[Federal Register Volume 87, Number 123 (Tuesday, June 28, 2022)]
[Rules and Regulations]
[Pages 38286-38295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13439]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket Nos. 21-190 and 22-223; FCC 22-39; FR ID 91796]


Assessment and Collection of Regulatory Fees for Fiscal Year 2022

AGENCY: Federal Communications Commission.

ACTION: Final action.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) establishes a fee methodology for calculating small 
satellite fees.

DATES: This final action is effective July 28, 2022. Pursuant to 
section 9(d) of the Communications Act, the methodology for calculating 
small satellite fees requires notification to Congress at least 90 days 
before it becomes effective. Notification to Congress was provided on 
June 3, 2022, and therefore the effective date for the small satellite 
methodology is September 1, 2022.

FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing 
Director at (202) 418-0444.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order, FCC 22-39, MD Docket Nos. 21-190 and 22-223, adopted on June 
1, 2022, and released on June 2, 2022. The full text of this document 
is available for public inspection by downloading the text from the 
Commission's website at https://docs.fcc.gov/public/attachments/FCC-22-39A1.pdf.

I. Procedural Matters

A. Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act of 1980 (RFA), the 
Commission has prepared a Final Regulatory Flexibility Analysis (FRFA) 
relating to the Report and Order. The FRFA is located at 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 has determined, and the Administrator of the 
Office of Information and Regulatory Affairs, Office of Management and 
Budget, concurs that these rules are non-major under the Congressional 
Review Act, 5 U.S.C. 804(2). The Commission will send a copy of the 
Report & Order to Congress and the Government Accountability Office 
pursuant to 5 U.S.C. 801(a)(1)(A).

II. Introduction

    4. In this document, we adopt a fee methodology for calculating 
small satellite fees.

A. Space Station Regulatory Fees

    5. For regulatory fee purposes, space stations are divided into two 
main categories: (1) geostationary orbit (GSO) space stations and (2) 
NGSO space stations. With respect to NGSO space stations, consistent 
with our full time equivalent (FTE) allocation time and the distinct 
benefits received by small satellite NGSO fee payors, for FY 2022, we 
adopt a methodology for calculating the regulatory fee for small 
satellites and small spacecraft (for purposes of this proceeding, we 
refer to them together as ``small satellites'') based on 1/20th (5%) of 
the average of the non-small satellite NGSO space station regulatory 
fee rates from the current fiscal year on a per license basis. To 
implement this methodology for FY 2022, in the notice of proposed 
rulemaking (NPRM) published elsewhere in this issue of the Federal 
Register (FY 2022 NPRM; FR Doc. 2022-13231), we seek comment on the 
proposed regulatory fee rates for the subcategories of NGSO--small 
satellite, NGSO--less complex space stations, and NGSO--other space 
stations for FY 2022. We also address certain regulatory fee proposals 
in the record regarding spacecraft involved in on-orbit servicing and 
rendezvous and proximity operations. We tentatively conclude that the 
addition of a new regulatory fee category for spacecraft conducting 
these types of operations would be premature, but seek further comment 
on this topic, including as it relates to spacecraft that may be 
conducting on-orbit servicing operations near the GSO arc.
1. Methodology for Calculating Regulatory Fees for Small Satellites and 
Related Issues
    6. Although the Commission adopted the small satellite regulatory 
fee category in 2019, we are just beginning to implement a fee 
methodology for satellites and systems licensed as ``small satellites'' 
because they have just only started to become operational. This fiscal 
year, we will assess fees against this category of regulatees for the 
first time given that, as of October 2021, there were five licenses for 
operational space stations that are in this small satellite regulatory 
fee category. For the reasons discussed below, our expectation and 
predictive judgment is that our FTEs will spend approximately twenty 
times more time on regulating one non-small satellite NGSO system on 
average compared to the time spent regulating one small satellite 
license. Thus, in the FY 2022 NPRM, we propose a small satellite fee on 
a per-license basis of $12,145.
    7. This proposed fee is based on the methodology we adopt herein by 
calculating 1/20th (5%) of the average regulatory fee rate for a non-
small NGSO system in FY 2022, which we calculated to be $242,878 (the 
average of the ``less complex'' NGSO space station fee of $142,865 and 
the ``other'' NGSO space station fee of $342,890, which would be

[[Page 38287]]

