**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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**NOTICE OF PROPOSED RULEMAKING**

**Adopted: March 22, 2006 Released: March 27, 2006**

**Comment Date:** **April 14, 2006**

**Reply Comment Date: April 21, 2006**

By the Commission:

Table of Contents

Heading Paragraph \#

I. Introduction 1

II\. discussion 2

A. FY 2006 Regulatory Fee Assessment Methodology 4

1\. Development of FY 2006 Regulatory Fees 4

a\. Calculation of Revenue and Fee Requirements 4

b\. Additional Adjustments to Payment Units 5

2\. Commercial Mobile Radio Service (CMRS) Messaging Service 7

3\. Regulatory Fees for Direct Broadcast Service (DBS) Providers and
Cable Television Operators 8

4\. Broadband Radio Service (BRS)/Educational Broadband Service (EBS) 9

B. Administrative and Operational Issues 10

1\. Mandatory Use of Fee Filer 11

2\. Proposals for Notification and Collection of Regulatory Fees 12

a\. Interstate Telecommunications Service Providers (ITSPs) \-- Billed
14

b\. Satellite Space Station Licensees \-- Billed 15

c\. Additional Service Categories for Billing or Assessing 17

d\. Media Services Licensees \-- Assessed 18

e\. Commercial Mobile Radio Service (CMRS) Cellular and Mobile Services
-- Assessed 22

f\. Cable Television Subscribers \-- Assessed 28

3\. Streamlined Regulatory Fee Payment Process for CMRS Providers 33

4\. Future Streamlining of the Regulatory Fee Assessment and Collection
Process 34

III\. PROCEDURAL MATTERS 35

A. Payment of Regulatory Fees 35

1\. De Minimis Fee Payment Liability 35

2\. Standard Fee Calculations and Payment Dates 36

B. Enforcement 37

C. Initial Regulatory Flexibility Analysis 39

D. Initial Paperwork Reduction Act of 1995 Analysis 40

E. Ex Parte Rules 41

F. Filing Requirements 42

IV\. Ordering Clauses 47

ATTACHMENTS

Attachment A Initial Regulatory Flexibility Analysis

Attachment B of Payment Unit Estimates for FY2006

Attachment C Calculation of Revenue Requirements and Pro-Rata Fees

Attachment D Proposed FY 2006 Schedule of Regulatory Fees

Attachment E Factors, Measurements, and Calculations that Determine
Station Contours and Population Coverages

Attachment F FY 2005 Schedule of Regulatory Fees

# Introduction

1.  In this *Notice of Proposed Rulemaking (Notice)*, we propose to
    collect \$288,771,000 in regulatory fees for Fiscal Year (FY) 2006,
    pursuant to section 9 of the Communications Act of 1934, as amended
    (the Act). 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.[^1]

# discussion

2.  In this *Notice*, we seek comment on the development of FY 2006
    regulatory fees collected pursuant to section 9 of the Act. For FY
    2006, we tentatively propose to retain the established method,
    policies, and priorities. In addition to the assessment methodology,
    the Commission typically seeks comment on various administrative and
    operational issues affecting the collection of regulatory fees. For
    the FY 2006 regulatory fee cycle, we propose to retain the same
    administrative measures used for notification and assessment of
    regulatory fees in previous years, such as generating pre-completed
    regulatory fee assessment forms for certain regulatees. Consistent
    with past practice, we invite comments and suggestions on ways to
    improve the Commission's administrative processes for notifying
    entities of their regulatory fee obligations and collecting their
    payments.

3.  The Commission is obligated to collect \$288,771,000 in regulatory
    fees during FY 2006 to fund the Commission's operations. Consistent
    with our established practice, we plan to collect these regulatory
    fees in the August-September 2006 time frame in order to collect the
    required amount by the end of the fiscal year. In addition to the
    \$288,771,000 amount above, pursuant to section 3013 of the Deficit
    Reduction Act (Public Law 109-171), the Commission is required to
    assess and collect an additional \$10,000,000 in fiscal year 2006 as
    offsetting receipts.[^2] We seek comment on how the Commission
    should implement this provision. Specifically, we seek comment on
    whether the Commission should assess the additional \$10,000,000 on
    application fees, on regulatory fees, or from some other form of
    assessment.

## FY 2006 Regulatory Fee Assessment Methodology

### Development of FY 2006 Regulatory Fees

#### Calculation of Revenue and Fee Requirements 

4.  We propose to use, for the purpose of our FY 2006 regulatory fee
    assessment, the same section 9 regulatory fee assessment methodology
    adopted for FY 2005. Each fiscal year, the Commission proportionally
    allocates the total amount that must be collected via section 9
    regulatory fees. The results of our proposed FY 2006 regulatory fee
    assessment methodology (including a comparison to the prior year's
    results) are contained in Appendix C. For FY 2006, we propose to use
    the receipts collected through the FY 2005 regulatory fees as a base
    for calculating the amount the Commission must collect in FY 2006.
    To collect the \$288,771,000 million required by law, we propose to
    adjust the FY 2005 amount upward by 3.1 percent.[^3] Consistent with
    past practice, we propose to divide the FY 2006 amount by the number
    of payment units in each fee category to determine the unit fee.[^4]
    As in prior years, for cases involving small fees (*e.g.*, licenses
    that are renewed over a multiyear term), we propose to divide the
    resulting unit fee by the term of the license. We propose to round
    these unit fees consistent with the requirements of section 9(b)(2).

#### Additional Adjustments to Payment Units

5.  In calculating the FY 2006 regulatory fees proposed in Attachment D,
    we further adjusted the FY 2005 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.[^5] 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 state that our estimated FY 2006 payment units
    are based on FY 2005 actual payment units, the number may have been
    rounded or adjusted slightly to account for these variables.

6.  Additional factors are considered in determining regulatory fees for
    AM and FM radio stations. These factors are facility attributes and
    the population served by the radio station. The calculation of the
    population served is determined by coupling current U.S. Census
    Bureau data with technical and engineering data, as detailed in
    Attachment E. Consequently, the population served, as well as the
    class and type of service (AM or FM), determines the regulatory fee
    amount to be paid.[^6]

### Commercial Mobile Radio Service (CMRS) Messaging Service

7.  Since FY 2003, the Commission has maintained the CMRS Messaging
    regulatory fee at the rate that was established in FY 2002 (*i.e.*,
    \$0.08 per subscriber). We have maintained, rather than increased,
    this rate to account for the messaging industry's declining
    subscriber base.[^7] We note that between FY 1997 and FY 2005, for
    example, the CMRS Messaging subscriber base declined 75.3 percent
    from 40.8 million to 10.1 million, respectively.[^8] We seek comment
    on whether we should continue the same approach for regulatory fees
    applicable to the messaging industry. Specifically, should we
    maintain the industry's regulatory fee at \$0.08 per subscriber in
    FY 2006?

### Regulatory Fees for Direct Broadcast Service (DBS) Providers and Cable Television Operators

8.  We seek comment on the appropriate regulatory fee structure for both
    cable operators and DBS providers. Since the inception of the
    Commission regulatory fee program, we have assessed section 9
    regulatory fees on cable operators using a per-subscriber approach,
    which is consistent with the statute. By contrast, section 9
    regulatory fee assessments for DBS providers are based on a
    per-license approach. In the FY 2005 regulatory fee proceeding, the
    cable industry generally argued that the Commission should modify
    the regulatory fee assessment for DBS providers to a per-subscriber
    approach.[^9] In the FY 2005 proceeding, we concluded that no
    changes were warranted at that time and therefore retained the
    regulatory fee assessment methodology used for DBS providers since
    FY 1995. We seek comment on whether we should retain the existing
    regulatory fee assessment methodology for cable operators and DBS
    providers for the purposes of our FY 2006 regulatory fee assessment.
    Commenters proposing a fee change should identify the Commission
    rulemaking proceeding(s) or change(s) in law that they believe
    warrant a modification of our fee assessment methodology for DBS
    operators. To the extent parties argue the regulatory fee assessment
    process should be changed, they should identify the legal basis that
    would justify a change and explain how the benefits of the proposed
    change outweigh the costs of the established assessment methodology.

### Broadband Radio Service (BRS)/Educational Broadband Service (EBS) 

9.  We are exploring regulatory fee issues for BRS/EBS in a separately
    pending BRS/EBS proceeding.[^10] To the extent that any changes to
    our regulatory fee rules are adopted in this separate BRS/EBS
    proceeding, we propose not to implement such regulatory fee changes
    in the FY 2006 schedule of section 9 Regulatory Fees.

## Administrative and Operational Issues

10. We invite comment on the administrative and operational processes
    used to collect the annual section 9 regulatory fees. Although these
    issues do not affect the amount of regulatory fees parties are
    obligated to submit, the administrative and operational issues
    affect the process of submitting payment. We generally invite
    comment on ways to improve these processes.

### Mandatory Use of Fee Filer

11. We continue to encourage regulatees to use the Commission's online
    electronic Fee Filer application. Since this application was
    introduced in 2000, entities who will be submitting more than
    twenty-five (25) Form 159-Cs have been strongly encouraged to use
    Fee Filer when sending their regulatory fee payment. We seek comment
    on the impact to the public if the Commission was to institute the
    mandatory use of Fee Filer for large-volume section 9 regulatory fee
    payers. Mandatory use of Fee Filer by large-volume payers could ease
    both the Commission's administrative burden and those of high-volume
    payers, as well. We seek comment on whether any such mandatory usage
    requirement should be based on a pre-determined dollar amount, or on
    the number of transactions necessary to make payment. If mandatory
    usage were to be based on a dollar amount, what amount should be
    pre-determined? If based on the number of transactions conducted by
    a single entity, at what threshold should mandatory usage be
    established? Commenters should be aware that, for FY 2006, the
    Commission seeks solely to establish a record on this topic. In the
    event that, after receiving comments, the Commission deems this
    proposal to be an improvement, the use of Fee Filer would only
    become mandatory in FY 2007 or later.

### Proposals for Notification and Collection of Regulatory Fees

12. In this section, we seek comment on the administrative processes
    that the Commission uses to notify regulatees and collect regulatory
    fees. 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. Consistent
    with our established practice, we propose to provide public notices,
    fact sheets and all other relevant material on our website at
    <http://www.fcc.gov/fees/regfees.html> for the FY 2006 regulatory
    fee cycle. As a general practice, we will not send such material via
    surface mail. However, in the event that regulatees do not have
    access to the Internet, we will mail public notices and other
    relevant material upon request. Regulatees and the general public
    may request such information by contacting the FCC Financial
    Operations HelpDesk at (877) 480-3201, Option 4.

13. Although we will not send public notices and fact sheets to
    regulatees en masse, we will send specific regulatory fee bills or
    assessments via surface mail or e-mail to the select fee categories
    discussed below.[^11] We are pursuing our billing initiatives as
    part of our effort to modernize our financial practices. These
    initiatives also serve the purpose of providing licensees with
    notification of upcoming regulatory fees. Eventually, we intend to
    expand our billing initiatives to include all regulatory fee service
    categories.

#### Interstate Telecommunications Service Providers (ITSPs) \-- Billed

14. 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. 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
    1^st^ of each year. Throughout FY 2002 and FY 2003, we refined the
    FCC Form 159-W to simplify the regulatory fee payment process.[^12]
    Beginning in FY 2004, the pre-completed FCC Form 159-W was sent to
    carriers as a bill, rather than as an assessment of amount due.
    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 ITSP regulatory fees. For FY 2006, we propose to continue our
    Form 159-W billing initiative for ITSPs. We seek comment on this
    proposal and on ways that we could improve our billing initiative
    for ITSPs.

#### Satellite Space Station Licensees \-- Billed

15. Beginning in FY 2004, we mailed regulatory fee bills via surface
    mail to licensees in our two satellite space station service
    categories. Specifically, geostationary orbit space station (GSO)
    licensees receive bills requesting regulatory fee payment for
    satellites that (1) were licensed by the Commission and operational
    on or before October 1 of the respective fiscal year; and (2) were
    not co-located with and technically identical to another operational
    satellite on that date (*i.e.*, were not functioning as a spare
    satellite). Non-geostationary orbit space station (NGSO) licensees
    received bills requesting regulatory fee payment for systems that
    were licensed by the Commission and operational on or before October
    1 of the respective fiscal year.

16. For FY 2006, we propose to continue our billing initiative for our
    GSO and NGSO satellite space station categories. We emphasize that
    the bills that we propose to generate for our GSO and NGSO licensees
    will only be for the satellite or system aspects of their respective
    operations. GSO and NGSO licensees typically have regulatory fee
    obligations in other service categories (such as earth stations,
    broadcast facilities, etc.), and we expect satellite operators to
    meet their full fee payment obligations for their entire portfolio
    of FCC licenses. We seek comment on our proposal to generate
    regulatory fee bills for our two satellite space station service
    categories.

