SUPPLEMENTARY INFORMATION:

This is a summary of the Commission's Notice of Proposed Rulemaking (NPRM), FCC 25-30, MD Docket No. 24-85, MD Docket No. 25-190, adopted on June 4, 2025 and released on June 5, 2025. Comments, reply comments, and ex parte submissions will be available via ECFS. Documents will be available electronically in ASCII, Microsoft Word, and/or Adobe Acrobat. When the FCC Headquarters reopens to the public, these documents will also be available for public inspection during regular business hours in the FCC Reference Center, Federal Communications Commission, 45 L Street NE, Washington, DC 20554. To request materials in accessible formats for people with disabilities (Braille, large print, electronic files, audio format), send an email to fcc504@fcc.gov or call the Consumer and Governmental Affairs Bureau at 202-418-0530 (voice).

I. Administrative Matters

5. Ex Parte Information. The proceeding initiated by this Notice of Proposed Rulemaking, in which we seek comment on proposals as described below, 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 section 1.1206(b) of the Commission's rules. In proceedings governed by section 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.

6. Regulatory Flexibility Act. The Regulatory Flexibility Act of 1980, as amended (RFA), requires that an agency prepare a regulatory flexibility analysis for notice and comment rulemakings, unless the agency certifies that “the rule will not, if promulgated, have a significant economic impact on a substantial number of small entities.” ( printed page 25433) Accordingly, we have prepared an Initial Regulatory Flexibility Analysis (IRFA) concerning the potential impact of rule and policy changes contained in this NPRM. The IRFA is set forth in Section VI. The Commission invites the general public, in particular small businesses, to comment on the IRFA. Comments must be filed by the deadlines for comments on the NPRM indicated on the first page of this document and must have a separate and distinct heading designating them as responses to the IRFA.

7. Paperwork Reduction Act. This document does not contain any proposed new or substantively modified information collections subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. In addition, therefore, it does not contain any new or modified information collection burden for small business concerns with fewer than 25 employees, pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. § 3506(c)(4).

II. Introduction

8. Each fiscal year, the Commission is required to collect regulatory fees in an amount equal to its annual salaries and expenses (S&E) appropriation by the end of September. Pursuant to section 9 of the Communications Act of 1934, as amended (Communications Act or Act), and the Full Year Continuing Appropriations Act, 2025, the Commission must collect $390,192,000, which is an amount equal to its fiscal year (FY) 2025 salaries and expenses (S&E) appropriation. The Act requires the Commission to assess and collect regulatory fees to recover the costs of carrying out its activities in the total amounts provided for in Appropriations Acts.

9. In this Notice of Proposed Rulemaking (NPRM), we propose and seek comment on the regulatory fees and methodology to assess and collect $390,192,000 in congressionally required regulatory fees for FY 2025, as set forth in Tables 3, 4, and 7. Consistent with the Commission's long-standing regulatory fee methodology, staff has again undertaken a high-level, yet comprehensive, analysis of the work being performed by Commission employees to determine if identifiable full time equivalent (FTE) time is related to the oversight and regulation of fee payors such that it should be taken into consideration in applying our fee methodology. Based upon this analysis, we propose to increase the number of direct FTEs that are allocated to the licensing bureaus. In particular, we propose reallocating 61 indirect FTEs as direct FTEs to the Commission's core licensing bureaus. As described fully below, such reallocations—which are substantially similar to the Commission's determinations in fiscal years 2023 and 2024—reflect our conclusion that we can determine that certain FTE work in the Office of General Counsel, the Office of Economics and Analytics, and the Public Safety and Homeland Security Bureau is sufficiently linked to the oversight and regulation of regulatory fee payors in a core bureau such that the FTE burden of that work should be allocated as direct to a core bureau for regulatory fee purposes for FY 2025.

10. Moreover, as explained more fully below, because we released a Further Notice of Proposed Rulemaking in February seeking comment on whether the Commission should adjust the methodologies it uses to assess fee rates for space and earth station payors, in this NPRM we seek comment on proposed regulatory fees for space and earth station fee payors under both existing and proposed methodologies. We also propose to continue the Commission's past practice of calculating television broadcaster regulatory fees using our methodology of population-based full-service broadcast television regulatory fees as set forth in Table 8.

III. Background

11. Section 9 of the Communications Act obligates the Commission to assess and collect regulatory fees each year, totaling an amount that can reasonably be expected to equal the amount of its annual S&E appropriation. Fiscal year 2025 started on October 1, 2024, and ends on September 30, 2025. The Commission's regulatory fee collection is guided by both the statutory authority in sections 6 and 9 of the Communications Act and the explicit language of each fiscal year's S&E appropriation directing the amount to be collected as an offsetting collection. Thus, the Commission has no discretion regarding the amount of fees to be collected in any given fiscal year. Regulatory fees recover all of the Commission's direct, indirect, and support costs, including costs to cover 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. Direct costs are those such as salaries and expenses; indirect costs are those such as overhead functions; and support costs include those such as rent, utilities, and equipment. Since regulatory fees must recover the total amount of the Commission's appropriation, they also must cover the costs incurred in oversight and regulation of: (1) entities that are statutorily exempt from paying regulatory fees; (2) entities whose total assessed annual regulatory fees fall below the annual de minimis threshold; and (3) entities whose regulatory fees are waived. Entities that are exempt from paying regulatory fees include governmental and nonprofit entities, amateur radio operators, and noncommercial radio and television stations.

12. Congress has prescribed a method for the Commission to collect an amount equal to the full S&E appropriation in section 9 of the Communications Act, keying the regulatory fee assessment to the Commission's FTE burden. One FTE, a “Full Time Equivalent” or “Full Time Employee,” 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. In this proceeding, if we state 1.5 FTEs work on a particular subject matter, that might mean three individuals spend 50% of their time on that area. Moreover, in this NPRM, when we discuss FTEs and any change in allocation, it is solely for regulatory fee purposes and does not reflect proposals for the change of personnel in the various organizational work units.

13. Specifically, the Commission's methodology for assessing regulatory fees must “reflect the full-time equivalent number of employees within the Commission's bureaus and offices, 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.” As a result, the fee assigned to each regulatory fee category relates to the FTE burden associated with oversight and regulation of each regulatory fee category by the relevant core bureaus ( i.e., the Wireless Telecommunications Bureau, the Media Bureau, most of the Wireline Competition Bureau, part of the Office of International Affairs, and most of the Space Bureau). The Commission has previously concluded that allocating the work of FTEs in the Wireline Competition Bureau devoted to non-high-cost Universal Service Fund programs as indirect is consistent with how FTEs working for programs that benefit consumers, and the American public are treated elsewhere in the Commission. Similarly, the Commission has previously explained that most of the work of OIA, including the work of ( printed page 25434) the Global Strategies and Negotiation Division, does not benefit a specific fee payor, but rather the government as whole, and is therefore appropriately categorized as indirect. The Commission does, however, continue to categorize as direct the FTE work of OIA concerning international bearer circuit issues, including the services provided over submarine cables, determining that such FTE work is direct.

14. Given that the total amount of the offsetting collection generally changes each fiscal year, the regulatory fees due from payors also typically change as a mathematical consequence of the total amount that needs to be collected, the number of FTEs, and the projected unit estimates for each regulatory fee category. As the Commission has explained previously, because the Communication Act's explicit language requires that fees must reflect FTEs, FTE counts are the most administrable starting point for regulatory fee allocations, and regulatory fees are based on the direct FTEs in core bureaus. Thus, when considering changes, additions, or deletions to the regulatory fee schedule, we focus on the direct FTE cost burden related to the regulatory fee category at issue within each of the core licensing bureaus.

