[Federal Register: July 21, 2005 (Volume 70, Number 139)]
[Rules and Regulations]
[Page 41967-41995]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21jy05-17]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket Nos. 05-59 and 04-73; FCC 05-137]
Assessment and Collection of Regulatory Fees for Fiscal Year
2005; Assessment and Collection of Regulatory Fees for Fiscal Year 2004
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, we conclude a proceeding to collect
$280,098,000 in regulatory fees for Fiscal Year (FY) 2005. These fees
are mandated by Congress and are collected to recover the regulatory
costs associated with the Commission's enforcement, policy and
rulemaking, user information, and international activities. We also
deny the petition for reconsideration filed by Cingular Wireless LLC of
the Commission's FY 2004 Report and Order.
DATES: Effective August 22, 2005.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444 or Rob Fream, Office of Managing Director at
(202) 418-0408.
SUPPLEMENTARY INFORMATION:
Adopted: July 1, 2005.
Released: July 7, 2005.
By the Commission: Commissioner Copps concurring and issuing a
statement; Commissioner Adelstein approving in part, concurring in
part, and issuing a statement.
Table of Contents
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Paragraph
Heading No.
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I. Introduction........................................... 1
II. Discussion............................................ 2
A. Development of FY 2005 Fees........................ 2
1. Calculation of Revenue and Fee Requirements.... 2
2. Additional Adjustments to Payment Units........ 3
3. Commercial Mobile Radio Service (CMRS) 5
Messaging Service................................
4. Local Multipoint Distribution Service (LMDS)... 6
5. International Bearer Circuits.................. 8
6. Regulatory Fees for Direct Broadcast Service 10
(DBS) Providers and Cable Television Operators...
7. Multichannel Video Distribution and Data 12
Service (MVDDS)..................................
8. Broadband Radio Service (BRS) / Educational 13
Broadband Service (EBS), (formerly MDS/MMDS and
ITFS)............................................
9. Regulatory Fees for AM and FM Construction 14
Permits..........................................
10. Clarification of Policies and Procedures...... 16
a. Ad Hoc Issues Concerning Our Regulatory Fee 16
Exemption Policies...........................
b. Regulatory Fee Obligations for Digital 23
Broadcasters.................................
c. Regulatory Fee Obligations for AM Expanded 24
Band Broadcasters............................
d. Effective Date of Payment of Multi-Year 26
Wireless Fees................................
11. Notification, Assessment and Collection of 27
Regulatory Fees..................................
a. Interstate Telecommunications Service 29
Providers (ITSPs)............................
b. Satellite Space Station Licensees.......... 31
c. Media Services Licensees................... 34
d. Cable Television Subscribers............... 36
B. FY 2005 Fee Determination and FY 2004 38
Reconsideration......................................
12. Commercial Mobile Radio Service (CMRS) 38
Providers........................................
III. Procedural Matters................................... 45
A. Payment of Regulatory Fees......................... 45
1. De Minimis Fee Payment Liability............... 45
2. Standard Fee Calculations and Payment Dates for 46
Annual Regulatory Fees...........................
3. Limitations on Credit Card Transactions........ 48
B. Enforcement........................................ 49
C. Congressional Review Act Analysis.................. 51
IV. Ordering Clauses...................................... 52
Attachments:
Attachment A Final Regulatory Flexibility Analysis
Attachment B Sources of Payment Unit Estimates for
FY2005
Attachment C Calculation of Revenue Requirements and
Pro-Rata Fees
Attachment D FY 2005 Schedule of Regulatory Fees
Attachment E Factors, Measurements, and Calculations
that Determine Station Contours and Population
Coverages
Attachment F List of Commenters
Attachment G FY 2004 Schedule of Regulatory Fees
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[[Page 41968]]
I. Introduction
1. In this Order, we conclude a proceeding to collect $280,098,000
in regulatory fees for Fiscal Year (FY) 2005. These fees are mandated
by Congress and are collected to recover the regulatory costs
associated with the Commission's enforcement, policy and rulemaking,
user information, and international activities.\2\ We also deny the
petition for reconsideration filed by Cingular Wireless LLC of the
Commission's FY 2004 Report and Order.\3\
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\2\ 47 U.S.C. 159(a).
\3\ Assessment and Collection of Regulatory Fees for Fiscal Year
2004, Report and Order, 19 FCC Rcd 11,662 (2004) (FY 2004 Report and
Order); see infra paras. 38-41.
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II. Discussion
A. Development of FY 2005 Fees
1. Calculation of Revenue and Fee Requirements
2. As explained below, we adjust our section 9 regulatory fees to
reflect the requirement to collect $280,098,000 in regulatory fees
during FY 2005. As described in the FY 2005 NPRM,\4\ this adjusted
amount is $7,140,000, or approximately 2.6 percent greater than the
$272,958,000 we were required to collect during the previous fiscal
year. Each fiscal year, the Commission proportionally allocates the
total amount that must be collected via regulatory fees. The results of
this calculation are contained in Attachment C.\5\ For FY 2005, this
allocation was done using FY 2004 revenues as a base. From this base, a
revenue amount for each fee category was calculated. Each fee category
was then adjusted upward by 2.6 percent to reflect the increase in
regulatory fees from FY 2004 to FY 2005. These FY 2005 amounts were
then divided by the number of payment units in each fee category to
determine the unit fee.\6\ In instances of small fees, such as licenses
that are renewed for a multiyear term, the resulting unit fee was also
divided by the term of the license. These unit fees were then rounded
to the nearest $5 or $25 in accordance with 47 U.S.C. 159(b)(2).
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\4\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2005, Notice of Proposed Rulemaking, 70 FR at 9575, 9576, para.
5, (2005) (FY 2005 NPRM).
\5\ It is important to note that the required increase in
regulatory fee payments of approximately 2.6 percent in FY 2005 is
reflected in the revenue that is expected to be collected from each
service category. Because this expected revenue is adjusted each
year by the number of estimated payment units in a service category,
the actual fee itself is sometimes increased by a number other than
2.6 percent. For example, in industries where the number of units is
declining and the expected revenue is increasing, the impact of the
fee increase may be greater.
\6\ In most instances, the fee amount is a flat fee per licensee
or regulatee. However, in some instances the fee amount represents a
unit subscriber fee (such as for Cable, Commercial Mobile Radio
Service (CMRS) Cellular/Mobile and CMRS Messaging), a per unit fee
(such as for International Bearer Circuits), or a fee factor per
revenue dollar (Interstate Telecommunications Service Provider fee).
The payment unit is the measure upon which the fee is based, such as
a licensee, regulatee, subscriber, etc.
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2. Additional Adjustments to Payment Units
3. In calculating the FY 2005 regulatory fees in Attachment D, we
further adjusted the FY 2004 list of payment units (Attachment B) based
upon licensee databases and industry and trade group projections.
Whenever possible, we verified these estimates from multiple sources to
ensure the accuracy of these estimates. In some instances, Commission
licensee databases were used, while in other instances, actual prior
year payment records and/or industry and trade association projections
were used in determining the payment unit counts.\7\ Where appropriate,
we adjusted and/or rounded our final estimates to take into
consideration variables that may impact the number of payment units,
such as waivers and/or exemptions that may be filed in FY 2005, and
fluctuations in the number of licensees or station operators due to
economic, technical or other reasons. Therefore, when we note that our
estimated FY 2005 payment units are based on FY 2004 actual payment
units, we may have rounded the number for FY 2005 or adjusted it
slightly to account for these variables.
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\7\ The databases we consulted include, but are not limited to,
the Commission's Universal Licensing System (ULS), International
Bureau Filing System (IBFS), and Consolidated Database System
(CDBS). We also consulted industry sources including but not limited
to Television & Cable Factbook by Warren Publishing, Inc. and the
Broadcasting and Cable Yearbook by Reed Elsevier, Inc., as well as
reports generated within the Commission such as the Wireline
Competition Bureau's Trends in Telephone Service and the Wireless
Telecommunications Bureau's Numbering Resource Utilization Forecast
and Annual CMRS Competition Report. For additional information on
source material, see Attachment B.
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4. We consider additional factors to determine regulatory fees for
AM and FM radio stations. These factors are facility attributes (class
of service and type (AM or FM) of service), as well as the population
served by the radio station. Calculating the population served for each
radio station is determined by coupling current U.S. Census Bureau data
with technical and engineering data, as detailed in Attachment E.
Consequently, the class and type of service, as well as the population
served, determine the regulatory fee amount to be paid.
3. Commercial Mobile Radio Service (CMRS) Messaging Service
5. In the FY 2005 NPRM, the Commission proposed to continue its
policy of maintaining the CMRS Messaging Service regulatory fee at the
rate calculated in FY 2003 and FY 2004 to avoid further contributing to
the financial hardships associated with a declining subscriber base.\8\
We received no comments or reply comments on this matter. Consequently,
we will maintain the CMRS Messaging Service regulatory fee at $0.08 per
subscriber.
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\8\ See FY 2005 NPRM, 70 FR at 9576, para. 5.
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4. Local Multipoint Distribution Service (LMDS)
6. In the FY 2004 proceeding, the Commission identified a
difference in treatment between LMDS Block A and Block B licensees for
the purposes of assessing section 9 regulatory fees. This difference
resulted in a disproportionately higher fee obligation on LMDS Block B
licenses when compared on a per-megahertz (MHz) basis.\9\ As a result,
in the FY 2005 NPRM, we proposed to amend the fee schedule and assess
LMDS regulatory fees on a flat MHz basis.\10\ We received two comments
on this proposal. These commenters oppose the proposal to collect LMDS
regulatory fees on a per-MHz basis, arguing that the Commission cannot
use a per-MHz regulatory fee for LMDS without using the same fee
methodology for the 24 GHz and 39 GHz services.\11\ We decline to adopt
a per-MHz fee methodology for LMDS at this
[[Page 41969]]
time, and we will therefore retain our existing methodology for
assessing LMDS fees for FY 2005.\12\
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\9\ FY 2004 Report and Order, 19 FCC Rcd 11,662, 11,669, para.
16. Block A licenses are authorized for 1150 MHz of spectrum, while
Block B licenses are authorized for 150 MHz of spectrum. Using the
authorized bandwidth for each license as the basis for comparison,
the Commission noted that the regulatory fee for Block B licenses in
FY 2004 was significantly higher on a per-MHz basis than the fee for
Block A licenses. On a per-MHz basis, Block B licensees, which are
authorized for 150 MHz in the 31,000-31,075/31,225-31,300 MHz bands,
paid regulatory fees equivalent to $1.80 per MHz ($270 divided by
150 MHz) in FY 2004, while Block A licensees, which are authorized
for 1150 MHz of spectrum, paid the equivalent $0.24 per MHz ($270
divided by 1150 MHz).
\10\ FY 2005 NPRM, 70 FR at 9577, para. 7. The Commission
proposed to set a per-MHz per unit fee of $0.44 for LMDS licensees,
and then multiply the unit fee by the amount of bandwidth authorized
for Block A and Block B licenses. As proposed, in FY 2005 the
regulatory fee amount for Block A licensees would have been $0.44
multiplied times 1150 MHz = $506, rounded to $505; while the amount
for Block B licensees would have been $0.44 multiplied times 150 MHz
= $66, rounded to $65.
\11\ Comments of XO Communications (XO), at 2-7; Comments of the
Law Firm of Blooston, Mordkofsky, Dickens, Duffy & Prendergast
(BMDDP), at 2-4.
\12\ However, we may revisit the per-MHz and other fee
methodologies in the future.
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7. The commenters also argued that LMDS should be reclassified for
fee assessment purposes as a microwave service.\13\ The Commission
determined in its FY 2003 fee proceeding that LMDS was developing on a
separate track from microwave services and that it should be moved into
a separate fee category.\14\ The Commission subsequently rejected
arguments to place LMDS in the microwave fee category in the FY 2004
Report and Order.\15\ XO and BMDDP have presented no new evidence or
arguments that would cause us to reconsider that decision. We find no
compelling reason to reclassify LMDS as a microwave service, which
would reduce the LMDS annual fee by more than 80 percent, and thereby
impose a disproportionate financial burden on fee payers in other
service categories. We therefore will maintain the existing regulatory
fee classification for LMDS for FY 2005.
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\13\ XO Comments at 2-5; BMDDP Comments at 4-5.
\14\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2003, Report and Order, 18 FCC Rcd 15,985, 15,989, at para. 9
(2003) (FY 2003 Report and Order).
\15\ FY 2004 Report and Order, 19 FCC Rcd at 11,669, para. 16.
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5. International Bearer Circuits
8. We decline to change or modify the methodology for assessing
regulatory fees for international carriers at this time. In the FY 2005
NPRM, we sought comment on possible changes to the regulatory fees
assessed on international carriers.\16\ Only three parties filed
comments and/or reply comments on this matter.\17\ The Commission
currently assesses regulatory fees on international carriers based on
the number of active international bearer circuits the carrier had the
previous year.\18\
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\16\ FY 2005 NPRM, 70 FR at 9577, 9578, paras. 11-17.
\17\ Tyco filed comments and reply comments, SIA filed comments
and Level 3 filed reply comments that addressed the international
bearer circuit issue. The parties generally argued that the current
methodology for assessing regulatory fees on the number of active
circuits favors older, lower capacity systems, and a fee system
based on cable landing licenses and international section 214
authorizations would be administratively simpler and provide an
incentive for carriers to initiate new services.
\18\ Regulatory fees for International Bearer Circuits are to be
paid by facilities-based common carriers that have active
international bearer circuits in any transmission facility for the
provision of service to an end user or resale carrier, which
includes active circuits to themselves or to their affiliates. In
addition, non-common carrier satellite operators must pay a fee for
each circuit sold or leased to any customer, including themselves or
their affiliates, other than an international common carrier
authorized by the Commission to provide U.S. international common
carrier services. Non-common carrier submarine cable operators are
also to pay fees for any and all international bearer circuits sold
on an indefeasible right of use (IRU) basis or leased to any
customer, including themselves or their affiliates, other than an
international common carrier authorized by the Commission to provide
U.S. international common carrier services. See Assessment and
Collection of Regulatory Fees for Fiscal Year 2001, MD Docket No.
01-76, Report and Order, 16 FCC Rcd 13525, 13593 (2001); Regulatory
Fees Fact Sheet: What You Owe--International and Satellite Services
Licensees for FY 2004 at 3 (rel. July 2004) (the fact sheet is
available on the FCC Web site at: http://hraunfoss.fcc.gov/edocs_
public/attachmatch/DOC-249904A4.pdf).
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9. We are not persuaded by these commenters that a significant
change to our section 9 regulatory fee assessment methodology for
international bearer circuits is warranted at this time, or that the
benefits of changing our assessment methodology outweigh the costs of
modifying our systems and processes at this time. We decline to adopt
the Tyco proposal to create a new, separate fee category for non-common
carrier cable landing licensees at this time.\19\ As a practical
matter, we note that we have at present no acceptable methodology for
allocating fee requirement between categories of payers.\20\ Even if we
had an acceptable methodology, we would not be able to undertake the
required analysis in time for FY 2005 fee payments and still comply
with the section 9(b)(3) notification requirement. Moreover, because
creating a new section 9 regulatory fee category would impact other
international carriers, we would want to address the issue of
regulatory fee payments by international carriers as a whole and not
make discrete changes for one category of payers at this time. In
addition, we conclude that Tyco's main concern is addressed by
modifying the section 9 regulatory fee for international bearer
circuits rather than creating an entirely new category of section 9
regulatory fees. To that end, we note that these fees have declined
substantially, due to increased capacity in the active circuit market:
The FY 2005 section 9 fee assessment of $1.37 per 64 kbps circuit is
just over half the $2.52 per 64 kbps circuit fee adopted for FY 2004,
and is 32% below the $2.01 per 64 kbps circuit proposed in the FY 2005
NPRM. For these reasons, we find that it would not be appropriate to
change the fee assessment for international carriers for FY 2005. We
note that in the FY 2005 NPRM, we stated that we would not implement
any changes to the bearer circuit fee assessment methodology for this
FY 2005 collection cycle.\21\
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\19\ Tyco Comments at 7-8. We may revisit this determination in
the regulatory fee proceeding for FY 2006.
\20\ Tyco proposes that the Commission use either employee or
employee-hour equivalents to establish the regulatory fee
requirements for non-common carrier cable landing licensees. Tyco
Comments at 23-25.
\21\ FY 2005 NPRM, 70 FR at 9578, para. 16.
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6. Regulatory Fees for Direct Broadcast Service (DBS) Providers and
Cable Television Operators
10. We decline to modify the FY 2005 regulatory fee assessment
methodology for DBS providers in response to the comments of the
National Cable and Telecommunications Association (NCTA) and American
Cable Association (ACA). NCTA argues that cable operators pay a
disproportionately larger amount of the Commission's regulatory fees as
compared to DBS providers, despite the fact that they are similarly
situated competitors.\22\ NCTA proposes that the Commission adopt the
same per-subscriber assessment for DBS operators that applies to cable
television operators. DirecTV, Inc. and Echostar Satellite L.L.C.
(DirecTV & Echostar), in joint reply comments, argue that the cable
operators have failed to make the required showing to satisfy the legal
standard in section 9 of the Act for changes to the Commission's
regulatory fee structure.\23\ DirecTV and Echostar further argue that
the costs to the Commission of regulating cable exceed those associated
with DBS.\24\
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\22\ Comments of NCTA at 4-8. See also ACA Comments at 2-3
(arguing that the difference in regulatory fee treatment increases
the burden on cable operators in small markets).
\23\ Reply Comments of DirectTV and Echostar at 3.
\24\ Id. at 5.
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11. We agree that the cable commenters have not made a compelling
argument, consistent with the standard set forth in section 9(b)(3) for
``permitted amendments'', to justify a change to the section 9
regulatory fees for DBS operators. Moreover, the Commission has not
provided notice for a change to the fee methodology for DBS operators.
However, the Commission may seek further information on this issue
during FY 2006 in order to fully explore whether there is a legal basis
for such a change and to analyze the impact of any change in the
methodology used to assess fees both for DBS providers and cable
television operators. Therefore, for FY 2005, we will continue to use
our current methodology for assessing regulatory fees for cable
television operators and DBS operators.
[[Page 41970]]
7. Multichannel Video Distribution and Data Service (MVDDS)
12. We decline to establish a MVDDS regulatory fee category at this
time. In our FY 2005 NPRM, we proposed that, since MVDDS licenses were
first awarded in 2004 and equipment is still under development, we
would not establish MVDDS as a new regulatory fee category in FY
2005.\25\ We received no comments or reply comments on this matter. We
therefore adopt our proposal and will not establish a MVDDS regulatory
fee category for FY 2005.
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\25\ FY 2005 NPRM, 70 FR at 9579, para. 21.
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8. Broadband Radio Service (BRS)/Educational Broadband Service (EBS)
(Formerly MDS/MMDS and ITFS)
13. We note that the BRS/EBS proceeding is currently pending.\26\
As we stated in the FY 2005 NPRM, we are exploring regulatory fee
assessment issues for BRS/EBS in that proceeding.\27\ To the extent we
adopt any changes to our regulatory fee rules in that proceeding, such
changes will not be effective in time for the FY 2005 regulatory fee
assessments. We expect to make any appropriate adjustments in the FY
2006 regulatory fee cycle or later.
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\26\ See Amendment of Parts 1, 21, 73, 74 and 101 of the
Commission's Rules to Facilitate the Provision of Fixed and Mobile
Broadband Access, Educational and Other Advanced Services in the
2150-2162 and 2500-2690 MHz Bands et al., Report & Order and Further
Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14293-97 (2004)
(R&O and FNPRM).
\27\ FY 2005 NPRM, 70 FR at 9579, paras. 22-23.
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9. Regulatory Fees for AM and FM Construction Permits
14. At the inception of our regulatory fee program in FY 1994, the
regulatory fee amount for construction permits was set at an amount
that, when compared to licensed stations, was commensurate to the
limited nature of station operations under the terms of a construction
permit. However, since 1994, the amount of fees that we have been
directed to collect each year has steadily increased, while the number
of estimated payment units for these construction permits has steadily
decreased. This combination of increasing expected revenue and
decreasing payment units for these construction permits has resulted in
a regulatory unit fee that is higher than that of some licensed
stations.
15. To rectify this situation, we proposed to set the AM, FM, VHF,
and UHF construction permit fee to be no higher than the regulatory fee
associated with the lowest licensed station for that fee category,
noting that because there are unit and revenue variables in assessing
the per-unit regulatory fee, it may be necessary to make revenue
adjustments each fiscal year to keep the per unit regulatory fee for
construction permits at the level of the lowest licensed fee for AM,
FM, VHF, and UHF stations. We did not receive any comments or reply
comments on this matter. Therefore, beginning in FY 2005, we will hold
fee amounts for construction permits in each respective fee category
(e.g., AM, FM, VHF and UHF stations) to levels no higher than the
lowest fee amounts for licensed facilities in each respective fee
category, and if necessary, will make adjustments across only a narrow
group of media fee categories, such as AM, FM, VHF and UHF stations, to
keep the level of the lowest respective licensed fee.
10. Clarification of Policies and Procedures
a. Ad Hoc Issues Concerning Our Regulatory Fee Exemption Policies
16. Pursuant to 47 CFR 1.1162, the Commission does not establish
regulatory fees for applicants, permittees, and licensees who qualify
as government entities or non-profit entities. Despite the language of
47 CFR 1.1162, we still frequently encounter uncertainty and comments
from parties with respect to our fee exemption policies. In our FY 2005
NPRM, we proposed certain clarifications to our exemption policies.\28\
We received no comments or reply comments regarding our fee exemption
policies. Therefore, we will be incorporating these clarifications into
the text of the regulatory fee public notices that are generated each
year prior to the collection of regulatory fees.
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\28\ FY 2005 NPRM, 70 FR at 9579, 9580, paras. 26-30.
