44322 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

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

612, has been amended by the Small Business 

Regulatory Enforcement Fairness Act of 1996 

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

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

the Contract with America Advancement Act of 

1996 (CWAAA). 

2 47 U.S.C. 159. Consolidated Appropriations Act, 

2017, Division E—Financial Services and General 

Government Appropriations Act, 2017, Title V— 

Independent Agencies, Public Law 115–31 (May 5, 

2017), available at https://www.congress.gov/bill/ 

115th-congress/house-bill/244/text. 3Assessment and Collection of Regulatory Fees 

for Fiscal Year 2017, Notice of Proposed 

Rulemaking, 32 FCC Rcd 4526 (FY 2017 NPRM); 82 

FR 26019, June 6, 2017. 4 47 U.S.C. 159(g) (showing original fee schedule 

prior to Commission amendment). 

Authority: 42 U.S.C. 7401 et seq. 

Subpart SS—Texas 

■ 2. In § 52.2270(e) the table titled ‘‘EPA 

approved nonregulatory provisions and 

quasi-regulatory measures in the Texas 

SIP’’ is amended by adding three new 

entries at the end. 

The additions read as follows: 

§ 52.2270 Identification of plan. 

* * * * * 

(e) * * * 

EPA APPROVED NONREGULATORY PROVISIONS AND QUASI-REGULATORY MEASURES IN THE TEXAS SIP 

Name of SIP provision Applicable geographic or 

non-attainment area 

State 

submittal/ 

effective date 

EPA approval date Comments 

*******

Conditional approval of NOX RACT finding for the Martin Marietta (formerly 

Texas Industries, Inc., or TXI) cement 

manufacturing plant under the 2008 8- 

Hour ozone NAAQS.

Ellis County, TX ..................................... 07/10/15 09/22/17, [Insert FR 

page number 

where document 

begins].

TCEQ commitment 

letter of July 29, 

2016. 

NOX RACT finding under the 2008 8- 

Hour ozone NAAQS.

Collin, Dallas, Denton, Tarrant, Ellis, 

Johnson, Kaufman, Parker, Rockwall, 

and Wise Counties, TX.

07/10/15 09/22/17, [Insert FR 

page number 

where document 

begins].

DFW as Moderate 

and Serious. 

NOX RACT finding of negative declarations for nitric acid and adipic acid operations under the 2008 8-Hour ozone 

NAAQS.

Collin, Dallas, Denton, Tarrant, Ellis, 

Johnson, Kaufman, Parker, Rockwall, 

and Wise Counties, TX.

07/10/15 09/22/17, [Insert FR 

page number 

where document 

begins].

DFW as Moderate 

and Serious. 

* * * * * 

[FR Doc. 2017–20131 Filed 9–21–17; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 1 

[MD Docket No. 17–134; FCC 17–111] 

Assessment and Collection of 

Regulatory Fees for Fiscal Year 2017 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule. 

SUMMARY: In this document, the 

Commission revises its Schedule of 

Regulatory Fees to recover an amount of 

$356,710,992 that Congress has required 

the Commission to collect for fiscal year 

2017. Section 9 of the Communications 

Act of 1934, as amended, provides for 

the annual assessment and collection of 

regulatory fees under sections 9(b)(2) 

and 9(b)(3), respectively, for annual 

‘‘Mandatory Adjustments’’ and 

‘‘Permitted Amendments’’ to the 

Schedule of Regulatory Fees. 

DATES: Effective September 22, 2017. To 

avoid penalties and interest, regulatory 

fees should be paid by the due date of 

September 26, 2017. 

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 17–111, MD Docket No. 

17–134, adopted on September 1, 2017 

and released on September 5, 2017. The 

full text of this document is available for 

public inspection and copying during 

normal business hours in the FCC 

Reference Center (Room CY–A257), 445 

12th Street SW., Washington, DC 20554, 

or by downloading the text from the 

Commission’s Web site at http://

transition.fcc.gov/Daily_Releases/Daily_

Business/2017/db0906/FCC-17- 

111A1.pdf. 

I. Administrative Matters 

A. Final Regulatory Flexibility Analysis 

1. As required by the Regulatory 

Flexibility Act of 1980 (RFA),1 the 

Commission has prepared a Final 

Regulatory Flexibility Analysis (FRFA) 

relating to this Report and Order. The 

FRFA is located towards the end of this 

document. 

B. Final Paperwork Reduction Act of 

1995 Analysis 

2. This document does not contain 

new or modified information collection 

requirements subject to the Paperwork 

Reduction Act of 1995 (PRA), Public 

Law 104–13. In addition, therefore, it 

does not contain any new or modified 

information collection burden for small 

business concerns with fewer than 25 

employees, pursuant to the Small 

Business Paperwork Relief Act of 2002, 

Public Law 107–198, see 44 U.S.C. 

3506(c)(4). 

C. Congressional Review Act. 

3. The Commission will send a copy 

of the Report and Order to Congress and 

the Government Accountability Office 

pursuant to the Congressional Review 

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

II. Introduction 

4. The Report and Order adopts a 

schedule of regulatory fees to assess and 

collect $356,710,992 in regulatory fees 

for fiscal year (FY) 2017, pursuant to 

section 9 of the Communications Act of 

1934, as amended (Communications Act 

or Act) and the Commission’s FY 2017 

Appropriation.2 The schedule of 

regulatory fees for FY 2017 adopted here 

is listed in Table 4. These regulatory 

fees are due in September 2017. The FY 

2017 regulatory fees are based on the 

proposals in the FY 2017 NPRM,3

considered in light of the comments 

received and Commission analysis. 

III. Background 

5. Congress adopted a regulatory fee 

schedule in 1993 4 and authorized the 

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44323 

5 47 U.S.C. 159. 

6 47 U.S.C. 159(b)(1)(B). 

7 47 U.S.C. 159(b)(2). 

8 47 U.S.C. 159(b)(1)(A). 

9Assessment and Collection of Regulatory Fees 

for Fiscal Year 2004, Report and Order, 19 FCC Rcd 

11662, 11666, para 11 (FY 2004 Report and Order); 

69 FR 41028, July 7, 2004. For example, 

governmental and nonprofit entities are exempt 

from regulatory fees under section 9(h) of the Act. 

47 U.S.C. 159(h); 47 CFR 1.1162. 

10 47 CFR 1.1166. 

11One FTE, a ‘‘Full Time Equivalent’’ or ‘‘Full 

Time Employee,’’ is a unit of measure equal to the 

work performed annually by a full-time person 

(working a 40 hour workweek for a full year) 

assigned to the particular job, and subject to agency 

personnel staffing limitations established by the 

U.S. Office of Management and Budget. 

12Section 9(b)(2) discusses mandatory 

amendments to the fee schedule and Section 9(b)(3) 

discusses permissive amendments to the fee 

schedule. Both mandatory and permissive 

amendments are not subject to judicial review. 47 

U.S.C. 159(b)(2) and (3). 

13 47 U.S.C. 159(b)(1)(A). When section 9 was 

adopted, the total FTEs were to be calculated based 

on the number of FTEs in the Private Radio Bureau, 

Mass Media Bureau, and Common Carrier Bureau. 

(The names of these bureaus were subsequently 

changed.) Satellites, earth stations, and 

international bearer circuits were regulated through 

the Common Carrier Bureau before the International 

Bureau was created. 

14As of September 2016, for regulatory fee 

purposes, excluding auctions-funded FTEs, the 

direct FTEs are Wireline Bureau (167); Media 

Bureau (141); Wireless Bureau (92); and 

International Bureau (24), for a total of 424 direct 

FTEs. The indirect FTEs, for regulatory fee 

purposes, non-auctions-funded, are from the 

International Bureau (81), Enforcement Bureau 

(237), Consumer & Governmental Affairs Bureau 

(148), Public Safety & Homeland Security Bureau 

(101), Chairman and Commissioners’ offices (21), 

Office of the Managing Director (159), Office of 

General Counsel (77), Office of the Inspector 

General (43), Office of Communications Business 

Opportunities (9), Office of Engineering and 

Technology (78), Office of Legislative Affairs (11), 

Office of Strategic Planning and Policy Analysis 

(19), Office of Workplace Diversity (3), Office of 

Media Relations (16), and Office of Administrative 

Law Judges (4), totaling 1,007 indirect FTEs. The 

total direct and indirect FTEs number 1,431. 

15See Procedures for Assessment and Collection 

of Regulatory Fees, Notice of Proposed Rulemaking, 

27 FCC Rcd 8458, 8461–62, paras. 8–11 (2012) (FY 

2012 NPRM); 77 FR 49749, 49752–54, August 17, 

2012. 

16See Assessment and Collection of Regulatory 

Fees for Fiscal Year 2008, MD Docket No. 08–65, 

Report and Order and Further Notice of Proposed 

Rulemaking, 24 FCC Rcd 6388 (2008) (FY 2008 

Further Notice); 73 FR 50285, August 26, 2008. 

17Assessment and Collection of Regulatory Fees 

for Fiscal Year 2013, Report and Order, 28 FCC Rcd 

12351, 12354–58, paras. 10–20 (2013) (FY 2013 

Report and Order); 78 FR 52433, August 23, 2013. 

The Commission now updates the FTE allocations 

annually. This was recommended in a report issued 

by the Government Accountability Office (GAO) in 

2012. See GAO ‘‘Federal Communications 

Commission Regulatory Fee Process Needs to be 

Updated,’’ GAO–12–686 (Aug. 2012) (GAO Report) 

at 36 (available at http://www.gao.gov/products/ 

GAO-12-686). 

18 FY 2013 Report and Order, 28 FCC Rcd at 

12355–58, paras. 13–20; 78 FR 52433. 

19 Id., 28 FCC Rcd at 12361–62, paras. 29–31; 78 

FR 52433. 

20 Id., 28 FCC Rcd at 12362–63, paras. 32–33; 78 

FR 52433. 

21The ITSP category includes interexchange 

carriers (IXCs), incumbent local exchange carriers, 

toll resellers, and other IXC service providers. 

22Assessment and Collection of Regulatory Fees 

for Fiscal Year 2014, Report and Order and Further 

Notice of Proposed Rulemaking, 29 FCC Rcd 10767, 

10777–79, paras. 25–28 (2014) (FY 2014 Report and 

Order); 79 FR 54190, September 11, 2014. 

23 FY 2014 Report and Order, 29 FCC Rcd at 

10774–76, paras. 18–21; 79 FR 54190. 

24 Id., 29 FCC Rcd at 10776–77, paras. 22–24; 79 

FR 54190. 

25Assessment and Collection of Regulatory Fees 

for Fiscal Year 2015, Report and Order and Further 

Notice of Proposed Rulemaking, 30 FCC Rcd 10268, 

10273, para. 12 (2015) (FY 2015 Report and Order); 

80 FR 55775, September 17, 2015. 

26 FY 2015 Report and Order, 30 FCC Rcd at 

10276–77, paras. 19–20; 80 FR 55775. 

27 Id., 30 FCC Rcd at 10271–72, para. 9; 80 FR 

55775. 

28 Id., 30 FCC Rcd at 10278, para. 24; 80 FR 

55775. The Commission also, in the FY 2015 NPRM 

and Report and Order, eliminated two fee 

categories. See Assessment and Collection of 

Regulatory Fees for Fiscal Year 2015, Notice of 

Proposed Rulemaking, Report and Order, and 

Order, 30 FCC Rcd 5354, 5361–62, paras. 19–22 

(2015) (FY 2015 NPRM and Report and Order); 80 

FR 43019, July 21, 2015. 

Commission to assess and collect 

annual regulatory fees pursuant to the 

schedule, as amended by the 

Commission.5 The Commission 

annually reviews the regulatory fee 

schedule, proposes changes to the 

schedule to reflect changes in the 

amount of its appropriation, and 

proposes increases or decreases to the 

schedule of regulatory fees.6 The 

Commission makes changes to the 

regulatory fee schedule ‘‘if the 

Commission determines that the 

schedule requires amendment to 

comply with the requirements’’ 7 of 

section 9(b)(1)(A) of the Act.8 The 

Commission may also add, delete, or 

reclassify services in the fee schedule to 

reflect additions, deletions, or changes 

in the nature of its services ‘‘as a 

consequence of Commission rulemaking 

proceedings or changes in law.’’ 

Regulatory fees must also cover the 

costs the Commission incurs in 

regulating entities that are statutorily 

exempt from paying regulatory fees,9

entities whose regulatory fees are 

waived,10 and entities that provide 

nonregulated services. Thus, for each 

fiscal year, the Commission proposes a 

fee schedule in the annual Notice of 

Proposed Rulemaking that reflects 

changes in the amount appropriated for 

the performance of the Commission’s 

regulatory activities, changes in the 

industries represented by the regulatory 

fee payors, changes in FTE 11 levels, and 

any other issues of relevance to the 

proposed fee schedule.12 After 

reviewing the comments, the 

Commission issues a Report and Order 

adopting the fee schedule for the fiscal 

year and sets out the procedures for 

payment of fees. 

6. The Commission calculates the fees 

by first determining the number of FTEs 

performing the regulatory activities 

specified in section 9(a), ‘‘adjusted to 

take into account factors that are 

reasonably related to the benefits 

provided to the payor of the fee by the 

Commission’s activities . . . .’’ 13 FTEs 

are categorized as ‘‘direct’’ if they are 

performing regulatory activities in one 

of the ‘‘core’’ bureaus, i.e., the Wireless 

Telecommunications Bureau, Media 

Bureau, Wireline Competition Bureau, 

and part of the International Bureau. All 

other FTEs are considered ‘‘indirect.’’ 14

The total FTEs for each fee category is 

calculated by counting the number of 

direct FTEs in the core bureau that 

regulates that category, plus a 

proportional allocation of indirect FTEs. 

Next, the Commission allocates the total 

amount to be collected among the 

various regulatory fee categories. This 

allocation is based on the number of 

FTEs assigned to work in each 

regulatory fee category. Each regulatee 

within a fee category pays its 

proportionate share based on an 

objective measure, e.g., revenues, 

number of subscribers, or licenses.15

7. As part of its annual review, the 

Commission seeks to improve its 

regulatory fee analysis.16 For example, 

in the FY 2013 Report and Order, the 

Commission updated FTE allocations to 

more accurately reflect the number of 

FTEs working on regulation and 

oversight of the regulatees in the various 

fee categories; 17 reallocated some FTEs 

from the International Bureau as 

indirect; 18 combined the UHF and VHF 

television stations into one regulatory 

fee category; 19 and added Internet 

Protocol Television (IPTV) to the cable 

television fee category.20 In the FY 2014 

Report and Order, the Commission 

adopted a new fee subcategory for toll 

free numbers in the Interstate 

Telecommunications Service Provider 

(ITSP) 21 fee category; 22 increased the 

de minimis threshold to $500 for annual 

regulatory fee payors; 23 and eliminated 

several categories from the regulatory 

fee schedule.24 In the FY 2015 Report 

and Order, the Commission reduced the 

regulatory fee for submarine cable, 

terrestrial, and satellite international 

bearer circuits.25 The Commission also 

adopted a regulatory fee for DBS, as a 

subcategory of the cable television and 

IPTV fee category,26 and for toll-free 

numbers 27 and reallocated four 

International Bureau FTEs from direct to 

indirect.28 In the FY 2016 Report and 

Order, the Commission adjusted 

regulatory fees for radio and television 

44324 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

29Assessment and Collection of Regulatory Fees 

for Fiscal Year 2016, Report and Order, 31 FCC Rcd 

10339, 10350–51, paras. 31–33 (2016) (FY 2016 

Report and Order); 81 FR 65926, September 26, 

2016. 

30 FY 2016 Report and Order, 31 FCC Rcd at 

10347–350, paras. 25–30; 81 FR 65926. 

31 Id., 31 FCC Rcd at 10341, para. 7; 81 FR 65926. 

32Commenters to the FY 2017 NPRM are listed 

in Table 2. 

33 47 U.S.C. 159. Consolidated Appropriations 

Act, 2017, Division E—Financial Services and 

General Government Appropriations Act, 2017, 

Title V—Independent Agencies, Public Law 115–31 

(May 5, 2017), available at https://

www.congress.gov/bill/115th-congress/house-bill/ 

244/text. 

