36460 Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations 

proposed rulemaking and comment is 

impracticable and contrary to the public 

interest because consumers would be 

negatively impacted by premium 

changes should risk adjustment 

payments be interrupted or confidence 

in the program undermined. 

There is also good cause to proceed 

without notice and comment for the 

additional reason that such procedures 

are unnecessary here. HHS has received 

and considered comments in issuing the 

2014 through 2017 Payment Notices. In 

each of these rulemaking processes, 

parties had the opportunity to comment 

on HHS’s use of statewide average 

premium in the payment transfer 

formula under the HHS-operated risk 

adjustment methodology. Because this 

final rule adopts the same HHS-operated 

risk adjustment methodology issued in 

the 2017 Payment Notice final rule, the 

comments received in those 

rulemakings are sufficiently current to 

indicate a lack of necessity to engage in 

further notice and comment. In the 2014 

Payment Notice final rule, we received 

a number of comments in support of our 

proposal to use the statewide average 

premium as the basis for risk adjustment 

transfers. In subsequent benefit year 

rulemakings, some commenters 

expressed a desire for HHS to use a 

plan’s own premium. HHS addressed 

those comments by reiterating that we 

had considered the use of a plan’s own 

premium instead of the statewide 

average premium and chose to use 

statewide average premium. As this 

approach supports the overall goal of 

the risk adjustment program to 

encourage issuers to rate for the average 

risk in the applicable state market risk 

pool, and avoids the creation of 

incentives for issuers to operate less 

efficiently, set higher prices, develop 

benefit designs or create marketing 

strategies to avoid high risk enrollees. 

V. Collection of Information 

Requirements 

This document does not impose 

information collection requirements, 

that is, reporting, recordkeeping, or 

third-party disclosure requirements. 

Consequently, there is no need for 

review by the Office of Management and 

Budget under the authority of the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501, et seq.). 

VI. Regulatory Impact Analysis 

A. Statement of Need 

This final rule adopts the HHSoperated risk adjustment methodology 

for the 2017 benefit year set forth in the 

2017 Payment Notice final rule to 

ensure that the risk adjustment program 

works as intended to protect consumers 

from the effects of adverse selection and 

premium increases due to issuer 

uncertainty. The Premium Stabilization 

Rule and previous Payment Notices 

noted above provided detail on the 

implementation of the risk adjustment 

program, including the specific 

parameters applicable for the 2017 

benefit year. 

B. Overall Impact 

We have examined the impact of this 

rule as required by Executive Order 

12866 on Regulatory Planning and 

Review (September 30, 1993), Executive 

Order 13563 on Improving Regulation 

and Regulatory Review (January 18, 

2011), the Regulatory Flexibility Act 

(RFA) (September 19, 1980, Pub. L. 96– 

354), section 1102(b) of the Social 

Security Act, section 202 of the 

Unfunded Mandates Reform Act of 1995 

(March 22, 1995; Pub. L. 104–4), 

Executive Order 13132 on Federalism 

(August 4, 1999), the Congressional 

Review Act (5 U.S.C. 804(2), and 

Executive Order 13771 on Reducing 

Regulation and Controlling Regulatory 

Costs. Executive Orders 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). A regulatory impact analysis 

(RIA) must be prepared for major rules 

with economically significant effects 

($100 million or more in any one year). 

OMB has determined that this final 

rule is ‘‘economically significant’’ 

within the meaning of section 3(f)(1) of 

Executive Order 12866, because it is 

likely to have an annual effect of $100 

million in any 1 year. In addition, for 

the reasons noted above, OMB has 

determined that this is a major rule 

under the Congressional Review Act. 

This final rule offers a further 

explanation on budget neutrality and 

the use of statewide average premium in 

the risk adjustment payment transfer 

formula when HHS is operating the 

permanent risk adjustment program 

established in section 1343 of the 

PPACA on behalf of a state for the 2017 

benefit year. We note that we previously 

estimated transfers associated with the 

risk adjustment program in the Premium 

Stabilization Rule and the 2017 

Payment Notice, and that the provisions 

of this final rule do not change the risk 

adjustment transfers previously 

estimated under the HHS-operated risk 

adjustment methodology established in 

those final rules. The approximate risk 

adjustment transfers for the 2017 benefit 

year are $5.179 billion. As such, we also 

adopt the RIA in the 2017 Payment 

Notice proposed and final rules. 

Dated: July 23, 2018. 

Seema Verma, 

Administrator, Centers for Medicare & 

Medicaid Services. 

Dated: July 24, 2018. 

Alex M. Azar II, 

Secretary, Department of Health and Human 

Services. 

[FR Doc. 2018–16190 Filed 7–25–18; 4:15 pm] 

BILLING CODE 4120–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 1 

[MD Docket Nos. 18–175; FCC 18–65] 

Assessment and Collection of 

Regulatory Fees for Fiscal Year 2018 

AGENCY: Federal Communications 

Commission. 

ACTION: Final action. 

SUMMARY: In this document, the Federal 

Communications Commission 

(Commission) makes decisions 

involving submarine cables, 

international bearer circuits, and the 

calculation of cable television 

subscribers. 

DATES: This final action is effective 

August 29, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Roland Helvajian, Office of Managing 

Director at (202) 418–0444. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s FY 2018 

Report and Order (FY 2018 Report and 

Order), FCC 18–65, MD Docket No. 18– 

175 adopted on May 21, 2018 and 

released on May 22, 2018. The full text 

of this document is available for 

inspection and copying during normal 

business hours in the FCC Reference 

Center, 445 12th Street SW, Room CY– 

A257, Portals II, Washington, DC 20554, 

and may also be purchased from the 

Commission’s copy contractor, BCPI, 

Inc., Portals II, 445 12th Street SW, 

Room CY–B402, Washington, DC 20554. 

Customers may contact BCPI, Inc. via 

their website, http://www.bcpi.com, or 

call 1–800–378–3160. This document is 

available in alternative formats 

(computer diskette, large print, audio 

record, and braille). Persons with 

disabilities who need documents in 

these formats may contact the FCC by 

email: FCC504@fcc.gov or phone: 202– 

418–0530 or TTY: 202–418–0432. 


daltland on DSKBBV9HB2PROD with RULES
Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations 36461 

1See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601– 

612, has been amended by the Small Business 

Regulatory Enforcement Fairness Act of 1996 

(SBREFA), Public Law 104–121, Title II, 110 Stat. 

847 (1996). The SBREFA was enacted as Title II of 

the Contract with America Advancement Act of 

1996 (CWAAA). 