#### Additional Service Categories for Billing or Assessing

17. We are currently exploring the feasibility of expanding our section
    9 regulatory fee billing or assessing initiatives to three
    additional service categories in FY 2006. The service categories are
    Earth Stations, Cable Television Relay Service Stations (CARS) and
    the Local Multipoint Distribution Service (LMDS). We believe that
    billing or assessing can be accomplished for these categories
    because they are comprised of relatively few payment units (in
    comparison to many other categories in our Schedule of Regulatory
    Fees), and because the Commission maintains licensing databases for
    each of the three categories. Depending on progress made throughout
    this year, we may be in a position to generate bills or assessments
    for Earth Station, CARS and LMDS licensees in FY 2006. Any
    assessment initiative may occur solely online, whereby licensees
    would be instructed to visit a Commission-authorized web site to
    view their regulatory fee obligations. Licensees would then be able
    to update or correct any information concerning their license, or to
    certify their fee-exempt status, if appropriate. The web site would
    be available to licensees throughout this summer. We seek comment on
    our intent to expand our billing/assessment initiatives to these
    service categories.

#### Media Services Licensees \-- Assessed

18. Beginning in FY 2003, we sent fee assessment postcards via surface
    mail to media services entities on a per-facility basis. The
    postcards notified licensees of the date when fee payments were due;
    provided the assessed fee amount for the facility, as well as other
    data attributes that we used to determine the fee amount; and,
    beginning in FY 2004, provided licensees with a telephone number to
    call (Financial Operations Help Desk) in the event that they needed
    customer assistance. We propose to continue our assessment
    initiative for media services licensees this year in a similar
    fashion.[^13]

19. Consistent with procedures used last year, we propose to mail a
    single round of postcards to licensees and their other known points
    of contact listed in CDBS (Consolidated Database System) and in
    CORES (Commission Registration System), the Commission's two
    official databases for media services. By doing so, licensees and
    their other points of contact will all be furnished with the same
    information for each facility in question so that they can designate
    among themselves the payer of this year's fee. Mailing postcards to
    all interested parties at different addresses on file for each
    facility also encourages all parties to visit a
    Commission-authorized web site to update or correct any information
    concerning the facility, or to certify their fee-exempt status, if
    appropriate. The web site will be available to licensees throughout
    this summer.[^14] We seek comment on our proposal to generate fee
    assessment postcards for media services entities.

20. In the past, some media services licensees have mistakenly mailed
    their postcards back to the Commission stapled to payment checks. We
    emphasize that under our proposal, licensees must still submit a
    completed FCC Form 159 Remittance Advice with their fee payments,
    despite having received an assessment postcard. The postcards may
    [not]{.underline} be used as a substitute for a completed Form 159.
    We cannot guarantee that a licensee's regulatory fee payment will be
    posted accurately against the licensee's account if the licensee
    does not submit a completed Form 159 along with its fee payment.

21. We also emphasize that the most important data element that media
    services licensees need to include on their Form 159 is their
    [facility ID number]{.underline}. The facility ID number is a unique
    identifier that remains constant over the course of a facility's
    existence. Despite the fact that we prominently display a facility
    ID number on the facility's postcard, and our Form 159 filing
    instructions require payers to provide their facility ID number (and
    associated call sign) for the facility in question, we continue to
    receive many incomplete Form 159s that do not provide the facility
    ID number for the facility for which the fee is being paid.

#### Commercial Mobile Radio Service (CMRS) Cellular and Mobile Services -- Assessed

22. As in FY 2005,[^15] we propose to send an assessment letter to
    Commercial Mobile Radio Service (CMRS) providers using data that is
    based on the Numbering Resource Utilization Forecast (NRUF) form,
    which includes a list of the carrier's Operating Company Numbers
    (OCNs) upon which the assessment is based. Consistent with existing
    practice, the letters will not include OCNs with their respective
    assigned number counts, but rather, an aggregate total of assigned
    numbers for each carrier. We also propose to continue our procedure
    of giving entities an opportunity to amend their subscriber counts
    by sending two rounds of assessment letters -- an
    [initial]{.underline} assessment and a [final]{.underline}
    assessment letter.

23. If the number of subscribers on the initial assessment letter
    differs from the subscriber count the service provider provided on
    its NRUF form, the carrier can correct its subscriber count by
    returning the assessment letter or by contacting (a telephone number
    will be provided) the Commission and stating a reason for the
    change, such as the purchase or the sale of a subsidiary, including
    the date of the transaction, and any other information that will
    help to justify a reason for the change.

24. If we receive no response to our [initial]{.underline} assessment
    letter, we will assume that the initial assessment is correct and
    will expect the fee payment to be based on the number of subscribers
    listed on the initial assessment. We will review all responses to
    initial assessment letters and determine whether a change in the
    number of subscribers is warranted. We will then generate a
    [final]{.underline} assessment letter that informs carriers as to
    whether or not we accept the changed number of subscribers.

25. As in previous years, operators will certify their subscriber counts
    in Block 30 of the FCC Form 159 Remittance Advice when making their
    regulatory fee payments. As an additional enhancement this year to
    this assessment process, we propose to include porting information
    (*e.g.*, information on the number of "ports in" and "ports out") in
    our assessment letters so that licensees can account for any
    differences between the data submitted in their NRUF report and the
    Commission's assessment count.

26. Although an initial and a final assessment letter will be mailed to
    carriers that have filed an NRUF form, it is conceivable that some
    carriers will not be sent any letters of assessment because they did
    not file the NRUF form. We propose that these carriers compute their
    fee payment using the standard methodology[^16] that is currently in
    place for CMRS Wireless services (*e.g*., compute their subscriber
    counts as of December 31, 2005), and submit their payment
    accordingly on FCC Form 159. However, regardless of whether a
    carrier receives an assessment letter or computes the subscriber
    count itself, the Commission reserves the right, under the
    Communications Act, to audit the number of subscribers for which
    regulatory fees are paid. In the event that the Commission
    determines that the number of subscribers is inaccurate or that an
    insufficient reason is given for making a correction on the initial
    assessment letter, we note that the Commission reserves the right to
    assess the carrier for the difference between what was paid and what
    should have been paid.

27. In summary, we propose to (1) derive the subscriber count from NRUF
    data based on "assigned" number counts that have been adjusted for
    porting to net Type 0 ports ("in" and "out"), which should reflect a
    more accurate subscriber count; (2) provide carriers with the
    opportunity to revise their subscriber count in an initial
    assessment letter, and (3) require carriers to confirm their
    subscriber counts on an aggregate basis using data in the NRUF
    report.

#### Cable Television Subscribers \-- Assessed

28. We propose to conduct a regulatory fee assessment initiative for the
    cable television industry consistent with the process the Commission
    used in FY 2005. Specifically, we propose to generate fee assessment
    letters for the cable operators who are on file as having paid
    regulatory fees the previous fiscal year for their basic cable
    subscribers. Also, as an additional means of notifying cable
    television regulatees of their section 9 regulatory fee payment
    obligations for FY 2006, we propose to send an e-mail reminder to
    all of the operators' e-mail addresses that are populated in the
    Media Bureau's Cable Operations and Licensing System (COALS). We
    seek comment on our proposed assessment initiative and on our
    intention to use company e-mail addresses in COALS.

29. Our assessment letter to each operator will (1) announce the due
    date for payment of regulatory fees; (2) reflect the subscriber
    count for which the operator paid regulatory fees in FY 2005 -- and
    thus certified as having served as of December 31, 2004; and (3)
    request that the operator access a Commission-authorized web site to
    provide its aggregate subscriber count as of December 31, 2005. If
    the number of subscribers as of December 31, 2005 differs from that
    as reported for last year, operators will 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 will be able to contact the FCC Financial Operations
    Help Desk to provide their subscriber count as of December 31, 2005.
    We seek comment on this proposed assessment initiative.

30. Some cable operators may not have made regulatory fee payments in FY
    2005 and, as a result, will not receive an assessment letter for FY
    2006 regulatory fees. For example, a new company may have become
    operational after the first day of the fiscal year and therefore did
    not have a regulatory fee obligation in FY 2005; or an existing
    company did not make a payment because it filed a petition for
    waiver of regulatory fees for FY 2005 based on financial hardship.
    Regardless of the circumstance, we emphasize that not receiving a
    regulatory fee assessment letter in FY 2006 does not excuse an
    operator from its obligation to pay FY 2006 regulatory fees. All
    non-exempt cable operators, not only those that made payments in FY
    2005 and/or receive assessment letters for FY 2006 fees, are
    required to make payments.

31. We also propose to retain the payment procedures for cable
    television operators that we have had in place for the past two
    fiscal years. That is, we will continue to permit cable television
    operators to base their payment on their company's aggregate
    subscriber count as of December 31, 2005, rather than requiring them
    to sub-report subscriber counts on a per community unit identifier
    ("CUID") basis on the FCC Form 159 Remittance Advice. After
    providing their company's aggregate subscriber count in Block 25A of
    the FCC Form 159, operators will still be required to certify the
    accuracy of the subscriber count in Block 30.

32. Finally, regarding the cable television industry's annual payment
    obligation for section 9 regulatory fees, we seek comment on ways in
    which we could reduce the gap between the number of estimated
    payment units that we establish for each fiscal year and the number
    of actual payment units that we receive for that fiscal year. The
    Commission does not have a universal reporting requirement by which
    all cable television operators would report the number of basic
    cable television subscribers that they serve throughout all of their
    cable television systems.[^17] Our estimates of the number of basic
    television subscribers are based on reviews of prior year regulatory
    fee payments made by cable operators and subscriber data published
    in publicly available data sources. As a result, the aggregate
    number of actual payment units made by the cable television industry
    may differ from the estimated number of units. We seek comments
    and/or proposals that address this situation.

### Streamlined Regulatory Fee Payment Process for CMRS Providers

33. We propose to allow those CMRS Cellular, Mobile, and Messaging
    service providers that pay using an FCC Form 159 or the automated
    Fee Filer system to pay their subscriber totals at the aggregate
    level without having to identify and associate their subscriber
    counts with calls signs. We are requiring CMRS Cellular/Mobile
    providers to use the aggregate subscriber totals from their
    Numbering Resource Utilization Forecast report (NRUF),[^18] netted
    for porting; therefore, it is consistent for CMRS providers
    (Cellular, Mobile, and Messaging) to pay their subscriber totals at
    the aggregate level without having to associate these subscriber
    counts with their respective call signs. We believe that eliminating
    the requirement to identify subscribers at the call sign level will
    improve the Commission's efficiency in processing regulatory fee
    payments, as well as reduce the administrative burden on licensees
    during the payment process. We seek comment on whether eliminating
    the requirement for CMRS providers to identify their call signs when
    making their regulatory fee payment will in any manner disrupt the
    processes by which providers determine and calculate their
    subscriber totals.

### Future Streamlining of the Regulatory Fee Assessment and Collection Process

34. We continue to welcome comments concerning our commitment to
    reviewing, streamlining and modernizing our statutorily required fee
    assessment and collection procedures. Our areas of particular
    interest include: (1) the process for notifying licensees about
    changes in the annual Schedule of Regulatory Fees and how it can be
    improved; (2) the most effective way to disseminate regulatory fee
    assessments and bills, *e.g*., through surface mail, e-mail, online
    website, or some other mechanism; (3) the fee payment process,
    including how the agency's online regulatory fee filing system (Fee
    Filer) can be enhanced; (4) the timing of fee payments, including
    whether we should alter the existing section 9 regulatory fee
    payment "window" in any way; and (5) the timing of fee assessments
    and bills.

# PROCEDURAL MATTERS

## Payment of Regulatory Fees

### De Minimis Fee Payment Liability

35. Consistent with past practice, regulatees whose [total]{.underline}
    FY 2006 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 2006 regulatory fees.

