000 employees.164 Based on
                                             wired telecommunications networks.                      annual receipts of less than $25                      that data, we conclude that most Carrier
                                             Transmission facilities may be based on                 million.158 Thus, most ‘‘All Other                    RespOrgs that operated with wireline-
                                             a single technology or combination of                   Telecommunications’’ firms potentially                based technology are small.
                                             technologies. Establishments in this                    affected by the rules adopted can be                     59. The U.S. Census Bureau defines
                                             industry use the wired                                  considered small.                                     Wireless Telecommunications Carriers
                                             telecommunications network facilities                      56. RespOrgs. RespOrgs, i.e.,                      (except satellite) as establishments
                                             that they operate to provide a variety of               Responsible Organizations, are entities               engaged in operating and maintaining
                                             services, such as wired telephony                       chosen by toll-free subscribers to                    switching and transmission facilities to
                                             services, including VoIP services, wired                manage and administer the appropriate                 provide communications via the
                                             (cable) audio and video programming                     records in the toll-free Service                      airwaves, such as cellular services,
                                             distribution; and wired broadband                       Management System for the toll-free                   paging services, wireless internet access,
                                             internet services. By exception,                        subscriber.159 Although RespOrgs are                  and wireless video services.165 The
                                             establishments providing satellite                      often wireline carriers, they can also                appropriate size standard under SBA
                                             television distribution services using                  include non-carrier entities. Therefore,              rules is that such a business is small if
                                             facilities and infrastructure that they                 in the definition herein of RespOrgs,                 it has 1,500 or fewer employees.166
                                             operate are included in this industry.153               two categories are presented, i.e., Carrier           Census data for 2012 show that 967
                                             The SBA determines that a wireline                      RespOrgs and Non-Carrier RespOrgs.                    Wireless Telecommunications Carriers
                                             business is small if it has fewer than                     57. Carrier RespOrgs. Neither the
                                                                                                                                                           operated in that year. Of that number,
                                             1500 employees.154 Census data for                      Commission, the U.S. Census, nor the
                                                                                                                                                           955 operated with less than 1,000
                                             2012 indicate that 3,117 wireline                       SBA have developed a definition for
                                                                                                     Carrier RespOrgs. Accordingly, the                    employees.167 Based on that data, we
                                             companies were operational during that
                                                                                                     Commission believes that the closest                  conclude that most Carrier RespOrgs
                                             year. Of that number, 3,083 operated
                                                                                                     NAICS code-based definitional                         that operated with wireless-based
                                             with fewer than 1,000 employees.155
                                                                                                     categories for Carrier RespOrgs are                   technology are small.
                                             Based on that data, we conclude that
                                                                                                     Wired Telecommunications Carriers 160                    60. Non-Carrier RespOrgs. Neither the
                                             most wireline firms are small under the
                                                                                                     and Wireless Telecommunications                       Commission, the Census, nor the SBA
                                             applicable standard. However, currently
                                                                                                     Carriers (except satellite).161                       have developed a definition of Non-
                                             only two entities provide DBS service,
                                             AT&T and DISH Network. AT&T and                            58. The U.S. Census Bureau defines                 Carrier RespOrgs. Accordingly, the
                                             DISH Network each report annual                         Wired Telecommunications Carriers as                  Commission believes that the closest
                                             revenues that are in excess of the                      establishments primarily engaged in                   NAICS code-based definitional
                                             threshold for a small business.                         operating and/or providing access to                  categories for Non-Carrier RespOrgs are
                                             Accordingly, we conclude that DBS                       transmission facilities and infrastructure            ‘‘Other Services Related To
                                             service is provided only by large firms.                that they own and/or lease for the                    Advertising’’ 168 and ‘‘Other
                                                55. All Other Telecommunications.                    transmission of voice, data, text, sound,             Management Consulting Services.’’ 169
                                             ‘‘All Other Telecommunications’’ is                     and video using wired communications
                                                                                                                                                             162 http://www.census,gov/cgi-bin/sssd/
                                             defined as follows: This U.S. industry is               networks. Transmission facilities may
                                                                                                                                                           naics.naicsrch.
                                             comprised of establishments that are                    be based on a single technology or a                    163 13 CFR 120,201, NAICS code 517110.
                                             primarily engaged in providing                          combination of technologies.                            164 http://factfinder.census.gov/faces/
                                             specialized telecommunications                                                                                tableservices/jsf/pages/productview.xhtml?
                                             services, such as satellite tracking,                     156 http://www.census.gov/cgi-bin/ssssd/naics/      pid=ECN_2012_US_51SSSZ4&prodType=table.
daltland on DSKBBV9HB2PROD with RULES