34Section 9 regulatory fees are mandated by 

Congress and collected to recover the regulatory 

costs associated with the Commission’s 

enforcement, policy and rulemaking, user 

information, and international activities. 47 U.S.C. 

159(a). 

35 Includes satellites, earth stations, and 

international bearer circuits (submarine cable 

systems and satellite and terrestrial bearer circuits). 

36 Includes Commercial Mobile Radio Service 

(CMRS), CMRS messaging, Broadband Radio 

Service/Local Multipoint Distribution Service (BRS/ 

LMDS), and multi-year wireless licensees. 

37 Includes ITSP and toll free numbers. 

38 Includes AM radio, FM radio, television 

(including low power and Class A), TV/FM 

translators and boosters, cable television and IPTV, 

DBS, and Cable Television Relaty Service (CARS) 

licenses. 

39 47 U.S.C. 159(b)(1)(A). 

40 FY 2013 Report and Order, 28 FCC Rcd at 

12357, para. 19; 78 FR 52433. The Commission 

observed that the International Bureau was a 

‘‘singular case’’ because the work of those FTEs 

‘‘primarily benefits licensees regulated by other 

bureaus.’’ Id., 28 FCC Rcd at 12355, para. 14; 78 FR 

52433. 

41See Connect America Fund, et al., Report and 

Order and Further Notice of Proposed Rulemaking, 

26 FCC Rcd 17663 (2011); 76 FR 78384, December 

16, 2011. 

42 FY 2017 NPRM, 32 FCC Rcd at 4529–4530, 

para. 10; 82 FR 26019. 

43The FCC Time and Attendance system does not 

provide a breakdown of USF work by technology 

or bureau. 

44 47 CFR 54.706(a). 

45 FY 2017 NPRM, 32 FCC Rcd at 4529, para. 9; 

82 FR 26019. 

46 ‘‘The schools and libraries universal service 

support program, commonly known as the E-rate 

program, helps schools and libraries to obtain 

affordable broadband . . . . Eligible schools, school 

districts and libraries may apply individually or as 

part of a consortium [for] . . . category one services 

to a school or library (telecommunications, 

telecommunications services and Internet access), 

and category two services that deliver Internet 

access within schools and libraries (internal 

connections, basic maintenance of internal 

connections, and managed internal broadband 

services).’’ See FCC Web site, ‘‘E-Rate—Schools & 

Libraries USF Program,’’ available at https://

broadcasters, based on the type and 

class of service and on the population 

served; 29 adopted an increase in the 

regulatory fee for DBS providers within 

the cable television and IPTV regulatory 

fee category; 30 and adopted an across 

the board fee increase for the 

Commission’s moving expenses.31 In 

this proceeding, the Commission 

continues to improve and reform the 

regulatory fee process. 

8. In our FY 2017 NPRM, we proposed 

to collect $356,710,992 in regulatory 

fees and included a detailed, proposed 

fee schedule. We received 17 comments 

and six reply comments.32

IV. Report and Order 

9. In this FY 2017 Report and Order, 

we adopt a regulatory fee schedule for 

FY 2017, pursuant to section 9 of the 

Communications Act and the 2017 

Consolidated Appropriations Act 33 in 

order to collect $356,710,992 in 

regulatory fees.34 Of this amount, we 

project approximately $22.17 million 

(6.22 percent of the total FTE allocation) 

in fees from the International Bureau 

regulatees; 35 $88.69 million (24.86 

percent of the total FTE allocation) in 

fees from the Wireless 

Telecommunications Bureau 

regulatees; 36 $115.58 million (32.40 

percent of the total FTE allocation) from 

Wireline Competition Bureau 

regulatees; 37 and $130.27 million (36.52 

percent of the total FTE allocation) from 

the Media Bureau regulatees.38 These 

regulatory fees are due in September 

2017. The schedule of regulatory fees for 

FY 2017 adopted here is listed in Table 

4. 

A. Allocating FTEs for Regulatory Fee 

Purposes 

10. Under section 9 of the Act, 

regulatory fees are to ‘‘be derived by 

determining the full-time equivalent 

number of employees performing’’ these 

activities, ‘‘adjusted to take into account 

factors that are reasonably related to the 

benefits provided to the payor of the fee 

by the Commission’s activities . . . ’’ 39

As a general matter, we reasonably 

expect that the work of the FTEs in the 

core bureaus should remain focused on 

the industry segment regulated by each 

of those bureaus. The work of the FTEs 

in the indirect bureaus and offices 

benefits the Commission and the 

telecommunications industry and is not 

specifically focused on the regulatees 

and licensees of a core bureau. Given 

the significant implications of 

reassignment of FTEs in our fee 

calculation, we make changes to FTE 

classifications only after performing 

considerable analysis and finding the 

clearest case for reassignment.40

11. In the FY 2017 NPRM, we 

proposed to reallocate 38 FTEs in the 

Wireline Competition Bureau associated 

with Universal Service Fund work as 

indirect and to reallocate four FTEs 

from the Wireline Competition Bureau 

that work on wireless numbering issues 

to the Wireless Telecommunications 

Bureau due to the changes to the 

Universal Service regulatory landscape 

that no longer affect only ITSPs and the 

fact that approximately half the benefit 

of the work done by FTEs on numbering 

issues accrue to the CMRS industry. 

1. FTEs Associated With the Universal 

Service Fund 

12. In the FY 2017 NPRM, the 

Commission explained that changes to 

the Universal Service Fund regulatory 

landscape require us to reexamine the 

treatment of Universal Service Fund 

FTEs as direct FTEs. There are currently 

approximately 51 FTEs in the Wireline 

Competition Bureau, including the 

bureau front office, working on 

Universal Service Fund issues, with 13 

of those FTEs focused on the High-Cost 

program. Currently, there are 

approximately three FTEs in the 

Wireless Telecommunications Bureau, 

including the bureau front office, 

implementing the Mobility Fund, a 

universal service High-Cost support 

mechanism devoted exclusively to 

mobile services.41 These Wireline 

Competition Bureau and Wireless 

Telecommunications Bureau FTEs are 

considered direct FTEs for regulatory 

fee purposes. Other FTEs throughout the 

Commission working on universal 

service issues are indirect FTEs, 

including the FTEs working on 

universal service issues in the 

Enforcement Bureau, the Office of the 

Managing Director, the Office of the 

Inspector General, and the Office of the 

General Counsel. 

13. In the FY 2017 NPRM, we 

proposed to reallocate the 38 FTEs in 

the Wireline Competition Bureau 

assigned to work on the non-high-cost 

programs of the Universal Service Fund 

as indirect for regulatory fee purposes, 

for several reasons.42 The 38 FTE count 

is based on coordination between the 

Office of Managing Director and 

Wireline Competition Bureau staff 

which analyzed how many FTEs work 

on each of the USF programs.43 In doing 

so, we noted that contributions to the 

Universal Service Fund are required 

from service providers using any 

technology that has end-user interstate 

telecommunications.44 As we discussed 

in the FY 2017 NPRM, continuing 

changes in the universal service fund 

regulatory landscape requires us to 

reexamine the appropriateness of 

treating the FTEs working on universal 

service issues as Wireline Competition 

Bureau direct FTEs.45 Initially, 

universal service programs were focused 

on wireline services, but now wireless 

carriers, and more recently broadband 

providers, are involved in the E-Rate,46

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44325 

www.fcc.gov/general/e-rate-schools-libraries-usfprogram#block-menu-block-4 (last visited July 17, 

2017). 

47 ‘‘Since 1985, the Lifeline program has provided 

a discount on phone service for qualifying lowincome consumers . . . . The Lifeline program is 

available to eligible low-income consumers in every 

state, territory, commonwealth, and on Tribal lands 

. . . . In . . . 2016 . . . the Commission included 

broadband as a support service in the Lifeline 

program.’’ See FCC Web site, ‘‘Lifeline Program for 

Low-Income Consumers,’’ available at https://

www.fcc.gov/general/lifeline-program-low-incomeconsumers#block-menu-block-4 (last visited July 17, 

2017). 

48 ‘‘The Rural Health Care Program, which 

includes the new Healthcare Connect Fund, 

provides funding to eligible health care providers 

(HCPs) for telecommunications and broadband 

services necessary for the provision of health care. 

The goal of the program is to improve the quality 

of health care available to patients in rural 

communities by ensuring that eligible HCPs have 

access to telecommunications and broadband 

services.’’ See FCC Web site, ‘‘Rural Health Care 

Program,’’ available at https://www.fcc.gov/general/ 

rural-health-care-program#block-menu-block-4 (last 

visited July 17, 2017). 

49 FY 2017 NPRM, 32 FCC Rcd at 4530, para. 10; 

82 FR 26019. 

50 Id. 

51 Id. 

52See USAC Web site, 2017 E-Rate Eligible 

Services List, available at http://www.usac.org/sl/ 

applicants/beforeyoubegin/eligible-serviceslist.aspx (last visited July 28, 2017); USAC Web site 

Rural Healthcare Eligible Services, available at 

http://www.usac.org/rhc/telecommunications/ 

health-care-providers/step01/eligible-services.aspx 

(last visited July 28, 2017). See also Universal 

Service Administrative Company Third Quarter 

2017 FCC Filings (E-rate and Rural Healthcare), 

available at http://www.usac.org/about/tools/fcc/ 

filings/2017/q3.aspx (last visited July 28, 2017). 

53 Id. 

54 ITTA Comments at 5; Frontier Comments at 3; 

CTIA Reply Comments at 4–5. 

55CenturyLink Comments at 4. 

56SIA Comments at 2–3; SIA Comments at 2 

(observing that no satellite operator has yet been 

designated an eligible telecommunications carrier, 

or ETC, which is required for Lifeline funding). 

57 ITTA Comments at 6. CenturyLink also 

supports allocating four Wireline Competition 

Bureau FTEs as Wireless Telecommunications 

Bureau FTEs for regulatory fee purposes because 

‘‘wireless carriers now serve over 90% of Lifeline 

subscribers.’’ CenturyLink Reply Comments at 4. 

58Frontier Comments at 3–4. CenturyLink agrees 

with this proposal. See CenturyLink Reply 

Comments at 3–4. 

59CTIA Reply Comments at 6. 

60 ITTA Comments at 2. 

61 ITTA Comments at 3 (emphasis added). 

62See ITTA Comments at 10–11; Frontier 

Comments at 6–7; CenturyLink Reply Comments at 

4–5. 

Lifeline,47 and Rural Healthcare 48

programs. 

In addition, three of the universal 

service fund programs—E-Rate, Lifeline, 

and Rural Healthcare—tie funding 

eligibility to the beneficiary, i.e., a 

school, a library, a low-income 

individual or family, or a rural 

healthcare provider, and not to 

Commission regulatees.49 Wireless 

carriers now serve a substantial, if not 

majority, of Lifeline subscribers.50 Also, 

satellite operators, Wi-Fi network 

installers, and fiber builders may all 

receive funding through the E-Rate and 

Rural Healthcare universal service 

programs.51 Similarly, multichannel 

video programming distributors 

(MVPDs), who also provide supported 

services, receive universal service 

funding through participation in both 

the E-rate and Rural Healthcare 

programs because they provide 

telecommunications and Internet access 

services that are eligible for support in 

those programs.52 And given that the 

applicants in these programs are not 

even regulatees—instead, they are the 

schools and libraries and healthcare 

providers—the bulk of the 

Commission’s oversight of these 

programs (i.e., the costs incurred that 

create a need for regulatory fees) are not 

generated by regulatees. Indeed, seven 

of the ten E-Rate forms that make up the 

bulk of the Commission’s oversight of 

the program are filed by schools and 

libraries, not service providers. 

Similarly, seven of the nine rural 

healthcare program forms are filed by 

healthcare providers, not service 

providers. In other words, ITSPs are not 

the sole or even majority contributors or 

beneficiaries of these three programs. 

Reallocating these Wireline Competition 

Bureau FTEs as indirect FTEs would be 

more consistent with how FTEs working 

on universal service issues are treated 

elsewhere in the Commission, e.g., 

similar to the 10 FTEs working on USF 

matters in the Enforcement Bureau, the 

5 FTEs in the Office of the Managing 

Director, the 10 FTEs in the Office of the 

Inspector General, and the 5 FTEs in the 

Office of the General Counsel.53

14. ITTA and Frontier support the 

proposal in the FY 2017 NPRM to 

reallocate 38 Wireline Competition 

Bureau FTEs as indirect, and CTIA 

argues that if the Commission 

reclassifies any of these FTEs, they 

should be reallocated as indirect.54

CenturyLink also agrees with this 

proposal and observes that the concern 

that the reallocation would impose a 

burden on broadcasters which do not 

participate in the universal service 

program is misplaced ‘‘as there is no 

completely pure way to precisely 

allocate every Commission FTE.’’ 55

After consideration of the record on this 

issue and for the reasons discussed in 

the FY 2017 NPRM, i.e., that ITSPs are 

no longer the sole contributors or 

beneficiaries of the E-Rate, Lifeline, and 

Rural Healthcare programs and 

allocating these Wireline Competition 

Bureau FTEs as indirect FTEs would be 

more consistent with how FTEs working 

on universal service issues are treated 

elsewhere in the Commission, we adopt 

the proposal to reallocate 38 FTEs in the 

Wireline Competition Bureau assigned 

to work on the non-high-cost programs 

of the Universal Service Fund as 

indirect. The regulatory fee rates set 

forth in Appendix C reflect this 

reallocation of FTEs for regulatory fee 

purposes. 

15. We disagree with SIA’s argument 

that such a reallocation of FTEs from 

direct to indirect is ‘‘premature’’ 

because satellite operators do not yet 

benefit from the contributions of the 

FTEs working on universal service fund 

issues.56 The FTEs working on these 

universal service issues have already 

devoted substantial time to making sure 

that satellite operators are eligible to 

participate in these programs, such as 

by becoming ETCs or being eligible for 

funding under the Rural Healthcare 

program or E-Rate. Permitting satellite 

operators into the USF programs uses 

FTE resources at the beginning of a 

satellite operators’ participation. And 

some satellite providers have begun to 

take advantage of that eligibility in, for 

example, the Rural Healthcare program. 

Thus, these FTEs are both overseeing 

satellite operators and benefiting 

satellite operators, making reallocation 

appropriate. 

16. ITTA and Frontier suggest that we 

also reallocate to the Wireless 

Telecommunications Bureau and/or 

Media Bureau direct FTEs working on 

universal service high cost issues.57

Frontier argues that we should 

reallocate FTEs working on High-Cost 

Fund issues as indirect FTEs because all 

universal service programs, including 

the High-Cost Fund, ‘‘benefit the public 

and all members of the Internet 

ecosystem, not specifically or uniquely 

wireline companies.’’ 58 CTIA opposes 

the proposal to reallocate FTEs working 

on High-Cost issues, and observes that 

ITTA and Frontier have failed to show 

a clear case for reclassification of the 

Wireline Competition Bureau FTEs.59

We agree with CTIA that the case for 

reallocation has not been made at this 

time. 

17. Several parties also ask that we go 

farther. For example, ITTA argues that 

the Wireline Competition Bureau FTEs 

are ‘‘no longer focused exclusively on 

ITSPs’’ 60 and the Commission ‘‘must 

make adjustments to ensure that its 

regulatory fees reflect its actual costs by 

industry sector.’’ 61 Similarly, ITTA, 

Frontier, and CenturyLink also argue 

that we should combine CMRS into the 

ITSP category.62 We do not believe the 

case has been made for such large 

changes at this time, because (among 

44326 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

63 FY 2017 NPRM, 32 FCC Rcd at 4530, para. 13; 

82 FR 26019. 

64 47 U.S.C. 159(b)(1)(A). 

65See Industry Analysis and Technology 

Division, Wireline Competition Bureau, FCC, Voice 

Telephone Services: Status as of December 31, 

2015, at 2 Figure 1 (2016). 

66 ITTA Comments at 9–10; CenturyLink 

Comments at 5 & Reply Comments at 5; Frontier 

Comments at 5–6. 

67 47 U.S.C. 159(b)(1)(A). 

68See Industry Analysis and Technology 

Division, Wireline Competition Bureau, FCC, Voice 

Telephone Services: Status as of December 31, 

2015, at 2 Figure 1 (2016). 