2See generally Assessment and Collection of 

Regulatory Fees for Fiscal Year 2017 (Final Rule), 

82 FR 44322 (Sept. 22, 2017), 32 FCC Rcd 7057 

(2017) (FY 2017 Report and Order) and Assessment 

and Collection of Regulatory Fees for Fiscal Year 

2017 (Further Notice of Proposed Rulemaking), 82 

FR 50598 (Nov. 1, 2017), 32 FCC Rcd 7057 (2017) 

(2017 FNPRM). 

3Submarine Cable Order, 74 FR 22104 (May 12, 

2009), 24 FCC Rcd at 4212–4216, paras. 7–18. 

4 Id., 24 FCC Rcd at 4212–13, paras. 8–9. 

5 FY 2017 Report and Order, 32 FCC Rcd at 7074, 

para. 46. 

6 2017 FNPRM, 32 FCC Rcd at 7074–75, para. 46. 

7Coalition Reply Comments at 3–4, 7–8. 

8Submarine Cable Order, 24 FCC Rcd at 4208, 

para. 1 & note 3. 

9 2017 FNPRM, 32 FCC Rcd at 7075, para. 48. This 

proposal was from the Submarine Cable Coalition. 

10SIA Comments at 6. 

11Coalition Reply Comments at 3. 

12CTIA Comments at 2–3. 

I. Procedural Matters 

A. Final Regulatory Flexibility Analysis 

1. As required by the Regulatory 

Flexibility Act of 1980 (RFA),1 the 

Commission has prepared a Final 

Regulatory Flexibility Analysis (FRFA) 

relating to this Report and Order. The 

FRFA is located towards the end of this 

document. 

B. Final Paperwork Reduction Act of 

1995 Analysis 

2. This document does not contain 

new or modified information collection 

requirements subject to the Paperwork 

Reduction Act of 1995 (PRA), Public 

Law 104–13. In addition, therefore, it 

does not contain any new or modified 

information collection burden for small 

business concerns with fewer than 25 

employees, pursuant to the Small 

Business Paperwork Relief Act of 2002, 

Public Law 107–198, see 44 U.S.C. 

3506(c)(4). 

C. Congressional Review Act 

3. The Commission will send a copy 

of this Report & Order to Congress and 

the Government Accountability Office 

pursuant to the Congressional Review 

Act, see 5 U.S.C. 801(a)(1)(A). 

II. Introduction 

In this Report and Order, we address 

several regulatory fee issues raised in 

the Further Notice of Proposed 

Rulemaking that published after the 

Commission’s FY 2017 Report and 

Order.2 More specifically, in this Report 

and Order, we (1) adopt new tiers for 

calculating regulatory fees for 

submarine cable systems; (2) decline to 

adopt a new regulatory fee for 

international section 214 authorizations; 

and (3) retain the optional bulk rate 

calculation for determining the number 

of subscribers in multiple dwelling 

units used in the calculation of cable 

television regulatory fees. 

III. Report and Order 

A. Submarine Cable Regulatory Fees 

1. In 2009, the Commission adopted a 

new methodology for calculating 

submarine cable regulatory fees, based 

on a proposal from the submarine cable 

industry.3 The methodology adopted 

was a tiered per-cable system, with 

higher fees for larger systems and lower 

fees for smaller systems. The 

Commission concluded that the 

methodology was in the public interest 

and competitively neutral because it 

included both common carriers and 

non-common carriers; all entities with 

cable landing licensees would be 

required to pay this regulatory fee.4 At 

that time, the Commission adopted a 

five-tier system for the submarine cable 

industry, but since that date the 

subsequent growth in the industry has 

moved all but two systems into the 

highest tier.5 In the 2017 FNPRM, we 

sought comment on revising the 

regulatory fee tiers for submarine cable 

systems.6 One commenter, the 

Submarine Cable Coalition, generally 

agrees with our proposal to revise the 

existing tiers.7

2. We adjust the tiers proposed in the 

2017 FNPRM to reflect capacity growth 

since 2009 when the submarine cable 

tiers were first established. Specifically, 

the regulatory fee tiers for submarine 

cable systems we adopt below add 

higher thresholds to reflect capacity 

growth in the industry. Based on this 

increase in capacity, we believe the tiers 

better capture varying types of 

submarine cable operators. 

• Systems with capacity equal to or 

greater than 4,000 Gbps will now pay 16 

payment units. 

• Systems with capacity equal to or 

greater than 1,000 Gbps but less than 

4,000 Gbps will now pay 8 payment 

units. 

• Systems with capacity equal to or 

greater than 250 Gbps but less than 

1,000 Gbps will now pay 4 payment 

units. 

• Systems with capacity equal to or 

greater than 50 Gbps but less than 250 

Gbps, will pay 2 payment units. 

• Systems with capacity less than 50 

Gbps will pay 1 payment unit. 

3. Under the revised regulatory fee 

tiers we adopt today, we estimate that 

approximately half of the submarine 

cable systems will be in the bottom or 

middle tiers, while the remaining 

systems will be in the new highest tier. 

The FCC will provide proposed rates for 

submarine cable systems for FY 2018 in 

future rulemaking. 

4. Finally, while the Submarine Cable 

Coalition contends that non-common 

carrier submarine cable systems should 

pay lower fees than common carriers, 

we note that the Commission adopted a 

competitively neutral methodology that 

included both common carriers and 

non-common carriers in the Submarine 

Cable Order, based on a consensus 

proposal from a group of operators, 

including at least one member of the 

Coalition, GU Holdings, Inc., an 

indirect, wholly-owned subsidiary of 

Google, Inc.8 The Coalition has not 

provided any evidence to support its 

claim that we should depart from this 

competitively neutral methodology and 

treat non-common carrier submarine 

cable systems differently from common 

carrier systems at this time. 

B. International Bearer Circuits and 

Section 214 Authorizations 

5. In the 2017 FNPRM, the 

Commission sought comment on a 

proposal raised by the Submarine Cable 

Coalition, that in lieu of regulatory fees 

for international bearer circuits (IBCs), 

we should assess a regulatory fee, based 

on International Bureau FTEs, on every 

holder of an international section 214 

authorization.9 SIA supports replacing 

the satellite IBC fee with a fee on each 

international section 214 authorization 

and contends that such a fee for all 

entities with international section 214 

authorizations would be appropriate 

because the holders of international 

section 214 authority are ‘‘directly 

involved in international common 

carrier services and benefit from 

associated Commission regulation. 