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17. Terminology: In the ensuing discussion, ``facility'' includes
``station'' and ``licensee'' includes ``permittee.'' ``October 1''
means the close of business on October 1, the first day of the
government fiscal year. ``Fee Due Date'' means the close of business on
the day determined to be the final date by which regulatory fees must
be paid. The Fee Due Date usually occurs in August or September. An
``Exempt Entity'' is a legal entity that is relieved of the burden of
paying annual regulatory fees.
18. Determination of Fee Code for a Facility: The fee code is
determined by the operational status of the facility as of October 1 of
each year. This involves factors such as whether the facility is in a
Construction Permit (CP) or Licensed status and a variety of other
factors. Every facility has a fee code.
19. Facility Changes During the Year: There is no prorating of
regulatory fees. For example, if a facility is in construction permit
status as of the close of business October 1, but a license is granted
on or after October 2, that facility is considered to be in
construction permit status for the entire year. Other facility changes
during the course of the year, such as technical changes, are treated
in the same manner.
20. Establishment of Exempt Status: State, local, and Federal
government agencies and IRS-certified not-for-profit entities are
generally exempt from payment of regulatory fees. The Commission
requires that each exempt entity have on file a valid IRS Determination
Letter or certification from a government authority documenting its
exempt status. In instances where there is a question regarding the
exempt status of an entity, the FCC may request, at any time, for the
entity to submit an IRS Determination Letter or certification from a
government authority that documents its exempt status.
21. Subsidiaries of Exempt Entities: The licensee of a facility may
be distinct from the ultimate owner. Exempt entities may hold one or
more licenses for media facilities directly and/or through
subsidiaries. Facilities licensed directly to an exempt entity and its
exempt subsidiaries are excused from the regulatory fee obligation.
However, licensees that are for-profit subsidiaries of exempt entities
are subject to regulatory fees regardless of the exempt status of the
ultimate owner.
Examples
A University owns a commercial facility whose profits are used to
support the University and/or its programs. If the facility is licensed
to the University directly, or to an exempt subsidiary of the
University, it is exempt from regulatory fees. If, however, the license
is held by a for-profit subsidiary, regulatory fees are owed, even
though the University is an exempt entity.
A state pension fund is the majority owner of a for-profit
commercial broadcasting firm. The facilities licensed to the for-profit
broadcasting firm would be subject to regulatory fees, even though it
is owned by an exempt agency.
22. Responsible Party, and the Effects of Transfers of Control: The
entity holding the license for a facility as of the Fee Due Date is
responsible for the regulatory fee for that facility. Eligibility for a
regulatory fee exemption is determined by the status of the licensee
[[Page 41971]]
as of the Fee Due Date, regardless of the status of any previous
licensee(s).
b. Regulatory Fee Obligations for Digital Broadcasters
23. In our FY 2005 NPRM, we noted that our current schedule of
regulatory fees does not include service categories for digital
broadcasters.\29\ Licensees in the broadcast industry pay regulatory
fees based on their analog facilities. For licensees that broadcast in
both the analog and digital formats, the only regulatory fee obligation
at the present time is for their analog facility. Moreover, a licensee
that has fully transitioned to digital broadcasting and has surrendered
its analog spectrum would have no regulatory fee obligation under the
current fee regime. We sought comment on whether to establish a
regulatory fee category for digital broadcasters, but received no
comments or reply comments on this matter.\30\ At this time, we will
maintain the regulatory fee obligation that applies only for the analog
facility.
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\29\ Id. at 9580, para. 31.
\30\ Id., para. 33.
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c. Regulatory Fee Obligations for AM Expanded Band Broadcasters
24. We do not require AM Expanded Band radio stations to pay
section 9 regulatory fees for their expanded band AM station at this
time. In the FY 2005 NPRM, we proposed to clarify this point and to
explain that licensees that operate a standard band AM station (540-
1600 kHz) that is linked to an AM Expanded Band station are subject to
regulatory fees for their standard band station only.\31\ We recognized
uncertainty about the regulatory fee status in the industry that
resulted from the fact that AM Expanded Band radio service is not among
the Commission's categories of general exemptions from regulatory fees
specified in the Commission's rules.\32\ We received no comments or
reply comments on this matter.
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\31\ Id., para. 34-36.
\32\ 47 CFR 1.1162.
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25. We will continue to refrain from requiring AM Expanded Band
radio stations to pay section 9 regulatory fees for their stations.
However, we note that our decision not to require section 9 regulatory
fee payments for AM Expanded Band stations is not a permanent exemption
from regulatory fees for AM Expanded Band Radio Service. Because the
movement to the expanded band is voluntary and helps to reduce
interference in the standard bandwidth, we will continue our policy of
not subjecting this relatively small group of stations to regulatory
fees. However, at some future point when the migration of standard band
broadcasters to the Expanded Band has advanced, we may consider
establishing Sec. 9 regulatory fee requirements for AM Expanded Band
stations.
d. Effective Date of Payment of Multi-Year Wireless Fees
26. The first eleven fee categories in our Attachment D, Schedule
of Regulatory Fees, constitute a general fee category known as multi-
year wireless fees. Regulatory fees for this category are generally
paid in advance, and for the amount of the entire 5-year or 10-year
term of the license. Because regulatory fees are paid at the time of
license renewal (or at the time of a new application), these fees can
be paid at any time during the fiscal year. As a result, there has been
some confusion as to the regulatory fee rate that should apply at the
time of license renewal. Current fiscal year regulatory fees generally
become effective 30 or 60 days after publication of the fees Order in
the Federal Register, or in some instances, 90 days after delivery of
the Order to Congress. Current procedures regarding the renewal of
multi-year wireless fees stipulate that licensees may submit their fee
payments no more than 90 calendar days prior to the expiration of their
licenses. The regulatory fee rate that applies at the time of renewal
(or at the time of an application for a new license) depends on the
date that payment is physically received within the 90 day period, and
how this date relates to the ``effective date'' of the current fiscal
year regulatory fees. Generally, the ``effective date'' of the current
fiscal year regulatory fees is published in our fee public notices soon
after the Order is released. If the renewal payment (or application of
a new license) is physically received before the ``effective date,''
the prior fiscal year regulatory fee rate applies. If the renewal
payment (or application of a new license) is physically received on or
after the ``effective date'', the current fiscal year regulatory fee
rate applies.
11. Notification, Assessment and Collection of Regulatory Fees
27. Each year, we generate public notices and fact sheets that
notify regulatees of the fee payment due date and provide additional
information regarding regulatory fee payment procedures. Accordingly,
in FY 2005, as in prior years, we will make available to all regulatees
these public notices, fact sheets and other relevant fee payment
information on our Web site at http://www.fcc.gov/fees/regfees.html. In
the event that regulatees do not have access to the Internet, we will
mail public notices and other relevant materials upon request.
Regulatees and the general public may request such information by
contacting the FCC CORES HelpDesk at (877) 480-3201, Option 4.
28. In addition to making the above information available on-line
for all of our regulatees, we proposed in our FY 2005 NPRM to send
specific regulatory fee assessments or bills by surface mail to
regulatees in a select group of fee categories.\33\ We are pursuing our
billing initiatives as part of our effort to modernize our financial
practices. Eventually, we may expand our billing initiatives to include
all regulatory fee service categories. For now, based on the results of
our assessment and billing initiatives from last year, and the
resources currently available to us, we will proceed with our various
FY 2005 initiatives as described below.
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\33\ FY 2005 NPRM, 70 FR at 9575, paras. 38-61. We clarify the
distinction between an assessment and a bill. An ``assessment'' is a
proposed statement of the amount of regulatory fees owed by an
entity to the Commission (or proposed subscriber count to be
ascribed for purposes of setting the entity's regulatory fee). An
assessment is not entered into the Commission's accounts receivable
system as a current debt. A ``bill'' is automatically entered into
our financial records as a debt owed to the Commission. Bills
reflect the amount owed and have a due date of the last day of the
fee payment window. Consequently, if a bill is not paid by the due
date, it becomes delinquent and is subject to our debt collection
procedures. See also 47 CFR 1.1161(c), 1.1164(f)(5), 1.1910.
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a. Interstate Telecommunications Service Providers (ITSPs)
29. In FY 2001, we began sending pre-completed FCC Form 159-W
assessments to carriers in an effort to assist them in paying the
Interstate Telecommunications Service Provider (ITSP) regulatory
fee.\34\ The fee amount on FCC Form 159-W was calculated from the FCC
Form 499-A report, which carriers are required to submit by April 1st
of each year. Throughout FY 2002 and FY 2003, we refined the FCC Form
159-W to simplify the regulatory fee payment process.\35\ In FY 2004,
we generated and mailed the same pre-completed FCC Form 159-W's to
carriers under the same dissemination procedures, but we informed them
that we will be treating the amount due on Form 159-W as a bill, rather
than as an
[[Page 41972]]
assessment. Other than the manner in which Form 159-W payments were
entered into our financial system, carriers experienced no procedural
changes regarding the use of the FCC Form 159-W when submitting payment
of their FY 2004 ITSP regulatory fees. In our FY 2005 NPRM, we sought
comment on this billing initiative and on ways to improve it.
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\34\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2001, Report and Order, 16 FCC Rcd 13525, at 13590, para. 67
(2001) (FY 2001 Report and Order). See also FCC Public Notice--
Common Carrier Regulatory Fees (August 3, 2001) at 4.
\35\ Beginning in FY 2002, the Form 159-W included a payment
section that allowed carriers the opportunity to send in Form 159-W
in lieu of completing Form 159 Remittance Advice Form.
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30. We received no comments or reply comments on our ITSP billing
initiative for FY 2005. We will continue our ITSP, Form 159-W, billing
initiative in FY 2005.
b. Satellite Space Station Licensees
31. In FY 2004, for the first time, we mailed regulatory fee bills
through surface mail to all licensees in our two satellite space
station service categories. Specifically, geostationary orbit space
station (``GSO'') licensees received bills for their operational
satellites; \36\ and non-geostationary orbit space station (``NGSO'')
licensees received bills for their systems.\37\ In our FY 2005 NPRM, we
proposed to continue our billing initiative for our GSO and NGSO
satellite space station categories. We sought comment on this proposal
and received comments from the Satellite Industry Association
(``SIA'').
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\36\ ``Satellites'' are in operation on the first day of the
fiscal year and not co-located with and technically identical to
another operational satellite (i.e., not functioning as a spare
satellite) on the first day of the fiscal year.
\37\ ``Systems'' are licensed by the Commission and operational
on the first day of the fiscal year.
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32. SIA states that its members experienced a wide range of
problems with our billing system in FY 2004. For example, in some cases
licensees did not receive a pre-printed bill for all of their space
stations.\38\ Several satellite operators report that they received
bills that substantially undercounted the number of space stations for
which they owed fees. However, the bills that were issued in FY 2004
lacked call sign information, making it impossible for most operators
to determine which satellites were missing from their bills. SIA
offered suggestions for improving the process.\39\
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\38\ SIA Comments at 11.
\39\ Id. Specifically, SIA suggests: (1) Licensees should be
issued a single bill that lists all the space stations for which the
Commission believes the licensee owes fees; (2) call signs should be
included on bills so that licensees can verify the accuracy of the
billing information; (3) procedures should be in place to permit a
bill to be modified or supplemented if it is incorrect; (4) bills
should be mailed well in advance of the payment deadline so that
licensees have a reasonable period to review the bill, seek
additional information, if needed, and correct any errors prior to
the payment due date; and (5) the Commission staff members who are
knowledgeable about satellite licensing should be available to
assist licensees by answering questions and resolving problems.
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33. We have modified our Fee Filer online payment system so that it
will address most of SIA's suggested corrective measures.\40\ We will
address SIA's other suggestions by generating and mailing the bills at
the earliest allowable date after this FY 2005 Order becomes effective.
We will also ensure that we will have knowledgeable staff available to
assist licensees with their billing questions and to resolve any bill
disputes.
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\40\ Although the process of mailing one bill per space station
will continue unchanged, Fee Filer will automatically find and
consolidate all regulatory fees which have been billed, based upon
FCC Registration Number (FRN) and password entered. Information that
describes each individual fee will include FRN, call sign, and the
fee amount. This information will be subject to review by the Fee
Filer user, who can then make modifications, deletions or additions
online. After the user confirms the details of each fee, he/she may
print a one-page Remittance Voucher which is to accompany the
payment. The one-page Remittance Voucher will reflect the total
payment and the detail applicable to that summary payment.
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c. Media Services Licensees
34. In our FY 2005 NPRM, we proposed that we would continue to
generate regulatory fee assessment postcards for media services
following the same procedures we used in FY 2004. We noted that we mail
the postcards on a per-facility basis and that they serve to provide
parties with the fee payment due date and the assessed fee amount for
the facility (as well as the data attributes that were used to
determine the amount).\41\ We received no comments or reply comments on
our proposal. We will continue our assessment initiative for media
services entities as we originally proposed. Specifically, we will mail
a single round of postcards to licensees and their other known points
of contact in our Consolidated Database System (CDBS) and Commission
Registration System (CORES)--our two official databases for media
services. By doing so, licensees and their points of contact will all
be furnished with the same fee information for the facility in
question. The postcards will direct parties to a Commission-authorized
Web site to update or correct fee information regarding the facility,
or to certify their fee-exempt status if need be.\42\ The postcards
will also provide the telephone number of our FCC CORES Help Desk at
(877) 480-3201, Option 4, in the event that parties need additional
assistance.
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\41\ Fee assessments were issued for AM and FM Radio Stations,
AM and FM Construction Permits, FM Translators/Boosters, VHF and UHF
Television Stations, VHF and UHF Television Construction Permits,
Satellite Television Stations, Low Power Television (LPTV) Stations,
and LPTV Translators/Boosters. Fee assessments were not issued for
broadcast auxiliary stations, nor will they be issued for them in FY
2005.
\42\ The Commission-authorized Web site will be available on-
line throughout this summer. The site's Web address is http://www.fccfees.com
.
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35. We emphasize that parties must still submit a completed Form
159 with their fee payment, despite having received an assessment
postcard. The postcards are not to be used as a substitute for
completing a Form 159. We cannot guarantee that a party's regulatory
fees will be posted accurately against its account if a completed Form
159 is not returned with the fee payment. We also emphasize that the
facility ID is the most important data element that parties need to
include on their completed Form 159. The facility ID is a unique
identifier that never changes over the course of a facility's existence
(unlike its call sign). We prominently display each facility's facility
ID on its assessment postcard, and our Form 159 filing instructions
require that each facility's facility ID (and call sign) needs to be
provided. However, each year we typically receive many incomplete Form
159s that do not provide the facility ID of the facility whose fee is
being paid.
d. Cable Television Subscribers
36. We adopt our proposal to generate fee assessment letters for
cable operators who are on file as having paid FY 2004 regulatory fees
for their basic cable subscribers.\43\ We received no comments or reply
comments on this issue. Under our proposal, our assessment letter to
each operator would announce the due date for payment of FY 2005
regulatory fees; reflect the subscriber count for which the operator
paid FY 2004 regulatory fees; and request that the operator access a
Commission-authorized Web site to provide its aggregate count of basic
cable subscribers as of December 31, 2004--the date that cable
operators are to use as the basis for determining their regulatory fee
obligations for basic cable subscribers. If the number of subscribers
as of December 31, 2004 differs from the number paid for FY 2004,
operators would be required to provide a brief explanation for the
differing subscriber counts and indicate when the difference occurred.
Cable operators who do not have access to the Internet would be able to
contact the FCC CORES Help Desk at (877) 480-3201, Option 4, to provide
their subscriber count as of
[[Page 41973]]
December 31, 2004. Payment procedures for FY 2005 regulatory fees are
the same as they were in previous years. For example, cable operators
are to complete the FCC Form 159 Remittance Advice when making their
payment, and are to certify their December 31, 2004 subscriber count in
Block 30 of the Form 159.
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\43\ FY 2005 NPRM, 70 FR at 9583, para. 57.
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37. We also sought comment on a proposal to require the cable
television operators to annually report their basic subscriber counts
to the Commission prior to paying regulatory fees for the fiscal year
in question.\44\ The Commission proposed to use the reported subscriber
counts to audit regulatory fee payments that are collected later in the
fiscal year. NCTA was the only commenter on this proposal. NCTA agreed
that a June 1st reporting requirement could be met with accurate
subscriber information from the previous year and would not be unduly
burdensome for operators to file.\45\ We do not adopt a subscriber
reporting requirement at this time. We will continue to assess our need
for information to manage the regulatory fee assessment program and may
revisit this issue in the future.
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\44\ Id., paras. 60-61.
\45\ NCTA Comments at 2.
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B. FY 2005 Fee Determination and FY 2004 Reconsideration
12. Commercial Mobile Radio Service (CMRS) Providers
38. In this section, we address the arguments presented by Cingular
and CTIA in their comments to the FY 2005 NPRM. In addition, we address
Cingular's petition for reconsideration of the Commission's FY 2004
Report and Order and the comments filed in response to Cingular's
petition.\46\
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\46\ See Cingular Wireless LLC Petition for Reconsideration, MD
Docket No. 04-73, filed Aug. 6, 2004 (Cingular Petition). We
received comments in support of the Cingular Petition from CTIA--The
Wireless AssociationTM (CTIA) and joint comments from
seven wireless carriers (American Cellular Corporation, AT&T
Wireless Services, Inc., Dobson Cellular Systems, Inc., Nextel
Communications, Inc., Sprint Corporation, T-Mobile USA, Inc., and
Western Wireless Corporation) (Wireless Carriers). We also received
reply comments in support of the petition from the Rural
Telecommunications Group, Inc. (RTG).
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39. Prior to FY 2004, the Commission relied on Cellular, PCS, and
SMR providers to compute and submit the regulatory fee applicable to
them based on the number of their subscribers. Beginning in fiscal year
2004, the Commission decided to take an alternative approach and
adopted a system of mailing assessments to Cellular, PCS, and SMR
providers based on subscriber data contained in their Numbering
Resource Utilization Forecast (NRUF) reports.\47\ NRUF data is
collected by the North American Numbering Plan Administrator (NANPA) to
monitor the utilization of telephone numbers by carriers. For purposes
of assessing regulatory fees, the Commission uses the count of
``assigned'' telephone numbers (TN's) \48\ stated by carriers in their
NRUF reports (adjusted for porting).\49\ For carriers not required to
file NRUF reports, the self-computation method still applies.\50\
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\47\ FY 2004 Report and Order, 19 FCC Rcd at 11,675-76 para. 45.
\48\ ``Assigned'' numbers are ``numbers working in the Public
Switched Telephone Network under an agreement such as a contract or
tariff at the request of specific end users or customers for their
use, or numbers not yet working but having a customer service order
pending.'' Instructions for Utilization and Forecast Forms, FCC Form
502 (Jun. 2003).
\49\ The porting information is developed from the telephone
number porting database managed by the Local Number Portability
Administrator, NeuStar, Inc.
\50\ FY 2004 Report and Order, 19 FCC Rcd at 11,677 para. 49.
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40. We disagree with the arguments of Cingular, CTIA, and others
that the NRUF data are not sufficiently accurate for the purpose of
assessing regulatory fees for the three classes of Commercial Mobile
Radio Service (CMRS) providers--the Cellular Radiotelephone Service,
the Personal Communications Service (PCS), and the Specialized Mobile
Radio (SMR) Service. Evidence of the accuracy and reliability of the
NRUF data can be found in the fact that while the initial FY 2004
assessment letters calculated regulatory fees based on approximately
162.36 million numbers, the reconciliation process, based on provider
responses, revised the regulatory fee assessment by only 1.4 percent
(to 160.02 million numbers). Further evidence of the reliability of the
NRUF data is that in FY 2004, we issued 127 initial assessment letters
to CMRS providers. Only 3.2 percent of the respondents had adjustments
of greater than 5,000 subscribers but less than 20,000; and only 5.5
percent had adjustments of greater than 20,000 subscribers. This
experience indicates that NRUF data is sufficiently reliable and
accurate for the purposes of assessing section 9 regulatory fees. We
therefore reject Cingular's request to reconsider the use of NRUF data
in calculating FY 2004 fees for these three classes of CMRS carriers.
We will also continue to rely on the NRUF data for the FY 2005
regulatory fee assessments for these carriers.
41. Further, we find no basis for the assertion in Cingular's
petition that a lack of clarity in the NRUF definition of
``intermediate'' TN's (number made available for use by another
telecommunications carrier or non-carrier entity) unduly complicates
the correction process and makes the NRUF data unreliable.\51\ The
Commission's fee assessment is based only on the number of ``assigned''
TN's stated in the NRUF report. Thus, to the extent that a carrier
categorizes TN's as ``intermediate,'' it has no need to make a
correction.
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\51\ Cingular Petition at 4-5.
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42. These facts suggest that using NRUF data has not led to
inaccurate or unfair assessments for CMRS providers. They also
demonstrate that the Commission has a method to address and correct for
potential anomalies that the NRUF data may implicate. We therefore
disagree with Cingular and others that using NRUF data, combined with
the reconciliation process, may result in overpayment of regulatory
fees.\52\ In fact, using NRUF data, which is subject to verification,
will likely produce more accurate assessments than the self-assessment
method the Commission previously used. Our experience in FY 2004
indicates that--far from being overly burdensome--this process offers
CMRS providers an opportunity to correct potential errors in their data
for section 9 regulatory fee assessment purposes.\53\
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\52\ Cingular Petition at 3, 5-6.
\53\ Cingular Petition at 5-6. See also CTIA Comments at 3.