69AT&T and DIRECTV merged in 2015. See 

Applications of AT&T and DIRECTV for Consent to 

Assign or Transfer Control of Licenses and 

Authorizations, Memorandum Opinion and Order, 

30 FCC Rcd 9131 (2015). 

70MVPD is defined in section 602(13) of the Act, 

47 U.S.C. 522(13). DBS subscribers were 33.2 

percent of all MVPD subscribers at the end of 2015. 

See Annual Assessment of the Status of 

Competition in the Market for the Delivery of Video 

Programming, Eighteenth Report, 32 FCC Rcd 568, 

575, para. 19 (2017) (Eighteenth Competition 

Report) (citing SNL Kagan, U.S. Multichannel 

Industry Benchmarks). 

71 GAO Report at 17–20. 

72 FY 2015 NPRM, 30 FCC Rcd at 5368, para. 32; 

80 FR 37206. 

73 FY 2015 Report and Order, 30 FCC Rcd at 

10276–77, paras. 19–20; 80 FR 55775. 

74 FY 2015 NPRM, 30 FCC Rcd at 5367–68, para. 

31; 80 FR 37206. 

75 Id., 30 FCC Rcd at 5368, para. 32; 80 FR 37206. 

76 FY 2016 Report and Order, 31 FCC Rcd at 

10348–49, para. 26; 81 FR 65926. 

77 FY 2017 NPRM, 32 FCC Rcd at 4531–32, paras. 

15–17; 82 FR 26019. 

78 FY 2017 NPRM, 32 FCC Rcd at 4532, para. 17; 

82 FR 26019. 

other things) advocates of such changes 

have not fully accounted for the 

substantial differences in regulatory 

oversight between different groups of 

regulatees nor the fact that allocating 

regulatory fees is not and cannot be an 

exact science. On the last point, it 

would be nigh impossible to determine 

the precise costs attributable to FTEs 

and the precise benefits flowing from 

Commission regulation to any one 

regulatee, let alone a particular crosssection of regulatees or even an entire 

industry—not to mention the 

complications associated with 

regulatees statutorily exempt from 

paying regulatory fees (such as 

governmental licensees) and with 

beneficiaries (such as schools and 

libraries) that are not regulatees, all of 

whom nonetheless create costs that 

must be recovered. As such the 

Commission has long taken an 

incrementalist approach, requiring 

substantial and specific evidence about 

regulatory burdens and benefits before 

making changes to the allocation of fees. 

And those seeking to change our 

allocations even further have not yet 

made the case for doing so. 

18. After reviewing the record, we 

conclude that our proposal in the FY 

2017 NPRM to reallocate 38 FTEs in the 

Wireline Competition Bureau assigned 

to work on the non-high cost programs 

of the Universal Service Fund as 

indirect for regulatory fee purposes is 

warranted and consistent with section 9 

of the Act. We therefore adopt the 

proposal in the FY 2017 NPRM. The 

regulatory fee rates set forth in Table 4 

reflect this reallocation of FTEs. 

2. FTEs Associated With Numbering 

Issues 

19. In the FY 2017 NPRM, we 

estimated that seven to eight FTEs in the 

Wireline Competition Bureau work on 

numbering issues.63 We proposed to 

reallocate for regulatory fee purposes 

four of these direct FTEs from the 

Wireline Competition Bureau to the 

Wireless Telecommunications Bureau 

‘‘to take into account factors that are 

reasonably related to the benefits 

provided to the payor of the fee by the 

Commission’s activities . . . .’’ 64

Specifically, we estimated 

approximately half of the benefit of the 

work of these FTEs accrue to Wireless 

Telecommunications Bureau 

regulatees.65 Commenters agree with 

our proposal to reallocate four of the 

Wireline Competition Bureau FTEs that 

work on numbering issues to the 

Wireless Telecommunications Bureau as 

direct FTEs for regulatory fee 

purposes.66

20. After reviewing the record, we 

conclude that reallocating four FTEs in 

the Wireline Competition Bureau 

assigned to work on numbering issues to 

the Wireless Telecommunications 

Bureau for regulatory fee purposes is 

warranted and consistent with section 9 

of the Act. Reallocating four direct FTEs 

from the Wireline Competition Bureau 

to the Wireless Telecommunications 

Bureau will ‘‘take into account factors 

that are reasonably related to the 

benefits provided to the payor of the fee 

by the Commission’s activities’’ 67

because approximately half of the 

benefit of the work of these FTEs accrue 

to Wireless Telecommunications Bureau 

regulatees.68 We therefore adopt our 

proposal to reallocate for regulatory fee 

purposes four direct FTEs from the 

Wireline Competition Bureau to the 

Wireless Telecommunications Bureau. 

The regulatory fee rates set forth in 

Appendix C reflect this reallocation of 

FTEs. 

B. Direct Broadcast Satellite (DBS) 

Regulatory Fees 

21. 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. The 

two DBS providers, AT&T 69 and DISH 

Network, are MVPDs.70 Following the 

2012 GAO Report, in which the GAO 

observed that an evaluation of Media 

Bureau FTEs was long overdue,71 the 

Commission concluded that the Media 

Bureau FTEs regulate the DBS industry 

together with the other MVPDs.72

Subsequently, the Commission adopted 

a regulatory fee for DBS as a subcategory 

in the cable television and IPTV 

category, of 12 cents per year per 

subscriber.73 This regulatory fee 

subcategory was based on Media Bureau 

FTE activity involving regulation and 

oversight of all MVPDs, which included 

DBS providers.74

22. As the Commission discussed in 

the FY 2015 NPRM, the DBS providers 

were established as large MVPDs by 

2015 and significant Media Bureau FTE 

resources were used in regulation and 

oversight of all MVPDs, including 

DBS.75 The Commission concluded 

there was no reasonable basis to 

continue to exclude DBS providers from 

sharing in the cost of MVPD oversight 

and regulation with cable television and 

IPTV. In lieu of directly including DBS 

providers in the cable television/IPTV 

category at the same regulatory fee rate, 

the Commission elected to phase in the 

new Media Bureau-based regulatory fee 

for DBS, starting at 12 cents per 

subscriber, per year. Since then, the 

Commission has increased the DBS 

regulatory fee each year, to bring it 

closer to the per-subscriber rate paid by 

cable television and IPTV. In the FY 

2016 regulatory fee proceeding, the 

Commission increased the regulatory fee 

for DBS providers to 24 cents, plus an 

across-the-board increase of three cents 

for the Commission’s moving expenses, 

for a total of 27 cents per subscriber, per 

year.76 In the FY 2017 NPRM, the 

Commission noted that the Media 

Bureau resources focused on MVPD 

proceedings (including DBS) supported 

continuing to bring the DBS rate closer 

to the cable television/IPTV per 

subscriber rate.77 At that time, we 

proposed a regulatory fee rate of 36 

cents per subscriber per year, plus two 

cents due to the increase in the 

Commission’s budget for moving 

expenses, for a total of 38 cents per 

subscriber per year for FY 2017.78 As we 

discuss below, we are adopting the 

proposed rate of 38 cents per subscriber, 

per year in this Report and Order, in our 

effort to bring the DBS rate closer to the 

cable television/IPTV per subscriber 

rate. 

23. We agree with the commenters 

representing the cable television 

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44327 

79For example, as ACA observes, DBS providers 

have been actively involved in the Media Bureau’s 

proceeding implementing the Satellite Television 

Extension and Localism Act Reauthorization Act of 

2014 (STELAR) and in the market modification 

proceedings that STELAR directed the Commission 

to expand to satellite DBS carriage. The STELA 

Reauthorization Act of 2014 (STELAR), Pub. L. 

113–200, 128 Stat. 2059 (2014); Amendment to the 

Commission’s Rules Concerning Market 

Modification, Implementation of Section 102 of the 

STELA Reauthorization Act of 2014, Report and 

Order, 30 FCC Rcd 10406 (80 FR 59635, October 2, 

2015) (adopting satellite television market 

modification rules). See, e.g., Gray Television 

Licensee, LLC, Petition for Modification of the 

Satellite Televisions Market for WSAW–TV, 

Wausau, Wisconsin, MB Docket No. 16–293, 

DirecTV, LLC Response to Petition for Special 

Relief (filed Oct. 6, 2016); Amendment to the 

Commission’s Rules Concerning Market 

Modification, Implementation of Section 102 of the 

STELA Reauthorization Act of 2014, MB Docket No. 

15–71, DISH Network LLC Market Modification PreFiling Coordination Letter for Monongalia County, 

West Virginia (filed May 23, 2017). 

AT&T and DISH have also been involved in the 

Commission’s ATSC 3.0 rulemaking. See, e.g., 

Authorizing Permissive Use of the ‘‘Next 

Generation’’ Broadcast Television Standard, GN 

Docket No. 16–142, Comments of DISH Network 

LLC (filed May 9, 2017); Reply Comments of AT&T 

(filed June 8, 2017). AT&T and DISH Network were 

also active participants in the Media Bureau’s 2016 

public notice proceeding. See, e.g., Media Bureau 

Seeks Comment on Joint Petition for Rulemaking of 

America’s Public Television Stations, the AWARN 

Alliance, the Consumer Technology Association, 

and the National Association of Broadcasters 

Seeking to Authorize Permissive Use of the ‘‘Next 

Generation TV’’ Broadcast Television Standard, GN 

Docket No. 16–142, Comments of DISH Network, 

LLC (filed May 26, 2016); Comments of AT&T (filed 

May 26, 2016). 

80ACA Comments at 2 (quoting FY 2017 NPRM, 

32 FCC Rcd at 4531, para. 15; 82 FR 26019); NCTA 

Comments at 3. 

81ACA Comments at 3–6; NCTA Comments at 3– 

5. 

82NCTA Comments at 5–7. 

83NCTA Comments at 7–8. 

84 DISH and AT&T Comments at 3. 

85The current least expensive promotional rate 

for new DBS subscribers is approximately $50 per 

month for 12 months (not including taxes or leasing 

charges). Even if the regulatory fee were 72 cents 

per subscriber per year, approximately what it 

would be at parity with cable television/IPTV, it 

would equal 0.12% of the lowest introductory 

monthly fee for DBS ($600 × .0012 = $0.72). See 

https://www.directv.com/DTVAPP/pepod/ 

configure.jsp#package-section (last visited June 29, 

2017); https://www.dish.com/programming/ 

packages/ (last visited June 29, 2017). ACA 

observes that DISH’s reported average revenue per 

unit was $86.79 per month and AT&T’s was 

$118.00 per month. ACA Reply Comments at 2–3. 

86 DISH and AT&T Comments at 4–5; AT&T Reply 

Comments at 6–7. 

87 FY 2015 Report and Order, 30 FCC Rcd at 5369, 

para. 33; 80 FR 43019. 

88See, e.g., Video Description: Implementation of 

the Twenty-First Century Communications and 

Video Accessibility Act of 2010, Notice of Proposed 

Rulemaking, 31 FCC Rcd 2463 (81 FR 33642, May 

27, 2016); Expanding Consumers’ Video Navigation 

Choices, Commercial Availability of Navigation 

Devices, Notice of Proposed Rulemaking and 

Memorandum Opinion and Order, 31 FCC Rcd 1544 

(81 FR 14033, March 16, 2016); Promoting the 

Availability of Diverse and Independent Sources of 

Video Programming, Notice of Inquiry, 31 FCC Rcd 

1610 (2016); Expansion of Online Public File 

Obligations to Cable and Satellite TV Operators and 

Broadcast and Satellite Radio Licensees, Report and 

Order, 31 FCC Rcd 526 (2016); Amendment to the 

Commission’s Rules Concerning Market 

Modification, Implementation of Section 102 of the 

STELA Reauthorization Act of 2014, Report and 

Order, 30 FCC Rcd 10406 (2015). 

89 DISH and AT&T Comments at 5–6. We also do 

not agree with AT&T’s argument that we have 

ignored the other regulatory fees paid by the DBS 

providers. AT&T Reply Comments at 7. The 

regulatory fee based on the Media Bureau FTEs is 

not related to the regulatory fee based on 

International Bureau FTEs. While there is no other 

industry in the same situation as DBS, we note that 

the cable television industry pays regulatory fees for 

CARs licenses. 

90ACA observes, ‘‘the DBS providers misconceive 

the nature of the Commission’s fee setting exercise, 

as it is not required to calculate fee levels with 

scientific precision.’’ See ACA Reply Comments at 

6. 

91 FY 2015 Report and Order, 30 FCC Rcd at 5369, 

para. 33; 80 FR 43019. 

92 DISH and AT&T Comments at 7–8. 

industry that the Media Bureau 

resources utilized by the DBS providers 

are similar to those used by the cable 

television and IPTV industry,79 and for 

this reason we have been phasing in the 

regulatory fee for DBS providers each 

year. Commenters representing the cable 

television industry observe that despite 

the Commission’s prior commitment to 

ensuring ‘‘an appropriate level of 

regulatory parity with cable television 

and IPTV’’ the proposed rate is far 

below the 96 cents proposed rate for 

cable television and IPTV.80 These 

commenters argue that there is no 

justification for this disparity, due to the 

fact that DBS operators impose 

regulatory costs and receive benefits 

from the Media Bureau that affect all 

MVPDs; 81 that the proposed fees 

impose competitive and technological 

disparities, favoring DBS over cable 

television and IPTV; 82 and that there is 

no evidence in the record to support the 

disparity in fees.83 The Media Bureau 

FTEs regulate the DBS industry together 

with the other MVPDs and the burden 

that DBS imposes on Media Bureau 

FTEs is roughly the same. For example, 

since October 1, 2016, the Media Bureau 

has opened 17 proceedings that affect 

MVPDs; seven of those proceedings are 

focused on cable operators, six are 

focused on DBS, and four cover all 

MVPDs (with three of those also 

covering other media services like 

broadcasters). Thus, these regulatees— 

MVPDs—are a group that includes DBS. 

In order to continue to bring the DBS fee 

closer to the cable television/IPTV fee, 

we are adopting the proposed rate of 38 

cents per subscriber, which still remains 

substantially below the cable television/ 

IPTV fee we adopt today. 

24. We reject the argument raised by 

DISH and AT&T, the two DBS 

providers, who contend that a fee 

increase would ‘‘harm DBS 

customers.’’ 84 We do not accept the 

DISH and AT&T unsupported 

contention that a regulatory fee increase 

of several cents per subscriber, per 

month would ‘‘harm’’ their customers, 

as such an increase is a negligible 

fraction of a monthly bill.85

25. AT&T and DISH also argue that 

several recent proceedings involving 

MVPDs do not justify an increase in 

regulatory fees.86 We disagree. The 

examples of recent proceedings 

involving MVPDs illustrate that Media 

Bureau FTEs work on significant MVPD 

issues that include DBS. DBS, cable 

television, and IPTV all receive 

oversight and regulation as a result of 

the work of Media Bureau FTEs on 

MVPD issues. This regulatory fee is not 

based on specific recent proceedings, 

but that a significant number of Media 

Bureau FTEs work on MVPD issues that 

include DBS.87 We listed examples of 

several recent proceedings to illustrate 

that the Media Bureau is involved in 

numerous MVPD issues.88 The fee 

increase we adopt today is not based on 

particular Media Bureau proceedings, 

but is an effort to bring the regulatory 

fee closer to the cable television/IPTV 

per subscriber fee. 

26. AT&T and DISH contend that 

there is no evidence that DBS providers 

‘‘usurped the work of such a significant 

amount of Media Bureau FTEs sufficient 

to justify this increase.’’ 89 The DBS 

commenters are misunderstanding the 

basis for including DBS in the cable 

television/IPTV regulatory fee.90 The 

Commission has never said that the DBS 

industry ‘‘usurped the work’’ of the 

Media Bureau staff. The regulatory fee is 

based on the fact that Media Bureau 

staff work on significant issues 

involving MVPDs, including DBS. The 

DBS regulatory fee is based on the 

Media Bureau’s regulation and oversight 

of the MVPD industry (including DBS), 

not on a particular number of FTEs 

focused solely on DBS. The Commission 

has specifically rejected the argument 

that section 9 of the Act requires us to 

‘‘show that DBS and cable occupy a 

comparable number of FTEs.’’ 91

27. Finally, AT&T and DISH contend 

that there is no legal basis to charge DBS 

providers the same regulatory fees as 

cable television and IPTV operators.92

We disagree. We recognize that DBS is 

not identical to cable television and 

IPTV. Services that are not 

technologically identical nevertheless 

warrant placement in the same 

regulatory fee category, e.g., ITSP 

includes a range of carriers that may not 

be regulated identically but must pay 

44328 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

93 ITSP, regulated by the Wireline Competition 

Bureau, includes interexchange carriers (IXCs), 

incumbent local exchange carriers (LECs), toll 

resellers, Voice over Internet Providers (VoIP), and 

other service providers, all of which involve 

different degrees of regulatory oversight. 