. . .’’ 10 The Submarine Cable Coalition 

contends that adopting a flat fee for all 

holders of international section 214 

authorizations would be an efficient and 

equitable methodology for assessing 

regulatory fees.11

6. Other commenters oppose this 

approach. CTIA argues that assessing a 

fee based on international section 214 

authorizations would change the basis 

for the IBC fees, which is ownership and 

use of international circuits, because 

many international 214 authorization 

holders only provide resold service and 

do not have international facilities.12

AT&T agrees with CTIA and notes that 

this approach would impose a new IBC 

regulatory fee on hundreds of entities 


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36462 Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations 

13AT&T Reply Comments at 6; CTIA Comments 

at 2–3. 14CTIA Comments at 4–5; CenturyLink 

Comments at 5; AT&T Reply Comments at 5–6. 15AT&T Jan. 17, 2018 ex parte at 1. 16CenturyLink Comments at 5. See also AT&T 

Reply Comments at 6. 17CTIA Comments at 3–4. 18CTIA Comments at 5; CenturyLink Comments 

at 5; AT&T Reply Comments at 6. The Submarine 

Cable Coalition contends that their proposal would 

reduce the burden on the International Bureau 

because of the costs associated with ‘‘overseeing 

redundant international Section 214 licensees.’’ 

Submarine Cable Coalition Reply Comments at 9. 

However, there is no evidence in the record that 

there are such costs to the International Bureau. 

19 47 U.S.C. 159(g). 

20 FY 2017 Report and Order, 32 FCC Rcd at 

7071–2, paras. 34–35. 

21For example, International Bureau FTEs could 

be involved in an international section 214 

rulemaking proceeding, a proceeding related to 

revocation of a carrier’s international section 214 

authorization, or other matters related to section 

214 of the Act. 

22The holders of such authorization pay 

regulatory fees based on the service provided (e.g., 

CMRS or ITSP). 

23 FY 2008 FNPRM, 73 FR 30563 (May 28, 2018), 

24 FCC Rcd at 6407–6408, paras. 51–52. 

24This is essentially the same methodology we 

sought comment on in the FY 2008 FNPRM. 

25 2017 FNPRM, 32 FCC Rcd at 7076, paras. 50– 

51. 26 ITTA Comments at 1–2; NCTA and ACA 

Comments at 1–3. 27NCTA and ACA Comments at 2. 28 5 U.S.C. 603. The RFA, 5 U.S.C. 601–612 has 

been amended by the Small Business Regulatory 

Enforcement Fairness Act of 1996 (SBREFA), Public 

Law 104–121, Title II, 110 Stat. 847 (1996). 29Assessment and Collection of Regulatory Fees 

for Fiscal Year 2017, 32 FCC Rcd 7057 (2017). 30 5 U.S.C. 604. 31 5 U.S.C. 603(b)(3). 32 5 U.S.C. 601(6). 33 5 U.S.C. 601(3) (incorporating the definition of 

‘‘small-business concern’’ from the Small Business 

that do not currently pay IBC fees.13

These commenters also explain that 

because only common carriers hold 

international section 214 authorizations, 

this approach would essentially reverse 

our decision in the FY 2017 Report and 

Order to include non-common carrier 

terrestrial IBCs in the IBC regulatory fee 

methodology.14 For example, AT&T 

states that replacing all or part of the 

IBC fee with a flat fee on international 

section 214 authorizations would 

‘‘effectively reverse the Commission’s 

decisions to provide a competitively 

neutral IBC fee structure.’’ 15

CenturyLink argues that entities holding 

an international 214 authorization but 

that do not have active international 

circuits do not receive the benefits of 

Commission international activities, and 

therefore should not be subject to 

regulatory fees.16 CTIA also states that 

international section 214 applicants 

already pay a $1,155 filing fee with each 

application and there is no evidence of 

other International Bureau costs 

associated with international section 

214 authorizations.17 Commenters also 

note that such an approach would 

present administrative difficulties since 

many carriers have multiple 

international 214 authorizations and can 

surrender them if the Commission 

adopted a per-international section 214 

authorization regulatory fee.18

7. We decline to impose regulatory 

fees on international section 214 

authorizations in lieu of our existing 

IBC regulatory fees for terrestrial and 

satellite IBCs and submarine cable 

systems. The record does not 

demonstrate that this approach is 

advantageous over the existing scheme 

established in section 9(g) of the Act to 

charge the IBC regulatory fee based on 

active international bearer circuits.19

The Submarine Cable Coalition’s 

proposal is also problematic because it 

would exclude non-common carriers 

from paying the fee. However, the 

Commission concluded in the FY 2017 

Report and Order that regulatory fees 

should be paid for non-common carrier 

satellite and terrestrial circuits, as well 

as submarine cable systems.20 Further, 

the Submarine Cable Coalition has not 

shown how a CMRS provider or an ITSP 

with an international section 214 

authorization is subject to regulation or 

oversight by the International Bureau 

that would justify an additional annual 

regulatory fee based on International 

Bureau FTEs. We recognize that 

oversight or regulation by the 

International Bureau is not limited to 

the processing of international section 

214 authorizations.21 We are, however, 

unconvinced at this time that such costs 

justify requiring hundreds of carriers 

regulated by other bureaus to pay 

additional regulatory fees 22 based on 

International Bureau FTEs. For these 

reasons, we decline to adopt a new 

regulatory fee category for international 

section 214 authorizations to replace 

IBC regulatory fees at this time. 

C. Cable Television Services— 

Calculation of Number of Subscribers 

8. In the FY 2008 FNPRM, the 

Commission sought comment on the 

optional bulk rate calculation for 

determining the number of subscribers 

in a multiple dwelling unit or MDU.23

The methodology for calculating the 

number of cable subscribers has been 

the following: 

Cable television system operators should 

compute their number of 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 [year], rather than on a 

count as of December 31, [year].24

9. In the 2017 FNPRM, we sought 

comment on whether we should keep 

the bulk rate calculation or if, due to the 

passage of time, we should modify the 

methodology to more accurately 

calculate the number of subscribers in a 

MDU.25 Commenters addressing this 

issue unanimously support retaining the 

current optional bulk rate calculation.26

In particular, commenters state that our 

methodology continues to be ‘‘a 

reasonable and feasible approach to 

determining the number of MDU 

subscribers for regulatory fee purposes, 

and should be retained.’’ 27 And, there is 

no evidence in the record to support 

revising or eliminating this optional 

bulk rate calculation. For these reasons, 

we retain the bulk rate calculation. 

IV. Final Regulatory Flexibility 

Analysis 

1. As required by the Regulatory 

Flexibility Act of 1980, as amended 

(RFA),28 an Initial Regulatory Flexibility 

Analysis (IRFA) was included in the 

2017 FNPRM.29 The Commission sought 

written public comment on these 

proposals including comment on the 

IRFA. This Final Regulatory Flexibility 

Analysis (FRFA) conforms to the 

IRFA.30

A. Need for, and Objectives of, the 

Report and Order 

2. This Report and Order adopts a 

revision to the existing tiers for 

submarine cable regulatory fees. 