                                             communications telemetry, and radar                     naicsrch.                                               165 http://www.census,gov/cgi-bin/sssd/
                                                                                                       157 13 CFR 121.201; NAICS code 517919.              naics.naicsrch.
                                               153 http://www.census.gov/cgi-bin/sssd/naics/           158 http://factfinder.census.gov/faces/               166 13 CFR 120.201, NAICS code 517120.

                                             naicsrch.                                               tableservices/jsf/pages/productview.xhtml?              167 http://factfinder.census.gov/faces/

                                               154 NAICS code 517110; 13 CFR 121.201.                pid=ECN_2012_US_51SSSZ4&prodType=table.               tableservices/jsf/pages/productview.xhtml?
                                                                                                       159 See 47 CFR 52.101(b)                            pid=ECN_2012_US_51SSSZ4&prodType=table.
                                               155 https://factfinder.census.gov/faces/
                                                                                                       160 13 CFR 121.201, NAICS code 517110                 168 13 CFR 120.201, NAICS code 541890.
                                             tableservices/jsf/pages/productview.xhtml?
                                             pid=PEP_2017_PEPANNRES&src=pt.                            161 13 CFR 121.201, NAICS code 517210.                169 13 CFR 120.201, NAICS code 541618.




                                        VerDate Sep<11>2014   16:42 Sep 17, 2018   Jkt 244001   PO 00000   Frm 00067   Fmt 4700   Sfmt 4700   E:\FR\FM\18SER1.SGM   18SER1


