SUPPLEMENTARY INFORMATION:

This is a summary of the Commission's Notice of Proposed Rulemaking (NPRM), FCC 22-39, MD Docket No. 21-190, and MD Docket No. 22-223, adopted on June 1, 2022 and released on June 2, 2022. The full text of this document is available for inspection and copying during normal business hours in the FCC Reference Center, 445 12th Street SW, Room CY-A257, Portals II, Washington, DC 20554, and may also be purchased from the Commission's copy contractor, BCPI, Inc., Portals II, 445 12th Street SW, Room CY-B402, Washington, DC 20554. Customers may contact BCPI, Inc. via their website, http://www.bcpi.com, or call 1-800-378-3160. This document is available in alternative formats (computer diskette, large print, audio record, and braille). Persons with disabilities who need documents in these formats may contact the FCC by email: FCC504@fcc.gov or phone: 202-418-0530 or TTY: 202-418-0432.

I. Procedural Matters

6. Ex Parte Information. The proceeding initiated by this NPRM, in which we seek comment on proposals as described above, shall be treated as a “permit-but-disclose” proceeding in accordance with the Commission's ex parte rules. Persons making ex parte presentations must file a copy of any written presentation or a memorandum summarizing any oral presentation within two business days after the presentation (unless a different deadline applicable to the Sunshine period applies). Persons making oral ex parte presentations are reminded that memoranda summarizing the presentation must (1) list all persons attending or otherwise participating in the meeting at which the ex parte presentation was made, and (2) summarize all data presented and arguments made during the presentation. If the presentation consisted in whole or in part of the presentation of data or arguments already reflected in the presenter's written comments, memoranda, or other filings in the proceeding, the presenter may provide citations to such data or arguments in his or her prior comments, memoranda, or other filings (specifying the relevant page and/or paragraph numbers where such data or arguments can be found) in lieu of summarizing them in the memorandum. Documents shown or given to Commission staff during ex parte meetings are deemed to be written ex parte presentations and must be filed consistent with § 1.1206(b) of the Commission's rules. In proceedings governed by § 1.49(f) of the Commission's rules or for which the Commission has made available a method of electronic filing, written ex parte presentations and memoranda summarizing oral ex parte presentations, and all attachments thereto, must be filed through the electronic comment filing system available for that proceeding, and must be filed in their native format ( e.g.,.doc, .xml, .ppt, searchable .pdf). Participants in this proceeding should familiarize themselves with the Commission's ex parte rules.

7. Initial Regulatory Flexibility Analysis. An initial regulatory flexibility analysis (IRFA) is contained in this summary. Comments to the IRFA must be identified as responses to the IRFA and filed by the deadlines for comments on the NPRM. The Commission will send a copy of the NPRM, including the IRFA, to the Chief Counsel for Advocacy of the Small Business Administration.

8. Initial Paperwork Reduction Act of 1995 Analysis. 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, see44 U.S.C. 3506(c)(4). ( printed page 38589)

I. Introduction

9. For fiscal year (FY) 2022, the Commission is required to collect $381,950,000 in regulatory fees for FY 2022, pursuant to sections 9 and 9A of the Communications Act of 1934, as amended (Communications Act), and the Commission's FY 2022 Appropriations Act. In this NPRM, we seek comment on associated changes to the non-geostationary orbit (NGSO) space stations regulatory fee rates. We also seek comment on the Commission's proposed regulatory fees for FY 2022 as set forth in Tables 2 and 3 in addition to other issues including: continuing to use our methodology for calculating television broadcaster regulatory fees based on population; calculating the costs of collection of regulatory fees in establishing the annual de minimis threshold; and how our proposals may promote or inhibit advances in diversity, equity, inclusion, and accessibility.

II. Background

10. Congress requires the Commission to assess and collect regulatory fees each year in an amount that can reasonably be expected to equal the amount of its annual salaries and expenses (S&E) appropriation. Regulatory fees cover direct costs, such as salaries and expenses; indirect costs, such as overhead functions; statutorily required tasks that do not directly equate with oversight and regulation of a particular regulatee but instead benefit the Commission and the industry as a whole; and support costs such as rent, utilities, and equipment. Regulatory fees also cover the costs incurred in oversight and regulation of entities that are statutorily exempt from paying regulatory fees ( i.e., governmental and nonprofit entities, amateur radio operators, and noncommercial radio and television stations), entities that are exempt from payment of FY 2022 regulatory fees because their total assessed annual regulatory fees fall below the annual de minimis threshold, and entities whose regulatory fees are waived. Pursuant to section 9(d) of the Communications Act, the Commission's methodology for assessing regulatory fees must “reflect the full-time equivalent number of employees within the bureaus and offices of the Commission, 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.” For FY 2022, the Commission must recover $381,950,000, as set forth in the FY 2022 Consolidated Appropriations Act.

11. Each year, early in the fiscal year, the Commission receives full time equivalent (FTE) data from its Human Resources Office, and identifies FTE data at the core bureau level ( i.e., direct FTEs), which is then used to determine the FTE allocations for the four core bureaus. This FTE data is then filtered down to the various fee categories within each core bureau based on the fee category percentages for each bureau. After the number of direct FTEs is determined within each core bureau of the Commission, a percentage of the total amount to be collected in regulatory fees for a given fiscal year is calculated for each core bureau based on the number of direct FTEs within a core bureau. The total of the percentages for each core bureau must equal 100% of the amount to be collected. The total percentage for a core bureau is then used to calculate the percentages for the various regulatory fee categories within each core bureau, as provided by the Commission's bureaus. Thus, the regulatory fee categories within each core bureau make up a percentage of a core bureau's total percentage to be collected in regulatory fees.

12. These percentages, either at the regulatory fee category level within a core bureau or summed up to the core bureau level, represent the dollar amount of regulatory fees to be collected by multiplying each fee category percentage by the target goal to be collected. For example, the Wireline Competition Bureau, a core bureau, has direct FTEs that constitute 33.74% of all regulatory fees to be collected. The Wireline Competition Bureau also has two fee categories from which 33.74% of the fees are to be collected: (1) the Interstate Telecommunications Service Provider Fee (ITSP) fee category constitutes 32.62%, and (2) the Toll Free Number fee category constitutes 1.12% for a total sum of 33.74%. The percentage for each fee category represents the amount to collect in regulatory fees for that fee category—for example, for the ITSP fee category, 32.62% amounts to $124.59 million from an FY 2022 target goal of $381,950,000. This dollar amount ($124.59 million) divided by the estimated units for the ITSP fee category determines the fee rate, which is then rounded to the nearest $5, where applicable. Indirect FTEs are then allocated proportionally based on the allocation percentage of direct FTEs of each core bureaus.