B. Summary of the Significant Issues 

Raised by the Public Comments in 

Response to the IRFA 

3. None. 

C. Description and Estimate of the 

Number of Small Entities to Which the 

Rules Will Apply 

4. The RFA directs agencies to 

provide a description of, and where 

feasible, an estimate of the number of 

small entities that may be affected by 

the proposed rules and policies, if 

adopted.31 The RFA generally defines 

the term ‘‘small entity’’ as having the 

same meaning as the terms ‘‘small 

business,’’ ‘‘small organization,’’ and 

‘‘small governmental jurisdiction.’’ 32 In 

addition, the term ‘‘small business’’ has 

the same meaning as the term ‘‘small 

business concern’’ under the Small 

Business Act.33 A ‘‘small business 


daltland on DSKBBV9HB2PROD with RULES
Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations 36463 

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.’’ 

34 15 U.S.C. 632. 

35See SBA, Office of Advocacy, ‘‘Frequently 

Asked Questions,’’ https://www.sba.gov/sites/ 

default/files/advocacy/SB-FAQ-2016_WEB.pdf. 

36http://www.census.gov/cgi-bin/sssd/naics/ 

naicsrch. 

37See 13 CFR 120.201, NAICS code 517110. 

38http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ5&prodType=table. 

39 13 CFR 121.201, NAICS code 517110. 40http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ5&prodType=table. 41 13 CFR 121.201, NAICS code 517110. 42http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ5&prodType=table. 43See Trends in Telephone Service, Federal 

Communications Commission, Wireline 

Competition Bureau, Industry Analysis and 

Technology Division at Table 5.3 (Sept. 2010) 

(Trends in Telephone Service). 44 Id. 45 13 CFR 121.201, NAICS code 517110. 46http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?pid=

ECN_2012_US_51SSSZ5&prodType=table. 

47See Trends in Telephone Service, at Table 5.3. 

48 Id. 

49 Id. 

50 Id. 

51 Id. 

52 13 CFR 121.201, NAICS code 517110. 

53http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?pid=

ECN_2012_US_51SSSZ5&prodType=table. 

54See Trends in Telephone Service, at Table 5.3. 

55 Id. 

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.34 Nationwide, 

there are a total of approximately 27.9 

million small businesses, according to 

the SBA.35

5. Wired Telecommunications 

Carriers. The U.S. Census Bureau 

defines this industry as ‘‘establishments 

primarily engaged in operating and/or 

providing access to transmission 

facilities and infrastructure that they 

own and/or lease for the transmission of 

voice, data, text, sound, and video using 

wired communications networks. 

Transmission facilities may be based on 

a single technology or a combination of 

technologies. Establishments in this 

industry use the wired 

telecommunications network facilities 

that they operate to provide a variety of 

services, such as wired telephony 

services, including VoIP services, wired 

(cable) audio and video programming 

distribution, and wired broadband 

internet services. By exception, 

establishments providing satellite 

television distribution services using 

facilities and infrastructure that they 

operate are included in this 

industry.’’ 36 The SBA has developed a 

small business size standard for Wired 

Telecommunications Carriers, which 

consists of all such companies having 

1,500 or fewer employees.37 Census data 

for 2012 shows that there were 3,117 

firms that operated that year. Of this 

total, 3,083 operated with fewer than 

1,000 employees.38 Thus, under this 

size standard, most firms in this 

industry can be considered small. 

6. Local Exchange Carriers (LECs). 

Neither the Commission nor the SBA 

has developed a size standard for small 

businesses specifically applicable to 

local exchange services. The closest 

applicable NAICS code category is 

Wired Telecommunications Carriers as 

defined in paragraph 6 of this FRFA. 

Under the applicable SBA size standard, 

such a business is small if it has 1,500 

or fewer employees.39 According to 

Commission data, census data for 2012 

shows that there were 3,117 firms that 

operated that year. Of this total, 3,083 

operated with fewer than 1,000 

employees.40 The Commission therefore 

estimates that most providers of local 

exchange carrier service are small 

entities that may be affected by the rules 

adopted. 

7. Incumbent LECs. Neither the 

Commission nor the SBA has developed 

a small business size standard 

specifically for incumbent local 

exchange services. The closest 

applicable NAICS code category is 

Wired Telecommunications Carriers as 

defined in paragraph 6 of this FRFA. 

Under that size standard, such a 

business is small if it has 1,500 or fewer 

employees.41 According to Commission 

data, 3,117 firms operated in that year. 

Of this total, 3,083 operated with fewer 

than 1,000 employees.42 Consequently, 

the Commission estimates that most 

providers of incumbent local exchange 

service are small businesses that may be 

affected by the rules and policies 

adopted. Three hundred and seven (307) 

Incumbent Local Exchange Carriers 

reported that they were incumbent local 

exchange service providers.43 Of this 

total, an estimated 1,006 have 1,500 or 

fewer employees.44

8. Competitive Local Exchange 

Carriers (Competitive LECs), 

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 NAICS code 

category is Wired Telecommunications 

Carriers, as defined in paragraph 6 of 

this FRFA. Under that size standard, 

such a business is small if it has 1,500 

or fewer employees.45 U.S. Census data 

for 2012 indicate that 3,117 firms 

operated during that year. Of that 

number, 3,083 operated with fewer than 

1,000 employees.46 Based on this data, 

the Commission concludes that most 

Competitive LECS, CAPs, SharedTenant Service Providers, and Other 

Local Service Providers, are small 

entities. According to Commission data, 

1,442 carriers reported that they were 

engaged in the provision of either 

competitive local exchange services or 

competitive access provider services.47

Of these 1,442 carriers, an estimated 

1,256 have 1,500 or fewer employees.48

In addition, 17 carriers have reported 

that they are Shared-Tenant Service 

Providers, and all 17 are estimated to 

have 1,500 or fewer employees.49 Also, 

72 carriers have reported that they are 

Other Local Service Providers.50 Of this 

total, 70 have 1,500 or fewer 

employees.51 Consequently, based on 

internally researched FCC data, 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. 

9. Interexchange Carriers (IXCs). 

Neither the Commission nor the SBA 

has developed a definition for 

Interexchange Carriers. The closest 

NAICS code category is Wired 

Telecommunications Carriers as defined 

in paragraph 6 of this FRFA. The 

applicable size standard under SBA 

rules is that such a business is small if 

it has 1,500 or fewer employees.52 U.S. 

Census data for 2012 indicates that 

3,117 firms operated during that year. 

Of that number, 3,083 operated with 

fewer than 1,000 employees.53

According to internally developed 

Commission data, 359 companies 

reported that their primary 

telecommunications service activity was 

the provision of interexchange 

services.54 Of this total, an estimated 

317 have 1,500 or fewer employees.55

Consequently, the Commission 

estimates that most interexchange 

service providers are small entities that 

may be affected by the rules adopted. 