the fee rates before the small satellite fees are calculated into the 
total NGSO space station fee category). Then we calculate the actual 
fee rate for non-small NGSO systems (i.e., NGSO--less complex space 
stations and NGSO--other space stations) after subtracting the total 
fee amount that would be allocated to operational small satellites from 
the total NGSO space station revenues.
    8. In 2019, in the Small Satellite Report and Order, 85 FR 43711 
(July 20, 2020), the Commission adopted a new, optional licensing 
process for small satellites and spacecraft. In that Report and Order, 
the Commission also adopted a small satellite regulatory fee category 
for licensed and operational space stations authorized under the 
process adopted in that proceeding. The Commission found that these 
actions would enable such applicants to choose a streamlined licensing 
procedure resulting in an easier application process, a lower 
application fee and a shorter timeline for review than currently exists 
for applicants. Satellites licensed through the streamlined process 
have characteristics that distinguish them from traditional NGSO 
satellite space stations, such as having a lower mass, shorter duration 
missions, more limited spectrum needs, and detailed certifications that 
must be submitted by the applicant.
    9. In the FY 2018 NPRM, 83 FR 27846 (June 14, 2018), the Commission 
proposed a regulatory fee for small satellites that would be 1/20th of 
the fee applicable to NGSO systems. The Commission observed that this 
is a new industry sector typically involving relatively low-cost 
systems, as compared with traditional satellite systems, and a high 
regulatory fee could limit the commercial applications of small 
satellites. The Commission also stated that the small satellite rules 
are designed to lower the regulatory burden involved in licensing small 
satellites and reduce application processing times. As a result, the 
Commission expected that small satellite authorizations would take 
fewer Commission resources to process than traditional NGSO satellite 
systems. In anticipation of including small satellites in the FY 2022 
regulatory fee schedule, in the notice of proposed rulemaking published 
at 86 FR 52429 (Sept. 21, 2021) (FY 2021 NPRM), we sought comment on 
the methodology for calculating the regulatory fee for this small 
satellite NGSO regulatory fee category.
    10. We first consider the integration of the small satellite NGSO 
fee category into the NGSO space stations fee category. In the FY 2021 
NPRM, we sought comment on how we should integrate the small satellite 
fee category into the overall space stations category. Eutelsat and 
Intuitive Machines comment that a small satellite fee category should 
be a third NGSO space stations fee category, in addition to ``less 
complex'' and ``other.'' In comments responsive to the FY 2021 NPRM, 
Amazon Web Services, Inc. and Planet Labs Inc. also favored integration 
of the small satellite fee category within the NGSO space stations fee 
category. We agree with commenters that support integration of the 
small satellite fee category into the NGSO space stations fee category 
as a third fee category. This approach recognizes that small satellites 
encompassed by the streamlined licensing process are, in fact, NGSO 
space stations. As a result, the small satellite fee category will be 
the third NGSO space stations fee category, in addition to ``less 
complex'' and ``other.''
    11. We next consider how to calculate the small satellite 
regulatory fee within the NGSO space stations fee category. In the FY 
2021 NPRM, we proposed two different ways to assess the small satellite 
regulatory fee. We first sought comment on setting a fee for small 
satellites that would not be dependent on the number of small 
satellites operating in a given regulatory period. We noted that a set 
fee would provide more certainty for regulatees given the shorter 
missions lasting no longer than six years for small satellites and the 
likely higher fluctuation in number of small satellites that are 
licensed and operational each year compared to NGSO space stations that 
are licensed for a 15-year term. More specifically, we proposed a fee 
for small satellites that is 1/20th of the ``other'' NGSO space station 
fee category, either calculated using the ``other'' NGSO space stations 
fees for given year or using the FY 2021 fee and then reassessing 
accordingly each year, since the FTE activities for given small 
satellite space stations would be approximately 1/20th of the FTE 
activities for typical ``other'' NGSO space stations.
    12. Commenters responded to this proposal with varying suggestions 
for calculating the regulatory fee for small satellites. Eutelsat 
proposes that we estimate aggregate small satellite regulatory costs 
annually by imposing a regulatory fee that is 1/20th of the average 
NGSO space stations fee, which would be calculated by dividing total 
expected NGSO space stations fee revenues by the number of traditional 
NGSO systems or ``payment units.'' Eutelsat proposes that we then 
adjust downward the fees for ``other'' and ``less complex'' NGSO space 
stations. Eutelsat submits that this methodology mitigates the 
potential for unexpectedly large and unsupportable fee amounts 
resulting from significant changes in workload or the number of small 
satellites from year to year. Eutelsat suggests that this small 
satellite regulatory fee of 1/20th of the average NGSO space stations 
fee would be a ``middle ground'' and provide an opportunity to gain 
more experience in regulating small satellites and understanding the 
benefits they receive. Eutelsat notes that the benefits received by 
small satellite licensees from Commission regulatory activities are 
limited due to compatibility requirements with existing operations and 
the limited license term compared to traditional NGSO space stations. 
Eutelsat also emphasizes the importance of stability in regulatory fee 
amounts since small satellite systems generally have more limited 
potential to generate commercial revenues or are used to further 
scientific/experimental objectives.
    13. Alternatively, Astro Digital proposes a fixed regulatory fee 
for small satellites that is 1/20th of the FY 2021 fee for ``other'' 
NGSO space stations and will vary minimally from year to year. Astro 
Digital posits that a fixed fee helps to ensure predictability for 
operators. Astro Digital believes that such a fee reflects the 
appropriate regulatory burden to the Commission and the benefits 
received by small satellite operators. Astro Digital also submits that 
this fee further accounts for reduced regulatory burden due to the 
operators typically being involved in likely less contentious licensing 
proceedings.
    14. As another alternative, Intuitive Machines proposes a fee that 
is 1/20th of the ``less complex'' NGSO space stations regulatory fee to 
more closely approximate the benefits and burdens associated with 
regulating small satellites. Intuitive Machines suggests this fee in 
consideration of the Commission's estimate that FTE activities for 
small satellites would be approximately 1/20th of the FTE activities 
for the category of ``other'' NGSO space stations, which is similar to 
the Commission's findings in the FY 2018 Report and Order, 83 FR 47079 
(Sept. 18, 2018). Intuitive Machines argues that when the Commission 
proposed a fee in the FY 2018 Report and Order that was 1/20th of the 
then NGSO space stations regulatory fee of $135,350, which was later 
lowered to $122,775, the resulting regulatory fee calculated to 
approximately $6,139--virtually identical to $6,135 or 1/20th of the FY 
2021 ``less complex'' NGSO

[[Page 38288]]