13. The indirect FTEs are the FTEs in the Enforcement Bureau, Consumer and Governmental Affairs Bureau, Public Safety and Homeland Security Bureau, Chairwoman's and Commissioners' offices, Office of the Managing Director, Office of General Counsel, Office of the Inspector General, Office of Communications Business Opportunities, Office of Engineering and Technology, Office of Legislative Affairs, Office of Workplace Diversity, Office of Media Relations, Office of Economics and Analytics, and Office of Administrative Law Judges, along with some FTEs in the Wireline Competition Bureau and the International Bureau that the Commission has previously classified as indirect for regulatory fee purposes. Unlike the work of direct FTEs, the work of FTEs designated as indirect benefits the Commission and the industry as a whole and is not specifically focused on the regulatees and licensees of a core bureau. The high percentage of 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 and its work as a whole.

14. In section 9 of the Communications Act, Congress prescribed a method of collecting an amount equal to the full S&E appropriation by keying the regulatory fee assessment to FTE burden. As a result, the fee assigned to each regulatory fee category relates to the FTE burden associated with their oversight and regulation by the relevant core bureaus. Because the total amount the Commission must collect in an offsetting collection generally changes each fiscal year, payors' regulatory fees will also typically change each fiscal year as a mathematical consequence of the changes in the total amount to be collected, the number of Commission FTEs, and projected unit estimates for each fee category. Beyond those changed collection requirements, consideration of changes, additions, or deletions to the regulatory fee schedule is focused on the Commission's direct FTE cost burden related to the regulatory fee category at issue within each core bureau.

15. Adjustments and Amendments to Regulatory Fee Schedule. Each year, the Commission is required to adjust the schedule of regulatory fees to “(A) reflect unexpected increases or decreases in the number of units subject to the payment of such fees; and (B) result in the collection of the amount required” by the Commission's annual appropriation. Each year the Commission issues a Notice of Proposed Rulemaking to seek comment on its methodology for assessing regulatory fees and the proposed regulatory fees for the fiscal year. ( printed page 38590)

III. Notice of Proposed Rulemaking

16. In this annual regulatory fee NPRM, we seek comment on our methodology for assessing regulatory fees and on the schedule of FY 2022 regulatory fees as set forth in Tables 2 and 3. We also seek comment on associated changes to the NGSO space station regulatory fee rates in addition to several other issues such as continuing to use our methodology for calculating television broadcaster regulatory fees based on population; calculating the costs of collection of regulatory fees in establishing the annual de minimis threshold; and how our proposals may promote or inhibit advances in diversity, equity, inclusion, and accessibility.

A. Assessment of Regulatory Fees

17. Methodology for Assessing Regulatory Fees. Congress has required us to collect $381,950,000 in regulatory fees for FY 2022. In doing so, section 9 of the Communications Act requires us to set regulatory fees to “reflect the full-time equivalent number of employees within the bureaus and offices of the Commission 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.” We implement this directive by first looking to the core bureaus within the Commission in order to identify the number of direct non-auction FTEs from each core bureau and then categorize the remaining non-auction FTEs and other Commission costs as indirect. Once the direct FTEs are identified, we then allocate fees to specific fee categories within each core bureau. These proportional calculations allocate all Commission non-auction related costs across all fee categories. We find that our methodology is consistent with section 9 of the Communications Act which requires us to base our methodology on the number of FTEs in calculating regulatory fees. We seek comment on this methodology and on the schedule of FY 2022 regulatory fees as set forth in Tables 2 and 3. Any proposals or comments requesting a change or modification to our proposed FY 2022 regulatory fees should include a thorough analysis showing a sufficient basis for making the change and provide alternative options for the Commission to meet its statutory obligation to collect the full amount of the appropriation by the end of the fiscal year. Commenters should also indicate how such alternative options are fair, administrable, and sustainable.

18. Allocating FTEs. Consistent with past practices, we propose to base the allocation of fee categories for FY 2022 on the Commission's calculation of FTEs in each regulatory fee category. Each year, early in the fiscal year, the Commission receives FTE data from the Commission's Human Resources Office, and identifies FTE data at the core bureau level (direct FTEs). This FTE data is then filtered down to the various fee categories within each core bureau. The total FTEs for each fee category include the direct FTEs associated with that category plus a proportional allocation of indirect FTEs. Applying the requirements of section 9 of the Communications Act to calculate regulatory fees, we propose to allocate the total collection target across all regulatory fee categories. Each regulatee within a fee category then pays its proportionate share based on an objective measure. To calculate fees for each licensee, we identify “units” used to calculate the fees. For example, broadcast licensees' fees will vary by population served and commercial mobile radio service (CMRS) wireless licensees will pay fees based on their number of subscribers. These calculations are illustrated in Table 2. The sources for the unit estimates that are used in these calculations are listed in Table 4.

19. In sum, there are 329 direct FTEs for FY 2022, distributed among the core bureaus as follows International Bureau (28), Wireless Telecommunications Bureau (70), Wireline Competition Bureau (111), and the Media Bureau (120). This results in 8.51% of the FTE allocation for International Bureau regulatees; 21.28% of the FTE allocation for Wireless Telecommunications Bureau regulatees; 33.74% of the FTE allocation for Wireline Competition Bureau regulatees; and 36.47% of FTE allocation for Media Bureau regulatees. There are in turn 943 indirect FTEs spread across the Commission: Enforcement Bureau (187), Consumer and Governmental Affairs Bureau (111), Public Safety and Homeland Security Bureau (98), part of the International Bureau (52), part of the Wireline Competition Bureau (38), Chairman and Commissioners' offices (22), Office of the Managing Director (136), Office of General Counsel (70), Office of the Inspector General (47), Office of Communications Business Opportunities (10), Office of Engineering and Technology (66), Office of Legislative Affairs (8), Office of Workforce Diversity (4), Office of Media Relations (12), Office of Economics and Analytics (78), and Office of Administrative Law Judges (4). Allocating these indirect FTEs based on the direct FTE allocations yields an additional 80.26 FTEs attributable to International Bureau regulatees, 200.64 FTEs attributable to Wireless Telecommunications Bureau regulatees, 318.16 FTEs attributable to Wireline Competition Bureau regulatees, and 343.95 FTEs attributable to Media Bureau regulatees.