15. Moreover, we do not assign direct FTEs within a bureau to specific fee categories “by rote or at random, but rather in a manner that reflects the time spent by FTEs on a regulatory fee category, which is in itself a reflection of “benefit” to the fee category.” Thus, we apportion regulatory fees across fee categories based on the number of direct FTEs in each core bureau to take into account factors that are reasonably related to the payors' benefits. As a practical matter, regulatory fees are a zero-sum game because the Commission must collect the full amount of its appropriation each fiscal year. That is, any decrease to the fees paid by one category of regulatory fee payors necessitates an increase in fees paid by other categories of regulatory fee payors.

16. Full Time Equivalent (FTE) Allocation and Fee Calculation. The Commission allocates FTEs according to the nature of the work performed by its different organizational units. If the work performed by a group or office is directly related to the oversight and regulation of a regulatory fee category or categories in one of the five core licensing bureaus then those FTEs are considered to be direct FTEs. The Commission has long relied on direct FTE allocations because it has found those allocations best reflect the `benefits provided to the payor of the fee by the Commission's activities. Work that cannot be allocated to one of those regulatory fee categories is counted as an indirect FTE. Under this framework, the Commission assesses the allocation of FTEs by first determining the number of direct non-auctions FTEs in each of the Commission's core bureaus. Other factors the Commission takes into consideration include the annual appropriation and the projected unit estimates. Regulatory fees are initially apportioned across the regulatory fee categories based on the number of direct FTEs in each core bureau whose time is focused on a particular industry segment and then are 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.”

17. The FTE time devoted to developing and implementing the Commission's spectrum auctions is not included in the calculation of regulatory fees and is not offset by the collection of regulatory fees. Thus, the Commission's methodology excludes all spectrum auction-related FTEs and their overhead from the regulatory fee calculations. To the extent that FTEs within the core bureaus spend a portion of their time on auctions issues and a portion of their time on appropriated issues, their time is split and only the non-auctions portion of their time is reflected in the relevant core bureau's direct FTE count.

18. Early in each fiscal year, the Human Resources Management office identifies FTEs at the core bureau level and then staff validate that data through consultation with the bureaus and offices to determine the direct FTEs allocated to each of the five core bureaus. After determining the number of direct FTEs for each core bureau, those numbers are then used to calculate the corresponding percentage of the total amount of regulatory fees to be collected for a given fiscal year. Specifically, staff allocates appropriated amounts to be recovered proportionally based on the number of direct FTEs within each core bureau. The percentage for each core bureau is the number of direct non-auction FTEs within the core bureau divided by the total number of direct non-auction FTEs in the Commission. As a general matter, there is no additional calculation to attribute indirect costs. Instead, the proportional allocation of the whole S&E appropriation based on the number of direct FTEs effectively attributes all indirect costs among the core bureaus so that the Commission can recover its entire appropriation each year. Those proportions are then subdivided and apportioned within each core bureau into fee categories among the regulatees being served based on the time spent on each fee category. Finally, within each regulatory fee category the amount to be collected is divided by a unit count that allocates the regulatory fee payor's proportionate share based on an objective measure.

19. Historically, the Commission has categorized the FTEs in the Enforcement, Consumer and Governmental Affairs, and Public Safety and Homeland Security Bureaus along with some of the work in the Wireline Competition and the former International Bureau as well as the work of those in the Office of the Chair and the Commissioners' Offices and in the Offices of the Managing Director, General Counsel, Inspector General, Communications Business Opportunities, Engineering and Technology, Legislative Affairs, Workplace Diversity, Media Relations, Economics and Analytics, and Administrative Law Judges as indirect for regulatory fee purposes. Indirect FTE time covers a wide range of issues that include services that are not specifically correlated with one core bureau, let alone one specific category of regulatory fee payors. Indirect FTE work also includes matters that are not specific to any regulatory fee category, and many Commission attorneys, economists, engineers, analysts, and other staff work on a variety of issues during a single fiscal year, which benefits the Commission, the telecommunications industry, and the public.

20. Adjustments and Amendments to Regulatory Fee Schedule. By statute, the Commission must annually establish a fee proceeding to consider adjustments to the prior fee schedule to reflect unexpected increases or decreases in the number of units subject to the payment of such fees and result in the collection of the amount required by the Commission's annual appropriation. For example, if the number of units in a regulatory fee category increase, the amount due per unit may decrease. This would also include proportionate increases in a given fee category to reflect an overall increase in the annual FY appropriation. Such changes are rarely the subject of dispute and are usually addressed in the more ministerial changes to the fee schedule. The Commission will also propose amendments to the fee schedule “if it determines that changes are necessary for the 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 ( printed page 25435) payor of the fee by the Commission's activities.” Pursuant to the Act, the Commission must notify Congress immediately upon adoption of any adjustment. The Act also requires the Commission to notify Congress at least 90 days prior to making effective any amendments to the regulatory fee schedule.

21. In implementing our statutory authority, we consider the adoption of a new regulatory fee category or a change in an existing regulatory fee category only when we develop a sufficient basis for making the change, ensuring that our assessment of regulatory fees is fair, administrable, and sustainable. The Commission has adopted new regulatory fee categories and new methodologies for calculating regulatory fees when there is a sufficient basis for doing so based on the record, and under the relevant statutory provisions and precedent. If we adopt any of the proposals in the FY 2025 Space and Earth Station Regulatory Fees FNPRM to adjust the methodologies used to assess space and earth station regulatory fees, such changes will constitute amendments to the schedule of regulatory fees and must be submitted to Congress at least 90 days before becoming effective.

IV. Notice of Proposed Rulemaking

22. In this NPRM, we propose and seek comment on regulatory fees for FY 2025 as set forth in Tables 3, 4, and 7. We also seek comment on our proposal to continue to calculate television broadcaster regulatory fees using the Commission's methodology of population-based full-service broadcast television regulatory fees. We note that we do not consider any of the specific proposals we make in this NPRM to constitute amendments to the schedule of regulatory fees or our methodologies that would need to be submitted to Congress at least 90 days before becoming effective.

A. Assessment of Regulatory Fees

1. Methodology for Assessing Regulatory Fees

23. For FY 2025, we propose to collect $390,192,000 in regulatory fees, which is equal to our annual salaries and expenses (S&E) FY 2025 appropriation. As explained above, 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.” Our first step in establishing our regulatory fee schedule is identifying changes from the prior fiscal year regulatory fee proceeding, e.g., changes in the (i) FY appropriation, (ii) FTE levels, and (iii) relevant unit amounts for each regulatory fee category. Our second step is to identify the number of direct non-auction FTEs in each core bureau for purposes of the regulatory fee calculation. The remaining non-auction FTEs and other Commission costs are considered indirect and are not part of the regulatory fee calculation. After we determine the number of direct FTEs for each core bureau, we calculate the percentage of regulatory fees that we will need to collect for the given fiscal year from each regulatory fee category within each core bureau. These proportional calculations allocate all Commission non-auction related costs across all regulatory fee categories.

a. FTE Reallocations

24. Using the Commission's long-standing methodology to assess regulatory fees, staff conducted a high level analysis of the time utilized in the oversight and regulation of certain segments of the telecommunications industry to propose regulatory fees for FY 2025, which reflect the full-time equivalent number of employees within the Commission's bureaus and offices, 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. Our proposals to reallocate certain indirect FTEs as direct to one of the Commission's core bureaus, explained fully below, reflect our conclusion that we can determine, with reasonable accuracy for this fiscal year, that certain FTE time from the Office of General Counsel, the Office of Economics and Analytics, and the Public Safety and Homeland Security Bureau is devoted to work that is sufficiently linked to the oversight and regulation of regulatory fee payors such that the FTE burden of that work should be allocated as direct to a core bureau for regulatory fee purposes.