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43. We also reject the arguments of Cingular and others that the
two-step process that we established in the FY 2004 Report and Order--
sending an initial assessment letter, which a CMRS provider may
correct, followed by a final assessment letter--is unduly
burdensome.\54\ Cingular maintains that the correction process
contemplates a burdensome number-by-number reconciliation of the NRUF
data and a carrier's actual subscriber count. We clarify that carriers
are not required to perform number-by-number reconciliations when
making corrections. Carriers may make corrections on an aggregate
basis. We will review the letters, and decide whether to accept the
revised totals. Based upon this feedback, we will send out a second
assessment letter that will coincide with the payment period of
regulatory fees. This second assessment letter with aggregate totals
will constitute the basis upon which FY 2005 regulatory fees will be
paid. If we receive no response to our initial assessment letter within
21 days, we will assume that no corrections are required and the final
assessment letter, which is mailed approximately 30 days
[[Page 41974]]
after the initial letter, will base the fee payment due on the number
of subscribers listed on the initial assessment. In response to
Cingular's questions as to whether the Commission intends to allow
carriers to correct so-called ``contaminated numbers'' (numbers used by
a thousands-block carrier before donating the remainder of the block to
the pool),\55\ we clarify that carriers are permitted to address
``contaminated numbers.'' Paragraph 46 of the FY 2004 Report and Order
specifically links the correction process with the problem of
``contaminated numbers.'' To the extent that paragraph 46 of the FY
2004 Report and Order does not unequivocally provide that carriers may
correct the initial assessment letter to account for ``contaminated
numbers,'' we hereby clarify that they may do so.
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\54\ Cingular Petition at 5-6.
\55\ Cingular Petition at 3.
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44. We will continue to use the two-step process for assessing
section 9 regulatory fees on CMRS providers as proposed in the FY 2005
NPRM.\56\ Specifically, we will continue to mail an initial regulatory
fee assessment to CMRS providers based on information they submit on
their NRUF forms. The initial assessment letter will include a list of
the carriers' Operating Company Numbers (OCNs), and an aggregate total
of assigned numbers (adjusted for porting) upon which the assessment is
based.\57\ If the number of subscribers on the initial assessment
letter differs from the data included on their NRUF forms, CMRS
providers may amend their initial assessment letter to identify their
subscriber count as of December 31, 2004.
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\56\ See FY 2005 NPRM, 70 FR at 9579, para. 51-52.
\57\ Additionally, paragraph 48 of the FY 2004 Report and Order
indicates that ``[i]f some subscribers are no longer customers, but
have been assigned to another company, please indicate the company
which has acquired these subscribers.'' Cingular suggests that it is
unnecessary to report numbers because the Commission already takes
ported numbers into account using the LNP database. Cingular
Petition at 3. We agree with Cingular that it is generally
unnecessary to correct ported numbers.
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III. Procedural Matters
A. Payment of Regulatory Fees
1. De Minimis Fee Payment Liability
45. As in the past, regulatees whose total FY 2005 regulatory fee
liability, including all categories of fees for which payment is due,
amounts to less than $10 will be exempted from payment of FY 2005
regulatory fees.
2. Standard Fee Calculations and Payment Dates for Annual Regulatory
Fees
46. The responsibility for payment of annual regulatory fees by
service category is as follows: \58\
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\58\ Note that regulatees in the service categories that are
shaded in grey in Attachment D do not pay annual regulatory fees. We
collect regulatory fees from these entities in advance to cover the
term of license. Fee payments from these entities are submitted
along with their initial authorization or renewal application when
that application is filed.
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(a) Media Services: The responsibility for the payment of
regulatory fees rests with the holder of the permit or license as of
October 1, 2004. However, in instances where a license or permit is
transferred or assigned after October 1, 2004, responsibility for
payment rests with the holder of the license or permit at the time
payment is due.
(b) Wireline (Common Carrier) Services: Fees must be paid for any
authorization issued on or before October 1, 2004. However, where a
license or permit is transferred or assigned after October 1, 2004,
responsibility for payment rests with the holder of the license or
permit at the time payment is due.
(c) Wireless Services: Commercial Mobile Radio Service (CMRS)
cellular, mobile, and messaging services (fees based upon a subscriber,
unit or circuit count): Fees must be paid for any authorization issued
on or before October 1, 2004. The number of subscribers, units or
circuits on December 31, 2004 will be used as the basis from which to
calculate the fee payment.
(d) Multichannel Video Programming Distributor Services (basic
cable television subscribers and CARS licenses): The number of
subscribers on December 31, 2004 will be used as the basis from which
to calculate the fee payment.\59\ For CARS licensees, fees must be paid
for any authorization issued on or before October 1, 2004. The
responsibility for the payment of regulatory fees for CARS licenses
rests with the holder of the permit or license on October 1, 2004.
However, in instances where a CARS license or permit is transferred or
assigned after October 1, 2004, responsibility for payment rests with
the holder of the license or permit at the time payment is due.
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\59\ Cable television system operators should compute their
basic subscribers as follows: Number of single family dwellings +
number of individual households in multiple dwelling unit
(apartments, condominiums, mobile home parks, etc.) paying at the
basic subscriber rate + bulk rate customers + courtesy and free
service customers. Note: Bulk-Rate Customers = Total annual bulk-
rate charge divided by basic annual subscription rate for individual
households. Operators may base their count on ``a typical day in the
last full week'' of December 2004, rather than on a count as of
December 31, 2004.
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(e) International Services: For earth stations and geostationary
orbit space stations, payment is calculated on a per operational
station basis. For non-geostationary orbit satellite systems, payment
is calculated on a per operational system basis. The responsibility for
the payment of regulatory fees rests with the holder of the permit or
license on October 1, 2004. However, in instances where a license or
permit is transferred or assigned after October 1, 2004, responsibility
for payment rests with the holder of the license or permit at the time
payment is due. For international bearer circuits, payment is
calculated on a per active circuit basis as of December 31, 2004.
47. We strongly recommend that entities who will be submitting more
than twenty-five (25) Form 159-C's use the electronic Fee Filer program
when sending their regulatory fee payment. We will, for the convenience
of payers, accept fee payments made in advance of the normal formal
window for the payment of regulatory fees.
3. Limitations on Credit Card Transactions
48. The U.S. Treasury has advised the Commission that it may begin
rejecting Credit Card transactions greater than $99,999.99 from a
single credit card in a single day. The U.S. Treasury has published
Bulletin No. 2005-03 in which Federal Agencies are directed to limit
credit card collections per these rules. The Commission will institute
policies to conform to the U.S. Treasury policy. Entities needing to
remit amounts of $100,000.00 or greater should use check, ACH or Fed
Wire payment methods. Additional information can be found at http://www.fcc.gov/fees
.
B. Enforcement
49. As a reminder to all licensees, section 159(c) of the
Communications Act requires us to impose an additional charge as a
penalty for late payment of any regulatory fee. As in years past,
Failure to pay regulatory fees and/or any late payment penalty will
subject regulatees to sanctions, including the provisions set forth in
the Debt Collection Improvement Act of 1996 (``DCIA''). We also assess
administrative processing charges on delinquent debts to recover
additional costs incurred in processing and handling the related debt
pursuant to the DCIA and section 1.1940(d) of the Commission's rules.
These administrative processing charges
[[Page 41975]]
will be assessed on any delinquent regulatory fee, in addition to the
25 percent late charge penalty. Partial underpayments of regulatory
fees are treated in the following manner. The licensee will be given
credit for the amount paid, but if it is later determined that the fee
paid is incorrect or was submitted after the deadline date, the 25
percent late charge penalty will be assessed on the portion that is
submitted after the filing window.
50. Furthermore, we amended our regulatory fee rules effective
November 1, 2004, to provide that we will withhold action on any
applications or other requests for benefits filed by anyone who is
delinquent in any non-tax debts owed to the Commission (including
regulatory fees) and will ultimately dismiss those applications or
other requests if payment of the delinquent debt or other satisfactory
arrangement for payment is not made. See 47 CFR 1.1161(c),
1.1164(f)(5), and 1.1910. Failure to pay regulatory fees can also
result in the initiation of a proceeding to revoke any and all
authorizations held by the delinquent payer.
C. Congressional Review Act Analysis
51. The Commission will send a copy of this Order in MD Docket No.
05-59 and Order on Reconsideration in MD Docket No. 04-73 in a report
to be sent to Congress and the General Accounting Office pursuant to
the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
IV. Ordering Clauses
52. Accordingly, it is ordered pursuant to sections 4(i) and (j),
9, and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.
154(i), 154(j), 159, and 303(r) that the FY 2005 9 regulatory fee
assessment requirements are adopted as specified herein.
53. It is further ordered, pursuant to sections 4(i) and (j), 9,
303(r), and 405 of the Communications Act of 1934, 47 U.S.C. 154(i),
154(j), 159, 303(r), and 405, 47 U.S.C. 405 and 47 CFR 1.106 that the
Petition for Reconsideration, filed August 6, 2004, by Cingular
Wireless LLC is denied.
54. It is further ordered that part 1 of the Commission's rules are
amended as set forth in Attachment G, and that these rules shall become
effective August 22, 2005.
55. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Order in MD Docket No. 05-59 and Order on Reconsideration
in MD Docket No. 04-73, including the Final Regulatory Flexibility
Analysis, to the Chief Counsel for Advocacy of the U.S. Small Business
Administration.
56. It is further ordered that this proceeding is terminated.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Attachment A--Final Regulatory Flexibility Analysis
57. As required by the Regulatory Flexibility Act (RFA),\60\ the
Commission prepared an Initial Regulatory Flexibility Analysis (IRFA)
of the possible significant economic impact on small entities by the
policies and rules in its Notice of Proposed Rulemaking, In the Matter
of Assessment and Collection of Regulatory Fees for Fiscal Year 2005.
Written public comments were sought on the FY 2005 fees proposal,
including comments on the IRFA. This present Final Regulatory
Flexibility Analysis (FRFA) conforms to the RFA.\61\
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\60\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by
the Contract With America Advancement Act of 1996, Public Law 104-
121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).
\61\ 5 U.S.C. 604
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I. Need for, and Objectives of, the Proposed Rules
58. This rulemaking proceeding is initiated to amend the Schedule
of Regulatory Fees in the amount of $280,098,000, the amount that
Congress has required the Commission to recover. The Commission seeks
to collect the necessary amount through its revised Schedule of
Regulatory Fees in the most efficient manner possible and without undue
public burden.
II. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA
59. None.
III. Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply
60. The RFA directs agencies to provide a description of, and where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules and policies, if adopted.\62\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \63\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\64\ 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.\65\
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\62\ 5 U.S.C. 603(b)(3).
\63\ 5 U.S.C. 601(6).
\64\ 5 U.S.C. 601(3) (incorporating by reference the definition
of ``small-business concern'' in the Small Business Act, 15 U.S.C.
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a
small business applies ``unless an agency, after consultation with
the Office of Advocacy of the Small Business Administration and
after opportunity for public comment, establishes one or more
definitions of such term which are appropriate to the activities of
the agency and publishes such definition(s) in the Federal
Register.''
\65\ 15 U.S.C. 632.
---------------------------------------------------------------------------
61. Small Businesses. Nationwide, there are a total of 22.4 million
small businesses, according to SBA data.\66\
---------------------------------------------------------------------------
\66\ See SBA, Programs and Services, SBA Pamphlet No. CO-0028,
at page 40 (July 2002).
---------------------------------------------------------------------------
62. Small Organizations. Nationwide, there are approximately 1.6
million small organizations.\67\
---------------------------------------------------------------------------
\67\ Independent Sector, The New Nonprofit Almanac & Desk
Reference (2002).
---------------------------------------------------------------------------
63. Small Governmental Jurisdictions. The term ``small governmental
jurisdiction'' is defined as ``governments of cities, towns, townships,
villages, school districts, or special districts, with a population of
less than fifty thousand.'' \68\ As of 1997, there were approximately
87,453 governmental jurisdictions in the United States.\69\ This number
includes 39,044 county governments, municipalities, and townships, of
which 37,546 (approximately 96.2%) have populations of fewer than
50,000, and of which 1,498 have populations of 50,000 or more. Thus, we
estimate the number of small governmental jurisdictions overall to be
84,098 or fewer.
---------------------------------------------------------------------------
\68\ 5 U.S.C. 601(5).
\69\ U.S. Census Bureau, Statistical Abstract of the United
States: 2000, Section 9, pages 299-300, Tables 490 and 492.
---------------------------------------------------------------------------
64. We have included small incumbent local exchange carriers in
this present RFA analysis. As noted above, a ``small business'' under
the RFA is one that, inter alia, meets the pertinent small business
size standard (e.g., a telephone communications business having 1,500
or fewer employees), and ``is not dominant in its field of operation.''
\70\ The SBA's Office of Advocacy contends that, for RFA purposes,
small incumbent local exchange carriers are not dominant in their field
of operation because any such dominance is not ``national'' in
scope.\71\
[[Page 41976]]
We have therefore included small incumbent local exchange carriers in
this RFA analysis, although we emphasize that this RFA action has no
effect on Commission analyses and determinations in other, non-RFA
contexts.
---------------------------------------------------------------------------
\70\ 15 U.S.C. 632.
\71\ Letter from Jere W. Glover, Chief Counsel for Advocacy,
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small
Business Act contains a definition of ``small-business concern,''
which the RFA incorporates into its own definition of ``small
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C.
601(3) (RFA). SBA regulations interpret ``small business concern''
to include the concept of dominance on a national basis. See 13 CFR
121.102(b).
---------------------------------------------------------------------------
65. Incumbent Local Exchange Carriers (LECs). Neither the
Commission nor the SBA has developed a small business size standard
specifically for incumbent local exchange services. The appropriate
size standard under SBA rules is for the category Wired
Telecommunications Carriers. Under that size standard, such a business
is small if it has 1,500 or fewer employees.\72\ According to
Commission data,\73\ 1,337 carriers have reported that they are engaged
in the provision of incumbent local exchange services. Of these 1,337
carriers, an estimated 1,032 have 1,500 or fewer employees and 305 have
more than 1,500 employees. Consequently, the Commission estimates that
most providers of incumbent local exchange service are small businesses
that may be affected by these rules.
---------------------------------------------------------------------------
\72\ 13 CFR 121.201, North American Industry Classification
System (NAICS) code 517110 (changed from 13310 in October 2002).
\73\ FCC, Wireline Competition Bureau, Industry Analysis and
Technology Division, ``Trends in Telephone Service'' at Table 5.3,
Page 5-5 (Aug. 2003) (hereinafter ``Trends in Telephone Service'').
This source uses data that are current as of December 31, 2001.
---------------------------------------------------------------------------
66. Competitive Local Exchange Carriers (CLECs), Competitive Access
Providers (CAPs), ``Shared-Tenant Service Providers,'' and ``Other
Local Service Providers.'' Neither the Commission nor the SBA has
developed a small business size standard specifically for these service
providers. The appropriate size standard under SBA rules is for the
category Wired Telecommunications Carriers. Under that size standard,
such a business is small if it has 1,500 or fewer employees.\74\
According to Commission data,\75\ 609 carriers have reported that they
are engaged in the provision of either competitive access provider
services or competitive local exchange carrier services. Of these 609
carriers, an estimated 458 have 1,500 or fewer employees and 151 have
more than 1,500 employees. In addition, 16 carriers have reported that
they are ``Shared-Tenant Service Providers,'' and all 16 are estimated
to have 1,500 or fewer employees. In addition, 35 carriers have
reported that they are ``Other Local Service Providers.'' Of the 35, an
estimated 34 have 1,500 or fewer employees and one has more than 1,500
employees. Consequently, the Commission estimates that most providers
of competitive local exchange service, competitive access providers,
``Shared-Tenant Service Providers,'' and ``Other Local Service
Providers'' are small entities that may be affected by these rules.
---------------------------------------------------------------------------
\74\ 13 CFR 121.201, NAICS code 517110 (changed from 513310 in
October 2002).
\75\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------
67. Local Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees.\76\ According to Commission data,\77\ 133 carriers have
reported that they are engaged in the provision of local resale
services. Of these, an estimated 127 have 1,500 or fewer employees and
six have more than 1,500 employees. Consequently, the Commission
estimates that the majority of local resellers are small entities that
may be affected by these rules.
---------------------------------------------------------------------------
\76\ 13 CFR 121.201, NAICS code 517310 (changed from 513330 in
October 2002).
\77\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------
68. Toll Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees.\78\ According to Commission data,\79\ 625 carriers have
reported that they are engaged in the provision of toll resale
services. Of these, an estimated 590 have 1,500 or fewer employees and
35 have more than 1,500 employees. Consequently, the Commission
estimates that the majority of toll resellers are small entities that
may be affected by these rules.
---------------------------------------------------------------------------
\78\ 13 CFR 121.201, NAICS code 517310 (changed to 513330 in
October 2002).
\79\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------
69. Payphone Service Providers (PSPs). Neither the Commission nor
the SBA has developed a small business size standard specifically for
payphone services providers. The appropriate size standard under SBA
rules is for the category Wired Telecommunications Carriers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees.\80\ According to Commission data,\81\ 761 carriers have
reported that they are engaged in the provision of payphone services.
Of these, an estimated 757 have 1,500 or fewer employees and four have
more than 1,500 employees. Consequently, the Commission estimates that
the majority of payphone service providers are small entities that may
be affected by these rules.
---------------------------------------------------------------------------
\80\ 13 CFR 121.201, NAICS code 517110 (changed from 513310 in
October 2002).
\81\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------
70. Interexchange Carriers (IXCs). Neither the Commission nor the
SBA has developed a small business size standard specifically for
providers of interexchange services. The appropriate size standard
under SBA rules is for the category Wired Telecommunications Carriers.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\82\ According to Commission data,\83\ 261 carriers
have reported that they are engaged in the provision of interexchange
service. Of these, an estimated 223 have 1,500 or fewer employees and
38 have more than 1,500 employees. Consequently, the Commission
estimates that the majority of IXCs are small entities that may be
affected by these rules.
---------------------------------------------------------------------------
\82\ 13 CFR 121.201, NAICS code 517110 (changed from 513310 in
October 2002).
\83\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------
71. Operator Service Providers (OSPs). Neither the Commission nor
the SBA has developed a small business size standard specifically for
operator service providers. The appropriate size standard under SBA
rules is for the category Wired Telecommunications Carriers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees.\84\ According to Commission data,\85\ 23 carriers have
reported that they are engaged in the provision of operator services.
Of these, an estimated 22 have 1,500 or fewer employees and one has
more than 1,500 employees. Consequently, the Commission estimates that
the majority of OSPs are small entities that may be affected by these
rules.
---------------------------------------------------------------------------
\84\ 13 CFR 121.201, NAICS code 517110 (changed from 513310 in
October 2002).
\85\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------
72. Prepaid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business size standard specifically for
prepaid calling card providers. The appropriate size standard under SBA
rules is for the category Telecommunications Resellers. Under that size
standard, such a business is small if it has 1,500 or fewer
employees.\86\ According to Commission data,\87\ 37 carriers have
reported that they are engaged in the provision of prepaid calling
cards. Of these, an estimated 36 have 1,500 or fewer employees and one
has more than 1,500 employees. Consequently, the Commission estimates
that the majority
[[Page 41977]]
of prepaid calling card providers are small entities that may be
affected by these rules.
---------------------------------------------------------------------------
\86\ 13 CFR 121.201, NAICS code 517310 (changed from 513330 in
October 2002).
\87\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------
73. 800 and 800-Like Service Subscribers.\88\ Neither the
Commission nor the SBA has developed a small business size standard
specifically for 800 and 800-like service (``toll free'') subscribers.
The appropriate size standard under SBA rules is for the category
Telecommunications Resellers. Under that size standard, such a business
is small if it has 1,500 or fewer employees.\89\ The most reliable
source of information regarding the number of these service subscribers
appears to be data the Commission collects on the 800, 888, and 877
numbers in use.\90\ According to our data, at the end of January, 1999,
the number of 800 numbers assigned was 7,692,955; the number of 888
numbers assigned was 7,706,393; and the number of 877 numbers assigned
was 1,946,538. We do not have data specifying the number of these
subscribers that are not independently owned and operated or have more
than 1,500 employees, and thus are unable at this time to estimate with
greater precision the number of toll free subscribers that would
qualify as small businesses under the SBA size standard. Consequently,
we estimate that there are 7,692,955 or fewer small entity 800
subscribers; 7,706,393 or fewer small entity 888 subscribers; and
1,946,538 or fewer small entity 877 subscribers.
---------------------------------------------------------------------------
\88\ We include all toll-free number subscribers in this
category, including those for 888 numbers.
\89\ 13 CFR 121.201, NAICS code 517310 (changed from 513330 in
October 2002).
\90\ FCC, Common Carrier Bureau, Industry Analysis Division,
Study on Telephone Trends, Tables 21.2, 21.3, and 21.4 (Feb. 19,
1999).
---------------------------------------------------------------------------
74. International Service Providers. The Commission has not
developed a small business size standard specifically for providers of
international service. The appropriate size standards under SBA rules
are for the two broad categories of Satellite Telecommunications and
Other Telecommunications. Under both categories, such a business is
small if it has $12.5 million or less in average annual receipts.\91\
For the first category of Satellite Telecommunications, Census Bureau
data for 1997 show that there were a total of 324 firms that operated
for the entire year.\92\ Of this total, 273 firms had annual receipts
of under $10 million, and an additional 24 firms had receipts of $10
million to $24,999,999. Thus, the majority of Satellite
Telecommunications firms can be considered small.
---------------------------------------------------------------------------
\91\ 13 CFR 121.201, NAICS codes 517410 and 517910 (changed from
513340 and 513390 in October 2002).
\92\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 513340 (issued October 2000).
---------------------------------------------------------------------------
75. The second category--Other Telecommunications--includes
``establishments primarily engaged in * * * providing satellite
terminal stations and associated facilities operationally connected
with one or more terrestrial communications systems and capable of
transmitting telecommunications to or receiving telecommunications from
satellite systems.'' \93\ According to Census Bureau data for 1997,
there were 439 firms in this category that operated for the entire
year.\94\ Of this total, 424 firms had annual receipts of $5 million to
$9,999,999 and an additional six firms had annual receipts of $10
million to $24,999,990. Thus, under this second size standard, the
majority of firms can be considered small.