20. Based on these allocations and the requirement to collect $381,950,000 in regulatory fees this year, we project collecting approximately $32.51 million (8.51%) in fees from International Bureau regulatees; $81.27 million (21.28%) in fees from Wireless Telecommunications Bureau regulatees; $128.86 million (33.74%) from Wireline Competition Bureau regulatees; and $139.31 million (36.47%) from Media Bureau regulatees. We set specific regulatory fees in Table 3 so that regulatees within a fee category pay their proportionate share based on an objective measure ( e.g., revenues or number of subscribers). The proposed fees are based on the established methodology, applied to the allocated direct FTEs and based on the Commission's appropriation amount of $381,950,000. We seek comment on our methodology. Commenters proposing adjustments to our methodology should explain the basis for their proposals.

1. Regulatory Fee Rates for Space Stations

21. We seek comment on the proposed regulatory fees for space stations as provided in Table 2. In 2021, the Commission adopted new NGSO space stations regulatory fee subcategories: “less complex” and “other,” both under the broader category of “Space Stations (Non-Geostationary Orbit).” In the FY 2021 Report and Order,86 FR 52742 (Sept. 22, 2021), the Commission subsequently adopted the proposal from the FY 2021 NPRM,86 FR 52429 (Sept. 21, 2021), to allocate 20% of NGSO space station regulatory fees to “less complex” NGSO space stations and 80% of NGSO regulatory fees to “other” NGSO space stations. As discussed above, in this proceeding, we determine a fee methodology for small satellites, and integrate the small satellite fee category into the NGSO space stations fee category. Accordingly, in Table 2, we have included the proposed fees for NGSO space stations calculated by assessing the fees that small satellites will pay in FY 2022, reducing that amount from the overall NGSO space stations fee category, and allocating the remaining NGSO space station fees 20/ ( printed page 38591) 80 using the two new fee subcategories: “less complex” NGSO space stations and all other NGSO space stations identified as “other” NGSO space stations.”

22. Below is a table illustrating the proposed NGSO fee rates for FY 2022. These proposed regulatory fees are also listed in Tables 2 and 3. We seek comment on these proposed regulatory fees. Commenters proposing alternative should explain the basis for their proposals.

23. Spacecraft Performing On-Orbit Servicing and Rendezvous and Proximity Operations. Two commenters propose the creation of additional fee categories, citing similarities between the characteristics of small satellites and those other satellite services commenters contend should have a separate fee. Spaceflight proposes that the Commission create a separate fee category for spacecraft performing on-orbit services (OOS), which would include deployment, rendezvous and proximity services. Spaceflight posits that OOS spacecraft share characteristics of small satellites and “less complex” NGSO systems thereby justifying the creation of a new and lower fee category. Spaceflight also distinguishes between OOS spacecraft and traditional NGSO satellites in that OOS spacecraft have limited duration and scope of use as well as a limited number of earth stations; require a smaller investment in OOS technology; require less ongoing regulation owing to the shorter duration of OOS spacecraft; will likely be licensed on a shared use basis. Spaceflight also notes that OOS spacecraft are licensed on a non-interference basis without the need for processing round procedures or post-processing round disputes over matters such as interference protection and spectrum priority. In addition, Astroscale proposes that the Commission create a new fee category for rendezvous and proximity operations (RPO). Astroscale submits that a Commission proceeding to create service rules and a corresponding fee category for RPO services would provide much needed permanency and clarity to support this nascent infrastructure. In allocating this fee, Astroscale argues that the Commission should consider the similarities that RPO services share with small satellites, such as one-way data communication, and with “less complex” NGSO systems, such as the less-intensive use of ground stations.

24. At this time, we tentatively conclude that it would be premature to adopt new fee categories for OOS and RPO operations. To date, there have been a limited number of such operations and these have been treated on a case-by-case basis. Except for GSO servicing missions, we expect that most OOS and RPO operations will be NGSO, but we tentatively conclude that it is too early to identify exactly where operations such as those in low-Earth orbit (LEO) might fit into the regulatory fee structure in the future. Thus, at this time, we do not have a record sufficient to propose to establish a fee category(ies) and appropriate methodology for assessing such a fee category(ies). We propose that, until we gain more experience in regulating such systems, we continue to regulate these systems as we have and consider OOS and RPO spacecraft licensing on a mission-by-mission basis. We seek comment on these tentative conclusions. Commenters that nonetheless favor a new fee category or categories should fully explain the basis for their positions, including how the Commission might identify exactly where these operations might fit into the regulatory fee structure.

25. However, although we do not adopt a new regulatory and corresponding fee category for OOS and RPO spacecraft at this time, we further seek comment on whether and how to assess fees for these types of spacecraft, and other types of satellites servicing other satellites, which operate near to the GSO arc. Specifically, we seek comment on whether a satellite servicing other satellites that operates above the GSO arc should be treated as a GSO space station for regulatory fee purposes. We also seek comment on what factors should be considered in determining whether the servicing spacecraft should be assessed regulatory fees separately. For example, what percentage of time are the satellites co-located with a GSO satellite?

B. Full-Service Television Broadcaster Fees

26. In the FY 2020 Report and Order,85 FR 59864 (Sept. 23, 2020), we completed the transition to a population-based full-service broadcast television regulatory fee. We do not reopen that decision relating to these regulatory fees being based on population at this time. For FY 2022, we propose to continue to assess fees for full-power broadcast television stations based on the population covered by a full-service broadcast television station's contour and seek comment on our mechanism, described below, for how we will calculate the regulatory fee based on the previously decided population-based methodology. As described in Table 7, we propose adopting a factor of .88 of one cent ($.008803) per person served for FY 2022 full-service broadcast television station fees. The population data for broadcasters' service areas are extracted from the TVStudy database, based on a station's projected noise-limited service contour. The population data for each licensee and the population-based fee (population multiplied by $.008803 for each full-service broadcast television station), including each satellite station is listed in Table 7. We seek comment on these proposed fees. Any commenters suggesting different ways to measure population-based fees for full-service television broadcasters should indicate the proposed fees and the underlying calculation and basis for the fees.