25. Any proposals or comments requesting a change or modification to our proposed methodology for FY 2025 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 proposed alternative options are fair, administrable, and sustainable.

b. Space and Earth Station Regulatory Fee Rates

26. In the recently released FY 2025 Space and Earth Station Regulatory Fees FNPRM, we continue to consider and seek further comment on proposals made in connection with the FY 2024 Space and Earth Station Regulatory Fees NPRM, to change the regulatory fee methodology used to assess regulatory fees for space and earth station fee payors. These proposals, which were not acted on in FY 2024, include: (1) whether to assess regulatory fees on authorized, but not operational, space and earth stations; (2) using an alternative methodology for assessing space station regulatory fees; (3) establishing tiers within existing NGSO space station fee categories based on the number of space stations in the system; and (4) creating new categories of earth station regulatory fees.

27. In today's NPRM, we propose and seek comment on regulatory fee rates in Tables 3 and 4 based on our existing methodology, as well as on proposed regulatory fee rates in Tables 7 that are based on the various proposals set forth in the FY 2025 Space and Earth Station Regulatory Fees FNPRM. Our proposed space and earth station regulatory fee rates are estimates because final space and earth station regulatory fee rates are dependent upon the outcome of the FY 2025 Space and Earth Station Regulatory Fees FNPRM proceeding. We also recognize that there could be a combination of the proposals based upon commenters' feedback and the outcome of the FY 2025 Space and Earth Station Regulatory Fees FNPRM. Accordingly, we are not seeking comment again in this proceeding on the specific proposals to adjust our existing methodology for assessing space and earth station regulatory fees, or to adopt an alternative methodology for assessing space station regulatory fees, which are set forth in the FY 2025 Space and Earth Station Regulatory Fees FNPRM. Comments pertaining to the proposals set forth in the Space and Earth Station Regulatory Fees FNPRM regarding the categories and allocation of fees for space and earth stations should not be submitted again in response to this NPRM. In this item, we specifically seek comment on the proposed regulatory fee rates for space and earth station payors for FY 2025 based on our existing methodology and on the proposals set forth in the Space and Earth Station Regulatory Fees FNPRM. As examples, commenters in response to this NPRM could address the specific proposed rates calculated for a category of fee payor or the ( printed page 25436) accuracy of the estimated number of units of fee payors in a specific category.

28. We seek comment on the adjusted schedule of regulatory fees for space and earth station payors, as proposed in Tables 3 and 4. These rates are based on the existing categories of space and earth station fee payors contained in section 1.1156 of the Commission's rules for space and international services. There are four current categories of space station payors: (1) Space Stations (Geostationary Orbit, GSO); (2) Space Stations (Non-Geostationary Orbit, NGSO)—Less Complex; (3) Space Stations (Non-Geostationary Orbit)—Other; and (4) Space Station (Small Satellites). “Less Complex” NGSO systems are defined as NGSO satellite systems planning to communicate with 20 or fewer U.S. authorized earth stations that are primarily used for Earth Exploration Satellite Service (EESS) and/or Automatic Identification System (AIS). “Small Satellites” are space stations licensed pursuant to the streamlined small satellite process contained in section 25.122 of the Commission's rules. The Space Stations (Small Satellites) category also includes “small spacecraft” licensed pursuant to the analogous streamlined procedures of section 25.123 of the rules. In addition, there is a single category of earth station payors—Earth Stations: Transmit/Receive & Transmit only. Since our fiscal year 2020 proceeding, non-U.S. licensed space stations granted market access to the United States through a Petition for Declaratory Ruling or through earth station licenses are subject to regulatory fees. Beginning in FY 2024, space stations that are principally used for Rendezvous and Proximity Operations (RPO), On-Orbit Servicing (OOS), including Orbital Transfer Vehicles (OTV), are included in the existing fee category for “small satellites” on an interim basis.

29. Under the existing methodology of calculating regulatory fees for space and earth station payors, the Commission multiplies the space station and earth station FTE allocation percentages by the target goal of collections (overall total amount to collect), respectively, to determine the amount to be collected from each regulatory fee category. In the FY 2024 Second Report and Order, the Commission adjusted the split of space station allocation percentages between the GSO and NGSO regulatory fee categories to 60/40, respectively, because the Commission found it more accurately reflected the current FTE work in these two categories of regulatory fee payors. The amount to be collected by the space station and earth station regulatory fee categories divided by the projected number of units determines the fee rate. There are several space station regulatory fee categories—GSO, NGSO “other,” NGSO “less complex,” and small satellites—and each of these regulatory fee categories has its own respective FTE allocation percentage to determine the fee rate. In the FY 2024 Space Station Regulatory Fees Order, the Commission adopted the proposal to set the regulatory fee for small satellites for FY 2024 at the level set for FY 2023, i.e., $12,215, with future annual adjustments to reflect the percentage change in the Commission's annual appropriation, unit count, and FTE allocation percentage from the previous fiscal year. The Commission implemented these changes to the methodology for regulatory fees in the FY 2024 Second Report and Order. Accordingly, under the existing methodology, we propose to assess the small satellite fee for FY 2025 at $12,330. We calculate the proposed regulatory fees for space and earth station payors for FY 2025 under this methodology in Tables 3 and 4, taking into account our estimate of the Commission's S&E appropriation for FY 2025. We seek comment on these proposed regulatory fees if the Commission employs its existing methodologies for FY 2025.

30. However, if proposals made in the FY 2025 Space and Earth Station Regulatory Fees FNPRM to change the existing methodology are adopted, in part or in whole, and become effective for FY 2025, the resulting possible space and earth station regulatory fees could change substantially. For example, if the proposal is adopted to assess regulatory fees on authorized, not just operational, space stations, it may increase the number of units of space station payors, which in turn could decrease the calculated per-unit regulatory fee for GSO and NGSO space station payors. This change could assess fees on space station regulatees that may not be assessed regulatory fees under the existing methodology. In FY 2024, the Commission adopted its proposal to apportion regulatory fees between earth and space station payors based on the percentage of direct FTEs involved in the licensing and regulation of each category, which led to an the increase of earth station regulatory fees to $2,610 for FY 2024. At the same time, the Commission has recently proposed an alternative methodology for assessing regulatory fees in the FY 2025 Space and Earth Station Regulatory Fees FNPRM that would replace the existing four categories of space station regulatory fees for GSO and NGSO space stations with a single fee category for all space stations and a fee for small satellites. If adopted, this would also substantially change the regulatory fees calculated for FY 2025 under the existing methodology.

31. We recognize that the FY 2025 Space and Earth Station Regulatory Fees FNPRM proceeding is still ongoing and it is unknown whether any of the proposals will be adopted in whole or in part in time to be effective for FY 2025. In addition, the number of units per fee category also depends on whether certain proposals in the Space and Earth Station Regulatory Fees FNRPM are adopted and may impact the regulatory fee rates adopted in this proceeding in a subsequent Report and Order. Accordingly, we explain, as part of our calculations within Table 7, the methodology and the underlying assumptions for arriving at the calculated regulatory fees for the proposals in the FY 2025 Space and Earth Station Regulatory Fees FNPRM in order to provide as much information as reasonably possible at this time to potential commenters. We seek comment on these calculations and the methodology and underlying assumptions that went into them.