                                             47094            Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations

                                                61. The U.S. Census defines Other                    definitions of what services and                          67. In keeping with the requirements
                                             Services Related to Advertising as                      functions the Carrier and Non-Carrier                   of the Regulatory Flexibility Act, we
                                             comprising establishments primarily                     RespOrgs provide, Somos, the trade                      have considered certain alternative
                                             engaged in providing advertising                        association that monitors RespOrg                       means of mitigating the effects of fee
                                             services (except advertising agency                     activities, compiled data showing that                  increases to a particular industry
                                             services, public relations agency                       as of July 1, 2016, there were 23                       segment. For example, the Commission
                                             services, media buying agency services,                 RespOrgs operational in Canada and 436                  has increased the de minimis threshold
                                             media representative services, display                  RespOrgs operational in the United                      to $1,000, which will impact many
                                             advertising services, direct mail                       States, for a total of 459 RespOrgs                     small entities that pay regulatory fees.
                                             advertising services, advertising                       currently registered with Somos.177                     This increase in the de minimis
                                             material distribution services, and                                                                             threshold to $1,000 will relieve
                                             marketing consulting services.170 The                   D. Description of Projected Reporting,
                                                                                                     Recordkeeping and Other Compliance                      regulatees both financially and
                                             SBA has established a size standard for
                                                                                                     Requirements                                            administratively. Regulatees may also
                                             this industry as annual receipts of $15
                                                                                                                                                             seek waivers or other relief on the basis
                                             million dollars or less.171 Census data                   64. This Report and Order does not                    of financial hardship. See 47 CFR
                                             for 2012 show that 5,804 firms operated                 adopt any new reporting, recordkeeping,
                                             in this industry for the entire year. Of                                                                        1.1166.
                                                                                                     or other compliance requirements.
                                             that number, 5,249 operated with                                                                                F. Federal Rules That May Duplicate,
                                             annual receipts of less than $10                        E. Steps Taken To Minimize Significant                  Overlap, or Conflict
                                             million.172 Based on that data we                       Economic Impact on Small Entities and
                                             conclude that most Non-Carrier                          Significant Alternatives Considered                       68. None.
                                             RespOrgs who provide TFN-related                           65. The RFA requires an agency to                    IX. Ordering Clauses
                                             advertising services are small.                         describe any significant alternatives that
                                                62. The U.S. Census defines Other                                                                               69. Accordingly, it is ordered that,
                                                                                                     it has considered in reaching its
                                             Management Consulting Services as                                                                               pursuant to Section 9 (a), (b), (e), (f), and
                                                                                                     approach, which may include the
                                             establishments primarily engaged in                                                                             (g) of the Communications Act of 1934,
                                                                                                     following four alternatives, among
                                             providing management consulting                                                                                 as amended, 47 U.S.C. 159(a), (b), (e),
                                                                                                     others: (1) The establishment of
                                             services (except administrative and                                                                             (f), and (g), this Report and Order is
                                                                                                     differing compliance or reporting
                                             general management consulting; human                                                                            hereby adopted.
                                                                                                     requirements or timetables that take into
                                             resources consulting; marketing
                                                                                                     account the resources available to small                   70. It is further ordered that, pursuant
                                             consulting; or process, physical
                                                                                                     entities; (2) the clarification,                        to Division P—RAY BAUM’s Act of
                                             distribution, and logistics consulting).
                                                                                                     consolidation, or simplification of                     2018, Title I, 101–103, Consolidated
                                             Establishments providing
                                                                                                     compliance or reporting requirements                    Appropriations Act, 2018, Public Law
                                             telecommunications or utilities
                                                                                                     under the rule for small entities; (3) the              Number 115–141, 132 Stat. 1084, (2018),
                                             management consulting services are
                                                                                                     use of performance, rather than design,                 the Order in Section V is hereby
                                             included in this industry.173 The SBA
                                                                                                     standards; and (4) an exemption from                    adopted.
                                             has established a size standard for this
                                                                                                     coverage of the rule, or any part thereof,
                                             industry of $15 million dollars or                                                                                 71. It is further ordered that the
                                                                                                     for small entities.178
                                             less.174 Census data for 2012 show that                                                                         Report and Order in Section IV shall be
                                             3,683 firms operated in this industry for                  66. This Report and Order adopts the
                                                                                                                                                             effective upon publication in the
                                             that entire year. Of that number, 3,632                 proposals in the Notice of Proposed
                                                                                                                                                             Federal Register.
                                             operated with less than $10 million in                  Rulemaking to collect $322,035,000 in
                                                                                                     regulatory fees for FY 2018, as detailed                   72. It is further ordered that the Order
                                             annual receipts.175 Based on this data,
                                                                                                     in the fee schedules in Table 4,                        in Section V shall be effective on
                                             we conclude that most non-carrier
                                             RespOrgs who provide TFN-related                        including an increase in the DBS fee                    October 1, 2018.
                                             management consulting services are                      rate to 48 cents per subscriber so that                    73. It is further ordered that the
                                             small.176                                               the DBS fee would approach the cable                    Commission’s Consumer &
                                                63. In addition to the data contained                television/IPTV fee, based on the Media                 Governmental Affairs Bureau, Reference
                                             in the four (see above) U.S. Census                     Bureau FTEs devoted to issues that                      Information Center, shall send a copy of
                                             NAICS code categories that provide                      include DBS. The two DBS providers                      this Report and Order, including the
                                                                                                     are not small entities. The regulatory                  Final Regulatory Flexibility Analysis in
                                                170 http://www.census,gov/cgi-bin/sssd/              fees adopted do not include any new fee                 this Report and Order, to the Chief
                                             naics.naicsrch.                                         categories, except for the addition of                  Counsel for Advocacy of the U.S. Small
                                                171 13 CFR 120.201, NAICS code 541890.
                                                                                                     non-common carrier terrestrial                          Business Administration.
                                                172 http://factfinder.census.gov/faces/
                                                                                                     international bearer circuits to the
                                             tableservices/jsf/pages/productview.xhtml?
                                             pid=ECN_2012_US_51SSSZ4&prodType=table.
                                                                                                     regulatory fee category of international                List of Subjects in 47 CFR Part 1
                                                173 http://www.census.gov/cgi-bin/sssd/              bearer circuits, that previously did not
                                             naics.naicsrch.                                         pay regulatory fees. To the extent such                   Administrative practice and
                                                174 13 CFR 120.201, NAICS code 514618.               providers are small entities, the rates for             procedure.
                                                175 http://factfinder.census.gov/faces/
                                                                                                     smaller numbers of circuits would be                    Federal Communications Commission.
                                             tableservices/jsf/pages/productview.xhtml?              lower than the rates for larger quantity
                                             pid=ECN_2012_US_51SSSZ4&prodType=table.                                                                         Marlene Dortch,
                                                176 The four NAICS code-based categories             of circuits and, in addition, the de                    Secretary.
daltland on DSKBBV9HB2PROD with RULES