C. De Minimis Threshold

27. We seek comment on how to calculate the costs of collection of regulatory fees in establishing the annual de minimis threshold of $1,000. Section 9(e)(2) of the Communications Act permits the Commission to exempt a party from paying regulatory fees if “in the judgment of the Commission, the cost of collecting a regulatory fee established under this section from a party would exceed the amount collected from such party. . . .” NAB proposes that we increase the de minimis threshold, above $1,000, in order to assist small broadcasters. We remind commenters that the text of section 9(e)(2) of the Communications Act does not include language ( printed page 38592) suggesting that such considerations be used in determining the cost of collecting a regulatory fee for purposes of setting the de minimis threshold.

28. In the FY 2019 Report and Order,84 FR 50890 (Sept. 26, 2019), the Commission concluded that section 9(e)(2) of the Communications Act codifies our authority to adopt a de minimis exemption. At that time, the Commission analyzed the average cost of collecting delinquent debt and estimated that the Commission's cost of collecting the debt would exceed $1,000. The Commission determined that its administrative debt collection process involves many steps, including data compilation, preparation and validation; invoicing; debt transfer for third party collection; responding to debtor questions and disputes; and processing payments. Accordingly, the Commission retained the de minimis threshold for annual regulatory fee payors at $1,000.

29. We seek comment on NAB's proposal to increase the de minimis threshold. Commenters should discuss how we should calculate the costs of collection of regulatory fees and whether the cost of collecting a regulatory fee begins after the regulatory fees are due and once delinquencies occur. Alternatively, should the cost of collection begin when the Commission collects data on a payor's regulatory fee status, generally prior to the regulatory fee due date? Commenters advocating a higher annual de minimis threshold should discuss which steps in the debt collection process should be included in “the cost of collecting a regulatory fee.” For example, should the Commission also consider the costs associated with reviewing and resolving waiver requests and installment payment requests? Commenters suggesting an increase should indicate what the threshold should be increased to and the factual and statutory basis for such an increase. Commenters should also explain if the proposed definition of costs of collection is consistent with other uses of the term in the U.S. Code with respect to collection of federal fees.

D. Indirect Full Time Equivalents

30. As discussed above, the Commission has previously reclassified certain direct FTEs as indirect for regulatory purposes due to the nature of their work assignments. We seek comment on whether such reclassifications, on balance, produce a more accurate regulatory fee assessment. If reclassification is appropriate in certain circumstances, should we consider different calculation methods when reclassified FTEs work on issues that clearly do not benefit certain classes of licensees? If so, how should we adjust our calculation method? In addition, how frequently should the Commission revisit such reclassifications to ensure that the FTEs accurately reflect the work of the relevant Bureau? Are the current reclassifications still appropriate? To what extent does reclassification undermine the Commission's rationale for retaining its current direct/indirect methodology?

E. New Regulatory Fee Categories

31. In the FY 2021 NPRM, we sought comment on “whether we should adopt new regulatory fee categories and on ways to improve our regulatory fee process regarding any and all categories of service.” We invite additional comment in order to help inform our consideration of these issues.

F. Digital Equity and Inclusion

32. Finally, the Commission, as part of its continuing effort to advance digital equity for all, including people of color, persons with disabilities, persons who live in rural or tribal areas, and others who are or have been historically underserved, marginalized, or adversely affected by persistent poverty or inequality, invites comment on any equity-related considerations and benefits (if any) that may be associated with the proposals and issues discussed herein. Specifically, we seek comment on how our proposals may promote or inhibit advances in diversity, equity, inclusion, and accessibility, as well the scope of the Commission's relevant legal authority. We note that diversity and equity considerations, however, do not allow the Commission to shift fees from one party of fee payors to another nor to raise fees for any purpose other than as an offsetting collection in the amount of our annual S&E appropriation.

IV. Procedural Matters

33. Included below are procedural items as well as our current payment and collection methods. We include these payments and collection procedures here as a useful way of reminding regulatory fee payers and the public about these aspects of the annual regulatory fee collection process.

34. Credit Card Transaction Levels. In accordance with Treasury Financial Manual, Volume I, Part 5, Chapter 7000, Section 7045— Limitations on Card Collection Transactions, the highest amount that can be charged on a credit card for transactions with federal agencies is $24,999.99. 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, Automates Clearing House (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 2022 regulatory fee collection in Fact Sheets, https://www.fcc.gov/​regfees.

35. Payment Methods. During the fee season for collecting regulatory fees, regulatees can pay their fees by credit card through Pay.gov, ACH, debit card, or by wire transfer. Additional payment instructions are posted on the Commission's website at https://transition.fcc.gov/​fees/​regfees.html. The receiving bank for all wire payments is the U.S. Treasury, New York, NY (TREAS NYC). Any other form of payment ( e.g., checks, cashier's checks, or money orders) will be rejected. For payments by wire, an FCC Form 159-E should still be transmitted via fax so that the Commission can associate the wire payment with the correct regulatory fee information. The fax should be sent to the 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 initiated and completed before the deadline. Complete instructions for making wire payments are posted at https://transition.fcc.gov/​fees/​wiretran.html.