---------------------------------------------------------------------------
\93\ Office of Management and Budget, North American Industry
Classification System, page 513 (1997) (NAICS code 513390, changed
to 517910 in October 2002).
\94\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 513390 (issued October 2000).
---------------------------------------------------------------------------
76. Wireless Service Providers. The SBA has developed a small
business size standard for wireless firms within the two broad economic
census categories of ``Paging'' \95\ and ``Cellular and Other Wireless
Telecommunications.'' \96\ Under both SBA categories, a wireless
business is small if it has 1,500 or fewer employees. For the census
category of Paging, Census Bureau data for 1997 show that there were
1,320 firms in this category, total, that operated for the entire
year.\97\ Of this total, 1,303 firms had employment of 999 or fewer
employees, and an additional 17 firms had employment of 1,000 employees
or more.\98\ Thus, under this category and associated small business
size standard, the great majority of firms can be considered small. For
the census category Cellular and Other Wireless Telecommunications,
Census Bureau data for 1997 show that there were 977 firms in this
category, total, that operated for the entire year.\99\ Of this total,
965 firms had employment of 999 or fewer employees, and an additional
12 firms had employment of 1,000 employees or more.\100\ Thus, under
this second category and size standard, the great majority of firms
can, again, be considered small.
---------------------------------------------------------------------------
\95\ 13 CFR 121.201, NAICS code 513321 (changed to 517211 in
October 2002).
\96\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
\97\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 5, Employment Size of Firms Subject to
Federal Income Tax: 1997, NAICS code 513321 (issued October 2000).
\98\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 5, Employment Size of Firms Subject to
Federal Income Tax: 1997, NAICS code 513321 (issued October 2000).
The census data do not provide a more precise estimate of the number
of firms that have employment of 1,500 or fewer employees; the
largest category provided is ``Firms with 1000 employees or more.''
\99\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 5, Employment Size of Firms Subject to
Federal Income Tax: 1997, NAICS code 513322 (issued October 2000).
\100\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 5, Employment Size of Firms Subject to
Federal Income Tax: 1997, NAICS code 513322 (issued October 2000).
The census data do not provide a more precise estimate of the number
of firms that have employment of 1,500 or fewer employees; the
largest category provided is ``Firms with 1000 employees or more.''
---------------------------------------------------------------------------
77. Internet Service Providers. The SBA has developed a small
business size standard for Internet Service Providers. This category
comprises establishments ``primarily engaged in providing direct access
through telecommunications networks to computer-held information
compiled or published by others.'' \101\ Under the SBA size standard,
such a business is small if it has average annual receipts of $21
million or less.\102\ According to Census Bureau data for 1997, there
were 2,751 firms in this category that operated for the entire
year.\103\ Of these, 2,659 firms had annual receipts of under $10
million, and an additional 67 firms had receipts of between $10 million
and $24,999,999.\104\ Thus, under this size standard, the great
majority of firms can be considered small entities.
---------------------------------------------------------------------------
\101\ Office of Management and Budget, North American Industry
Classification System, page 515 (1997). NAICS code 514191, ``On-Line
Information Services'' (changed to current name and to code 518111
in October 2002).
\102\ 13 CFR 121.201, NAICS code 518111.
\103\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 4, Receipts Size of Firms Subject to Federal
Income Tax: 1997, NAICS code 514191 (issued October 2000).
\104\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 4, Receipts Size of Firms Subject to Federal
Income Tax: 1997, NAICS code 514191 (issued October 2000).
---------------------------------------------------------------------------
78. Cellular Licensees. The SBA has developed a small business size
standard for wireless firms within the broad economic census category
``Cellular and Other Wireless Telecommunications.'' \105\ Under this
SBA category, a wireless business is small if it has 1,500 or fewer
employees. For the census category Cellular and Other Wireless
Telecommunications firms, Census Bureau data for 1997 show that there
were 977 firms in this category, total, that operated for the
[[Page 41978]]
entire year.\106\ Of this total, 965 firms had employment of 999 or
fewer employees, and an additional 12 firms had employment of 1,000
employees or more.\107\ Thus, under this category and size standard,
the great majority of firms can be considered small. According to the
most recent Trends in Telephone Service data, 719 carriers reported
that they were engaged in the provision of cellular service, personal
communications service, or specialized mobile radio telephony services,
which are placed together in the data.\108\ We have estimated that 294
of these are small, under the SBA small business size standard.\109\
---------------------------------------------------------------------------
\105\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
\106\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 5, Employment Size of Firms Subject to
Federal Income Tax: 1997, NAICS code 513322 (issued October 2000).
\107\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 5, Employment Size of Firms Subject to
Federal Income Tax: 1997, NAICS code 513322 (issued October 2000).
The census data do not provide a more precise estimate of the number
of firms that have employment of 1,500 or fewer employees; the
largest category provided is ``Firms with 1000 employees or more.''
\108\ FCC, Wireline Competition Bureau, Industry Analysis and
Technology Division, ``Trends in Telephone Service'' at Table 5.3,
page 5-5 (August 2003). This source uses data that are current as of
December 31, 2001.
\109\ FCC, Wireline Competition Bureau, Industry Analysis and
Technology Division, ``Trends in Telephone Service'' at Table 5.3,
page 5-5 (August 2003). This source uses data that are current as of
December 31, 2001.
---------------------------------------------------------------------------
79. Common Carrier Paging. The SBA has developed a small business
size standard for wireless firms within the broad economic census
categories of ``Cellular and Other Wireless Telecommunications.'' \110\
Under this SBA category, a wireless business is small if it has 1,500
or fewer employees. For the census category of Paging, Census Bureau
data for 1997 show that there were 1,320 firms in this category, total,
that operated for the entire year.\111\ Of this total, 1,303 firms had
employment of 999 or fewer employees, and an additional 17 firms had
employment of 1,000 employees or more.\112\ Thus, under this category
and associated small business size standard, the great majority of
firms can be considered small.
---------------------------------------------------------------------------
\110\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
\111\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 5, Employment Size of Firms Subject to
Federal Income Tax: 1997, NAICS code 513321 (issued October 2000).
\112\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 5, Employment Size of Firms Subject to
Federal Income Tax: 1997, NAICS code 513321 (issued October 2000).
The census data do not provide a more precise estimate of the number
of firms that have employment of 1,500 or fewer employees; the
largest category provided is ``Firms with 1000 employees or more.''
---------------------------------------------------------------------------
80. In the Paging Second Report and Order, the Commission adopted a
size standard for ``small businesses'' for purposes of determining
their eligibility for special provisions such as bidding credits and
installment payments.\113\ A small business is an entity that, together
with its affiliates and controlling principals, has average gross
revenues not exceeding $15 million for the preceding three years.\114\
The SBA has approved this definition.\115\ An auction of Metropolitan
Economic Area (MEA) licenses commenced on February 24, 2000, and closed
on March 2, 2000. Of the 2,499 licenses auctioned, 985 were sold.\116\
Fifty-seven companies claiming small business status won 440
licenses.\117\ An auction of MEA and Economic Area (EA) licenses
commenced on October 30, 2001, and closed on December 5, 2001. Of the
15,514 licenses auctioned, 5,323 were sold.\118\ One hundred thirty-two
companies claiming small business status purchased 3,724 licenses. A
third auction, consisting of 8,874 licenses in each of 175 EAs and
1,328 licenses in all but three of the 51 MEAs commenced on May 13,
2003, and closed on May 28, 2003. Seventy-seven bidders claiming small
or very small business status won 2,093 licenses.\119\ Currently, there
are approximately 74,000 Common Carrier Paging licenses. According to
the most recent Trends in Telephone Service, 608 private and common
carriers reported that they were engaged in the provision of either
paging or ``other mobile'' services.\120\ Of these, we estimate that
589 are small, under the SBA-approved small business size
standard.\121\ We estimate that the majority of common carrier paging
providers would qualify as small entities under the SBA definition.
---------------------------------------------------------------------------
\113\ Revision of Part 22 and Part 90 of the Commission's Rules
to Facilitate Future Development of Paging Systems, Second Report
and Order, 12 FCC Rcd 2732, 2811-2812, paras. 178-181 (Paging Second
Report and Order); see also Revision of Part 22 and Part 90 of the
Commission's Rules to Facilitate Future Development of Paging
Systems, Memorandum Opinion and Order on Reconsideration, 14 FCC Rcd
10030, 10085-10088, paras. 98-107 (1999).
\114\ Paging Second Report and Order, 12 FCC Rcd at 2811, para.
179.
\115\ See Letter to Amy Zoslov, Chief, Auctions and Industry
Analysis Division, Wireless Telecommunications Bureau, from Aida
Alvarez, Administrator, Small Business Administration, dated
December 2, 1998.
\116\ See ``929 and 931 MHz Paging Auction Closes,'' Public
Notice, 15 FCC Rcd 4858 (WTB 2000).
\117\ See ``929 and 931 MHz Paging Auction Closes,'' Public
Notice, 15 FCC Rcd 4858 (WTB 2000).
\118\ See ``Lower and Upper Paging Band Auction Closes,'' Public
Notice, 16 FCC Rcd 21821 (WTB 2002).
\119\ See ``Lower and Upper Paging Bands Auction Closes,''
Public Notice, 18 FCC Rcd 11154 (WTB 2003).
\120\ See Trends in Telephone Service, Industry Analysis
Division, Wireline Competition Bureau, Table 5.3 (Number of
Telecommunications Service Providers that are Small Businesses) (May
2002).
\121\ 13 CFR 121.201, NAICS code 517211.
---------------------------------------------------------------------------
81. Wireless Communications Services. This service can be used for
fixed, mobile, radiolocation, and digital audio broadcasting satellite
uses. The Commission defined ``small business'' for the wireless
communications services (WCS) auction as an entity with average gross
revenues of $40 million for each of the three preceding years, and a
``very small business'' as an entity with average gross revenues of $15
million for each of the three preceding years.\122\ The SBA has
approved these definitions.\123\ The Commission auctioned geographic
area licenses in the WCS service. In the auction, which commenced on
April 15, 1997 and closed on April 25, 1997, there were seven bidders
that won 31 licenses that qualified as very small business entities,
and one bidder that won one license that qualified as a small business
entity. An auction for one license in the 1670-1674 MHz band commenced
on April 30, 2003 and closed the same day. One license was awarded. The
winning bidder was not a small entity.
---------------------------------------------------------------------------
\122\ Amendment of the Commission's Rules to Establish Part 27,
the Wireless Communications Service (WCS), Report and Order, 12 FCC
Rcd 10785, 10879, para. 194 (1997).
\123\ See Letter to Amy Zoslov, Chief, Auctions and Industry
Analysis Division, Wireless Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez, Administrator, Small
Business Administration, dated December 2, 1998.
---------------------------------------------------------------------------
82. Wireless Telephony. Wireless telephony includes cellular,
personal communications services, and specialized mobile radio
telephony carriers. The SBA has developed a small business size
standard for ``Cellular and Other Wireless Telecommunications''
services.\124\ Under the SBA small business size standard, a business
is small if it has 1,500 or fewer employees.\125\ According to the most
recent Trends in Telephone Service data, 719 carriers reported that
they were engaged in wireless telephony.\126\ We have estimated that
294 of these are small under the SBA small business size standard.
---------------------------------------------------------------------------
\124\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
\125\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
\126\ FCC, Wireline Competition Bureau, Industry Analysis and
Technology Division, ``Trends in Telephone Service'' at Table 5.3,
page 5-5 (August 2003). This source uses data that are current as of
December 31, 2001.
---------------------------------------------------------------------------
83. Broadband Personal Communications Service. The
[[Page 41979]]
broadband personal communications services (PCS) spectrum is divided
into six frequency blocks designated A through F, and the Commission
has held auctions for each block. The Commission has created a small
business size standard for Blocks C and F as an entity that has average
gross revenues of less than $40 million in the three previous calendar
years.\127\ For Block F, an additional small business size standard for
``very small business'' was added and is defined as an entity that,
together with its affiliates, has average gross revenues of not more
than $15 million for the preceding three calendar years.\128\ These
small business size standards, in the context of broadband PCS
auctions, have been approved by the SBA.\129\ No small businesses
within the SBA-approved small business size standards bid successfully
for licenses in Blocks A and B. There were 90 winning bidders that
qualified as small entities in the Block C auctions. A total of 93
``small'' and ``very small'' business bidders won approximately 40
percent of the 1,479 licenses for Blocks D, E, and F.\130\ On March 23,
1999, the Commission reauctioned 155 C, D, E, and F Block licenses;
there were 113 small business winning bidders.\131\
---------------------------------------------------------------------------
\127\ See Amendment of Parts 20 and 24 of the Commission's
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile
Radio Service Spectrum Cap, Report and Order, 11 FCC Rcd 7824, 7850-
7852, paras. 57-60 (1996); see also 47 CFR 24.720(b).
\128\ See Amendment of Parts 20 and 24 of the Commission's
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile
Radio Service Spectrum Cap, Report and Order, 11 FCC Rcd 7824, 7852,
para. 60.
\129\ See Letter to Amy Zoslov, Chief, Auctions and Industry
Analysis Division, Wireless Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez, Administrator, Small
Business Administration, dated December 2, 1998.
\130\ FCC News, ``Broadband PCS, D, E and F Block Auction
Closes,'' No. 71744 (released January 14, 1997).
\131\ See ``C, D, E, and F Block Broadband PCS Auction Closes,''
Public Notice, 14 FCC Rcd 6688 (WTB 1999).
---------------------------------------------------------------------------
84. On January 26, 2001, the Commission completed the auction of
422 C and F Broadband PCS licenses in Auction No. 35. Of the 35 winning
bidders in this auction, 29 qualified as ``small'' or ``very small''
businesses.\132\ Subsequent events, concerning Auction 35, including
judicial and agency determinations, resulted in a total of 163 C and F
Block licenses being available for grant.
---------------------------------------------------------------------------
\132\ See ``C and F Block Broadband PCS Auction Closes; Winning
Bidders Announced,'' Public Notice, 16 FCC Rcd 2339 (2001).
---------------------------------------------------------------------------
85. Narrowband Personal Communications Services. The Commission
held an auction for Narrowband PCS licenses that commenced on July 25,
1994, and closed on July 29, 1994. A second auction commenced on
October 26, 1994 and closed on November 8, 1994. For purposes of the
first two Narrowband PCS auctions, ``small businesses'' were entities
with average gross revenues for the prior three calendar years of $40
million or less.\133\ Through these auctions, the Commission awarded a
total of 41 licenses, 11 of which were obtained by four small
businesses.\134\ To ensure meaningful participation by small business
entities in future auctions, the Commission adopted a two-tiered small
business size standard in the Narrowband PCS Second Report and
Order.\135\ A ``small business'' is an entity that, together with
affiliates and controlling interests, has average gross revenues for
the three preceding years of not more than $40 million.\136\ A ``very
small business'' is an entity that, together with affiliates and
controlling interests, has average gross revenues for the three
preceding years of not more than $15 million.\137\ The SBA has approved
these small business size standards.\138\ A third auction commenced on
October 3, 2001 and closed on October 16, 2001. Here, five bidders won
317 (Metropolitan Trading Areas and nationwide) licenses.\139\ Three of
these claimed status as a small or very small entity and won 311
licenses.
---------------------------------------------------------------------------
\133\ Implementation of Section 309(j) of the Communications
Act--Competitive Bidding Narrowband PCS, Third Memorandum Opinion
and Order and Further Notice of Proposed Rulemaking, 10 FCC Rcd 175,
196, para. 46 (1994).
\134\ See ``Announcing the High Bidders in the Auction of ten
Nationwide Narrowband PCS Licenses, Winning Bids Total
$617,006,674,'' Public Notice, PNWL 94-004 (released Aug. 2, 1994);
``Announcing the High Bidders in the Auction of 30 Regional
Narrowband PCS Licenses; Winning Bids Total $490,901,787,'' Public
Notice, PNWL 94-27 (released Nov. 9, 1994).
\135\ Amendment of the Commission's Rules to Establish New
Personal Communications Services, Narrowband PCS, Second Report and
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd
10456, 10476, para. 40 (2000).
\136\ Amendment of the Commission's Rules to Establish New
Personal Communications Services, Narrowband PCS, Second Report and
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd
10456, 10476, para. 40 (2000).
\137\ Amendment of the Commission's Rules to Establish New
Personal Communications Services, Narrowband PCS, Second Report and
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd
10456, 10476, para. 40 (2000).
\138\ See Letter to Amy Zoslov, Chief, Auctions and Industry
Analysis Division, Wireless Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez, Administrator, Small
Business Administration, dated December 2, 1998.
\139\ See ``Narrowband PCS Auction Closes,'' Public Notice, 16
FCC Rcd 18663 (WTB 2001).
---------------------------------------------------------------------------
86. Lower 700 MHz Band Licenses. We adopted criteria for defining
three groups of small businesses for purposes of determining their
eligibility for special provisions such as bidding credits.\140\ We
have defined a ``small business'' as an entity that, together with its
affiliates and controlling principals, has average gross revenues not
exceeding $40 million for the preceding three years.\141\ A ``very
small business'' is defined as an entity that, together with its
affiliates and controlling principals, has average gross revenues that
are not more than $15 million for the preceding three years.\142\
Additionally, the lower 700 MHz Service has a third category of small
business status that may be claimed for Metropolitan/Rural Service Area
(MSA/RSA) licenses. The third category is ``entrepreneur,'' which is
defined as an entity that, together with its affiliates and controlling
principals, has average gross revenues that are not more than $3
million for the preceding three years.\143\ The SBA has approved these
small size standards.\144\ An auction of 740 licenses (one license in
each of the 734 MSAs/RSAs and one license in each of the six Economic
Area Groupings (EAGs)) commenced on August 27, 2002, and closed on
September 18, 2002. Of the 740 licenses available for auction, 484
licenses were sold to 102 winning bidders. Seventy-two of the winning
bidders claimed small business, very small business or entrepreneur
status and won a total of 329 licenses.\145\ A second auction commenced
on May 28, 2003, and closed on June 13, 2003, and included 256
licenses: 5 EAG licenses and 476 Cellular Market Area licenses.\146\
Seventeen winning bidders
[[Page 41980]]
claimed small or very small business status and won 60 licenses, and
nine winning bidders claimed entrepreneur status and won 154
licenses.\147\
---------------------------------------------------------------------------
\140\ See Reallocation and Service Rules for the 698-746 MHz
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC
Rcd 1022 (2002).
\141\ See Reallocation and Service Rules for the 698-746 MHz
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC
Rcd 1022, 1087-88, para. 172 (2002).
\142\ See Reallocation and Service Rules for the 698-746 MHz
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC
Rcd 1022, 1087-88, para. 172 (2002).
\143\ See Reallocation and Service Rules for the 698-746 MHz
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC
Rcd 1022, 1088, para. 173 (2002).
\144\ See Letter to Thomas Sugrue, Chief, Wireless
Telecommunications Bureau, Federal Communications Commission, from
Aida Alvarez, Administrator, Small Business Administration, dated
August 10, 1999.
\145\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice,
17 FCC Rcd 17272 (WTB 2002).
\146\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice,
18 FCC Rcd 11873 (WTB 2003).
\147\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice,
18 FCC Rcd 11873 (WTB 2003).
---------------------------------------------------------------------------
87. Upper 700 MHz Band Licenses. The Commission released a Report
and Order, authorizing service in the upper 700 MHz band.\148\ This
auction, previously scheduled for January 13, 2003, has been
postponed.\149\
---------------------------------------------------------------------------
\148\ Service Rules for the 746-764 and 776-794 MHz Bands, and
Revisions to Part 27 of the Commission's Rules, Second Memorandum
Opinion and Order, 16 FCC Rcd 1239 (2001).
\149\ See ``Auction of Licenses for 747-762 and 777-792 MHz
Bands (Auction No. 31) Is Rescheduled,'' Public Notice, 16 FCC Rcd
13079 (WTB 2003).
---------------------------------------------------------------------------
88. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band Order,
we adopted size standards for ``small businesses'' and ``very small
businesses'' for purposes of determining their eligibility for special
provisions such as bidding credits and installment payments.\150\ A
small business in this service is an entity that, together with its
affiliates and controlling principals, has average gross revenues not
exceeding $40 million for the preceding three years.\151\ Additionally,
a very small business is an entity that, together with its affiliates
and controlling principals, has average gross revenues that are not
more than $15 million for the preceding three years.\152\ SBA approval
of these definitions is not required.\153\ An auction of 52 Major
Economic Area (MEA) licenses commenced on September 6, 2000, and closed
on September 21, 2000.\154\ Of the 104 licenses auctioned, 96 licenses
were sold to nine bidders. Five of these bidders were small businesses
that won a total of 26 licenses. A second auction of 700 MHz Guard Band
licenses commenced on February 13, 2001, and closed on February 21,
2001. All eight of the licenses auctioned were sold to three bidders.
One of these bidders was a small business that won a total of two
licenses.\155\
---------------------------------------------------------------------------
\150\ See Service Rules for the 746-764 MHz Bands, and Revisions
to Part 27 of the Commission's Rules, Second Report and Order, 15
FCC Rcd 5299 (2000).
\151\ See Service Rules for the 746-764 MHz Bands, and Revisions
to Part 27 of the Commission's Rules, Second Report and Order, 15
FCC Rcd 5299, 5343, para. 108 (2000).
\152\ See Service Rules for the 746-764 MHz Bands, and Revisions
to Part 27 of the Commission's Rules, Second Report and Order, 15
FCC Rcd 5299, 5343, para. 108 (2000).