                                             selected above to provide definitions for Carrier and   minimis of $1,000 would likely exempt
                                             Non-Carrier RespOrgs were selected because as a         the smaller entities from paying annual                 Final Rules
                                             group they refer generically and comprehensively to     regulatory fees.
                                             all RespOrgs. Therefore, all RespOrgs, including                                                                  For the reasons discussed in the
                                             those not identified specifically or individually,
                                             must comply with the rules adopted in the                 177 Email   from Jennifer Blanchard, Somos, July 1,   preamble, the Federal Communications
                                             Regulatory Fees Report and Order associated with        2016.                                                   Commission amends 47 CFR part 1 as
                                             this Final Regulatory Flexibility Analysis.               178 5 U.S.C. 603(c)(1)–(c)(4).                        follows:


                                        VerDate Sep<11>2014   16:42 Sep 17, 2018   Jkt 244001   PO 00000   Frm 00068    Fmt 4700   Sfmt 4700   E:\FR\FM\18SER1.SGM   18SER1


                                                                 Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations                                                                                     47095

                                             PART 1—PRACTICE AND                                                       Authority: 47 U.S.C. 151, 154(i), 155, 157,                            ■ 2. Section 1.1152 is revised to read as
                                             PROCEDURE                                                               160, 201, 225, 227, 303, 309, 332, 1403, 1404,                           follows:
                                                                                                                     1451, 1452, and 1455; Sec. 102(c), Div. P,
                                             ■ 1. The authority citation for part 1 is                               Public Law 115–141, 132 Stat. 1084, unless                               § 1.1152 Schedule of annual regulatory
                                             revised to read as follows:                                             otherwise noted.                                                         fees for wireless radio services.

                                                                                                               Exclusive use services (per license)                                                                                      Fee amount 1