94See Assessment and Collection of Regulatory 

Fees for Fiscal Year 2007, Report and Order and 

Further Notice of Proposed Rulemaking, 22 FCC 

Rcd 15712, 15719, para. 19 (2007) (FY 2007 Report 

and Order); 72 FR 45908, August 16, 2007. 

95 FY 2013 Report and Order, 28 FCC Rcd at 

12362, para. 32 (‘‘IPTV providers should be subject 

to the same regulatory fee as cable providers.’’); 78 

FR 52433. 

96 FY 2017 NPRM, 32 FCC Rcd at 4533, para. 19; 

82 FR 26019. 

97CRC Comments at 1. 

98CRC Comments at 1. 

99CRC Comments at 2. 

100Arso Comments at 1–2. 

101 FY 2016 Report and Order, 31 FCC Rcd at 

10351, para. 33; 81 FR 65926. 

102 FY 2017 NPRM, 31 FCC Rcd at 4534, para. 20; 

82 FR 26019. 

103 Id., FY 2017 NPRM, 31 FCC Rcd at 4535, para. 

21; 82 FR 26019. 

104 Id., FY 2017 NPRM, 31 FCC Rcd at 4535, para. 

20; 82 FR 26019. 

fees on the same basis.93 When 

interconnected Voice over Internet 

Protocol (VoIP) providers were added to 

the ITSP category in a permitted 

amendment the Commission observed 

that ‘‘the costs and benefits associated 

with our regulation of interconnected 

VoIP providers are not identical as those 

associated with regulating interstate 

telecommunications service and 

CMRS.’’ 94 Indeed, IPTV is not regulated 

in all the same ways as cable television, 

and yet the Commission requires them 

to pay fees on the same basis.95 We 

recognize that DBS is not identical to 

cable, but the Media Bureau FTEs work 

on MVPD issues that include DBS. 

Although DBS is not identical to cable 

television and IPTV, the services all 

receive oversight and regulation as a 

result of the work of Media Bureau FTEs 

on MVPD issues, and the burden 

imposed on the Commission is similar. 

28. After considering the comments 

filed in this proceeding, we conclude 

that moving the DBS rate is supported 

by the data and analysis, and therefore 

adopt a regulatory fee rate of 38 cents, 

per subscriber, per year for FY 2017. 

C. Radio Broadcaster Regulatory Fees 

29. In the FY 2017 NPRM, the 

Commission proposed to revise the table 

for AM and FM broadcasters.96 The 

proposed table had revised ratios so that 

the difference between each tier would 

be proportional. We also sought 

comment on whether the regulatory fees 

should be reduced further for the AM 

and FM broadcasters in the two lowest 

tiers. 

30. We received two comments on 

this issue. CRC, an AM station licensee, 

contends that the proposed fees for AM 

stations are too high.97 CRC observes 

that small AM stations must compete 

against FM stations and other media and 

they generate significantly less revenue 

than FM stations.98 CRC argues that the 

economic disparities between AM and 

FM facilities should be reflected in the 

regulatory fee schedules, particularly in 

the top tiers where the disparity in 

revenues is much greater than in the 

smaller markets.99 Arso contends that 

the FY 2017 NPRM does not go far 

enough in alleviating the hardship 

imposed on small broadcasters and 

urges the Commission to adopt a fast 

track waiver process for stations in 

economically depressed areas, such as 

Puerto Rico.100

31. We agree with the commenters 

that small independent broadcasters 

face hardship today. As the Commission 

explained in the FY 2016 Report and 

Order, ‘‘[e]xtending some relief to these 

small radio broadcasters may facilitate 

their continued ability to stay in 

business and serve their small and rural 

communities.’’ 101 After reviewing the 

record, and due to the economic 

hardship faced by many small rural 

independent radio stations, we are 

adopting a revised version of the 

proposed table in the FY 2017 NPRM 

and reducing the regulatory fees in the 

two lowest population tiers for AM and 

FM broadcasters from the amounts 

proposed. In FY 2018, we will again 

review the status of these small radio 

broadcast stations to see if further relief 

is warranted. Below is the table we 

adopt today: 

TABLE 1—FY 2017 RADIO STATION REGULATORY FEES

FY 2017 Radio Station Regulatory Fees 

Population served AM Class 

A 

AM Class 

B 

AM Class 

C 

AM Class 

D 

FM Classes 

A, B1 & C3 

FM Classes 

B, C, C0, C1 

& C2 

<=25,000 .................................................. $895 $640 $555 $610 $980 $1,100 

25,001–75,000 ......................................... 1,350 955 830 915 1,475 1,650 

75,001–150,000 ....................................... 2,375 1,700 1,475 1,600 2,600 2,925 

150,001–500,000 ..................................... 3,550 2,525 2,200 2,425 3,875 4,400 

500,001–1,200,000 .................................. 5,325 3,800 3,300 3,625 5,825 6,575 

1,200,001–3,000,00 ................................. 7,975 5,700 4,950 5,425 8,750 9,875 

3,000,001–6,000,00 ................................. 11,950 8,550 7,400 8,150 13,100 14,800 

>6,000,000 ............................................... 17,950 12,825 11,100 12,225 19,650 22,225 

D. Broadcast Television Satellite 

32. Broadcast television satellite 

stations pay a lower regulatory fee than 

standalone full service broadcast 

television stations, and some of these 

stations are designated as such pursuant 

to note 5 to § 73.3555 of the 

Commission’s rules.102 For purposes of 

regulatory fees, we historically have 

identified as satellite stations those so 

listed in the Media Bureau’s 

Consolidated Data Base System (CDBS), 

the Television and Cable Factbook, or 

BIA/Kelsey MEDIA Access Pro.103 In the 

FY 2017 NPRM, the Commission sought 

comment on basing the categorization of 

television satellite stations for 

regulatory fee payments on 

authorization under note 5 of § 73.3555 

of the Commission’s rules, and noted 

that the Television and Cable Factbook 

may identify some stations as satellite 

stations that are not listed in the Media 

Bureau’s records.104 We received 

limited comments on the issue and do 

not have adequate support to change the 

methodology for determining which 

stations are satellites at this time. We 

recognize that regulatees rely on 

consistency of treatment. Therefore, for 

FY 2017 regulatory fees we treat 

broadcast television satellite stations as 

satellite stations that are listed as such 

in CDBS, the 2017 Television and Cable 

Factbook, or BIA/Kelsey MEDIA Access 

Pro, or paid regulatory fees as a satellite 

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44329 

105For purposes of determining whether a 

licensee qualifies as a satellite station for regulatory 

fee purposes, it must be so characterized in one of 

these sources as of the date of the Report and Order. 

106See FY 2013 NPRM, 28 FCC Rcd at 7798–7807, 

paras. 17–40; 78 FR 34612. 

107Coalition Comments at 3. 

108Coalition Comments at 3. 

109Coalition Comments at 5–6. 

110Coalition Comments at 8. 

111 FY 2016 Report and Order, 31 FCC Rcd at 

10347–350, para. 6; 81 FR 65926. 

112 FY 2017 NPRM, 32 FCC Rcd at 4529, para. 8; 

82 FR 26019. 

113See FY 2015 Report and Order, 30 FCC Rcd 

10273, para. 12; 80 FR 55775. 

114See, e.g., International Settlement Rates, IB 

Docket No. 96–261, Report and Order, 12 FCC Rcd 

19806 (62 FR 45758, August 29, 1997), Report and 

Order on Reconsideration and Order Lifting Stay, 

14 FCC Rcd 9256 (64 FR 47699, September 1, 1999), 

aff’d sub nom. Cable & Wireless, 166 F.3d 1224. 

115See FY 2015 Report and Order, 30 FCC Rcd 

10273, para. 12; 80 FR 55775. 

116Assessment and Collection of Regulatory Fees 

for Fiscal Year 2008, Second Report and Order, 24 

FCC Rcd 4208, 4214–16, paras. 13–17 (2009) 

(Submarine Cable Order); 74 FR 22104, (May 12, 

2009). 

117Submarine Cable Order, 24 FCC Rcd at 4213, 

para. 9; 74 FR 22104, 22106. 

118The prior rule assessed regulatory fees based 

on the number of active circuits on the previous 

December 31. 

119Submarine Cable Order, 24 FCC Rcd at 4214– 

16, paras. 13–17; 74 FR 22104, 22107–8. 

120 Id., Submarine Cable Order, 24 FCC Rcd at 

4208–4209, para. 1; 74 FR 22104. 

121Assessment and Collection of Regulatory Fees 

for Fiscal Year 2009, Report and Order, 24 FCC Rcd 

10301, 10306–07, paras. 16–17 (2009); 74 FR 40089. 

122 FY 2016 NPRM, 31 FCC Rcd at 5764–65, paras. 

15–16; 81 FR 35680. 

123 FY 2016 Report and Order, 31 FCC Rcd at 

10343, para. 11; 81 FR 65926. Level 3 had initially 

proposed the flat fee methodology, for common 

carrier and non-common carrier providers, assessed 

based on the total capacity in Gbps. See Level 3 

Comments, filed in MD Docket No. 16–166 (filed 

June 23, 2016), at 3–5. 

124Level 3 Comments, filed in MD Docket No. 

16–166 (filed June 23, 2016). 

125The submarine cable fee is based on capacity 

per system; the proposed terrestrial and satellite fee 

would be based on overall capacity, but not on a 

per system basis. 

126 FY 2017 NPRM, 32 FCC Rcd at 4536–38, paras. 

23–27; 82 FR 26019. 

127 47 CFR 43.62(a)(1). Commenters support 

continuing to assess regulatory fees based on IBCs 

that were active as of December 31 of the prior year 

and we see no reason to change this methodology 

at this time. 

128Level 3 June 29, 2017 ex parte at 1. 

129AT&T Comments at 2 & Reply Comments at 

1. 

station in FY 2016.105 In the future, we 

intend to continue examining the 

appropriate methodology for 

categorizing when a station should only 

be assessed regulatory fees at the 

satellite station level. In doing so, as 

with other fee reforms, the Commission 

will work to ensure that any proposed 

changes to our fee structure are 

equitable, administrable, and 

sustainable.106

E. Submarine Cable Regulatory Fees 

33. The Coalition, a group of 

submarine cable operators, objects to the 

proposed FY 2017 regulatory fees for the 

submarine cable industry, observing 

that the total amount the Commission is 

collecting for FY 2017 ($356,710,992) is 

less than the amount collected for FY 

2016 ($384,012,497, of which 

$44,168,497 was to offset facilities 

reduction costs), yet the regulatory fee 

for the highest tier submarine cable 

system was $133,200 for FY 2016 and 

the rate proposed for FY 2017, for the 

highest tier, is $135,700.107 The 

Coalition states that the FY 2017 NPRM 

does not adequately justify the proposed 

increase in fees for submarine cable 

systems.108 The Coalition argues that 

the FY 2016 rate included a one-time 

facilities reduction charge and the FY 

2017 rate should be less than the FY 

2016 rate because the number of 

payment units are the same.109 The 

Coalition contends that the Commission 

is subsidizing unrelated activities to the 

detriment of the submarine cable 

operators.110

34. We disagree with the Coalition’s 

argument. The increase in regulatory fee 

rates for the International Bureau 

regulatees is due to the reallocation of 

38 Wireline Competition Bureau direct 

FTEs as indirect in FY 2017, as 

discussed above. Although the amount 

collected overall is less in FY 2017 than 

in FY 2016, the allocation percentage of 

regulatory fees for the International 

Bureau increased from 5.6 percent in FY 

2016 111 to 6.22 percent for FY 2017,112

due to the increase in indirect FTEs. We 

also note that the regulatory fees paid by 

the submarine cable operators cover, in 

addition to the services that the 

International Bureau provides to 

submarine cable operators, the services 

provided to common carriers using 

submarine cable circuits.113 The 

International Bureau provides many 

services on behalf of common carriers 

using submarine cable circuits, such as 

benchmarks enforcement,114 protection 

from anticompetitive actions by foreign 

carriers, section 310(b) foreign 

ownership rulings, international section 

214 authorizations, and representation 

of U.S. interests at bilateral and 

multilateral negotiations and 

international organizations.115 After 

reviewing the record, including the 

comments from the submarine cable 

industry, we are adopting the fee 

proposed in the FY 2017 NPRM for 

submarine cable systems. 

F. International Bearer Circuits 

35. In 2009,116 the Commission 

adopted a new methodology for 

calculating submarine cable 

international bearer circuits regulatory 

fees by: (i) Eliminating the distinction 

between common carriers and noncommon carriers 117 and (ii) assessing a 

flat per cable landing license fee 118 for 

all submarine cable systems with higher 

fees for larger submarine cable systems 

and lower fees for smaller systems.119

The Commission concluded that the 

new methodology would be more 

equitable and would encourage better 

compliance with the regulatory fee 

requirements.120 The Commission did 

not revise the terrestrial and satellite 

IBC regulatory fee methodology at that 

time because of the ‘‘complexity of the 

legal, policy and equity issues 

involved.’’ 121

36. In the FY 2016 NPRM, the 

Commission revisited the disparate 

treatment of terrestrial and satellite IBCs 

vis-a`-vis submarine IBCs,122 but 

subsequently decided that the record 

was insufficient to change the fee 

methodology.123 In the FY 2017 NPRM, 

the Commission again sought comment 

on how to update and improve the 

regulatory fee assessment for terrestrial 

and satellite IBCs. Specifically, the 

Commission sought comment on several 

issues raised by Level 3:124 Adopting a 

flat, per-provider fee, similar to the 

submarine cable regulatory fee 

methodology, based on capacity 125 and 

including all terrestrial IBCs, i.e., both 

common carrier and non-common 

carrier, for regulatory fee purposes.126

We also sought comment on eliminating 

the IBC regulatory fee for satellite IBCs 

and whether we should continue to 

assess regulatory fees based on IBCs that 

were active as of December 31 of the 

prior year.127

1. Including Non-Common Carrier IBCs 

37. We agree with the commenters, 

Level 3 and AT&T, that a methodology 

for terrestrial and satellite IBC 

regulatory fees based on circuits should 

be consistent with the submarine cable 

methodology and include common 

carrier and non-common carrier 

terrestrial IBCs. Level 3 explains that 

including non-common carrier IBCs will 

‘‘eliminate a major incentive and 

opportunity providers currently have to 

underreport the number of IBCs they 

have in service.’’ 128 As AT&T observes, 

such an approach treats all terrestrial 

IBC providers equitably and reduces 

fees by increasing the payment units.129

For these reasons, we find no reason to 

continue excluding non-common carrier 

terrestrial IBCs from regulatory fees and 

adopt our proposal to include both 

common carrier and non-common 

carrier terrestrial IBCs, consistent with 

44330 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

130 47 U.S.C. 159(b)(3). 

131 47 U.S.C. 159(b)(4)(B). 

132 FY 2017 NPRM, 32 FCC Rcd at 4537–38, para. 

26; 82 FR 26019. 

133SIA Comments at 4–5. 

134SIA Comments at 5, note 18. 

135 FY 2017 NPRM, 32 FCC Rcd at 4538, para. 26; 

82 FR 26019. 

136Level 3 Comments at 2; AT&T Reply 

Comments at 5–6. 

137 FY 2014 Report and Order, 29 FCC Rcd at 

10774–76, para. 18–21; 79 FR 54190. 

138 Id. 

139 Id., FY 2014 Report and Order, 29 FCC Rcd 

at 10775, para. 20 & n. 62; 79 FR 54190. 

140 Id. 

141 Id. 

142 Id., FY 2014 Report and Order, 29 FCC Rcd 

at 10775, para. 20; 79 FR 54190. 

143 Id. (observing that many small entities ‘‘are 

subject to little Commission oversight and 

regulation which serves to further exacerbate this 

inequity [of the administrative burden].’’). 