10. Prepaid Calling Card Providers. 

Neither the Commission nor the SBA 

has developed a small business 

definition specifically for prepaid 

calling card providers. The most 

appropriate NAICS code-based category 

for defining prepaid calling card 


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36464 Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations 

56http://www.census.gov/cgi-bin/ssd/naics/ 

naicsrch. 

57 13 CFR 121.201, NAICS code 517911. 

58http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ5&prodType=table. 

59See Trends in Telephone Service, at Table 5.3. 

60 Id. 

61 13 CFR 121.201, NAICS code 517911. 

62http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ5&prodType=table. 

63See Trends in Telephone Service, at Table 5.3. 

64 Id. 

65 13 CFR 121.201, NAICS code 517911. 

66http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ5&prodType=table. 

67 Id. 

68Trends in Telephone Service at Table 5.3. 

69 Id. 

70 13 CFR 121.201, NAICS code 517110. 

71http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/ 

productview.xhtml?pid=ECN_2012_US_

51SSSZ5&prodType=table. 

72Trends in Telephone Service at Table 5.3. 

73 Id. 

74NAICS code 517210. See http://

www.census.gov/cgi-bin/ssd/naics/naiscsrch. 

75Trends in Telephone Service at Table 5.3. 

76 Id. 

77U.S. Census Bureau, 2012 NAICS code 

Economic Census Definitions, http://

www.census.gov.cgi-bin/sssd/naics/naicsrch. 

providers is Telecommunications 

Resellers. This industry comprises 

establishments engaged in purchasing 

access and network capacity from 

owners and operators of 

telecommunications networks and 

reselling wired and wireless 

telecommunications services (except 

satellite) to businesses and households. 

Establishments in this industry resell 

telecommunications; they do not 

operate transmission facilities and 

infrastructure. Mobile virtual networks 

operators (MVNOs) are included in this 

industry.56 Under the applicable SBA 

size standard, such a business is small 

if it has 1,500 or fewer employees.57

U.S. Census data for 2012 show that 

1,341 firms provided resale services 

during that year. Of that number, 1,341 

operated with fewer than 1,000 

employees.58 Thus, under this category 

and the associated small business size 

standard, the majority of these prepaid 

calling card providers can be considered 

small entities. According to Commission 

data, 193 carriers have reported that 

they are engaged in the provision of 

prepaid calling cards.59 All 193 carriers 

have 1,500 or fewer employees.60

Consequently, the Commission 

estimates that the majority of prepaid 

calling card providers are small entities 

that may be affected by the rules 

adopted. 

11. Local Resellers. Neither the 

Commission nor the SBA has developed 

a small business size standard 

specifically for 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.61 Census data for 2012 show 

that 1,341 firms provided resale services 

during that year. Of that number, 1,341 

operated with fewer than 1,000 

employees.62 Under this category and 

the associated small business size 

standard, the majority of these local 

resellers can be considered small 

entities. According to Commission data, 

213 carriers have reported that they are 

engaged in the provision of local resale 

services.63 Of this total, an estimated 

211 have 1,500 or fewer employees.64

Consequently, the Commission 

estimates that the majority of local 

resellers are small entities that may be 

affected by the rules adopted. 

12. Toll Resellers. The Commission 

has not developed a definition for Toll 

Resellers. The closest NAICS code 

Category is Telecommunications 

Resellers, and the SBA has developed a 

small business size standard for the 

category of Telecommunications 

Resellers.65 Under that size standard, 

such a business is small if it has 1,500 

or fewer employees.66 Census data for 

2012 show that 1,341 firms provided 

resale services during that year. Of that 

number, 1,341 operated with fewer than 

1,000 employees.67 Thus, under this 

category and the associated small 

business size standard, the majority of 

these resellers can be considered small 

entities. According to Commission data, 

881 carriers have reported that they are 

engaged in the provision of toll resale 

services.68 Of this total, an estimated 

857 have 1,500 or fewer employees.69

Consequently, the Commission 

estimates that the majority of toll 

resellers are small entities. 

13.Other Toll Carriers. Neither the 

Commission nor the SBA has developed 

a definition for small businesses 

specifically applicable to Other Toll 

Carriers. This category includes toll 

carriers that do not fall within the 

categories of interexchange carriers, 

operator service providers, prepaid 

calling card providers, satellite service 

carriers, or toll resellers. The closest 

applicable NAICS code category is for 

Wired Telecommunications Carriers as 

defined in paragraph 6 of this FRFA. 

Under the applicable SBA size standard, 

such a business is small if it has 1,500 

or fewer employees.70 Census data for 

2012 shows that there were 3,117 firms 

that operated that year. Of this total, 

3,083 operated with fewer than 1,000 

employees.71 Thus, under this category 

and the associated small business size 

standard, most Other Toll Carriers can 

be considered small. According to 

internally developed Commission data, 

284 companies reported that their 

primary telecommunications service 

activity was the provision of other toll 

carriage.72 Of these, an estimated 279 

have 1,500 or fewer employees.73

Consequently, the Commission 

estimates that most Other Toll Carriers 

are small entities. 

14. Wireless Telecommunications 

Carriers (except Satellite). This industry 

comprises establishments engaged in 

operating and maintaining switching 

and transmission facilities to provide 

communications via the airwaves. 

Establishments in this industry have 

spectrum licenses and provide services 

using that spectrum, such as cellular 

services, paging services, wireless 

internet access, and wireless video 

services.74 The appropriate size 

standard under SBA rules is that such 

a business is small if it has 1,500 or 

fewer employees. For this industry, 

Census data for 2012 show that there 

were 967 firms that operated for the 

entire year. Of this total, 955 firms had 

fewer than 1,000 employees. Thus, 

under this category and the associated 

size standard, the Commission estimates 

that the majority of wireless 

telecommunications carriers (except 

satellite) are small entities. Similarly, 

according to internally developed 

Commission data, 413 carriers reported 

that they were engaged in the provision 

of wireless telephony, including cellular 

service, Personal Communications 

Service (PCS), and Specialized Mobile 

Radio (SMR) services.75 Of this total, an 

estimated 261 have 1,500 or fewer 

employees.76 Thus, using available data, 

we estimate that the majority of wireless 

firms can be considered small. 

15. Television Broadcasting. This 

Economic Census category ‘‘comprises 

establishments primarily engaged in 

broadcasting images together with 

sound. These establishments operate 

television broadcasting studios and 

facilities for the programming and 

transmission of programs to the 

public.’’ 77 These establishments also 

produce or transmit visual programming 

to affiliated broadcast television 

stations, which in turn broadcast the 

programs to the public on a 

predetermined schedule. Programming 

may originate in their own studio, from 

an affiliated network, or from external 

sources. The SBA has created the 

following small business size standard 

for Television Broadcasting firms: those 


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78 13 CFR 121.201, NAICS code 515120. 