                                             1. Land Mobile (Above 470 MHz and 220 MHz Local, Base Station & SMRS) (47 CFR part 90):
                                                 (a) New, Renew/Mod (FCC 601 & 159) ...................................................................................................................................                         $25.00
                                                 (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .....................................................................................................                                    25.00
                                                 (c) Renewal Only (FCC 601 & 159) .........................................................................................................................................                      25.00
                                                 (d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...........................................................................................................                                25.00
                                             220 MHz Nationwide:
                                                 (a) New, Renew/Mod (FCC 601 & 159) ...................................................................................................................................                          25.00
                                                 (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .....................................................................................................                                    25.00
                                                 (c) Renewal Only (FCC 601 & 159) .........................................................................................................................................                      25.00
                                                 (d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...........................................................................................................                                25.00
                                             2. Microwave (47 CFR Pt. 101) (Private):
                                                 (a) New, Renew/Mod (FCC 601 & 159) ...................................................................................................................................                          25.00
                                                 (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .....................................................................................................                                    25.00
                                                 (c) Renewal Only (FCC 601 & 159) .........................................................................................................................................                      25.00
                                                 (d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...........................................................................................................                                25.00
                                             3. Shared Use Services Land Mobile (Frequencies Below 470 MHz—except 220 MHz):
                                                 (a) New, Renew/Mod (FCC 601 & 159) ...................................................................................................................................                          10.00
                                                 (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .....................................................................................................                                    10.00
                                                 (c) Renewal Only (FCC 601 & 159) .........................................................................................................................................                      10.00
                                                 (d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...........................................................................................................                                10.00
                                             Rural Radio (Part 22):
                                                 (a) New, Additional Facility, Major Renew/Mod (Electronic Filing) (FCC 601 & 159) .............................................................                                                 10.00
                                                 (b) Renewal, Minor Renew/Mod (Electronic Filing) (FCC 601 & 159) Marine Coast ..............................................................                                                    10.00
                                             Marine Coast (per license) (47 CFR part 80):
                                                 (a) New Renewal/Mod (FCC 601 & 159) .................................................................................................................................                           40.00
                                                 (b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159) ...................................................................................................                                    40.00
                                                 (c) Renewal Only (FCC 601 & 159) .........................................................................................................................................                      40.00
                                                 (d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...........................................................................................................                                40.00
                                             Aviation Ground:
                                                 (a) New, Renewal/Mod (FCC 601 & 159) ................................................................................................................................                           20.00
                                                 (b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159) ...................................................................................................                                    20.00
                                                 (c) Renewal Only (FCC 601 & 159) .........................................................................................................................................                      20.00
                                                 (d) Renewal Only (Electronic Only) (FCC 601 & 159) .............................................................................................................                                20.00
                                             Marine Ship:
                                                 (a) New, Renewal/Mod (FCC 605 & 159) ................................................................................................................................                           15.00
                                                 (b) New, Renewal/Mod (Electronic Filing) (FCC 605 & 159) ...................................................................................................                                    15.00
                                                 (c) Renewal Only (FCC 605 & 159) .........................................................................................................................................                      15.00
                                                 (d) Renewal Only (Electronic Filing) (FCC 605 & 159) ...........................................................................................................                                15.00
                                             Aviation Aircraft:
                                                 (a) New, Renew/Mod (FCC 605 & 159) ...................................................................................................................................                          10.00
                                                 (b) New, Renew/Mod (Electronic Filing) (FCC 605 & 159) .....................................................................................................                                    10.00
                                                 (c) Renewal Only (FCC 605 & 159) .........................................................................................................................................                      10.00
                                                 (d) Renewal Only (Electronic Filing) (FCC 605 & 159) ...........................................................................................................                                10.00
                                             4. CMRS Cellular/Mobile Services (per unit) (FCC 159) ................................................................................................................                               2 .20

                                             5. CMRS Messaging Services (per unit) (FCC 159) .......................................................................................................................                               3.08

                                             6. Broadband Radio Service (formerly MMDS and MDS) ..............................................................................................................                                     600
                                             7. Local Multipoint Distribution Service ...........................................................................................................................................                  600
                                                1 Note that ‘‘small fees’’ are collected in advance for the entire license term. Therefore, the annual fee amount shown in this table that is a
                                             small fee (categories 1 through 5) must be multiplied by the 10-year license term to arrive at the total amount of regulatory fees owed. Also, ap-
                                             plication fees may apply as detailed in § 1.1102.
                                                2 These are standard fees that are to be paid in accordance with § 1.1157(b).
                                                3 These are standard fees that are to be paid in accordance with § 1.1157(b).