144ACA Comments at 7–10; CMA Comments at 4; 

EWA Comments at 2; NAB Comments at 1–2; 

Romar Reply Comments at 2–3. 

145 Id. 

146 Id. 

147EWA Comments at 2–4. 

148ACA Comments at 9 (explaining that the small 

operators may also provide VoIP services and may 

not be de minimis under the $1000 threshold 

proposed). 

the submarine cable regulatory fee 

methodology. 

38. Adding non-common carrier 

terrestrial IBCs to the regulatory fee 

schedule is a permitted amendment, as 

defined in section 9(b)(3) of the Act,130

and pursuant to section 9(b)(4)(B),131

must be submitted to Congress at least 

90 days before it will be effective. For 

that reason, this new fee will be 

included in the regulatory fee 

proceeding for FY 2018. 

2. Satellite IBCs 

39. In the FY 2017 NPRM, we sought 

comment on whether to eliminate the 

IBC regulatory fee for satellite providers 

of IBCs.132 SIA contends that the fee 

should be eliminated because it does 

not correspond with substantive work 

by the Commission and is overly 

burdensome for satellite operators to 

calculate.133 According to SIA, 

calculating the number of circuits takes 

at least ten hours for in-house counsel 

and additional personnel in other 

departments are responsible for 

collecting data for this calculation.134

The flat fee methodology for terrestrial 

and satellite IBCs should significantly 

reduce any burden of collecting data 

described by SIA. After reviewing the 

record, we do not see any reason to 

eliminate this fee category. Instead, we 

are moving toward a more consistent 

regulatory fee methodology for all IBCs 

and a less burdensome process for all 

regulatees. 

3. Fee Based on Circuits as of December 

31 

40. In the FY 2017 NPRM, we sought 

comment on whether to assess the 

number of active circuits on systems 

active as of December 31 of the prior 

year or assess fees on IBCs that were 

active at any point during the preceding 

calendar year.135 Level 3 and AT&T 

argue that the Commission should 

continue to assess regulatory fees based 

on IBCs that were active as of December 

31 of the prior year because it is 

significantly less burdensome for 

carriers to identify circuits that are 

active at a fixed point in time as 

opposed to at any point during the 

preceding year.136 We agree that the 

burdens associated with requiring 

providers to count the number of active 

circuits at any point during the 

preceding year does not outweigh the 

benefits. Therefore, we will retain the 

current requirement of assessing fees on 

systems active as of December 31 of the 

prior year. 

G. Increasing the De Minimis Threshold 

41. Under the Commission’s current 

de minimis rule for regulatory fee 

payments, a regulatee is exempt from 

paying regulatory fees if the sum total of 

all of its regulatory fee liabilities for 

annual regulatory fees is $500 or less for 

the fiscal year.137 The Commission 

increased the de minimis threshold 

from $10 to $500 in the FY 2014 Report 

and Order.138 The higher threshold 

reflected the estimated costs of 

collecting an unpaid regulatory fee, i.e., 

at least $350 in direct costs. The 

Commission’s estimate of approximately 

$350 per unpaid fee excluded overhead 

or other costs involved in regulatory fee 

collection.139 In addition, the 

Commission observed that setting the de 

minimis threshold at $500 was unlikely 

to reduce fee collections to an amount 

below the full amount of the 

Commission’s annual appropriation.140

42. In the FY 2014 regulatory fee 

proceeding, commenters had argued the 

threshold should be increased to $750 

or $1,000.141 In response, the 

Commission adopted a new threshold of 

$500 for annual regulatory fee and 

committed to further monitor the de 

minimis threshold and consider 

whether to increase the threshold or 

revise on some other basis.142 In the FY 

2017 NPRM, we sought comment on 

increasing the de minimis threshold to 

$1,000 to improve the cost effectiveness 

of the Commission’s collection of 

regulatory fees.143 Commenters support 

an increase in the de minimis 

threshold.144

43. In general, we believe the 

Commission’s operational costs 

associated with processing and 

collecting these smaller fees, outweigh 

the benefits of such payments. For 

example, payors between $500 and 

$1,000 account for less than one percent 

of all regulatory fee payments. And yet 

processing and collecting these fees 

generates a disproportionate amount of 

work for Commission staff. Specifically, 

the cost of researching, creating a bill to 

send to a non-payor, and completing all 

follow-up discussion and 

correspondence has increased since 

2014’s $350 estimate, and that does not 

even include the cost of overhead and 

administering the regulatory fee 

program.145 The Commission has found 

that smaller entities with regulatory fees 

that fall within this range are less likely 

to pay on a timely basis and 

consequently use more Commission 

resources for fee collection.146

Nonpayment by these small entities 

then often results in the escalation of 

the Commission’s administrative costs 

and a disproportionate use of FTE 

resources. As such, the marginal benefit 

to Commission operations of assessing, 

billing, and collecting regulatory fees on 

regulatees that would owe less than 

$1,000 is minute. In addition, setting the 

threshold at $1,000 is unlikely to reduce 

fee collections to an amount below the 

full amount of the Commission’s annual 

appropriation because the additional 

amount that would no longer be 

collected is relatively small. We 

conclude that raising the de minimis 

threshold to $1,000 is justified by 

reducing the Commission’s cost in 

collection of regulatory fees, thus 

allowing a more efficient allocation of 

Commission resources. 

44. We also sought comment on 

whether we should include multi-year 

wireless licenses in the de minimis 

threshold. EWA explains, and we agree, 

that it would be difficult to administer 

a de minimis threshold for multi-year 

licenses.147 ACA proposes that we adopt 

a de minimis threshold for small cable 

and IPTV operators of 1000 or fewer 

subscribers.148 After analyzing this issue 

we conclude that it would be 

administratively difficult to have both a 

per subscriber de minimis threshold and 

a $1000 de minimis threshold at the 

same time. Many cable operators also 

have CARS licenses and offer other 

services, such as VoIP, and it would be 

difficult to calculate if they exceed the 

de minimis threshold with two different 

thresholds. 

45. Accordingly, the de minimis 

threshold we adopt today applies only 

to filers of annual regulatory fees for FY 

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44331 

149See FY 2014 Report and Order, 29 FCC Rcd 

at 10775, para. 21 (explaining how to calculate the 

regulatory fee total to determine if it is below the 

de minimis threshold); 79 FR 54190. 150Office of Management and Budget (OMB) 

Memorandum M–10–06, Open Government 

Directive, Dec. 8, 2009; see also http://

www.whitehouse.gov/the-press-office/2011/06/13/ 

executive-order-13576-delivering-efficient-effectiveand-accountable-gov. 151See U.S. Department of the Treasury, Open 

Government Plan 2.1, Sept. 2012. 

152 FY 2015 Report and Order, 30 FCC Rcd at 

10282–83, para. 35; 80 FR 55775. 

153Customers who owe an amount on a bill, debt, 

or other obligation due to the federal government 

are prohibited from splitting the total amount due 

into multiple payments. Splitting an amount owed 

into several payment transactions violates the credit 

card network and Fiscal Service rules. An amount 

owed that exceeds the Fiscal Service maximum 

dollar amount, $24,999.99, may not be split into 

two or more payment transactions in the same day 

by using one or multiple cards. Also, an amount 

owed that exceeds the Fiscal Service maximum 

dollar amount may not be split into two or more 

transactions over multiple days by using one or 

more cards. 

154 In accordance with U.S. Treasury Financial 

Manual Announcement No. A–2014–04 (July 2014), 

the amount that may be charged on a credit card 

for transactions with federal agencies has been 

reduced to $24,999.99. 

155 In accordance with U.S. Treasury Financial 

Manual Announcement No. A–2012–02, the 

maximum dollar-value limit for debit card 

transactions is eliminated. Only Visa and 

MasterCard branded debit cards are accepted by 

Pay.gov. 

156Audio bridging services are toll 

teleconferencing services. 

157 47 CFR 52.103. 

2017 and not multi-year filings.149 This 

de minimis exemption from the 

payment of regulatory fees applies to the 

sum of all annual regulatory fee 

obligations that a regulatee has for all 

applicable fee categories; not to 

individual payments for each category 

separately. The Commission will 

implement the de minimis threshold of 

$1,000 beginning immediately. The de 

minimis status is not a permanent 

exemption from regulatory fees. Rather, 

each regulatee will need to reevaluate 

annually to determine whether its total 

liability for annual regulatory fees falls 

at or below the threshold given any 

changes that the Commission may make 

in its regulatory fees from year to year. 

V. Procedural Matters 

A. Payment of Regulatory Fees 

1. Checks Will Not Be Accepted for 

Payment of Annual Regulatory Fees 

46. Pursuant to an Office of 

Management and Budget (OMB) 

directive,150 the Commission is moving 

towards a paperless environment, 

extending to disbursement and 

collection of select federal government 

payments and receipts.151 In 2015, the 

Commission stopped accepting checks 

(including cashier’s checks and money 

orders) and the accompanying hardcopy 

forms (e.g., Forms 159, 159–B, 159–E, 

159–W) for the payment of regulatory 

fees.152 All regulatory fee payments 

must be made by online Automated 

Clearing House (ACH) payment, online 

credit card, or wire transfer. Any other 

form of payment (e.g., checks, cashier’s 

checks, or money orders) will be 

rejected. For payments by wire, a Form 

159–E should still be transmitted via fax 

so that the Commission can associate 

the wire payment with the correct 

regulatory fee information. 

2. Credit Card Transaction Levels 

47. Since June 1, 2015, in accordance 

with U.S. Treasury Announcement No. 

A–2014–04 (July 2014), the amount that 

can be charged on a credit card for 

transactions with federal agencies has 

been limited to $24,999.99.153

Transactions greater than $24,999.99 

will be rejected. This limit applies to 

single payments or bundled payments of 

more than one bill. Multiple 

transactions to a single agency in one 

day may be aggregated and treated as a 

single transaction subject to the 

$24,999.99 limit. Customers who wish 

to pay an amount greater than 

$24,999.99 should consider available 

electronic alternatives such as Visa or 

MasterCard debit cards, ACH debits 

from a bank account, and wire transfers. 

Each of these payment options is 

available after filing regulatory fee 

information in Fee Filer. 

3. Payment Methods 

48. During the fee season for 

collecting FY 2017 regulatory fees, 

regulatees can pay their fees by credit 

card through Pay.gov,154 ACH, debit 

card,155 or by wire transfer. Additional 

payment instructions are posted at 

http://transition.fcc.gov/fees/ 

regfees.html. The receiving bank for all 

wire payments is the U.S. Treasury, 

New York, New York. When making a 

wire transfer, regulatees must fax a copy 

of their Fee Filer generated Form 159– 

E to the Federal Communications 

Commission at (202) 418–2843 at least 

one hour before initiating the wire 

transfer (but on the same business day) 

so as not to delay crediting their 

account. Regulatees should discuss 

arrangements (including bank closing 

schedules) with their bankers several 

days before they plan to make the wire 

transfer to allow sufficient time for the 

transfer to be initiated and completed 

before the deadline. Complete 

instructions for making wire payments 

are posted at http://transition.fcc.gov/ 

fees/wiretran.html. 

4. De Minimis Regulatory Fees 

49. Regulatees whose total FY 2017 

annual regulatory fee liability, including 

all categories of fees for which payment 

is due, is $1,000 or less are exempt from 

payment of FY 2017 regulatory fees. The 

de minimis threshold applies only to 

filers of annual regulatory fees (not 

regulatory fees paid through multi-year 

filings), and is not a permanent 

exemption. Regulatees will need to 

reevaluate their total fee liability each 

fiscal year to determine whether they 

meet the de minimis exemption. 

5. Standard Fee Calculations and 

Payment Dates 

50. The Commission will accept fee 

payments made in advance of the 

window for the payment of regulatory 

fees. The responsibility for payment of 

fees by service category is as follows: 

• Media Services: Regulatory fees 

must be paid for initial construction 

permits that were granted on or before 

October 1, 2016 for AM/FM radio 

stations, VHF/UHF full service 

television stations, and satellite 

television stations. Regulatory fees must 

be paid for all broadcast facility licenses 

granted on or before October 1, 2016. 

• Wireline (Common Carrier) 

Services: Regulatory fees must be paid 

for authorizations that were granted on 

or before October 1, 2016. In instances 

where a permit or license is transferred 

or assigned after October 1, 2016, 

responsibility for payment rests with the 

holder of the permit or license as of the 

fee due date. Audio bridging service 

providers are included in this 

category.156 For Responsible 

Organizations (RespOrgs) that manage 

Toll Free Numbers (TFN), regulatory 

fees should be paid on all working, 

assigned, and reserved toll free 

numbers, as well as toll free numbers 

that are in any other status as defined 

in § 52.103 of the Commission’s 

rules.157 The unit count should be based 

on toll free numbers managed by 

RespOrgs on or about December 31, 

2016. 

• Wireless Services: CMRS cellular, 

mobile, and messaging services (fees 

based on number of subscribers or 

telephone number count): Regulatory 

fees must be paid for authorizations that 

were granted on or before October 1, 

2016. The number of subscribers, units, 

or telephone numbers on December 31, 

2016 will be used as the basis from 

which to calculate the fee payment. In 

instances where a permit or license is 

transferred or assigned after October 1, 

2016, responsibility for payment rests 

with the holder of the permit or license 

as of the fee due date. 

44332 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

158Cable television system operators should 

compute their number of basic subscribers as 

follows: Number of single family dwellings + 

number of individual households in multiple 

dwelling unit (apartments, condominiums, mobile 

home parks, etc.) paying at the basic subscriber rate 

+ bulk rate customers + courtesy and free service. 

Note: Bulk-Rate Customers = Total annual bulk-rate 

charge divided by basic annual subscription rate for 

individual households. Operators may base their 

count on ‘‘a typical day in the last full week’’ of 

December 2016, rather than on a count as of 

December 31, 2016. 

159We encourage terrestrial and satellite service 

providers to seek guidance from the International 

Bureau’s Telecommunications and Analysis 

Division to verify their IBC reporting processes to 

ensure that their calculation methods comply with 

our rules. 

160We remind facilities-based common carriers to 

review their reporting processes to ensure that they 

accurately calculate and report IBCs. 

161See FY 2005 Report and Order, 20 FCC Rcd 

at 12264, paras. 38–44; 70 FR 41967. 

162 In the supporting documentation, the provider 

will need to state a reason for the change, such as 

a purchase or sale of a subsidiary, the date of the 

transaction, and any other pertinent information 

that will help to justify a reason for the change. 

• Wireless Services, Multi-year fees: 

The first eight regulatory fee categories 

in our Schedule of Regulatory Fees in 

Table 4 pay ‘‘small multi-year wireless 

regulatory fees.’’ Entities pay these 

regulatory fees in advance for the entire 

amount period covered by the five-year 

or ten-year terms of their initial licenses, 

and pay regulatory fees again only when 

the license is renewed or a new license 

is obtained. We include these fee 

categories in our rulemaking to 

publicize our estimates of the number of 

‘‘small multi-year wireless’’ licenses 

that will be renewed or newly obtained 

in FY 2017. 

• Multichannel Video Programming 

Distributor Services (cable television 

operators, CARS licensees, DBS, and 

IPTV): Regulatory fees must be paid for 

the number of basic cable television 

subscribers as of December 31, 2016.158

Regulatory fees also must be paid for 

CARS licenses that were granted on or 

before October 1, 2016. In instances 

where a permit or license is transferred 

or assigned after October 1, 2016, 

responsibility for payment rests with the 

holder of the permit or license as of the 

fee due date. For providers of DBS 

service and IPTV-based MVPDs, 

regulatory fees should be paid based on 

a subscriber count on or about 

December 31, 2016. In instances where 

a permit or license is transferred or 

assigned after October 31, 2016, 

responsibility for payment rests with the 

holder of the permit or license as of the 

due date. 

• International Services: Regulatory 

fees must be paid for (1) earth stations 

and (2) geostationary orbit space 

stations and non-geostationary orbit 

satellite systems that were licensed and 

operational on or before October 1, 

2016. In instances where a permit or 

license is transferred or assigned after 

October 1, 2016, responsibility for 

payment rests with the holder of the 

permit or license as of the fee due date. 