36. Standard Fee Calculations and Payment Dates. 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, 2021 for AM/FM radio stations, VHF/UHF broadcast television stations, and satellite television stations. Regulatory fees must be paid for all broadcast facility licenses granted on or before October 1, 2021.
• Wireline (Common Carrier) Services: Regulatory fees must be paid ( printed page 38593) for authorizations that were granted on or before October 1, 2021. In instances where a permit or license is transferred or assigned after October 1, 2021, 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. 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 § 52.103 of the Commission's rules. The unit count should be based on toll free numbers managed by RespOrgs on or about December 31, 2021.
• Wireless Services: Commercial Mobile Radio Service (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, 2021. The number of subscribers, units, or telephone numbers on December 31, 2021 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, 2021, 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 seven 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 2022.
• Multichannel Video Programming Distributor (MVPD) Services (cable television operators, Cable Television Relay Service (CARS) licensees, direct broadcast satellite (DBS), and internet Protocol TV (IPTV)): Regulatory fees must be paid for the number of basic cable television subscribers as of December 31, 2021. Regulatory fees also must be paid for CARS licenses that were granted on or before October 1, 2021. In instances where a permit or license is transferred or assigned after October 1, 2021, responsibility for payment rests with the holder of the permit or license as of the fee due date. For providers of DBS service and IPTV-based MVPDs, regulatory fees should be paid based on a subscriber count on or about December 31, 2021. In instances where a permit or license is transferred or assigned after October 1, 2021, responsibility for payment rests with the holder of the permit or license as of the fee due date.
• International Services: Regulatory fees must be paid for earth stations that were licensed (or authorized) on or before October 1, 2021. Regulatory fees must also be paid for Geostationary orbit space stations (GSO) and non-geostationary orbit satellite systems (NGSO), and the two NGSO subcategories “Other” and “Less Complex,” that were licensed and operational on or before October 1, 2021. Licensees of small satellites that were licensed and operational on or before October 1, 2021 must also pay regulatory fees. In instances where a permit or license is transferred or assigned after October 1, 2021, responsibility for payment rests with the holder of the permit or license as of the fee due date.
• International Services ( Submarine Cable Systems, Terrestrial and Satellite Services): Regulatory fees for submarine cable systems are to be paid on a per cable landing license basis based on lit circuit capacity as of December 31, 2021. Regulatory fees for terrestrial and satellite IBCs are to be paid based on active (used or leased) international bearer circuits as of December 31, 2021, 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, 2021. Whether circuits are used specifically for voice or data is not relevant for purposes of determining that they are active circuits. In instances where a permit or license is transferred or assigned after October 1, 2021, responsibility for payment rests with the holder of the permit or license as of the fee due date.

37. CMRS and Mobile Services Assessments. The Commission will compile data from the Numbering Resource Utilization Forecast (NRUF) report that is based on “assigned” telephone number (subscriber) counts that have been adjusted for porting to net Type 0 ports (“in” and “out”). We have included non-geographic numbers in the calculation of the number of subscribers for each CMRS provider in Table 2 and the CMRS regulatory fee factor proposed in Table 3. CMRS provider regulatory fees will be calculated and should be paid based on the inclusion of non-geographic numbers. CMRS providers can adjust the total number of subscribers, if needed. 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).

38. 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. 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.

39. 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, 2021), 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.

( printed page 38594)

V. List of Tables

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.

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.

( printed page 38597)

In order to calculate individual service fees for FY 2022, we adjusted FY 2021 payment units for each service to more accurately reflect expected FY 2022 payment liabilities. We obtained our updated estimates through a variety of means and sources. For example, we used Commission licensee data bases, actual prior year payment records and industry and trade association projections, where available. The databases we consulted include our Universal Licensing System (ULS), International Bureau Filing System (IBFS), Consolidated Database System (CDBS), Licensing and Management System (LMS) 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. Regulatory fee payment units are not all the same for all fee categories. For most fee categories, the term “units” reflect licenses or permits that have been issued, but for other fee categories, the term “units” reflect quantities such as subscribers, population counts, circuit counts, telephone numbers, and revenues.

We sought verification for these estimates from multiple sources and, in all cases, we compared FY 2022 estimates with actual FY 2021 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 2022 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 2022 payment units are based on FY 2021 actual payment units, it does not necessarily mean that our FY 2022 projection is exactly the same number as in FY 2021. We have either rounded the FY 2022 number or adjusted it slightly to account for these variables.

( printed page 38598)

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.

VI. Initial Regulatory Flexibility Analysis

1. As required by the Regulatory Flexibility Act of 1980, as amended (RFA) the Commission prepared this Initial Regulatory Flexibility Analysis (IRFA) of the possible significant economic impact on small entities by the policies and rules proposed in the NPRM. Written comments are requested on this IRFA. Comments must be identified as responses to the IRFA and must be filed by the deadline for comments on the NPRM. The Commission will send a copy of the NPRM, including the IRFA, to the Chief Counsel for Advocacy of the Small Business Administration (SBA). In addition, the NPRM and IRFA (or summaries thereof) will be published in the Federal Register .

A. Need for, and Objectives of, the Proposed Rules

2. 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 annual appropriation. For fiscal year (FY) 2022, the Commission must recover $381,950,000, as set forth in the FY 2022 Appropriations Act. The objective of the NPRM is to propose the regulatory fees to be paid by the regulatory fee payors in the Commission's core bureaus (Media Bureau, Wireless Telecommunications Bureau, Wireline Competition Bureau, and International Bureau) by the end of the fiscal year for FY 2022 equal to the full amount of the annual appropriation, and to seek comment on the proposed fees. Accordingly, in the NPRM, we seek comment on the Commission's historic methodology for calculating regulatory fees as required by section 9 of the Communications Act of 1934, as amended (Communications Act), and on the schedule of FY 2022 regulatory fees as set forth in Tables 2 and 3 of the NPRM. We also seek comment on several other issues related to the collection of regulatory fees: (i) continuing to use our methodology for calculating television broadcaster regulatory fees based on population by station contour; (ii) the proposed regulatory fee rates for the categories of small satellite, “NGSO—less complex,” and “NGSO—Other” space stations; (iii) calculating the costs of collection of regulatory fees in establishing the annual de minimis threshold; and (iv) how our proposals may promote or inhibit advances in diversity, equity, inclusion, and accessibility.

B. Legal Basis

3. This action, including publication of proposed rules, is authorized under sections (4)(i) and (j), 159, 159A, and 303(r) of the Communications Act of 1934, as amended.

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

4. The RFA directs agencies to provide a description of, and where feasible, an estimate of the number of small entities that may be affected by the proposed rules and policies, if adopted. The RFA generally defines the term “small entity” as having the same meaning as the terms “small business,” “small organization,” and “small governmental jurisdiction.” In addition, the term “small business” has the same meaning as the term “small business concern” under the Small Business Act. 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.

5. Small Businesses, Small Organizations, Small Governmental Jurisdictions. Our actions, over time, may affect small entities that are not easily categorized at present. We therefore describe here, at the outset, three broad groups of small entities that could be directly affected herein. First, while there are industry specific size standards for small businesses that are used in the regulatory flexibility analysis, according to data from the Small Business Administration's (SBA) Office of Advocacy, in general a small business is an independent business having fewer than 500 employees. These types of small businesses represent 99.9% of all businesses in the United States, which translates to 30.7 million businesses.