79See FCC News Release, ‘‘Broadcast Station 

Totals as of March 31, 2017,’’ April 11, 2017; 

https://apps.fcc.gov/edocs_public/attachmatch/ 

DOC-344256A1.pdf. 

80We recognize that BIA’s estimate differs 

slightly from the FCC total. 

81 ‘‘[Business 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 

21.103(a)(1). 

82See FCC News Release, ‘‘Broadcast Station 

Totals as of March 31, 2017,’’ April 11, 2017; 

https://apps.fcc.gov/edocs_public/attachmatch/ 

DOC-344256A1.pdf. 

83See generally 5 U.S.C. 601(4), (6). 

84See FCC News Release, ‘‘Broadcast Station 

Totals as of March 31, 2017,’’ April 11, 2017; 

https://apps.fcc.gov/edocs_public/attachmatch/ 

DOC-344256A1.pdf. 

85https://www.census.gov.cgi-bin/sssd/naics/ 

naicsrch. 

86 13 CFR 121.201, NAICS code 515112. 

87http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ5&prodType=table. 

88 ‘‘Concerns and entities are affiliates of each 

other when one controls or has the power to control 

the other, or a third party or parties controls or has 

the power to control both. It does not matter 

whether control is exercised, so long as the power 

to control exists.’’ 13 CFR 121.103(a)(1) (an SBA 

regulation). 

89 13 CFR 121.102(b) (an SBA regulation). 

90https://www.census.gov.cgi-bin/sssd/naics/ 

naicsrch. 

91http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US-51SSSZ5&prodType=Table. 

92 47 CFR 76.901(e). 

93See Eighteenth Competition Report, 32 FCC 

Rcd at 584, para. 39 (citing the Commission’s Cable 

Operations and Licensing Systems (COALS) 

database). 

94See https://www.snl.com/web/ 

client?auth=inherit#industry/topCableMSOs (last 

visited July 18, 2017). 

95 47 CFR 76.901(c). 

96See footnote 2, supra. 

97August 5, 2015 report from the Media Bureau 

based on its research in COALS. See www.fcc.gov/ 

coals. 

98 47 CFR 76.901 (f) and notes ff. 1, 2, and 3. 

having $38.5 million or less in annual 

receipts.78 The 2012 Economic Census 

reports that 751 television broadcasting 

firms operated during that year. Of that 

number, 656 had annual receipts of less 

than $25 million per year. Based on that 

Census data we conclude that most 

firms that operate television stations are 

small. The Commission has estimated 

the number of licensed commercial 

television stations to be 1,383.79 In 

addition, according to Commission staff 

review of the BIA Advisory Services, 

LLC’s Media Access Pro Television 

Database, on March 28, 2012, about 950 

of an estimated 1,300 commercial 

television stations (or approximately 73 

percent) had revenues of $14 million or 

less.80 We therefore estimate that the 

majority of commercial television 

broadcasters are small entities. 

16. In assessing whether a business 

concern qualifies as small under the 

above definition, business (control) 

affiliations 81 must be included. Our 

estimate, therefore, likely overstates the 

number of small entities that might be 

affected by our action, because the 

revenue figure on which it is based does 

not include or aggregate revenues from 

affiliated companies. In addition, 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 does not exclude any television 

station from the definition of a small 

business on this basis and is therefore 

possibly over-inclusive to that extent. 

17. In addition, the Commission has 

estimated the number of licensed 

noncommercial educational television 

stations to be 394.82 These stations are 

non-profit, and therefore considered to 

be small entities.83 There are also 2,382 

low power television stations, including 

Class A stations.84 Given the nature of 

these services, we will presume that all 

LPTV licensees qualify as small entities 

under the above SBA small business 

size standard. 

18. Radio Broadcasting. 

This Economic Census category 

‘‘comprises establishments primarily 

engaged in broadcasting aural programs 

by radio to the public. Programming 

may originate in their own studio, from 

an affiliated network, or from external 

sources.’’ 85 The SBA has established a 

small business size standard for this 

category, which is: such firms having 

$38.5 million or less in annual 

receipts.86 Census data for 2012 show 

that 2,849 radio station firms operated 

during that year. Of that number, 2,806 

operated with annual receipts of less 

than $25 million per year.87 According 

to Commission staff review of BIA 

Advisory Services, LLC’s Media Access 

Pro Radio Database, on March 28, 2012, 

about 10,759 (97 percent) of 11,102 

commercial radio stations had revenues 

of $38.5 million or less. Therefore, most 

such entities are small entities. 

19. In assessing whether a business 

concern qualifies as small under the 

above size standard, business 

affiliations must be included.88 In 

addition, to be determined to be a 

‘‘small business,’’ the entity may not be 

dominant in its field of operation.89 We 

note that it is difficult at times to assess 

these criteria in the context of media 

entities, and our estimate of small 

businesses may therefore be overinclusive. 

20. Cable Television and Other 

Subscription Programming. This 

industry comprises establishments 

primarily engaged in operating studios 

and facilities for the broadcasting of 

programs on a subscription or fee basis. 

The broadcast programming is typically 

narrowcast in nature (e.g., limited 

format, such as news, sports, education, 

or youth-oriented). These 

establishments produce programming in 

their own facilities or acquire 

programming from external sources. The 

programming material is usually 

delivered to a third party, such as cable 

systems or direct-to-home satellite 

systems, for transmission to viewers.90

The SBA has established a size standard 

for this industry of $38.5 million or less. 

Census data for 2012 shows that there 

were 367 firms that operated that year. 

Of this total, 319 operated with annual 

receipts of less than $25 million.91 Thus 

under this size standard, most firms 

offering cable and other program 

distribution services can be considered 

small and may be affected by rules 

adopted. 

21. Cable Companies and Systems. 

The Commission has developed its own 

small business size standards for the 

purpose of cable rate regulation. Under 

the Commission’s rules, a ‘‘small cable 

company’’ is one serving 400,000 or 

fewer subscribers nationwide.92

Industry data indicate that there are 

currently 4,413 active cable systems in 

the United States.93 Of this total, all but 

ten cable operators nationwide are small 

under the 400,000-subscriber size 

standard.94 In addition, under the 

Commission’s rate regulation rules, a 

‘‘small system’’ is a cable system serving 

15,000 or fewer subscribers.95 Current 

Commission records show 4,413 cable 

systems nationwide.96 Of this total, 

3,900 cable systems have fewer than 

15,000 subscribers, and 700 systems 

have 15,000 or more subscribers, based 

on the same records.97 Thus, under this 

standard as well, we estimate that most 

cable systems are small entities. 