space stations fee category today. Intuitive Machines claims that this 
fee assessment is not only consistent with the Commission's prior 
proposal to account for FTE activities but also accounts for the 
reduced benefits received by small spacecraft operators.
    15. In the FY 2021 NPRM, we also sought comment on whether to 
allocate a percentage of the allocation for space station fees for 
small satellites, which would cause the amount to fluctuate each year 
depending on the number of payors in the small satellite category. We 
noted that there would likely be few small satellite operators paying 
fees initially and that the percentage could be reassessed as the 
number of operational small satellites and FTE activities involving 
those small satellites increases. We also sought comment on the earlier 
proposals of AWS and Planet Labs to allocate 5% of the total NGSO space 
station fee requirement to the small satellite fee category. The 
remaining 95% would be divided between the ``less complex'' and 
``other'' NGSO space stations. However, we expressed concern about 
redistributing solely a percentage of the ``less complex'' NGSO space 
stations fee to systems authorized under the streamlined small 
satellite process, given that there are important differences between 
small satellites and ``less complex'' and ``other'' NGSO space station 
systems that we believe necessitate different regulatory fees.
    16. Based on the record, and the fact that small satellites are 
NGSO space stations, we adopt a methodology for calculating the 
regulatory fee rate for small satellites based on 1/20th (5%) of the 
average of the ``less complex'' NGSO space station regulatory fee rate 
and the ``other'' NGSO space station fee rate for the current fiscal 
year. In determining the average of the NGSO space station regulatory 
fee rate for the current year, we will add together the fee rates of 
one ``less complex'' and one ``other'' NGSO space station units, before 
taking into account small satellite fees in the NGSO fee category, and 
divide that value by two. This averaging methodology accommodates 
fluctuations in the number of NGSO space stations fee payors and will 
result in a relatively and appropriately low regulatory fee for small 
satellites. We also find that adopting this averaging methodology 
rather than taking a percentage of either the ``less complex'' or 
``other'' NGSO space station fee rate provides a middle ground and an 
opportunity to gain more experience in regulating small satellites, 
while also recognizing that small satellites are part of a separate fee 
category and not within either the ``less complex'' or ``other'' NGSO 
space stations fee categories.
    17. We agree with commenters responding to the FY 2021 NPRM that a 
fair, administrable, and sustainable approach for assessing regulatory 
fees for small satellites is through calculating a fee that is not 
solely dependent on the number of small satellites operating in a given 
regulatory period. In addition, we find that a small satellite fee 
based on 1/20th (5%) of the average of the NGSO space stations 
regulatory fee rate from the current fiscal year will fairly reflect 
the anticipated FTE time for regulating small satellites. Our 
methodology results in a predictable small satellite regulatory fee 
structure (since the average of the ``less complex'' and ``other'' NGSO 
space station fees is unlikely to fluctuate significantly each year), 
takes into account the differences in small satellite licensing 
processes, accounts for regulatory differences among NGSO space 
stations, and aims to reduce the risk of non payors by increasing 
certainty as to the anticipated approximate small satellite regulatory 
fees.
    18. Our methodology also takes into account the amount of work that 
FTEs are performing and our expectation that our FTEs will spend 
approximately twenty times more time on regulating one non-small NGSO 
space station system compared to the time spent for regulating one 
small satellite license. With each small satellite application, the 
total FTE work amount in a given year increases. We anticipate that 
FTEs will spend time regulating small satellites by performing 
International Telecommunication Union (ITU) coordination; conducting 
outreach to other administrations; working on rulemakings, 
adjudications, and licensing; handling various filings submitted by 
small satellite operators; handling enforcement issues; and accounting 
for the potentially variable number of earth stations with which small 
satellites may communicate, including updating ITU materials when 
operators add earth stations to their networks after initial licensing. 
Small satellite regulatees, in turn, benefit from this regulatory work. 
This fee methodology simultaneously accounts for the characteristics of 
small satellites and the relatively few work hours anticipated to be 
spent by International Bureau FTEs in regulating them compared to FTE 
time spent on non-small satellite NGSO space stations, since small 
satellites have streamlined processing, often limited operational 
capabilities, spectrum compatibility requirements, and can only be 
licensed for a period of up to six years.
    19. Our regulatory fee methodology for small satellites also should 
reduce artificial incentives for structuring license applications 
primarily for the purpose of avoiding NGSO regulatory fees. Given the 
unique regulatory framework and optional application process, as well 
as the fact that most regulatory activities benefit all NGSO space 
stations in some proportion and our FTE activities are not tracked 
based on each NGSO subcategory, calculating the small satellite fee 
rate on a per license basis and in relation to FTE activities involving 
a non-small NGSO space station on average will ensure that NGSO space 
stations fee payors are assessed fair and reasonable shares of the 
total NGSO space stations regulatory fees.
    20. As the small satellite fee is calculated, the fees generated 
from this small satellite fee category will be deducted from the fee 
amount to be collected from the total NGSO space stations fees, and 
then the remainder of the NGSO space stations fees will be allocated on 
an 80/20 basis between ``other'' and ``less complex'' NSGO space 
stations respectively. This approach is consistent with our statutory 
obligation to apportion cost of regulating NGSO space stations in a 
fair and administrable manner among the NGSO space station fee payors. 
In adopting the small satellite fee category, the Commission recognized 
that small satellites are NGSO space stations. Taking out the small 
satellite fees from the total NGSO fees, rather than from one of the 
NGSO space station subcategories, recognizes that any small satellite 
fee contribution to the total fees collected from NGSO space stations 
should reduce the fees collected from both the ``less complex'' and 
``other'' NGSO space stations in the same manner to keep the cost 
apportionment between those subcategories at a fair and reasonable 
level. As we indicated in the FY 2021 Report and Order, 86 FR 52742 
(Sept. 22, 2021), FY 2022 will be the first year we assess regulatory 
fees for small satellites, and we anticipate that we will continue to 
review regulatory fees for small satellites on an ongoing basis as we 
gain more experience with these licensees.
    21. Assessment of Fees on a Per-License Basis. In the FY 2021 NPRM, 
we sought comment on whether we should assess regulatory fees per 
system or differently than other NGSO fee categories, given that a 
single entity may have multiple licenses for the same system, in 
accordance with the structure of the small satellite process. We sought 
to account for the fact that one system may have multiple associated 
small

[[Page 38289]]

satellite licenses. In response, both Eutelsat and Intuitive Machines 
propose that we should assess regulatory fees for small satellites per 
small satellite system rather than per small satellite license. 
Intuitive Machines contends that licensing on a per-system basis would 
provide small spacecraft operators greater flexibility in licensing 
missions and would benefit non-Earth orbiting systems that may be 
deployed incrementally over timeframes that may not be consistent with 
the orbital lifetime contemplated for small spacecraft. Eutelsat favors 
a per-system basis because small satellite systems may be associated 
with multiple licenses, therefore having multiple call signs, in part 
because of the design of the small satellite licensing process. 
Eutelsat also suggests that adopting fees on a per-system basis would 
avoid discouraging applicants from applying for multiple licenses 
because of potential regulatory fees and argues that such a policy 
would account for the diverse implementation options for small 
satellite systems.
    22. We decline to adopt a per-system fee and instead adopt the 
small satellite regulatory fee on a per-license basis. We anticipate 
that adopting the fee on a per-license basis will accurately reflect 
the increased oversight and regulation required by International Bureau 
FTEs for these systems, including ongoing regulatory activities, when 
an operator has multiple small satellite licenses. We have experienced 
firsthand a correlation between the time spent by FTEs in regulating 
small satellites and the number of licenses for a small satellite 
system when issuing multiple licenses to a small satellite operator. We 
also anticipate that a per-license fee basis will be more efficient and 
administrable because it avoids potential complications and additional 
FTE time spent in determining whether various sets of small satellites 
are part of the same ``system.'' Applying this fee on a per-license 
basis also is consistent with the Commission's statutory obligation to 
recover its costs while taking into account differences between the 
small satellite regulatory framework compared to other space stations, 
as discussed in more detail below, and acknowledges that there may be 
some advantages and additional benefits for small satellite operators 
to have more than one license given the shorter license term. Finally, 
we note that each small satellite license is assigned its own call sign 
in the application process, and so a small satellite call sign is 
effectively a proxy for license file number. As a result, in order to 
simplify our invoicing processing, we plan to invoice small satellite 
regulatory fees per call sign.
    23. We anticipate that adopting a fee for small satellites on a 
per-license basis rather than a per-system basis used for traditional 
NGSO space stations will account for key differences in the regulation 
of small satellites. First, when a small satellite operator has 
multiple licenses, the number of licenses correlates with the amount of 
work that the Commission must perform. This per-license fee basis will 
account for the anticipated additional burden in regulating more 
complicated multi-launch small satellite systems. In contrast, the 
Commission has observed that when traditional NGSO space stations 
operators hold multiple licenses for a single NGSO system, the 
regulatory burden does not increase with the grant of each additional 
license. Traditional NGSO systems are substantially more complicated to 
regulate from the outset, which could include processing rounds and 
related disputes and greater involvement in international coordination, 
such that additional authorizations create at most a nominal, if any, 
adjustment to the burden to regulate.
    24. Second, we expect that there are greater incentives and 
benefits of obtaining multiple licenses for the same system for small 
satellites compared to traditional NGSO space stations. For example, 
small satellite licenses are short term, lasting up to six years, while 
other NGSO space station licenses are valid for 15 years. As another 
example, a single small satellite license can only authorize up to 10 
satellites; however, under an NGSO licensing framework, there is no 
limit on the number of satellites that can be authorized under a single 
license. The small satellite licensing process is an optional 
streamlined process, carefully crafted to streamline regulatory work 
per application. Unlike other NGSO space station constellations, small 
satellite ``systems'' involving larger numbers of satellites cannot be 
authorized under a single license. The license term is also relatively 
short so with each additional small satellite license, operators of 
small satellite systems receive distinct benefits. For these reasons, 
we conclude that assessing the regulatory fee on a per-license basis is 
consistent with section 9 of the Communications Act and such 
assessments can be expected to reflect more accurately the FTE time 
spent on regulating these fee payors and the regulatory benefits 
provided to them.
    25. Our actions here are under section 9(d) of the Communications 
Act and must be submitted to Congress at least 90 days before they 
become effective. We direct the Office of the Managing Director to 
issue the notice immediately upon release of the item.
    26. Non-U.S. Licensed Small Satellite Operators. We deny the 
request from RBC Signals to exempt from regulatory fees non-U.S. 
licensed small satellite operators ``whose only connection with the 
U.S. market is communicating with U.S. data link/[telemetry, tracking 
and command] TT&C earth stations.'' RBC Signals argues that the 
Commission's analysis in the FY 2020 Report and Order (85 FR 59864 
(Sept. 23, 2020)) supports such an exemption. RBC Signals contends 
that, given their limited communications capabilities, small satellites 
typically utilize the same earth stations and low data-rate links for 
TT&C and data transfer. RBC Signals adds that the data transferred 
using these links are minimal as compared to gateway/feeder link 
backhaul for large communications and similar satellites. As a result, 
RBC Signals believes that small satellites communicating with U.S. 
earth stations only for data link and TT&C operations meet the factors 
that the Commission previously found were not present when denying 
creation of fee exemptions for certain non-U.S. licensed satellite 
systems: facilitation of safe operation of satellites and avoidance of 
significant data exchange traffic. RBC Signals contends that the costs 
of non-U.S. licensed small satellites supported by U.S. data link/TT&C 
earth stations should be recovered in the regulation of the U.S. earth 
stations, which also primarily receive the corresponding regulatory 
benefits. RBC Signals posits that small satellite ``data link/TT&C'' 
communications involve a narrow range of spectrum bands used for much 
more limited purposes and that it makes little difference whether a 
small satellite's supporting data link/TT&C earth station is located 
within or outside U.S. territory.
    27. For the following reasons, we disagree with RBC Signals' 
proposal that the Commission should exempt non-U.S. licensed small 
satellite operators whose only connection with the U.S. market is 
communicating with U.S. data link earth stations. RBC does not provide 
any meaningful distinction between data link stations and the gateway/
feeder link stations previously addressed in the FY 2020 Report and 
Order. In that Report and Order, the Commission found that space 
station operators benefit from our regulatory actions regardless of the 
direction of the data flow or whether services are provided ultimately 
to end users in the United States. The Commission also

[[Page 38290]]

found that non-U.S. licensed satellites accessing U.S. gateway/feeder 
link earth stations and non-U.S. licensed NGSO systems that downlink 
traffic to U.S. licensed earth stations, solely for immediate transit 
outside the United States, are involved in significant data exchange 
traffic in the United States and are not exempt from regulatory fees. 
With respect to small satellites, we note the Commission's earlier 
conclusion that services including TT&C and non-domestic data link to, 
or data link from, earth stations in the United States are meaningfully 
gaining access to the U.S. market and are subject to regulatory fees. 
We also note that the Commission has made clear that operators that 
communicate with TT&C earth stations in the United States will not pay 
regulatory fees, but only where the relevant earth station license 
clearly limits the non-U.S. licensed space station's access to TT&C 
communications. RBC Signals' request to exempt a space station 
communicating with a data link earth station exceeds that limit that 
the Commission has previously determined.

III. Final Regulatory Flexibility Analysis

    28. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
included in the FY 2021 NPRM. The Commission sought written public 
comment on these proposals, including comment on the IRFA. This Final 
Regulatory Flexibility Analysis (FRFA) conforms to the IRFA.

A. Need for, and Objectives of, the Report and Order

    29. The Commission is required by Congress to assess regulatory 
fees each year in an amount that can reasonably be expected to equal 
the amount of its annual appropriation. Although the Commission adopted 
the small satellite regulatory fee category in 2019, we are still at 
the start of implementing a fee methodology for satellites and systems 
licensed as ``small satellites'' because they have just only started to 
become operational. This fiscal year, we would apply this category of 
fees for the first time given that, as of October 2021, there were 5 
licenses for operational space stations that fall in this small 
satellite regulatory fee category. In the Report and Order, we adopt a 
methodology for calculating the regulatory fee for small satellites and 
small spacecraft (for purposes of this proceeding, we refer to them 
together as ``small satellites'') based on 1/20th (5%) of the average 
of the non-small satellite non-geostationary orbit (NGSO) space station 
regulatory fee rates from the current fiscal year. We adopt this fee on 
a per-license basis. This methodology will recognize the more limited 
regulatory work associated with small satellite licenses. It also 
results in a relatively low regulatory fee for small satellites. FY 
2022 will be the first year we assess regulatory fees for small 
satellites, so we anticipate that the Commission will review the 
regulatory fees for small satellites on an ongoing basis as it gains 
more experience with these licensees and market access grantees. In the 
Report and Order, we also deny an exemption requested from regulatory 
fee obligations for non-US licensed space stations.

B. Summary of the Significant Issues Raised by the Public Comments in 
Response to the IRFA

    30. None.

C. Response to Comments by the Chief Counsel for Advocacy of the Small 
Business Administration

    31. No comments were filed by the Chief Counsel for Advocacy of the 
Small Business Administration.

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

    32. 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. The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' In addition, the term ``small business'' 
has the same meaning as the term ``small business concern'' under the 
Small Business Act. A ``small business concern'' is one which: (1) is 
independently owned and operated; (2) is not dominant in its field of 
operation; and (3) satisfies any additional criteria established by the 
Small Business Administration (SBA).
    33. Small Businesses, Small Organizations, Small Governmental 
Jurisdictions. Small Businesses, Small Organizations, Small 
Governmental Jurisdictions. Our actions, over time, may affect small 
entities that are not easily categorized at present. We therefore 
describe here, at the outset, three broad groups of small entities that 
could be directly affected herein. First, while there are industry 
specific size standards for small businesses that are used in the 
regulatory flexibility analysis, according to data from the SBA's 
Office of Advocacy, in general a small business is an independent 
business having fewer than 500 employees. These types of small 
businesses represent 99.9% of all businesses in the United States, 
which translates to 30.7 million businesses.
    34. Next, the type of small entity described as a ``small 
organization'' is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
The Internal Revenue Service (IRS) uses a revenue benchmark of $50,000 
or less to delineate its annual electronic filing requirements for 
small exempt organizations. Nationwide, for tax year 2018, there were 
approximately 571,709 small exempt organizations in the U.S. reporting 
revenues of $50,000 or less according to the registration and tax data 
for exempt organizations available from the IRS.
    35. Finally, the small entity described as a ``small governmental 
jurisdiction'' is defined generally as ``governments of cities, 
counties, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' U.S. Census 
Bureau data from the 2017 Census of Governments indicates that there 
were 90,075 local governmental jurisdictions consisting of general 
purpose governments and special purpose governments in the United 
States. Of this number there were 36,931 general purpose governments 
(county, municipal and town or township) with populations of less than 
50,000 and 12,040 special purpose governments--independent school 
districts with enrollment populations of less than 511 governmental 
jurisdictions.''
    36. Wired Telecommunications Carriers. The U.S. Census Bureau 
defines this industry as establishments primarily engaged in operating 
and/or providing access to transmission facilities and infrastructure 
that they own and/or lease for the transmission of voice, data, text, 
sound, and video using wired communications networks. Transmission 
facilities may be based on a single technology or a combination of 
technologies. Establishments in this industry use the wired 
telecommunications network facilities that they operate to provide a 
variety of services, such as wired telephony services, including VoIP 
services, wired (cable) audio and video programming distribution, and 
wired broadband internet services. By exception, establishments 
providing satellite television distribution services using facilities 
and infrastructure that they operate are included in this industry. 
Wired Telecommunications Carriers are also referred to as wireline 
carriers or fixed local service providers.

[[Page 38291]]

    37. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 shows that there 
were 3,054 firms that operated in this industry for the entire year. Of 
this number, 2,964 firms operated with fewer than 250 employees. 
Additionally, based on Commission data in the 2021 Universal Service 
Monitoring Report, as of December 31, 2020, there were 5,183 providers 
that reported they were engaged in the provision of fixed local 
services. Of these providers, the Commission estimates that 4,737 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    38. Local Exchange Carriers (LECs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to local exchange services. Providers of these services 
include both incumbent and competitive local exchange service 
providers. Wired Telecommunications Carriers is the closest industry 
with an SBA small business size standard. Wired Telecommunications 
Carriers are also referred to as wireline carriers or fixed local 
service providers. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 shows that there 
were 3,054 firms that operated in this industry for the entire year. Of 
this number, 2,964 firms operated with fewer than 250 employees. 
Additionally, based on Commission data in the 2021 Universal Service 
Monitoring Report, as of December 31, 2020, there were 5,183 providers 
that reported they were fixed local exchange service providers. Of 
these providers, the Commission estimates that 4,737 providers have 
1,500 or fewer employees. Consequently, using the SBA's small business 
size standard, most of these providers can be considered small 
entities.
    39. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the 
Commission nor the SBA have developed a small business size standard 
specifically for incumbent local exchange carriers. Wired 
Telecommunications Carriers is the closest industry with an SBA small 
business size standard. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 shows that there 
were 3,054 firms in this industry that operated for the entire year. Of 
this number, 2,964 firms operated with fewer than 250 employees. 
Additionally, based on Commission data in the 2021 Universal Service 
Monitoring Report, as of December 31, 2020, there were 1,227 providers 
that reported they were incumbent local exchange service providers. Of 
these providers, the Commission estimates that 929 providers have 1,500 
or fewer employees. Consequently, using the SBA's small business size 
standard, the Commission estimates that the majority of incumbent local 
exchange carriers can be considered small entities.
    40. Competitive Local Exchange Carriers (LECs). Neither the 
Commission nor the SBA has developed a size standard for small 
businesses specifically applicable to local exchange services. 
Providers of these services include several types of competitive local 
exchange service providers. Wired Telecommunications Carriers is the 
closest industry with an SBA small business size standard. The SBA 
small business size standard for Wired Telecommunications Carriers 
classifies firms having 1,500 or fewer employees as small. U.S. Census 
Bureau data for 2017 shows that there were 3,054 firms that operated in 
this industry for the entire year. Of this number, 2,964 firms operated 
with fewer than 250 employees. Additionally, based on Commission data 
in the 2021 Universal Service Monitoring Report, as of December 31, 
2020, there were 3,956 providers that reported they were competitive 
local exchange service providers. Of these providers, the Commission 
estimates that 3,808 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, most of 
these providers can be considered small entities.
    41. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA have developed a small business size standard specifically for 
Interexchange Carriers. Wired Telecommunications Carriers is the 
closest industry with an SBA small business size standard. The SBA 
small business size standard for Wired Telecommunications Carriers 
classifies firms having 1,500 or fewer employees as small. U.S. Census 
Bureau data for 2017 shows that there were 3,054 firms that operated in 
this industry for the entire year. Of this number, 2,964 firms operated 
with fewer than 250 employees. Additionally, based on Commission data 
in the 2021 Universal Service Monitoring Report, as of December 31, 
2020, there were 151 providers that reported they were engaged in the 
provision of interexchange services. Of these providers, the Commission 
estimates that 131 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, the 
Commission estimates that the majority of providers in this industry 
can be considered small entities.
    42. Prepaid Calling Card Providers. Neither the Commission nor the 
SBA has developed a small business size standard specifically for 
prepaid calling card providers. Telecommunications Resellers is the 
closest industry with an SBA small business size standard. The 
Telecommunications Resellers industry comprises establishments engaged 
in purchasing access and network capacity from owners and operators of 
telecommunications networks and reselling wired and wireless 
telecommunications services (except satellite) to businesses and 
households. Establishments in this industry resell telecommunications; 
they do not operate transmission facilities and infrastructure. Mobile 
virtual network operators (MVNOs) are included in this industry. The 
SBA small business size standard for Telecommunications Resellers 
classifies a business as small if it has 1,500 or fewer employees. U.S. 
Census Bureau data for 2017 shows that 1,386 firms in this industry 
provided resale services for the entire year. Of that number, 1,375 
firms operated with fewer than 250 employees. Additionally, based on 
Commission data in the 2021 Universal Service Monitoring Report, as of 
December 31, 2020, there were 58 providers that reported they were 
engaged in the provision of payphone services. Of these providers, the 
Commission estimates that 57 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, most of 
these providers can be considered small entities.
    43. Local Resellers. Neither the Commission nor the SBA have 
developed a small business size standard specifically for Local 
Resellers. Telecommunications Resellers is the closest industry with an 
SBA small business size standard. The Telecommunications Resellers 
industry comprises establishments engaged in purchasing access and 
network capacity from owners and operators of telecommunications 
networks and reselling wired and wireless telecommunications services 
(except satellite) to businesses and households. Establishments in this 
industry resell telecommunications; they do not

[[Page 38292]]

operate transmission facilities and infrastructure. Mobile virtual 
network operators (MVNOs) are included in this industry. The SBA small 
business size standard for Telecommunications Resellers classifies a 
business as small if it has 1,500 or fewer employees. U.S. Census 
Bureau data for 2017 shows that 1,386 firms in this industry provided 
resale services for the entire year. Of that number, 1,375 firms 
operated with fewer than 250 employees. Additionally, based on 
Commission data in the 2021 Universal Service Monitoring Report, as of 
December 31, 2020, there were 293 providers that reported they were 
engaged in the provision of local resale services. Of these providers, 
the Commission estimates that 289 providers have 1,500 or fewer 
employees. Consequently, using the SBA's small business size standard, 
most of these providers can be considered small entities.
    44. Toll Resellers. Neither the Commission nor the SBA have 
developed a small business size standard specifically for Toll 
Resellers. Telecommunications Resellers is the closest industry with an 
SBA small business size standard. The Telecommunications Resellers 
industry comprises establishments engaged in purchasing access and 
network capacity from owners and operators of telecommunications 
networks and reselling wired and wireless telecommunications services 
(except satellite) to businesses and households. Establishments in this 
industry resell telecommunications; they do not operate transmission 
facilities and infrastructure. Mobile virtual network operators (MVNOs) 
are included in this industry. The SBA small business size standard for 
Telecommunications Resellers classifies a business as small if it has 
1,500 or fewer employees. U.S. Census Bureau data for 2017 shows that 
1,386 firms in this industry provided resale services for the entire 
year. Of that number, 1,375 firms operated with fewer than 250 
employees. Additionally, based on Commission data in the 2021 Universal 
Service Monitoring Report, as of December 31, 2020, there were 518 
providers that reported they were engaged in the provision of toll 
services. Of these providers, the Commission estimates that 495 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    45. 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. Wired Telecommunications Carriers is the closest 
industry with an SBA small business size standard. The SBA small 
business size standard for Wired Telecommunications Carriers classifies 
firms having 1,500 or fewer employees as small. U.S. Census Bureau data 
for 2017 shows that there were 3,054 firms in this industry that 
operated for the entire year. Of this number, 2,964 firms operated with 
fewer than 250 employees. Additionally, based on Commission data in the 
2021 Universal Service Monitoring Report, as of December 31, 2020, 
there were 115 providers that reported they were engaged in the 
provision of other toll services. Of these providers, the Commission 
estimates that 113 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, most of 
these providers can be considered small entities.
    46. Wireless Telecommunications Carriers (except Satellite). This 
industry comprises establishments engaged in operating and maintaining 
switching and transmission facilities to provide communications via the 
airwaves. Establishments in this industry have spectrum licenses and 
provide services using that spectrum, such as cellular services, paging 
services, wireless internet access, and wireless video services. The 
SBA size standard for this industry classifies a business as small if 
it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 shows 
that there were 2,893 firms in this industry that operated for the 
entire year. Of that number, 2,837 firms employed fewer than 250 
employees. Additionally, based on Commission data in the 2021 Universal 
Service Monitoring Report, as of December 31, 2020, there were 797 
providers that reported they were engaged in the provision of wireless 
services. Of these providers, the Commission estimates that 715 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    47. Television Broadcasting. This industry is comprised of 
``establishments primarily engaged in broadcasting images together with 
sound.'' These establishments operate television broadcast studios and 
facilities for the programming and transmission of programs to the 
public. These establishments also produce or transmit visual 
programming to affiliated broadcast television stations, which in turn 
broadcast the programs to the public on a predetermined schedule. 
Programming may originate in their own studio, from an affiliated 
network, or from external sources. The SBA small business size standard 
for this industry classifies businesses having $41.5 million or less in 
annual receipts as small. The 2017 U.S. Census Bureau data indicates 
that 744 firms in this industry operated for the entire year. Of that 
number, 657 firms had revenue of less than $25,000,000. Based on this 
data we estimate that the majority of television broadcasters are small 
entities under the SBA small business size standard.
    48. The Commission estimates that as of September 2021, there were 
1,374 licensed commercial television stations, 384 licensed 
noncommercial educational (NCE) television stations, 2,276 low power 
television stations, including Class A stations (LPTV) and 3,106 TV 
translator stations. The Commission however does not compile, and 
otherwise does not have access to financial information for these 
television broadcast stations that would permit it to determine how 
many of these stations qualify as small entities under the SBA small 
business size standard. Nevertheless, given the SBA's large annual 
receipts threshold for this industry and the nature of television 
station licensees, we presume that all of these entities qualify as 
small entities under the above SBA small business size standard.
    49. Radio Stations. This industry is comprised of ``establishments 
primarily engaged in broadcasting aural programs by radio to the 
public.'' Programming may originate in their own studio, from an 
affiliated network, or from external sources. The SBA small business 
size standard for this industry classifies firms having $41.5 million 
or less in annual receipts as small. U.S. Census Bureau data for 2017 
shows that 2,963 firms operated in this industry during that year. Of 
this number, 1,879 firms operated with revenue of less than $25 million 
per year. Based on this data and the SBA's small business size 
standard, we estimate a majority of such entities are small entities.
    50. The Commission estimates that as of September 2021, there were 
4,519 licensed commercial AM radio stations, 6,682 licensed commercial 
FM radio stations and 4,211 licensed noncommercial (NCE) FM radio 
stations. The Commission however does not compile, and otherwise does 
not have access to financial information for

[[Page 38293]]

these radio stations that would permit it to determine how many of 
these stations qualify as small entities under the SBA small business 
size standard. Nevertheless, given the SBA's large annual receipts 
threshold for this industry and the nature of radio station licensees, 
we presume that all of these entities qualify as small entities under 
the above SBA small business size standard.
    51. Cable Companies and Systems (Rate Regulation). The Commission 
has developed its own small business size standard for the purpose of 
cable rate regulation. Under the Commission's rules, a ``small cable 
company'' is one serving 400,000 or fewer subscribers nationwide. Based 
on available data, as of December 2020, there were approximately 
45,308,192 basic cable video subscribers in the top Cable multiple 
system operators (MSOs) in the United States. Only five cable operators 
serving cable video subscribers in the top Cable MSOs had more than 
400,000 subscribers. Accordingly, the Commission estimates that the 
majority of cable operators are small.
    52. Cable System Operators (Telecom Act Standard). The 
Communications Act of 1934, as amended, contains a size standard for 
small cable system operators, which classifies ``a cable operator that, 
directly or through an affiliate, serves in the aggregate fewer than 
one percent of all subscribers in the United States and is not 
affiliated with any entity or entities whose gross annual revenues in 
the aggregate exceed $250,000,000,'' as small. As of December 2020, 
there were approximately 45,308,192 basic cable video subscribers in 
the top Cable MSOs in the United States. Accordingly, an operator 
serving fewer than 453,082 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. Based 
on available data, all but five of the cable operators in the Top Cable 
MSOs have less than 453,082 subscribers and can be considered small 
entities under this size standard. We note however, that the Commission 
neither requests nor collects information on whether cable system 
operators are affiliated with entities whose gross annual revenues 
exceed $250 million. Therefore, we are unable at this time to estimate 
with greater precision the number of cable system operators that would 
qualify as small cable operators under the definition in the 
Communications Act.
    53. Direct Broadcast Satellite (DBS) Service. DBS service is a 
nationally distributed subscription service that delivers video and 
audio programming via satellite to a small parabolic ``dish'' antenna 
at the subscriber's location. DBS is included in the Wired 
Telecommunications Carriers industry which comprises establishments 
primarily engaged in operating and/or providing access to transmission 
facilities and infrastructure that they own and/or lease for the 
transmission of voice, data, text, sound, and video using wired 
telecommunications networks. Transmission facilities may be based on a 
single technology or combination of technologies. Establishments in 
this industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired telephony 
services, including VoIP services, wired (cable) audio and video 
programming distribution; and wired broadband internet services. By 
exception, establishments providing satellite television distribution 
services using facilities and infrastructure that they operate are 
included in this industry.
    54. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 shows that 3,054 
firms operated in this industry for the entire year. Of this number, 
2,964 firms operated with fewer than 250 employees. Based on this data, 
the majority of firms in this industry can be considered small under 
the SBA small business size standard. According to Commission data 
however, only two entities provide DBS service--DIRECTV (owned by AT&T) 
and DISH Network, which require a great deal of capital for operation. 
DIRECTV and DISH Network both exceed the SBA size standard for 
classification as a small business. Therefore, we must conclude based 
on internally developed Commission data, in general DBS service is 
provided only by large firms.
    55. Satellite Telecommunications. This industry comprises firms 
``primarily engaged in providing telecommunications services to other 
establishments in the telecommunications and broadcasting industries by 
forwarding and receiving communications signals via a system of 
satellites or reselling satellite telecommunications.'' Satellite 
telecommunications service providers include satellite and earth 
station operators. The SBA small business size standard for this 
industry classifies a business with $35 million or less in annual 
receipts as small. U.S. Census Bureau data for 2017 shows that 275 
firms in this industry operated for the entire year. Of this number, 
242 firms had revenue of less than $25 million. Additionally, based on 
Commission data in the 2021 Universal Service Monitoring Report, as of 
December 31, 2020, there were 71 providers that reported they were 
engaged in the provision of satellite telecommunications services. Of 
these providers, the Commission estimates that approximately 48 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, a little more than of these providers can 
be considered small entities.
    56. All Other Telecommunications. This industry is comprised of 
establishments primarily engaged in providing specialized 
telecommunications services, such as satellite tracking, communications 
telemetry, and radar station operation. This industry also includes 
establishments primarily engaged in providing satellite terminal 
stations and associated facilities connected with one or more 
terrestrial systems and capable of transmitting telecommunications to, 
and receiving telecommunications from, satellite systems. Providers of 
internet services (e.g., dial-up ISPs) or voice over internet protocol 
(VoIP) services, via client-supplied telecommunications connections are 
also included in this industry. The SBA small business size standard 
for this industry classifies firms with annual receipts of $35 million 
or less as small. U.S. Census Bureau data for 2017 shows that there 
were 1,079 firms in this industry that operated for the entire year. Of 
those firms, 1,039 had revenue of less than $25 million. Based on this 
data, the Commission estimates that the majority of ``All Other 
Telecommunications'' firms can be considered small.
    57. RespOrgs. Responsible Organizations, or RespOrgs (also referred 
to as Toll-Free Number (TFN) providers), are entities chosen by toll 
free subscribers to manage and administer the appropriate records in 
the toll-free Service Management System for the toll-free subscriber. 
Based on information on the website of SOMOS, the entity that maintains 
a registry of Toll-Free Number providers (SMS/800 TFN Registry) for the 
more than 42 million Toll-Free numbers in North America, and the TSS 
Registry, a centralized registry for the use of Toll-Free Numbers in 
text messaging and multimedia services, there were approximately 446 
registered RespOrgs/Toll-Free Number providers in July 2021. RespOrgs 
are often wireline carriers, however they can include non-carrier 
entities. Accordingly, the

[[Page 38294]]

description below for RespOrgs include both Carrier RespOrgs and Non-
Carrier RespOrgs.
    58. Carrier RespOrgs. Neither the Commission nor the SBA have 
developed a small business size standard for Carrier RespOrgs. Wired 
Telecommunications Carriers, and Wireless Telecommunications Carriers 
(except Satellite) are the closest industries with an SBA small 
business size applicable to Carrier RespOrgs.
    59. Wired Telecommunications Carriers are establishments primarily 
engaged in operating and/or providing access to transmission facilities 
and infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired communications 
networks. Transmission facilities may be based on a single technology 
or a combination of technologies. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services, wired (cable) audio and video programming 
distribution, and wired broadband internet services. By exception, 
establishments providing satellite television distribution services 
using facilities and infrastructure that they operate are included in 
this industry. The SBA small business size standard for this industry 
classifies a business as small if it has 1,500 or fewer employees. U.S. 
Census Bureau data for 2017 shows that there were 3,054 firms that 
operated for the entire year. Of this number, 2,964 firms operated with 
fewer than 250 employees. Based on that data, we conclude that the 
majority of Carrier RespOrgs that operated with wireline-based 
technology are small.
    60. Wireless Telecommunications Carriers (except Satellite) engage 
in operating and maintaining switching and transmission facilities to 
provide communications via the airwaves. Establishments in this 
industry have spectrum licenses and provide services using that 
spectrum, such as cellular services, paging services, wireless internet 
access, and wireless video services. The SBA small business size 
standard for this industry classifies a business as small if it has 
1,500 or fewer employees. For this industry, U.S. Census Bureau data 
for 2017 shows that there were 2,893 firms that operated for the entire 
year. Of this number, 2,837 firms employed fewer than 250 employees. 
Based on this data, we conclude that the majority of Carrier RespOrgs 
that operated with wireless-based technology are small.
    61. Non-Carrier RespOrgs. Neither the Commission, nor the SBA have 
developed a small business size standard Non-Carrier RespOrgs. Other 
Services Related to Advertising and Other Management Consulting 
Services are the closest industries with an SBA small business size 
applicable to Non-Carrier RespOrgs.
    62. The Other Services Related to Advertising industry contains 
establishments primarily engaged in providing advertising services 
(except advertising agency services, public relations agency services, 
media buying agency services, media representative services, display 
advertising services, direct mail advertising services, advertising 
material distribution services, and marketing consulting services). The 
SBA small business size standard for this industry classifies a 
business as small that has annual receipts of $16.5 million or less. 
U.S. Census Bureau data for 2017 shows that 5,650 firms operated in 
this industry for the entire year. Of that number, 3,693 firms operated 
with revenue of less than $10 million. Based on this data, we conclude 
that a majority of non-carrier RespOrgs who provide TFN-related 
management consulting services are small.
    63. The Other Management Consulting Services industry contains 
establishments primarily engaged in providing management consulting 
services (except administrative and general management consulting; 
human resources consulting; marketing consulting; or process, physical 
distribution, and logistics consulting). Establishments providing 
telecommunications or utilities management consulting services are 
included in this industry. The SBA small business size standard for 
this industry classifies a business as small if it has annual receipts 
of $16.5 million or less. U.S. Census Bureau data for 2017 shows that 
4,696 firms operated in this industry for the entire year. Of that 
number, 3,700 firms had revenue of less than $10 million. Based on this 
data, we conclude that a majority of non-carrier RespOrgs who provide 
TFN-related management consulting services are small.

E. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements

    64. The Report and Order does not adopt any new reporting, 
recordkeeping, or other compliance requirements.

F. Steps Taken To Minimize Significant Economic Impact on Small 
Entities and Significant Alternatives Considered

    65. 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.
    66. In the Report and Order, the Commission adopted a methodology 
for calculating the regulatory fee for small satellites (a type of non-
geostationary orbit space station) at a much lower amount than non-
geostationary orbit space stations are assessed. This was designed to 
allow small satellites, which may be licensed by small entities, to 
operate without the financial burden of the alternative, i.e., paying 
the regulatory fee for non-geostationary orbit space stations. This new 
methodology was adopted specifically to minimize the economic burden 
for these small satellite systems. The Commission considered other 
options raised by commenters to calculate the regulatory fee for small 
satellites but ultimately determined, based on the record, that the 
adopted methodology best recognizes the limited regulatory work 
associated with small satellite licenses and results in a relatively 
low regulatory fee for small satellites.
    67. Additionally, the Commission has minimized the economic impact 
on small entities by adopting a de minimis threshold under the section 
9(e)(2) exemption in the Communications Act. Under the section 9(e)(2) 
exemption of the Communications Act, a regulatee is exempt from paying 
regulatory fees if the sum total of all of its annual regulatory fee 
liabilities is $1,000 or less for the fiscal year. The threshold 
applies only to annual regulatory fees, not regulatory fees paid 
through multi-year filings.

G. Report to Congress

    68. The Commission will send a copy of the Report and Order and 
Notice of Proposed Rulemaking, including this FRFA, in a report to be 
sent to Congress and the Government Accountability Office pursuant to 
the Small Business Regulatory Enforcement Fairness Act of

[[Page 38295]]

1996. In addition, the Commission will send a copy of the Report and 
Order and Notice of Proposed Rulemaking, including the FRFA, to the 
Chief Counsel for Advocacy of the Small Business Administration. A copy 
of the Report and Order and Notice of Proposed Rulemaking and FRFA (or 
summaries thereof) will also be published in the Federal Register.

IV. Ordering Clauses

    69. Accordingly, it is ordered that, pursuant to sections 47 U.S.C. 
4(i), 4(j), 9, 9A, and 303(r) of the Communications Act of 1934, as 
amended, 47 U.S.C. 154(i), 154(j), 159, 159A, and 303(r), the Report 
and Order is hereby adopted.
    70. It is further ordered that paragraphs 21-42 of this document 
adopting the small satellite fee methodology shall be effective on 
September 1, 2022.
    71. It is further ordered that the Commission shall send a copy of 
the Report and Order, including the Final Regulatory Flexibility 
Analysis and the Initial Regulatory Flexibility Analysis, in a report 
to be sent to the Congress and the Government Accountability Office 
pursuant to the Congressional Review Act, 5 U.S.C. 801(a)(1)(A).
    72. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of the Report and Order and Final Regulatory Flexibility Analysis 
to the Chief Counsel for Advocacy of the Small Business Administration.

Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2022-13439 Filed 6-27-22; 8:45 am]
BILLING CODE 6712-01-P