6. Next, the type of small entity described as a “small organization” is generally “any not-for-profit enterprise which is independently owned and operated and is not dominant in its field.” The Internal Revenue Service (IRS) uses a revenue benchmark of $50,000 or less to delineate its annual electronic filing requirements for small exempt organizations. Nationwide, for tax year 2018, there were approximately 571,709 small exempt organizations in the U.S. reporting revenues of $50,000 or less according to the registration and tax data for exempt organizations available from the IRS.

7. Finally, the small entity described as a “small governmental jurisdiction” is defined generally as “governments of cities, counties, towns, townships, villages, school districts, or special ( printed page 38628) districts, with a population of less than fifty thousand.” U.S. Census Bureau data from the 2017 Census of Governments indicate that there were 90,075 local governmental jurisdictions consisting of general purpose governments and special purpose governments in the United States. Of this number there were 36,931 general purpose governments (county, municipal and town or township) with populations of less than 50,000 and 12,040 special purpose governments—independent school districts with enrollment populations of less than 5ll governmental jurisdictions.”

8. Wired Telecommunications Carriers. The U.S. Census Bureau defines this industry as establishments primarily engaged in operating and/or providing access to transmission facilities and infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using wired communications networks. Transmission facilities may be based on a single technology or a combination of technologies. Establishments in this industry use the wired telecommunications network facilities that they operate to provide a variety of services, such as wired telephony services, including VoIP services, wired (cable) audio and video programming distribution, and wired broadband internet services. By exception, establishments providing satellite television distribution services using facilities and infrastructure that they operate are included in this industry. Wired Telecommunications Carriers are also referred to as wireline carriers or fixed local service providers.

9. The SBA small business size standard for Wired Telecommunications Carriers classifies firms having 1,500 or fewer employees as small. U.S. Census Bureau data for 2017 shows that there were 3,054 firms that operated in this industry for the entire year. Of this number, 2,964 firms operated with fewer than 250 employees. Additionally, based on Commission data in the 2021 Universal Service Monitoring Report, as of December 31, 2020, there were 5,183 providers that reported they were engaged in the provision of fixed local services. Of these providers, the Commission estimates that 4,737 providers have 1,500 or fewer employees. Consequently, using the SBA's small business size standard, most of these providers can be considered small entities.

10. Local Exchange Carriers (LECs). Neither the Commission nor the SBA has developed a size standard for small businesses specifically applicable to local exchange services. Providers of these services include both incumbent and competitive local exchange service providers. Wired Telecommunications Carriers is the closest industry with a SBA small business size standard. Wired Telecommunications Carriers are also referred to as wireline carriers or fixed local service providers. The SBA small business size standard for Wired Telecommunications Carriers classifies firms having 1,500 or fewer employees as small. U.S. Census Bureau data for 2017 shows that there were 3,054 firms that operated in this industry for the entire year. Of this number, 2,964 firms operated with fewer than 250 employees. Additionally, based on Commission data in the 2021 Universal Service Monitoring Report, as of December 31, 2020, there were 5,183 providers that reported they were fixed local exchange service providers. Of these providers, the Commission estimates that 4,737 providers have 1,500 or fewer employees. Consequently, using the SBA's small business size standard, most of these providers can be considered small entities.

11. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the Commission nor the SBA have developed a small business size standard specifically for incumbent local exchange carriers. Wired Telecommunications Carriers is the closest industry with an SBA small business size standard. The SBA small business size standard for Wired Telecommunications Carriers classifies firms having 1,500 or fewer employees as small. U.S. Census Bureau data for 2017 shows that there were 3,054 firms in this industry that operated for the entire year. Of this number, 2,964 firms operated with fewer than 250 employees. Additionally, based on Commission data in the 2021 Universal Service Monitoring Report, as of December 31, 2020, there were 1,227 providers that reported they were incumbent local exchange service providers. Of these providers, the Commission estimates that 929 providers have 1,500 or fewer employees. Consequently, using the SBA's small business size standard, the Commission estimates that the majority of incumbent local exchange carriers can be considered small entities.

12. Competitive Local Exchange Carriers (LECs). Neither the Commission nor the SBA has developed a size standard for small businesses specifically applicable to local exchange services. Providers of these services include several types of competitive local exchange service providers. Wired Telecommunications Carriers is the closest industry with an SBA small business size standard. The SBA small business size standard for Wired Telecommunications Carriers classifies firms having 1,500 or fewer employees as small. U.S. Census Bureau data for 2017 shows that there were 3,054 firms that operated in this industry for the entire year. Of this number, 2,964 firms operated with fewer than 250 employees. Additionally, based on Commission data in the 2021 Universal Service Monitoring Report, as of December 31, 2020, there were 3,956 providers that reported they were competitive local exchange service providers. Of these providers, the Commission estimates that 3,808 providers have 1,500 or fewer employees. Consequently, using the SBA's small business size standard, most of these providers can be considered small entities.

13. Interexchange Carriers (IXCs). Neither the Commission nor the SBA have developed a small business size standard specifically for Interexchange Carriers. Wired Telecommunications Carriers is the closest industry with an SBA small business size standard. The SBA small business size standard for Wired Telecommunications Carriers classifies firms having 1,500 or fewer employees as small. U.S. Census Bureau data for 2017 shows that there were 3,054 firms that operated in this industry for the entire year. Of this number, 2,964 firms operated with fewer than 250 employees. Additionally, based on Commission data in the 2021 Universal Service Monitoring Report, as of December 31, 2020, there were 151 providers that reported they were engaged in the provision of interexchange services. Of these providers, the Commission estimates that 131 providers have 1,500 or fewer employees. Consequently, using the SBA's small business size standard, the Commission estimates that the majority of providers in this industry can be considered small entities.