22. Cable System Operators (Telecom 

Act Standard). The Communications 

Act 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.’’ 98

There are approximately 53 million 

cable video subscribers in the United 


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99See NCTA Industry Data, Cable’s Customer 

Base, available at https://www.ncta.com/industrydata (last visited July 6, 2017). 

100 47 CFR 76.901(f) and notes ff. 1, 2, and 3. 

101See https://www.snl.com/web/ 

client?auth=inherit#industry/topCableMSOs (last 

visited July 18, 2018). 

102The Commission does receive such 

information on a case-by-case basis if a cable 

operator appeals a local franchise authority’s 

finding that the operator does not qualify as a small 

cable operator pursuant to section 76.901(f) of the 

Commission’s rules. See 47 CFR 76.901(f). 

103http://www.census.gov/cgi-bin/sssd/naics/ 

naicsrch. 104NAICS code 517110; 13 CFR 121.201. 105http://factfinder.census.gov/faces/ 

tableservices.jasf/pages/productview.xhtml?

pid+ECN_2012_US.51SSSZ4&prodType=table. 

106http://www.census.gov/cgi-bin/ssssd/naics/ 

naicsrch. 

107 13 CFR 121.201; NAICS code 517919. 

108http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/ 

productview.xhtml?pid=ECN_2012_US_

51SSSZ4&prodType=table. 

109See 47 CFR 52.101(b). 

110 13 CFR 121.201, NAICS code 517110. 

111 13 CFR 121.201, NAICS code 517210. 

112http://www.census.gov/cgi-bin/sssd/ 

naics.naicsrch. 

113 13 CFR 120,201, NAICS code 517110. 

114http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ4&prodType=table. 

States today.99 Accordingly, an operator 

serving fewer than 524,037 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.100 Based on available 

data, we find that all but nine 

incumbent cable operators are small 

entities under this size standard.101 We 

note that the Commission neither 

requests nor collects information on 

whether cable system operators are 

affiliated with entities whose gross 

annual revenues exceed $250 

million.102 Although it seems certain 

that some of these cable system 

operators are affiliated with entities 

whose gross annual revenues exceed 

$250 million, we are unable at this time 

to estimate with greater precision the 

number of cable system operators that 

would qualify as small cable operators 

under the definition in the 

Communications Act. 

23. Direct Broadcast Satellite (DBS) 

Service. DBS Service is a nationally 

distributed subscription service that 

delivers video and audio programming 

via satellite to a small parabolic dish 

antenna at the subscriber’s location. 

DBS is now included in SBA’s 

economic census category ‘‘Wired 

Telecommunications Carriers.’’ The 

Wired Telecommunications Carriers 

industry comprises establishments 

primarily engaged in operating and/or 

providing access to transmission 

facilities and infrastructure that they 

own and/or lease for the transmission of 

voice, data, text, sound, and video using 

wired telecommunications networks. 

Transmission facilities may be based on 

a single technology or combination of 

technologies. Establishments in this 

industry use the wired 

telecommunications network facilities 

that they operate to provide a variety of 

services, such as wired telephony 

services, including VoIP services, wired 

(cable) audio and video programming 

distribution; and wired broadband 

internet services. By exception, 

establishments providing satellite 

television distribution services using 

facilities and infrastructure that they 

operate are included in this industry.103

The SBA determines that a wireline 

business is small if it has fewer than 

1500 employees.104 Census data for 

2012 indicate that 3,117 wireline 

companies were operational during that 

year. Of that number, 3,083 operated 

with fewer than 1,000 employees.105

Based on that data, we conclude that 

most wireline firms are small under the 

applicable standard. However, currently 

only two entities provide DBS service, 

AT&T and DISH Network. AT&T and 

DISH Network each report annual 

revenues that are in excess of the 

threshold for a small business. 

Accordingly, we conclude that DBS 

service is provided only by large firms. 

24. All Other Telecommunications. 

‘‘All Other Telecommunications’’ is 

defined as follows: This U.S. industry is 

comprised of establishments that are 

primarily engaged in providing 

specialized telecommunications 

services, such as satellite tracking, 

communications telemetry, and radar 

station operation. This industry also 

includes establishments primarily 

engaged in providing satellite terminal 

stations and associated facilities 

connected with one or more terrestrial 

systems and capable of transmitting 

telecommunications to, and receiving 

telecommunications from, satellite 

systems. Establishments providing 

internet services or voice over internet 

protocol (VoIP) services via clientsupplied telecommunications 

connections are also included in this 

industry.106 The SBA has developed a 

small business size standard for ‘‘All 

Other Telecommunications,’’ which 

consists of all such firms with gross 

annual receipts of $32.5 million or 

less.107 For this category, census data for 

2012 show that there were 1,442 firms 

that operated for the entire year. Of 

these firms, a total of 1,400 had gross 

annual receipts of less than $25 

million.108 Thus, most ‘‘All Other 

Telecommunications’’ firms potentially 

affected by the rules adopted can be 

considered small. 

25. RespOrgs. RespOrgs, i.e., 

Responsible Organizations, are entities 

chosen by toll-free subscribers to 

manage and administer the appropriate 

records in the toll-free Service 

Management System for the toll-free 

subscriber.109 Although RespOrgs are 

often wireline carriers, they can also 

include non-carrier entities. Therefore, 

in the definition herein of RespOrgs, 

two categories are presented, i.e., Carrier 

RespOrgs and Non-Carrier RespOrgs. 

26. Carrier RespOrgs. Neither the 

Commission, the U.S. Census, nor the 

SBA have developed a definition for 

Carrier RespOrgs. Accordingly, the 

Commission believes that the closest 

NAICS code-based definitional 

categories for Carrier RespOrgs are 

Wired Telecommunications Carriers110

and Wireless Telecommunications 

Carriers (except satellite).111

27. The U.S. Census Bureau defines 

Wired Telecommunications Carriers as 

establishments primarily engaged in 

operating and/or providing access to 

transmission facilities and infrastructure 

that they own and/or lease for the 

transmission of voice, data, text, sound, 

and video using wired communications 

networks. Transmission facilities may 

be based on a single technology or a 

combination of technologies. 

Establishments in this industry use the 

wired telecommunications network 

facilities that they operate to provide a 

variety of services, such as wired 

telephony services, including VoIP 

services, wired (cable) audio and video 

programming distribution, and wired 

broadband internet services. By 

exception, establishments providing 

satellite television distribution services 

using facilities and infrastructure that 

they operate are included in this 

industry.112 The SBA has developed a 

small business size standard for Wired 

Telecommunications Carriers, which 

consists of all such companies having 

1,500 or fewer employees.113 Census 

data for 2012 show that there were 3,117 

Wired Telecommunications Carrier 

firms that operated for that entire year. 

