38286 Federal Register / Vol. 87, No. 123 / Tuesday, June 28, 2022 / Rules and Regulations 

■ 4. Section 52.377 is amended by 

adding paragraphs (u) and (v) to read as 

follows: 

§ 52.377 Control strategy: Ozone. 

* * * * * 

(u) Approval—Revisions to the 

Connecticut State Implementation Plan 

(SIP) submitted on December 21, 2020. 

The SIP revisions satisfy the 

requirement to implement reasonably 

available control technology (RACT) for 

sources of volatile organic compounds 

(VOC) and oxides of nitrogen (NOX) as 

a serious nonattainment area for 

purposes of the 2008 ozone standard, 

and also approves RACT for 

Connecticut for the 2015 ozone standard 

as a state containing a moderate 

nonattainment area and a marginal area 

that is located within the Ozone 

Transport Region. 

(v) Approval—Submittal from the 

Connecticut Department of Energy and 

Environmental Protection dated 

December 21, 2020, to address the 

nonattainment new source review 

(NNSR) requirements as a serious 

nonattainment area for the 2008 8-hour 

ozone standard for the Greater 

Connecticut and the New York-N. New 

Jersey-Long Island, NY-NJ-CT ozone 

nonattainment areas, and also approves 

NNSR for Connecticut for the 2015 

ozone standard as a state containing a 

moderate and a marginal nonattainment 

area and being located within the Ozone 

Transport Region as it meets the 

requirements for both the state’s 

marginal and moderate classifications. 

[FR Doc. 2022–13539 Filed 6–27–22; 8:45 am] 

BILLING CODE 6560–50–P 

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. 

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 


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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 nonsmall 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 


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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 nonsmall 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 PerLicense 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 


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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 perlicense 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 nonU.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 


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38290 Federal Register / Vol. 87, No. 123 / Tuesday, June 28, 2022 / Rules and Regulations 

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 nondomestic 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. 


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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 


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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 


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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 TollFree 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 noncarrier entities. Accordingly, the 


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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 wirelinebased 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 wirelessbased 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 NonCarrier 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 


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Federal Register / Vol. 87, No. 123 / Tuesday, June 28, 2022 / Rules and Regulations 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 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 9 

[PS Docket Nos. 20–291 and 09–14, FCC 

21–80; FRS 91583] 

911 Fee Diversion; New and Emerging 

Technologies 911 Improvement Act of 

2008 

Correction 

In rule document 2022–13230, 

appearing on pages 37237–37239, in the 

issue of Wednesday, June 22, 2022, 

make the following correction: 

On page 37238, in the first column, 

the first and second lines below the 

DATES heading should read: 

‘‘Effective date: This rule is effective 

June 22, 2022.’’ 

[FR Doc. C1–2022–13230 Filed 6–27–22; 8:45 am] 

BILLING CODE 0099–10–D 


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