### Standard Fee Calculations and Payment Dates

36. The Commission will, for the convenience of payers, accept fee
    payments made in advance of the normal formal window for the payment
    of regulatory fees. Licensees are reminded that, under our current
    rules, the responsibility for payment of fees by service category is
    as follows:

> a\) [Media Services]{.underline}: Regulatory fees must be paid for
> AM/FM radio station and VHF/UHF television station initial
> construction permits that were issued on or before October 1, 2005,
> and for all broadcast facility licenses granted on or before October
> 1, 2005. However, in instances where a permit or license is
> transferred or assigned after October 1, 2005, responsibility for
> payment rests with the holder of the permit or license as of the Fee
> Due Date.
>
> b\) [Wireline (Common Carrier) Services]{.underline}: Fees must be
> paid for any authorization that was granted on or before October 1,
> 2005. However, in instances where a permit or license is transferred
> or assigned after October 1, 2005, responsibility for payment rests
> with the holder of the permit or license as of the Fee Due Date.
>
> c\) [Wireless Services]{.underline}: 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 that was issued on or before October 1, 2005. The number
> of subscribers, units or circuits on December 31, 2005 will be used as
> the basis from which to calculate the fee payment.
>
> The first eleven fee categories in our Attachment D, Schedule of
> Regulatory Fees, pay what the Commission refers to as "small
> multi-year wireless regulatory fees." Entities pay these regulatory
> fees in advance for the entire amount of the 5-year or 10-year term of
> initial license, and only pay fees again at the time of license
> renewal. As a result, the Commission does not collect regulatory fees
> for these eleven fee categories on an annual basis.
>
> d\) [Multichannel Video Programming Distributor Services (cable
> television operators and CARS licensees)]{.underline}: The number of
> basic cable television subscribers on December 31, 2005 will be used
> as the basis from which to calculate the fee payment.[^19] For CARS
> licensees, fees must be paid for any license that was granted on or
> before October 1, 2005. In instances where a CARS license is
> transferred or assigned after October 1, 2005, responsibility for
> payment rests with the holder of the license as of the Fee Due Date.
>
> e\) [International Services]{.underline}: For earth stations and
> geostationary orbit space stations, regulatory fees must be paid for
> stations that were licensed and operational on or before October 1,
> 2005. In instances where a license is transferred or assigned after
> October 1, 2005, responsibility for payment rests with the holder of
> the license as of the Fee Due Date. For non-geostationary orbit
> satellite systems, fees must be paid for systems that were licensed
> and operational on or before October 1, 2005. In instances where a
> license is transferred or assigned after October 1, 2005,
> responsibility for payment rests with the holder of the license as of
> the Fee Due Date. For international bearer circuits, payment is
> calculated on a per-active circuit basis as of December 31, 2005.[^20]

## Enforcement

37. 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, A LATE PAYMENT
    PENALTY OF 25 PERCENT OF THE AMOUNT OF THE REQUIRED REGULATORY FEE
    WILL BE ASSESSED ON THE FIRST DAY FOLLOWING THE DEADLINE DATE FOR
    FILING OF THESE FEES. REGULATORY FEE PAYMENT MUST BE RECEIVED AND
    STAMPED AT THE LOCKBOX BANK BY THE LAST DAY OF THE REGULATORY FEE
    FILING WINDOW, AND NOT MERELY POSTMARKED BY THE LAST DAY OF THE
    WINDOW. Failure to pay regulatory fees and/or any late penalty will
    subject regulatees to sanctions, including the Commission's Red
    Light Rule (*see* 47 C.F.R. § 1.1910) and 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 §1.1940(d) of the Commission's
    Rules. These administrative processing charges 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 not timely paid, the 25 percent late charge penalty
    will be assessed on the portion that is not paid in a timely manner.

38. Furthermore, our regulatory fee rules 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 entity responsible for paying the
    delinquent fee(s).

## Initial Regulatory Flexibility Analysis

39. With respect to this *Notice*, an Initial Regulatory Flexibility
    Analysis ("IRFA"), is contained in Attachment A of the
    Appendix.[^21] Comments must be identified as responses to the IRFA
    and must be filed by the deadlines for comments on the *Notice*
    specified *infra*. The Commission will send a copy of the *Notice*,
    including the IRFA, to the Chief Counsel for Advocacy of the Small
    Business Administration.

## Initial Paperwork Reduction Act of 1995 Analysis

40. This document does not contain proposed or modified information
    collection(s) subject to the Paperwork Reduction Act of 1995 (PRA),
    Public Law 104-13. In addition, therefore, it does not contain any
    new or modified "information collection burden for small business
    concerns with fewer than 25 employees," pursuant to the Small
    Business Paperwork Relief Act of 2002, Public Law 107-198, *see* 44
    U.S.C. 3506(c)(4). Completion of the 159 family of forms required by
    the Commission's regulatory fee payment process is already approved
    by the Office of Management and Budget under information collections
    3060-0589 and 3060-0949.

## Ex Parte Rules

41. *Permit-But-Disclose.* This proceeding will be treated as a
    "permit-but-disclose" proceeding subject to the
    "permit-but-disclose" requirements under section 1.1206(b) of the
    Commission's rules.[^22] *Ex parte* presentations are permissible if
    disclosed in accordance with Commission rules, except during the
    Sunshine Agenda period when presentations, *ex parte* or otherwise,
    are generally prohibited. Persons making oral *ex parte*
    presentations are reminded that a memorandum summarizing a
    presentation must contain a summary of the substance of the
    presentation and not merely a listing of the subjects discussed.
    More than a one- or two-sentence description of the views and
    arguments presented is generally required.[^23] Additional rules
    pertaining to oral and written presentations are set forth in
    section 1.1206(b).

## Filing Requirements

42. *Comments and Replies*. Pursuant to Sections 1.415 and 1.419 of the
    Commission's rules,[^24] interested parties may file comments on or
    before the dates indicated on the first page of this document.
    Comments may be filed using: (1) the Commission's Electronic Comment
    Filing System ("ECFS"), (2) the Federal Government's eRulemaking
    Portal, or (3) by filing paper copies.[^25]

43. *Electronic Filers:* Comments may be filed electronically using the
    Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs or the
    Federal eRulemaking Portal: http://www.regulations.gov. Filers
    should follow the instructions provided on the website for
    submitting comments. For ECFS filers, if multiple docket or
    rulemaking numbers appear in the caption of this proceeding, filers
    must transmit one electronic copy of the comments for each docket or
    rulemaking number referenced in the caption. In completing the
    transmittal screen, filers should include their full name, U.S.
    Postal Service mailing address, and the applicable docket or
    rulemaking number. Parties may also submit an electronic comment by
    Internet e-mail. To get filing instructions, filers should send an
    e-mail to ecfs@fcc.gov, and include the following words in the body
    of the message, "get form." A sample form and directions will be
    sent in response.

44. *Paper Filers:* Parties who choose to file by paper must file an
    original and four copies of each filing. If more than one docket or
    rulemaking number appears in the caption of this proceeding, filers
    must submit two additional copies for each additional docket or
    rulemaking number. Filings can be sent by hand or messenger
    delivery, by commercial overnight courier, or by first-class or
    overnight U.S. Postal Service mail (although we continue to
    experience delays in receiving U.S. Postal Service mail). All
    filings must be addressed to the Commission's Secretary, Office of
    the Secretary, Federal Communications Commission.

-   The Commission's contractor will receive hand-delivered or
    messenger-delivered paper filings for the Commission's Secretary at
    236 Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The
    filing hours at this location are 8:00 a.m. to 7:00 p.m. All hand
    deliveries must be held together with rubber bands or fasteners. Any
    envelopes must be disposed of before entering the building.

-   Commercial overnight mail (other than U.S. Postal Service Express
    Mail and Priority Mail) must be sent to 9300 East Hampton Drive,
    Capitol Heights, MD 20743.

-   U.S. Postal Service first-class, Express, and Priority mail should
    be addressed to 445 12th Street, SW, Washington DC 20554.

45. *Availability of Documents*. Comments, reply comments, and *ex
    parte* submissions will be available for public inspection during
    regular business hours in the FCC Reference Center, Federal
    Communications Commission, 445 12^th^ Street, S.W., CY-A257,
    Washington, D.C., 20554. These documents will also be available via
    ECFS. Documents will be available electronically in ASCII, Word 97,
    and/or Adobe Acrobat.

46. *Accessibility Information.* To request information in accessible
    formats (computer diskettes, large print, audio recording, and
    Braille), send an e-mail to fcc504@fcc.gov or call the FCC's
    Consumer and Governmental Affairs Bureau at (202) 418-0530
    (voice), (202) 418-0432 (TTY). This document can also be downloaded
    in Word and Portable Document Format (PDF) at: http://www.fcc.gov.

# Ordering Clauses

47. Accordingly, IT IS ORDERED that, 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), this Notice of Proposed
    Rulemaking is hereby ADOPTED.

48. IT IS FURTHER ORDERED that the Commission\'s Consumer Information
    Bureau, Reference Information Center, SHALL SEND a copy of this
    Notice of Proposed Rulemaking, including the Initial Regulatory
    Flexibility Analysis, to the Chief Counsel for Advocacy of the Small
    Business Administration.

> FEDERAL COMMUNICATIONS COMMISSION

Marlene H. Dortch

Secretary

**ATTACHMENT A**

**INITIAL REGULATORY FLEXIBILITY ANALYSIS**

49. As required by the Regulatory Flexibility Act (RFA),[^26] the
    Commission has prepared this Initial Regulatory Flexibility Analysis
    (IRFA) of the possible significant economic impact on small entities
    by the policies and rules in the present *NPRM*. Written public
    comments are requested on this IRFA. Comments must be identified as
    responses to the IRFA and must be filed on or before the dates
    indicated on the first page of this *Notice*. The Commission will
    send a copy of the *Notice*, including the IRFA, to the Chief
    Counsel for Advocacy of the Small Business Administration.[^27] In
    addition, the *Notice* and IRFA (or summaries thereof) will be
    published in the *Federal Register*.[^28]

**I. Need for, and Objectives of, the Proposed Rules:**

50. This rulemaking proceeding is initiated to obtain comments
    concerning the Commission's proposed amendment of its Schedule of
    Regulatory Fees in the amount of \$288,771,000, the amount that
    Congress has required the Commission to recover. The Commission
    seeks to collect the necessary amount through its proposed Schedule
    of Regulatory Fees in the most efficient manner possible and without
    undue public burden.

**II. Legal Basis:**

51. This action, including publication of proposed rules, is authorized
    under sections (4)(i) and (j), 9, and 303(r) of the Communications
    Act of 1934, as amended.[^29]

**III. Description and Estimate of the Number of Small Entities to which
the Proposed Rules Will Apply:**

52. 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.[^30] The
    RFA generally defines the term "small entity" as having the same
    meaning as the terms "small business," "small organization," and
    "small governmental jurisdiction."[^31] In addition, the term "small
    business" has the same meaning as the term "small business concern"
    under the Small Business Act.[^32] 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.[^33]

53. **Small Businesses**. Nationwide, there are a total of 22.4 million
    small businesses, according to SBA data.[^34]

54. **Small Organizations**. Nationwide, there are approximately 1.6
    million small organizations.[^35]

55. **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."[^36] As of 1997, there were
    approximately 87,453 governmental jurisdictions in the United
    States.[^37] 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.

56. 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."[^38] 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.[^39] 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.

57. **Incumbent Local Exchange Carriers (ILECs)**. 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.[^40] According
    to Commission data,[^41] 1,303 carriers have reported that they are
    engaged in the provision of incumbent local exchange services. Of
    these 1,303 carriers, an estimated 1,020 have 1,500 or fewer
    employees and 283 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 our proposed
    action.

58. **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.[^42] According to Commission data,[^43] 820 carriers have
    reported that they are engaged in the provision of either
    competitive access provider services or competitive local exchange
    carrier services. Of these 820 carriers, an estimated 726 have 1,500
    or fewer employees and 94 have more than 1,500 employees. In
    addition, 12 carriers have reported that they are "Shared-Tenant
    Service Providers," and all 12 are estimated to have 1.500 or fewer
    employees. In addition, 39 carriers have reported that they are
    "Other Local Service Providers." Of the 39, an estimated 38 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 our proposed
    action.

59. **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.[^44] According to Commission data,[^45] 143
    carriers have reported that they are engaged in the provision of
    local resale services. Of these, an estimated 141 have 1,500 or
    fewer employees and two have more than 1,500 employees.
    Consequently, the Commission estimates that the majority of local
    resellers are small entities that may be affected by our proposed
    action.

60. **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.[^46] According to Commission data,[^47] 770
    carriers have reported that they are engaged in the provision of
    toll resale services. Of these, an estimated 747 have 1,500 or fewer
    employees and 23 have more than 1,500 employees. Consequently, the
    Commission estimates that the majority of toll resellers are small
    entities that may be affected by our proposed action.

61. **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.[^48] According to Commission data,[^49] 654
    carriers have reported that they are engaged in the provision of
    payphone services. Of these, an estimated 652 have 1,500 or fewer
    employees and two 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 our proposed action.

62. **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.[^50] According to Commission
    data,[^51] 316 carriers have reported that they are engaged in the
    provision of interexchange service. Of these, an estimated 292 have
    1,500 or fewer employees and 24 have more than 1,500 employees.
    Consequently, the Commission estimates that the majority of IXCs are
    small entities that may be affected by our proposed action.

63. **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.[^52] According to Commission data,[^53] 23
    carriers have reported that they are engaged in the provision of
    operator services. Of these, an estimated 20 have 1,500 or fewer
    employees and three have more than 1,500 employees. Consequently,
    the Commission estimates that the majority of OSPs are small
    entities that may be affected by our proposed action.