2. Adjustment of Reallocations of Certain Indirect FTEs as Direct FTEs

32. According to information provided by our Human Resources Management office, at the start of FY 2025, there were 384.5 direct non-auctions FTEs that are distributed among the core licensing bureaus. With respect to the indirect FTE time in the non-core bureaus and offices, staff has undertaken a high-level, yet comprehensive analysis of the work being performed by non-auctions FTEs in the Office of Economics and Analytics, Office of General Counsel, and Office of Engineering and Technology as well as the Public Safety and Homeland Security Bureau, Enforcement Bureau and the Consumer and Governmental Affairs Bureau (and other bureaus and offices) to determine if identifiable time of any of those FTEs is related to the oversight and regulation of fee payors such that it should be taken into consideration in applying our fee methodology. In other words, staff has examined and validated the data to determine whether any indirect FTE time in the non-core bureaus and offices should be reallocated to be considered as direct FTE time to a core bureau.

33. As discussed herein, based on staff analysis, which is reasonably accurate for FY 2025, we propose to reallocate 63 indirect FTEs from the ( printed page 25437) Office of Economics and Analytics, the Office of General Counsel, and the Public Safety and Homeland Security Bureau as direct FTEs to core bureaus because, as the Commission concluded in FY 2024 and FY 2023, the nature of their work remains primarily related to the oversight and regulation of fee payors. Additionally, consistent with the Commission's determination for the past two fiscal years, we propose to reallocate two direct FTEs from the Media Bureau to be indirect FTEs because the nature of their work is sufficiently linked to work that is similar to that performed in the Enforcement Bureau, which has previously been categorized as indirect. These reallocations result in an overall proposed increase of 61 indirect FTEs being reallocated as direct FTEs to core bureaus. We find that these proposed reallocations are consistent with section 9 of the Communications Act, which requires us to determine regulatory fees based on FTEs.

34. As the Commission explained in the FY 2023 Report and Order, the nature of the work of the FTEs in its non-core bureaus and offices is generally categorized as indirect. For example, the Office of Engineering and Technology provides engineering and technical expertise to the agency as a whole and supports each of the agency's core bureaus. Likewise, the Enforcement Bureau FTE oversight is focused on the integrity of Commission's rules and ensuring the implementation of the Commission's Act, which is work that benefits the agency as a whole and the American public, and not one particular group of regulatory fee payors. Similarly, the work of FTEs in the Consumer and Governmental Affairs Bureau is primarily devoted to developing and implementing consumer policies as required by the Communications Act, including disability rights, consumer education, processing informal complaints, outreach to state, local, and Tribal governments, and oversight more generally of the telecommunications industry ( e.g., establishing and oversight of the Reassigned Numbers Database). In sum, the Commission has found it would not be equitable for any one regulatory fee group of payors to shoulder the FTE burden of indirect work. Nothing in the proposals we offer today changes those prior general determinations. In this NPRM, we propose regulatory fee rates in Tables 3 and 4, based on our existing methodology incorporating these proposals. We seek comment on our proposals.

35. As demonstrated in Tables 1 and 2 below, we propose to reallocate a sum total of 61 indirect FTEs, to be distributed as described below. Based on these proposed reallocations and after adjustments are made to the direct FTE counts to implement Commission precedent, we would have a total of 445.5 non-auctions direct FTEs for FY 2025, and we would collect approximately $7.039 million (1.80%) in fees from the Office of International Affairs regulatory fee payors; $44.872 million (11.50%) in fees from the Space Bureau regulatory fee payors; $105.582 million (27.06%) in fees from Wireless Telecommunications Bureau regulatory fee payors; $116.580 million (29.88%%) in fees from Wireline Competition Bureau regulatory fee payors; and $116.119 million (29.76%) in fees from Media Bureau regulatory fee payors.

36. Our proposals to reallocate indirect FTEs relies on staff's validation of the data and the same analysis employed in FY 2023 and FY 2024 evaluating whether measurable FTE time for FY 2025 is primarily being spent on the regulation and oversight of regulatory fee payors such that it should be considered as direct to a core bureau. Specifically, where the amount of work under consideration equaled .5 FTE or less, we rounded down to the nearest whole FTE and only proposed our reallocations in one full FTE increments. In analyzing the work of indirect FTEs in the non-core bureaus, we applied conservative estimates. The Commission previously concluded that less than a full-time FTE demonstrates that the work being done is appropriately considered to be indirect and should not be reassigned.

37. Based upon our analysis of the data, some FTE time in the Office of Economics and Analytics, the Office of General Counsel, and the Public Safety and Homeland Security Bureau is being primarily spent on the regulation and oversight and regulation of regulatory fee payors. Similar to the last two years, we therefore propose that 63 indirect FTEs should be reallocated as direct FTEs to a core bureau. Additionally, consistent with past practice, we propose to reallocate two direct FTEs from the Media Bureau as indirect because the nature of their work is sufficiently linked to work that is similar to that performed in the Enforcement Bureau, which has previously been categorized as indirect. We therefore propose reallocating the sum total of 61 indirect FTE time to direct to a relevant core bureaus and office for calculating regulatory fees. Below, we discuss our analysis for the Office of Economics and Analytics, the Office of General Counsel, and the ( printed page 25438) Public Safety and Homeland Security Bureau.

38. Office of Economics and Analytics (OEA) FTEs. The Commission historically has concluded that it is appropriate for the non-auctions FTEs in OEA to be considered indirect FTEs because their work benefits the Commission and the telecommunications industry and does not specifically focus on regulatory fee payors. As a general matter, OEA is responsible for expanding and strengthening the use of economic analysis in Commission policy making, for enhancing the development and use of auctions, and for implementing consistent and effective agency-wide data practices and policies. Specifically, OEA (a) provides economic analysis, including cost-benefit analysis, for rulemakings, transactions, adjudications, and other Commission actions; (b) manages Commission auctions in support of and in coordination with other bureaus and offices; (c) develops policies and strategies to help manage Commission data resources and establish best practices for data use throughout the Commission in coordination with other bureaus and offices; and (d) conducts long-term research on ways to improve the Commission's policies and processes in each of these areas. As the Commission has recognized the last two fiscal years, however, there is measurable FTE time in OEA that is done directly in furtherance of the oversight and regulation of regulatory fee payors in certain industry segments.

39. For FY 2025, as was the case in FY 2024, based on staff review of the data, we propose to reallocate 29 indirect FTEs from OEA as direct to a core bureau for regulatory fee purposes as follows: one to the Space Bureau, eight to the Wireless Telecommunications Bureau, 13 to the Wireline Competition Bureau, and seven to the Media Bureau. We seek comment on this proposed reallocation.

40. Office of General Counsel (OGC) FTEs. As explained in prior regulatory fee proceedings, much of the work of the OGC, as represented by FTE allocations, is considered to be indirect. OGC serves as the chief legal advisor to the Commission and its various bureaus and offices. In that capacity OGC's responsibilities are generally described as interpreting new and existing statutes and executive orders as they pertain to the Commission's exercise of its Communications Act authority and other authorities, as well as performing such functions involving implementation of such statutes and executive orders as may be assigned to it by the Commission. OGC advises the Commission in the preparation and revision of our rules, recommends decisions in adjudicatory matters before the Commission, assists the Commission in its decision-making capacity and performs a variety of legal functions regarding internal and other administrative matters. OGC also advises and represents the Commission in matters of litigation. These roles are divided between the Administrative Law Division and the Litigation Division and are overseen by the General Counsel (GC) and the GC's Front Office.