• International Services: (Submarine 

Cable Systems): Regulatory fees for 

submarine cable systems are to be paid 

on a per cable landing license basis 

based on circuit capacity as of December 

31, 2016. In instances where a license is 

transferred or assigned after October 1, 

2016, responsibility for payment rests 

with the holder of the license as of the 

fee due date. For regulatory fee 

purposes, the allocation in FY 2017 will 

remain at 87.6 percent for submarine 

cable and 12.4 percent for satellite/ 

terrestrial facilities. 

• International Services: (Terrestrial 

and Satellite Services): Regulatory fees 

for Terrestrial and Satellite International 

Bearer Circuits are to be paid by 

facilities-based common carriers that 

have active (used or leased) 

international bearer circuits as of 

December 31, 2016 in any terrestrial or 

satellite transmission facility for the 

provision of service to an end user or 

resale carrier. When calculating the 

number of such active circuits, the 

facilities-based common carriers must 

include circuits used by themselves or 

their affiliates. In addition, noncommon carrier satellite operators must 

pay a fee for each circuit they and their 

affiliates hold and each circuit sold or 

leased to any customer, other than an 

international common carrier 

authorized by the Commission to 

provide U.S. international common 

carrier services. For these purposes, 

‘‘active circuits’’ include backup and 

redundant circuits as of December 31, 

2016. Whether circuits are used 

specifically for voice or data is not 

relevant for purposes of determining 

that they are active circuits.159 In 

instances where a permit or license is 

transferred or assigned after October 1, 

2016, responsibility for payment rests 

with the holder of the permit or license 

as of the fee due date. For regulatory fee 

purposes, the allocation in FY 2017 will 

remain at 87.6 percent for submarine 

cable and 12.4 percent for satellite/ 

terrestrial facilities.160

B. Commercial Mobile Radio Service 

(CMRS) Cellular and Mobile Services 

Assessments 

51. The Commission will compile 

data from the Numbering Resource 

Utilization Forecast (NRUF) report that 

is based on ‘‘assigned’’ telephone 

number (subscriber) counts that have 

been adjusted for porting to net Type 0 

ports (‘‘in’’ and ‘‘out’’).161 This 

information of telephone numbers 

(subscriber count) will be posted on the 

Commission’s electronic filing and 

payment system (Fee Filer) along with 

the carrier’s Operating Company 

Numbers (OCNs). 

52. A carrier wishing to revise its 

telephone number (subscriber) count 

can do so by accessing Fee Filer and 

follow the prompts to revise their 

telephone number counts. Any revisions 

to the telephone number counts should 

be accompanied by an explanation or 

supporting documentation.162 The 

Commission will then review the 

revised count and supporting 

documentation and either approve or 

disapprove the submission in Fee Filer. 

If the submission is disapproved, the 

Commission will contact the provider to 

afford the provider an opportunity to 

discuss its revised subscriber count and/ 

or provide additional supporting 

documentation. If we receive no 

response from the provider, or we do 

not reverse our initial disapproval of the 

provider’s revised count submission, the 

fee payment must be based on the 

number of subscribers listed initially in 

Fee Filer. Once the timeframe for 

revision has passed, the telephone 

number counts are final and are the 

basis upon which CMRS regulatory fees 

are to be paid. Providers can view their 

final telephone counts online in Fee 

Filer. A final CMRS assessment letter 

will not be mailed out. 

53. Because some carriers do not file 

the NRUF report, they may not see their 

telephone number counts in Fee Filer. 

In these instances, the carriers should 

compute their fee payment using the 

standard methodology that is currently 

in place for CMRS Wireless services 

(i.e., compute their telephone number 

counts as of December 31, 2016), and 

submit their fee payment accordingly. 

Whether a carrier reviews its telephone 

number counts in Fee Filer or not, the 

Commission reserves the right to audit 

the number of telephone numbers for 

which regulatory fees are paid. In the 

event that the Commission determines 

that the number of telephone numbers 

that are paid is inaccurate, the 

Commission will bill the carrier for the 

difference between what was paid and 

what should have been paid. 

C. Enforcement 

54. To be considered timely, 

regulatory fee payments must be made 

electronically by the payment due date 

for regulatory fees. Section 9(c) of the 

Act requires us to impose a late 

payment penalty of 25 percent of the 

unpaid amount to be assessed on the 

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44333 

163 47 U.S.C. 159(c). 

164See 47 CFR 1.1910. 

165 Delinquent debt owed to the Commission 

triggers the ‘‘red light rule,’’ which places a hold on 

the processing of pending applications, fee offsets, 

and pending disbursement payments. 47 CFR 

1.1910, 1.1911, 1.1912. In 2004, the Commission 

adopted rules implementing the requirements of the 

DCIA. See Amendment of Parts 0 and 1 of the 

Commission’s Rules, MD Docket No. 02–339, Report 

and Order, 19 FCC Rcd 6540 (69 FR 27843, May 17, 

2004); 47 CFR part 1, subpart O, Collection of 

Claims Owed the United States. 

166 47 CFR 1.1940(d). 

167See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910. 

168 47 U.S.C. 159. 

169See 31 U.S.C. 3711(g); 31 CFR 285.12; 47 CFR 

1.1917. 

first day following the deadline for 

filing these fees.163 Failure to pay 

regulatory fees and/or any late penalty 

will subject regulatees to sanctions, 

including those set forth in § 1.1910 of 

the Commission’s rules,164 which 

generally requires the Commission to 

withhold action on ‘‘applications, 

including on a petition for 

reconsideration or any application for 

review of a fee determination, or 

requests for authorization by any entity 

found to be delinquent in its debt to the 

Commission’’ and in the DCIA.165 We 

also assess administrative processing 

charges on delinquent debts to recover 

additional costs incurred in processing 

and handling the debt pursuant to the 

DCIA and § 1.1940(d) of the 

Commission’s rules.166 These 

administrative processing charges will 

be assessed on any delinquent 

regulatory fee, in addition to the 25 

percent late charge penalty. In the case 

of partial payments (underpayments) of 

regulatory fees, the payor will be given 

credit for the amount paid, but if it is 

later determined that the fee paid is 

incorrect or not timely paid, then the 25 

percent late charge penalty (and other 

charges and/or sanctions, as 

appropriate) will be assessed on the 

portion that is not paid in a timely 

manner. 

55. Pursuant to the ‘‘red light rule,’’ 

we will withhold action on any 

applications or other requests for 

benefits filed by anyone who is 

delinquent in any non-tax debts owed to 

the Commission (including regulatory 

fees) and will ultimately dismiss those 

applications or other requests if 

payment of the delinquent debt or other 

satisfactory arrangement for payment is 

not made.167 Failure to pay regulatory 

fees can also result in the initiation of 

a proceeding to revoke any and all 

authorizations held by the entity 

responsible for paying the delinquent 

fee(s).168 Pursuant to a pilot program, 

we have initiated procedures to transfer 

debt to the Centralized Receivables 

Service at the U.S. Treasury, as 

described below. 

D. Transfers of Unpaid Debt to 

Centralized Receivables Service (CRS), 

U.S. Treasury 

56. Under section 9 of the Act, 

Commission rules, and federal debt 

collection laws, a licensee’s regulatory 

fee is due on the first day of the fiscal 

year and payable at a date established in 

the Commission’s annual regulatory fee 

Report and Order. In October 2015, the 

Commission, under revised procedures, 

began transferring unpaid regulatory fee 

receivables directly to the CRS at the 

U.S. Treasury rather than trying to 

collect the debt itself and then 

transferring the remaining unpaid debts 

to Treasury. Under revised procedures, 

the Commission can transfer delinquent 

debt to Treasury for further collection 

action within 120 days after the date of 

delinquency.169 However, regulatees 

will not likely see any substantial 

change in the current procedures of how 

past due debts are to be paid, except 

that the debts will be handled by CRS 

(U.S. Treasury) rather than by the 

Commission. 

E. Effective Date 

57. Providing a 30-day period after 

Federal Register publication before this 

Report and Order becomes effective as 

required by 5 U.S.C. 553(d) will not 

allow sufficient time to collect the FY 

2017 fees before FY 2017 ends on 

September 30, 2017. For this reason, 

pursuant to 5 U.S.C. 553(d)(3), we find 

there is good cause to waive the 

requirements of section 553(d), and this 

Report and Order will become effective 

upon publication in the Federal 

Register. Because payments of the 

regulatory fees will not actually be due 

until late September, persons affected 

by this Report and Order will still have 

a reasonable period in which to make 

their payments and thereby comply 

with the rules established herein. 

VI. Additional Tables 

Table 2—Commenters—Initial 

Comments 

Commenter Abbreviation 

American Cable Association ........................................................................................................................................... ACA. 

Arso Radio Corporation .................................................................................................................................................. Arso. 

AT&T Services, Inc. ........................................................................................................................................................ AT&T. 

CenturyLink, Inc. ............................................................................................................................................................. CenturyLink. 

CRC Broadcasting Company, Inc .................................................................................................................................. CRC. 

Critical Messaging Association ....................................................................................................................................... CMA. 

DISH Network, L.L.C. and AT&T Services, Inc .............................................................................................................. DISH and AT&T. 

Enterprise Wireless Alliance ........................................................................................................................................... EWA. 

Frontier Communications Corporation ............................................................................................................................ Frontier. 

ITTA—The Voice of America’s Broadband Providers .................................................................................................... ITTA. 

Level 3 Communications, LLC ....................................................................................................................................... Level 3. 

National Association of Broadcasters ............................................................................................................................. NAB. 

NCTA—The Internet and Television Association ........................................................................................................... NCTA. 

Quincy Media, Inc. .......................................................................................................................................................... QMI. 

Ramar Communications, Inc. ......................................................................................................................................... Ramar. 

Satellite Industry Association .......................................................................................................................................... SIA. 

Submarine Cable Coalition ............................................................................................................................................. Coalition. 

Commenters—Reply Comments 

American Cable Association ........................................................................................................................................... ACA. 

AT&T Services, Inc. ........................................................................................................................................................ AT&T. 

CenturyLink, Inc. ............................................................................................................................................................. CenturyLink. 

CTIA® .............................................................................................................................................................................. CTIA. 

Level 3 Communications, LLC ....................................................................................................................................... Level 3. 

44334 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

Commenter Abbreviation 

Romar Communications, Inc. ......................................................................................................................................... Romar. 

Commenter and date filed Abbreviation 

Ex Parte Filings 

American Cable Association (Aug. 30, 2017) ................................................................................................................ ACA. 

AT&T Services, Inc. (July 27, 2017) .............................................................................................................................. AT&T. 

DISH Network, L.L.C. (Aug. 22, 2017) ........................................................................................................................... DISH. 

Level 3 Communications, LLC (June 29, July 24, 2017) ............................................................................................... Level 3. 

Ramar Communications, Inc. (July 21, Aug. 15, 21, 22, 2017) ..................................................................................... Ramar. 

Regulatory fees in the top seven fee 

categories are collected by the 

Commission in advance to cover the 

term of the license and are submitted at 

the time the application is filed. 

Table 3—Calculation of FY 2017 

Revenue Requirements and Pro-Rata 

Fees 

Fee category FY 2017 

payment units Yrs 

FY 2016 

revenue 

estimate 

Pro-rated 

FY 2017 

revenue requirement 

Computed 

FY 2017 

regulatory 

fee 

Rounded 

FY 2017 

Reg. fee 

Expected 

FY 2017 

revenue 

PLMRS (Exclusive Use) .................................................... 1,300 10 625,000 325,000 25 25 325,000 

PLMRS (Shared use) ........................................................ 16,000 10 3,110,000 1,600,000 10 10 1,600,000 

Microwave ......................................................................... 11,800 10 3,125,000 2,950,000 25 25 2,950,000

Marine (Ship) ..................................................................... 8,100 10 1,035,000 1,215,000 15 15 1,215,000 

Aviation (Aircraft) ............................................................... 4,200 10 470,000 420,000 10 10 420,000 

Marine (Coast) .................................................................. 150 10 192,500 60,000 40 40 60,000 

Aviation (Ground) .............................................................. 1,100 10 220,000 220,000 20 20 220,000 

AM Class A4 ..................................................................... 65 1 313,500 305,500 4,699 4,700 305,500 

AM Class B4 ..................................................................... 1,523 1 3,875,875 3,807,500 2,488 2,500 3,807,500 

AM Class C 4 ..................................................................... 870 1 1,400,175 1,348,500 1,559 1,550 1,348,500 

AM Class D 4 ..................................................................... 1,492 1 4,587,900 4,476,000 3,004 3,000 4,476,000 

FM Classes A, B1 & C3 4 ................................................. 3,150 1 9,678,200 9,371,250 2,987 2,975 9,371,250 

FM Classes B, C, C0, C1 & C2 4 ...................................... 3,114 1 11,849,725 11,521,800 3,703 3,700 11,521,800 

AM Construction Permits 1 ................................................ 10 1 9,300 5,550 555 555 5,550 

FM Construction Permits 1 ................................................ 113 1 192,425 110,740 980 980 110,740 

Satellite TV ........................................................................ 126 1 224,000 217,350 1,722 1,725 217,350 

Digital TV Markets 1–10 ................................................... 139 1 8,433,825 8,305,250 59,748 59,750 8,305,250 

Digital TV Markets 11–25 ................................................. 131 1 6,348,825 5,898,275 45,013 45,025 5,898,275 

Digital TV Markets 26–50 ................................................. 181 1 5,525,025 5,439,050 30,049 30,050 5,439,050 

Digital TV Markets 51–100 ............................................... 285 1 4,301,600 4,289,250 14,976 14,975 4,267,875 

Digital TV Remaining Markets .......................................... 367 1 1,825,000 1,807,475 4,924 4,925 1,807,475 

Digital TV Construction Permits1 ...................................... 3 1 15,000 14,775 4,925 4,925 14,775 

LPTV/Translators/Boosters/Class A TV ............................ 4,051 1 1,785,420 1,741,930 428 430 1,741,930 

CARS Stations .................................................................. 230 1 220,875 215,050 935 935 215,050 

Cable TV Systems, including IPTV ................................... 62,000,000 1 64,200,000 58,900,000 .9529 .95 58,900,000 

Direct Broadcast Satellite (DBS) ....................................... 32,500,000 1 9,180,000 12,350,000 .3800 .38 12,350,000 

Interstate Telecommunication Service Providers ............. $37,000,000,000 1 142,722,000 111,740,000 0.00302 0.00302 111,740,000 

Toll Free Numbers ............................................................ 32,700,000 1 4,745,000 3,924,000 0.1174 0.12 3,924,000 

CMRS Mobile Services (Cellular/Public Mobile) ............... 393,000,000 1 73,200,000 82,530,000 0.210 0.21 82,530,000 

CMRS Messag. Services .................................................. 2,100,000 1 184,000 168,000 0.0800 0.080 168,000 

BRS2 ................................................................................. 870 1 645,250 558,050 800 800 696,000 

LMDS ................................................................................ 395 1 286,375 454,250 800 800 316,000 

Per 64 kbps Int’l Bearer Circuits Terrestrial (Common) & 

Satellite (Common & Non-Common) ............................. 30,056,000 1 638,000 801,295 .0267 .03 901,680 

Submarine Cable Providers (see chart in Appendix C) 3 41.19 1 5,486,242 5,660,765 137,437 137,425 5,660,261 

Earth Stations .................................................................... 3,400 1 1,173,000 1,224,000 360 360 1,224,000

Space Stations (Geostationary) ........................................ 97 1 13,155,125 13,669,725 140,924 140,925 13,669,725 

Space Stations (Non-Geostationary) ................................ 7 1 911,700 947,450 135,343 135,350 947,450 

****** Total Estimated Revenue to be Collected .............. ............................ .................... 384,890,362 358,571,405 .................... .................... 358,670,986 

****** Total Revenue Requirement ................................... ............................ .................... 384,012,497 356,710,992 .................... .................... 356,710,992 

Difference .......................................................................... ............................ .................... 877,865 1,860,413 .................... .................... 1,959,994 

Notes on Table 3 

1The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted, respectively, to set the regulatory fee to 

an amount no higher than the lowest licensed fee for that class of service. Reductions in the Digital (VHF/UHF) Construction Permit revenues, and in the AM and FM 

Construction Permit revenues, were offset by increases in the revenue totals for Digital television stations by market size, and in the AM and FM radio stations by 

class size and population served, respectively. 2 MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission’s Rules to Facilitate the 

Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150–2162 and 2500–2690 MHz Bands, Report & Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, para. 6 (69 FR 72048, December 10, 2004). 3The chart at the end of Table 4 lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from the adoption of 

the Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Report and Order and Further Notice of Proposed Rulemaking, 24 FCC Rcd 6388 (73 FR 

50285, August 26, 2008) and Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd 4208 (74 FR 22104, May 

12, 2009). 4The fee amounts listed in the column entitled ‘‘Rounded New FY 2017 Regulatory Fee’’ constitute a weighted average broadcast regulatory fee by class of service. The actual FY 2017 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4. 