64. **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.[^54] According to Commission data,[^55] 89 carriers
    have reported that they are engaged in the provision of prepaid
    calling cards. Of these, an estimated 88 have 1,500 or fewer
    employees and one has more than 1,500 employees. Consequently, the
    Commission estimates that the majority of prepaid calling card
    providers are small entities that may be affected by our proposed
    action.

65. **800 and 800-Like Service Subscribers**.[^56] 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.[^57]
    The most reliable source of information regarding the number of
    these service subscribers appears to be data the Commission receives
    from Database Service Management on the 800, 866, 877, and 888
    numbers in use.[^58] According to our data, at the end of December
    2004, the number of 800 numbers assigned was 7,540,453; the number
    of 888 numbers assigned was 5,947,789; the number of 877 numbers
    assigned was 4,805,568; and the number of 866 numbers assigned was
    5,011,291. 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 7,540,453 or fewer small
    entity 800 subscribers; 5,947,789 or fewer small entity 888
    subscribers; 4,805,568 or fewer small entity 877 subscribers, and
    5,011,291 or fewer entity 866 subscribers.

66. **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.[^59] 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.[^60] 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.

67. 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."[^61] According to Census Bureau data for
    1997, there were 439 firms in this category that operated for the
    entire year.[^62] 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.

68. **Wireless Service Providers**. The SBA has developed a small
    business size standard for wireless firms within the two broad
    economic census categories of "Paging"[^63] and "Cellular and Other
    Wireless Telecommunications." [^64] 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.[^65] 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.[^66] 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, U.S. Census Bureau data for 1997 show
    that there were 977 firms in this category, total, that operated for
    the entire year.[^67] 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.[^68] Thus, under this second category and
    size standard, the great majority of firms can, again, be considered
    small.

69. **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."[^69] Under the SBA
    size standard, such a business is small if it has average annual
    receipts of \$21 million or less.[^70] According to Census Bureau
    data for 1997, there were 2,751 firms in this category that operated
    for the entire year.[^71] 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.[^72] Thus, under this size
    standard, the great majority of firms can be considered small
    entities.

70. **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."[^73]
    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, U.S. Census Bureau data for 1997
    show that there were 977 firms in this category, total, that
    operated for the entire year.[^74] 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.[^75] 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, 604 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.[^76] We have estimated that 427 of these are
    small, under the SBA small business size standard.[^77]

71. **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."[^78]
    Under this SBA category, a wireless business is small if it has
    1,500 or fewer employees. For the census category of Paging, U.S.
    Census Bureau data for 1997 show that there were 1,320 firms in this
    category, total, that operated for the entire year.[^79] 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.[^80]
    Thus, under this category and associated small business size
    standard, the great majority of firms can be considered small.

72. 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.[^81] 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.[^82] The SBA has approved this definition.[^83] 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.[^84] Fifty-seven companies claiming small business
    status won 440 licenses.[^85] 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.[^86] 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. [^87] Currently, there are approximately 74,000
    Common Carrier Paging licenses. According to the most recent *Trends
    in Telephone Service*, 408 private and common carriers reported that
    they were engaged in the provision of either paging or "other
    mobile" services.[^88] Of these, we estimate that 589 are small,
    under the SBA-approved small business size standard.[^89] We
    estimate that the majority of common carrier paging providers would
    qualify as small entities under the SBA definition.

73. **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.[^90] The SBA has approved these definitions.[^91]
    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.

74. **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.[^92] Under the SBA small business size standard, a
    business is small if it has 1,500 or fewer employees.[^93] According
    to the most recent *Trends in Telephone Service* data, 719 carriers
    reported that they were engaged in wireless telephony.[^94] We have
    estimated that 427 of these are small under the SBA small business
    size standard.

75. **Broadband Personal Communications Service**. The 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.[^95] 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.[^96] These small business size standards, in the context of
    broadband PCS auctions, have been approved by the SBA.[^97] 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.[^98] On March 23, 1999, the Commission reauctioned 155 C, D, E,
    and F Block licenses; there were 113 small business winning
    bidders.[^99]

76. 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.[^100] 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.

77. **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.[^101] Through these auctions, the Commission
    awarded a total of 41 licenses, 11 of which were obtained by four
    small businesses.[^102] 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.[^103] 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.[^104] 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.[^105] The SBA has approved these small business size
    standards.[^106] 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.[^107] Three of these claimed
    status as a small or very small entity and won 311 licenses.

78. **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.[^108] 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.[^109] 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.[^110] 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.[^111] The SBA has approved these small size
    standards.[^112] 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. [^113] 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.[^114] Seventeen winning bidders claimed small or very
    small business status and won 60 licenses, and nine winning bidders
    claimed entrepreneur status and won 154 licenses.[^115]

79. **Upper 700 MHz Band Licenses**. The Commission released a Report
    and Order, authorizing service in the upper 700 MHz band.[^116] This
    auction, previously scheduled for January 13, 2003, has been
    postponed.[^117]

80. **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.[^118] 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.[^119] 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.[^120] SBA approval of these definitions is not
    required.[^121] An auction of 52 Major Economic Area (MEA) licenses
    commenced on September 6, 2000, and closed on September 21,
    2000.[^122] 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.[^123]

81. **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. [^124] 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.[^125] The
    SBA has approved these small business size standards for the 900 MHz
    Service.[^126] 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.[^127] 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.[^128]

82. 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.[^129] 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.[^130] 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.

83. 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.

84. **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.[^131] 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.[^132] 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 under the SBA's small business
    standard.

85. **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.[^133] 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.[^134] 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.[^135] The SBA has approved these small size
    standards.[^136] Auctions of Phase II licenses commenced on
    September 15, 1998, and closed on October 22, 1998.[^137] 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.[^138] 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.[^139] 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.[^140]

86. **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.[^141] 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.[^142]

87. The Commission's 1994 Annual Report on PLMRs[^143] 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.

88. **Fixed Microwave Services**. Fixed microwave services include
    common carrier,[^144] private operational-fixed,[^145] and broadcast
    auxiliary radio services.[^146] 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.[^147] 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.

89. **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.[^148] 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.[^149] The SBA has approved these small business size
    standards.[^150] The auction of the 2,173 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 proposed herein.

90. **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.[^151] 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.[^152] 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.[^153] The
    SBA has approved these small business size standards in the context
    of LMDS auctions.[^154] 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.

91. **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).[^155] 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.[^156] 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.[^157] 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.[^158] The SBA has approved of these
    definitions.[^159] 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 the 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.

92. **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.[^160] 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.[^161] These definitions have been approved by
    the SBA.[^162] 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.

93. **Rural Radiotelephone Service**. The Commission has not adopted a
    size standard for small businesses specific to the Rural
    Radiotelephone Service.[^163] A significant subset of the Rural
    Radiotelephone Service is the Basic Exchange Telephone Radio System
    (BETRS).[^164] 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.[^165] 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.

94. **Air-Ground Radiotelephone Service**. The Commission has not
    adopted a small business size standard specific to the Air-Ground
    Radiotelephone Service.[^166] We will use SBA's small business size
    standard applicable to "Cellular and Other Wireless
    Telecommunications," i.e., an entity employing no more than 1,500
    persons.[^167] 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.

95. **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.[^168]
    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.[^169] 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.

96. **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.[^170] 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.[^171] Under that SBA
    small business size standard, a business is small if it has 1,500 or
    fewer employees.[^172]

97. **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.[^173] "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.[^174] The SBA has approved of these
    definitions.[^175] 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.[^176] Seven winning bidders claimed status as small or
    very small businesses and won 611 licenses.

98. 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.[^177] 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.

99. **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.[^178] According to U.S. Census Bureau data for
    1997, there were 977 firms in this category, total, that operated
    for the entire year.[^179] 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.[^180] 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[^181] and TRW, Inc. It is our understanding that
    Teligent and its related companies have less than 1,500 employees,
    though this may 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.

100. 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.[^182] "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.[^183] The SBA has approved these
     definitions.[^184] The Commission will not know how many licensees
     will be small or very small businesses until the auction, if
     required, is held.

101. **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).[^185] 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.[^186] The SBA has approved of this standard.[^187] The MDS
     auction resulted in 67 successful bidders obtaining licensing
     opportunities for 493 Basic Trading Areas (BTAs).[^188] 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.[^189]

102. In addition, the SBA has developed a small business size standard
     for Cable and Other Program Distribution,[^190] which includes all
     such companies generating \$12.5 million or less in annual
     receipts.[^191] 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.[^192] 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.[^193] 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.

103. 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.[^194]
     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.

104. **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.[^195] Business
     concerns included in this industry are those "primarily engaged in
     broadcasting images together with sound."[^196] 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[^197] 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 2,117 low power
     television stations (LPTV).[^198] Given the nature of this service,
     we will presume that all LPTV licensees qualify as small entities
     under the SBA definition.

105. 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 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.

106. **Radio Broadcasting**. The SBA defines a radio broadcast entity
     that has \$6 million or less in annual receipts as a small
     business.[^199] Business concerns included in this industry are
     those "primarily engaged in broadcasting aural programs by radio to
     the public.[^200] 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[^201] are
     included.[^202] Our estimate, therefore likely overstates the
     number of small businesses that might be affected by our action.

107. **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.[^203]

108. The Commission estimates that there are approximately 3,868 FM
     translators and boosters.[^204] 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. [^205]

109. **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.[^206] 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.[^207]
     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
     proposed herein.

110. **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.[^208] The most recent
     estimates indicate that there were 1,439 cable operators who
     qualified as small cable system operators at the end of 1995.[^209]
     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 proposed herein.

111. **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."[^210]
     The Commission has determined that there are 63,000,000 subscribers
     in the United States.[^211] Therefore, an operator serving fewer
     than 630,000 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.[^212] Based on available data, the Commission estimates
     that the number of cable operators serving 630,000 subscribers or
     fewer, totals 1,450.[^213] The Commission neither requests nor
     collects information on whether cable system operators are
     affiliated with entities whose gross annual revenues exceed \$250
     million,[^214] 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.

112. **Open Video Services**. Open Video Service (OVS) systems provide
     subscription services.[^215] The SBA has created a small business
     size standard for Cable and Other Program Distribution.[^216] 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.[^217] Affiliates of Residential Communications
     Network, Inc. (RCN) received approval to operate OVS systems in New
     York City, Boston, Washington, D.C., 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 proposed herein.

113. **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.[^218] 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.[^219] 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.[^220] Thus, under this
     standard, we estimate that the majority of providers in this
     service category are small businesses that may be affected by the
     proposed rules and policies.

114. **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.[^221] Accordingly,
     there are no licensees in this service.

115. **Amateur Radio Service**. These licensees are believed to be
     individuals, and therefore are not small entities.

116. **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.[^222]
     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.[^223] 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.

117. **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.[^224] 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).[^225] 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 the rules being
     proposed. 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.[^226] 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 the
     proposed rules.

118. **Public Safety Radio Services**. Public Safety radio services
     include police, fire, local government, forestry conservation,
     highway maintenance, and emergency medical services.[^227] There
     are a total of approximately 127,540 licensees in these services.
     Governmental entities[^228] 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.[^229]

     **IV. Description of Projected Reporting, Recordkeeping and Other
     Compliance Requirements:**

119. 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.[^230] 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]{.underline}., 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.

120. 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.

121. 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.[^231] If payment is not received, new
     or pending applications may be dismissed, and existing
     authorizations may be subject to rescission.[^232] 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.[^233]
     Nonpayment of regulatory fees is a debt owed the United States
     pursuant to 31 U.S.C. 3711 [et seq]{.underline}., and the [Debt
     Collection Improvement Act of 1996]{.underline}, 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.[^234]

122. 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.[^235] 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.

     **V. Steps Taken to Minimize Significant Economic Impact on Small
     Entities, and Significant Alternatives Considered:**

123. 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 IRFA,
     [supra]{.underline}, 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.

124. [The Omnibus Appropriations Act for FY 2006,]{.underline} Public
     Law 109-108, 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) 2006.[^236] As noted, we seek comment on the proposed
     methodology for implementing these statutory requirements and any
     other potential impact of these proposals on small entities.

125. 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 on smaller entities. The methodology we are
     proposing in this [Notice of Proposed Rulemaking]{.underline}
     minimizes this impact by limiting the amount of increase and
     shifting costs to other services which, for the most part, are
     larger entities.