41. As the Commission has found in the past two years, however, we believe that certain aspects of OGC's work are sufficiently linked to the oversight and regulation of individual regulatory fee categories that the associated FTEs could properly be considered direct FTEs for such regulatory fee categories. For FY 2025, after staff evaluation of the data, we propose that four indirect FTEs from OGC should be reallocated as direct FTEs to a relevant core bureau for regulatory purposes. Specifically, based on the substance of the work that is being done directly in furtherance of the oversight and regulation of regulatory fee payors in certain industry segments for FY 2025, we propose to reallocate four indirect FTEs as direct to a core bureau follows: one to the Wireline Competition Bureau, one to the Wireless Telecommunications Bureau (instead of two as in FY 2024), one to the Space Bureau (new for this year), and one to the Media Bureau. We seek comment on this proposed reallocation for FY 2025.

42. Public Safety and Homeland Security Bureau (PSHSB) FTEs. The work of the PSHSB, as represented by FTE allocations, also has been largely considered to be indirect in prior regulatory fee proceedings. PSHSB advises and coordinates within the Commission on all matters pertaining to public safety, homeland security, national security, cybersecurity, emergency management and preparedness, disaster management, and related matters. PSHSB leads initiatives that strengthen public safety and emergency response capabilities enabling the Commission to assist the public, first responders, law enforcement, hospitals, the communications industry and all levels of government in times of emergency; thus, the majority of the work of its FTEs is best categorized as indirect. We conclude, however, as the Commission did in FY 2024 and FY 2023, that based on substantive work that is being done directly in furtherance of the oversight and regulation of regulatory fee payors in certain industry segments for FY 2025, it is appropriate to reallocate 30 indirect FTEs from PSHSB as direct to a core bureau for regulatory fee purposes as follows: 14 to the Wireless Telecommunications Bureau, nine to the Wireline Competition Bureau, and seven to the Media Bureau. We seek comment on this proposed reallocation.

43. Conclusion of the Proposal to Reallocate Certain Indirect FTEs from OEA, OGC, and PSHSB as Direct FTEs to a Relevant Core Bureau. As represented above, FTE time associated with the proposed reallocations for regulatory fee purposes would be added to the direct FTE totals for a relevant core bureau. In other words, this proposed reallocation of indirect FTEs would result in increasing the number of direct FTEs in a core bureau and reducing the total number of indirect FTEs within the Commission. Because our underlying methodology for calculating regulatory fees remains unchanged, we conclude that our fee regulatory fee calculation continues to be 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 conclusion.

44. We continue to be mindful that our consideration of the work of FTEs as direct or indirect can change over time based on our evaluation of the FTE burden associated with the Commission's work assignments, fluctuations within industry segments, and needs of specific regulatory fee payors. Table 2 shows the percentage of regulatory fees allocated to each core bureau based on the proposed reallocation of a total of 61 indirect FTEs as direct to a core bureau, as discussed above. Such FTE reallocations, for regulatory fee purposes, would be proportionally distributed within the core bureau. We seek comment on these reallocations for FY 2025.

45. As reflected in Table 2 below, our proposals reallocate the sum total of 61 indirect FTEs as direct for regulatory fee purposes in FY 2025, resulting in a 15.9% increase in our overall direct FTE count for FY 2025, and a decrease of 4.25% in the overall direct FTE count from FY 2024. We make these proposals consistent with our long-standing regulatory fee methodology and based upon our determinations, which are reasonably accurate for fiscal year 2025. We seek comment on our proposals and this tentative conclusion. ( printed page 25439)

46. Any proposals or comments requesting a change or modification to these proposed regulatory fees for FY 2025 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 proposed alternative options are fair, administrable, and sustainable.

B. Broadcast Television Stations

47. For FY 2025, 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 as the Commission has since 2020. Previously, from approximately 1995 through 2018, regulatory fees for full-power television stations were based on the Nielsen Designated Market Area (DMA) groupings 1-10, 11-25, 26-50, 51-100, and remaining markets (DMAs 101-210). The population-based methodology conforms with the service authorized here—broadcasting television to the American people. We further propose to continue our use of 2020 U.S. Census data to assess fees for full-power broadcast television stations, as we traditionally have over the last few years. The population data for broadcasters' service areas are determined using the TVStudy software and the Licensing and Management System (LMS) database, based on a station's projected noise-limited service contour. However, consistent with the Commission's decision in FY 2024, we will continue to base assessments on limiting the population count of full-power television stations that rely on satellite television stations to reach terrain-limited areas in Puerto Rico. As previously implemented, the Commission based assessments on a full-power television station and its satellite facility on a maximum of 3.1 million population. Hence, the maximum fee amount that will be paid by a full-power TV station and its associated satellite facility together is 3.1 million times .006379 (the fee rate) = $19,774). We seek comment on our mechanism for how we will calculate the regulatory fee based on the previously decided population-based methodology. We propose adopting a factor of $.006379 per population served for the FY 2025 full-power broadcast television station fee. The population data for each licensee and the population-based fee (population multiplied by $.006379 for each full-power broadcast television station) are listed in Table 8. We seek comment on these proposed fees.

C. Improving the Regulatory Fees Process

48. We have a statutory obligation to assess and collect regulatory fees each fiscal year in an amount equal to the Commission's annual S&E appropriation. We seek additional 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 ask that commenters explain the legal bases for any proposals they make and how such proposals fit within the Commission's statutory authority and our existing regulatory fee methodology. We invite additional comment to help inform our consideration of these issues.

V. Procedural Matters

49. Included below are procedural items as well as our current payment and collection methods. We include these payments and collection procedures to remind regulatory fee payers and the public about these aspects of the annual regulatory fee collection process.

50. Credit Card Transaction Levels. In accordance with Treasury Financial Manual, Volume I, Part 5, Chapter 7000, Section 7065.20a— Credit Card Collections, the total daily credit card transactions processed from a single customer can be no more than $24,999.99 (hereinafter the “Maximum Daily Limit”) and the total monthly transactions processed from a single customer (based on a rolling 30-day period) can be no more than $100,000.00 (hereinafter the “Maximum Monthly Limit”). Transactions greater than the Maximum Limits will be rejected. If a customer initiates multiple ( printed page 25440) transactions on the same day with the same credit card, those transactions causing the total charge to exceed the Maximum Limits will also be rejected. This 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 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 the Commission's Registration System (CORES). Further details will be provided regarding payment methods and procedures at the time of FY 2025 regulatory fee collection in Fact Sheets, https://www.fcc.gov/​regfees.

51. 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://www.fcc.gov/​licensing-databases/​fees/​wire-transfer. 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://www.fcc.gov/​licensing-databases/​fees/​wire-transfer.