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44335 

Table 4—FY 2017 Schedule of 

Regulatory Fees 

Regulatory fees in the top eight fee 

categories are collected by the 

Commission in advance to cover the 

term of the license and are submitted at 

the time the application is filed. 

Fee category 

Annual 

regulatory fee 

(U.S. $s) 

PLMRS (per license) (Exclusive Use) (47 CFR part 90) .................................................................................................................... 25 

Microwave (per license) (47 CFR part 101) ........................................................................................................................................ 25 

Marine (Ship) (per station) (47 CFR part 80) ...................................................................................................................................... 15 

Marine (Coast) (per license) (47 CFR part 80) ................................................................................................................................... 40 

Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category) ........................................................................... 10 

PLMRS (Shared Use) (per license) (47 CFR part 90) ........................................................................................................................ 10 

Aviation (Aircraft) (per station) (47 CFR part 87) ................................................................................................................................ 10 

Aviation (Ground) (per license) (47 CFR part 87) ............................................................................................................................... 20 

CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90) ....................................................................... .21 

CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90) .......................................................................................... .08 

Broadband Radio Service (formerly MMDS/MDS) (per license) (47 CFR part 27) ............................................................................ 800 

Local Multipoint Distribution Service (per call sign) (47 CFR part 101) ............................................................................................. 800 

AM Radio Construction Permits .......................................................................................................................................................... 555 

FM Radio Construction Permits .......................................................................................................................................................... 980 

Digital TV (47 CFR part 73) VHF and UHF Commercial: 

Markets 1–10 ................................................................................................................................................................................ 59,750 

Markets 11–25 .............................................................................................................................................................................. 45,025 

Markets 26–50 .............................................................................................................................................................................. 30,050 

Markets 51–100 ............................................................................................................................................................................ 14,975 

Remaining Markets ....................................................................................................................................................................... 4,925 

Construction Permits .................................................................................................................................................................... 4,925 

Satellite Television Stations (All Markets) ........................................................................................................................................... 1,725 

Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74) ................................................................................. 430 

CARS (47 CFR part 78) ...................................................................................................................................................................... 935 

Cable Television Systems (per subscriber) (47 CFR part 76), Including IPTV .................................................................................. .95 

Direct Broadcast Service (DBS) (per subscriber) (as defined by section 602(13) of the Act) ........................................................... .38 

Interstate Telecommunication Service Providers (per revenue dollar) ............................................................................................... .00302 

Toll Free (per toll free subscriber) (47 CFR 52.101(f)) ....................................................................................................................... .12 

Earth Stations (47 CFR part 25) ......................................................................................................................................................... 360 

Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational station) (47 CFR part 100) .................................................................................................................................................................... 140,925 

Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) ..................................................................... 135,350 

International Bearer Circuits—Terrestrial/Satellites (per 64KB circuit) ............................................................................................... .03 

Submarine Cable Landing Licenses Fee (per cable system) ............................................................................................................. See Table 

Below 

FY 2017 RADIO STATION REGULATORY FEES

Population 

served AM Class A AM Class B AM Class C AM Class D FM Classes A, B1 & C3 

FM Classes 

B, C, C0, C1 

& C2 

<=25,000 .................................................. $895 $640 $555 $610 $980 $1,100 

25,001–75,000 ......................................... 1,350 955 830 915 1,475 1,650 

75,001–150,000 ....................................... 2,375 1,700 1,475 1,600 2,600 2,925 

150,001–500,000 ..................................... 3,550 2,525 2,200 2,425 3,875 4,400 

500,001–1,200,000 .................................. 5,325 3,800 3,300 3,625 5,825 6,575 

1,200,001–3,000,00 ................................. 7,975 5,700 4,950 5,425 8,750 9,875 

3,000,001–6,000,00 ................................. 11,950 8,550 7,400 8,150 13,100 14,800 

>6,000,000 ............................................... 17,950 12,825 11,100 12,225 19,650 22,225 

INTERNATIONAL BEARER CIRCUITS—SUBMARINE CABLE

Submarine cable systems 

(capacity as of December 31, 2016) Fee amount 

< 2.5 Gbps ........................................................................................................................................................................................... $8,600 

2.5 Gbps or greater, but less than 5 Gbps ......................................................................................................................................... 17,175 

5 Gbps or greater, but less than 10 Gbps .......................................................................................................................................... 34,350 

10 Gbps or greater, but less than 20 Gbps ........................................................................................................................................ 68,725 

20 Gbps or greater .............................................................................................................................................................................. 137,425 

44336 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

Table 5—Sources of Payment Unit 

Estimates for FY 2017 

In order to calculate individual 

service fees for FY 2017, we adjusted FY 

2016 payment units for each service to 

more accurately reflect expected FY 

2017 payment liabilities. We obtained 

our updated estimates through a variety 

of means. For example, we used 

Commission licensee data bases, actual 

prior year payment records and industry 

and trade association projections when 

available. The databases we consulted 

include our Universal Licensing System 

(ULS), International Bureau Filing 

System (IBFS), Consolidated Database 

System (CDBS) and Cable Operations 

and Licensing System (COALS), as well 

as reports generated within the 

Commission such as the Wireless 

Telecommunications Bureau’s 

Numbering Resource Utilization 

Forecast. 

We sought verification for these 

estimates from multiple sources and, in 

all cases, we compared FY 2017 

estimates with actual FY 2016 payment 

units to ensure that our revised 

estimates were reasonable. Where 

appropriate, we adjusted and/or 

rounded our final estimates to take into 

consideration the fact that certain 

variables that impact on the number of 

payment units cannot yet be estimated 

with sufficient accuracy. These include 

an unknown number of waivers and/or 

exemptions that may occur in FY 2017 

and the fact that, in many services, the 

number of actual licensees or station 

operators fluctuates from time to time 

due to economic, technical, or other 

reasons. When we note, for example, 

that our estimated FY 2017 payment 

units are based on FY 2016 actual 

payment units, it does not necessarily 

mean that our FY 2017 projection is the 

same number as in FY 2016. We have 

either rounded the FY 2017 number or 

adjusted it slightly to account for these 

variables. 

Fee category Sources of payment unit estimates 

Land Mobile (All), Microwave, Marine (Ship & 

Coast), Aviation (Aircraft & Ground), Domestic Public Fixed.

Based on Wireless Telecommunications Bureau (WTB) projections of new applications and renewals taking into consideration existing Commission licensee data bases. Aviation (Aircraft) 

and Marine (Ship) estimates have been adjusted to take into consideration the licensing of 

portions of these services on a voluntary basis. 

CMRS Cellular/Mobile Services ......................... Based on WTB projection reports, and FY 16 payment data. 

CMRS Messaging Services ................................ Based on WTB reports, and FY 16 payment data. 

AM/FM Radio Stations ........................................ Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units. 

Digital TV Stations ..............................................

(Combined VHF/UHF units) ................................

Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units. 

AM/FM/TV Construction Permits ........................ Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units. 

LPTV, Translators and Boosters, Class A Television.Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units. 

BRS (formerly MDS/MMDS) ...............................

LMDS ..................................................................

Based on WTB reports and actual FY 2016 payment units. 

Based on WTB reports and actual FY 2016 payment units. 

Cable Television Relay Service (CARS) Stations.Based on data from Media Bureau’s COALS database and actual FY 2016 payment units. 

Cable Television System Subscribers, Including 

IPTV Subscribers.

Based on publicly available data sources for estimated subscriber counts and actual FY 2016 

payment units. 

Interstate Telecommunication Service Providers Based on FCC Form 499–Q data for the four quarters of calendar year 2016, the Wireline 

Competition Bureau projected the amount of calendar year 2016 revenue that will be reported on 2017 FCC Form 499–A worksheets due in April, 2017. 

Earth Stations ..................................................... Based on International Bureau (‘‘IB’’) licensing data and actual FY 2016 payment units. 

Space Stations (GSOs & NGSOs) ..................... Based on IB data reports and actual FY 2016 payment units. 

International Bearer Circuits ............................... Based on IB reports and submissions by licensees, adjusted as necessary. 

Submarine Cable Licenses ................................. Based on IB license information. 

Table 6—Factors, Measurements, and 

Calculations That Determine Station 

Signal Contours and Associated 

Population Coverages 

AM Stations 

For stations with nondirectional 

daytime antennas, the theoretical 

radiation was used at all azimuths. For 

stations with directional daytime 

antennas, specific information on each 

day tower, including field ratio, phase, 

spacing, and orientation was retrieved, 

as well as the theoretical pattern rootmean-square of the radiation in all 

directions in the horizontal plane (RMS) 

figure (milliVolt per meter (mV/m) @1 

km) for the antenna system. The 

standard, or augmented standard if 

pertinent, horizontal plane radiation 

pattern was calculated using techniques 

and methods specified in §§ 73.150 and 

73.152 of the Commission’s rules. 

Radiation values were calculated for 

each of 360 radials around the 

transmitter site. Next, estimated soil 

conductivity data was retrieved from a 

database representing the information in 

FCC Figure R3. Using the calculated 

horizontal radiation values, and the 

retrieved soil conductivity data, the 

distance to the principal community (5 

mV/m) contour was predicted for each 

of the 360 radials. The resulting 

distance to principal community 

contours were used to form a 

geographical polygon. Population 

counting was accomplished by 

determining which 2010 block centroids 

were contained in the polygon. (A block 

centroid is the center point of a small 

area containing population as computed 

by the U.S. Census Bureau.) The sum of 

the population figures for all enclosed 

blocks represents the total population 

for the predicted principal community 

coverage area. 

FM Stations 

The greater of the horizontal or 

vertical effective radiated power (ERP) 

(kW) and respective height above 

average terrain (HAAT) (m) combination 

was used. Where the antenna height 

above mean sea level (HAMSL) was 

available, it was used in lieu of the 

average HAAT figure to calculate 

specific HAAT figures for each of 360 

radials under study. Any available 

directional pattern information was 

applied as well, to produce a radialspecific ERP figure. The HAAT and ERP 

figures were used in conjunction with 

the Field Strength (50–50) propagation 

curves specified in 47 CFR 73.313 to 

predict the distance to the principal 

community (70 dBu (decibel above 1 

microVolt per meter) or 3.17 mV/m) 

contour for each of the 360 radials. The 

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44337 

resulting distance to principal 

community contours were used to form 

a geographical polygon. Population 

counting was accomplished by 

determining which 2010 block centroids 

were contained in the polygon. The sum 

of the population figures for all enclosed 

blocks represents the total population 

for the predicted principal community 

coverage area. 

Table 7—FY 2016 Schedule of 

Regulatory Fees 

Regulatory fees in the top eight fee 

categories are collected by the 

Commission in advance to cover the 

term of the license and are submitted at 

the time the application is filed. 

Fee Category 

Annual 

regulatory fee 

(U.S. $s) 

PLMRS (per license) (Exclusive Use) (47 CFR part 90) .................................................................................................................... 25 

Microwave (per license) (47 CFR part 101) ........................................................................................................................................ 25 

Marine (Ship) (per station) (47 CFR part 80) ...................................................................................................................................... 15 

Marine (Coast) (per license) (47 CFR part 80) ................................................................................................................................... 40 

Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category) ........................................................................... 10 

PLMRS (Shared Use) (per license) (47 CFR part 90) ........................................................................................................................ 10 

Aviation (Aircraft) (per station) (47 CFR part 87) ................................................................................................................................ 10 

Aviation (Ground) (per license) (47 CFR part 87) ............................................................................................................................... 20 

CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90) ....................................................................... .20 

CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90) .......................................................................................... .08 

Broadband Radio Service (formerly MMDS/MDS) (per license) (47 CFR part 27) ............................................................................ 725 

Local Multipoint Distribution Service (per call sign) (47 CFR part 101) ............................................................................................. 725 

AM Radio Construction Permits .......................................................................................................................................................... 620 

FM Radio Construction Permits .......................................................................................................................................................... 1,075 

Digital TV (47 CFR part 73) VHF and UHF Commercial: 

Markets 1–10 ................................................................................................................................................................................ 60,675 

Markets 11–25 .............................................................................................................................................................................. 45,675 

Markets 26–50 .............................................................................................................................................................................. 30,525 

Markets 51–100 ............................................................................................................................................................................ 15,200 

Remaining Markets ....................................................................................................................................................................... 5,000 

Construction Permits .................................................................................................................................................................... 5,000 

Satellite Television Stations (All Markets) ........................................................................................................................................... 1,750 

Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74) ................................................................................. 455 

CARS (47 CFR part 78) ...................................................................................................................................................................... 775 

Cable Television Systems (per subscriber) (47 CFR part 76), Including IPTV .................................................................................. 1.00 

Direct Broadcast Service (DBS) (per subscriber) (as defined by section 602(13) of the Act) ........................................................... .27 

Interstate Telecommunication Service Providers (per revenue dollar) ............................................................................................... .00371 

Toll Free (per toll free subscriber) (47 CFR 52.101(f)) ....................................................................................................................... .13 

Earth Stations (47 CFR part 25) ......................................................................................................................................................... 345 

Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational station) (47 CFR part 100) .................................................................................................................................................................... 138,475 

Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) ..................................................................... 151,950 

International Bearer Circuits—Terrestrial/Satellites (per 64KB circuit) ............................................................................................... .02 

Submarine Cable Landing Licenses Fee (per cable system) ............................................................................................................. See Table 

Below 

FY 2016 Schedule of Regulatory Fees: 

(continued) 

FY 2016 RADIO STATION REGULATORY FEES

Population 

served AM Class A AM Class B AM Class C AM Class D FM Classes A, B1 & C3 

FM Classes 

B, C, C0, C1 

& C2 

<=25,000 .................................................. $990 $715 $620 $685 $1,075 $1,250 

25,001–75,000 ......................................... $1,475 $1,075 $925 $1,025 $1,625 $1,850 

75,001–150,000 ....................................... $2,200 $1,600 $1,375 $1,525 $2,400 $2,750 

150,001–500,000 ..................................... $3,300 $2,375 $2,075 $2,275 $3,600 $4,125 

500,001–1,200,000 .................................. $5,500 $3,975 $3,450 $3,800 $6,000 $6,875 

1,200,001–3,000,00 ................................. $8,250 $5,950 $5,175 $5,700 $9,000 $10,300 

3,000,001–6,000,00 ................................. $11,000 $7,950 $6,900 $7,600 $12,000 $13,750 

>6,000,000 ............................................... $13,750 $9,950 $8,625 $9,500 $15,000 $17,175 

44338 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

170 5 U.S.C. 603. The RFA, 5 U.S.C. 601–612 has 

been amended by the Small Business Regulatory 

Enforcement Fairness Act of 1996 (SBREFA), Public 

Law Number 104–121, Title II, 110 Stat. 847 (1996). 171Assessment and Collection of Regulatory Fees 

for Fiscal Year 2017, Notice of Proposed 

Rulemaking, MD Docket No. 17–134, 32 FCC Rcd 

4526 (2017) (FY 2017 NPRM); 80 FR 26019, June 6, 

2017. 172 5 U.S.C. 604. 173 47 U.S.C. 159. 174 47 U.S.C. 159(a). 

175 5 U.S.C. 603(b)(3). 

176 5 U.S.C. 601(6). 

177 5 U.S.C. 601(3) (incorporating by reference the 

definition of ‘‘small-business concern’’ in the Small 

Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C. 

601(3), the statutory definition of a small business 

applies ‘‘unless an agency, after consultation with 

the Office of Advocacy of the Small Business 

Administration and after opportunity for public 

comment, establishes one or more definitions of 

such term which are appropriate to the activities of 

the agency and publishes such definition(s) in the 

Federal Register.’’ 

178 15 U.S.C. 632. 