126. Several categories of licensees and regulatees are exempt from
     payment of regulatory fees. *See, e.g.,* footnote 230, *supra.*

     **VI. Federal Rules that May Duplicate, Overlap, or Conflict with
     the Proposed Rules:**

127. None.

**ATTACHMENT B**

**SOURCES OF PAYMENT UNIT ESTIMATES FOR FY 2006**

In order to calculate individual service fees for FY 2006, we adjusted
FY 2005 payment units for each service to more accurately reflect
expected FY 2006 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), 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 2006 estimates with actual FY
2005 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 2006 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 2006 payment units are based on FY 2005
actual payment units, it does not necessarily mean that our FY 2006
projection is [exactly]{.underline} the same number as FY 2005. It means
that we have either rounded the FY 2006 number or adjusted it slightly
to account for these variables.

  ------------------------ ----------------------------------------------
  **FEE CATEGORY**         **SOURCES OF PAYMENT UNIT ESTIMATES**

  Land Mobile (All),       Based on Wireless Telecommunications Bureau
  Microwave, 218-219 MHz,  (WTB) projections of new applications and
  Marine (Ship & Coast),   renewals taking into consideration existing
  Aviation (Aircraft &     Commission licensee data bases. Aviation
  Ground), GMRS, Amateur   (Aircraft) and Marine (Ship) estimates have
  Vanity Call Signs,       been adjusted to take into consideration the
  Domestic Public Fixed    licensing of portions of these services on a
                           voluntary basis.

  CMRS 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 Bureau
                           estimates, adjusted for exemptions, and actual
                           FY 2005 payment units.

  UHF/VHF Television       Based on Media Bureau estimates as well as
  Stations                 actual FY 2005 payment units.

  AM/FM/TV Construction    Based on Media Bureau estimates as well as
  Permits                  actual FY 2005 payment units.

  LPTV, Translators and    Based on actual FY 2005 payment units.
  Boosters, Class A        
  Television               

  Broadcast Auxiliaries    Based on actual FY 2005 payment units.

  BRS (formerly MDS/MMDS)  Based on Wireless Telecommunications Bureau
                           estimates and actual FY 2005 payment units.

  Cable Television Relay   Based on actual FY 2005 payment units.
  Service (CARS) Stations  

  Cable Television System  Based on Media Bureau industry estimates of
  Subscribers              subscriber counts, and actual FY 2005 payment
                           units.

  Interstate               Based on actual FY 2005 interstate revenues
  Telecommunication        reported on Telecommunications Reporting
  Service Providers        Worksheet, adjusted for FY 2006 revenue
                           growth/decline for industry, and projections
                           by the Wireline Competition Bureau.

  Earth Stations           Based on actual FY 2005 payment estimates and
                           projected FY 2006 units.

  Space Stations (GSOs &   Based on International Bureau licensee data
  NGSOs)                   base estimates.

  International Bearer     Based on FY 2005 actual units.
  Circuits                 

  International HF         Based on International Bureau estimates.
  Broadcast Stations,      
  International Public     
  Fixed Radio Service      
  ------------------------ ----------------------------------------------

######   {#section .unnumbered}

**ATTACHMENT C**

**CALCULATION OF FY 2006 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.

+----------+---------+----+--------+--------+--------+------+--------+
| **Fee    | **FY    | *  | **FY   | **Pro  | **Co   | *    | **Expe |
| Ca       | 2006    | *Y | 2005   | -Rated | mputed | *Rou | cted** |
| tegory** | Payment | ea | R      | FY     | New FY | nded |        |
|          | Units** | rs | evenue | 2006   | 2006   | N    | **FY   |
|          |         | ** | Esti   | R      | Regu   | ew** | 2006** |
|          |         |    | mate** | evenue | latory |      |        |
|          |         |    |        | Requ   | Fee**  | **FY | **Rev  |
|          |         |    |        | ire-me |        | 20   | enue** |
|          |         |    |        | nt\*** |        | 06** |        |
|          |         |    |        |        |        |      |        |
|          |         |    |        |        |        | *    |        |
|          |         |    |        |        |        | *Reg |        |
|          |         |    |        |        |        | ula- |        |
|          |         |    |        |        |        | tory |        |
|          |         |    |        |        |        | F    |        |
|          |         |    |        |        |        | ee** |        |
+==========+=========+====+========+========+========+======+========+
| PLMRS    | 2,200   | 10 | 3      | 3      | 17     | 15   | 3      |
| (E       |         |    | 70,000 | 80,547 |        |      | 30,000 |
| xclusive |         |    |        |        |        |      |        |
| Use)     |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| PLMRS    | 25,000  | 10 | 2,3    | 2,3    | 9      | 10   | 2,5    |
| (Shared  |         |    | 00,000 | 65,564 |        |      | 00,000 |
| use)     |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| M        | 2,000   | 10 | 1,5    | 1,6    | 80     | 80   | 1,6    |
| icrowave |         |    | 60,000 | 04,469 |        |      | 00,000 |
+----------+---------+----+--------+--------+--------+------+--------+
| 218-219  | 3       | 10 | 1,500  | 1,543  | 51     | 50   | 1,500  |
| MHz      |         |    |        |        |        |      |        |
| (        |         |    |        |        |        |      |        |
| Formerly |         |    |        |        |        |      |        |
| IVDS)    |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| Marine   | 8,000   | 10 | 7      | 7      | 9      | 10   | 8      |
| (Ship)   |         |    | 00,000 | 19,954 |        |      | 00,000 |
+----------+---------+----+--------+--------+--------+------+--------+
| GMRS     | 17,000  | 5  | 5      | 5      | 6      | 5    | 4      |
|          |         |    | 25,000 | 39,966 |        |      | 25,000 |
+----------+---------+----+--------+--------+--------+------+--------+
| Aviation | 6,000   | 10 | 3      | 3      | 6      | 5    | 3      |
| (A       |         |    | 70,000 | 80,547 |        |      | 00,000 |
| ircraft) |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| Marine   | 600     | 10 | 1      | 1      | 17     | 15   | 90,000 |
| (Coast)  |         |    | 00,000 | 02,851 |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| Aviation | 1,500   | 10 | 1      | 1      | 8      | 10   | 1      |
| (Ground) |         |    | 20,000 | 23,421 |        |      | 50,000 |
+----------+---------+----+--------+--------+--------+------+--------+
| Amateur  | 8,500   | 10 | 1      | 1      | 2.01   | 2.01 | 1      |
| Vanity   |         |    | 66,443 | 71,188 |        |      | 71,188 |
| Call     |         |    |        |        |        |      |        |
| Signs    |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| AM Class | 69      | 1  | 2      | 2      | 3,093  | 3    | 2      |
| A        |         |    | 02,950 | 13,431 |        | ,100 | 13,900 |
+----------+---------+----+--------+--------+--------+------+--------+
| AM Class | 1,612   | 1  | 2,4    | 2,5    | 1,586  | 1    | 2,5    |
| B        |         |    | 67,600 | 56,655 |        | ,575 | 38,900 |
+----------+---------+----+--------+--------+--------+------+--------+
| AM Class | 950     | 1  | 8      | 8      | 941    | 940  | 8      |
| C        |         |    | 60,400 | 93,691 |        |      | 93,000 |
+----------+---------+----+--------+--------+--------+------+--------+
| AM Class | 1,769   | 1  | 2,8    | 2,9    | 1,683  | 1    | 2,9    |
| D        |         |    | 74,625 | 77,802 |        | ,675 | 63,075 |
+----------+---------+----+--------+--------+--------+------+--------+
| FM       | 3,068   | 1  | 6,0    | 6,2    | 2,032  | 2    | 6,2    |
| Classes  |         |    | 13,875 | 34,202 |        | ,025 | 12,700 |
| A, B1 &  |         |    |        |        |        |      |        |
| C3       |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| FM       | 2,908   | 1  | 7,3    | 7,5    | 2,613  | 2    | 7,6    |
| Classes  |         |    | 33,425 | 99,534 |        | ,625 | 33,500 |
| B, C,    |         |    |        |        |        |      |        |
| C0, C1 & |         |    |        |        |        |      |        |
| C2       |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| AM       | 60      | 1  | 35,030 | 36,245 | 604    | 375  | 22,500 |
| Cons     |         |    |        |        |        |      |        |
| truction |         |    |        |        |        |      |        |
| Permits  |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| FM       | 59      | 1  | 53,900 | 55,770 | 945    | 550  | 32,450 |
| Cons     |         |    |        |        |        |      |        |
| truction |         |    |        |        |        |      |        |
| Pe       |         |    |        |        |        |      |        |
| rmits^1^ |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| S        | 123     | 1  | 1      | 1      | 1,112  | 1    | 1      |
| atellite |         |    | 32,225 | 36,813 |        | ,100 | 35,300 |
| TV       |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| S        | 3       | 1  | 1,605  | 1,661  | 554    | 555  | 1,665  |
| atellite |         |    |        |        |        |      |        |
| TV       |         |    |        |        |        |      |        |
| Cons     |         |    |        |        |        |      |        |
| truction |         |    |        |        |        |      |        |
| Permit   |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| VHF      | 44      | 1  | 2,6    | 2,7    | 62,668 | 62   | 2,7    |
| Markets  |         |    | 64,925 | 57,388 |        | ,675 | 57,700 |
| 1-10     |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| VHF      | 61      | 1  | 2,7    | 2,8    | 46,225 | 46   | 2,8    |
| Markets  |         |    | 25,175 | 19,728 |        | ,225 | 19,725 |
| 11-25    |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| VHF      | 72      | 1  | 2,3    | 2,3    | 33,136 | 33   | 2,3    |
| Markets  |         |    | 05,800 | 85,803 |        | ,125 | 85,000 |
| 26-50    |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| VHF      | 118     | 1  | 2,2    | 2,2    | 19,452 | 19   | 2,2    |
| Markets  |         |    | 18,400 | 95,370 |        | ,450 | 95,100 |
| 51-100   |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| VHF      | 211     | 1  | 9      | 1,0    | 4,785  | 4    | 1,0    |
| R        |         |    | 75,875 | 09,734 |        | ,775 | 07,525 |
| emaining |         |    |        |        |        |      |        |
| Markets  |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| VHF      | 9       | 1  | 28,575 | 29,566 | 3,285  | 3    | 29,475 |
| Cons     |         |    |        |        |        | ,275 |        |
| truction |         |    |        |        |        |      |        |
| Permits  |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| UHF      | 84      | 1  | 1,6    | 1,7    | 20,750 | 20   | 1,7    |
| Markets  |         |    | 82,100 | 42,992 |        | ,750 | 43,000 |
| 1-10     |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| UHF      | 79      | 1  | 1,3    | 1,4    | 18,165 | 18   | 1,4    |
| Markets  |         |    | 84,475 | 35,040 |        | ,175 | 35,825 |
| 11-25    |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| UHF      | 115     | 1  | 1,1    | 1,1    | 10,421 | 10   | 1,1    |
| Markets  |         |    | 55,750 | 98,378 |        | ,425 | 98,875 |
| 26-50    |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| UHF      | 162     | 1  | 9      | 1,0    | 6,347  | 6    | 1,0    |
| Markets  |         |    | 92,250 | 28,286 |        | ,350 | 28,700 |
| 51-100   |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| UHF      | 181     | 1  | 3      | 3      | 1,785  | 1    | 3      |
| R        |         |    | 12,225 | 23,058 |        | ,775 | 21,275 |
| emaining |         |    |        |        |        |      |        |
| Markets  |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| UHF      | 26      | 1  | 53,475 | 55,330 | 2,128  | 1    | 46,150 |
| Cons     |         |    |        |        |        | ,775 |        |
| truction |         |    |        |        |        |      |        |
| Pe       |         |    |        |        |        |      |        |
| rmits^1^ |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| B        | 24,000  | 1  | 2      | 2      | 11     | 10   | 2      |
| roadcast |         |    | 50,000 | 58,674 |        |      | 40,000 |
| Aux      |         |    |        |        |        |      |        |
| iliaries |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| LPTV/Tra | 2,900   | 1  | 1,1    | 1,1    | 409    | 410  | 1,1    |
| ns-lator |         |    | 45,500 | 85,245 |        |      | 89,000 |
| s/Booste |         |    |        |        |        |      |        |
| rs/Class |         |    |        |        |        |      |        |
| A TV     |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| CARS     | 850     | 1  | 1      | 1      | 170    | 170  | 1      |
| Stations |         |    | 39,500 | 44,340 |        |      | 44,500 |
+----------+---------+----+--------+--------+--------+------+--------+
| Cable TV | 63,     | 1  | 46,8   | 48,4   | 0.769  | 0.77 | 48,5   |
| Systems  | 000,000 |    | 00,000 | 23,784 |        |      | 10,000 |
+----------+---------+----+--------+--------+--------+------+--------+
| In       | 53,100, | 1  | 131,2  | 135,7  | 0.00   | 0.0  | 135,9  |
| terstate | 000,000 |    | 20,000 | 72,841 | 255693 | 0256 | 36,000 |
| Tele-    |         |    |        |        |        |      |        |
| commu    |         |    |        |        |        |      |        |
| nication |         |    |        |        |        |      |        |
| Service  |         |    |        |        |        |      |        |
| P        |         |    |        |        |        |      |        |
| roviders |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| CMRS     | 203,    | 1  | 39,3   | 41,1   | 0.203  | 0.20 | 40,6   |
| Mobile   | 000,000 |    | 80,000 | 53,670 |        |      | 00,000 |
| Services |         |    |        |        |        |      |        |
| (Cellula |         |    |        |        |        |      |        |
| r/Public |         |    |        |        |        |      |        |
| Mobile)  |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| CMRS     | 6,      | 1  | 8      | 5      | 0.08   | 0.08 | 5      |
| M        | 500,000 |    | 96,000 | 19,756 |        |      | 20,000 |
| essaging |         |    |        |        |        |      |        |
| Services |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| BRS^2^   | 1,767   | 1  | 4      | 4      | 268    | 270  | 4      |
|          |         |    | 59,000 | 73,579 |        |      | 77,090 |
| LMDS     | 330     | 1  |        |        | 268    | 270  |        |
|          |         |    | 84,150 | 88,417 |        |      | 89,100 |
+----------+---------+----+--------+--------+--------+------+--------+
| Inter    | 5,      | 1  | 7,2    | 7,5    | 1.42   | 1.42 | 7,5    |
| national | 300,000 |    | 61,000 | 12,929 |        |      | 26,000 |
| Bearer   |         |    |        |        |        |      |        |
| Circuits |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| Inter    | 1       | 1  | 1,800  | 1,862  | 1,862  | 1    | 1,850  |
| national |         |    |        |        |        | ,850 |        |
| Public   |         |    |        |        |        |      |        |
| Fixed    |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| Earth    | 3,500   | 1  | 6      | 7      | 206    | 205  | 7      |
| Stations |         |    | 97,000 | 21,183 |        |      | 17,500 |
+----------+---------+----+--------+--------+--------+------+--------+
| Inter    | 5       | 1  | 3,825  | 3,958  | 792    | 790  | 3,950  |
| national |         |    |        |        |        |      |        |
| HF       |         |    |        |        |        |      |        |
| B        |         |    |        |        |        |      |        |
| roadcast |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| Space    | 87      | 1  | 9,0    | 9,3    | 1      | 107  | 9,3    |
| Stations |         |    | 65,925 | 80,479 | 07,822 | ,825 | 80,775 |
| (Geosta  |         |    |        |        |        |      |        |
| tionary) |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| Space    | 6       | 1  | 6      | 6      | 1      | 116  | 6      |
| Stations |         |    | 74,550 | 97,954 | 16,326 | ,325 | 97,950 |
| (N       |         |    |        |        |        |      |        |
| on-Geost |         |    |        |        |        |      |        |
| ationary |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| \*\*     |         |    | 280,7  | 290,5  |        |      | 290,1  |
| \*\*\*\* |         |    | 65,853 | 15,198 |        |      | 16,743 |
| Total    |         |    |        |        |        |      |        |
| E        |         |    |        |        |        |      |        |
| stimated |         |    |        |        |        |      |        |
| Revenue  |         |    |        |        |        |      |        |
| to be    |         |    |        |        |        |      |        |
| C        |         |    |        |        |        |      |        |
| ollected |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| \*\*     |         |    | 280,0  | 288,7  |        |      | 288,7  |
| \*\*\*\* |         |    | 98,000 | 71,000 |        |      | 71,000 |
| Total    |         |    |        |        |        |      |        |
| Revenue  |         |    |        |        |        |      |        |
| Req      |         |    |        |        |        |      |        |
| uirement |         |    |        |        |        |      |        |
+----------+---------+----+--------+--------+--------+------+--------+
| Di       |         |    | 6      | 1,7    |        |      | 1,3    |
| fference |         |    | 67,853 | 44,198 |        |      | 45,743 |
+----------+---------+----+--------+--------+--------+------+--------+

\* 1.030964163 factor applied based on the amount Congress designated
for recovery through regulatory fees (Public Law 109-108 and 47 U.S.C. §
159(a)(2)).

^1^ The AM and FM Construction Permits and the UHF Construction Permit
revenues were adjusted to set the regulatory fee to an amount no higher
than 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, 14169 ¶ 6 (2004) *(R&O and FNPRM)*.

**ATTACHMENT D**

**FY 2006 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.

+--------------------------------------------------------+-------------+
| **Fee Category**                                       | **Annual    |
|                                                        | Regulatory  |
|                                                        | Fee**       |
|                                                        |             |
|                                                        | **(U.S.     |
|                                                        | \$\'s)**    |
+========================================================+=============+
| PLMRS (per license) (Exclusive Use) (47 CFR part 90)   | 15          |
+--------------------------------------------------------+-------------+
| Microwave (per license) (47 CFR part 101)              | 80          |
+--------------------------------------------------------+-------------+
| 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)          | 15          |
+--------------------------------------------------------+-------------+
| General Mobile Radio Service (per license) (47 CFR     | 5           |
| part 95)                                               |             |
+--------------------------------------------------------+-------------+
| Rural Radio (47 CFR part 22) (previously listed under  | 10          |
| the Land Mobile category)                              |             |
+--------------------------------------------------------+-------------+
| PLMRS (Shared Use) (per license) (47 CFR part 90)      | 10          |
+--------------------------------------------------------+-------------+
| Aviation (Aircraft) (per station) (47 CFR part 87)     | 5           |
+--------------------------------------------------------+-------------+
| Aviation (Ground) (per license) (47 CFR part 87)       | 10          |
+--------------------------------------------------------+-------------+
| Amateur Vanity Call Signs (per call sign) (47 CFR part | 2.01        |
| 97)                                                    |             |
+--------------------------------------------------------+-------------+
| CMRS Mobile/Cellular Services (per unit) (47 CFR parts | .20         |
| 20, 22, 24, 27, 80 and 90)                             |             |
+--------------------------------------------------------+-------------+
| CMRS Messaging Services (per unit) (47 CFR parts 20,   | .08         |
| 22, 24 and 90)                                         |             |
+--------------------------------------------------------+-------------+
| Broadband Radio Service (formerly MMDS/ MDS) (per      | 270         |
| license) (47 CFR part 21)                              |             |
|                                                        | 270         |
| Local Multipoint Distribution Service (per call sign)  |             |
| (47 CFR, part 101)                                     |             |
+--------------------------------------------------------+-------------+
| AM Radio Construction Permits                          | 375         |
+--------------------------------------------------------+-------------+
| FM Radio Construction Permits                          | 550         |
+--------------------------------------------------------+-------------+
| TV (47 CFR part 73) VHF Commercial                     |             |
+--------------------------------------------------------+-------------+
| Markets 1-10                                           | 62,675      |
+--------------------------------------------------------+-------------+
| Markets 11-25                                          | 46,225      |
+--------------------------------------------------------+-------------+
| Markets 26-50                                          | 33,125      |
+--------------------------------------------------------+-------------+
| Markets 51-100                                         | 19,450      |
+--------------------------------------------------------+-------------+
| Remaining Markets                                      | 4,775       |
+--------------------------------------------------------+-------------+
| Construction Permits                                   | 3,275       |
+--------------------------------------------------------+-------------+
| TV (47 CFR part 73) UHF Commercial                     |             |
+--------------------------------------------------------+-------------+
| Markets 1-10                                           | 20,750      |
+--------------------------------------------------------+-------------+
| Markets 11-25                                          | 18,175      |
+--------------------------------------------------------+-------------+
| Markets 26-50                                          | 10,425      |
+--------------------------------------------------------+-------------+
| Markets 51-100                                         | 6,350       |
+--------------------------------------------------------+-------------+
| Remaining Markets                                      | 1,775       |
+--------------------------------------------------------+-------------+
| Construction Permits                                   | 1,775       |
+--------------------------------------------------------+-------------+
| Satellite Television Stations (All Markets)            | 1,100       |
+--------------------------------------------------------+-------------+
| Construction Permits -- Satellite Television Stations  | 555         |
+--------------------------------------------------------+-------------+
| Low Power TV, Class A TV, TV/FM Translators & Boosters | 410         |
| (47 CFR part 74)                                       |             |
+--------------------------------------------------------+-------------+
| Broadcast Auxiliaries (47 CFR part 74)                 | 10          |
+--------------------------------------------------------+-------------+
| CARS (47 CFR part 78)                                  | 170         |
+--------------------------------------------------------+-------------+
| Cable Television Systems (per subscriber) (47 CFR part | .77         |
| 76)                                                    |             |
+--------------------------------------------------------+-------------+
| Interstate Telecommunication Service Providers (per    | .00256      |
| revenue dollar)                                        |             |
+--------------------------------------------------------+-------------+
| Earth Stations (47 CFR part 25)                        | 205         |
+--------------------------------------------------------+-------------+
| Space Stations (per operational station in             | 107,825     |
| geostationary orbit) (47 CFR part 25) also includes    |             |
| DBS Service (per operational station) (47 CFR part     |             |
| 100)                                                   |             |
+--------------------------------------------------------+-------------+
| Space Stations (per operational system in              | 116,325     |
| non-geostationary orbit) (47 CFR part 25)              |             |
+--------------------------------------------------------+-------------+
| International Bearer Circuits (per active 64KB         | 1.42        |
| circuit)                                               |             |
+--------------------------------------------------------+-------------+
| International Public Fixed (per call sign) (47 CFR     | 1,850       |
| part 23)                                               |             |
+--------------------------------------------------------+-------------+
| International (HF) Broadcast (47 CFR part 73)          | 790         |
+--------------------------------------------------------+-------------+

**FY 2006 SCHEDULE OF REGULATORY FEES (continued)**

+--------------+--------+-------+------+------+-----------+----------+
| **FY 2006    |        |       |      |      |           |          |
| RADIO        |        |       |      |      |           |          |
| STATION      |        |       |      |      |           |          |
| REGULATORY   |        |       |      |      |           |          |
| FEES**       |        |       |      |      |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **           | **AM   | **AM  | **AM | **AM | **FM      | **FM     |
| Population** | Class  | Class | C    | C    | Classes** | C        |
|              | A**    | B**   | lass | lass |           | lasses** |
| **Served**   |        |       | C**  | D**  | **A, B1 & |          |
|              |        |       |      |      | C3**      | **B, C,  |
|              |        |       |      |      |           | C0, C1 & |
|              |        |       |      |      |           | C2**     |
+--------------+--------+-------+------+------+-----------+----------+
| *            | 625    | 475   | 375  | 450  | 550       | 725      |
| *\<=25,000** |        |       |      |      |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **25,001 --  | 1,225  | 925   | 575  | 700  | 1,125     | 1,250    |
| 75,000**     |        |       |      |      |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **75,001 --  | 1,825  | 1,150 | 775  | 1    | 1,550     | 2,300    |
| 150,000**    |        |       |      | ,150 |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **150,001 -- | 2,750  | 1,950 | 1    | 1    | 2,375     | 3,000    |
| 500,000**    |        |       | ,150 | ,375 |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **500,001 -- | 3,950  | 2,975 | 1    | 2    | 3,775     | 4,400    |
| 1,200,000**  |        |       | ,925 | ,300 |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **1,200,001  | 6,075  | 4,575 | 2    | 3    | 6,150     | 7,025    |
| --           |        |       | ,875 | ,675 |           |          |
| 3,000,00**   |        |       |      |      |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **\          | 7,275  | 5,475 | 3    | 4    | 7,850     | 9,125    |
| >3,000,000** |        |       | ,650 | ,600 |           |          |
+--------------+--------+-------+------+------+-----------+----------+

**ATTACHMENT E**

**FACTORS, MEASUREMENTS AND CALCULATIONS THAT GO INTO DETERMINING
STATION SIGNAL CONTOURS AND ASSOCIATED POPULATION COVERAGES**

**[AM Stations]{.underline}**

> 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
> (mV/m) @ 1 km) for the antenna system. The standard, or modified
> standard if pertinent, horizontal plane radiation pattern was
> calculated using techniques and methods specified in §§73.150 and
> 73.152 of the Commission\'s rules.[^237] 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[^238]. Using the
> calculated horizontal radiation values, and the retrieved soil
> conductivity data, the distance to the principal community (5 mV/m)
> contour was predicted for each of the 360 radials. The resulting
> distance to principal community contours were used to form a
> geographical polygon. Population counting was accomplished by
> determining which 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 principal community coverage area.

**[FM Stations]{.underline}**

> 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 C.F.R. § 73.313 of the
> Commission\'s rules to predict the distance to the principal community
> (70 dBu (decibel above 1 microVolt per meter) or 3.17 mV/m) contour
> for each of the 360 radials.[^239] The resulting distance to principal
> community 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 principal community coverage area.