52. 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, 2024 for AM/FM radio stations, full-power 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, 2024.
• Wireline (Common Carrier) Services: Regulatory fees must be paid for authorizations that were granted on or before October 1, 2024. In instances where an authorization is transferred or assigned after October 1, 2024, responsibility for payment rests with the holder of the authorization 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 section 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, 2024.
• 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, 2024. The number of subscribers, units, or telephone numbers on December 31, 2024 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, 2024, 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 (first seven in our Calculation of Fees in Table 4) 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 2025.
• Multichannel Video Programming Distributor (MVPD) Services (cable television operators, Cable Television Relay Service (CARS) licensees, DBS, and IPTV): Regulatory fees must be paid for the number of basic cable television subscribers as of December 31, 2024. Regulatory fees also must be paid for CARS licenses that were granted on or before October 1, 2024. In instances where a permit or license is transferred or assigned after October 1, 2024, 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, 2024. In instances where a permit or license is transferred or assigned after October 1, 2024, 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, 2024. 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, 2024. Licensees of small satellites that were licensed and operational on or before October 1, 2024 must also pay regulatory fees. In instances where a permit or license is transferred or assigned after October 1, 2024, responsibility for payment rests with the holder of the permit or license as of the fee due date. Proposals also have been made to assess regulatory fees on all space stations that are authorized only (earth stations are feeable when they become licensed or authorized).
• 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, 2023. Regulatory fees for terrestrial and satellite IBCs are to be paid based on active (used or leased) international bearer circuits as of December 31, 2023, 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, 2023. 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, 2023, responsibility for payment rests with the holder of the permit or license as of the fee due date.

53. CMRS and Mobile Services Assessments. The Commission will compile data from the Numbering Resource Utilization Forecast (NRUF) ( printed page 25441) 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 3 and the CMRS regulatory fee factor proposed in Table 4. 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 CORES along with the carrier's Operating Company Numbers (OCNs).

54. A carrier wishing to revise its telephone number (subscriber) count can do so by accessing CORES and following the prompts to revise their telephone number counts. Any revisions to the telephone number counts should be accompanied by an explanation. The Commission will then review the revised count and supporting explanation, if any, and either approve or disapprove the submission in CORES. 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 supporting documentation. If the Commission receives no response from the provider, or the Commission does not reverse its initial disapproval of the provider's revised count submission, the fee payment must be based on the number of subscribers listed initially in CORES. 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 CORES.

55. Because some carriers do not file the NRUF report, they may not see their telephone number counts in CORES. 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, 2024), and submit their fee payment accordingly. Whether a carrier reviews its telephone number counts in CORES or not, the Commission reserves the right to audit the number of telephone numbers for which regulatory fees are paid. If the Commission determines that a carrier paid CMRS or mobile services regulatory fees based on an incorrect number of telephone numbers, the Commission will bill the carrier for the difference between what was paid and what should have been paid.

56. Providing Accountability Through Transparency Act. Consistent with the Providing Accountability Through Transparency Act, Public Law 118-9, a summary of this document will be available on https://www.fcc.gov/​proposed-rulemakings.

( printed page 25443)

Table 5—Sources of Payment Unit Estimates for FY 2025

In order to calculate individual service fees for FY 2025, we adjusted FY 2024 payment units for each service to more accurately reflect expected FY 2025 payment liabilities. We obtained our updated estimates through a variety of means and sources. For example, we used Commission licensee databases, 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), 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. As more current data are received after the NPRM is released, the Commission sometimes adjusts the NPRM fee rates to reflect the new information in the Report and Order. This is intended to make sure that the fee rates in the Report and Order reflect more recent and accurate information. We realize that by adjusting the unit counts as more accurate information is received may adjust the fee rates for certain regulatory fee categories. Certain entities that collect the fees from customers in advance in order to pay the Commission, such as Cable and DBS companies, ITSP providers, Cell Phone and Toll-Free providers, may need to adjust their billings to customers as the Commission adjusts its fee rates. As a result, the Commission understands that these adjustments are necessary so that these regulatees can recover their fee obligations from their customers.

We sought verification for these estimates from multiple sources and, in all cases, we compared FY 2025 estimates with actual FY 2024 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 2025 and the fact that, in many services, the number of actual licensees or station operators fluctuates over time due to economic, technical, or other reasons. When we note, for example, that our estimated FY 2025 payment units are based on FY 2024 actual payment units, it does not necessarily mean that our FY 2025 projection is exactly the same number as in FY 2024. We have either rounded the FY 2025 number or adjusted it slightly to account for these variables.

Table 6—Factors, Measurements, and Calculations That Determine Station Signal Contours and Associated Population Coverages

AM Stations

For stations with nondirectional daytime antennas, the theoretical radiation was used at all azimuths. For stations with directional daytime antennas, specific information on each day tower, including field ratio, phase, spacing, and orientation was retrieved, as well as the theoretical pattern root-mean-square of the radiation in all directions in the horizontal plane (RMS) figure (milliVolt per meter (mV/m) @1 km) for the antenna system. The standard, or augmented standard if pertinent, horizontal plane radiation pattern was calculated using techniques and methods specified in sections 73.150 and 73.152 of the Commission's rules. Radiation values were calculated for each of 360 radials around the transmitter site. Next, estimated soil conductivity data was retrieved from a database representing the information in FCC Figure R3. Using the calculated horizontal radiation values, and the retrieved soil conductivity data, the distance to the principal community (5 mV/m) contour was predicted for each of the 360 radials. The resulting distance to principal community contours were used to form a geographical polygon. Population counting was accomplished by determining which 2020 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 2020 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—Satellite Charts for FY 2025 Regulatory Fees

Table A—Space Stations Potentially Subject to Regulatory Fees in FY 2025

These charts publish a list of space stations and systems that would be subject to regulatory fees in FY 2025, including under the proposal made in the Space and Earth Station Regulatory Fees Further Notice of Proposed Rulemaking1 to assess regulatory fees on all authorized space stations, not only operational space stations.

( printed page 25448)

Table B—FY 2025 Space and Earth Station Regulatory Fees Calculations if Proposals To Amend the Existing Fee Methodology Are Adopted and Effective

The following chart provides an analysis of potential regulatory fees for space and earth stations for FY 2025 assuming the proposal to amend the existing methodology by creating tiers of “small” and “large” constellations within the NGSO space station “other” fee category, as described in the Space and Earth Station Regulatory Fees Further Notice of Proposed Rulemaking, is adopted and effective for FY 2025. This proposal includes the creation of new fee categories for Large and Small Constellations in the NGSO “other” category and assessment of fees on authorized, not just operational, space stations. It assumes the same number of earth station payors in FY 2025 as there were in FY 2024 (2900 units). It does not incorporate the proposals included in the alternative methodology.

Table C—FY 2025 Space and Earth Station Regulatory Fees Calculated if the Proposed Alternative Fee Methodology is Adopted and Effective

The following chart provides an analysis of potential regulatory fees for space and earth stations for FY 2025 assuming the alternative fee methodology, as described in the Space and Earth Station Regulatory Fees Further Notice of Proposed Rulemaking, is adopted and effective for FY 2025. This proposal includes the assessment of fees on authorized, not just operational, space stations. It assumes the same number of earth station payors in FY 2025 as there were in FY 2024 (2900 units).

( printed page 25450)

Table 9 FY 2024 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.