14. Prepaid Calling Card Providers. Neither the Commission nor the SBA has developed a small business size standard specifically for prepaid calling card providers. Telecommunications Resellers is the closest industry with an SBA small business size standard. The Telecommunications Resellers 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. ( printed page 38629) Establishments in this industry resell telecommunications; they do not operate transmission facilities and infrastructure. Mobile virtual network operators (MVNOs) are included in this industry. The SBA small business size standard for Telecommunications Resellers classifies a business as small if it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 shows that 1,386 firms in this industry provided resale services for the entire year. Of that number, 1,375 firms operated with fewer than 250 employees. Additionally, based on Commission data in the 2021 Universal Service Monitoring Report, as of December 31, 2020, there were 58 providers that reported they were engaged in the provision of payphone services. Of these providers, the Commission estimates that 57 providers have 1,500 or fewer employees. Consequently, using the SBA's small business size standard, most of these providers can be considered small entities.

15. Local Resellers. Neither the Commission nor the SBA have developed a small business size standard specifically for Local Resellers. Telecommunications Resellers is the closest industry with an SBA small business size standard. The Telecommunications Resellers 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 network operators (MVNOs) are included in this industry. The SBA small business size standard for Telecommunications Resellers classifies a business as small if it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 shows that 1,386 firms in this industry provided resale services for the entire year. Of that number, 1,375 firms operated with fewer than 250 employees. Additionally, based on Commission data in the 2021 Universal Service Monitoring Report, as of December 31, 2020, there were 293 providers that reported they were engaged in the provision of local resale services. Of these providers, the Commission estimates that 289 providers have 1,500 or fewer employees. Consequently, using the SBA's small business size standard, most of these providers can be considered small entities.

16. Toll Resellers. Neither the Commission nor the SBA have developed a small business size standard specifically for Toll Resellers. Telecommunications Resellers is the closest industry with an SBA small business size standard. The Telecommunications Resellers 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 network operators (MVNOs) are included in this industry. The SBA small business size standard for Telecommunications Resellers classifies a business as small if it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 shows that 1,386 firms in this industry provided resale services for the entire year. Of that number, 1,375 firms operated with fewer than 250 employees. Additionally, based on Commission data in the 2021 Universal Service Monitoring Report, as of December 31, 2020, there were 518 providers that reported they were engaged in the provision of toll services. Of these providers, the Commission estimates that 495 providers have 1,500 or fewer employees. Consequently, using the SBA's small business size standard, most of these providers can be considered small entities.

17. 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. Wired Telecommunications Carriers is the closest industry with an SBA small business size standard. The SBA small business size standard for Wired Telecommunications Carriers classifies firms having 1,500 or fewer employees as small. U.S. Census Bureau data for 2017 shows that there were 3,054 firms in this industry that operated for the entire year. Of this number, 2,964 firms operated with fewer than 250 employees. Additionally, based on Commission data in the 2021 Universal Service Monitoring Report, as of December 31, 2020, there were 115 providers that reported they were engaged in the provision of other toll services. Of these providers, the Commission estimates that 113 providers have 1,500 or fewer employees. Consequently, using the SBA's small business size standard, most of these providers can be considered small entities.

18. 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. The SBA size standard for this industry classifies a business as small if it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 shows that there were 2,893 firms in this industry that operated for the entire year. Of that number, 2,837 firms employed fewer than 250 employees. Additionally, based on Commission data in the 2021 Universal Service Monitoring Report, as of December 31, 2020, there were 797 providers that reported they were engaged in the provision of wireless services. Of these providers, the Commission estimates that 715 providers have 1,500 or fewer employees. Consequently, using the SBA's small business size standard, most of these providers can be considered small entities.

19. Television Broadcasting. This industry is comprised of “establishments primarily engaged in broadcasting images together with sound.” These establishments operate television broadcast studios and facilities for the programming and transmission of programs to the public. 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 small business size standard for this industry classifies businesses having $41.5 million or less in annual receipts as small. The 2017 U.S. Census Bureau data indicates that 744 firms in this industry operated for the entire year. Of that number, 657 firms had revenue of less than $25,000,000. Based on this data we estimate that the majority of television broadcasters are small entities under the SBA small business size standard.

20. The Commission estimates that as of September 2021, there were 1,374 licensed commercial television stations, 384 licensed noncommercial educational (NCE) television stations, ( printed page 38630) 2,276 low power television stations, including Class A stations (LPTV) and 3,106 TV translator stations. The Commission however does not compile, and otherwise does not have access to financial information for these television broadcast stations that would permit it to determine how many of these stations qualify as small entities under the SBA small business size standard. Nevertheless, given the SBA's large annual receipts threshold for this industry and the nature of television station licensees, we presume that all of these entities qualify as small entities under the above SBA small business size standard.

21. Radio Stations. This industry is comprised of “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. The SBA small business size standard for this industry classifies firms having $41.5 million or less in annual receipts as small. U.S. Census Bureau data for 2017 shows that 2,963 firms operated in this industry during that year. Of this number, 1,879 firms operated with revenue of less than $25 million per year. Based on this data and the SBA's small business size standard, we estimate a majority of such entities are small entities.

22. The Commission estimates that as of September 2021, there were 4,519 licensed commercial AM radio stations, 6,682 licensed commercial FM radio stations and 4,211 licensed noncommercial (NCE) FM radio stations. The Commission however does not compile, and otherwise does not have access to financial information for these radio stations that would permit it to determine how many of these stations qualify as small entities under the SBA small business size standard. Nevertheless, given the SBA's large annual receipts threshold for this industry and the nature of radio station licensees, we presume that all of these entities qualify as small entities under the above SBA small business size standard.

23. Cable Companies and Systems (Rate Regulation). The Commission has developed its own small business size standard 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. Based on available data, as of December 2020, there were approximately 45,308,192 basic cable video subscribers in the top Cable multiple system operators (MSOs) in the United States. Only five cable operators serving cable video subscribers in the top Cable MSOs had more than 400,000 subscribers. Accordingly, the Commission estimates that the majority of cable operators are small.

24. Cable System Operators (Telecom Act Standard). The Communications Act of 1934, as amended, contains a size standard for small cable system operators, which classifies “a cable operator that, directly or through an affiliate, serves in the aggregate fewer than one 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,” as small. As of December 2020, there were approximately 45,308,192 basic cable video subscribers in the top Cable MSOs in the United States. Accordingly, an operator serving fewer than 453,082 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. Based on available data, all but five of the cable operators in the Top Cable MSOs have less than 453,082 subscribers and can be considered small entities under this size standard. We note however, that the Commission neither requests nor collects information on whether cable system operators are affiliated with entities whose gross annual revenues exceed $250 million. Therefore, 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.