Of that number, 3,083 operated with 

less than 1,000 employees.114 Based on 

that data, we conclude that most Carrier 

RespOrgs that operated with wirelinebased technology are small. 

28. The U.S. Census Bureau defines 

Wireless Telecommunications Carriers 

(except satellite) as establishments 

engaged in operating and maintaining 

switching and transmission facilities to 

provide communications via the 


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115http://www.census.gov/cgi-bin/sssd/ 

naics.naicsrch. 

116 13 CFR 120.201, NAICS code 517120. 

117http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ4&prodType=table. 

118 13 CFR 120.201, NAICS code 541890. 

119 13 CFR 120.201, NAICS code 541618. 

120http://www.census.gov/cgi-bin/sssd/ 

naics.naicsrch. 

121 13 CFR 120.201, NAICS code 541890. 

122http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ4&prodType=table. 

123http://www.census.gov/cgi-bin/sssd/ 

naics.naicsrch. 

124 13 CFR 120.201, NAICS code 514618. 

125http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ4&prodType=table. 

126The four NAICS code-based categories 

selected above to provide definitions for Carrier and 

Non-Carrier RespOrgs were selected because as a 

group they refer generically and comprehensively to 

all RespOrgs. Therefore, all RespOrgs, including 

those not identified specifically or individually, 

must comply with the rules adopted in the 

Regulatory Fees Report and Order associated with 

this Final Regulatory Flexibility Analysis. 

127Email from Jennifer Blanchard, Somos, July 1, 

2016. 128 5 U.S.C. 603(c)(1)–(c)(4). 

airwaves, such as cellular services, 

paging services, wireless internet access, 

and wireless video services.115 The 

appropriate size standard under SBA 

rules is that such a business is small if 

it has 1,500 or fewer employees.116

Census data for 2012 show that 967 

Wireless Telecommunications Carriers 

operated in that year. Of that number, 

955 operated with less than 1,000 

employees.117 Based on that data, we 

conclude that most Carrier RespOrgs 

that operated with wireless-based 

technology are small. 

29. Non-Carrier RespOrgs. Neither the 

Commission, the Census, nor the SBA 

have developed a definition of NonCarrier RespOrgs. Accordingly, the 

Commission believes that the closest 

NAICS code-based definitional 

categories for Non-Carrier RespOrgs are 

‘‘Other Services Related To 

Advertising’’ 118 and ‘‘Other 

Management Consulting Services.’’ 119

30. The U.S. Census defines Other 

Services Related to Advertising as 

comprising establishments primarily 

engaged in providing advertising 

services (except advertising agency 

services, public relations agency 

services, media buying agency services, 

media representative services, display 

advertising services, direct mail 

advertising services, advertising 

material distribution services, and 

marketing consulting services.120 The 

SBA has established a size standard for 

this industry as annual receipts of $15 

million dollars or less.121 Census data 

for 2012 show that 5,804 firms operated 

in this industry for the entire year. Of 

that number, 5,249 operated with 

annual receipts of less than $10 

million.122 Based on that data we 

conclude that most Non-Carrier 

RespOrgs who provide TFN-related 

advertising services are small. 

31. The U.S. Census defines Other 

Management Consulting Services as 

establishments primarily engaged in 

providing management consulting 

services (except administrative and 

general management consulting; human 

resources consulting; marketing 

consulting; or process, physical 

distribution, and logistics consulting). 

Establishments providing 

telecommunications or utilities 

management consulting services are 

included in this industry.123 The SBA 

has established a size standard for this 

industry of $15 million dollars or 

less.124 Census data for 2012 show that 

3,683 firms operated in this industry for 

that entire year. Of that number, 3,632 

operated with less than $10 million in 

annual receipts.125 Based on this data, 

we conclude that most non-carrier 

RespOrgs who provide TFN-related 

management consulting services are 

small.126

32. In addition to the data contained 

in the four (see above) U.S. Census 

NAICS code categories that provide 

definitions of what services and 

functions the Carrier and Non-Carrier 

RespOrgs provide, Somos, the trade 

association that monitors RespOrg 

activities, compiled data showing that 

as of July 1, 2016, there were 23 

RespOrgs operational in Canada and 436 

RespOrgs operational in the United 

States, for a total of 459 RespOrgs 

currently registered with Somos.127

D. Description of Projected Reporting, 

Recordkeeping and Other Compliance 

Requirements 

33. This Report and Order does not 

adopt any new reporting, recordkeeping, 

or other compliance requirements. 

E. Steps Taken To Minimize Significant 

Economic Impact on Small Entities, and 

Significant Alternatives Considered 

34. The RFA requires an agency to 

describe any significant alternatives that 

it has considered in reaching its 

approach, which may include the 

following four alternatives, among 

others: (1) The establishment of 

differing compliance or reporting 

requirements or timetables that take into 

account the resources available to small 

entities; (2) the clarification, 

consolidation, or simplification of 

compliance or reporting requirements 

under the rule for small entities; (3) the 

use of performance, rather than design, 

standards; and (4) an exemption from 

coverage of the rule, or any part thereof, 

for small entities.128

35. This Report and Order adopts new 

tiers in assessing regulatory fees for 

submarine cable systems. There should 

not be a significant impact on small 

entities because the fee is based on the 

number of systems and would therefore 

reflect the size of the entity. In keeping 

with the requirements of the Regulatory 

Flexibility Act, we have considered 

certain alternative means of mitigating 

the effects of fee increases to a particular 

industry segment. For example, the 

Commission has increased the de 

minimis threshold to $1,000, which will 

impact many small entities that pay 

regulatory fees. This increase in the de 

minimis threshold to $1,000 will relieve 

regulatees both financially and 

administratively. Regulatees may also 

seek waivers or other relief on the basis 

of financial hardship. See 47 CFR 

1.1166. 

F. Federal Rules That May Duplicate, 

Overlap, or Conflict 

None. 

V. Ordering Clause 

36. Accordingly, it is ordered that, 

pursuant to Section 9(a), (b), (e), (f), and 

(g) of the Communications Act of 1934, 

as amended, 47 U.S.C. 159(a), (b), (e), 

(f), and (g), this Report and Order is 

hereby adopted. 

Federal Communications Commission. 

Marlene Dortch, 

Secretary. 

[FR Doc. 2018–15651 Filed 7–27–18; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 63 

[GN Docket No. 13–5; RM–11358; FCC 16– 

90] 

Technology Transitions; Policies and 

Rules Governing Retirement of Copper 

Loops by Incumbent Local Exchange 

Carriers 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule; announcement of 

effective date. 

SUMMARY: In this document, the 

Commission announces that the Office 

of Management and Budget (OMB) has 

approved, for a period of three years, the 

information collection associated with 

the Commission’s discontinuance rules. 

This document is consistent with the 


daltland on DSKBBV9HB2PROD with RULES