VI. Initial Regulatory Flexibility Analysis

As required by the Regulatory Flexibility Act of 1980, as amended (RFA), the Federal Communications Commission (Commission) has prepared this Initial Regulatory Flexibility Analysis (IRFA) of the policies and rules proposed in the Notice of Proposed Rulemaking (NPRM ) assessing the possible significant economic impact on a substantial number of small entities. The Commission requests written public comments on this IRFA. Comments must be identified as responses to the IRFA and must be filed by the deadlines for comments on the NPRM. The Commission will send a copy of the NPRM, including this 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

57. Each fiscal year, the Commission is required to collect regulatory fees in an amount equal to our annual salaries and expenses (S&E) appropriation by the end of September. Pursuant to section 9 of the Communications Act of 1934, as amended (Communications Act or Act), and the Full Year Continuing Appropriations Act, 2025 the Commission must collect $390,192,000, which is an amount equal to its fiscal year (FY) 2025 salaries and expenses (S&E) appropriation. 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 ( printed page 25477) activities.” The total amount the Commission must collect in an offsetting collection generally changes each fiscal year, and 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 full-time equivalents (FTEs), and projected unit estimates for each regulatory fee category. The NPRM seeks comment on the proposed regulatory fees and methodology for FY 2025, as set forth in Tables 3, 4, and 7. The NPRM also seeks comment on the calculation of television broadcaster regulatory fees as set forth in Table 8. Finally, the Commission seeks comment on whether any new regulatory fee categories or processes will improve its ability to meet its statutory obligations to assess and collect regulatory fees.

B. Legal Basis

58. The proposed action is authorized pursuant to sections 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).

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

59. 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, 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.

60. 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, 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 34.75 million businesses.

61. 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 2022, there were approximately 530,109 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.

62. 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 districts, with a population of less than fifty thousand.” U.S. Census Bureau data from the 2022 Census of Governments indicate there were 90,837 local governmental jurisdictions consisting of general purpose governments and special purpose governments in the United States. Of this number, there were 36,845 general purpose governments (county, municipal, and town or township) with populations of less than 50,000 and 11,879 special purpose governments (independent school districts) with enrollment populations of less than 50,000. Accordingly, based on the 2022 U.S. Census of Governments data, we estimate that at least 48,724 entities fall into the category of “small governmental jurisdictions.”

63. 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.

64. 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 show 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 2022 Universal Service Monitoring Report, as of December 31, 2021, there were 4,590 providers that reported they were engaged in the provision of fixed local services. Of these providers, the Commission estimates that 4,146 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.

65. 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 an 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 show 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 2022 Universal Service Monitoring Report, as of December 31, 2021, there were 4,590 providers that reported they were fixed local exchange service providers. Of these providers, the Commission estimates that 4,146 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.

66. 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 ( printed page 25478) firms having 1,500 or fewer employees as small. U.S. Census Bureau data for 2017 show 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 2022 Universal Service Monitoring Report, as of December 31, 2021, there were 1,212 providers that reported they were incumbent local exchange service providers. Of these providers, the Commission estimates that 916 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.

67. 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 a 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 show 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 2022 Universal Service Monitoring Report, as of December 31, 2021, there were 3,378 providers that reported they were competitive local exchange service providers. Of these providers, the Commission estimates that 3,230 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.

68. 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 a 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 show 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 2022 Universal Service Monitoring Report, as of December 31, 2021, there were 127 providers that reported they were engaged in the provision of interexchange services. Of these providers, the Commission estimates that 109 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.

69. 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 a 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 show 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 2022 Universal Service Monitoring Report, as of December 31, 2021, there were 62 providers that reported they were engaged in the provision of prepaid card services. Of these providers, the Commission estimates that 61 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.

70. 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 a 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 show 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 2022 Universal Service Monitoring Report, as of December 31, 2021, there were 207 providers that reported they were engaged in the provision of local resale services. Of these providers, the Commission estimates that 202 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.

71. 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 a 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 show 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 2022 Universal Service Monitoring Report, as of December 31, 2021, there were 457 providers that reported they were engaged in the provision of toll services. Of these providers, the Commission estimates that 438 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.

72. Other Toll Carriers. Neither the Commission nor the SBA has developed a definition for small businesses ( printed page 25479) 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 a 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 show 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 2022 Universal Service Monitoring Report, as of December 31, 2021, there were 90 providers that reported they were engaged in the provision of other toll services. Of these providers, the Commission estimates that 87 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.

73. 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 show 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 2022 Universal Service Monitoring Report, as of December 31, 2021, there were 594 providers that reported they were engaged in the provision of wireless services. Of these providers, the Commission estimates that 511 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.

74. 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 $47 million or less in annual receipts as small. 2017 U.S. Census Bureau data indicate 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.

75. As of March 31, 2024, there were 1,385 licensed commercial television stations. Of this total, 1,308 stations (or 94.4%) had revenues of $47 million or less in 2023, according to Commission staff review of the BIA Kelsey Inc. Media Access Pro Television Database (BIA) on January 7, 2025, and therefore these licensees qualify as small entities under the SBA definition. In addition, the Commission estimates as of December 31, 2024, there were 382 licensed noncommercial educational (NCE) television stations, 381 Class A TV stations, 1,801 LPTV stations and 3,091 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 these television station licensees, we presume that all of these entities qualify as small entities under the above SBA small business size standard.

76. 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 $47 million or less in annual receipts as small. U.S. Census Bureau data for 2017 show 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.

77. The Commission estimates that as of December 31, 2024, there were 4,383 licensed commercial AM radio stations and 6,625 licensed commercial FM radio stations, for a combined total of 11,008 commercial radio stations. Of this total, 11,007 stations (or 99.99%) had revenues of $47 million or less in 2023, according to Commission staff review of the BIA Kelsey Inc. Media Access Pro Database (BIA) on January 7, 2025, and therefore these licensees qualify as small entities under the SBA definition. In addition, the Commission estimates that as of December 31, 2024, there were 4,477 licensed noncommercial (NCE) FM radio stations, 1,968 low power FM (LPFM) stations, and 8,880 FM translators and boosters. 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.

78. We note, however, that in assessing whether a business concern qualifies as “small” under the above definition, business (control) affiliations 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, another element of the definition of “small business” requires that an 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 radio or television broadcast station is dominant in its field of operation. Accordingly, the estimate of small businesses to which the rules may apply does not exclude any radio or television station from the definition of a small business on this basis and is therefore possibly over-inclusive. An additional element of the definition of “small business” is that the entity must be independently owned and operated. Because it is difficult to assess these criteria in the context of media entities, the estimate of small businesses to which the rules may apply does not exclude any radio or television station from the definition of a small business on this basis and similarly may be over-inclusive. ( printed page 25480)

79. 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 industry data, there are about 420 cable companies in the U.S. Of these, only seven have more than 400,000 subscribers. In addition, under the Commission's rules, a “small system” is a cable system serving 15,000 or fewer subscribers. Based on industry data, there are about 4,139 cable systems (headends) in the U.S. Of these, about 639 have more than 15,000 subscribers. Accordingly, the Commission estimates that the majority of cable companies and cable systems are small.

80. Cable System Operators (Telecom Act Standard). The Communications Act of 1934, as amended, contains a size standard for a “small cable operator,” which is “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.” For purposes of the Telecom Act Standard, the Commission determined that a cable system operator that serves fewer than 498,000 subscribers, either directly or through affiliates, will meet the definition of a small cable operator. Based on industry data, only six cable system operators have more than 498,000 subscribers. Accordingly, the Commission estimates that the majority of cable system operators are small 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.

81. 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 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.

82. 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 show 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.

83. 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 $44 million or less in annual receipts as small. U.S. Census Bureau data for 2017 show that 275 firms in this industry operated for the entire year. Of this number, 242 firms had revenue of less than $25 million. Consequently, using the SBA's small business size standard most satellite telecommunications service providers can be considered small entities. The Commission notes however, that the SBA's revenue small business size standard is applicable to a broad scope of satellite telecommunications providers included in the U.S. Census Bureau's Satellite Telecommunications industry definition. Additionally, the Commission neither requests nor collects annual revenue information from satellite telecommunications providers, and is therefore unable to more accurately estimate the number of satellite telecommunications providers that would be classified as a small business under the SBA size standard.