                                             ■ 3. Section 1.1153 is revised to read as                               § 1.1153 Schedule of annual regulatory
                                             follows:                                                                fees and filing locations for mass media
                                                                                                                     services.

                                                                                                                                                                                                                                         Fee amount
daltland on DSKBBV9HB2PROD with RULES




                                                                                                                           Radio [AM and FM] (47 CFR part 73)

                                             1. AM Class A:
                                                 <=25,000 population .................................................................................................................................................................            $880
                                                 25,001–75,000 population ........................................................................................................................................................               1,325
                                                 75,001–150,000 population ......................................................................................................................................................                1,975
                                                 150,001–500,000 population ....................................................................................................................................................                 2,975



                                        VerDate Sep<11>2014        16:42 Sep 17, 2018        Jkt 244001      PO 00000       Frm 00069       Fmt 4700      Sfmt 4700      E:\FR\FM\18SER1.SGM             18SER1


                                             47096                Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations

                                                                                                                                                                                                                                                Fee amount

                                                   500,001–1,200,000 population .................................................................................................................................................                         4,450
                                                   1,200,001–3,000,000 population ..............................................................................................................................................                          6,700
                                                   3,000,001–6,000,000 population ..............................................................................................................................................                         10,025
                                                   >6,000,000 population ..............................................................................................................................................................                  15,050
                                             2.   AM Class B:
                                                   <=25,000 population .................................................................................................................................................................                    635
                                                   25,001–75,000 population ........................................................................................................................................................                        950
                                                   75,001–150,000 population ......................................................................................................................................................                       1,425
                                                   150,001–500,000 population ....................................................................................................................................................                        2,150
                                                   500,001–1,200,000 population .................................................................................................................................................                         3,225
                                                   1,200,001–3,000,000 population ..............................................................................................................................................                          4,825
                                                   3,000,001–6,000,000 population ..............................................................................................................................................                          7,225
                                                   >6,000,000 population ..............................................................................................................................................................                  10,850
                                             3.   AM Class C:
                                                   <=25,000 population .................................................................................................................................................................                    550
                                                   25,001–75,000 population ........................................................................................................................................................                        825
                                                   75,001–150,000 population ......................................................................................................................................................                       1,250
                                                   150,001–500,000 population ....................................................................................................................................................                        1,850
                                                   500,001–1,200,000 population .................................................................................................................................................                         2,775
                                                   1,200,001–3,000,000 population ..............................................................................................................................................                          4,175
                                                   3,000,001–6,000,000 population ..............................................................................................................................................                          6,275
                                                   >6,000,000 population ..............................................................................................................................................................                   9,400
                                             4.   AM Class D:
                                                   <=25,000 population .................................................................................................................................................................                    605
                                                   25,001–75,000 population ........................................................................................................................................................                        910
                                                   75,001–150,000 population ......................................................................................................................................................                       1,350
                                                   150,001–500,000 population ....................................................................................................................................................                        2,050
                                                   500,001–1,200,000 population .................................................................................................................................................                         3,050
                                                   1,200,001–3,000,000 population ..............................................................................................................................................                          4,600
                                                   3,000,001–6,000,000 population ..............................................................................................................................................                          6,900
                                                   >6,000,000 population ..............................................................................................................................................................                  10,325
                                             5.   AM Construction Permit ..............................................................................................................................................................                     550
                                             6.   FM Classes A, B1 and C3:
                                                   <=25,000 population .................................................................................................................................................................                    965
                                                   25,001–75,000 population ........................................................................................................................................................                      1,450
                                                   75,001–150,000 population ......................................................................................................................................................                       2,175
                                                   150,001–500,000 population ....................................................................................................................................................                        3,250
                                                   500,001–1,200,000 population .................................................................................................................................................                         4,875
                                                   1,200,001–3,000,000 population ..............................................................................................................................................                          7,325
                                                   3,000,001–6,000,000 population ..............................................................................................................................................                         11,000
                                                   >6,000,000 population ..............................................................................................................................................................                  16,500
                                             7.   FM Classes B, C, C0, C1 and C2:
                                                   <=25,000 population .................................................................................................................................................................                  1,100
                                                   25,001–75,000 population ........................................................................................................................................................                      1,650
                                                   75,001–150,000 population ......................................................................................................................................................                       2,475
                                                   150,001–500,000 population ....................................................................................................................................................                        3,725
                                                   500,001–1,200,000 population .................................................................................................................................................                         5,575
                                                   1,200,001–3,000,000 population ..............................................................................................................................................                          8,350
                                                   3,000,001–6,000,000 population ..............................................................................................................................................                         12,525
                                                   >6,000,000 population ..............................................................................................................................................................                  18,800
                                             8.   FM Construction Permits .............................................................................................................................................................                     965

                                                                                                                                            TV (47 CFR part 73)

                                             Digital TV (UHF and VHF Commercial Stations):
                                                  1. Markets 1 thru 10 .................................................................................................................................................................                 49,750
                                                  2. Markets 11 thru 25 ...............................................................................................................................................................                  37,450
                                                  3. Markets 26 thru 50 ...............................................................................................................................................................                  25,025
                                                  4. Markets 51 thru 100 .............................................................................................................................................................                   12,475
                                                  5. Remaining Markets ..............................................................................................................................................................                     4,100
                                                  6. Construction Permits ............................................................................................................................................................                    4,100
                                             Satellite UHF/VHF Commercial:
                                                  1. All Markets ............................................................................................................................................................................             1,500
                                                  Low Power TV, Class A TV, TV/FMTranslator, & TV/FM Booster (47 CFR part 74) .............................................................                                                                 380
daltland on DSKBBV9HB2PROD with RULES




                                             ■ 4. Section 1.1154 is revised to read as                                  § 1.1154 Schedule of annual regulatory
                                             follows:                                                                   charges for common carrier services.

                                                                                                                         Radio facilities                                                                                                   Fee amount

                                             1. Microwave (Domestic Public Fixed) (Electronic Filing) (FCC Form 601 & 159) .......................................................                                              $25.00.



                                        VerDate Sep<11>2014         16:42 Sep 17, 2018         Jkt 244001       PO 00000       Frm 00070       Fmt 4700       Sfmt 4700       E:\FR\FM\18SER1.SGM              18SER1


                                                                  Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations                                                                                            47097

                                                                                                                          Radio facilities                                                                                                    Fee amount

                                             Carriers:
                                                 1. Interstate Telephone Service Providers (per interstate and international end-user revenues (see FCC Form                                                                      $.00291.
                                                    499–A).
                                                 2. Toll Free Number Fee .........................................................................................................................................                $.10 per Toll Free Number.



                                             ■ 5. Section 1.1155 is revised to read as                                   § 1.1155 Schedule of regulatory fees for
                                             follows:                                                                    cable television services.

                                             1. Cable Television Relay Service .................................................................................................................................                  $1,075.
                                             2. Cable TV System, Including IPTV (per subscriber) ...................................................................................................                              $.77.
                                             3. Direct Broadcast Satellite (DBS) ................................................................................................................................                 $.48 per subscriber.



                                             ■ 6. Section 1.1156 is revised to read as                                   § 1.1156 Schedule of regulatory fees for                                    Stations. The following schedule
                                             follows:                                                                    international services.                                                     applies for the listed services:
                                                                                                                          (a) Geostationary Orbit (GSO) and
                                                                                                                         Non-Geostationary Orbit (NGSO) Space

                                                                                                                                   Fee category                                                                                                   Fee amount

                                             Space Stations (Geostationary Orbit) ..............................................................................................................................................                      $127,850
                                             Space Stations (Non-Geostationary Orbit) ......................................................................................................................................                           122,775
                                             Earth Stations: Transmit/Receive & Transmit only (per authorization or registration) ...................................................................                                                      325