\153\ See Service Rules for the 746-764 MHz Bands, and Revisions
to Part 27 of the Commission's Rules, Second Report and Order, 15
FCC Rcd 5299, 5343, para. 108 n.246 (for the 746-764 MHz and 776-794
MHz bands, the Commission is exempt from 15 U.S.C. 632, which
requires Federal agencies to obtain SBA approval before adopting
small business size standards).
\154\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders
Announced,'' Public Notice, 15 FCC Rcd 18026 (2000).
\155\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders
Announced,'' Public Notice, 16 FCC Rcd 4590 (WTB 2001).
---------------------------------------------------------------------------
89. Specialized Mobile Radio. The Commission awards ``small
entity'' bidding credits in auctions for Specialized Mobile Radio (SMR)
geographic area licenses in the 800 MHz and 900 MHz bands to firms that
had revenues of no more than $15 million in each of the three previous
calendar years.\156\ The Commission awards ``very small entity''
bidding credits to firms that had revenues of no more than $3 million
in each of the three previous calendar years.\157\ The SBA has approved
these small business size standards for the 900 MHz Service.\158\ The
Commission has held auctions for geographic area licenses in the 800
MHz and 900 MHz bands. The 900 MHz SMR auction began on December 5,
1995, and closed on April 15, 1996. Sixty bidders claiming that they
qualified as small businesses under the $15 million size standard won
263 geographic area licenses in the 900 MHz SMR band. The 800 MHz SMR
auction for the upper 200 channels began on October 28, 1997, and was
completed on December 8, 1997. Ten bidders claiming that they qualified
as small businesses under the $15 million size standard won 38
geographic area licenses for the upper 200 channels in the 800 MHz SMR
band.\159\ A second auction for the 800 MHz band was held on January
10, 2002 and closed on January 17, 2002 and included 23 BEA licenses.
One bidder claiming small business status won five licenses.\160\
---------------------------------------------------------------------------
\156\ 47 CFR 90.814(b)(1).
\157\ 47 CFR 90.814(b)(1).
\158\ See Letter to Thomas Sugrue, Chief, Wireless
Telecommunications Bureau, Federal Communications Commission, from
Aida Alvarez, Administrator, Small Business Administration, dated
August 10, 1999. We note that, although a request was also sent to
the SBA requesting approval for the small business size standard for
800 MHz, approval is still pending.
\159\ See ``Correction to Public Notice DA 96-586 `FCC Announces
Winning Bidders in the Auction of 1020 Licenses to Provide 900 MHz
SMR in Major Trading Areas,' '' Public Notice, 18 FCC Rcd 18367 (WTB
1996).
\160\ See ``Multi-Radio Service Auction Closes,'' Public Notice,
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------
90. The auction of the 1,053 800 MHz SMR geographic area licenses
for the General Category channels began on August 16, 2000, and was
completed on September 1, 2000. Eleven bidders won 108 geographic area
licenses for the General Category channels in the 800 MHz SMR band
qualified as small businesses under the $15 million size standard.\161\
In an auction completed on December 5, 2000, a total of 2,800 Economic
Area licenses in the lower 80 channels of the 800 MHz SMR service were
sold.\162\ Of the 22 winning bidders, 19 claimed small business status
and won 129 licenses. Thus, combining all three auctions, 40 winning
bidders for geographic licenses in the 800 MHz SMR band claimed status
as small business.
---------------------------------------------------------------------------
\161\ See, ``800 MHz Specialized Mobile Radio (SMR) Service
General Category (851-854 MHz) and Upper Band (861-865 MHz) Auction
Closes; Winning Bidders Announced,'' Public Notice, 15 FCC Rcd 17162
(2000).
\162\ See, ``800 MHz SMR Service Lower 80 Channels Auction
Closes; Winning Bidders Announced,'' Public Notice, 16 FCC Rcd 1736
(2000).
---------------------------------------------------------------------------
91. In addition, there are numerous incumbent site-by-site SMR
licensees and licensees with extended implementation authorizations in
the 800 and 900 MHz bands. We do not know how many firms provide 800
MHz or 900 MHz geographic area SMR pursuant to extended implementation
authorizations, nor how many of these providers have annual revenues of
no more than $15 million. One firm has over $15 million in revenues. We
assume, for purposes of this analysis, that all of the remaining
existing extended implementation authorizations are held by small
entities, as that small business size standard is approved by the SBA.
92. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service
has both Phase I and Phase II licenses. Phase I licensing was conducted
by lotteries in 1992 and 1993. There are approximately 1,515 such non-
nationwide licensees and four nationwide licensees currently authorized
to operate in the 220 MHz band. The Commission has not developed a
definition of small entities specifically applicable to such incumbent
220 MHz Phase I licensees. To estimate the number of such licensees
that are small businesses, we apply the small business size standard
under the SBA rules applicable to ``Cellular and Other Wireless
Telecommunications'' companies. This category provides that a small
business is a wireless company employing no more than 1,500
persons.\163\ According to the Census Bureau data for 1997, only twelve
firms out of a total of 1,238 such firms that operated for the entire
year in 1997, had 1,000 or more employees.\164\ If this general ratio
continues in the context of Phase I 220 MHz licensees, the Commission
estimates that nearly all such licensees are small businesses
[[Page 41981]]
under the SBA's small business standard.
---------------------------------------------------------------------------
\163\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
\164\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 5, NAICS code 513322 (October 2000).
---------------------------------------------------------------------------
93. 220 MHz Radio Service--Phase II Licensees. The 220 MHz service
has both Phase I and Phase II licenses. The Phase II 220 MHz service is
a new service, and is subject to spectrum auctions. In the 220 MHz
Third Report and Order, we adopted a small business size standard for
defining ``small'' and ``very small'' businesses for purposes of
determining their eligibility for special provisions such as bidding
credits and installment payments.\165\ This small business standard
indicates that a ``small business'' is an entity that, together with
its affiliates and controlling principals, has average gross revenues
not exceeding $15 million for the preceding three years.\166\ A ``very
small business'' is defined as an entity that, together with its
affiliates and controlling principals, has average gross revenues that
do not exceed $3 million for the preceding three years.\167\ The SBA
has approved these small size standards.\168\ Auctions of Phase II
licenses commenced on September 15, 1998, and closed on October 22,
1998.\169\ In the first auction, 908 licenses were auctioned in three
different-sized geographic areas: Three nationwide licenses, 30
Regional Economic Area Group (EAG) Licenses, and 875 Economic Area (EA)
Licenses. Of the 908 licenses auctioned, 693 were sold.\170\ Thirty-
nine small businesses won 373 licenses in the first 220 MHz auction. A
second auction included 225 licenses: 216 EA licenses and 9 EAG
licenses. Fourteen companies claiming small business status won 158
licenses.\171\ A third auction included four licenses: 2 BEA licenses
and 2 EAG licenses in the 220 MHz Service. No small or very small
business won any of these licenses.\172\
---------------------------------------------------------------------------
\165\ Amendment of Part 90 of the Commission's Rules to Provide
For the Use of the 220-222 MHz Band by the Private Land Mobile Radio
Service, Third Report and Order, 12 FCC Rcd 10943, 11068-70, paras.
291-295 (1997).
\166\ Id. at 11068, paras. 291.
\167\ Id.
\168\ See Letter to Daniel Phythyon, Chief, Wireless
Telecommunications Bureau, Federal Communications Commission, from
Aida Alvarez, Administrator, Small Business Administration, dated
January 6, 1998.
\169\ See generally ``220 MHz Service Auction Closes,'' Public
Notice, 14 FCC Rcd 605 (WTB 1998).
\170\ See ``FCC Announces It is Prepared to Grant 654 Phase II
220 MHz Licenses After Final Payment is Made,'' Public Notice, 14
FCC Rcd 1085 (WTB 1999).
\171\ See ``Phase II 220 MHz Service Spectrum Auction Closes,''
Public Notice, 14 FCC Rcd 11218 (WTB 1999).
\172\ See ``Multi-Radio Service Auction Closes,'' Public Notice,
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------
94. Private Land Mobile Radio (PLMR). PLMR systems serve an
essential role in a range of industrial, business, land transportation,
and public safety activities. These radios are used by companies of all
sizes operating in all U.S. business categories, and are often used in
support of the licensee's primary (non-telecommunications) business
operations. For the purpose of determining whether a licensee of a PLMR
system is a small business as defined by the SBA, we could use the
definition for ``Cellular and Other Wireless Telecommunications.'' This
definition provides that a small entity is any such entity employing no
more than 1,500 persons.\173\ The Commission does not require PLMR
licensees to disclose information about number of employees, so the
Commission does not have information that could be used to determine
how many PLMR licensees constitute small entities under this
definition. Moreover, because PMLR licensees generally are not in the
business of providing cellular or other wireless telecommunications
services but instead use the licensed facilities in support of other
business activities, we are not certain that the Cellular and Other
Wireless Telecommunications category is appropriate for determining how
many PLMR licensees are small entities for this analysis. Rather, it
may be more appropriate to assess PLMR licensees under the standards
applied to the particular industry subsector to which the licensee
belongs.\174\
---------------------------------------------------------------------------
\173\ See 13 CFR 121.201, NAICS code 517212.
\174\ See generally 13 CFR 121.201.
---------------------------------------------------------------------------
95. The Commission's 1994 Annual Report on PLMRs \175\ indicates
that at the end of fiscal year 1994, there were 1,087,267 licensees
operating 12,481,989 transmitters in the PLMR bands below 512 MHz.
Because any entity engaged in a commercial activity is eligible to hold
a PLMR license, the revised rules in this context could potentially
impact every small business in the United States.
---------------------------------------------------------------------------
\175\ Federal Communications Commission, 60th Annual Report,
Fiscal Year 1994, at para. 116.
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96. Fixed Microwave Services. Fixed microwave services include
common carrier,\176\ private operational-fixed,\177\ and broadcast
auxiliary radio services.\178\ At present, there are approximately
22,015 common carrier fixed licensees and 61,670 private operational-
fixed licensees and broadcast auxiliary radio licensees in the
microwave services. The Commission has not created a size standard for
a small business specifically with respect to fixed microwave services.
For purposes of this analysis, the Commission uses the SBA small
business size standard for the category ``Cellular and Other
Telecommunications,'' which is 1,500 or fewer employees.\179\ The
Commission does not have data specifying the number of these licensees
that have more than 1,500 employees, and thus are unable at this time
to estimate with greater precision the number of fixed microwave
service licensees that would qualify as small business concerns under
the SBA's small business size standard. Consequently, the Commission
estimates that there are up to 22,015 common carrier fixed licensees
and up to 61,670 private operational-fixed licensees and broadcast
auxiliary radio licensees in the microwave services that may be small
and may be affected by the rules and policies proposed herein. We
noted, however, that the common carrier microwave fixed licensee
category includes some large entities.
---------------------------------------------------------------------------
\176\ See 47 CFR 101 et seq. (formerly, part 21 of the
Commission's rules) for common carrier fixed microwave services
(except Multipoint Distribution Service).
\177\ Persons eligible under parts 80 and 90 of the Commission's
rules can use Private Operational-Fixed Microwave services. See 47
CFR parts 80 and 90. Stations in this service are called
operational-fixed to distinguish them from common carrier and public
fixed stations. Only the licensee may use the operational-fixed
station, and only for communications related to the licensee's
commercial, industrial, or safety operations.
\178\ Auxiliary Microwave Service is governed by part 74 of
Title 47 of the Commission's rules. See 47 CFR part 74. This service
is available to licensees of broadcast stations and to broadcast and
cable network entities. Broadcast auxiliary microwave stations are
used for relaying broadcast television signals from the studio to
the transmitter, or between two points such as a main studio and an
auxiliary studio. The service also includes mobile television
pickups, which relay signals from a remote location back to the
studio.
\179\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
---------------------------------------------------------------------------
97. 39 GHz Service. The Commission created a special small business
size standard for 39 GHz licenses--an entity that has average gross
revenues of $40 million or less in the three previous calendar
years.\180\ An additional size standard for ``very small business'' is:
An entity that, together with affiliates, has average gross revenues of
not more than $15 million for the preceding three calendar years.\181\
The SBA has approved these small business size standards.\182\ The
auction of the 2,173
[[Page 41982]]
39 GHz licenses began on April 12, 2000 and closed on May 8, 2000. The
18 bidders who claimed small business status won 849 licenses.
Consequently, the Commission estimates that 18 or fewer 39 GHz
licensees are small entities that may be affected by the rules and
polices herein.
---------------------------------------------------------------------------
\180\ See Amendment of the Commission's Rules Regarding the
37.0-38.6 GHz and 38.6-40.0 GHz Bands, ET Docket No. 95-183, Report
and Order, 12 FCC Rcd 18600 (1997), 63 FR 6079 (Feb. 6, 1998).
\182\ Id.
\182\ See Letter to Kathleen O'Brien Ham, Chief, Auctions and
Industry Analysis Division, Wireless Telecommunications Bureau, FCC,
from Aida Alvarez, Administrator, SBA (Feb. 4, 1998) (VoIP); See
Letter to Margaret Wiener, Chief, Auctions and Industry Analysis
Division, Wireless Telecommunications Bureau, Federal Communications
Commission, from Hector Barreto, Administrator, Small Business
Administration, dated January 18, 2002 (WTB).
---------------------------------------------------------------------------
98. Local Multipoint Distribution Service. Local Multipoint
Distribution Service (LMDS) is a fixed broadband point-to-multipoint
microwave service that provides for two-way video
telecommunications.\183\ The auction of the 986 Local Multipoint
Distribution Service (LMDS) licenses began on February 18, 1998 and
closed on March 25, 1998. The Commission established a small business
size standard for LMDS licenses as an entity that has average gross
revenues of less than $40 million in the three previous calendar
years.\184\ An additional small business size standard for ``very small
business'' was added as an entity that, together with its affiliates,
has average gross revenues of not more than $15 million for the
preceding three calendar years.\185\ The SBA has approved these small
business size standards in the context of LMDS auctions.\186\ There
were 93 winning bidders that qualified as small entities in the LMDS
auctions. A total of 93 small and very small business bidders won
approximately 277 A Block licenses and 387 B Block licenses. On March
27, 1999, the Commission re-auctioned 161 licenses; there were 32 small
and very small business winning that won 119 licenses.
---------------------------------------------------------------------------
\183\ See Rulemaking to Amend Parts 1, 2, 21, 25, of the
Commission's Rules to Redesignate the 27.5-29.5 GHz Frequency Band,
Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and
Policies for Local Multipoint Distribution Service and for Fixed
Satellite Services, Second Report and Order, Order on
Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC
Rcd 12545, 12689-90, para. 348 (1997).
\184\ See Rulemaking to Amend Parts 1, 2, 21, 25, of the
Commission's Rules to Redesignate the 27.5-29.5 GHz Frequency Band,
Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and
Policies for Local Multipoint Distribution Service and for Fixed
Satellite Services, Second Report and Order, Order on
Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC
Rcd 12545, 12689-90, para. 348 (1997).
\185\ See Rulemaking to Amend Parts 1, 2, 21, 25, of the
Commission's Rules to Redesignate the 27.5-29.5 GHz Frequency Band,
Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and
Policies for Local Multipoint Distribution Service and for Fixed
Satellite Services, Second Report and Order, Order on
Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC
Rcd 12545, 12689-90, para. 348 (1997).
\186\ See Letter to Dan Phythyon, Chief, Wireless
Telecommunications Bureau, FCC, from Aida Alvarez, Administrator,
SBA (Jan. 6, 1998).
---------------------------------------------------------------------------
99. 218-219 MHz Service. The first auction of 218-219 MHz
(previously referred to as the Interactive and Video Data Service or
IVDS) spectrum resulted in 178 entities winning licenses for 594
Metropolitan Statistical Areas (MSAs).\187\ Of the 594 licenses, 567
were won by 167 entities qualifying as a small business. For that
auction, we defined a small business as an entity that, together with
its affiliates, has no more than a $6 million net worth and, after
federal income taxes (excluding any carry over losses), has no more
than $2 million in annual profits each year for the previous two
years.\188\ In the 218-219 MHz Report and Order and Memorandum Opinion
and Order, we defined a small business as an entity that, together with
its affiliates and persons or entities that hold interests in such an
entity and their affiliates, has average annual gross revenues not
exceeding $15 million for the preceding three years.\189\ A very small
business is defined as an entity that, together with its affiliates and
persons or entities that hold interests in such an entity and its
affiliates, has average annual gross revenues not exceeding $3 million
for the preceding three years.\190\ The SBA has approved of these
definitions.\191\ At this time, we cannot estimate the number of
licenses that will be won by entities qualifying as small or very small
businesses under our rules in future auctions of 218-219 MHz spectrum.
Given the success of small businesses in previous auction, and the
prevalence of small businesses in the subscription television services
and message communications industries, we assume for purposes of this
analysis that in future auctions, many, and perhaps all, of the
licenses may be awarded to small businesses.
---------------------------------------------------------------------------
\187\ See ``Interactive Video and Data Service (IVDS)
Applications Accepted for Filing,'' Public Notice, 9 FCC Rcd 6227
(1994).
\188\ Implementation of Section 309(j) of the Communications
Act--Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330
(1994).
\189\ Amendment of Part 95 of the Commission's Rules to Provide
Regulatory Flexibility in the 218-219 MHz Service, Report and Order
and Memorandum Opinion and Order, 15 FCC Rcd 1497 (1999).
\190\ Id.
\191\ See Letter to Daniel Phythyon, Chief, Wireless
Telecommunications Bureau, Federal Communications Commission, from
Aida Alvarez, Administrator, Small Business Administration, dated
January 6, 1998.
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100. Location and Monitoring Service (LMS). Multilateration LMS
systems use non-voice radio techniques to determine the location and
status of mobile radio units. For purposes of auctioning LMS licenses,
the Commission has defined ``small business'' as an entity that,
together with controlling interests and affiliates, has average annual
gross revenues for the preceding three years not exceeding $15
million.\192\ A ``very small business'' is defined as an entity that,
together with controlling interests and affiliates, has average annual
gross revenues for the preceding three years not exceeding $3
million.\193\ These definitions have been approved by the SBA.\194\ An
auction for LMS licenses commenced on February 23, 1999, and closed on
March 5, 1999. Of the 528 licenses auctioned, 289 licenses were sold to
four small businesses. We cannot accurately predict the number of
remaining licenses that could be awarded to small entities in future
LMS auctions.
---------------------------------------------------------------------------
\192\ Amendment of Part 90 of the Commission's Rules to Adopt
Regulations for Automatic Vehicle Monitoring Systems, Second Report
and Order, 13 FCC Rcd 15182, 15192 para. 20 (1998); see also 47 CFR
90.1103.
\193\ Amendment of Part 90 of the Commission's Rules to Adopt
Regulations for Automatic Vehicle Monitoring Systems, Second Report
and Order, 13 FCC Rcd at 15192, para. 20; see also 47 CFR 90.1103.
\194\ See Letter to Thomas Sugrue, Chief, Wireless
Telecommunications Bureau, Federal Communications Commission, from
Aida Alvarez, Administrator, Small Business Administration, dated
February 22, 1999.
---------------------------------------------------------------------------
101. Rural Radiotelephone Service. The Commission has not adopted a
size standard for small businesses specific to the Rural Radiotelephone
Service.\195\ A significant subset of the Rural Radiotelephone Service
is the Basic Exchange Telephone Radio System (BETRS).\196\ The
Commission uses the SBA's small business size standard applicable to
``Cellular and Other Wireless Telecommunications,'' i.e., an entity
employing no more than 1,500 persons.\197\ There are approximately
1,000 licensees in the Rural Radiotelephone Service, and the Commission
estimates that there are 1,000 or fewer small entity licensees in the
Rural Radiotelephone Service that may be affected by the rules and
policies proposed herein.
102. Air-Ground Radiotelephone Service. The Commission has not
adopted a small business size standard specific to the Air-Ground
Radiotelephone Service.\198\ We will use SBA's small business size
standard applicable to ``Cellular and Other Wireless
Telecommunications,'' i.e., an
[[Page 41983]]
entity employing no more than 1,500 persons.\199\ There are
approximately 100 licensees in the Air-Ground Radiotelephone Service,
and we estimate that almost all of them qualify as small under the SBA
small business size standard.
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\195\ The service is defined in section 22.99 of the
Commission's Rules, 47 CFR 22.99.
\196\ BETRS is defined in sections 22.757 and 22.759 of the
Commission's Rules, 47 CFR 22.757 and 22.759.
\197\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
\198\ The service is defined in section 22.99 of the
Commission's Rules, 47 CFR 22.99.
\199\ 13 CFR 121.201, NAICS codes 513322 (changed to 517212 in
October 2002).
---------------------------------------------------------------------------
103. Aviation and Marine Radio Services. Small businesses in the
aviation and marine radio services use a very high frequency (VHF)
marine or aircraft radio and, as appropriate, an emergency position-
indicating radio beacon (and/or radar) or an emergency locator
transmitter. The Commission has not developed a small business size
standard specifically applicable to these small businesses. For
purposes of this analysis, the Commission uses the SBA small business
size standard for the category ``Cellular and Other
Telecommunications,'' which is 1,500 or fewer employees.\200\ Most
applicants for recreational licenses are individuals. Approximately
581,000 ship station licensees and 131,000 aircraft station licensees
operate domestically and are not subject to the radio carriage
requirements of any statute or treaty. For purposes of our evaluations
in this analysis, we estimate that there are up to approximately
712,000 licensees that are small businesses (or individuals) under the
SBA standard. In addition, between December 3, 1998 and December 14,
1998, the Commission held an auction of 42 VHF Public Coast licenses in
the 157.1875-157.4500 MHz (ship transmit) and 161.775-162.0125 MHz
(coast transmit) bands. For purposes of the auction, the Commission
defined a ``small'' business as an entity that, together with
controlling interests and affiliates, has average gross revenues for
the preceding three years not to exceed $15 million dollars. In
addition, a ``very small'' business is one that, together with
controlling interests and affiliates, has average gross revenues for
the preceding three years not to exceed $3 million dollars.\201\ There
are approximately 10,672 licensees in the Marine Coast Service, and the
Commission estimates that almost all of them qualify as ``small''
businesses under the above special small business size standards.