84. 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 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 ISPs) or Voice over internet Protocol (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 show 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.

85. 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.

86. Carrier RespOrgs. Neither the Commission nor the SBA have developed a small business size standard for Carrier RespOrgs. Wired Telecommunications Carriers, and ( printed page 25481) Wireless Telecommunications Carriers (except Satellite) are the closest industries with a SBA small business size applicable to Carrier RespOrgs.

87. 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 show 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.

88. 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 show 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.

89. 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 a SBA small business size applicable to Non-Carrier RespOrgs.

90. The Other Services Related to Advertising industry 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 show 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.

91. 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 show 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 Economic Impact and Projected Reporting, Recordkeeping and Other Compliance Requirements for Small Entities

92. The RFA directs agencies to describe the economic impact proposed rules on small entities, as well as projected reporting, recordkeeping and other compliance requirements, including an estimate of the classes of small entities which will be subject to the requirement and the type of professional skills necessary for preparation of the report or record.

93. The NPRM does not propose any changes to the Commission's current information collection, reporting, recordkeeping, or compliance requirements for collecting regulatory fees from small entities. Small and other regulated entities are required to pay regulatory fees on an annual basis. The cost of compliance with the annual regulatory assessment for small entities is the amount assessed for their regulatory fee category, which may increase or decrease based upon the methodology employed by the Commission in FY 2025 to determine the allocation of direct FTEs within the core bureaus, and indirect FTEs in non-core bureaus and offices. Costs for regulatory fees may also be adjusted based on any additions or other changes to regulatory fee categories. For example, if proposals made in the FY 2025 Space and Earth Station Regulatory Fees FNPRM are adopted, such as the assessment of regulatory fees on authorized and operational space stations, it may increase the number of space station payors, which in turn could decrease the calculated per-unit regulatory fee for GSO and NGSO space station payors. Such a change would require fees on small regulatees that may not have been assessed regulatory fees under the existing methodology and may require small entities that have not previously paid regulatory fees to hire professionals to comply. Small entities that have previously paid regulatory fees may not need to hire professionals to comply because most should already be familiar with the Commission's current collection process and, as a result, are accustomed to paying the annual fees. For small licensees experiencing financial hardship, access to fee relief, via options such as waiver, reduction, deferral and/or installment payment of their regulatory fees may be available, and small entities may be exempt from paying a regulatory fee if the assessed fee is below the de minimis threshold that the Commission has established.

E. Discussion of Significant Alternatives Considered That Minimize the Significant Economic Impact on Small Entities

94. The RFA directs agencies to provide a description of any significant alternatives to the proposed rules that would accomplish the stated objectives of applicable statutes, and minimize any significant economic impact on small entities. The discussion is required to include alternatives such as: “(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 and reporting requirements under the rule for such small entities; (3) the use of performance rather than design ( printed page 25482) standards; and (4) an exemption from coverage of the rule, or any part thereof, for such small entities.”

95. Assessment of Regulatory Fees. The Commission's long-standing methodology for assessing regulatory fees reflects the full-time equivalent number of employees within the Commission's bureaus and offices, 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. In making such adjustments to establish our regulatory fee schedule for FY 2025, following a high-level staff analysis of the time utilized in the oversight and regulation of certain segments of the telecommunications industry, we propose reallocating certain indirect FTEs as direct to one of the Commission's core licensing bureaus. Our proposals reflect our conclusion that we can determine, with reasonable accuracy for this fiscal year, that certain FTE time from the Office of General Counsel, the Office of Economics and Analytics, and the Public Safety and Homeland Security Bureau is devoted to work that is sufficiently linked to the oversight and regulation of regulatory fee payors in a core bureau such that the FTE burden of that work should be allocated as direct to a licensing bureau for regulatory fee purposes.

96. For FY 2025, we propose that 63 indirect FTEs could be reallocated as direct FTEs to a relevant core bureau for purposes of calculating regulatory fees for FY 2025, which could reduce regulatory fee obligations for some small and other regulatory payees. Additionally, consistent with the Commission's determination for the past two fiscal years, we propose to reallocate two direct FTEs from the Media Bureau to be indirect FTEs because the nature of their work is sufficiently linked to work that is similar to that performed in the Enforcement Bureau, which has previously been categorized as indirect. These reallocations result in an overall proposed increase of 61 indirect FTEs being reallocated as direct FTEs to core bureaus. We find that these proposed reallocations are consistent with section 9 of the Communications Act, which requires us to determine regulatory fees based on FTEs.

97. Additionally, on February 25, 2025, the Commission released the FY 2025 Space and Earth Station Regulatory Fees FNPRM seeking additional comment on proposed changes to the regulatory fee methodology used for assessing space and earth station regulatory fees. In the current NPRM, we propose regulatory fee rates based on the existing methodology, as well as the proposals set forth in the FY 2025 Space and Earth Station Regulatory Fees FNPRM. However, the proposed space and earth station regulatory fee rates are estimates because the final space and earth station regulatory fee rates are dependent upon the outcome of the Space and Earth Station Regulatory Fees proceeding. Accordingly, the NPRM does not seek additional comment on proposed alternatives specific to those in the FY 2025 Space and Earth Station Regulatory Fees FNPRM. Alternatively, the Commission seeks comment on the proposed adjusted schedule of regulatory fees for space and earth station payors located in Table 7 of the NPRM. If any of the proposals are adopted as part of the subsequent Space and Earth Station Regulatory Fees Report and Order, it may increase or reduce the regulatory fee burden on some satellite entities.

98. Broadcast Regulatory Fees. The NPRM proposes whether the Commission should continue to assess fees for full-power broadcast television stations based on the population covered by a full-service broadcast television station's contour which may reduce the economic impact of the regulatory fees for some small licensees. While the population-based methodology increases fees for some licensees and reduces fees for others, the Commission believes the population-based metric better conforms with the service of broadcasting television to the American people.

99. Broadcast Regulatory Fees. In the NPRM, 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 which may reduce the economic impact of the regulatory fees for some small licensees. While the population-based methodology increases fees for some licensees and reduces fees for others, we believe the population-based metric better conforms with the service of broadcasting television to the American people. In addition, small licensees experiencing financial hardship will continue to have access to fee relief, such as waiver, reduction, deferral and/or installment payment of their regulatory fees and may be exempt from paying a regulatory fee if the assessed fee is below the de minimis threshold that the Commission has established.

100. Temporary Relief Measures Due to Economic Effects of COVID-19 Pandemic. During the COVID-19 pandemic and through FY 2023, the Commission provided certain temporary relief to regulatory fee payors experiencing financial hardship caused or exacerbated by the COVID-19 pandemic through a combination of partial rule waivers and direction to the Office of the Managing Director in exercising its delegated authority. In the NPRM, we do not plan to implement these temporary measures for FY 2024. The circumstances for which the measures were temporarily implemented have changed. The National Emergency COVID-19 pandemic has ended and the national economy is rebounding. We recognize that some regulatory fee payors may be experiencing lingering or continuing financial difficulties related to the pandemic's economic effects, but we believe that sections 1.1166 and 1.1914 of our rules, now streamlined and simplified, offer those fee payors a straightforward path to regulatory fee relief.

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

101. None.

VII. Ordering Clauses

102. 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 Notice of Proposed Rulemaking is hereby adopted.

103. It is further ordered that the Commission's Office of the Secretary shall send a copy of this Notice of Proposed Rulemaking, including the Initial Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration.