**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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**REPORT AND ORDER**

**Adopted: July 12, 2006 Released: July 17, 2006**

**By the Commission:** Commissioner Copps concurring and issuing a
statement; Commissioner Adelstein approving in part, concurring in part,
and issuing a statement.

Table of Contents

Heading Paragraph \#

I. Introduction 1

II\. discussion 2

A. FY 2006 Regulatory Fee Assessment Methodology 4

1\. Development of FY 2006 Regulatory Fees 5

a\. Calculation of Revenue and Fee Requirements 5

b\. Additional Adjustments to Payment Units 6

2\. Commercial Mobile Radio Service (CMRS) Messaging Service 8

3\. Regulatory Fees for Direct Broadcast Service (DBS) Providers and
Cable Television Operators 10

4\. Broadband Radio Service (BRS)/Educational Broadband Service (EBS) 17

5\. International Bearer Circuits 18

B. Clarifications 19

1\. Clarification Regarding When Section 9 Regulatory Fees are Collected
19

2\. Effective Date of Payment of Multi-Year Wireless Fees 20

3\. Clarification Regarding Experimental Licenses 23

C. Administrative and Operational Issues 24

1\. Mandatory Use of Fee Filer 27

2\. Proposals for Notification and Collection of Regulatory Fees 28

a\. Interstate Telecommunications Service Providers (ITSPs) \-- Billed
30

b\. Satellite Space Station Licensees \-- Billed 31

c\. Additional Service Categories for Billing or Assessing 33

d\. Media Services Licensees \-- Assessed 34

e\. Commercial Mobile Radio Service (CMRS) Cellular and Mobile Services
-- Assessed 38

f\. Cable Television Subscribers \-- Assessed 44

3\. Streamlined Regulatory Fee Payment Process for CMRS Providers 48

III\. PROCEDURAL MATTERS 49

A. Payment of Regulatory Fees 49

1\. De Minimis Fee Payment Liability 49

2\. Standard Fee Calculations and Payment Dates 50

3\. Limitations on Credit Card Transactions 51

B. Enforcement 52

C. Final Paperwork Reduction Act of 1995 Analysis 54

D. Congressional Review Act Analysis 55

IV\. ORDERING CLAUSES 56

ATTACHMENTS

Attachment A Final Regulatory Flexibility Analysis

Attachment B Sources of Payment Unit Estimates for FY 2006

Attachment C Calculation of Revenue Requirements and Pro-Rata Fees

Attachment D 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

Attachment G List of Commenters

Attachment H Rule Changes

# Introduction

1.  In this *Report and Order*, we conclude a proceeding to collect
    \$288,771,000 in regulatory fees, pursuant to section 9 of the
    Communications Act of 1934, as amended (the Act), and an additional
    \$10,000,000 as required by section 3013 of the Deficit Reduction
    Act (Public Law 109-171). Section 9 regulatory 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.  We retain the established methods, policies, and procedures for
    calculating regulatory fees adopted by the Commission in prior
    years. We have found that this assessment methodology adopted in
    prior regulatory fee cycles has provided a satisfactory means for
    collecting the Commission's annual appropriations. In addition to
    the assessment methodology, the Commission retains the same
    administrative measures used for notification and assessment of
    regulatory fees as in previous years, such as generating
    pre-completed regulatory fee assessment forms for certain
    regulatees.

3.  The Commission is obligated to collect \$288,771,000 in regulatory
    fees during Fiscal Year (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, the
    Commission is required to assess and collect an additional
    \$10,000,000 to contribute toward the Nation's debt reduction in
    fiscal year 2006.[^2] In our *FY 2006 Notice of Proposed Rulemaking
    (NPRM)*, we sought comment regarding how the Commission should
    implement this provision.[^3] Specifically, we asked whether the
    Commission should assess the additional \$10,000,000 on application
    fees, on regulatory fees, or use some other form of assessment. We
    received no comment on this matter. Additionally, the legislative
    history of the act provides no guidance as to how Congress intends
    the Commission to collect these debt reduction funds. We believe
    that collecting the mandatory \$10,000,000 debt reduction
    contribution in conjunction with our FY 2006 schedule of section 9
    regulatory fees will ensure the most equitable and timely collection
    of such fees. Therefore, in addition to the amount mandated by
    Congress in the appropriations law (\$288,771,000), our FY 2006
    schedule of section 9 regulatory fees includes an additional
    \$10,000,000 allocated across all service categories. Hereafter, in
    this *Report and Order,* we will refer to the total \$298,771,000 as
    regulatory fees.

## FY 2006 Regulatory Fee Assessment Methodology

4.  On March 27, 2006, we released the *FY 2006 NPRM*. As noted in the
    *FY 2006 NPRM*, the section 9 regulatory fee proceeding is an annual
    process intended to ensure the Commission collects the amounts
    required by Congress. In the *NPRM*, we proposed to largely retain
    the section 9 regulatory fee methodology used in the prior fiscal
    year. Only six comments and two reply comments were filed. We
    address our conclusions below.

### Development of FY 2006 Regulatory Fees

#### Calculation of Revenue and Fee Requirements 

5.  In our FY 2006 regulatory fee assessment, we use the same section 9
    regulatory fee assessment methodology that we adopted in FY 2005.
    Each fiscal year, the Commission proportionally allocates the total
    amount that must be collected via section 9 regulatory fees. The
    results of FY 2006 regulatory fee assessment methodology (including
    a comparison to the prior year's results) are contained in
    Attachment C. For FY 2006, the receipts collected through FY 2005
    regulatory fees will be the basis for calculating the amount the
    Commission must collect in FY 2006. To collect the \$298,771,000
    million required by law, we first adjust the FY 2005 amount upward
    by 6.67 percent.[^4] Consistent with past practice, we then divide
    the FY 2006 amount by the number of payment units in each fee
    category to determine the unit fee.[^5] As in prior years, for cases
    involving small fees (*e.g.*, licenses that are renewed over a
    multiyear term), we divide the resulting unit fee by the term of the
    license, and then round these unit fees consistent with the
    requirements of section 9(b)(2).

#### Additional Adjustments to Payment Units

6.  In calculating the FY 2006 regulatory fees listed in Attachment D,
    we further adjusted the FY 2005 list of payment units (see
    Attachment B for sources of payment units) based upon licensee
    databases and industry and trade group projections to produce the
    most up-to-date and equitable regulatory fee calculations possible.
    Whenever possible, we verified these estimates from multiple sources
    to ensure accuracy. Sources include Commission licensee databases,
    prior year payment records, and/or industry and trade association
    projections.[^6] 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 2006, 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.

7.  We consider additional factors 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 for radio stations.[^7]

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

8.  In the *FY 2006 NPRM*, we proposed to continue our policy of
    maintaining the CMRS Messaging Service regulatory fee at the rate
    originally calculated in FY 2003 (*i.e.*, \$0.08 per subscriber),
    noting that the subscriber base in this industry has declined more
    than 75% from 40.8 million to 10.1 million from FY 1997 to FY
    2005.[^8] We received supporting comments from three entities and no
    opposing comments.[^9] All commenters endorse, at a minimum,
    maintaining the fee at \$0.08 per subscriber. BloostonLaw urges the
    Commission to reduce the fee to \$0.04 per subscriber, citing the
    paging industry's declining subscriber base and increasing
    regulatory obligations and expenditures that have been imposed on
    this industry since the inception of the section 9 regulatory fee
    program.[^10]

9.  We are cognizant of the regulatory obligations cited by BloostonLaw.
    The Commission has already addressed the hardships suffered by the
    CMRS messaging industry by freezing the fee, which would otherwise
    have risen significantly.[^11] Moreover, the obligations cited by
    BloostonLaw are associated with significant regulatory costs and
    benefits that warrant increasing the fee. Therefore, we are not
    persuaded to reduce the regulatory fee amount. In consideration of
    the financial hardship that could be caused by increasing the fee
    (shrinking profit margins, additional loss of subscribers, reduced
    revenue, etc.) for this service category, we adopt our proposal to
    maintain the CMRS Messaging Service regulatory fee this fiscal year
    at \$0.08 per subscriber.

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

10. In our FY 2005 regulatory fee proceeding, the National Cable and
    Telecommunications Association (NCTA) and American Cable Association
    (ACA) submitted comments[^12] proposing that the Commission adopt
    the same per-subscriber assessment for DBS operators that applies to
    cable television operators.[^13] DirecTV, Inc. and Echostar
    Satellite L.L.C. (DirecTV and Echostar), in joint reply comments,
    argued that the cable operators failed to make the required showing
    to satisfy section 9(b)(3) of the Act for changes to the
    Commission's regulatory fee structure, specifically, "In making such
    amendments, the Commission shall add, delete, or reclassify services
    in the Schedule to reflect additions, deletions, or changes in the
    nature of its services as a consequence of Commission rulemaking
    proceedings or changes in law."[^14] We agreed that the cable
    commenters did not satisfy section 9 requirements.

11. As a procedural matter, we also found that, because the comments
    raised issues not contemplated in the *FY 2005 NPRM*, we had not
    provided sufficient notice for a change to the fee methodology for
    DBS operators.[^15] Therefore, we stated that we would seek further
    information on this issue in our FY 2006 regulatory fee proceeding
    in order to fully explore whether there is a legal basis for such a
    change, and to analyze the impact of any change in the methodology
    used to assess fees both for DBS providers and cable television
    operators.[^16]

12. In the *FY 2006 NPRM*, we sought comment on the appropriate
    regulatory fee structure for both cable operators and DBS
    providers.[^17] We asked that commenters proposing a fee change
    identify the Commission rulemaking proceeding(s) or change(s) in law
    that they believe warrant a modification of the fee assessment
    schedule. NCTA, ACA, and the DBS industry again commented on this
    issue in FY 2006. While many of the economic, competition, and
    perceived equity arguments presented in these comments repeated
    those made in FY 2005, they also provided additional information
    regarding changes in law and subsequent Commission rulemakings.

13. NCTA argues that the Commission should modify the structure for
    assessing DBS regulatory fees. In particular, NCTA argues that DBS
    should be assessed on a per-subscriber basis, and that cable
    regulatory fees should be reduced. NCTA argues that the Commission's
    per-license fee scheme for DBS rests on an out-dated and faulty
    premise that the Commission's regulatory responsibilities with
    respect to DBS are unrelated to the number of end users of satellite
    services.[^18] It asserts that the regulatory landscape for
    Multichannel Video Programming Distributor (MVPD) has changed
    significantly in the past 10 years, stating that the Commission's
    regulatory responsibilities with respect to the cable industry have
    substantially diminished, while its responsibilities with respect to
    the DBS industry have increased.[^19] NCTA supports this assertion
    by noting that cable specific rulemakings at the Commission have
    been on the wane[^20] and that rate regulation of the cable
    programming service tier (CPST) ended in 1999, along with all of the
    Commission's CPST rate review activity.[^21] NCTA then highlights
    areas where DBS and cable are subject to a host of comparable, and
    in some cases service-specific, regulations. These include mandatory
    carriage obligations for broadcast signals, retransmission consent
    for the carriage of broadcast signals, network non-duplication,
    syndicated exclusivity and sports programming blackout
    requirements.[^22] ACA fully supports NCTA's recommendation that the
    Commission impose a per-subscriber fee on DBS.[^23] ACA points out
    the overwhelming disparity in regulatory fee assessments on small
    and medium-sized cable operators as compared to DBS, and states that
    the disparity places these operators at a structural disadvantage to
    their DBS competitors.[^24]

14. DirecTV, Inc. and Echostar Satellite L.L.C. (DirecTV and Echostar)
    filed joint reply comments opposing the arguments of NCTA and ACA.
    The joint commenters claim that NTCA's proposal is only one part of
    the cable television industry's nationwide campaign to raise taxes
    paid by its DBS rivals.[^25] DirecTV and Echostar assert that the
    cable industry has failed to show that DBS regulatory fees are out
    of line with the Commission's DBS regulatory costs and that,
    accordingly, the cable industry has not made an argument that
    satisfies the standard set forth in section 9(b)(3) for "permitted
    amendments," to justify a change to the section 9 regulatory fees
    for DBS operators.[^26] Specifically, DirecTV and Echostar maintain
    that before the Commission can amend the geostationary orbit (GSO)
    satellite space station fee category, it must, at a minimum,
    find[^27] that new rulemaking proceedings or changes in law have
    caused additions, deletions, or changes to the nature of the GSO
    space station fee category such that the space station fee no longer
    reasonably relates to the regulatory costs caused by the GSO space
    station service for certain regulatory activities, as those costs
    may be "adjusted" by the benefits to space station operators of such
    activities.[^28]

15. DirecTV and Echostar maintain that the section 9 statutory
    conditions have not been met.[^29] They argue that NCTA's
    justifications for raising DBS section 9 fees are unrelated to the
    standard for amending fees, as those justifications range from items
    that have nothing to do with the GSO space station category (market
    and regulatory changes in the cable industry), to items that have
    nothing to do with rulemakings or law (DBS subscriber gains, cable
    subscriber losses), or to regulatory proceedings in which DBS
    participation has not changed significantly in years (video
    programming competition, closed captioning, *etc*.)[^30]

16. We are not persuaded by NCTA's arguments that modifications to the
    section 9 regulatory fee structure are warranted at this time. We
    agree with DirecTV and Echostar that NCTA has not shown that the
    requirements of section 9 would be better satisfied by the
    reclassification of DBS and the assessment of the DBS fee on a per
    subscriber basis, as proposed by NCTA. We therefore will continue to
    use the section 9 regulatory fee classification of DBS as a GSO
    service and assess the fee on a per satellite basis as adopted by
    the Commission in prior fiscal years. The existing regulatory fee
    classification and related methodology has ensured that regulatory
    fees are reasonably related to the benefits provided by the
    Commission's activities.[^31] In addition the existing
    classification and methodology retained herein has been proven to
    result in collecting the amount required by Congress in its annual
    appropriations for the Commission.[^32] Finally, as a practical
    matter, we do not have sufficient time available to modify the
    section 9 regulatory fee classification and methodology as proposed
    by NCTA and still comply with the 90-day congressional notification
    requirement before we start our regulatory fee collections in the
    August/September time frame. For these reasons, we decline to adopt
    the NCTA's proposals and instead retain the existing section 9
    regulatory fee classification and methodology for DBS at this time.

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

17. On April 27, 2006, the Commission adopted a framework for BRS/EBS
    regulatory fees in a BRS/EBS rulemaking.[^33] Briefly, the
    Commission adopted a MHz-based formula for BRS with tiered fees by
    markets, similar to our annual scale for broadcast television
    stations, but on a more simplified scale.[^34] As we proposed in the
    *FY 2006 NPRM*,[^35] we would not implement these changes in our FY
    2006 schedule of section 9 regulatory fees because the still-pending
    nature of the BRS/EBS rulemaking would not afford us with sufficient
    notice to do so. Accordingly, for FY 2006, BRS regulatory fees will
    be assessed using the rules currently in effect. For EBS, the
    Commission decided that section 9 regulatory fees should not be
    assessed on this service,[^36] which is consistent with our current
    policy of not assessing section 9 regulatory fees on ITFS
    (Instructional Television Fixed Service).

### International Bearer Circuits

18. On February 6, 2006, VSNL Telecommunications (US) Inc. (VSNL) filed
    a Petition for Rulemaking urging the Commission to modify the
    current International Bearer Circuit Fee rules and policies as
    applied to non-common carrier (*i.e.*, private) submarine cable
    operators.[^37] This Petition remains pending before the Commission,
    which issued a Public Notice designating the proceeding as RM-11312
    and requesting comment on the Petition.[^38] In the *FY 2006 NPRM*,
    we stated that the complex issues presented by the VSNL Petition
    warranted consideration separately from the Commission's annual
    regulatory fee proceeding process, and that any comments on these
    issues arising from the *FY 2006 NPRM* would be addressed with the
    record generated by the VSNL Petition.[^39] Apollo Submarine Cable
    System, Ltd. (Apollo), one of the parties that submitted comments on
    the VSNL Petition, also filed comments on the International Bearer
    Circuit Fee issue in response to the *FY 2006 NPRM*.[^40] In
    accordance with our stated intent in the *FY 2006 NPRM*, we
    incorporate Apollo's instant comments into the VSNL Petition
    proceeding, RM-11312.

## Clarifications

### Clarification Regarding When Section 9 Regulatory Fees are Collected

19. We continue to receive many inquiries each year from regulatees as
    to whether section 9 regulatory fees are collected in advance of our
    fiscal year, or whether they are collected in arrears. The
    Commission's fiscal year is the period of time from October 1
    through September 30.[^41] The Commission generally collects section
    9 regulatory fees in August and/or September toward the end of the
    fiscal year, and the Commission will maintain the same regulatory
    fee schedule in FY 2006.

### Effective Date of Payment of Multi-Year Wireless Fees 

20. The first eleven fee categories in our Attachment D, Schedule of
    Regulatory Fees, constitute a grouping known as "small wireless
    fees" for multi-year wireless fees.[^42] Regulatory fees for this
    grouping are generally paid in advance for the entire 5-year or
    10-year term of the license at the time that a renewal application
    (or application for a new license) is filed. Because these
    regulatory fees are paid when a renewal application (or application
    for a new license) is filed, these "small wireless fees" can be paid
    at any time during the fiscal year whenever the relevant application
    is filed. As a result, there has been some confusion as to whether
    the prior fiscal year (prior FY) or current fiscal year (current FY)
    rate applies when a renewal application (or application for a new
    license) is filed near the effective date of the current FY
    regulatory fees. The Commission clarified this matter in the *FY
    2005 R&O and Order on Reconsideration*[^43] and we provide further
    clarification below.

21. In general, the applicable fee is the one in effect as of the date
    that the relevant application is filed. Thus, the current FY
    regulatory fee is applicable if the official filing date of the
    application is on or after the effective date of the current fee.
    The current FY regulatory fees generally become effective 30 or 60
    days after publication of the regulatory fees Order in the *Federal
    Register*, or in some instances, 90 days after delivery of the Order
    to Congress. Generally, the \"effective date\" of the current fiscal
    year regulatory fees is published in a public notice soon after the
    Order is released.

22. We wish to clarify the applicable filing date for wireless licenses
    in the fee category above. The Commission's rules for renewal of
    wireless licenses provide that licensees may file their renewal
    applications, and thus make regulatory fee payments, no more than 90
    days prior to the expiration date of their licenses.[^44] For the
    small wireless fees categories, the regulatory fee rate that applies
    depends upon the filing date of the application, *i.e.*, the date
    that the application is electronically or manually filed with the
    Commission in accordance with the Commission's rules. However,
    applicants filing electronically have varying payment options that
    in some cases include the option to submit the payment manually with
    FCC Form 159. In this case, the applicant must submit payment so
    that it is received within 10 days of filing the application
    electronically. As a result, an application that is filed shortly
    before the new FY fee rate becomes effective may result in payment
    occurring after the new FY fee rate is effective. In such cases, the
    fee rate will be calculated based on the prior FY fee rate because
    the application was electronically filed before the effective date
    of the current FY fee rate.

### Clarification Regarding Experimental Licenses

23. It has come to our attention that some licensees mistakenly believe
    that they have a section 9 fee obligation for their experimental
    licenses. We clarify that holders of experimental licenses are not
    required to pay regulatory fees for such licenses. Any holder of an
    experimental license who has mistakenly paid a regulatory fee for
    such license may submit a refund request in accordance with the
    Commission's rules.[^45]

## Administrative and Operational Issues

24. In our *FY 2006 NPRM*, we invited 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, administrative and
    operational issues do impact the process of submitting fee payments.
    We sought general comment on ways to improve current processes. Mr.
    Kenneth J. Brown submitted comments on these issues, raising
    concerns over past practices regarding the accuracy of the
    Commission's billing of earth station non-payers. Mr. Brown states
    that last year the Commission erroneously sent licensees of
    recently-granted earth stations past-due bills for FY 2005
    regulatory fees despite that fact that those earth stations licenses
    were granted after October 1, 2004 (the effective date for FY 2005
    regulatory fees).[^46] Because of this, Mr. Brown urges the
    Commission not to act on its proposal to expand its pre-billing
    initiatives to the earth station service category.[^47]

25. In prior years the Commission's practice for issuing past-due bills
    was as follows. After the close of each annual regulatory fee
    collection cycle, we compared the FCC Registration Number (FRN) of
    those entities who paid with the total number of licensed entities
    in each fee service category and then sent those entities not having
    a record of payment a request for late payment or for information
    that clarifies their payment status.  For FY 2006, we have obtained
    from each licensing system the names of the entities that had been
    granted licenses on or before October 1, 2005, prior to the start of
    the regulatory fee collection cycle. Using this information, we
    anticipate improvements in the post-regulatory fee season billing
    process that addresses the problem noted by Mr. Brown. Also, this
    fiscal year we have opted not to expand our pre-billing initiatives
    to the earth station category nor to any other categories, due to
    logistical and resource constraints.

26. In his comments, Mr. Brown also states that he erroneously overpaid
    a regulatory fee obligation through Fee Filer and complains of the
    length of time it has taken for the Commission to process his refund
    request. Entities who do not receive a timely response to their
    refund request should call ARINQUIRES via the FCC Financial
    Operations Help Desk at 1-877-480-3201, Option 4, or email
    <ARINQUIRES@fcc.gov> to obtain a status update.

### Mandatory Use of Fee Filer

27. In our *FY 2006 NPRM*, we sought comment on the impact of
    instituting a mandatory usage requirement for our electronic Fee
    Filer software application for large-volume section 9 regulatory fee
    payers. We invited comments solely to establish a record on this
    topic, stating that any such requirement would not be put into
    effect until FY 2007 or later.[^48] We received no comments
    supporting such action, one comment unfavorable to the use of Fee
    Filer in general,[^49] and one comment requesting that, if Fee Filer
    usage becomes mandatory, cable television operators serving less
    than 5,000 subscribers should have the option to mail their
    regulatory fee payments instead of using Fee Filer.[^50] In view of
    the foregoing, we will not mandate use of our Fee Filer software for
    large-volume section 9 regulatory fee payers either in FY 2006 or
    FY 2007. We continue to encourage regulatees to use Fee Filer,
    especially those that would otherwise submit more than
    twenty-five (25) hardcopy Form 159-Cs.

### Proposals for Notification and Collection of Regulatory Fees

28. In this section, we sought 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 will 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 Help Desk at (877) 480-3201, Option 4.

29. 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 select fee categories
    discussed below.[^51] 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

30. 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.[^52]
    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. In the *FY 2006* *NPRM*, we sought
    comment on this billing initiative and ways to improve it. We
    received no comments or reply comments on our ITSP billing
    initiative, and will therefore continue our ITSP, Form 159-W,
    billing initiative in FY 2006.

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

31. 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.

32. In the *FY 2006* *NPRM*, we sought comment on this billing
    initiative and on ways to improve it. We received no comments or
    reply comments on the satellite billing initiative, and will
    therefore continue our practice of billing GSO and NGSO satellite
    space station fee categories for FY 2006. We emphasize that the
    bills that we 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.

#### Additional Service Categories for Billing or Assessing

33. We initially explored the feasibility of expanding our FY 2006
    section 9 regulatory fee billing initiatives to include three
    additional service categories: Earth Stations, Cable Television
    Relay Service Stations (CARS), and the Local Multipoint Distribution
    Service (LMDS). We did not receive any comments supporting the
    billing of these three additional categories, and therefore will not
    pursue these additional billing initiatives in this fiscal year.

#### Media Services Licensees \-- Assessed

34. 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 received no comments or reply comments to
    improve our assessment initiative for media services licensees.
    Therefore, we will continue our postcard initiative in the manner
    originally planned for FY 2006.[^53]

35. Consistent with the procedures we used last year, we will 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 be furnished 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.[^54]

36. In the past, some media services licensees have mistakenly mailed
    their postcards back to the Commission stapled to payment checks. We
    emphasize that 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. If the licensee does not
    submit a completed Form 159 along with its fee payment, we will not
    be able to guarantee that a licensee's regulatory fee payment will
    be posted accurately to the licensee's account.

37. 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. If the
    facility ID number is not provided, we will not be able to guarantee
    that a licensee's regulatory fee payment will be posted accurately
    to the licensee's account.

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

38. In FY 2004, the Commission began using telephone number data from
    the Numbering Resource Utilization Forecast (NRUF) form to assess
    regulatory fees on CMRS providers. Specifically, telephone number
    data is used to determine the number of subscribers upon which a
    regulatory fee assessment will be based. In both FY 2004 and FY
    2005, we sought and received comments and reply comments from
    licensees that helped us to improve the CMRS cellular/mobile
    assessment process. For FY 2006, we again solicited, but did not
    receive, any comments or reply comments regarding the use of
    telephone number data to determine the subscriber count of CMRS
    providers. We continue to find telephone numbers to be a reliable,
    accurate method for determining subscriber counts for regulatory fee
    purposes. Based on our review of FY 2005 results, the Commission
    first assessed regulatory fees on 184.7 million numbers. The
    adjustment process resulted in a minor reduction of only 0.2
    percent, or approximately 0.3 million telephone numbers. Therefore,
    as in prior years,[^55] we will send an assessment letter to CMRS
    providers using telephone number data based on the Numbering
    Resource Utilization Forecast (NRUF) form, which includes a list of
    the carrier's Operating Company Telephone Numbers (OCNs) upon which
    the assessment is based.[^56] 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 will also 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.

39. 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 in the letter) 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.

40. 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 as calculated using telephone
    number data from the NRUF report. 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.

41. 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 will include porting information
    (*e.g.*, information on the number of "ports in" and "ports out") in
    our "initial" assessment letter so that licensees can account for
    any differences between the telephone number data submitted in their
    NRUF report and the Commission's assessment count.

42. Although an initial and a final assessment letter will be mailed to
    carriers that have filed an NRUF form, some carriers may not be sent
    any letters of assessment because they did not file the NRUF form.
    These carriers should compute their fee payment using the standard
    methodology[^57] 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 themselves, 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.

43. In summary, we will (1) derive the subscriber count from NRUF
    telephone data based on "assigned" telephone 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 the subscriber count listed
    on the initial assessment letter, and (3) require carriers to
    confirm their subscriber counts on an aggregate basis using
    telephone number data in the NRUF report.

#### Cable Television Subscribers \-- Assessed

44. We adopt our proposal to generate fee assessment letters for the
    cable television industry consistent with the process the Commission
    used in FY 2005. We received one reply comment from the American
    Cable Association supporting the Commission's initiative "to send
    out the fee assessment letters and emails to remind cable operators
    of their fee payment obligations."[^58] Under our proposal, we will
    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, and request that they access a
    Commission-authorized web site to provide their aggregate basic
    cable subscriber count as of December 31, 2005. Also, as an
    additional means of notifying cable television regulatees of their
    section 9 regulatory fee payment obligations for FY 2006, we will
    send an e-mail reminder to all operators that have an e-mail address
    populated in the Media Bureau's Cable Operations and Licensing
    System (COALS).

45. 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,
    thereby certifying the subscriber count 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 at (877) 480-3201, Option 4 to
    provide their subscriber count as of December 31, 2005.

46. 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.

47. We will also 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 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.

### Streamlined Regulatory Fee Payment Process for CMRS Providers

48. We proposed in our *FY 2006 NPRM* to permit CMRS Cellular, Mobile,
    and Messaging service providers 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. Because we are requiring CMRS
    Cellular/Mobile providers to use the aggregate subscriber totals
    from their Numbering Resource Utilization Forecast report
    (NRUF),[^59] netted for porting, it would be consistent for
    providers to pay their subscriber totals at the aggregate level as
    well without having to associate subscriber counts with their
    individual call signs. We received one comment from the American
    Association of Paging Carriers supporting the Commission's effort to
    eliminate the requirement of having to allocate the subscriber count
    with their respective call signs.[^60] We believe that eliminating
    this requirement will improve the Commission's efficiency in
    processing regulatory fee payments, as well as reduce the
    administrative burden on licensees during the payment process. As a
    result, we eliminate the requirement for CMRS providers to identify
    their individual call signs when making their regulatory fee payment
    if they pay their regulatory fees at the aggregate subscriber level.

# PROCEDURAL MATTERS

## Payment of Regulatory Fees

### De Minimis Fee Payment Liability

49. 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

50. 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.[^61] 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.[^62]

### Limitations on Credit Card Transactions

51. The U.S. Treasury has advised the Commission that it will reject
    Credit Card transactions greater than \$99,999.99 from a single
    credit card in a single day. The U.S. Treasury has published
    Bulletin No. 2005-03 in which Federal Agencies are directed to limit
    credit card collections per these rules. The Commission will
    institute policies to conform to the U.S. Treasury policy. Entities
    needing to remit amounts of \$100,000.00 or greater should use
    check, ACH or Fed Wire payment methods. Additional information can
    be found at <http://www.fcc.gov/fees>.

## Enforcement

52. 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.

53. 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.[^63] 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).

## Final Paperwork Reduction Act of 1995 Analysis

54. This *Report and Order* 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).

## Congressional Review Act Analysis

55. The Commission will send a copy of this *Report and Order in MD
    Docket No. 06-68* in a report to be sent to Congress and the General
    Accountability Office pursuant to the Congressional Review Act,
    *see* 5 U.S.C. 801(a)(1)(A).

# ORDERING CLAUSES

56. Accordingly, IT IS ORDERED pursuant to sections 4(i) and (j), 9, and
    303(r) of the Communications Act of 1934, as amended, 47 U.S.C. §§
    154(i), 154(j), 159, and 303(r) that the FY 2006 section 9
    regulatory fee assessment requirements ARE ADOPTED as specified
    herein.

57. IT IS FURTHER ORDERED that Part 1 of the Commission's Rules ARE
    AMENDED as set forth in Attachment H, and the these Rules shall
    become effective 30 days after publication in the [Federal
    Register]{.underline}.

58. IT IS FURTHER ORDERED that the Commission's Consumer and
    Governmental Affairs Bureau, Reference Information Center, SHALL
    SEND a copy of this *Report and Order in MD Docket No. 06-68*,
    including the Final Regulatory Flexibility Analysis, to the Chief
    Counsel for Advocacy of the U.S. Small Business Administration.

59. IT IS FURTHER ORDERED that this proceeding is
    [TERMINATED]{.underline}.

> FEDERAL COMMUNICATIONS COMMISSION

Marlene H. Dortch

Secretary

**ATTACHMENT A**

**FINAL REGULATORY FLEXIBILITY ANALYSIS**

1.  As required by the Regulatory Flexibility Act (RFA),[^64] the
    Commission prepared an Initial Regulatory Flexibility Analysis
    (IRFA) of the possible significant economic impact on small entities
    by the policies and rules proposed in its *Notice of Proposed
    Rulemaking, In the Matter of Assessment and Collection of Regulatory
    Fees for Fiscal Year 2006*.[^65] Written public comments were sought
    on the FY 2006 fees proposal, including comments on the IRFA. This
    present Final Regulatory Flexibility Analysis (FRFA) conforms to the
    RFA.[^66]

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

60. This rulemaking proceeding is initiated to amend the Schedule of
    Regulatory Fees in the amount of \$298,771,000, the amount that
    Congress has required the Commission to recover, which includes the
    collection of an additional \$10,000,000 by the Commission to
    contribute toward the Nation's debt reduction in fiscal year 2006.
    The Commission seeks to collect the necessary amount through its
    revised Schedule of Regulatory Fees in the most efficient manner
    possible and without undue public burden.

**II. Summary of Significant Issues Raised by Public Comments in
Response to the IRFA:**

61. None.

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

62. 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, herein adopted.[^67]
    The RFA generally defines the term "small entity" as having the same
    meaning as the terms "small business," "small organization," and
    "small governmental jurisdiction."[^68] In addition, the term "small
    business" has the same meaning as the term "small business concern"
    under the Small Business Act.[^69] 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.[^70]

63. **Small Businesses**. Nationwide, there are a total of 22.4 million
    small businesses, according to SBA data.[^71]

64. **Small Organizations**. Nationwide, there are approximately 1.6
    million small organizations.[^72]

65. **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."[^73] As of 1997, there were
    approximately 87,453 governmental jurisdictions in the United
    States.[^74] 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.

66. 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."[^75] 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.[^76] 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.

67. **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.[^77] According
    to Commission data,[^78] 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 these rules.

68. **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.[^79] According to Commission data,[^80] 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 these rules.

69. **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.[^81] According to Commission data,[^82] 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 these rules.

70. **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.[^83] According to Commission data,[^84] 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 these rules.

71. **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.[^85] According to Commission data,[^86] 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 these rules.

72. **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.[^87] According to Commission
    data,[^88] 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 these rules.

73. **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.[^89] According to Commission data,[^90] 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 these rules.

74. **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.[^91] According to Commission data,[^92] 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 these rules.

75. **800 and 800-Like Service Subscribers**.[^93] 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.[^94]
    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.[^95] 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.

76. **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.[^96] 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.[^97] 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.

77. 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."[^98] According to Census Bureau data for
    1997, there were 439 firms in this category that operated for the
    entire year.[^99] 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.

78. **Wireless Service Providers**. The SBA has developed a small
    business size standard for wireless firms within the two broad
    economic census categories of "Paging"[^100] and "Cellular and Other
    Wireless Telecommunications." [^101] 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.[^102] 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.[^103] 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.[^104] 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.[^105] Thus, under this second category and
    size standard, the great majority of firms can, again, be considered
    small.

79. **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."[^106] Under the SBA
    size standard, such a business is small if it has average annual
    receipts of \$21 million or less.[^107] According to Census Bureau
    data for 1997, there were 2,751 firms in this category that operated
    for the entire year.[^108] 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.[^109] Thus, under this size
    standard, the great majority of firms can be considered small
    entities.

80. **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."[^110]
    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.[^111] 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.[^112] 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.[^113] We have estimated that 427 of these are
    small, under the SBA small business size standard.[^114]

81. **Common Carrier Paging**. The SBA has developed a small business
    size standard for wireless firms within the broad economic census
    categories of "Paging."[^115] 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.[^116] 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.[^117] Thus, under this category and
    associated small business size standard, the great majority of firms
    can be considered small.

82. 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.[^118] 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.[^119] The SBA has approved this definition.[^120] 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.[^121] Fifty-seven companies claiming small
    business status won 440 licenses.[^122] 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.[^123] 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. [^124] Currently, there
    are approximately 74,000 Common Carrier Paging licenses. According
    to the most recent *Trends in Telephone Service*, 608 private and
    common carriers reported that they were engaged in the provision of
    either paging or "other mobile" services.[^125] Of these, we
    estimate that 589 are small, under the SBA-approved small business
    size standard.[^126] We estimate that the majority of common carrier
    paging providers would qualify as small entities under the SBA
    definition.

83. **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.[^127] The SBA has approved these definitions.[^128]
    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.

84. **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.[^129] Under the SBA small business size standard, a
    business is small if it has 1,500 or fewer employees.[^130]
    According to the most recent *Trends in Telephone Service* data, 719
    carriers reported that they were engaged in wireless
    telephony.[^131] We have estimated that 427 of these are small under
    the SBA small business size standard.

85. **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.[^132] 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.[^133] These small business size standards, in the context of
    broadband PCS auctions, have been approved by the SBA.[^134] 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.[^135] On March 23, 1999, the Commission
    reauctioned 155 C, D, E, and F Block licenses; there were 113 small
    business winning bidders.[^136]

86. 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.[^137] 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.

87. **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.[^138] Through these auctions, the Commission
    awarded a total of 41 licenses, 11 of which were obtained by four
    small businesses.[^139] 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.[^140] 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.[^141] 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.[^142] The SBA has approved these small business size
    standards.[^143] 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.[^144] Three of these claimed
    status as a small or very small entity and won 311 licenses.

88. **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.[^145] 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.[^146] 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.[^147] 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.[^148] The SBA has approved these small size
    standards.[^149] 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. [^150] 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.[^151] 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.[^152]

89. **Upper 700 MHz Band Licenses**. The Commission released a *Report
    and Order*, authorizing service in the upper 700 MHz band.[^153]
    This auction, previously scheduled for January 13, 2003, has been
    postponed.[^154]

90. **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.[^155] 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.[^156] 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.[^157] SBA approval of these definitions is not
    required.[^158] An auction of 52 Major Economic Area (MEA) licenses
    commenced on September 6, 2000, and closed on September 21,
    2000.[^159] 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.[^160]

91. **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. [^161] 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.[^162] The
    SBA has approved these small business size standards for the 900 MHz
    Service.[^163] 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.[^164] 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.[^165]

92. 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.[^166] 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.[^167] 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.

93. 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.

94. **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.[^168] 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.[^169] 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.

95. **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.[^170] 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.[^171] 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.[^172] The SBA has approved these small size
    standards.[^173] Auctions of Phase II licenses commenced on
    September 15, 1998, and closed on October 22, 1998.[^174] 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.[^175] 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.[^176] 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.[^177]

96. **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.[^178] 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.[^179]

97. The Commission's 1994 Annual Report on PLMRs[^180] 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.

98. **Fixed Microwave Services**. Fixed microwave services include
    common carrier,[^181] private operational-fixed,[^182] and broadcast
    auxiliary radio services.[^183] 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.[^184] 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 adopted herein. We noted, however, that the
    common carrier microwave fixed licensee category includes some large
    entities.

99. **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.[^185] 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.[^186] The SBA has approved these small business size
    standards.[^187] 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 adopted herein.

100. **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.[^188] 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.[^189] 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.[^190] The SBA has approved these small business size
     standards in the context of LMDS auctions.[^191] 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.

101. **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).[^192] 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.[^193] 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.[^194] 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.[^195] The SBA has approved
     of these definitions.[^196] 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.

102. **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.[^197] 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.[^198] These definitions have been approved
     by the SBA.[^199] 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.

103. **Rural Radiotelephone Service**. The Commission has not adopted a
     size standard for small businesses specific to the Rural
     Radiotelephone Service.[^200] A significant subset of the Rural
     Radiotelephone Service is the Basic Exchange Telephone Radio System
     (BETRS).[^201] 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.[^202] There are approximately 1,000 licensees in the Rural
     Radiotelephone Service, and the Commission estimates that there are
     500 or fewer small entity licensees in the Rural Radiotelephone
     Service that may be affected by the rules and policies adopted
     herein.

104. **Air-Ground Radiotelephone Service**. The Commission has not
     adopted a small business size standard specific to the Air-Ground
     Radiotelephone Service.[^203] 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.[^204] There are fewer than 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.

105. **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.[^205]
     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.[^206] 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.

106. **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.[^207] There is presently
     one licensee 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.[^208] Under that SBA small business
     size standard, a business is small if it has 1,500 or fewer
     employees.[^209]

107. **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.[^210] "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.[^211] The SBA has approved of these
     definitions.[^212] 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.[^213] Seven winning bidders claimed status as small or
     very small businesses and won 611 licenses.

108. 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.[^214] 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.

109. **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.[^215] According to U.S. Census Bureau data
     for 1997, there were 977 firms in this category, total, that
     operated for the entire year.[^216] 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.[^217] 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[^218] 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.

110. 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.[^219] "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.[^220] The SBA has approved these
     definitions.[^221] The Commission will not know how many licensees
     will be small or very small businesses until the auction, if
     required, is held.

111. **Multipoint Distribution Service (now known as Broadband Radio
     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).[^222] 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.[^223] The SBA has approved
     of this standard.[^224] The MDS auction resulted in 67 successful
     bidders obtaining licensing opportunities for 493 Basic Trading
     Areas (BTAs).[^225] 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.[^226]

112. In addition, the SBA has developed a small business size standard
     for Cable and Other Program Distribution,[^227] which includes all
     such companies generating \$12.5 million or less in annual
     receipts.[^228] 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.[^229] 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.[^230] Consequently, we estimate that the majority of
     providers in this service category are small businesses that may be
     affected by the rules and policies, herein adopted.

113. 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.[^231]
     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.

114. **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.[^232] Business
     concerns included in this industry are those "primarily engaged in
     broadcasting images together with sound."[^233] According to
     Commission staff review of the BIA Publications, Inc. Master Access
     Television Analyzer Database as of May 16, 2003, about 814 of the
     1,370 commercial television stations (December 31, 2005) 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[^234] 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 2,145 low power television stations
     (LPTV).[^235] Given the nature of this service, we will presume
     that all LPTV licensees qualify as small entities under the SBA
     definition.

115. 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.

116. **Radio Broadcasting**. The SBA defines a radio broadcast entity
     that has \$6 million or less in annual receipts as a small
     business.[^236] Business concerns included in this industry are
     those "primarily engaged in broadcasting aural programs by radio to
     the public.[^237] 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 10,988 commercial radio stations
     (December 31, 2005) 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[^238] are included.[^239] Our estimate, therefore
     likely overstates the number of small businesses that might be
     affected by our action.

117. **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.[^240]

118. The Commission estimates that there are approximately 3,995 FM
     translators and boosters.[^241] 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. [^242]

119. **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.[^243] 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.[^244]
     Of this total, 1,180 firms had annual receipts of under \$10
     million and an additional 52 firms had receipts of \$10 million or
     more but less than \$25 million. Consequently, the Commission
     estimates that the majority of providers in this service category
     are small businesses that may be affected by the rules and
     policies, herein adopted.

120. **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.[^245] The most recent
     estimates indicate that there were 1,439 cable operators who
     qualified as small cable system operators at the end of 1995.[^246]
     Since then, some of those companies may have grown to serve over
     400,000 subscribers, and others may have been involved in
     transactions that caused them to be combined with other cable
     operators. Consequently, the Commission estimates that there are
     now fewer than 1,439 small entity cable system operators that may
     be affected by the rules and policies, herein adopted.

121. **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."[^247]
     The Commission has determined that there are 63,000,000 subscribers
     in the United States.[^248] 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.[^249] Based on available data, the Commission estimates
     that the number of cable operators serving 630,000 subscribers or
     fewer, totals 1,450.[^250] The Commission neither requests nor
     collects information on whether cable system operators are
     affiliated with entities whose gross annual revenues exceed \$250
     million,[^251] 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.

122. **Open Video Services**. Open Video Service (OVS) systems provide
     subscription services.[^252] The SBA has created a small business
     size standard for Cable and Other Program Distribution.[^253] 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.[^254] 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, herein adopted.

123. **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.[^255] 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.[^256] 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.[^257] Thus, under this
     standard, we estimate that the majority of providers in this
     service category are small businesses that may be affected by the
     rules and policies, herein adopted.

124. **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.[^258] Accordingly,
     there are no licensees in this service.

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

126. **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.[^259]
     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.[^260] 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.

127. **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.[^261] 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).[^262] 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.[^263] 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
     rules adopted herein.

128. **Public Safety Radio Services**. Public Safety radio services
     include police, fire, local government, forestry conservation,
     highway maintenance, and emergency medical services.[^264] There
     are a total of approximately 127,540 licensees in these services.
     Governmental entities[^265] 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.[^266]

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

129. 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.[^267] Interstate telephone service
     providers must compute their annual regulatory fee based on their
     interstate and international end-user revenue using information
     they already supply to the Commission in compliance with the Form
     499-A, Telecommunications Reporting Worksheet, and they must
     complete and submit the FCC Form 159. Compliance with the fee
     schedule will require some licensees to tabulate the number of
     units (*e.g.*, cellular telephones, pagers, cable TV subscribers)
     they have in service, and complete and submit an FCC Form 159.
     Licensees ordinarily will keep a list of the number of units they
     have in service as part of their normal business practices. No
     additional outside professional skills are required to complete the
     FCC Form 159, and it can be completed by the employees responsible
     for an entity\'s business records.

130. 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.

131. 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.[^268] If payment is not received, new
     or pending applications may be dismissed, and existing
     authorizations may be subject to rescission.[^269] 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.[^270]
     Nonpayment of regulatory fees is a debt owed the United States
     pursuant to 31 U.S.C. 3711 *et seq.*, and the Debt Collection
     Improvement Act of 1996, Public Law 194-134. Appropriate
     enforcement measures as well as administrative and judicial
     remedies, may be exercised by the Commission. Debts owed to the
     Commission may result in a person or entity being denied a federal
     loan or loan guarantee pending before another federal agency until
     such obligations are paid.[^271]

132. 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.[^272] 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:**

133. The RFA requires an agency to describe any significant alternatives
     that it has considered in reaching its proposed approach, which may
     include the following four alternatives: (1) the establishment of
     differing compliance or reporting requirements or timetables that
     take into account the resources available to small entities; (2)
     the clarification, consolidation, or simplification of compliance
     or reporting requirements under the rule for small entities; (3)
     the use of performance, rather than design, standards; and (4) an
     exemption from coverage of the rule, or any part thereof, for small
     entities. As described in Section III of this FRFA, *supra*, we
     have created procedures in which all fee-filing licensees and
     regulatees use a single form, FCC Form 159, and have described in
     plain language the general filing requirements. We have sought
     comment on other alternatives that might simplify our fee
     procedures or otherwise benefit small entities, while remaining
     consistent with our statutory responsibilities in this proceeding.

134. 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.[^273] As noted, we sought comment on the proposed
     methodology for implementing these statutory requirements and any
     other potential impact of these proposals on small entities.

135. 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
     using in this *Report and Order* minimizes this impact by limiting
     the amount of increase and shifting costs to other services which,
     for the most part, are larger entities.

136. Several categories of licensees and regulatees are exempt from
     payment of regulatory fees. *See, e.g.,* footnote 204, *supra.*

137. [Report to Small Business Administration]{.underline}: The
     Commission will send a copy of this *Report and Order*, including a
     copy of the FRFA to the Chief Counsel for Advocacy of the Small
     Business Administration. The *Report and Order* and FRFA (or
     summaries thereof) will also be published in the *Federal
     Register*.

138. [Report to Congress]{.underline}: The Commission will send a copy
     of this FRFA, along with this *Report and Order*, in a report to
     Congress pursuant to the Congressional Review Act, 5 U.S.C. §
     801(a)(1)(A).

**ATTACHMENT B**

**SOURCES OF PAYMENT UNIT ESTIMATES FOR FY 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), Consolidated Database System (CDBS), and
the Cable Operations and Licensing System (COALS), 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 derived from CDBS, as
                           adjusted for exemptions, and actual FY 2005
                           payment units.

  UHF/VHF Television       Based on data listed in the 2006 Edition of
  Stations                 the [Television & Cable Factbook]{.underline},
                           as well as actual FY 2005 payment units.

  AM/FM/TV Construction    Based on estimates derived from CDBS, as well
  Permits                  as actual FY 2005 payment units.

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

  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 industry estimates of subscriber
  Subscribers              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     | * | 2005   | -Rated | mputed | *Rou | cted** |
| tegory** | Payment  | Y | R      | FY     | New FY | nded |        |
|          | Units**  | e | evenue | 2006   | 2006   | N    | **FY   |
|          |          | a | Esti   | R      | Regu   | ew** | 2006** |
|          |          | r | mate** | evenue | latory |      |        |
|          |          | s |        | Requ   | Fee**  | **FY | **Rev  |
|          |          | * |        | ire-me |        | 20   | enue** |
|          |          | * |        | nt\*** |        | 06** |        |
|          |          |   |        |        |        |      |        |
|          |          |   |        |        |        | *    |        |
|          |          |   |        |        |        | *Reg |        |
|          |          |   |        |        |        | ula- |        |
|          |          |   |        |        |        | tory |        |
|          |          |   |        |        |        | F    |        |
|          |          |   |        |        |        | ee** |        |
+==========+==========+===+========+========+========+======+========+
| PLMRS    | 2,200    | 1 | 3      | 3      | 18     | 20   | 4      |
| (E       |          | 0 | 70,000 | 93,725 |        |      | 40,000 |
| xclusive |          |   |        |        |        |      |        |
| Use)     |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| PLMRS    | 25,000   | 1 | 2,3    | 2,4    | 10     | 10   | 2,5    |
| (Shared  |          | 0 | 00,000 | 47,482 |        |      | 00,000 |
| use)     |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| M        | 2,000    | 1 | 1,5    | 1,6    | 83     | 85   | 1,7    |
| icrowave |          | 0 | 60,000 | 60,031 |        |      | 00,000 |
+----------+----------+---+--------+--------+--------+------+--------+
| 218-219  | 3        | 1 | 1,500  | 1,596  | 53     | 55   | 1,650  |
| MHz      |          | 0 |        |        |        |      |        |
| (        |          |   |        |        |        |      |        |
| Formerly |          |   |        |        |        |      |        |
| IVDS)    |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| Marine   | 8,000    | 1 | 7      | 7      | 9      | 10   | 8      |
| (Ship)   |          | 0 | 00,000 | 44,886 |        |      | 00,000 |
+----------+----------+---+--------+--------+--------+------+--------+
| GMRS     | 17,000   | 5 | 5      | 5      | 7      | 5    | 4      |
|          |          |   | 25,000 | 58,664 |        |      | 25,000 |
+----------+----------+---+--------+--------+--------+------+--------+
| Aviation | 6,000    | 1 | 3      | 3      | 7      | 5    | 3      |
| (A       |          | 0 | 70,000 | 93,725 |        |      | 00,000 |
| ircraft) |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| Marine   | 600      | 1 | 1      | 1      | 18     | 20   | 1      |
| (Coast)  |          | 0 | 00,000 | 06,412 |        |      | 20,000 |
+----------+----------+---+--------+--------+--------+------+--------+
| Aviation | 1,500    | 1 | 1      | 1      | 9      | 10   | 1      |
| (Ground) |          | 0 | 20,000 | 27,695 |        |      | 50,000 |
+----------+----------+---+--------+--------+--------+------+--------+
| Amateur  | 8,500    | 1 | 1      | 1      | 2.08   | 2.08 | 1      |
| Vanity   |          | 0 | 66,443 | 77,116 |        |      | 77,116 |
| Call     |          |   |        |        |        |      |        |
| Signs    |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| AM Class | 69       | 1 | 2      | 2      | 3,145  | 3    | 2      |
| A        |          |   | 02,950 | 17,032 |        | ,150 | 17,350 |
+----------+----------+---+--------+--------+--------+------+--------+
| AM Class | 1,612    | 1 | 2,4    | 2,6    | 1,637  | 1    | 2,6    |
| B        |          |   | 67,600 | 38,824 |        | ,625 | 19,500 |
+----------+----------+---+--------+--------+--------+------+--------+
| AM Class | 950      | 1 | 8      | 9      | 969    | 970  | 9      |
| C        |          |   | 60,400 | 20,102 |        |      | 21,500 |
+----------+----------+---+--------+--------+--------+------+--------+
| AM Class | 1,769    | 1 | 2,8    | 3,0    | 1,738  | 1    | 3,0    |
| D        |          |   | 74,625 | 74,092 |        | ,750 | 95,750 |
+----------+----------+---+--------+--------+--------+------+--------+
| FM       | 3,068    | 1 | 6,0    | 6,5    | 2,125  | 2    | 6,5    |
| Classes  |          |   | 13,875 | 18,302 |        | ,125 | 19,500 |
| A, B1 &  |          |   |        |        |        |      |        |
| C3       |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| FM       | 2,908    | 1 | 7,3    | 7,9    | 2,726  | 2    | 7,9    |
| Classes  |          |   | 33,425 | 25,998 |        | ,725 | 24,300 |
| B, C,    |          |   |        |        |        |      |        |
| C0, C1 & |          |   |        |        |        |      |        |
| C2       |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| AM       | 95       | 1 | 35,030 | 37,461 | 394    | 395  | 37,525 |
| Cons     |          |   |        |        |        |      |        |
| truction |          |   |        |        |        |      |        |
| Permits  |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| FM       | 200      | 1 | 2      | 1      | 575    | 575  | 1      |
| Cons     |          |   | 67,300 | 15,000 |        |      | 15,000 |
| truction |          |   |        |        |        |      |        |
| Pe       |          |   |        |        |        |      |        |
| rmits^1^ |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| S        | 123      | 1 | 1      | 1      | 1,150  | 1    | 1      |
| atellite |          |   | 32,225 | 41,400 |        | ,150 | 41,450 |
| TV       |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| S        | 3        | 1 | 1,605  | 1,716  | 572    | 570  | 1,710  |
| atellite |          |   |        |        |        |      |        |
| TV       |          |   |        |        |        |      |        |
| Cons     |          |   |        |        |        |      |        |
| truction |          |   |        |        |        |      |        |
| Permit   |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| VHF      | 44       | 1 | 2,6    | 2,8    | 64,769 | 64   | 2,8    |
| Markets  |          |   | 64,925 | 49,841 |        | ,775 | 50,100 |
| 1-10     |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| VHF      | 61       | 1 | 2,7    | 2,9    | 47,775 | 47   | 2,9    |
| Markets  |          |   | 25,175 | 14,272 |        | ,775 | 14,275 |
| 11-25    |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| VHF      | 75       | 1 | 2,3    | 2,4    | 32,877 | 32   | 2,4    |
| Markets  |          |   | 05,800 | 65,797 |        | ,875 | 65,625 |
| 26-50    |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| VHF      | 116      | 1 | 2,2    | 2,3    | 20,451 | 20   | 2,3    |
| Markets  |          |   | 18,400 | 72,332 |        | ,450 | 72,200 |
| 51-100   |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| VHF      | 208      | 1 | 9      | 1,0    | 5,017  | 5    | 1,0    |
| R        |          |   | 75,875 | 43,590 |        | ,025 | 45,200 |
| emaining |          |   |        |        |        |      |        |
| Markets  |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| VHF      | 9        | 1 | 28,575 | 30,558 | 3,395  | 3    | 30,600 |
| Cons     |          |   |        |        |        | ,400 |        |
| truction |          |   |        |        |        |      |        |
| Permits  |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| UHF      | 89       | 1 | 1,6    | 1,8    | 20,745 | 20   | 1,8    |
| Markets  |          |   | 82,100 | 46,288 |        | ,750 | 46,750 |
| 1-10     |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| UHF      | 80       | 1 | 1,3    | 1,5    | 19,100 | 19   | 1,5    |
| Markets  |          |   | 84,475 | 28,011 |        | ,100 | 28,000 |
| 11-25    |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| UHF      | 117      | 1 | 1,1    | 1,2    | 10,969 | 10   | 1,2    |
| Markets  |          |   | 55,750 | 83,415 |        | ,975 | 84,075 |
| 26-50    |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| UHF      | 168      | 1 | 9      | 1,0    | 6,496  | 6    | 1,0    |
| Markets  |          |   | 92,250 | 91,308 |        | ,500 | 92,000 |
| 51-100   |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| UHF      | 187      | 1 | 3      | 3      | 1,786  | 1    | 3      |
| R        |          |   | 12,225 | 33,890 |        | ,775 | 31,925 |
| emaining |          |   |        |        |        |      |        |
| Markets  |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| UHF      | 19       | 1 | 1      | 33,725 | 1,775  | 1    | 33,725 |
| Cons     |          |   | 92,950 |        |        | ,775 |        |
| truction |          |   |        |        |        |      |        |
| Pe       |          |   |        |        |        |      |        |
| rmits^1^ |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| B        | 24,000   | 1 | 2      | 2      | 11     | 10   | 2      |
| roadcast |          |   | 50,000 | 67,347 |        |      | 40,000 |
| Aux      |          |   |        |        |        |      |        |
| iliaries |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| LP       | 2,900    | 1 | 1,1    | 1,2    | 422    | 420  | 1,2    |
| TV/Trans |          |   | 45,500 | 24,985 |        |      | 18,000 |
| -lators/ |          |   |        |        |        |      |        |
| Boosters |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| CARS     | 850      | 1 | 1      | 1      | 176    | 175  | 1      |
| Stations |          |   | 39,500 | 49,180 |        |      | 48,750 |
+----------+----------+---+--------+--------+--------+------+--------+
| Cable TV | 63       | 1 | 46,8   | 50,0   | 0.794  | 0.79 | 49,7   |
| Systems  | ,000,000 |   | 00,000 | 47,394 |        |      | 70,000 |
|          |          |   |        |        |        |      |        |
|          | sub      |   |        |        |        |      |        |
|          | scribers |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| In       | \$53,100 | 1 | 131,2  | 140,3  | 0.00   | 0.0  | 140,1  |
| terstate | ,000,000 |   | 20,000 | 25,193 | 264266 | 0264 | 84,000 |
| Tele-    |          |   |        |        |        |      |        |
| commu    |          |   |        |        |        |      |        |
| nication |          |   |        |        |        |      |        |
| Service  |          |   |        |        |        |      |        |
| P        |          |   |        |        |        |      |        |
| roviders |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| CMRS     | 210      | 1 | 39,3   | 42,5   | 0.203  | 0.20 | 42,0   |
| Mobile   | ,000,000 |   | 80,000 | 47,534 |        |      | 00,000 |
| Services |          |   |        |        |        |      |        |
| (Cellula | sub      |   |        |        |        |      |        |
| r/Public | scribers |   |        |        |        |      |        |
| Mobile)  |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| CMRS     | 6        | 1 | 8      | 5      | 0.08   | 0.08 | 5      |
| M        | ,500,000 |   | 96,000 | 23,167 |        |      | 20,000 |
| essaging |          |   |        |        |        |      |        |
| Services | sub      |   |        |        |        |      |        |
|          | scribers |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| BRS^2^   | 1,767    | 1 | 4      | 4      | 277    | 275  | 4      |
|          |          |   | 59,000 | 89,416 |        |      | 85,925 |
| LMDS     | 330      | 1 |        |        | 277    | 275  |        |
|          |          |   | 84,150 | 91,422 |        |      | 90,750 |
+----------+----------+---+--------+--------+--------+------+--------+
| Inter    | 5        | 1 | 7,2    | 7,7    | 1.47   | 1.47 | 7,7    |
| national | ,300,000 |   | 61,000 | 64,832 |        |      | 91,000 |
| Bearer   |          |   |        |        |        |      |        |
| Circuits |          |   |        |        |        |      |        |
|          |          |   |        |        |        |      |        |
| 64kb     |          |   |        |        |        |      |        |
| circuits |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| Inter    | 1        | 1 | 1,800  | 1,925  | 1,925  | 1    | 1,925  |
| national |          |   |        |        |        | ,925 |        |
| Public   |          |   |        |        |        |      |        |
| Fixed    |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| Earth    | 3,500    | 1 | 6      | 7      | 213    | 215  | 7      |
| Stations |          |   | 97,000 | 45,364 |        |      | 52,500 |
+----------+----------+---+--------+--------+--------+------+--------+
| Inter    | 5        | 1 | 3,825  | 4,090  | 818    | 820  | 4,100  |
| national |          |   |        |        |        |      |        |
| HF       |          |   |        |        |        |      |        |
| B        |          |   |        |        |        |      |        |
| roadcast |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| Space    | 87       | 1 | 9,0    | 9,6    | 1      | 111  | 9,6    |
| Stations |          |   | 65,925 | 94,998 | 11,437 | ,425 | 93,975 |
| (Geosta  |          |   |        |        |        |      |        |
| tionary) |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| Space    | 6        | 1 | 6      | 7      | 1      | 120  | 7      |
| Stations |          |   | 74,550 | 21,356 | 20,226 | ,225 | 21,350 |
| (N       |          |   |        |        |        |      |        |
| on-Geost |          |   |        |        |        |      |        |
| ationary |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| \*\*     |          |   | 281,1  | 300,5  |        |      | 299,6  |
| \*\*\*\* |          |   | 18,728 | 92,490 |        |      | 24,101 |
| Total    |          |   |        |        |        |      |        |
| E        |          |   |        |        |        |      |        |
| stimated |          |   |        |        |        |      |        |
| Revenue  |          |   |        |        |        |      |        |
| to be    |          |   |        |        |        |      |        |
| C        |          |   |        |        |        |      |        |
| ollected |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| \*\*     |          |   | 280,0  | 298,7  |        |      | 298,7  |
| \*\*\*\* |          |   | 98,000 | 71,000 |        |      | 71,000 |
| Total    |          |   |        |        |        |      |        |
| Revenue  |          |   |        |        |        |      |        |
| Req      |          |   |        |        |        |      |        |
| uirement |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+
| Di       |          |   | 1,0    | 1,8    |        |      | 8      |
| fference |          |   | 20,728 | 21,490 |        |      | 53,101 |
| ^4^      |          |   |        |        |        |      |        |
+----------+----------+---+--------+--------+--------+------+--------+

\* 1.066665953 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)). The factor also includes an additional \$10 million to be
collected to reduce the Nation's debt per section 3013 of Public Law
109-171.

^1^ The FM Construction Permit 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, which was reduced to
\$575 for FM Construction Permits and \$1,775 for UHF Construction
Permits.

^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)*.

^3^ The "FY 2005 Revenue Estimate" column was adjusted for the FM
Construction Permit service category from \$53,900 to \$267,300 to
reflect the correct percentage revenue allocation for this service
category before the 6.67% increase in fees was applied. In this same
column and for the same reason, the UHF Construction Permit service
category was adjusted from \$53,475 to \$192,950.

^4^ Because of rounding, there are differences in the "Expected FY 2006
Revenue" column between the "Total Estimated Revenue to be Collected"
and the "Total Revenue Requirement."

**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)   | 20          |
+--------------------------------------------------------+-------------+
| Microwave (per license) (47 CFR part 101)              | 85          |
+--------------------------------------------------------+-------------+
| 218-219 MHz (Formerly Interactive Video Data Service)  | 55          |
| (per license) (47 CFR part 95)                         |             |
+--------------------------------------------------------+-------------+
| Marine (Ship) (per station) (47 CFR part 80)           | 10          |
+--------------------------------------------------------+-------------+
| Marine (Coast) (per license) (47 CFR part 80)          | 20          |
+--------------------------------------------------------+-------------+
| 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 | 2.08        |
| 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      | 275         |
| license) (47 CFR part 27)                              |             |
|                                                        | 275         |
| Local Multipoint Distribution Service (per call sign)  |             |
| (47 CFR, part 101)                                     |             |
+--------------------------------------------------------+-------------+
| AM Radio Construction Permits                          | 395         |
+--------------------------------------------------------+-------------+
| FM Radio Construction Permits                          | 575         |
+--------------------------------------------------------+-------------+
| TV (47 CFR part 73) VHF Commercial                     |             |
+--------------------------------------------------------+-------------+
| Markets 1-10                                           | 64,775      |
+--------------------------------------------------------+-------------+
| Markets 11-25                                          | 47,775      |
+--------------------------------------------------------+-------------+
| Markets 26-50                                          | 32,875      |
+--------------------------------------------------------+-------------+
| Markets 51-100                                         | 20,450      |
+--------------------------------------------------------+-------------+
| Remaining Markets                                      | 5,025       |
+--------------------------------------------------------+-------------+
| Construction Permits                                   | 3,400       |
+--------------------------------------------------------+-------------+
| TV (47 CFR part 73) UHF Commercial                     |             |
+--------------------------------------------------------+-------------+
| Markets 1-10                                           | 20,750      |
+--------------------------------------------------------+-------------+
| Markets 11-25                                          | 19,100      |
+--------------------------------------------------------+-------------+
| Markets 26-50                                          | 10,975      |
+--------------------------------------------------------+-------------+
| Markets 51-100                                         | 6,500       |
+--------------------------------------------------------+-------------+
| Remaining Markets                                      | 1,775       |
+--------------------------------------------------------+-------------+
| Construction Permits                                   | 1,775       |
+--------------------------------------------------------+-------------+
| Satellite Television Stations (All Markets)            | 1,150       |
+--------------------------------------------------------+-------------+
| Construction Permits -- Satellite Television Stations  | 570         |
+--------------------------------------------------------+-------------+
| Low Power TV, Class A TV, TV/FM Translators & Boosters | 420         |
| (47 CFR part 74)                                       |             |
+--------------------------------------------------------+-------------+
| Broadcast Auxiliaries (47 CFR part 74)                 | 10          |
+--------------------------------------------------------+-------------+
| CARS (47 CFR part 78)                                  | 175         |
+--------------------------------------------------------+-------------+
| Cable Television Systems (per subscriber) (47 CFR part | .79         |
| 76)                                                    |             |
+--------------------------------------------------------+-------------+
| Interstate Telecommunication Service Providers (per    | .00264      |
| revenue dollar)                                        |             |
+--------------------------------------------------------+-------------+
| Earth Stations (47 CFR part 25)                        | 215         |
+--------------------------------------------------------+-------------+
| Space Stations (per operational station in             | 111,425     |
| geostationary orbit) (47 CFR part 25) also includes    |             |
| DBS Service (per operational station) (47 CFR part     |             |
| 100)                                                   |             |
+--------------------------------------------------------+-------------+
| Space Stations (per operational system in              | 120,225     |
| non-geostationary orbit) (47 CFR part 25)              |             |
+--------------------------------------------------------+-------------+
| International Bearer Circuits (per active 64KB         | 1.47        |
| circuit)                                               |             |
+--------------------------------------------------------+-------------+
| International Public Fixed (per call sign) (47 CFR     | 1,925       |
| part 23)                                               |             |
+--------------------------------------------------------+-------------+
| International (HF) Broadcast (47 CFR part 73)          | 820         |
+--------------------------------------------------------+-------------+

**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    | 500   | 400  | 475  | 575       | 750      |
| *\<=25,000** |        |       |      |      |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **25,001 --  | 1,225  | 950   | 600  | 725  | 1,150     | 1,325    |
| 75,000**     |        |       |      |      |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **75,001 --  | 1,850  | 1,200 | 800  | 1    | 1,575     | 2,450    |
| 150,000**    |        |       |      | ,200 |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **150,001 -- | 2,775  | 2,025 | 1    | 1    | 2,450     | 3,200    |
| 500,000**    |        |       | ,200 | ,425 |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **500,001 -- | 4,000  | 3,100 | 2    | 2    | 3,875     | 4,700    |
| 1,200,000**  |        |       | ,000 | ,375 |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **1,200,001  | 6,150  | 4,750 | 3    | 3    | 6,325     | 7,500    |
| --           |        |       | ,000 | ,800 |           |          |
| 3,000,00**   |        |       |      |      |           |          |
+--------------+--------+-------+------+------+-----------+----------+
| **\          | 7,375  | 5,700 | 3    | 4    | 8,050     | 9,750    |
| >3,000,000** |        |       | ,800 | ,750 |           |          |
+--------------+--------+-------+------+------+-----------+----------+

**ATTACHMENT E**

**FACTORS, MEASUREMENTS AND CALCULATIONS THAT DETERMINE STATION CONTOURS
AND 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.[^274] 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[^275]. 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.[^276] 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 |           |          |
+--------------+--------+-------+------+------+-----------+----------+

**ATTACHMENT G**

**[Parties Filing Comments on the Notice of Proposed
Rulemaking]{.underline}**

American Association of Paging Carriers ("AAPC")

Apollo Submarine Cable System Ltd. ("Apollo")

Blooston, Mordkofsky, Dickens, Duffy & Prendergast ("BloostonLaw")

Kenneth J. Brown ("Brown")

National Cable & Telecommunications Association ("NCTA")

USA Mobility, Inc. ("USA Mobility")

**[Parties Filing Reply Comments]{.underline}**

American Cable Association ("ACA")

DIRECTV, Inc. and EchoStar Satellite ("DirecTV & Echostar")

**[Parties Filing a Notice of Oral Ex Parte Presentation]{.underline}**

National Cable & Telecommunications Association ("NCTA")

DIRECTV, Inc. and EchoStar Satellite ("DirecTV & Echostar")

**ATTACHMENT H**

**RULE CHANGES**

Part 1 of Title 47 of the Code of Federal Regulations is amended to read
as follows:

**PART 1 -- PRACTICE AND PROCEDURE**

1.  The authority citation for Part 1 continues to read as follows:

Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, 303, 309.

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

§ 1.1152 Schedule of annual regulatory fees and filing locations for
wireless radio services.

**Exclusive use services (per license) Fee Amount** [^277] **Address**

**1. Land Mobile (Above 470**

**MHz and 220 MHz Local,**

**Base Station & SMRS)**

**(47 CFR, Part 90)**

a)New, Renew/Mod \$20.00 FCC

(FCC 601 & 159) P.O. Box 358130

Pittsburgh, PA

15251-5130

b\) New, Renew/Mod \$20.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

> c)Renewal Only \$20.00 FCC

(FCC 601 & 159) P.O. Box 358245

Pittsburgh, PA

15251-5245

d)Renewal Only \$20.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

**220 MHz Nationwide** \$20.00 FCC

a)New, Renew/Mod P.O. Box 358130

(FCC 601 & 159) Pittsburgh, PA

15251-5130

b)New, Renew/Mod \$20.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

> c)Renewal Only \$20.00 FCC

(FCC 601 & 159) P.O. Box 358245

Pittsburgh, PA

15251-5245

d)Renewal Only \$20.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

**2. Microwave (47 CFR Pt. 101) (Private)**

a)New, Renew/Mod \$85.00 FCC

(FCC 601 & 159) P.O. Box 358130

Pittsburgh, PA

15251-5130

b)New, Renew/Mod \$85.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

> c)Renewal Only \$85.00 FCC

(FCC 601 & 159) P.O. Box 358245

Pittsburgh, PA

15251-5245

d)Renewal Only \$85.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

**3. 218-219 MHz Service**

a)New, Renew/Mod \$55.00 FCC

(FCC 601 & 159) P.O. Box 358130

Pittsburgh, PA

15251-5130

b)New, Renew/Mod \$55.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

> c)Renewal Only \$55.00 FCC

(FCC 601 & 159) P.O. Box 358245

Pittsburgh, PA

15251-5245

d)Renewal Only \$55.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

**4. Shared Use Services**

**Land Mobile (Frequencies**

**Below 470 MHz -- except**

**220 MHz)**

a)New, Renew/Mod \$10.00 FCC

(FCC 601 & 159) P.O. Box 358130

Pittsburgh, PA

15251-5130

b\) New, Renew/Mod \$10.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

c)Renewal Only \$10.00 FCC

(FCC 601 & 159) P.O. Box 358245

Pittsburgh, PA

15251-5245

d)Renewal Only \$10.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

**General Mobile Radio Service**

a)New, Renew/Mod \$5.00 FCC

(FCC 605 & 159) P.O. Box 358130

Pittsburgh, PA

15251-5130

b)New, Renew/Mod \$5.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 605 & 159) Pittsburgh, PA

15251-5994

c)Renewal Only \$5.00 FCC

(FCC 605 & 159) P.O. Box 358245

Pittsburgh, PA

15251-5245

> d)Renewal Only \$5.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 605 & 159) Pittsburgh, PA

15251-5994

**Rural Radio (Part 22)**

a)New, Additional Facility, \$10.00 FCC

Major Renew/Mod P.O. Box 358994

(Electronic Filing) Pittsburgh, PA

(FCC 601 & 159) 15251-5994

b)Renewal, Minor Renew/Mod \$10.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

**Marine Coast**

a)New Renewal/Mod \$20.00 FCC

(FCC 601 & 159) P.O. Box 358130

Pittsburgh, PA

15251-5130

b)Renewal Only \$20.00 FCC

(FCC 601 & 159) P.O. Box 358245

Pittsburgh, PA

15251-5245

> c)Renewal Only \$20.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

**Aviation Ground**

a)New, Renewal/Mod \$10.00 FCC

(FCC 601 & 159) P.O. Box 358130

Pittsburgh, PA

15251-5130

b)Renewal Only \$10.00 FCC

(FCC 601 & 159) P.O. Box 358245

Pittsburgh, PA

15251-5245

c)Renewal Only \$10.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 601 & 159) Pittsburgh, PA

15251-5994

**Marine Ship**

a)New, Renewal/Mod \$10.00 FCC

(FCC 605 & 159) P.O. Box 358130

Pittsburgh, PA

15251-5130

b)New, Renewal/Mod \$10.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 605 & 159) Pittsburgh, PA

15251-5994

c)Renewal Only \$10.00 FCC

(FCC 605 & 159) P.O. Box 358245

Pittsburgh, PA

15251-5245

d)Renewal Only \$10.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 605 & 159) Pittsburgh, PA

15251-5994

**Aviation Aircraft**

a)New, Renew/Mod \$5.00 FCC

(FCC 605 & 159) P.O. Box 358130

Pittsburgh, PA

15251-5130

b)New, Renew/Mod \$5.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 605 & 159) Pittsburgh, PA

15251-5994

c)Renewal Only \$5.00 FCC

(FCC 605 & 159) P.O. Box 358245

Pittsburgh, PA

15251-5245

d)Renewal Only \$5.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC 605 & 159) Pittsburgh, PA

15251-5994

**5. Amateur Vanity Call Signs** \$2.08 FCC

a)Initial or Renew P.O. Box 358130

(FCC 605 & 159) Pittsburgh, PA

15251-5130

b)Initial or Renew \$2.08 FCC

(Electronic Filing) P.O. Box 358994

(FCC 605 & 159) Pittsburgh, PA

15251-5994

**6. CMRS Mobile Services** \$ .20[^278] FCC

**(per unit)** P.O. Box 358835

(FCC 159) Pittsburgh, PA

15251-5835

**7. CMRS Messaging Services** \$ .08[^279] FCC

**(per unit)** P.O. Box 358835

(FCC 159) Pittsburgh, PA

15251-5835

**8. Broadband Radio Service** \$ 275 FCC, Multipoint

(formerly MMDS and MDS) P.O. Box 358835

Pittsburgh, PA

15251-5835

**9. Local Multipoint Distribution Service** \$ 275 FCC, Multipoint

P.O. Box 358835

Pittsburgh, PA

15251-5835

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

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

**Radio \[AM and FM\] (47 CFR, Part 73) Fee Amount Address**

1\. [AM Class A]{.underline}

\<=25,000 population \$625 FCC, Radio

25,001-75,000 population \$1,225 P.O. Box 358835

75,001-150,000 population \$1,850 Pittsburgh, PA

150,001-500,000 population \$2,775 15251-5835

500,001-1,200,000 population \$4,000

1,200,001-3,000,000 population \$6,150

\>3,000,000 population \$7,375

2\. [AM Class B]{.underline}

\<=25,000 population \$500

25,001-75,000 population \$950

75,001-150,000 population \$1,200

150,001-500,000 population \$2,025

500,001-1,200,000 population \$3,100

1,200,001-3,000,000 population \$4,750

\>3,000,000 population \$5,700

3\. [AM Class C]{.underline}

\<=25,000 population \$400

25,001-75,000 population \$600

75,001-150,000 population \$800

150,001-500,000 population \$1,200

500,001-1,200,000 population \$2,000

1,200,001-3,000,000 population \$3,000

\>3,000,000 population \$3,800

4\. [AM Class D]{.underline}

\<=25,000 population \$475

25,001-75,000 population \$725

75,001-150,000 population \$1,200

150,001-500,000 population \$1,425

500,001-1,200,000 population \$2,375

1,200,001-3,000,000 population \$3,800

\>3,000,000 population \$4,750

5\. AM Construction Permit \$395

6\. [FM Classes A, B1 and C3]{.underline}

\<=25,000 population \$575

25,001-75,000 population \$1,150

75,001-150,000 population \$1,575

150,001-500,000 population \$2,450

500,001-1,200,000 population \$3,875

1,200,001-3,000,000 population \$6,325

\>3,000,000 population \$8,050

7\. [FM Classes B, C, C0, C1 and C2]{.underline}

\<=25,000 population \$750

25,001-75,000 population \$1,325

75,001-150,000 population \$2,450

150,001-500,000 population \$3,200

500,001-1,200,000 population \$4,700

1,200,001-3,000,000 population \$7,500

\>3,000,000 population \$9,750

8\. FM Construction Permits \$575

**TV (47 CFR, Part 73)**

**VHF Commercial**

1\. Markets 1 thru 10 \$64,775 FCC, TV Branch

2\. Markets 11 thru 25 \$47,775 P.O. Box 358835

3\. Markets 26 thru 50 \$32,875 Pittsburgh, PA

4\. Markets 51 thru 100 \$20,450 15251-5835

5\. Remaining Markets \$ 5,025

6\. Construction Permits \$ 3,400

**UHF Commercial**

1\. Markets 1 thru 10 \$20,750 FCC,UHFCommercial

2\. Markets 11 thru 25 \$19,100 P.O. Box 358835

3\. Markets 26 thru 50 \$10,975 Pittsburgh, PA

4\. Markets 51 thru 100 \$ 6,500 15251-5835

5\. Remaining Markets \$ 1,775

6\. Construction Permits \$ 1,775

**Satellite UHF/VHF Commercial**

1\. All Markets \$1,150 FCC Satellite TV

2\. Construction Permits \$ 570 P.O. Box 358835

Pittsburgh, PA

15251-5835

**Low Power TV, Class A TV, TV/FM** \$ 420 FCC, Low Power

**Translator,& TV/FM Booster** P.O. Box 358835

**(47 CFR Part 74)** Pittsburgh, PA

15251-5835

**Broadcast Auxiliary** \$ 10 FCC, Auxiliary

P.O. Box 358835

Pittsburgh, PA

15251-5835

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

§ 1.1154 Schedule of annual regulatory charges and filing locations for
common carrier services.

**Radio Facilities Fee Amount Address**

1\. Microwave (Domestic Public Fixed) \$85.00 FCC

(Electronic Filing) P.O. Box 358994

(FCC Form 601 & 159) Pittsburgh, PA

15251-5994

**Carriers**

1\. Interstate Telephone Service Providers \$ .00264 FCC, Carriers

(per interstate and international end-user P.O. Box 358835

revenues (see FCC Form 499-A) Pittsburgh, PA

15251-5835

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

§ 1.1155 Schedule of regulatory fees and filing locations for cable
television services.

**Fee Amount Address**

1\. Cable Television Relay Service \$175 FCC, Cable

2\. Cable TV System \$ .79 P.O. Box 358835

(per subscriber) Pittsburgh, PA

15251-5835

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

§ 1.1156 Schedule of regulatory fees and filing locations for
international services.

**Radio Facilities Fee Amount Address**

1\. International (HF) \$820 FCC, International

Broadcast P.O. Box 358835

Pittsburgh, PA

15251-5835

2\. International Public \$1,925 FCC, International

Fixed P.O. Box 358835

Pittsburgh, PA

15251-5835

**Space Stations** \$111,425 FCC, Space Stations

**(Geostationary Orbit)** P.O. Box 358835

Pittsburgh, PA

15251-5835

**Space Stations** \$120,225 FCC, Space Stations

**(Non-Geostationary Orbit)** P.O. Box 358835

Pittsburgh, PA

15251-5835

**Earth Stations** \$215 FCC, Earth Station

Transmit/Receive & P.O. Box 358835

Transmit Only (per authorization or registration) Pittsburgh, PA

15251-5835

**Carriers**

International Bearer Circuits \$ 1.47 FCC, International

(per active 64KB circuit or equivalent) P.O. Box 358835

Pittsburgh, PA

15251-5835

7\. Section 1.1162 is amended by revising paragraphs (e) through (h) to
read as follows:

§1.1162 (e) from:

\(e\) Applicants, permittees or licensees of noncommercial educational
broadcast stations in the FM or TV services, as well as AM applicants,
permittees or licensees operating in accordance with § 73.503 of this
chapter.

to:

\(e\) Applicants, permittees or licensees of noncommercial educational
(NCE) broadcast stations in the FM or TV services, as well as AM
applicants, permittees or licensees operating in accordance with §
73.503 of this chapter.

§1.1162 (f) from:

\(f\) Applicants, permittees, or licensees qualifying under paragraph
(e) of this section requesting Commission authorization in any other
mass media radio service (except the international broadcast (HF)
service), wireless radio service, common carrier radio service, or
international radio service requiring payment of a regulatory fee, if
the service is used in conjunction with their noncommercial educational
broadcast station on a noncommercial educational basis.

to:

\(f\) Applicants, permittees, or licensees qualifying under paragraph
(e) of this section requesting Commission authorization in any other
mass media radio service (except the international broadcast (HF)
service), wireless radio service, common carrier radio service, or
international radio service requiring payment of a regulatory fee, if
the service is used in conjunction with their NCE broadcast station on
an NCE basis.

§1.1162 (g) from:

\(g\) Other applicants, permittees or licensees providing, or proposing
to provide, a noncommercial educational or instructional service, but
not qualifying under paragraph (e) of this section, may be exempt from
regulatory fees, or be entitled to a refund, in the following
circumstances:

> \(1\) The applicant, permittee or licensee is an organization that,
> like the Public Broadcasting Service or National Public Radio,
> receives funding directly or indirectly through the Public
> Broadcasting Fund, 47 U.S.C. 396(k), distributed by the Corporation
> for Public Broadcasting, where the authorization requested will be
> used in conjunction with the organization on a noncommercial
> educational basis;
>
> \(2\) An applicant, permittee or licensee of a translator or low power
> television station operating or proposing to operate a noncommercial
> educational service who, after grant, provides proof that it has
> received funding for the construction of the station through the
> National Telecommunications and Information Administration (NTIA) or
> other showings as required by the Commission; or
>
> \(3\) An applicant, permittee, or licensee provided a fee refund under
> Sec. 1.1160 and operating as a noncommercial education station, is
> exempt from fees for broadcast auxiliary stations (subparts D, E, and
> F of part 74 of this chapter) or stations in the wireless radio,
> common carrier, or international services where such authorization is
> to be used in conjunction with the noncommercial educational
> translator or low power station.

to:

\(g\) Other applicants, permittees or licensees providing, or proposing
to provide, a NCE or instructional service, but not qualifying under
paragraph (e) of this section, may be exempt from regulatory fees, or be
entitled to a refund, in the following circumstances:

> \(1\) The applicant, permittee or licensee is an organization that,
> like the Public Broadcasting Service or National Public Radio,
> receives funding directly or indirectly through the Public
> Broadcasting Fund, 47 U.S.C. 396(k), distributed by the Corporation
> for Public Broadcasting, where the authorization requested will be
> used in conjunction with the organization on an NCE basis;
>
> \(2\) An applicant, permittee or licensee of a translator or low power
> television station operating or proposing to operate an NCE service
> who, after grant, provides proof that it has received funding for the
> construction of the station through the National Telecommunications
> and Information Administration (NTIA) or other showings as required by
> the Commission; or
>
> \(3\) An applicant, permittee, or licensee provided a fee refund under
> Sec. 1.1160 and operating as an NCE station, is exempt from fees for
> broadcast auxiliary stations (subparts D, E, F, and G of part 74 of
> this chapter) or stations in the wireless radio, common carrier, or
> international services where such authorization is to be used in
> conjunction with the NCE translator or low power station.

§1.1162 (h) from:

\(h\) An applicant, permittee or licensee that is the licensee of an
instructional television fixed station (§§ 74.901 through 74.996 of this
chapter) is exempt from regulatory fees where the authorization
requested will be used by the applicant in conjunction with the
provision of the instructional service.

to:

\(h\) An applicant, permittee or licensee that is the licensee in the
Educational Broadband Service (EBS) (formerly, Instructional Television
Fixed Service (ITFS)) (Parts 27 and 74, *e.g.*, §§ 27.1200, *et seq.*,
and 74.832(b), of this chapter) is exempt from regulatory fees where the
authorization requested will be used by the applicant in conjunction
with the provision of the EBS.

**CONCURRING STATEMENT OF**

**COMMISSIONER MICHAEL J. COPPS**

*Re: Assessment and Collection of Regulatory Fees for Fiscal Year 2006,
Report and Order in MD Docket No 06-68*

I concur in today's item to emphasize my long-held and oft-repeated
belief that the Commission should consider opening a rulemaking to
address the adjustment of regulatory fees pursuant to section 9(b)(3) of
the Act. In a rapidly-evolving communications marketplace, we need to
look for ways to ensure that our regulatory fee methodologies continue
to reflect the industries we regulate.

**STATEMENT OF**

**COMMISSIONER JONATHAN ADELSTEIN**

**APPROVING IN PART, CONCURRING IN PART**

*Re: Assessment and Collection of Regulatory Fees for Fiscal Year 2006,
Report and Order in MD Docket No. 06-68*

As in years past, I must concur to portions of our Regulatory Fee Order
because I remain troubled with the Commission's inability and reluctance
to consider changes that undoubtedly occur from time to time in the
costs of regulatory fees for individual services. I encourage the
Commission to continue to improve its regulatory fee assessment
processes so that in the future we are more able to make these
adjustments as appropriate.

[^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]: *See* Assessment and Collection of Regulatory Fees for Fiscal Year
    2006, *Notice of Proposed Rulemaking*, 71 FR 17410 at ¶ 3 (April 6,
    2006) (*FY 2006 NPRM*).

[^4]: We were required to collect \$280,098,000 in FY 2005. We are
    required to collect \$298,771,000 in FY 2006, which is an increase
    of approximately 6.67 percent. Note that the required increase of
    approximately 6.67 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 for
    individual service categories is sometimes increased by a number
    other than 6.67 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.

[^5]: 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*.

[^6]: 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.

[^7]: 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.

[^8]: *See* *FY 2006 NPRM*, ¶ 7.

[^9]: Comments received from the American Association of Paging Carriers
    (AAPC), the law firm of Blooston, Mordkofsky, Dickens, Duffy &
    Pendergast, LLP (BloostonLaw), and USA Mobility, Inc.

[^10]: BloostonLaw notes the paging industry's requirement to contribute
    to the Universal Service Fund, the Telecommunications Relay Service
    (TRS) fund, the Local Number Portability (LNP) fund, and the North
    American Numbering Plan Administration (NANPA) fund. *See*
    BloostonLaw Comments at 3.

[^11]: *See* Assessment and Collection of Regulatory Fees for Fiscal
    Year 2005, *Report and Order and Order on Reconsideration*, 20 FCC
    Rcd 12259, 12264 ¶ 5 (2005) (*FY 2005 R&O and Order on
    Reconsideration*).

[^12]: *See* 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*).
    *See also* FY 2005 Comments of NCTA and FY 2005 Comments of ACA.

[^13]: Since the inception of the Commission's regulatory fee program,
    we have assessed section 9 regulatory fees on cable operators using
    a per-subscriber approach, which is consistent with the original
    (1994) statute. By contrast, section 9 regulatory fee assessments
    for DBS providers are based on a per-license approach, which is also
    consistent with the Commission's permitted amendment to the statute
    that took place in 1996.

[^14]: 47 U.S.C. § 159(b)(3)*.* In addition, 47 U.S.C. § 159(b)(4)
    requires that if the Commission revises its fee schedule based upon
    Commission rulemaking proceedings or changes in law, it must provide
    Congress with 90 days notice before such an amendment of the fee
    schedule can be implemented. *See* 47 U.S.C. § 159(b)(4).

[^15]: *See* 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
    Reconsideration*).

[^16]: *See* Assessment and Collection of Regulatory Fees for Fiscal
    Year 2006, *Notice of Proposed Rulemaking*, 71 FR 17410 at ¶ 8
    (April 6, 2006) (*FY 2006 NPRM*).

[^17]: *See* Assessment and Collection of Regulatory Fees for Fiscal
    Year 2006, *Notice of Proposed Rulemaking*, at ¶ 8.

[^18]: NCTA Comments at 2.

[^19]: NCTA Comments at 8.

[^20]: NCTA Comments at 8.

[^21]: NCTA Comments at 8.

[^22]: NCTA Comments at 9.

[^23]: ACA Comments at 2.

[^24]: ACA Comments at 2.

[^25]: DirecTV and Echostar Reply Comments at 1 and fn.1.

[^26]: DirecTV and Echostar Reply Comments at 1 and 2.

[^27]: Section 9(b)(3) states: "In making such amendments, the
    Commission shall add, delete, or reclassify services in the Schedule
    to reflect additions, deletions, or changes in the nature of its
    services as a consequence of Commission rulemaking proceedings or
    changes in law." DirecTV & Echostar do not provide a citation for
    their interpretation of this provision.

[^28]: DirecTV and Echostar Reply Comments at 3 and 4.

[^29]: DirecTV & Echostar Reply Comments at 4.

[^30]: DirecTV & Echostar Reply Comments at 4.

[^31]: 47 U.S.C. § 159 (b)(1)(A)

[^32]: 47 U.S.C. § 159 (b)(1)(B)

[^33]: *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.*, *Order on
    Reconsideration and Fifth Memorandum Opinion and Order and Third
    Memorandum Opinion and Order and Second Report and Order*, FCC
    06-46, ¶¶ 367-376 (rel. April 27, 2006) (*BRS/EBS Second Report and
    Order*).

[^34]: *See id*., ¶ 376.

[^35]: *See* *FY 2006 NPRM*, 71 FR at 17412 ¶ 9 (April 6, 2006)
    (proposed not to implement in the FY 2006 schedule of section 9
    Regulatory Fees any changes that might be adopted in the BRS/EBS
    proceeding).

[^36]: *See BRS/EBS Second Report and Order* at ¶ 373.

[^37]: *See* Petition for Rulemaking of VSNL Telecommunications (US)
    Inc., RM-11312 (filed February 6, 2006).

[^38]: *See* Consumer and Governmental Affairs Bureau, Reference
    Information Center, *Public Notice,* Report No. 2759 (released
    February 15, 2006).

[^39]: *See* *FY 2006 NPRM* at footnote 20.

[^40]: *See* Apollo Comment at 2 and at footnote 6.

[^41]: By way of example, our Fiscal Year 2006 began on October 1, 2005
    and runs through September 30, 2006.

[^42]: *See* 47 CFR § 1.1152 (note 1). "Small fees are collected in
    advance for the entire license term. Therefore, the annual fee
    amount shown in this table that is a small fee . . . must be
    multiplied by the 5- or 10-year license term, as appropriate to
    arrive at the total amount of the regulatory fees owed . . . ."

[^43]: *FY 2005 R&0 and Order on Reconsideration* at ¶ 26.

[^44]: *See* 47 CFR § 1.949(a).

[^45]: See 47 C.F.R. §§1.1160(d), 1.1162. Refund requests should be sent
    via surface mail to: Federal Communications Commission, Office of
    the Managing Director, 445 12^th^ Street, S.W, Room 1-A625,
    Washington, DC 20554, Attention: Regulatory Fee Refund Request.

[^46]: Comments of Kenneth J. Brown at 1-2.

[^47]: Comments of Kenneth J. Brown at 1.

[^48]: *FY 2006 NPRM* at ¶ 11.

[^49]: Comments of Kenneth J. Brown at 3.

[^50]: American Cable Association (ACA) Comments at 6.

[^51]: 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* 47 C.F.R. §§ 1.1161(c),
    1.1164(f)(5), and 1.1910.

[^52]: 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.

[^53]: 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.

[^54]: The Commission-authorized web site for media services licensees
    is http://www.fccfees.com.

[^55]: *See FY 2005 R&O and Order on Reconsideration*, 20 FCC Rcd 12259,
    12264 ¶¶ 38-44.

[^56]: As described below, the NRUF figure will be adjusted for porting.

[^57]: Federal Communications Commission, *Regulatory Fees Fact Sheet:
    What You Owe - Commercial Wireless Services for FY 2005* at 1 (rel.
    July 2005). (http://www.fcc.gov/fees/regfees.html)

[^58]: Reply comments from the American Cable Association at 6.

[^59]: For more information on our proposed regulatory fee assessment
    initiative for CMRS providers this fiscal year, *see* *also* Section
    II.C.2.e. of this *Report and Order*.

[^60]: Comments of American Association of Paging Carriers at 3.

[^61]: 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.

[^62]: 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 2005* at 3 (rel. July 2005) (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)).

[^63]: *See* 47 CFR §§ 1.1161(c), 1.1164(f)(5), and 1.1910.

[^64]: 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).

[^65]: *See* Assessment and Collection of Regulatory Fees for Fiscal
    Year 2006, *Notice of Proposed Rulemaking*, 71 FR 17410 at ¶ 7
    (April 6, 2006) (*FY 2006 NPRM*).

[^66]: 5 U.S.C. § 604.

[^67]: 5 U.S.C. § 603(b)(3).

[^68]: 5 U.S.C. § 601(6).

[^69]: 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."

[^70]: 15 U.S.C. § 632.

[^71]: *See* SBA, Programs and Services, SBA Pamphlet No. CO-0028, at
    page 40 (July 2002).

[^72]: Independent Sector, The New Nonprofit Almanac & Desk Reference
    (2002).

[^73]: 5 U.S.C. § 601(5).

[^74]: U.S. Census Bureau, *Statistical Abstract of the United States*:
    2000, Section 9, pages 299-300, Tables 490 and 492.

[^75]: 15 U.S. C. § 632.

[^76]: 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).

[^77]: 13 C.F.R. § 121.201, North American Industry Classification
    System (NAICS) code 517110 (changed from 513310 in October 2002).

[^78]: 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.

[^79]: 13 C.F.R. § 121.201, NAICS code 517110 (changed from 513310 in
    October 2002).

[^80]: "*Trends in Telephone Service*" at Table 5.3.

[^81]: 13 C.F.R. § 121.201, NAICS code 517310 (changed from 513330 in
    October 2002).

[^82]: "*Trends in Telephone Service*" at Table 5.3.

[^83]: 13 C.F.R. § 121.201, NAICS code 517310 (changed to 513330 in
    October 2002).

[^84]: "*Trends in Telephone Service*" at Table 5.3.

[^85]: 3 C.F.R. § 121.201, NAICS code 517110 (changed from 513310 in
    October 2002).

[^86]: "*Trends in Telephone Service*" at Table 5.3.

[^87]: 13 C.F.R. § 121.201, NAICS code 517110 (changed from 513310 in
    October 2002).

[^88]: "*Trends in Telephone Service*" at Table 5.3.

[^89]: 13 C.F.R. § 121.201, NAICS code 517110 (changed from 513310 in
    October 2002).

[^90]: "*Trends in Telephone Service*" at Table 5.3.

[^91]: 13 C.F.R. § 121.201, NAICS code 517310 (changed from 513330 in
    October 2002).

[^92]: "*Trends in Telephone Service*" at Table 5.3.

[^93]: We include all toll-free number subscribers in this category,
    including those for 888 numbers.

[^94]: 13 C.F.R. § 121.201, NAICS code 517310 (changed from 513330 in
    October 2002).

[^95]: 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).

[^96]: 13 CFR. § 121.201, NAICS codes 517410 and 517910 (changed from
    513340 and 513390 in October 2002).

[^97]: 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).

[^98]: Office of Management and Budget, North American Industry
    Classification System, page 513 (1997) (NAICS code 513390, changed
    to 517910 in October 2002).

[^99]: 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).

[^100]: 13 C.F.R. § 121.201, NAICS code 513321 (changed to 517211 in
    October 2002).

[^101]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^102]: 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).

[^103]: 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."

[^104]: 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).

[^105]: 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."

[^106]: 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).

[^107]: 13 C.F.R. § 121.201, NAICS code 518111.

[^108]: 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).

[^109]: 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).

[^110]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^111]: U.S. Census Bureau, 1997 Economic Census, Subject Series:
    "Information," Table 5, Employment Size of Firms Subject to Federal
    Income Tax: 1997, NAICS code 513322 (issued October 2000).

[^112]: U.S. Census Bureau, 1997 Economic Census, Subject Series:
    "Information," Table 5, Employment Size of Firms Subject to Federal
    Income Tax: 1997, NAICS code 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."

[^113]: 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.

[^114]: 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.

[^115]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^116]: 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).

[^117]: 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."

[^118]: 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).

[^119]: Paging Second Report and Order, 12 FCC Rcd at 2811, para. 179.

[^120]: *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.

[^121]: *See* "929 and 931 MHz Paging Auction Closes," Public Notice, 15
    FCC Rcd 4858 (WTB 2000).

[^122]: *See* "929 and 931 MHz Paging Auction Closes," Public Notice, 15
    FCC Rcd 4858 (WTB 2000).

[^123]: *See* "Lower and Upper Paging Band Auction Closes," Public
    Notice, 16 FCC Rcd 21821 (WTB 2002).

[^124]: *See* "Lower and Upper Paging Bands Auction Closes," Public
    Notice, 18 FCC Rcd 11154 (WTB 2003).

[^125]: *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).

[^126]: 13 C.F.R. § 121.201, NAICS code 517211.

[^127]: 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).

[^128]: *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.

[^129]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^130]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^131]: 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.

[^132]: *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).

[^133]: *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.

[^134]: *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.

[^135]: FCC News, "Broadband PCS, D, E and F Block Auction Closes," No.
    71744 (released January 14, 1997).

[^136]: *See* "C, D, E, and F Block Broadband PCS Auction Closes,"
    *Public Notice*, 14 FCC Rcd 6688 (WTB 1999).

[^137]: *See* "C and F Block Broadband PCS Auction Closes; Winning
    Bidders Announced," *Public Notice*, 16 FCC Rcd 2339 (2001).

[^138]: 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).

[^139]: *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).

[^140]: 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).

[^141]: 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).

[^142]: 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).

[^143]: *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.

[^144]: *See* "Narrowband PCS Auction Closes," *Public Notice*, 16 FCC
    Rcd 18663 (WTB 2001).

[^145]: *See* Reallocation and Service Rules for the 698-746 MHz
    Spectrum Band (Television Channels 52-59), *Report and Order*, 17
    FCC Rcd 1022 (2002).

[^146]: *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).

[^147]: *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).

[^148]: *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).

[^149]: *See* Letter to Thomas Sugrue, Chief, Wireless
    Telecommunications Bureau, Federal Communications Commission, from
    Aida Alvarez, Administrator, Small Business Administration, dated
    August 10, 1999.

[^150]: *See* "Lower 700 MHz Band Auction Closes," *Public Notice*, 17
    FCC Rcd 17272 (WTB 2002).

[^151]: *See* "Lower 700 MHz Band Auction Closes," *Public Notice*, 18
    FCC Rcd 11873 (WTB 2003).

[^152]: *See* "Lower 700 MHz Band Auction Closes," *Public Notice*, 18
    FCC Rcd 11873 (WTB 2003).

[^153]: 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).

[^154]: *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).

[^155]: *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).

[^156]: *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).

[^157]: *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).

[^158]: *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).

[^159]: *See* "700 MHz Guard Bands Auction Closes: Winning Bidders
    Announced," *Public Notice*, 15 FCC Rcd 18026 (2000).

[^160]: *See* "700 MHz Guard Bands Auction Closes: Winning Bidders
    Announced," *Public Notice*, 16 FCC Rcd 4590 (WTB 2001).

[^161]: 47 C.F.R. § 90.814(b)(1).

[^162]: 47 C.F.R. § 90.814(b)(1).

[^163]: *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.

[^164]: *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).

[^165]: *See* "Multi-Radio Service Auction Closes," *Public Notice*, 17
    FCC Rcd 1446 (WTB 2002).

[^166]: *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).

[^167]: *See*, "800 MHz SMR Service Lower 80 Channels Auction Closes;
    Winning Bidders Announced," *Public Notice*, 16 FCC Rcd 1736 (2000).

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

[^169]: 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).

[^170]: 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).

[^171]: *Id.* at 11068, paras. 291.

[^172]: *Id.*

[^173]: *See* Letter to Daniel Phythyon, Chief, Wireless
    Telecommunications Bureau, Federal Communications Commission, from
    Aida Alvarez, Administrator, Small Business Administration, dated
    January 6, 1998.

[^174]: *See generally* "220 MHz Service Auction Closes," *Public
    Notice*, 14 FCC Rcd 605 (WTB 1998).

[^175]: *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).

[^176]: *See* "Phase II 220 MHz Service Spectrum Auction Closes,"
    *Public Notice*, 14 FCC Rcd 11218 (WTB 1999).

[^177]: *See* "Multi-Radio Service Auction Closes," *Public Notice*, 17
    FCC Rcd 1446 (WTB 2002).

[^178]: *See* 13 C.F.R. § 121.201, NAICS code 517212.

[^179]: *See generally* 13 C.F.R. § 121.201.

[^180]: Federal Communications Commission, 60th Annual Report, Fiscal
    Year 1994, at ¶ 116.

[^181]: *See* 47 C.F.R. §§ 101 et seq. (formerly, Part 21 of the
    Commission's Rules) for common carrier fixed microwave services.

[^182]: 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.

[^183]: 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.

[^184]: 13 CFR § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^185]: *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).

[^186]: *Id.*

[^187]: *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).

[^188]: *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).

[^189]: *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).

[^190]: *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).

[^191]: *See* Letter to Dan Phythyon, Chief, Wireless Telecommunications
    Bureau, FCC, from Aida Alvarez, Administrator, SBA (Jan. 6, 1998).

[^192]: *See* "Interactive Video and Data Service (IVDS) Applications
    Accepted for Filing," *Public Notice*, 9 FCC Rcd 6227 (1994).

[^193]: Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding, *Fourth Report and Order*, 9 FCC Rcd 2330
    (1994).

[^194]: 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).

[^195]: *Id.*

[^196]: *See* Letter to Daniel Phythyon, Chief, Wireless
    Telecommunications Bureau, Federal Communications Commission, from
    Aida Alvarez, Administrator, Small Business Administration, dated
    January 6, 1998.

[^197]: 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.

[^198]: 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.

[^199]: *See* Letter to Thomas Sugrue, Chief, Wireless
    Telecommunications Bureau, Federal Communications Commission, from
    Aida Alvarez, Administrator, Small Business Administration, dated
    February 22, 1999.

[^200]: The service is defined in § 22.99 of the Commission's Rules, 47
    C.F.R. § 22.99.

[^201]: BETRS is defined in §§ 22.757 and 22.759 of the Commission's
    Rules, 47 C.F.R. §§ 22.757 and 22.759.

[^202]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^203]: The service is defined in § 22.99 of the Commission's Rules, 47
    C.F.R. § 22.99.

[^204]: 13 CFR § 121.201, NAICS codes 513322 (changed to 517212 in
    October 2002).

[^205]: 13 CFR § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^206]: 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).

[^207]: This service is governed by Subpart I of Part 22 of the
    Commission's Rules. *See* 47 C.F.R. §§ 22.1001-22.1037.

[^208]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^209]: *Id.*

[^210]: *See* Amendment of the Commission's Rules Regarding Multiple
    Address Systems, *Report and Order*, 15 FCC Rcd 11956, 12008, para.
    123 (2000).

[^211]: *Id.*

[^212]: *See* Letter to Thomas Sugrue, Chief, Wireless
    Telecommunications Bureau, Federal Communications Commission, from
    Aida Alvarez, Administrator, Small Business Administration, dated
    June 4, 1999.

[^213]: *See* "Multiple Address Systems Spectrum Auction Closes,"
    *Public Notice*, 16 FCC Rcd 21011 (2001).

[^214]: *See* 13 C.F.R. § 121.201, NAICS code 517212.

[^215]: 13 C.F.R. § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^216]: 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).

[^217]: *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."

[^218]: 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.

[^219]: 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).

[^220]: *24 GHz Report and Order*, 15 FCC Rcd at 16967, para. 77; *see
    also* 47 C.F.R. § 101.538(a)(1).

[^221]: *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.

[^222]: 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*).

[^223]: 47 C.F.R. § 21.961(b)(1).

[^224]: *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).

[^225]: 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).

[^226]: 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.

[^227]: 13 C.F.R. § 121.201, NAICS code 517510.

[^228]: *Id.*

[^229]: U.S. Census Bureau, 1997 Economic Census, Subject Series:
    Information, "Establishment and Firm Size (Including Legal Form of
    Organization)," Table 4 (issued October 2000).

[^230]: *Id.*

[^231]: 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.

[^232]: *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)

[^233]: *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.

[^234]: "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).

[^235]: FCC News Release, "Broadcast Station Totals as of December 31,
    2005."

[^236]: *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).

[^237]: *Id.*

[^238]: "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).

[^239]: "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).

[^240]: 13 CFR 121.201, NAICS codes 513111 and 513112.

[^241]: FCC News Release, "Broadcast Station Totals as of December 31,
    2005."

[^242]: 15 U.S.C. 632.

[^243]: 13 CFR § 121.201, NAICS code 513220 (changed to 517510 in
    October 2002).

[^244]: 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).

[^245]: 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).

[^246]: Paul Kagan Associates, Inc., Cable TV Investor, February 29,
    1996 (based on figures for December 30, 1995).

[^247]: 47 U.S.C. § 543(m)(2).

[^248]: *See* FCC Announces New Subscriber Count for the Definition of
    Small Cable Operator, *Public Notice*, DA 01-158 (January 24, 2001).

[^249]: 47 CFR § 76.901(f).

[^250]: *See* FCC Announces New Subscriber Count for the Definition of
    Small Cable Operators, Public Notice, DA-01-0158 (released January
    24, 2001).

[^251]: 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).

[^252]: *See* 47 U.S.C. § 573.

[^253]: 13 CFR § 121.201, NAICS code 513220 (changed to 517510 in
    October 2002).

[^254]: *See* <http://www.fcc.gov/csb/ovs/csovscer.html> (current as of
    March 2002).

[^255]: 13 C.F.R. § 121.201, NAICS code 517510.

[^256]: U.S. Census Bureau, 1997 Economic Census, Subject Series:
    Information, "Establishment and Firm Size (Including Legal Form of
    Organization)," Table 4 (issued October 2000).

[^257]: *Id.*

[^258]: "Auctions of Licenses in the Multichannel Video Distribution and
    Data Service Rescheduled for January 14, 2004," *Public Notice*, DA
    03-2354 (August 28, 2003).

[^259]: 13 CFR § 121.201, NAICS code 513322 (changed to 517212 in
    October 2002).

[^260]: Amendment of the Commission's Rules Concerning Maritime
    Communications, *Third Report and Order and Memorandum Opinion and
    Order*, 13 FCC Rcd 19853 (1998).

[^261]: 47 CFR Part 90.

[^262]: 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)

[^263]: 13 C.F.R. § 121.201, NAICS Code 517212.

[^264]: 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.

[^265]: 47 CFR § 1.1162.

[^266]: 5 U.S.C. § 601(5).

[^267]: 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.

[^268]: 47 CFR § 1.1164.

[^269]: 47 CFR § 1.1164(c).

[^270]: Public Law 104-134, 110 Stat. 1321 (1996).

[^271]: 31 U.S.C. § 7701(c)(2)(B).

[^272]: 47 CFR § 1.1166.

[^273]: 47 U.S.C. § 159(a).

[^274]: 47 C.F.R. §§ 73.150 and 73.152.

[^275]: *See Map of Estimated Effective Ground Conductivity in the
    United States*, 47 C.F.R. § 73.190 Figure R3.

[^276]: 47 C.F.R. § 73.313.

[^277]: Note that \"small fees\" are collected in advance for the entire
    license term. Therefore, the annual fee amount shown in this table
    that is a small fee (categories 1 through 5) must be multiplied by
    the 5- or 10-year license term, as appropriate, to arrive at the
    total amount of regulatory fees owed. It should be further noted
    that application fees may also apply as detailed in §1.1102 of this
    chapter.

[^278]: These are standard fees that are to be paid in accordance with §
    1.1157(b) of this chapter.

[^279]: These are standard fees that are to be paid in accordance with §
    1.1157(b) of this chapter.