**ATTACHMENT F**

**FY 2005 SCHEDULE OF REGULATORY FEES**

+--------------------------------------------------------+-------------+
| **Fee Category**                                       | **Annual    |
|                                                        | 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     | 5           |
| part 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)                                         |             |
+--------------------------------------------------------+-------------+
| Multipoint Distribution Services (MMDS/ MDS) (per      | 255         |
| license sign) (47 CFR part 21)                         |             |
|                                                        | 255         |
| Local Multipoint Distribution Service (per call sign)  |             |
| (47 CFR, part 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     | 395         |
| part 74)                                               |             |
+--------------------------------------------------------+-------------+
| Broadcast Auxiliary (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    |             |
| Direct Broadcast Satellite Service (per operational    |             |
| station) (47 CFR part 100)                             |             |
+--------------------------------------------------------+-------------+
| Space Stations (per operational system in              | 112,425     |
| non-geostationary orbit) (47 CFR part 25)              |             |
+--------------------------------------------------------+-------------+
| International Bearer Circuits (per active 64KB         | 1.37        |
| circuit)                                               |             |
+--------------------------------------------------------+-------------+
| International Public Fixed (per call sign) (47 CFR     | 1,800       |
| part 23)                                               |             |
+--------------------------------------------------------+-------------+
| International (HF) Broadcast (47 CFR part 73)          | 765         |
+--------------------------------------------------------+-------------+

**FY 2005 SCHEDULE OF REGULATORY FEES (continued)**

+--------------+--------+-------+------+------+-----------+----------+
| **FY 2005    |        |       |      |      |           |          |
| RADIO        |        |       |      |      |           |          |
| STATION      |        |       |      |      |           |          |
| REGULATORY   |        |       |      |      |           |          |
| FEES**       |        |       |      |      |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **           | **AM   | **AM  | **AM | **AM | **FM      | **FM     |
| Population** | Class  | Class | C    | C    | Classes** | C        |
|              | A**    | B**   | lass | lass |           | lasses** |
| **Served**   |        |       | C**  | D**  | **A, B1 & |          |
|              |        |       |      |      | C3**      | **B, C,  |
|              |        |       |      |      |           | C0, C1 & |
|              |        |       |      |      |           | C2**     |
+--------------+--------+-------+------+------+-----------+----------+
| *            | 625    | 475   | 375  | 450  | 550       | 725      |
| *\<=25,000** |        |       |      |      |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **25,001 --  | 1,225  | 925   | 550  | 675  | 1,125     | 1,250    |
| 75,000**     |        |       |      |      |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **75,001 --  | 1,825  | 1,150 | 750  | 1    | 1,550     | 2,300    |
| 150,000**    |        |       |      | ,125 |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **150,001 -- | 2,750  | 1,950 | 1    | 1    | 2,375     | 3,000    |
| 500,000**    |        |       | ,125 | ,350 |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **500,001 -- | 3,950  | 2,975 | 1    | 2    | 3,750     | 4,400    |
| 1,200,000**  |        |       | ,875 | ,250 |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **1,200,001  | 6,075  | 4,575 | 2    | 3    | 6,100     | 7,025    |
| --           |        |       | ,825 | ,600 |           |          |
| 3,000,00**   |        |       |      |      |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **\          | 7,275  | 5,475 | 3    | 4    | 7,750     | 9,125    |
| >3,000,000** |        |       | ,575 | ,500 |           |          |
+--------------+--------+-------+------+------+-----------+----------+

[^1]: 47 U.S.C. § 159(a).

[^2]: Section 3013 of Public Law 109-171 reads as follows, "In addition
    to any fees assessed under the Communications Act of 1934 (47 U.S.C.
    151 et seq.), the Federal Communications Commission shall assess
    extraordinary fees for licenses in the aggregate amount of
    \$10,000,000, which shall be deposited in the Treasury during fiscal
    year 2006 as offsetting receipts."

[^3]: Note that the required increase in regulatory fee payments of
    approximately 3.1 percent in FY 2006 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 3.1 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.

[^4]: In many instances, the regulatory 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 fee, etc.

[^5]: 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.

[^6]: In addition, beginning in FY 2005, we established a procedure by
    which we set regulatory fees for AM and FM radio and VHF and UHF
    television Construction Permits each year at an amount no higher
    than the lowest regulatory fee in that respective service category.
    For example, the regulatory fee for a Construction Permit for an AM
    radio station will never be more than the regulatory fee for an AM
    Class C radio station serving a population of less than 25,000.

[^7]: *See,* e.g*.,* Assessment and Collection of Regulatory Fees for
    Fiscal Year 2003; *Report and Order*, 18 FCC Rcd 15985, 15992 ¶ 21
    (2003).

[^8]: The 40.8 million number represents a unit estimate from the FY
    1997 regulatory fee order, and the 10.1 million figure represents
    the number of paid units as of fiscal year end 2005.

[^9]: Assessment and Collection of Regulatory Fees for Fiscal Year 2005,
    *Report and Order and Order on Reconsideration*, 20 FCC Rcd 12259,
    12264 ¶ 10 (2005) (*FY 2005 R&O and Order on Recon*).

[^10]: *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,
    ¶¶ 351-359 (2004) *(R&O and FNPRM)*.

[^11]: 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) but it is not entered into the Commission's accounts receivable
    system as a current debt. By contrast, a bill is automatically
    recognized as a debt owed to the Commission. Bills reflect the
    amount owed and have a Fee Due Date of the last day of the
    regulatory fee payment window. Consequently, if a bill is not paid
    by the Fee Due Date, it becomes delinquent and is subject to our
    debt collection procedures. *See* *also* 47 C.F.R. §§ 1.1161(c),
    1.1164(f)(5), and 1.1910.

[^12]: Beginning in FY 2002, Form 159-W included a payment section at
    the bottom of the form that allowed carriers the opportunity to send
    in Form 159-W in lieu of completing Form 159 Remittance Advice Form.

[^13]: Fee assessments are proposed to be 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, to the extent that
    applicants, permittees and licensees of such facilities do not
    qualify as government entities or non-profit entities. Fee
    assessments have not been issued for broadcast auxiliary stations in
    prior years, nor will they be issued in FY 2006.

[^14]: The Commission-authorized web site for media services licensees
    is http://www.fccfees.com.

[^15]: *See FY 2005 R&O and Order on Recon*., 20 FCC Rcd 12259, 12264 ¶¶
    38-44.

[^16]: Federal Communications Commission, *Regulatory Fees Fact Sheet:
    What You Owe - Commercial Wireless Services for FY 2005* at 1 (rel.
    July 2005).

[^17]: The number of basic cable television subscribers served is the
    basis from which cable television operators are required to
    calculate their annual section 9 regulatory fee payment obligations.

[^18]: For more information on our proposed regulatory fee assessment
    initiative for CMRS providers this fiscal year, *see* *also* Section
    II.B.2.E. of this *Notice*.

[^19]: 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.
    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 2005, rather than on a count as of December 31, 2005.

[^20]: 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](https://webmail.fcc.gov/exchweb/bin/redir.asp?URL=http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-249904A4.pdf)).
    On February 6, 2006, VSNL Telecommunications (US) Inc. filed a
    Petition for Rulemaking urging the Commission to reform the current
    International Bearer Circuit Fee rules and policies as applied to
    non-common carrier submarine cable operators. *See* Petition for
    Rulemaking of VSNL Telecommunications (US) Inc., RM-11312 (filed
    February 6, 2006). This Petition remains pending before the
    Commission, which has issued a Public Notice requesting comment on
    the petition. *See* Consumer and Governmental Affairs Bureau,
    Reference Information Center, *Public Notice,* Report No. 2759
    (released February 15, 2006). The Commission intends to resolve the
    complex issues presented by this Petition separately, and any
    comments on these issues filed in the instant proceeding will be
    incorporated into, and addressed, with those filed on the Petition
    for Rulemaking.

[^21]: *See* 5 U.S.C. § 603. In addition, the *Notice* and the IRFA (or
    summaries thereof) will be published in the Federal Register.

[^22]: *See* 47 C.F.R. § 1.1206(b); *see also* 47 C.F.R. §§ 1.1202,
    1.1203.

[^23]: *See* 47 C.F.R. § 1.1206(b)(2).

[^24]: *See* *id*. §§ 1.415, 1419.

[^25]: *See* *Electronic Filing of Documents in Rulemaking Proceedings*,
    13 FCC Rcd 11322 (1998).

[^26]: 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 No.
    104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the
    Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).

[^27]: 5 U.S.C. 603(a).

[^28]: *Id.*

[^29]: 47 U.S.C. 154(i) and (j), 159, and 303(r).

[^30]: 5 U.S.C. § 603(b)(3).

[^31]: 5 U.S.C. § 601(6).

[^32]: 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."

[^33]: 15 U.S.C. § 632.

[^34]: *See* SBA, Programs and Services, SBA Pamphlet No. CO-0028, at
    page 40 (July 2002).

[^35]: Independent Sector, The New Nonprofit Almanac & Desk Reference
    (2002).

[^36]: 5 U.S.C. § 601(5).

[^37]: U.S. Census Bureau, *Statistical Abstract of the United States*:
    2000, Section 9, pages 299-300, Tables 490 and 492.

[^38]: 15 U.S. C. § 632.

[^39]: 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 C.F.R. §
    121.102(b).

[^40]: 13 C.F.R. § 121.201, North American Industry Classification
    System (NAICS) code 517110 (changed from 513310 in October 2002).

[^41]: FCC, Wireline Competition Bureau, Industry Analysis and
    Technology Division, "*Trends in Telephone Service*" at Table 5.3,
    Page 5-5 (June 2005) (hereinafter "*Trends in Telephone Service*").
    This source uses data that are current as of October 1, 2004.

[^42]: 13 C.F.R. § 121.201, NAICS code 517110 (changed from 513310 in
    October 2002).

[^43]: "Trends in Telephone Service" at Table 5.3.

[^44]: 13 CFR § 121.201, NAICS code 517310 (changed from 513330 in
    October 2002).

[^45]: "Trends in Telephone Service" at Table 5.3.

[^46]: 13 CFR § 121.201, NAICS code 517310 (changed to 513330 in October
    2002).

[^47]: "Trends in Telephone Service" at Table 5.3.

[^48]: 3 CFR § 121.201, NAICS code 517110 (changed from 513310 in
    October 2002).

[^49]: "Trends in Telephone Service" at Table 5.3.

[^50]: 13 C.F.R. § 121.201, NAICS code 517110 (changed from 513310 in
    October 2002).

[^51]: "*Trends in Telephone Service*" at Table 5.3.

[^52]: 13 C.F.R. § 121.201, NAICS code 517110 (changed from 513310 in
    October 2002).

[^53]: "*Trends in Telephone Service*" at Table 5.3.

[^54]: 13 C.F.R. § 121.201, NAICS code 517310 (changed from 513330 in
    October 2002).

[^55]: "*Trends in Telephone Service*" at Table 5.3.

[^56]: We include all toll-free number subscribers in this category,
    including those for 888 numbers.

[^57]: 13 C.F.R. § 121.201, NAICS code 517310 (changed from 513330 in
    October 2002).

[^58]: FCC, Wireline Competition Bureau, Industry Analysis and
    Technology Division, "*Trends in Telephone Service"*, Tables 18.4,
    18.5, 18.6, and 18.7, (June 2005).

[^59]: 13 CFR. § 121.201, NAICS codes 517410 and 517910 (changed from
    513340 and 513390 in October 2002).

[^60]: 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).

[^61]: Office of Management and Budget, North American Industry
    Classification System, page 513 (1997) (NAICS code 513390, changed
    to 517910 in October 2002).

[^62]: 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).

[^63]: 13 C.F.R. § 121.201, NAICS code 513321 (changed to 517211 in
    October 2002).

[^64]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^65]: 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).

[^66]: 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."

[^67]: 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).

[^68]: 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."

[^69]: 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).

[^70]: 13 C.F.R. § 121.201, NAICS code 518111.

[^71]: 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).

[^72]: 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).

[^73]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^74]: 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).

[^75]: 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."

[^76]: FCC, Wireline Competition Bureau, Industry Analysis and
    Technology Division, "*Trends in Telephone Service*" at Table 5.3,
    page 5-5 (June 2005). This source uses data that are current as of
    October 1, 2004.

[^77]: FCC, Wireline Competition Bureau, Industry Analysis and
    Technology Division, "*Trends in Telephone Service*" at Table 5.3,
    page 5-5 (June 2005). This source uses data that are current as of
    October 1, 2004.

[^78]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^79]: 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).

[^80]: 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."

[^81]: 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).

[^82]: Paging Second Report and Order, 12 FCC Rcd at 2811, para. 179.

[^83]: *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.

[^84]: *See* "929 and 931 MHz Paging Auction Closes," Public Notice, 15
    FCC Rcd 4858 (WTB 2000).

[^85]: *See* "929 and 931 MHz Paging Auction Closes," Public Notice, 15
    FCC Rcd 4858 (WTB 2000).

[^86]: *See* "Lower and Upper Paging Band Auction Closes," Public
    Notice, 16 FCC Rcd 21821 (WTB 2002).

[^87]: *See* "Lower and Upper Paging Bands Auction Closes," Public
    Notice, 18 FCC Rcd 11154 (WTB 2003).

[^88]: *See* *Trends in Telephone Service*, Industry Analysis Division,
    Wireline Competition Bureau, Table 5.3 (Number of Telecommunications
    Service Providers by Size of Business) (June 2005).

[^89]: 13 C.F.R. § 121.201, NAICS code 517211.

[^90]: 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).

[^91]: *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.

[^92]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^93]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^94]: FCC, Wireline Competition Bureau, Industry Analysis and
    Technology Division, "*Trends in Telephone Service*" at Table 5.3,
    page 5-5 (June 2005). This source uses data that are current as of
    October 1, 2004.

[^95]: *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 C.F.R. § 24.720(b).

[^96]: *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.

[^97]: *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.

[^98]: FCC News, "Broadband PCS, D, E and F Block Auction Closes," No.
    71744 (released January 14, 1997).

[^99]: *See* "C, D, E, and F Block Broadband PCS Auction Closes,"
    *Public Notice*, 14 FCC Rcd 6688 (WTB 1999).

[^100]: *See* "C and F Block Broadband PCS Auction Closes; Winning
    Bidders Announced," *Public Notice*, 16 FCC Rcd 2339 (2001).

[^101]: 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).

[^102]: *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).

[^103]: 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).

[^104]: 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).

[^105]: 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).

[^106]: *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.

[^107]: *See* "Narrowband PCS Auction Closes," *Public Notice*, 16 FCC
    Rcd 18663 (WTB 2001).

[^108]: *See* Reallocation and Service Rules for the 698-746 MHz
    Spectrum Band (Television Channels 52-59), *Report and Order*, 17
    FCC Rcd 1022 (2002).

[^109]: *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).

[^110]: *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).

[^111]: *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).

[^112]: *See* Letter to Thomas Sugrue, Chief, Wireless
    Telecommunications Bureau, Federal Communications Commission, from
    Aida Alvarez, Administrator, Small Business Administration, dated
    August 10, 1999.

[^113]: *See* "Lower 700 MHz Band Auction Closes," *Public Notice*, 17
    FCC Rcd 17272 (WTB 2002).

[^114]: *See* "Lower 700 MHz Band Auction Closes," *Public Notice*, 18
    FCC Rcd 11873 (WTB 2003).

[^115]: *See* "Lower 700 MHz Band Auction Closes," *Public Notice*, 18
    FCC Rcd 11873 (WTB 2003).

[^116]: 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).

[^117]: *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).

[^118]: *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).

[^119]: *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).

[^120]: *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).

[^121]: *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).

[^122]: *See* "700 MHz Guard Bands Auction Closes: Winning Bidders
    Announced," *Public Notice*, 15 FCC Rcd 18026 (2000).

[^123]: *See* "700 MHz Guard Bands Auction Closes: Winning Bidders
    Announced," *Public Notice*, 16 FCC Rcd 4590 (WTB 2001).

[^124]: 47 C.F.R. § 90.814(b)(1).

[^125]: 47 C.F.R. § 90.814(b)(1).

[^126]: *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.

[^127]: *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).

[^128]: *See* "Multi-Radio Service Auction Closes," *Public Notice*, 17
    FCC Rcd 1446 (WTB 2002).

[^129]: *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).

[^130]: *See*, "800 MHz SMR Service Lower 80 Channels Auction Closes;
    Winning Bidders Announced," *Public Notice*, 16 FCC Rcd 1736 (2000).

[^131]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^132]: 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).

[^133]: 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).

[^134]: *Id.* at 11068, paras. 291.

[^135]: *Id.*

[^136]: *See* Letter to Daniel Phythyon, Chief, Wireless
    Telecommunications Bureau, Federal Communications Commission, from
    Aida Alvarez, Administrator, Small Business Administration, dated
    January 6, 1998.

[^137]: *See generally* "220 MHz Service Auction Closes," *Public
    Notice*, 14 FCC Rcd 605 (WTB 1998).

[^138]: *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).

[^139]: *See* "Phase II 220 MHz Service Spectrum Auction Closes,"
    *Public Notice*, 14 FCC Rcd 11218 (WTB 1999).

[^140]: *See* "Multi-Radio Service Auction Closes," *Public Notice*, 17
    FCC Rcd 1446 (WTB 2002).

[^141]: *See* 13 C.F.R. § 121.201, NAICS code 517212.

[^142]: *See generally* 13 C.F.R. § 121.201.

[^143]: Federal Communications Commission, 60th Annual Report, Fiscal
    Year 1994, at ¶ 116.

[^144]: *See* 47 C.F.R. §§ 101 et seq. (formerly, Part 21 of the
    Commission's Rules) for common carrier fixed microwave services
    (except Multipoint Distribution Service).

[^145]: Persons eligible under parts 80 and 90 of the Commission's Rules
    can use Private Operational-Fixed Microwave services. *See* 47
    C.F.R. 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.

[^146]: Auxiliary Microwave Service is governed by Part 74 of Title 47
    of the Commission's Rules. *See* 47 C.F.R. 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.

[^147]: 13 CFR § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^148]: *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).

[^149]: *Id.*

[^150]: *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).

[^151]: *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).

[^152]: *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).

[^153]: *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).

[^154]: *See* Letter to Dan Phythyon, Chief, Wireless Telecommunications
    Bureau, FCC, from Aida Alvarez, Administrator, SBA (Jan. 6, 1998).

[^155]: *See* "Interactive Video and Data Service (IVDS) Applications
    Accepted for Filing," *Public Notice*, 9 FCC Rcd 6227 (1994).

[^156]: Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding, *Fourth Report and Order*, 9 FCC Rcd 2330
    (1994).

[^157]: 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).

[^158]: *Id.*

[^159]: *See* Letter to Daniel Phythyon, Chief, Wireless
    Telecommunications Bureau, Federal Communications Commission, from
    Aida Alvarez, Administrator, Small Business Administration, dated
    January 6, 1998.

[^160]: 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 ¶ 20 (1998); *see also* 47
    C.F.R. § 90.1103.

[^161]: 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 C.F.R.
    § 90.1103.

[^162]: *See* Letter to Thomas Sugrue, Chief, Wireless
    Telecommunications Bureau, Federal Communications Commission, from
    Aida Alvarez, Administrator, Small Business Administration, dated
    February 22, 1999.

[^163]: The service is defined in § 22.99 of the Commission's Rules, 47
    C.F.R. § 22.99.

[^164]: BETRS is defined in §§ 22.757 and 22.759 of the Commission's
    Rules, 47 C.F.R. §§ 22.757 and 22.759.

[^165]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^166]: The service is defined in § 22.99 of the Commission's Rules, 47
    C.F.R. § 22.99.

[^167]: 13 CFR § 121.201, NAICS codes 513322 (changed to 517212 in
    October 2002).

[^168]: 13 CFR § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^169]: 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).

[^170]: This service is governed by Subpart I of Part 22 of the
    Commission's Rules. *See* 47 C.F.R. §§ 22.1001-22.1037.

[^171]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^172]: *Id.*

[^173]: *See* Amendment of the Commission's Rules Regarding Multiple
    Address Systems, *Report and Order*, 15 FCC Rcd 11956, 12008, para.
    123 (2000).

[^174]: *Id.*

[^175]: *See* Letter to Thomas Sugrue, Chief, Wireless
    Telecommunications Bureau, Federal Communications Commission, from
    Aida Alvarez, Administrator, Small Business Administration, dated
    June 4, 1999.

[^176]: *See* "Multiple Address Systems Spectrum Auction Closes,"
    *Public Notice*, 16 FCC Rcd 21011 (2001).

[^177]: *See* 13 C.F.R. § 121.201, NAICS code 517212.

[^178]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^179]: 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).

[^180]: *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."

[^181]: 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.

[^182]: 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 C.F.R. § 101.538(a)(2).

[^183]: 24 GHz Report and Order, 15 FCC Rcd at 16967, para. 77; *see
    also* 47 C.F.R. § 101.538(a)(1).

[^184]: *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.

[^185]: 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).

[^186]: 47 C.F.R. § 21.961(b)(1).

[^187]: *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).

[^188]: 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, para. 34 (1995).

[^189]: 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 C.F.R. § 121.201,
    NAICS code 517910.

[^190]: 13 C.F.R. § 121.201, NAICS code 517510.

[^191]: *Id.*

[^192]: U.S. Census Bureau, 1997 Economic Census, Subject Series:
    Information, "Establishment and Firm Size (Including Legal Form of
    Organization)," Table 4 (issued October 2000).

[^193]: *Id.*

[^194]: 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.

[^195]: *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)

[^196]: *See* 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.

[^197]: "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).

[^198]: FCC News Release, "Broadcast Station Totals as of September 30,
    2005."

[^199]: *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).

[^200]: *Id.*

[^201]: "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).

[^202]: "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).

[^203]: 13 CFR 121.201, NAICS codes 513111 and 513112.

[^204]: FCC News Release, "Broadcast Station Totals as of September 30,
    2004."

[^205]: 15 U.S.C. 632.

[^206]: 13 CFR § 121.201, NAICS code 513220 (changed to 517510 in
    October 2002).

[^207]: 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).

[^208]: 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).

[^209]: Paul Kagan Associates, Inc., Cable TV Investor, February 29,
    1996 (based on figures for December 30, 1995).

[^210]: 47 U.S.C. § 543(m)(2).

[^211]: *See* FCC Announces New Subscriber Count for the Definition of
    Small Cable Operator, *Public Notice*, DA 01-158 (January 24, 2001).

[^212]: 47 CFR § 76.901(f).

[^213]: *See* FCC Announces New Subscriber Count for the Definition of
    Small Cable Operators, Public Notice, DA-01-0158 (released January
    24, 2001).

[^214]: 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 § 76.901(f) of the Commission's rules. *See* 47 CFR §
    76.909(b).

[^215]: *See* 47 U.S.C. § 573.

[^216]: 13 CFR § 121.201, NAICS code 513220 (changed to 517510 in
    October 2002).

[^217]: *See* <http://www.fcc.gov/csb/ovs/csovscer.html> (current as of
    March 2002).

[^218]: 13 C.F.R. § 121.201, NAICS code 517510.

[^219]: U.S. Census Bureau, 1997 Economic Census, Subject Series:
    Information, "Establishment and Firm Size (Including Legal Form of
    Organization)," Table 4 (issued October 2000).

[^220]: *Id.*

[^221]: "Auctions of Licenses in the Multichannel Video Distribution and
    Data Service Rescheduled for January 14, 2004," *Public Notice*, DA
    03-2354 (August 28, 2003).

[^222]: 13 CFR § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^223]: Amendment of the Commission's Rules Concerning Maritime
    Communications, *Third Report and Order and Memorandum Opinion and
    Order*, 13 FCC Rcd 19853 (1998).

[^224]: 47 CFR Part 90.

[^225]: 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 C.F.R. Part
    95.](http://web2.westlaw.com/Find/Default.wl?DB=1000547&DocName=47CFRS95.401&FindType=L&AP=&RS=WLW2.86&VR=2.0&SV=Split&MT=Westlaw&FN=_top)

[^226]: 13 C.F.R. § 121.201, NAICS Code 517212.

[^227]: With the exception of the special emergency service, these
    services are governed by Subpart B of part 90 of the Commission's
    Rules, 47 C.F.R. §§ 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](http://www.westlaw.com/Find/Default.wl?rs=++++1.0&vr=2.0&DB=1000547&DocName=47CFRS90.15&FindType=L)-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](http://www.westlaw.com/Find/Default.wl?rs=++++1.0&vr=2.0&DB=1000547&DocName=47CFRS90.33&FindType=L)-90.55.

[^228]: 47 CFR § 1.1162.

[^229]: 5 U.S.C. § 601(5).

[^230]: 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.

[^231]: 47 CFR § 1.1164.

[^232]: 47 CFR § 1.1164(c).

[^233]: Public Law 104-134, 110 Stat. 1321 (1996).

[^234]: 31 U.S.C. § 7701(c)(2)(B).

[^235]: 47 CFR § 1.1166.

[^236]: 47 U.S.C. § 159(a).

[^237]: 47 C.F.R. §§ 73.150 and 73.152.

[^238]: *See Map of* Estimated *Effective Ground Conductivity in the
    United States*, 47 C.F.R. § 73.190 Figure R3.

[^239]: 47 C.F.R. § 73.313.