25. 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 included in the Wired Telecommunications Carriers industry which 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 voice over internet protocol (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.

26. The SBA small business size standard for Wired Telecommunications Carriers classifies firms having 1,500 or fewer employees as small. U.S. Census Bureau data for 2017 shows that 3,054 firms operated in this industry for the entire year. Of this number, 2,964 firms operated with fewer than 250 employees. Based on this data, the majority of firms in this industry can be considered small under the SBA small business size standard. According to Commission data however, only two entities provide DBS service—DIRECTV (owned by AT&T) and DISH Network, which require a great deal of capital for operation. DIRECTV and DISH Network both exceed the SBA size standard for classification as a small business. Therefore, we must conclude based on internally developed Commission data, in general DBS service is provided only by large firms.

27. Satellite Telecommunications. This industry comprises firms “primarily engaged in providing telecommunications services to other establishments in the telecommunications and broadcasting industries by forwarding and receiving communications signals via a system of satellites or reselling satellite telecommunications.” Satellite telecommunications service providers include satellite and earth station operators. The SBA small business size standard for this industry classifies a business with $35 million or less in annual receipts as small. U.S. Census Bureau data for 2017 shows that 275 firms in this industry operated for the entire year. Of this number, 242 firms had revenue of less than $25 million. Additionally, based on Commission data in the 2021 Universal Service Monitoring Report, as of December 31, 2020, there were 71 providers that reported they were engaged in the provision of satellite telecommunications services. Of these providers, the Commission estimates that approximately 48 providers have 1,500 or fewer employees. Consequently, using the SBA's small business size standard, a little more than of these providers can be considered small entities.

28. All Other Telecommunications. This industry is comprised of establishments primarily engaged in providing specialized telecommunications services, such as satellite tracking, communications telemetry, and radar station operation. This industry also includes ( printed page 38631) 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. Providers of internet services ( e.g. dial-up internet service providers (ISPs)) or VoIP services, via client-supplied telecommunications connections are also included in this industry. The SBA small business size standard for this industry classifies firms with annual receipts of $35 million or less as small. U.S. Census Bureau data for 2017 shows that there were 1,079 firms in this industry that operated for the entire year. Of those firms, 1,039 had revenue of less than $25 million. Based on this data, the Commission estimates that the majority of “All Other Telecommunications” firms can be considered small.

29. RespOrgs. Responsible Organizations, or RespOrgs (also referred to as Toll-Free Number (TFN) providers), 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. Based on information on the website of SOMOS, the entity that maintains a registry of Toll-Free Number providers (SMS/800 TFN Registry) for the more than 42 million Toll-Free numbers in North America, and the TSS Registry, a centralized registry for the use of Toll-Free Numbers in text messaging and multimedia services, there were approximately 446 registered RespOrgs/Toll-Free Number providers in July 2021. RespOrgs are often wireline carriers, however they can be include non-carrier entities. Accordingly, the description below for RespOrgs include both Carrier RespOrgs and Non-Carrier RespOrgs.

30. Carrier RespOrgs. Neither the Commission nor the SBA have developed a small business size standard for Carrier RespOrgs. Wired Telecommunications Carriers, and Wireless Telecommunications Carriers (except Satellite) are the closest industries with an SBA small business size applicable to Carrier RespOrgs.

31. Wired Telecommunications Carriers are 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. The SBA small business size standard for this industry classifies a business as small if it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 shows that there were 3,054 firms that operated for the entire year. Of this number, 2,964 firms operated with fewer than 250 employees. Based on that data, we conclude that the majority of Carrier RespOrgs that operated with wireline-based technology are small.

32. Wireless Telecommunications Carriers (except Satellite) engage 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. The SBA small business size standard for this industry classifies a business as small if it has 1,500 or fewer employees. For this industry, U.S. Census Bureau data for 2017 shows that there were 2,893 firms that operated for the entire year. Of this number, 2,837 firms employed fewer than 250 employees. Based on this data, we conclude that the majority of Carrier RespOrgs that operated with wireless-based technology are small.

33. Non-Carrier RespOrgs. Neither the Commission, nor the SBA have developed a small business size standard Non-Carrier RespOrgs. Other Services Related to Advertising and Other Management Consulting Services” are the closest industries with an SBA small business size applicable to Non-Carrier RespOrgs.

34. The Other Services Related to Advertising industry contains 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). The SBA small business size standard for this industry classifies a business as small that has annual receipts of $16.5 million or less. U.S. Census Bureau data for 2017 shows that 5,650 firms operated in this industry for the entire year. Of that number, 3,693 firms operated with revenue of less than $10 million. Based on this data, we conclude that a majority of non-carrier RespOrgs who provide TFN-related management consulting services are small.

35. The Other Management Consulting Services industry contains 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. The SBA small business size standard for this industry classifies a business as small if it has annual receipts of $16.5 million or less. U.S. Census Bureau data for 2017 shows that 4,696 firms operated in this industry for the entire year. Of that number, 3,700 firms had revenue of less than $10 million. Based on this data, we conclude that a majority of non-carrier RespOrgs who provide TFN-related management consulting services are small.

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

36. The NPRM does not propose any changes to the Commission's current information collection, reporting, recordkeeping, or compliance requirements for small entities. Regulatory fee payors, including small entities, will be required to pay the regulatory fees after such fees are adopted.

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

37. 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.

38. The Commission has taken steps to minimize the economic impact on ( printed page 38632) small entities by adopting a de minimis threshold under the section 9(e)(2) exemption in the Communications Act. Section 9(e)(2) of the Communications Act permits the Commission to exempt a party from paying regulatory fees if “in the judgment of the Commission, the cost of collecting a regulatory fee established under this section from a party would exceed the amount collected from such party . . . .” The threshold applies only to filers of annual regulatory fees, not regulatory fees paid through multi-year filings. Currently, the de minimis threshold for annual regulatory fee payors is $1,000 or less for the fiscal year. In the NPRM, the Commission seeks comment on the feasibility of raising the de minimis threshold.

F. Federal Rules That May Duplicate, Overlap, or Conflict With the Proposed Rules

39. None.

VII. Ordering Clauses

40. Accordingly, it is ordered that, pursuant to sections 47 U.S.C. 4(i), 4(j), 9, 9A, and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 159, 159A, and 303(r), this NPRMis hereby adopted.