---------------------------------------------------------------------------
\200\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
\201\ Amendment of the Commission's Rules Concerning Maritime
Communications, PR Docket No. 92-257, Third Report and Order and
Memorandum Opinion and Order, 13 FCC Rcd 19853 (1998).
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104. Offshore Radiotelephone Service. This service operates on
several ultra high frequencies (UHF) television broadcast channels that
are not used for television broadcasting in the coastal areas of states
bordering the Gulf of Mexico.\202\ There are presently approximately 55
licensees in this service. We are unable to estimate at this time the
number of licensees that would qualify as small under the SBA's small
business size standard for ``Cellular and Other Wireless
Telecommunications'' services.\203\ Under that SBA small business size
standard, a business is small if it has 1,500 or fewer employees.\204\
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\202\ This service is governed by Subpart I of Part 22 of the
Commission's Rules. See 47 CFR 22.1001-22.1037.
\203\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
\204\ Id.
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105. Multiple Address Systems (MAS). Entities using MAS spectrum,
in general, fall into two categories: (1) Those using the spectrum for
profit-based uses, and (2) those using the spectrum for private
internal uses. With respect to the first category, the Commission
defines ``small entity'' for MAS licenses as an entity that has average
gross revenues of less than $15 million in the three previous calendar
years.\205\ ``Very small business'' is defined as an entity that,
together with its affiliates, has average gross revenues of not more
than $3 million for the preceding three calendar years.\206\ The SBA
has approved of these definitions.\207\ The majority of these entities
will most likely be licensed in bands where the Commission has
implemented a geographic area licensing approach that would require the
use of competitive bidding procedures to resolve mutually exclusive
applications. The Commission's licensing database indicates that, as of
January 20, 1999, there were a total of 8,670 MAS station
authorizations. Of these, 260 authorizations were associated with
common carrier service. In addition, an auction for 5,104 MAS licenses
in 176 EAs began November 14, 2001, and closed on November 27,
2001.\208\ Seven winning bidders claimed status as small or very small
businesses and won 611 licenses.
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\205\ See Amendment of the Commission's Rules Regarding Multiple
Address Systems, Report and Order, 15 FCC Rcd 11956, 12008, para.
123 (2000).
\206\ Id.
\207\ See Letter to Thomas Sugrue, Chief, Wireless
Telecommunications Bureau, Federal Communications Commission, from
Aida Alvarez, Administrator, Small Business Administration, dated
June 4, 1999.
\208\ See ``Multiple Address Systems Spectrum Auction Closes,''
Public Notice, 16 FCC Rcd 21011 (2001).
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106. With respect to the second category, which consists of
entities that use, or seek to use, MAS spectrum to accommodate internal
communications needs, we note that MAS serves an essential role in a
range of industrial, safety, business, and land transportation
activities. MAS radios are used by companies of all sizes, operating in
virtually all U.S. business categories, and by all types of public
safety entities. For the majority of private internal users, the
definitions developed by the SBA would be more appropriate. The
applicable definition of small entity in this instance appears to be
the ``Cellular and Other Wireless Telecommunications'' definition under
the SBA rules. This definition provides that a small entity is any
entity employing no more than 1,500 persons.\209\ The Commission's
licensing database indicates that, as of January 20, 1999, of the 8,670
total MAS station authorizations, 8,410 authorizations were for private
radio service, and of these, 1,433 were for private land mobile radio
service.
---------------------------------------------------------------------------
\209\ See 13 CFR 121.201, NAICS code 517212.
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107. Incumbent 24 GHz Licensees. This analysis may affect incumbent
licensees who were relocated to the 24 GHz band from the 18 GHz band,
and applicants who wish to provide services in the 24 GHz band. The
applicable SBA small business size standard is that of ``Cellular and
Other Wireless Telecommunications'' companies. This category provides
that such a company is small if it employs no more than 1,500
persons.\210\ According to Census Bureau data for 1997, there were 977
firms in this category, total, that operated for the entire year.\211\
Of this total, 965 firms had employment of 999 or fewer employees, and
an additional 12 firms had employment of 1,000 employees or more.\212\
Thus, under this size standard, the great majority of firms can be
considered small. These broader census data notwithstanding, we believe
that there are only two licensees in the 24 GHz band that were
relocated from the 18 GHz band, Teligent \213\ and TRW, Inc. It is our
understanding that Teligent and its related companies have less than
1,500 employees, though this may
[[Page 41984]]
change in the future. TRW is not a small entity. Thus, only one
incumbent licensee in the 24 GHz band is a small business entity.
---------------------------------------------------------------------------
\210\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
\211\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
Information, ``Employment Size of Firms Subject to Federal Income
Tax: 1997,'' Table 5, NAICS code 513322 (issued October 2000).
\212\ Id. The census data do not provide a more precise estimate
of the number of firms that have employment of 1,500 or fewer
employees; the largest category provided is ``Firms with 1,000
employees or more.''
\213\ Teligent acquired the DEMS licenses of FirstMark, the only
licensee other than TRW in the 24 GHz band whose license has been
modified to require relocation to the 24 GHz band.
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108. Future 24 GHz Licensees. With respect to new applicants in the
24 GHz band, we have defined ``small business'' as an entity that,
together with controlling interests and affiliates, has average annual
gross revenues for the three preceding years not exceeding $15
million.\214\ ``Very small business'' in the 24 GHz band is defined as
an entity that, together with controlling interests and affiliates, has
average gross revenues not exceeding $3 million for the preceding three
years.\215\ The SBA has approved these definitions.\216\ The Commission
will not know how many licensees will be small or very small businesses
until the auction, if required, is held.
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\214\ Amendments to Parts 1, 2, 87 and 101 of the Commission's
Rules To License Fixed Services at 24 GHz, Report and Order, 15 FCC
Rcd 16934, 16967, para. 77 (2000) (24 GHz Report and Order); see
also 47 CFR 101.538(a)(2).
\215\ 24 GHz Report and Order, 15 FCC Rcd at 16967, para. 77;
see also 47 CFR 101.538(a)(1).
\216\ See Letter to Margaret W. Wiener, Deputy Chief, Auctions
and Industry Analysis Division, Wireless Telecommunications Bureau,
Federal Communications Commission, from Gary M. Jackson, Assistant
Administrator, Small Business Administration, dated July 28, 2000.
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109. Multipoint Distribution Service, Multichannel Multipoint
Distribution Service, and Instructional Television Fixed Service.
Multichannel Multipoint Distribution Service (MMDS) systems, often
referred to as ``wireless cable,'' transmit video programming to
subscribers using the microwave frequencies of the Multipoint
Distribution Service (MDS) and Instructional Television Fixed Service
(ITFS).\217\ In connection with the 1996 MDS auction, the Commission
defined--small business'' as an entity that, together with its
affiliates, has average gross annual revenues that are not more than
$40 million for the preceding three calendar years.\218\ The SBA has
approved of this standard.\219\ The MDS auction resulted in 67
successful bidders obtaining licensing opportunities for 493 Basic
Trading Areas (BTAs).\220\ Of the 67 auction winners, 61 claimed status
as a small business. At this time, we estimate that of the 61 small
business MDS auction winners, 48 remain small business licensees. In
addition to the 48 small businesses that hold BTA authorizations, there
are approximately 392 incumbent MDS licensees that have gross revenues
that are not more than $40 million and are thus considered small
entities.\221\
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\217\ Amendment of Parts 21 and 74 of the Commission's Rules
with Regard to Filing Procedures in the Multipoint Distribution
Service and in the Instructional Television Fixed Service and
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, Report and Order, 10 FCC Rcd 9589, 9593, para.
7 (1995) (MDS Auction R&O).
\218\ 47 CFR 21.961(b)(1).
\219\ See Letter to Margaret Wiener, Chief, Auctions and
Industry Analysis Division, Wireless Telecommunications Bureau,
Federal Communications Bureau, from Gary Jackson, Assistant
Administrator for Size Standards, Small Business Administration,
dated March 20, 2003 (noting approval of $40 million size standard
for MDS auction).
\220\ Basic Trading Areas (BTAs) were designed by Rand McNally
and are the geographic areas by which MDS was auctioned and
authorized. See MDS Auction R&O, 10 FCC Rcd at 9608, paragraph 34.
\221\ 47 U.S.C. 309(j). Hundreds of stations were licensed to
incumbent MDS licensees prior to implementation of Section 309(j) of
the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-
auction licenses, the applicable standard is SBA's small business
size standard for ``other telecommunications'' (annual receipts of
$12.5 million or less). See 13 CFR 121.201, NAICS code 517910.
---------------------------------------------------------------------------
110. In addition, the SBA has developed a small business size
standard for Cable and Other Program Distribution,\222\ which includes
all such companies generating $12.5 million or less in annual
receipts.\223\ According to Census Bureau data for 1997, there were a
total of 1,311 firms in this category, total, that had operated for the
entire year.\224\ Of this total, 1,180 firms had annual receipts of
under $10 million, and an additional 52 firms had receipts of $10
million or more but less than $25 million.\225\ Consequently, we
estimate that the majority of providers in this service category are
small businesses that may be affected by the proposed rules and
policies.
---------------------------------------------------------------------------
\222\ 13 CFR 121.201, NAICS code 517510.
\223\ Id.
\224\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4 (issued October 2000).
\225\ Id.
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111. Finally, while SBA approval for a Commission-defined small
business size standard applicable to ITFS is pending, educational
institutions are included in this analysis as small entities.\226\
There are currently 2,032 ITFS licensees, and all but 100 of these
licenses are held by educational institutions. Thus, we tentatively
conclude that at least 1,932 ITFS licensees are small businesses.
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\226\ In addition, the term ``small entity'' under SBREFA
applies to small organizations (nonprofits) and to small
governmental jurisdictions (cities, counties, towns, townships,
villages, school districts, and special districts with populations
of less than 50,000). 5 U.S.C. 601(4)-(6). We do not collect annual
revenue data on ITFS licensees.
---------------------------------------------------------------------------
112. Television Broadcasting. The Small Business Administration
defines a television broadcasting station that has no more than $12
million in annual receipts as a small business.\227\ Business concerns
included in this industry are those ``primarily engaged in broadcasting
images together with sound.'' \228\ According to Commission staff
review of the BIA Publications, Inc. Master Access Television Analyzer
Database as of May 16, 2003, about 814 of the 1,220 commercial
television stations in the United States have revenues of $12 million
or less. We note, however, that, in assessing whether a business
concern qualifies as small under the above definition, business
(control) affiliations \229\ 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. There are also
2,053 low power television stations (LPTV).\230\ Given the nature of
this service, we will presume that all LPTV licensees qualify as small
entities under the SBA definition.
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\227\ See OMB, North American Industry Classification System:
United States, 1997 at 509 (1997) (NAICS code 513120, which was
changed to code 515120 in October 2002).
\228\ OMB, North American Industry Classification System: United
States, 1997, at 509 (1997) (NAICS code 513120, which was changed to
code 51520 in October 2002). This category description continues,
``These establishments operate television broadcasting 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 studios, from an
affiliated network, or from external sources.'' Separate census
categories pertain to businesses primarily engaged in producing
programming. See id. at 502-05, NAICS code 51210. Motion Picture and
Video Production: code 512120, Motion Picture and Video
Distribution, code 512191, Teleproduction and Other Post-Production
Services, and code 512199, Other Motion Picture and Video
Industries.
\229\ ``Concerns are affiliates of each other when one concern
controls or has the power to control the other or a third party or
parties controls or has to power to control both.'' 13 CFR
121.103(a)(1).
\230\ FCC News Release, ``Broadcast Station Totals as of
September 30, 2004.''
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113. In addition, an element of the definition of ``small
business'' is that the entity not be dominant in its field of
operation. We are unable at this time to define or quantify the
criteria that would establish whether a specific television station is
dominant in its field of operation. Accordingly, the estimate of small
businesses to which rules may apply do not exclude any television
station from the definition of a small business on this basis and are
therefore over-inclusive to that extent. Also as noted, an additional
element of the definition of ``small business'' is that the
[[Page 41985]]
entity must be independently owned and operated. We note that it is
difficult at times to assess these criteria in the context of media
entities and our estimates of small businesses to which they apply may
be over-inclusive to this extent.
114. Radio Broadcasting. The SBA defines a radio broadcast entity
that has $6 million or less in annual receipts as a small
business.\231\ Business concerns included in this industry are those
``primarily engaged in broadcasting aural programs by radio to the
public.\232\ According to Commission staff review of the BIA
Publications, Inc., Master Access Radio Analyzer Database, as of May
16, 2003, about 10,427 of the 10,945 commercial radio stations in the
United States have revenue of $6 million or less. We note, however,
that many radio stations are affiliated with much larger corporations
with much higher revenue, and that in assessing whether a business
concern qualifies as small under the above definition, such business
(control) affiliations \233\ are included.\234\ Our estimate, therefore
likely overstates the number of small businesses that might be affected
by our action.
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\231\ See OMB, North American Industry Classification System:
United States, 1997, at 509 (1997) (Radio Stations) (NAICS code
513111, which was changed to code 515112 in October 2002).
\232\ Id.
\233\ ``Concerns are affiliates of each other when one concern
controls or has the power to control the other, or a third party or
parties controls or has the power to control both.'' 13 CFR
121.103(a)(1).
\234\ ``SBA counts the receipts or employees of the concern
whose size is at issue and those of all its domestic and foreign
affiliates, regardless of whether the affiliates are organized for
profit, in determining the concern's size.'' 13 CFR 121(a)(4).
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115. Auxiliary, Special Broadcast and Other Program Distribution
Services. This service involves a variety of transmitters, generally
used to relay broadcast programming to the public (through translator
and booster stations) or within the program distribution chain (from a
remote news gathering unit back to the station). The Commission has not
developed a definition of small entities applicable to broadcast
auxiliary licensees. The applicable definitions of small entities are
those, noted previously, under the SBA rules applicable to radio
broadcasting stations and television broadcasting stations.\235\
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\235\ 13 CFR 121.201, NAICS codes 513111 and 513112.
---------------------------------------------------------------------------
116. The Commission estimates that there are approximately 3,868 FM
translators and boosters.\236\ The Commission does not collect
financial information on any broadcast facility, and the Department of
Commerce does not collect financial information on these auxiliary
broadcast facilities. We believe that most, if not all, of these
auxiliary facilities could be classified as small businesses by
themselves. We also recognize that most commercial translators and
boosters are owned by a parent station which, in some cases, would be
covered by the revenue definition of small business entity discussed
above. These stations would likely have annual revenues that exceed the
SBA maximum to be designated as a small business ($5 million for a
radio station or $10.5 million for a TV station). Furthermore, they do
not meet the Small Business Act's definition of a ``small business
concern'' because they are not independently owned and operated.\237\
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\236\ FCC News Release, ``Broadcast Station Totals as of
September 30, 2004.''
\237\ 15 U.S.C. 632.
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117. Cable and Other Program Distribution. This category includes
cable systems operators, closed circuit television services, direct
broadcast satellite services, multipoint distribution systems,
satellite master antenna systems, and subscription television services.
The SBA has developed small business size standard for this census
category, which includes all such companies generating $12.5 million or
less in revenue annually.\238\ According to Census Bureau data for
1997, there were a total of 1,311 firms in this category, total, that
had operated for the entire year.\239\ Of this total, 1,180 firms had
annual receipts of under $10 million and an additional 52 firms had
receipts of $10 million or more but less than $25 million.
Consequently, the Commission estimates that the majority of providers
in this service category are small businesses that may be affected by
the rules and policies herein.
---------------------------------------------------------------------------
\238\ 13 CFR 121.201, NAICS code 513220 (changed to 517510 in
October 2002).
\239\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization)'', Table 4, NAICS code 513220 (issued October 2000).
---------------------------------------------------------------------------
118. Cable System Operators (Rate Regulation Standard). The
Commission has developed its own small business size standard for cable
system operators, for purposes of rate regulation. Under the
Commission's rules, a ``small cable company'' is one serving fewer than
400,000 subscribers nationwide.\240\ The most recent estimates indicate
that there were 1,439 cable operators who qualified as small cable
system operators at the end of 1995.\241\ Since then, some of those
companies may have grown to serve over 400,000 subscribers, and others
may have been involved in transactions that caused them to be combined
with other cable operators. Consequently, the Commission estimates that
there are now fewer than 1,439 small entity cable system operators that
may be affected by the rules and policies herein.
---------------------------------------------------------------------------
\240\ 47 CFR 76.901(e). The Commission developed this definition
based on its determination that a small cable system operator is one
with annual revenues of $100 million or less. Implementation of
Sections of the 1992 Cable Act: Rate Regulation, Sixth Report and
Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393 (1995),
60 FR 10534 (February 27, 1995).
\241\ Paul Kagan Associates, Inc., Cable TV Investor, February
29, 1996 (based on figures for December 30, 1995).
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119. Cable System Operators (Telecom Act Standard). The
Communications Act of 1934, as amended, also contains a size standard
for small cable system operators, which is ``a cable operator that,
directly or through an affiliate, serves in the aggregate fewer than 1
percent of all subscribers in the United States and is not affiliated
with any entity or entities whose gross annual revenues in the
aggregate exceed $250,000,000.'' \242\ The Commission has determined
that there are 65,000,000 subscribers in the United States.\243\
Therefore, an operator serving fewer than 650,000 subscribers shall be
deemed a small operator, if its annual revenues, when combined with the
total annual revenues of all its affiliates, do not exceed $250 million
in the aggregate.\244\ Based on available data, the Commission
estimates that the number of cable operators serving 650,000
subscribers or fewer, totals 1,450.\245\ The Commission neither
requests nor collects information on whether cable system operators are
affiliated with entities whose gross annual revenues exceed $250
million,\246\ and therefore are unable, at this time, to estimate more
accurately the number of cable system operators that would qualify as
small cable operators under the size standard contained in the
Communications Act of 1934.
---------------------------------------------------------------------------
\242\ 47 U.S.C. 543(m)(2).
\243\ See FCC Announces New Subscriber Count for the Definition
of Small Cable Operator, Public Notice, DA 01-158 (January 24,
2001).
\244\ 47 CFR 76.901(f).
\245\ See FCC Announces New Subscriber Count for the Definition
of Small Cable Operators, Public Notice, DA-01-0158 (released
January 24, 2001).
\246\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's
finding that the operator does not qualify as a small cable operator
pursuant to section 76.901(f) of the Commission's rules. See 47 CFR
76.909(b).
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120. Open Video Services. Open Video Service (OVS) systems provide
subscription services.\247\ The SBA has created a small business size
standard for Cable and Other Program
[[Page 41986]]
Distribution.\248\ This standard provides that a small entity is one
with $12.5 million or less in annual receipts. The Commission has
certified approximately 25 OVS operators to serve 75 areas, and some of
these are currently providing service.\249\ Affiliates of Residential
Communications Network, Inc. (RCN) received approval to operate OVS
systems in New York City, Boston, Washington, DC, and other areas. RCN
has sufficient revenues to assure that they do not qualify as a small
business entity. Little financial information is available for the
other entities that are authorized to provide OVS and are not yet
operational. Given that some entities authorized to provide OVS service
have not yet begun to generate revenues, the Commission concludes that
up to 24 OVS operators (those remaining) might qualify as small
businesses that may be affected by the rules and policies herein.
---------------------------------------------------------------------------
\247\ See 47 U.S.C. 573.
\248\ 13 CFR 121.201, NAICS code 513220 (changed to 517510 in
October 2002).
\249\ See http://www.fcc.gov/csb/ovs/csovscer.html (current as
of March 2002).
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121. Cable Television Relay Service. This service includes
transmitters generally used to relay cable programming within cable
television system distribution systems. The SBA has defined a small
business size standard for Cable and other Program Distribution,
consisting of all such companies having annual receipts of no more than
$12.5 million.\250\ According to Census Bureau data for 1997, there
were 1,311 firms in the industry category Cable and Other Program
Distribution, total, that operated for the entire year.\251\ Of this
total, 1,180 firms had annual receipts of $10 million or less, and an
additional 52 firms had receipts of $10 million or more but less than
$25 million.\252\ Thus, under this standard, we estimate that the
majority of providers in this service category are small businesses
that may be affected by the rules and policies herein.
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\250\ 13 CFR 121.201, NAICS code 517510.
\251\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4 (issued October 2000).
\252\ Id.
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122. Multichannel Video Distribution and Data Service. MVDDS is a
terrestrial fixed microwave service operating in the 12.2-12.7 GHz
band. No auction has yet been held in this service, although an action
has been scheduled for January 14, 2004.\253\ Accordingly, there are no
licensees in this service.
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\253\ ``Auctions of Licenses in the Multichannel Video
Distribution and Data Service Rescheduled for January 14, 2004,''
Public Notice, DA 03-2354 (August 28, 2003).
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123. Amateur Radio Service. These licensees are believed to be
individuals, and therefore are not small entities.
124. Aviation and Marine Services. Small businesses in the aviation
and marine radio services use a very high frequency (VHF) marine or
aircraft radio and, as appropriate, an emergency position-indicating
radio beacon (and/or radar) or an emergency locator transmitter. The
Commission has not developed a small business size standard
specifically applicable to these small businesses. For purposes of this
analysis, the Commission uses the SBA small business size standard for
the category ``Cellular and Other Telecommunications,'' which is 1,500
or fewer employees.\254\ Most applicants for recreational licenses are
individuals. Approximately 581,000 ship station licensees and 131,000
aircraft station licensees operate domestically and are not subject to
the radio carriage requirements of any statute or treaty. For purposes
of our evaluations in this analysis, we estimate that there are up to
approximately 712,000 licensees that are small businesses (or
individuals) under the SBA standard. In addition, between December 3,
1998 and December 14, 1998, the Commission held an auction of 42 VHF
Public Coast licenses in the 157.1875-157.4500 MHz (ship transmit) and
161.775-162.0125 MHz (coast transmit) bands. For purposes of the
auction, the Commission defined a ``small'' business as an entity that,
together with controlling interests and affiliates, has average gross
revenues for the preceding three years not to exceed $15 million
dollars. In addition, a ``very small'' business is one that, together
with controlling interests and affiliates, has average gross revenues
for the preceding three years not to exceed $3 million dollars.\255\
There are approximately 10,672 licensees in the Marine Coast Service,
and the Commission estimates that almost all of them qualify as
``small'' businesses under the above special small business size
standards.
---------------------------------------------------------------------------
\254\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in
October 2002).
\255\ Amendment of the Commission's Rules Concerning Maritime
Communications, Third Report and Order and Memorandum Opinion and
Order, 13 FCC Rcd 19853 (1998).
---------------------------------------------------------------------------
125. Personal Radio Services. Personal radio services provide
short-range, low power radio for personal communications, radio
signaling, and business communications not provided for in other
services. The Personal Radio Services include spectrum licensed under
Part 95 of our rules.\256\ These services include Citizen Band Radio
Service (CB), General Mobile Radio Service (GMRS), Radio Control Radio
Service (R/C), Family Radio Service (FRS), Wireless Medical Telemetry
Service (WMTS), Medical Implant Communications Service (MICS), Low
Power Radio Service (LPRS), and Multi-Use Radio Service (MURS).\257\
There are a variety of methods used to license the spectrum in these
rule parts, from licensing by rule, to conditioning operation on
successful completion of a required test, to site-based licensing, to
geographic area licensing. Under the RFA, the Commission is required to
make a determination of which small entities are directly affected by
these rules. Since all such entities are wireless, we apply the
definition of cellular and other wireless telecommunications, pursuant
to which a small entity is defined as employing 1,500 or fewer
persons.\258\ Many of the licensees in these services are individuals,
and thus are not small entities. In addition, due to the mostly
unlicensed and shared nature of the spectrum utilized in many of these
services, the Commission lacks direct information upon which to base an
estimation of the number of small entities under an SBA definition that
might be directly affected by these rules.
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\256\ 47 CFR part 90.
\257\ The Citizens Band Radio Service, General Mobile Radio
Service, Radio Control Radio Service, Family Radio Service, Wireless
Medical Telemetry Service, Medical Implant Communications Service,
Low Power Radio Service, and Multi-Use Radio Service are governed by
Subpart D, Subpart A, Subpart C, Subpart B, Subpart H, Subpart I,
Subpart G, and Subpart J, respectively, of Part 95 of the
Commission's rules. See generally 47 CFR part 95.
\258\ 13 CFR 121.201, NAICS Code 517212.
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126. Public Safety Radio Services. Public Safety radio services
include police, fire, local government, forestry conservation, highway
maintenance, and emergency medical services.\259\
[[Page 41987]]
There are a total of approximately 127,540 licensees in these services.
Governmental entities \260\ as well as private businesses comprise the
licensees for these services. All governmental entities with
populations of less than 50,000 fall within the definition of a small
entity.\261\
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\259\ With the exception of the special emergency service, these
services are governed by Subpart B of part 90 of the Commission's
Rules, 47 CFR 90.15-90.27. The police service includes approximately
27,000 licensees that serve state, county, and municipal enforcement
through telephony (voice), telegraphy (code) and teletype and
facsimile (printed material). The fire radio service includes
approximately 23,000 licensees comprised of private volunteer or
professional fire companies as well as units under governmental
control. The local government service that is presently comprised of
approximately 41,000 licensees that are state, county, or municipal
entities that use the radio for official purposes not covered by
other public safety services. There are approximately 7,000
licensees within the forestry service which is comprised of
licensees from state departments of conservation and private forest
organizations who set up communications networks among fire lookout
towers and ground crews. The approximately 9,000 state and local
governments are licensed to highway maintenance service provide
emergency and routine communications to aid other public safety
services to keep main roads safe for vehicular traffic. The
approximately 1,000 licensees in the Emergency Medical Radio Service
(EMRS) use the 39 channels allocated to this service for emergency
medical service communications related to the delivery of emergency
medical treatment. 47 CFR 90.15-90.27. The approximately 20,000
licensees in the special emergency service include medical services,
rescue organizations, veterinarians, handicapped persons, disaster
relief organizations, school buses, beach patrols, establishments in
isolated areas, communications standby facilities, and emergency
repair of public communications facilities. 47 CFR 90.33-90.55.
\260\ 47 CFR 1.1162.
\261\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------
IV. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
127. With certain exceptions, the Commission's Schedule of
Regulatory Fees applies to all Commission licensees and regulatees.
Most licensees will be required to count the number of licenses or call
signs authorized, complete and submit an FCC Form 159 (``FCC Remittance
Advice''), and pay a regulatory fee based on the number of licenses or
call signs.\262\ Interstate telephone service providers must compute
their annual regulatory fee based on their interstate and international
end-user revenue using information they already supply to the
Commission in compliance with the Form 499-A, Telecommunications
Reporting Worksheet, and they must complete and submit the FCC Form
159. Compliance with the fee schedule will require some licensees to
tabulate the number of units (e.g., cellular telephones, pagers, cable
TV subscribers) they have in service, and complete and submit an FCC
Form 159. Licensees ordinarily will keep a list of the number of units
they have in service as part of their normal business practices. No
additional outside professional skills are required to complete the FCC
Form 159, and it can be completed by the employees responsible for an
entity's business records.
---------------------------------------------------------------------------
\262\ The following categories are exempt from the Commission's
Schedule of Regulatory Fees: Amateur radio licensees (except
applicants for vanity call signs) and operators in other non-
licensed services (e.g., Personal Radio, part 15, ship and
aircraft). Governments and non-profit (exempt under section 501(c)
of the Internal Revenue Code) entities are exempt from payment of
regulatory fees and need not submit payment. Non-commercial
educational broadcast licensees are exempt from regulatory fees as
are licensees of auxiliary broadcast services such as low power
auxiliary stations, television auxiliary service stations, remote
pickup stations and aural broadcast auxiliary stations where such
licenses are used in conjunction with commonly owned non-commercial
educational stations. Emergency Alert System licenses for auxiliary
service facilities are also exempt as are instructional television
fixed service licensees. Regulatory fees are automatically waived
for the licensee of any translator station that: (1) Is not licensed
to, in whole or in part, and does not have common ownership with,
the licensee of a commercial broadcast station; (2) does not derive
income from advertising; and (3) is dependent on subscriptions or
contributions from members of the community served for support.
Receive only earth station permittees are exempt from payment of
regulatory fees. A regulatee will be relieved of its fee payment
requirement if its total fee due, including all categories of fees
for which payment is due by the entity, amounts to less than $10.
---------------------------------------------------------------------------
128. Each licensee must submit the FCC Form 159 to the Commission's
lockbox bank after computing the number of units subject to the fee.
Licensees may also file electronically to minimize the burden of
submitting multiple copies of the FCC Form 159. Applicants who pay
small fees in advance and provide fee information as part of their
application must use FCC Form 159.
129. Licensees and regulatees are advised that failure to submit
the required regulatory fee in a timely manner will subject the
licensee or regulatee to a late payment penalty of 25 percent in
addition to the required fee.\263\ If payment is not received, new or
pending applications may be dismissed, and existing authorizations may
be subject to rescission.\264\ Further, in accordance with the Debt
Collection Improvement Act of 1996, federal agencies may bar a person
or entity from obtaining a Federal loan or loan insurance guarantee if
that person or entity fails to pay a delinquent debt owed to any
federal agency.\265\ Nonpayment of regulatory fees is a debt owed the
United States pursuant to 31 U.S.C. 3711 et seq., and the Debt
Collection Improvement Act of 1996, Public Law 194-134. Appropriate
enforcement measures as well as administrative and judicial remedies,
may be exercised by the Commission. Debts owed to the Commission may
result in a person or entity being denied a federal loan or loan
guarantee pending before another federal agency until such obligations
are paid.\266\
---------------------------------------------------------------------------
\263\ 47 CFR 1.1164.
\264\ 47 CFR 1.1164(c).
\265\ Public Law 104-134, 110 Stat. 1321 (1996).
\266\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------
130. The Commission's rules currently provide for relief in
exceptional circumstances. Persons or entities may request a waiver,
reduction or deferment of payment of the regulatory fee.\267\ However,
timely submission of the required regulatory fee must accompany
requests for waivers or reductions. This will avoid any late payment
penalty if the request is denied. The fee will be refunded if the
request is granted. In exceptional and compelling instances (where
payment of the regulatory fee along with the waiver or reduction
request could result in reduction of service to a community or other
financial hardship to the licensee), the Commission will defer payment
in response to a request filed with the appropriate supporting
documentation.
---------------------------------------------------------------------------
\267\ 47 CFR 1.1166.
---------------------------------------------------------------------------
V. Steps Taken to Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
131. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its proposed approach,
which may include the following four alternatives: (1) The
establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities;
(3) the use of performance, rather than design, standards; and (4) an
exemption from coverage of the rule, or any part thereof, for small
entities. As described in Section III of this FRFA, supra, we have
created procedures in which all fee-filing licensees and regulatees use
a single form, FCC Form 159, and have described in plain language the
general filing requirements. We have sought comment on other
alternatives that might simplify our fee procedures or otherwise
benefit small entities, while remaining consistent with our statutory
responsibilities in this proceeding.
132. The Omnibus Appropriations Act for FY 2005, Public Law 108-
447, requires the Commission to revise its Schedule of Regulatory Fees
in order to recover the amount of regulatory fees that Congress,
pursuant to section 9(a) of the Communications Act, as amended, has
required the Commission to collect for Fiscal Year (FY) 2005.\268\ As
noted, we sought comment on the proposed methodology for implementing
these statutory requirements and any other potential impact of these
proposals on small entities.
---------------------------------------------------------------------------
\268\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------
133. We have previously used cost accounting data for computation
of regulatory fees, but found that some fees which were very small in
previous years would have increased dramatically and would have a
disproportionate impact
[[Page 41988]]
on smaller entities. The methodology we are using in this Report and
Order minimizes this impact by limiting the amount of increase and
shifting costs to other services which, for the most part, are larger
entities.
134. Several categories of licensees and regulatees are exempt from
payment of regulatory fees. See, e.g., footnote 261, supra.
135. Report to Small Business Administration: The Commission will
send a copy of this Report and Order, including a copy of the FRFA to
the Chief Counsel for Advocacy of the Small Business Administration.
The Report and Order and FRFA (or summaries thereof) will also be
published in the Federal Register.
136. Report to Congress: The Commission will send a copy of this
Final Regulatory Flexibility Analysis (FRFA), along with this Report
and Order, in a report to Congress pursuant to the Congressional Review
Act, 5 U.S.C. 801(a)(1)(A).
Attachment B--Sources of Payment Unit Estimates for FY 2005
In order to calculate individual service fees for FY 2005, we
adjusted FY 2004 payment units for each service to more accurately
reflect expected FY 2005 payment liabilities. We obtained our updated
estimates through a variety of means. For example, we used Commission
licensee data bases, actual prior year payment records and industry and
trade association projections when available. The databases we
consulted include the Commission's Universal Licensing System (ULS),
International Bureau Filing System (IBFS), and Consolidated Database
System (CDBS). The industry sources we consulted include, but are not
limited to, Television & Cable Factbook by Warren Publishing, Inc. and
the Broadcasting and Cable Yearbook by Reed Elsevier, Inc, as well as
reports generated within the Commission such as the Wireline
Competition Bureau's Trends in Telephone Service and the Wireless
Telecommunications Bureau's Numbering Resource Utilization Forecast.
We tried to obtain verification for these estimates from multiple
sources and, in all cases, we compared FY 2005 estimates with actual FY
2004 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
exactly. These include an unknown number of waivers and/or exemptions
that may occur in FY 2005 and the fact that, in many services, the
number of actual licensees or station operators fluctuates from time to
time due to economic, technical or other reasons. Therefore, when we
note, for example, that our estimated FY 2005 payment units are based
on FY 2004 actual payment units, it does not necessarily mean that our
FY 2005 projection is exactly the same number as FY 2004. It means that
we have either rounded the FY 2005 number or adjusted it slightly to
account for these variables.
------------------------------------------------------------------------
Fee category Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, Based on Wireless Telecommunications
218-219 MHz, Marine (Ship & Bureau (WTB) projections of new
Coast), Aviation (Aircraft & applications and renewals taking into
Ground), GMRS, Amateur consideration existing Commission
Vanity Call Signs, Domestic licensee data bases. Aviation (Aircraft)
Public Fixed. and Marine (Ship) estimates have been
adjusted to take into consideration the
licensing of portions of these services
on a voluntary basis.
CMRS Cellular/Mobile Services Based on Wireless Telecommunications
Bureau estimates.
CMRS Messaging Services...... Based on Wireless Telecommunications
Bureau Competition Report estimates.
AM/FM Radio Stations......... Based on estimates from Media Services
Bureau estimates, adjusted for
exemptions, and actual FY 2004 payment
units.
UHF/VHF Television Stations.. Based on Media Services Bureau estimates
and actual FY 2004 payment units.
AM/FM/TV Construction Permits Based on Media Services Bureau estimates
and actual FY 2004 payment units.
LPTV, Translators and Based on actual FY 2004 payment units.
Boosters.
Broadcast Auxiliaries........ Based on actual FY 2004 payment units.
BRS (formerly MDS/MMDS)...... Based on Wireless Telecommunications
Bureau estimates and actual FY 2004
payment units.
Cable Television Relay Based on actual FY 2004 payment units.
Service (CARS) Stations.
Cable Television System Based on Media Services Bureau industry
Subscribers. estimates of subscribership, and actual
FY 2004 payment units.
Interstate Telecommunication Based on actual FY 2004 interstate
Service Providers. revenues reported on Telecommunications
Reporting Worksheet, adjusted for FY
2005 revenue growth/decline for
industry, and projections by the
Wireline Competition Bureau.
Earth Stations............... Based on actual FY 2004 payment estimates
and projected FY 2005 units.
Space Stations (GSOs & NGSOs) Based on International Bureau licensee
data base estimates.
International Bearer Circuits Based on FY 2004 actual paid units, and
adjusted for growth.
International HF Broadcast Based on International Bureau estimates.
Stations, International
Public Fixed Radio Service.
------------------------------------------------------------------------
Attachment C.--Calculation of FY 2005 Revenue Requirements and Pro-Rata 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 along
with the application at the time the application is filed.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Computed Rounded
FY 2004 Pro-rated FY new FY new FY
Fee category FY 2005 payment Years revenue 2005 revenue 2005 2005 Expected FY
units estimate requirement regulatory regulatory 2005 revenue
* fee fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive use)........................................ 3,700 10 340,000 349,068 9 10 370,000
PLMRS (Shared use)........................................... 46,000 10 2,300,000 2,361,342 5 5 2,300,000
Microwave.................................................... 2,600 10 1,500,000 1,540,006 59 60 1,560,000
218-219 MHz (Formerly IVDS).................................. 3 10 1,500 1,540 51 50 1,500
Marine (Ship)................................................ 7,000 10 585,000 600,602 9 10 700,000
[[Page 41989]]
GMRS......................................................... 21,000 5 375,000 385,001 4 5 525,000
Aviation (Aircraft).......................................... 7,400 10 155,000 159,134 2 5 370,000
Marine (Coast)............................................... 1,000 10 96,200 98,766 10 10 100,000
Aviation (Ground)............................................ 1,600 5 120,000 123,200 15 15 120,000
Amateur Vanity Call Signs.................................... 7,600 10 162,119 166,443 2.19 2.19 166,443
AM Class A................................................... 66 1 198,375 203,666 3,086 3,075 202,950
AM Class B................................................... 1,592 1 2,421,075 2,485,646 1,561 1,550 2,467,600
AM Class C................................................... 956 1 841,500 863,943 904 900 860,400
AM Class D................................................... 1,769 1 2,784,800 2,859,072 1,616 1,625 2,874,625
FM Classes A, B1 & C3........................................ 3,045 1 5,715,500 5,980,390 1,964 1,975 6,013,875
FM Classes B, C, C0, C1 & C2................................. 2,963 1 7,026,150 7,321,585 2,471 2,475 7,333,425
AM Construction Permits...................................... 113 1 33,945 34,850 308 310 35,030
FM Construction Permits \1\.................................. 98 1 267,300 53,929 550 550 53,900
Satellite TV................................................. 123 1 128,100 131,516 1,069 1,075 132,225
Satellite TV Construction Permit............................. 3 1 1,560 1,602 534 535 1,605
VHF Markets 1-10............................................. 43 1 2,596,125 2,665,365 61,985 61,975 2,664,925
VHF Markets 11-25............................................ 61 1 2,654,400 2,725,194 44,675 44,675 2,725,175
VHF Markets 26-50............................................ 72 1 2,246,475 2,306,389 32,033 32,025 2,305,800
VHF Markets 51-100........................................... 118 1 2,161,725 2,219,379 18,808 18,800 2,218,400
VHF Remaining Markets........................................ 211 1 951,750 977,134 4,631 4,625 975,875
UHF Construction Permits..................................... 9 1 27,900 28,644 3,183 3,175 28,575
UHF Markets 1-10............................................. 84 1 1,599,750 1,682,187 20,026 20,025 1,682,100
UHF Markets 11-25............................................ 79 1 1,310,175 1,384,889 17,530 17,525 1,384,475
UHF Markets 26-50............................................ 115 1 1,088,100 1,156,891 10,060 10,050 1,155,750
UHF Markets 51-100........................................... 162 1 943,500 993,971 6,136 6,125 992,250
UHF Remaining Markets........................................ 181 1 301,950 310,003 1,713 1,725 312,225
UHF Construction Permits \1\................................. 31 1 192,950 53,475 1,725 1,725 53,475
Broadcast Auxiliaries........................................ 25,000 1 250,000 256,668 10 10 250,000
LPTV/Translators/Boosters.................................... 2,900 1 1,116,500 1,146,277 395 395 1,145,500
CARS Stations................................................ 900 1 135,000 138,001 154 154 139,500
Cable TV Systems............................................. 65,000,000 1 45,500,000 46,713,502 0.719 0.72 46,800,000
Interstate Telecommunication Service Providers............... 54,000,000,000 1 127,530,000 130,931,273 0.002425 0.00243 131,220,000
CMRS Mobile Services (Cellular/Public Mobile)................ 179,000,000 1 38,250,000 39,565,080 0.221 0.22 39,380,000
CMRS Messaging Services...................................... 11,200,000 1 1,160,000 896,000 0.08 0.08 896,000
BRS \2\...................................................... 1,800 1 432,000 455,400 253 255 459,000
LMDS \3\..................................................... 330 1 91,800 83,490 253 255 84,150
International Bearer Circuits................................ 5,300,000 1 7,056,000 7,244,186 1.37 1.37 7,261,000
International Public Fixed................................... 1 1 1,750 1,797 1,797 1,800 1,800
Earth Stations............................................... 3,400 1 680,000 698,136 205 205 697,000
International HF Broadcast................................... 5 1 3,725 3,824 765 765 3,825
Space Stations (Geostationary)............................... 81 1 8,829,975 9,065,474 111,919 111,925 9,065,925
Space Stations (Non-Geostationary............................ 6 1 657,000 674,522 112,420 112,425 674,550
-------------------
Total Estimated Revenue to be Collected.................. ................ ..... 272,821,674 280,099,050 .......... .......... 280,765,853
===================
Total Revenue Requirement................................ ................ ..... 272,958,000 280,098,000 .......... .......... 280,098,000
===================
Difference................................................... ................ ..... (136,326) 1,050 .......... .......... 667,853
--------------------------------------------------------------------------------------------------------------------------------------------------------
*1,02615787 factor applied based on the amount Congress designated for recovery through regulatory fees (Public Law 108-7 and 47 U.S.C. 159(a)(2)).
\1\ The FM Construction Permit and UHF Construction Permit revenues were adjusted so that the construction permit fee is no higher than the level of the
lowest licensed fee for that class of service.
\2\ MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate
the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands et al., Report &
Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165 (2004).
\3\ Although we are tracking BRS (formerly MDS/MMDS) and LMDS separately in terms of payment units, the FY 2005 regulatory fee for BRS and LMDS is
calculated by combining the units and the ``Pro-Rated Revenue Requirements'' of both BRS and LMDS.
[[Page 41990]]
Attachment D.--FY 2005 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
along with the application at the time the application is filed]
------------------------------------------------------------------------
Annual
Fee category regulatory fee
(U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)... 10
Microwave (per license) (47 CFR part 101).............. 60
218-219 MHz (Formerly Interactive Video Data Service) 50
(per license) (47 CFR part 95)........................
Marine (Ship) (per station) (47 CFR part 80)........... 10
Marine (Coast) (per license) (47 CFR part 80).......... 10
General Mobile Radio Service (per license) (47 CFR part 5
95)...................................................
Rural Radio (47 CFR part 22) (previously listed under 5
the Land Mobile category).............................
PLMRS (Shared Use) (per license) (47 CFR part 90)...... 5
Aviation (Aircraft) (per station) (47 CFR part 87)..... 5
Aviation (Ground) (per license) (47 CFR part 87)....... 15
Amateur Vanity Call Signs (per call sign) (47 CFR part 2.19
97)...................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts .22
20, 22, 24, 27, 80 and 90)............................
CMRS Messaging Services (per unit) (47 CFR parts 20, .08
22, 24 and 90)........................................
Broadband Radio Service (formerly MMDS/ MDS) (per 255
license) (47 CFR part 21).............................
Local Multipoint Distribution Service (47 CFR, part 255
101)..................................................
AM Radio Construction Permits.......................... 310
FM Radio Construction Permits.......................... 550
TV (47 CFR part 73) VHF Commercial:
Markets 1-10....................................... 61,975
Markets 11-25...................................... 44,675
Markets 26-50...................................... 32,025
Markets 51-100..................................... 18,800
Remaining Markets.................................. 4,625
Construction Permits............................... 3,175
TV (47 CFR part 73) UHF Commercial:
Markets 1-10....................................... 20,025
Markets 11-25...................................... 17,525
Markets 26-50...................................... 10,050
Markets 51-100..................................... 6,125
Remaining Markets.................................. 1,725
Construction Permits............................... 1,725
Satellite Television Stations (All Markets)............ 1,075
Construction Permits--Satellite Television Stations.... 535
Low Power TV, TV/FM Translators & Boosters (47 CFR part 395
74)...................................................
Broadcast Auxiliaries (47 CFR part 74)................. 10
CARS (47 CFR part 78).................................. 155
Cable Television Systems (per subscriber) (47 CFR part .72
76)...................................................
Interstate Telecommunication Service Providers (per .00243
revenue dollar).......................................
Earth Stations (47 CFR part 25)........................ 205
Space Stations (per operational station in 111,925
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100)..................................................
Space Stations (per operational system in non- 112,425
geostationary orbit) (47 CFR part 25).................
International Bearer Circuits (per active 64KB circuit) 1.37
International Public Fixed (per call sign) (47 CFR part 1,800
23)...................................................
International (HF) Broadcast (47 CFR part 73).......... 765
------------------------------------------------------------------------
FY 2005 Schedule of Regulatory Fees (continued)
----------------------------------------------------------------------------------------------------------------
FY 2005 radio station regulatory fees
-----------------------------------------------------------------------------------------------------------------
FM classes FM classes
Population served AM class A AM class B AM class C AM class D A, B1 and B, C, C0,
C3 C1 and C2
----------------------------------------------------------------------------------------------------------------
< =25,000.................... 625 475 375 450 550 725
25,001-75,000............... 1,225 925 550 675 1,125 1,250
75,001-150,000.............. 1,825 1,150 750 1,125 1,550 2,300
150,001-500,000............. 2,750 1,950 1,125 1,350 2,375 3,000
500,001-1,200,000........... 3,950 2,975 1,875 2,250 3,750 4,400
1,200,001-3,000,00.......... 6,075 4,575 2,825 3,600 6,100 7,025
>3,000,000.................. 7,275 5,475 3,575 4,500 7,750 9,125
----------------------------------------------------------------------------------------------------------------
[[Page 41991]]
Attachment E--Factors, Measurements and Calculations That Go Into
Determining 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, phasing, 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
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.\269\ 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 \270\. Using the
calculated horizontal radiation values, and the retrieved soil
conductivity data, the distance to the city grade (5 mV/m) contour was
predicted for each of the 360 radials. The resulting distance to city
grade contours were used to form a geographical polygon. Population
counting was accomplished by determining which 2000 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 city grade coverage
area.
---------------------------------------------------------------------------
\269\ 47 CFR 73.150 and 73.152.
\270\ See Map of Estimated Effective Ground Conductivity in the
United States, 47 CFR 73.190 Figure R3.
---------------------------------------------------------------------------
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 section 73.313 of the Commission's rules to predict
the distance to the city grade (70 dBu (decibel above 1 microVolt per
meter) or 3.17 mV/m) contour for each of the 360 radials.\271\ The
resulting distance to city grade contours were used to form a
geographical polygon. Population counting was accomplished by
determining which 2000 block centroids were contained in the polygon.
The sum of the population figures for all enclosed blocks represents
the total population for the predicted city grade coverage area.
---------------------------------------------------------------------------
\271\ 47 CFR 73.313.
---------------------------------------------------------------------------
Attachment F
Parties Filing Comments on the Notice of Proposed Rulemaking
Blooston, Mordkofsky, Dickens, Duffy & Prendergast (``BMDDP'').
Cingular Wireless LLC (``Cingular'').
National Cable & Telecommunications Association (``NCTA'').
Satellite Industry Association (``SIA'').
Tyco Communications (US) Inc. (``Tyco'').
XO Communications, Inc. (``XO'').
Parties Filing Reply Comments
American Cable Association (``ACA'').
Cellular Telecommunications and Internet Association (``CTIA'').
DIRECTV, Inc. and EchoStar Satellite (``DirecTV & Echostar'').
Level 3 Communications (``Level 3'').
Tyco Communications (US) Inc. (``Tyco'').
Parties Filing a Notice of Oral Ex Parte Presentation
Tyco Telecommunications (``Tyco Telecom''), filed by Harris,
Wiltshire & Grannis, LLP.
Satellite company representatives from Intelsat, PanAmSat, and SES
Americom, Filed by Hogan & Hartson, LLP.
XO Communications (``XO''), Filed by Mintz, Levin, Cohn, Ferris,
Glovsky, and Popeo, PC.
Attachment G.--FY 2004 Schedule of Regulatory Fees
------------------------------------------------------------------------
Annual
Fee category regulatory fee
(U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)... 10
Microwave (per license) (47 CFR part 101).............. 50
218-219 MHz (Formerly Interactive Video Data Service) 50
(per license) (47 CFR part 95)........................
Marine (Ship) (per station) (47 CFR part 80)........... 15
Marine (Coast) (per license) (47 CFR part 80).......... 10
General Mobile Radio Service (per license) (47 CFR part 5
95)...................................................
Rural Radio (47 CFR part 22) (previously listed under 5
the Land Mobile category).............................
PLMRS (Shared Use) (per license) (47 CFR part 90)...... 5
Aviation (Aircraft) (per station) (47 CFR part 87)..... 5
Aviation (Ground) (per license) (47 CFR part 87)....... 15
Amateur Vanity Call Signs (per call sign) (47 CFR part 2.08
97)...................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts .25
20, 22, 24, 27, 80 and 90)............................
CMRS Messaging Services (per unit) (47 CFR parts 20, .08
22, 24 and 90)........................................
Multipoint Distribution Services (MMDS/ MDS) (per call 270
sign) (47 CFR part 21)................................
Local Multipoint Distribution Service (per call sign) 270
(47 CFR, part 101)....................................
AM Radio Construction Permits.......................... 465
FM Radio Construction Permits.......................... 1,650
TV (47 CFR part 73) VHF Commercial:
Markets 1-10....................................... 60,375
Markets 11-25...................................... 41,475
Markets 26-50...................................... 29,175
Markets 51-100..................................... 17,575
[[Page 41992]]
Remaining Markets.................................. 4,050
Construction Permits 4,650
TV (47 CFR part 73) UHF Commercial:
Markets 1-10....................................... 17,775
Markets 11-25...................................... 16,175
Markets 26-50...................................... 9,300
Markets 51-100..................................... 5,550
Remaining Markets.................................. 1,650
Construction Permits............................... 5,675
Satellite Television Stations (All Markets)............ 1,050
Construction Permits--Satellite Television Stations.... 520
Low Power TV, TV/FM Translators & Boosters (47 CFR part 385
74)...................................................
Broadcast Auxiliary (47 CFR part 74)................... 10
CARS (47 CFR part 78).................................. 135
Cable Television Systems (per subscriber) (47 CFR part .70
76)...................................................
Interstate Telecommunication Service Providers (per .00218
revenue dollar).......................................
Earth Stations (47 CFR part 25)........................ 200
Space Stations (per operational station in 114,675
geostationary orbit) (47 CFR part 25) also includes
Direct Broadcast Satellite Service (per operational
station) (47 CFR part 100)............................
Space Stations (per operational system in non- 131,400
geostationary orbit) (47 CFR part 25).................
International Bearer Circuits (per active 64KB circuit) 2.52
International Public Fixed (per call sign) (47 CFR part 1,750
23)...................................................
International (HF) Broadcast (47 CFR part 73).......... 745
------------------------------------------------------------------------
FY 2004 Schedule of Regulatory Fees (continued)
----------------------------------------------------------------------------------------------------------------
FY 2004 Radio station regulatory fees
-----------------------------------------------------------------------------------------------------------------
FM classes
Population served AM class A AM class B AM class C AM class D FM classes B, C, C0, C1
A, B1 & C3 & C2
----------------------------------------------------------------------------------------------------------------
< -25,000.................... 600 450 350 425 525 675
25,001-75,000............... 1,200 900 525 625 1,050 1,175
75,001-150,000.............. 1,800 1,125 700 1,075 1,450 2,200
150,001-500,000............. 2,700 1,925 1,050 1,275 2,225 2,875
500,001-1,200,000........... 3,900 2,925 1,750 2,125 3,550 4,225
1,200,001-3,000,00.......... 6,000 4,500 2,625 3,400 5,775 6,750
>3,000,000.................. 7,200 5,400 3,325 4,250 7,350 8,775
----------------------------------------------------------------------------------------------------------------
Statement of Commissioner Michael Copps, Concurring; Re: Assessment and
Collection of Regulatory Fees for Fiscal Year 2005
As in past years, I concur to emphasize that the Commission should
consider initiating a proceeding to address when or how it would adjust
the regulatory fees pursuant to section 9(b)(3) of the Act. As
technology advances and our regulatory activities change, we must
continue to look for ways to improve our regulatory fee methodology to
ensure that we continue to comply fully with the Act's requirements.
Statement of Commissioner Jonathan Adelstein Approving in Part,
Concurring in Part; Re: Assessment and Collection of Regulatory Fees
for Fiscal Year 2005; MD Docket No. 05-59
As in years past, I must concur to portions of our Regulatory Fee
Order because I remain troubled with the Commission's inability to
consider changes that undoubtedly occur from time to time in the costs
of regulatory fees for individual services. I encourage the Commission
to continue to improve its regulatory fee assessment processes so that
in the future we are more able to make these adjustments as
appropriate.
List of Subjects in 47 CFR Part 1
Administrative practice and procedure.
0
For the reasons discussed in the preamble, the Federal Communications
Commission amends 47 CFR part 1 as follows:
PART 1--PRACTICE AND PROCEDURE
0
1. The authority citation for part 1 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, 303, 309.
0
2. Section 1.1152 is revised to read as follows:
Sec. 1.1152 Schedule of annual regulatory fees and filing locations
for wireless radio services.
[[Page 41993]]
------------------------------------------------------------------------
Exclusive use services (per Fee amount
license) \1\ Address
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz
and 220 MHz Local, Base Station
& SMRS) (47 CFR part 90):
(a) New, Renew/Mod (FCC 601 $10.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 10.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
(c) Renewal Only (FCC 601 & 10.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only (Electronic 10.00 FCC, P.O. Box 358994,
Filing) (FCC 601 & 159). Pittsburgh, PA 15251-
5994.
220 MHz Nationwide:
(a) New, Renew/Mod (FCC 601 10.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 10.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
(c) Renewal Only (FCC 601 & 10.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only (Electronic 10.00 FCC, P.O. Box 358994,
Filing) (FCC 601 & 159). Pittsburgh, PA 15251-
5994.
2. Microwave (47 CFR 101)
(Private):
(a) New, Renew/Mod (FCC 601 60.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 60.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
(c) Renewal Only (FCC 601 & 60.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only (Electronic 60.00 FCC, P.O. Box 358994,
Filing) (FCC 601 & 159). Pittsburgh, PA 15251-
5994.
3. 218-219 MHz Service:
(a) New, Renew/Mod (FCC 601 50.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 50.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
(c) Renewal Only (FCC 601 & 50.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only (Electronic 50.00 FCC, P.O. Box 358994,
Filing) (FCC 601 & 159). Pittsburgh, PA 15251-
5994.
4. Shared Use Services, Land
Mobile (Frequencies Below 470
MHz--except 220 MHz):
(a) New, Renew/Mod (FCC 601 5.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
(c) Renewal Only (FCC 601 & 5.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only (Electronic 5.00 FCC, P.O. Box 358994,
Filing) (FCC 601 & 159). Pittsburgh, PA 15251-
5994.
General Mobile Radio Service:
(a) New, Renew/Mod (FCC 605 5.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
605 & 159). 5994.
(c) Renewal Only (FCC 605 & 5.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only (Electronic 5.00 FCC, P.O. Box 358994,
Filing) (FCC 605 & 159). Pittsburgh, PA 15251-
5994.
Rural Radio (Part 22):
(a) New, Additional 5.00 FCC, P.O. Box 358994,
Facility, Major Renew/Mod Pittsburgh, PA 15251-
(Electronic Filing) (FCC 5994.
601 & 159).
(b) Renewal, Minor Renew/Mod 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
Marine Coast:
(a) New Renewal/Mod (FCC 601 10.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) Renewal Only (FCC 601 & 10.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(c) Renewal Only (Electronic 10.00 FCC, P.O. Box 358994,
Filing) (FCC 601 & 159). Pittsburgh, PA 15251-
5994.
Aviation Ground:
(a) New, Renewal/Mod (FCC 15.00 FCC, P.O. Box 358130,
601 & 159). Pittsburgh, PA 15251-
5130.
(b) Renewal Only (FCC 601 & 15.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(c) Renewal Only (Electronic 15.00 FCC, P.O. Box 358994,
Filing) (FCC 601 & 159). Pittsburgh, PA 15251-
5994.
Marine Ship:
(a) New, Renewal/Mod (FCC 10.00 FCC, P.O. Box 358130,
605 & 159). Pittsburgh, PA 15251-
5130.
(b) New, Renewal/Mod 10.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
605 & 159). 5994.
(c) Renewal Only (FCC 605 & 10.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only (Electronic 10.00 FCC, P.O. Box 358994,
Filing) (FCC 605 & 159). Pittsburgh, PA 15251-
5994.
Aviation Aircraft:
(a) New, Renew/Mod (FCC 605 5.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
605 & 159). 5994.
(c) Renewal Only (FCC 605 & 5.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only (Electronic 5.00 FCC, P.O. Box 358994,
Filing) (FCC 605 & 159). Pittsburgh, PA 15251-
5994.
5. Amateur Vanity Call Signs
(a) Initial or Renew (FCC 2.19 FCC, P.O. Box 358130,
605 & 159). Pittsburgh, PA 15251-
5130.
(b) Initial or Renew 2.19 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
605 & 159). 5994.
6. CMRS Mobile Services (per \2\ .22 & FCC, P.O. Box 358835,
unit) (FCC 159). Pittsburgh, PA 15251-
5835.
7. CMRS Messaging Services \3\ .08 FCC, P.O. Box 358835,
(per unit) (FCC 159). Pittsburgh, PA 15251-
5835.
8. Multipoint Distribution 255 FCC, Multipoint, P.O.
(Includes MMDS and MDS). Box 358835, Pittsburgh,
PA 15251-5835.
9. Local Multipoint 255 FCC, Multipoint, P.O.
Distribution Service. Box 358835, Pittsburgh,
PA 15251-5835.
------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the entire
license term. Therefore, the annual fee amount shown in this table
that is a small fee (categories 1 through 5) must be multiplied by the
5- or 10-year license term, as appropriate, to arrive at the total
amount of regulatory fees owed. It should be further noted that
application fees may also apply as detailed in Sec. 1.1102.
\2\ These are standard fees that are to be paid in accordance with Sec.
1.1157(b).
\3\ These are standard fees that are to be paid in accordance with Sec.
1.1157(b).
[[Page 41994]]
0
3. Section 1.1153 is revised to read as follows:
Sec. 1.1153 Schedule of annual regulatory fees and filing locations
for mass media services.
------------------------------------------------------------------------
Radio [AM and FM] (47 CFR part
73) Fee amount Address
------------------------------------------------------------------------
1. AM Class A
< =25,000 population......... $625 FCC, Radio, P.O. Box
358835, Pittsburgh, PA
15251-5835.
25,001-75,000 population.... 1,225 ........................
75,001-150,000 population... 1,825 ........................
150,001-500,000 population.. 2,750 ........................
500,001-1,200,000 population 3,950 ........................
1,200,001-3,000,000 6,075 ........................
population.
>3,000,000 population....... 7,275 ........................
2. AM Class B
< =25,000 population......... 475 ........................
25,001-75,000 population.... 925 ........................
75,001-150,000 population... 1,150 ........................
150,001-500,000 population.. 1,950 ........................
500,001-1,200,000 population 2,975 ........................
1,200,001-3,000,000 4,575 ........................
population.
>3,000,000 population....... 5,475 ........................
3. AM Class C
>25,000 population.......... 375 ........................
25,001-75,000 population.... 550 ........................
75,001-150,000 population... 750 ........................
150,001-500,000 population.. 1,125 ........................
500,001-1,200,000 population 1,875 ........................
1,200,001-3,000,000 2,825 ........................
population.
>3,000,000 population....... 3,575 ........................
4. AM Class D
< =25,000 population......... 450 ........................
25,001-75,000 population.... 675 ........................
75,001-150,000 population... 1,125 ........................
150,001-500,000 population.. 1,350 ........................
500,001-1,200,000 population 2,250 ........................
1,200,001-3,000,000 3,600 ........................
population.
>3,000,000 population....... 4,500 ........................
5. AM Construction Permit....... 310 ........................
6. FM Classes A, B1 and C3
< =25,000 population......... 550 ........................
25,001-75,000 population.... 1,125 ........................
75,001-150,000 population... 1,550 ........................
150,001-500,000 population.. 2,375 ........................
500,001-1,200,000 population 3,750 ........................
1,200,001-3,000,000 6,100 ........................
population.
>3,000,000 population....... 7,750 ........................
7. FM Classes B, C, C0, C1 and
C2
< =25,000 population......... 725 ........................
25,001-75,000 population.... 1,250 ........................
75,001-150,000 population... 2,300 ........................
150,001-500,000 population.. 3,000 ........................
500,001-1,200,000 population 4,400 ........................
1,200,001-3,000,000 7,025 ........................
population.
>3,000,000 population....... 9,125 ........................
8. FM Construction Permits...... 550 ........................
TV (47 CFR part 73), VHF
Commercial:
1. Markets 1 thru 10........ 61,975 FCC, TV Branch, P.O. Box
358835, Pittsburgh, PA
15251-5835.
2. Markets 11 thru 25....... 44,675
3. Markets 26 thru 50....... 32,025 ........................
4. Markets 51 thru 100...... 18,800 ........................
5. Remaining Markets........ 4,625 ........................
6. Construction Permits..... 3,175 ........................
UHF Commercial:
1. Markets 1 thru 10........ 20,025 FCC, UHFCommercial, P.O.
Box 358835, Pittsburgh,
PA 15251-5835.
2. Markets 11 thru 25....... 17,525 ........................
3. Markets 26 thru 50....... 10,050 ........................
4. Markets 51 thru 100...... 6,125 ........................
5. Remaining Markets........ 1,725 ........................
6. Construction Permits..... 1,725 ........................
Satellite UHF/VHF Commercial:
1. All Markets.............. 1,075 FCC Satellite TV, P.O.
Box 358835, Pittsburgh,
PA 15251-5835.
2. Construction Permits..... 535 ........................
[[Page 41995]]
Low Power TV, TV/FM Translator, 395 FCC, Low Power, P.O. Box
& TV/FM Booster (47 CFR part 358835, Pittsbugh, PA
74) 15251-5835.
Broadcast Auxiliary............. 10 FCC, Auxiliary, P.O. Box
358835, Pittsburgh, PA
15251-5835.
------------------------------------------------------------------------
0
4. Section 1.1154 is revised to read as follows:
Sec. 1.1154 Schedule of annual regulatory charges and filing
locations for common carrier services.
------------------------------------------------------------------------
Fee amount Address
------------------------------------------------------------------------
Radio facilities:
1. Microwave (Domestic $60.00 FCC, P.O. Box 358994,
Public Fixed) (Electronic Pittsburgh, PA 15251-
Filing) (FCC Form 601 & 5994.
159).
Carriers:
1. Interstate Telephone .00243 FCC, Carriers, P.O. Box
Service Providers (per 358835, Pittsburgh, PA
interstate and 15251-5835.
international end-user
revenues (see FCC Form 499-
A).
------------------------------------------------------------------------
0
5. Section 1.1155 is revised to read as follows:
Sec. 1.1155 Schedule of regulatory fees and filing locations for
cable television services.
------------------------------------------------------------------------
Fee amount Address
------------------------------------------------------------------------
1. Cable Television Relay $155 FCC, Cable, P.O. Box
Service. 358835, Pittsburgh, PA
15251-5835.
2. Cable TV System (per .72 ........................
subscriber).
------------------------------------------------------------------------
0
6. Section 1.1156 is revised to read as follows:
Sec. 1.1156 Schedule of regulatory fees and filing locations for
international services.
------------------------------------------------------------------------
Fee amount Address
------------------------------------------------------------------------
Radio Facilities:
1. International (HF) $765 FCC, International, P.O.
Broadcast. Box 358835, Pittsburgh,
PA 15251-5835.
2. International Public 1,800 FCC, International, P.O.
Fixed. Box 358835, Pittsburgh,
PA 15251-5835.
Space Stations (Geostationary 111,925 FCC, Space Stations,
Orbit). P.O. Box 358835,
Pittsburgh, PA 15251-
5835.
Space Stations (Non- 112,425 FCC, Space Stations,
Geostationary Orbit). P.O. Box 358835,
Pittsburgh, PA 15251-
5835.
Earth Stations, Transmit/Receive 205 FCC, Space Stations,
& Transmit Only (per P.O. Box 358835,
authorization or registration). Pittsburgh, PA 15251-
5835.
Carriers, International Bearer 1.37 FCC, Space Stations,
Circuits (per active 64KB P.O. Box 358835,
circuit or equivalent. Pittsburgh, PA 15251-
5835.
------------------------------------------------------------------------
[FR Doc. 05-14267 Filed 7-20-05; 8:45 am]
BILLING CODE 6712-01-P