                                               (b) International Terrestrial and                                         prior year in any terrestrial or satellite                                  addition, whether circuits are used
                                             Satellite. (1) Regulatory fees for                                          transmission facility for the provision of                                  specifically for voice or data is not
                                             International Bearer Circuits are to be                                     service to an end user or resale carrier,                                   relevant in determining that they are
                                             paid by facilities-based common carriers                                    which includes active circuits to                                           active circuits.
                                             and non-common carrier basis that have                                      themselves or to their affiliates. ‘‘Active                                    (2) The fee amount on a per active
                                             active (used or leased) international                                       circuits’’ for these purposes include                                       Gbps basis will be determined for each
                                             bearer circuits as of December 31 of the                                    backup and redundant circuits. In                                           fiscal year.

                                                                              International terrestrial and satellite (capacity as of December 31, 2017)                                                                                      Fee amount

                                             Terrestrial Common Carrier ............................................................................................................................................              $176 per Gbps Circuit.
                                             Terrestrial Non-Common Carrier.
                                             Satellite Common Carrier.
                                             Satellite Non-Common Carrier.



                                               (c) Submarine cable. Regulatory fees                                      for all submarine cable systems                                             year. The fee amount will be determined
                                             for submarine cable systems will be                                         operating as of December 31 of the prior                                    by the Commission for each fiscal year.
                                             paid annually, per cable landing license,

                                                                                                  Submarine cable systems (capacity as of Dec. 31, 2017)                                                                                          Fee amount

                                             <50 Gbps .........................................................................................................................................................................................           $9,850
                                             50 Gbps or greater, but less than 250 Gbps ..................................................................................................................................                                19,725
                                             250 Gbps or greater, but less than 1,000 Gbps .............................................................................................................................                                  39,425
                                             1,0000 Gbps or greater, but less than 4,000 Gbps ........................................................................................................................                                    78,875
                                             4,000 Gbps or greater .....................................................................................................................................................................                 157,750



                                             ■ 7. Section 1.1940(c) is revised to read                                   costs as determined by the Commission.                                      DEPARTMENT OF VETERANS
                                             as follows:                                                                 Commission administrative costs                                             AFFAIRS
                                                                                                                         include the personnel and service costs
                                             § 1.1940        Assessment.                                                 (e.g., telephone, copier, and overhead)                                     48 CFR Parts 844 and 845
                                             *     *    *     *     *                                                    to notify and collect the debt, without                                     RIN 2900–AQ05
                                               (c) The Commission shall assess                                           regard to the success of such efforts by
daltland on DSKBBV9HB2PROD with RULES




                                             administrative costs incurred for                                           the Commission.                                                             VA Acquisition Regulation:
                                             processing and handling delinquent                                          *      *     *    *     *                                                   Subcontracting Policies and
                                             debts, unless otherwise prohibited by                                                                                                                   Procedures; Government Property
                                                                                                                         [FR Doc. 2018–19548 Filed 9–17–18; 8:45 am]
                                             statute. The calculation of                                                                                                                             AGENCY:        Department of Veterans Affairs.
                                                                                                                         BILLING CODE 6712–01–P
                                             administrative costs may be based on
                                                                                                                                                                                                     ACTION:       Final rule.
                                             actual costs incurred or upon estimated


                                        VerDate Sep<11>2014         16:42 Sep 17, 2018          Jkt 244001      PO 00000        Frm 00071       Fmt 4700       Sfmt 4700       E:\FR\FM\18SER1.SGM              18SER1



Document Created: 2018-09-18 01:19:12
Document Modified: 2018-09-18 01:19:12
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 rule.
DatesEffective September 18, 2018, except for the amendment to Sec. 1.1940, which is effective October 1, 2018. To avoid penalties and interest, regulatory fees should be paid by the due date of September 25, 2018.
ContactRoland Helvajian, Office of Managing Director at (202) 418-0444.
FR Citation83 FR 47079 

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