179See SBA, Office of Advocacy, ‘‘Frequently 

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

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

180http://www.census.gov/cgi-bin/sssd/naics/ 

naicsrch. 

181See 13 CFR 120.201, NAICS code 517110. 

182http://factfinder.census.gov/faces/ 

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

ECN_2012_US_51SSSZ5&prodType=table. 

FY 2016 SCHEDULE OF REGULATORY FEES

International Bearer Circuits—Submarine Cable 

Submarine cable systems 

(capacity as of December 31, 2015) Fee amount 

< 2.5 Gbps ........................................................................................................................................................................................... $8,325 

2.5 Gbps or greater, but less than 5 Gbps ......................................................................................................................................... 16,650 

5 Gbps or greater, but less than 10 Gbps .......................................................................................................................................... 33,300 

10 Gbps or greater, but less than 20 Gbps ........................................................................................................................................ 66,600 

20 Gbps or greater .............................................................................................................................................................................. 133,200 

VII. Final Regulatory Flexibility 

Analysis 

58. As required by the Regulatory 

Flexibility Act of 1980, as amended 

(RFA),170 an Initial Regulatory 

Flexibility Analysis (IRFA) was 

included in the Notice of Proposed 

Rulemaking.171 The Commission sought 

written public comment on these 

proposals including comment on the 

IRFA. This Final Regulatory Flexibility 

Analysis (FRFA) conforms to the 

IRFA.172

A. Need for, and Objectives of, the 

Report and Order 

59. In this Report and Order, we 

conclude the Assessment and Collection 

of Regulatory Fees for Fiscal Year (FY) 

2017 proceeding to collect $356,710,992 

in regulatory fees for FY 2017, pursuant 

to section 9 of the Communications Act 

of 1934, as amended (Communications 

Act or Act).173 These regulatory fees 

will be due in September 2017. Under 

section 9 of the Communications Act, 

regulatory fees are mandated by 

Congress and collected to recover the 

regulatory costs associated with the 

Commission’s enforcement, policy and 

rulemaking, user information, and 

international activities in an amount 

that can be reasonably expected to equal 

the amount of the Commission’s annual 

appropriation.174

60. This FY 2017 Report and Order 

adopts a regulatory fee schedule that 

includes the following noteworthy 

changes from prior years: (1) A 

reallocation of 38 FTEs in the Wireline 

Competition Bureau from direct to 

indirect; (2) a reallocation of four FTEs 

from the Wireline Competition Bureau 

to the Wireless Telecommunications 

Bureau; (3) an updated regulatory fee for 

Direct Broadcast Satellite (DBS) 

providers, a subcategory in the cable 

television and Internet Protocol 

Television (IPTV) category; (4) 

adjustments to the regulatory fees on 

radio and television broadcasters; (5) an 

increase in the de minimis threshold for 

annual regulatory fee payments from 

$500 to $1,000; and (6) the elimination 

of the distinction between non-common 

carrier and common carrier terrestrial 

International Bearer Circuits (IBCs). 

B. Summary of the Significant Issues 

Raised by the Public Comments in 

Response to the IRFA 

61. None. 

C. Description and Estimate of the 

Number of Small Entities to Which the 

Rules Will Apply 

62. The RFA directs agencies to 

provide a description of, and where 

feasible, an estimate of the number of 

small entities that may be affected by 

the proposed rules and policies, if 

adopted.175 The RFA generally defines 

the term ‘‘small entity’’ as having the 

same meaning as the terms ‘‘small 

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

‘‘small governmental jurisdiction.’’ 176

In addition, the term ‘‘small business’’ 

has the same meaning as the term 

‘‘small business concern’’ under the 

Small Business Act.177 A ‘‘small 

business concern’’ is one which: (1) Is 

independently owned and operated; (2) 

is not dominant in its field of operation; 

and (3) satisfies any additional criteria 

established by the SBA.178 Nationwide, 

there are a total of approximately 27.9 

million small businesses, according to 

the SBA.179

63. 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.’’ 180 The SBA has developed a 

small business size standard for Wired 

Telecommunications Carriers, which 

consists of all such companies having 

1,500 or fewer employees.181 Census 

data for 2012 shows that there were 

3,117 firms that operated that year. Of 

this total, 3,083 operated with fewer 

than 1,000 employees.182 Thus, under 

this size standard, most firms in this 

industry can be considered small. 

64. Local Exchange Carriers (LECs). 

Neither the Commission nor the SBA 

has developed a size standard for small 

businesses specifically applicable to 

local exchange services. The closest 

applicable NAICS code category is 

Wired Telecommunications Carriers as 

defined in paragraph 6 of this FRFA. 

Under the applicable SBA size standard, 

such a business is small if it has 1,500 

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44339 

183 13 CFR 121.201, NAICS code 517110. 184http://factfinder.census.gov/faces/table

services/jsf/pages/productview.xhtml?pid=ECN_

2012_US_51SSSZ5&prodType=table. 185 13 CFR 121.201, NAICS code 517110. 186http://factfinder.census.gov/faces/table

services/jsf/pages/productview.xhtml?pid=ECN_

2012_US_51SSSZ5&prodType=table. 187See Trends in Telephone Service, Federal 

Communications Commission, Wireline 

Competition Bureau, Industry Analysis and 

Technology Division at Table 5.3 (September 2010) 

(Trends in Telephone Service). 188 Id. 189 13 CFR 121.201, NAICS code 517110. 190http://factfinder.census.gov/faces/ 

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

ECN_2012_US_51SSSZ5&prodType=table. 

191See Trends in Telephone Service, at Table 5.3. 

192 Id. 

193 Id. 

194 Id. 

195 Id. 

196 13 CFR 121.201, NAICS code 517110. 

197http://factfinder.census.gov/faces/table

services/jsf/pages/productview.xhtml?pid=ECN_

2012_US_51SSSZ5&prodType=table. 

198See Trends in Telephone Service, at Table 5.3. 

199 Id. 

200http://www.census.gov/cgi-bin/ssd/naics/ 

naicsrch. 

201 13 CFR 121.201, NAICS code 517911. 

202http://factfinder.census.gov/faces/

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ5&prodType=table. 

203See Trends in Telephone Service, at Table 5.3. 

204 Id. 

205 13 CFR 121.201, NAICS code 517911. 

206http://factfinder.census.gov/faces/

tableservices/jsf/pages/ 

productview.xhtml?pid=ECN_2012_US_51SSSZ5&

prodType=table. 

or fewer employees.183 According to 

Commission data, census data for 2012 

shows that there were 3,117 firms that 

operated that year. Of this total, 3,083 

operated with fewer than 1,000 

employees.184 The Commission 

therefore estimates that most providers 

of local exchange carrier service are 

small entities that may be affected by 

the rules adopted. 

65. Incumbent LECs. Neither the 

Commission nor the SBA has developed 

a small business size standard 

specifically for incumbent local 

exchange services. The closest 

applicable NAICS code category is 

Wired Telecommunications Carriers as 

defined in paragraph 6 of this FRFA. 

Under that size standard, such a 

business is small if it has 1,500 or fewer 

employees.185 According to 

Commission data, 3,117 firms operated 

in that year. Of this total, 3,083 operated 

with fewer than 1,000 employees.186

Consequently, the Commission 

estimates that most providers of 

incumbent local exchange service are 

small businesses that may be affected by 

the rules and policies adopted. Three 

hundred and seven (307) Incumbent 

Local Exchange Carriers reported that 

they were incumbent local exchange 

service providers.187 Of this total, an 

estimated 1,006 have 1,500 or fewer 

employees.188

66. Competitive Local Exchange 

Carriers (Competitive LECs), 

Competitive Access Providers (CAPs), 

Shared-Tenant Service Providers, and 

Other Local Service Providers. Neither 

the Commission nor the SBA has 

developed a small business size 

standard specifically for these service 

providers. The appropriate NAICS code 

category is Wired Telecommunications 

Carriers, as defined in paragraph 6 of 

this FRFA. Under that size standard, 

such a business is small if it has 1,500 

or fewer employees.189 U.S. Census data 

for 2012 indicate that 3,117 firms 

operated during that year. Of that 

number, 3,083 operated with fewer than 

1,000 employees.190 Based on this data, 

the Commission concludes that most 

Competitive LECS, CAPs, SharedTenant Service Providers, and Other 

Local Service Providers, are small 

entities. According to Commission data, 

1,442 carriers reported that they were 

engaged in the provision of either 

competitive local exchange services or 

competitive access provider services.191

Of these 1,442 carriers, an estimated 

1,256 have 1,500 or fewer employees.192

In addition, 17 carriers have reported 

that they are Shared-Tenant Service 

Providers, and all 17 are estimated to 

have 1,500 or fewer employees.193 Also, 

72 carriers have reported that they are 

Other Local Service Providers.194 Of this 

total, 70 have 1,500 or fewer 

employees.195 Consequently, based on 

internally researched FCC data, the 

Commission estimates that most 

providers of competitive local exchange 

service, competitive access providers, 

Shared-Tenant Service Providers, and 

Other Local Service Providers are small 

entities. 

67. Interexchange Carriers (IXCs). 

Neither the Commission nor the SBA 

has developed a definition for 

Interexchange Carriers. The closest 

NAICS code category is Wired 

Telecommunications Carriers as defined 

in paragraph 6 of this FRFA. The 

applicable size standard under SBA 

rules is that such a business is small if 

it has 1,500 or fewer employees.196 U.S. 

Census data for 2012 indicates that 

3,117 firms operated during that year. 

Of that number, 3,083 operated with 

fewer than 1,000 employees.197

According to internally developed 

Commission data, 359 companies 

reported that their primary 

telecommunications service activity was 

the provision of interexchange 

services.198 Of this total, an estimated 

317 have 1,500 or fewer employees.199

Consequently, the Commission 

estimates that most interexchange 

service providers are small entities that 

may be affected by the rules adopted. 

68. Prepaid Calling Card Providers. 

Neither the Commission nor the SBA 

has developed a small business 

definition specifically for prepaid 

calling card providers. The most 

appropriate NAICS code-based category 

for defining prepaid calling card 

providers is Telecommunications 

Resellers. This industry comprises 

establishments engaged in purchasing 

access and network capacity from 

owners and operators of 

telecommunications networks and 

reselling wired and wireless 

telecommunications services (except 

satellite) to businesses and households. 

Establishments in this industry resell 

telecommunications; they do not 

operate transmission facilities and 

infrastructure. Mobile virtual networks 

operators (MVNOs) are included in this 

industry.200 Under the applicable SBA 

size standard, such a business is small 

if it has 1,500 or fewer employees.201

U.S. Census data for 2012 show that 

1,341 firms provided resale services 

during that year. Of that number, 1,341 

operated with fewer than 1,000 

employees.202 Thus, under this category 

and the associated small business size 

standard, the majority of these prepaid 

calling card providers can be considered 

small entities. According to Commission 

data, 193 carriers have reported that 

they are engaged in the provision of 

prepaid calling cards.203 All 193 carriers 

have 1,500 or fewer employees.204

Consequently, the Commission 

estimates that the majority of prepaid 

calling card providers are small entities 

that may be affected by the rules 

adopted. 

69. Local Resellers. Neither the 

Commission nor the SBA has developed 

a small business size standard 

specifically for Local Resellers. The SBA 

has developed a small business size 

standard for the category of 

Telecommunications Resellers. Under 

that size standard, such a business is 

small if it has 1,500 or fewer 

employees.205 Census data for 2012 

show that 1,341 firms provided resale 

services during that year. Of that 

number, 1,341 operated with fewer than 

1,000 employees.206 Under this category 

and the associated small business size 

standard, the majority of these local 

resellers can be considered small 

entities. According to Commission data, 

213 carriers have reported that they are 

engaged in the provision of local resale 

44340 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

207See Trends in Telephone Service, at Table 5.3. 

208 Id. 

209 13 CFR 121.201, NAICS code 517911. 

210http://factfinder.census.gov/faces/

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ5&prodType=table. 

211 Id. 

212Trends in Telephone Service, at Table 5.3. 

213 Id. 

214 13 CFR 121.201, NAICS code 517110. 

215http://factfinder.census.gov/faces/

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ5&prodType=table. 

216Trends in Telephone Service, at Table 5.3. 

217 Id. 

218NAICS code 517210. See http://

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

219Trends in Telephone Service, at Table 5.3. 

220 Id. 

221U.S. Census Bureau, 2012 NAICS code 

Economic Census Definitions, http://

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

222 13 CFR 121.201, NAICS code 515120. 

223See FCC News Release, ‘‘Broadcast Station 

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

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

DOC-344256A1.pdf. 

224We recognize that BIA’s estimate differs 

slightly from the FCC total. 

225 ‘‘[Business concerns] are affiliates of each 

other when one concern controls or has the power 

to control the other or a third party or parties 

controls or has to power to control both.’’ 13 CFR 

21.103(a)(1). 

226See FCC News Release, ‘‘Broadcast Station 

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

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

DOC-344256A1.pdf. 

227See generally 5 U.S.C. 601(4), (6). 

services.207 Of this total, an estimated 

211 have 1,500 or fewer employees.208

Consequently, the Commission 

estimates that the majority of local 

resellers are small entities that may be 

affected by the rules adopted. 

70. Toll Resellers. The Commission 

has not developed a definition for Toll 

Resellers. The closest NAICS code 

Category is Telecommunications 

Resellers, and the SBA has developed a 

small business size standard for the 

category of Telecommunications 

Resellers.209 Under that size standard, 

such a business is small if it has 1,500 

or fewer employees.210 Census data for 

2012 show that 1,341 firms provided 

resale services during that year. Of that 

number, 1,341 operated with fewer than 

1,000 employees.211 Thus, under this 

category and the associated small 

business size standard, the majority of 

these resellers can be considered small 

entities. According to Commission data, 

881 carriers have reported that they are 

engaged in the provision of toll resale 

services.212 Of this total, an estimated 

857 have 1,500 or fewer employees.213

Consequently, the Commission 

estimates that the majority of toll 

resellers are small entities. 

71. Other Toll Carriers. Neither the 

Commission nor the SBA has developed 

a definition for small businesses 

specifically applicable to Other Toll 

Carriers. This category includes toll 

carriers that do not fall within the 

categories of interexchange carriers, 

operator service providers, prepaid 

calling card providers, satellite service 

carriers, or toll resellers. The closest 

applicable NAICS code category is for 

Wired Telecommunications Carriers as 

defined in paragraph 6 of this FRFA. 

Under the applicable SBA size standard, 

such a business is small if it has 1,500 

or fewer employees.214 Census data for 

2012 shows that there were 3,117 firms 

that operated that year. Of this total, 

3,083 operated with fewer than 1,000 

employees.215 Thus, under this category 

and the associated small business size 

standard, most Other Toll Carriers can 

be considered small. According to 

internally developed Commission data, 

284 companies reported that their 

primary telecommunications service 

activity was the provision of other toll 

carriage.216 Of these, an estimated 279 

have 1,500 or fewer employees.217

Consequently, the Commission 

estimates that most Other Toll Carriers 

are small entities. 

72. 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.218 The appropriate size 

standard under SBA rules is that such 

a business is small if it has 1,500 or 

fewer employees. For this industry, 

Census data for 2012 show that there 

were 967 firms that operated for the 

entire year. Of this total, 955 firms had 

fewer than 1,000 employees. Thus, 

under this category and the associated 

size standard, the Commission estimates 

that the majority of wireless 

telecommunications carriers (except 

satellite) are small entities. Similarly, 

according to internally developed 

Commission data, 413 carriers reported 

that they were engaged in the provision 

of wireless telephony, including cellular 

service, Personal Communications 

Service (PCS), and Specialized Mobile 

Radio (SMR) services.219 Of this total, 

an estimated 261 have 1,500 or fewer 

employees.220 Thus, using available 

data, we estimate that the majority of 

wireless firms can be considered small. 

73. Television Broadcasting. This 

Economic Census category ‘‘comprises 

establishments primarily engaged in 

broadcasting images together with 

sound. These establishments operate 

television broadcasting studios and 

facilities for the programming and 

transmission of programs to the 

public.’’ 221 These establishments also 

produce or transmit visual programming 

to affiliated broadcast television 

stations, which in turn broadcast the 

programs to the public on a 

predetermined schedule. Programming 

may originate in their own studio, from 

an affiliated network, or from external 

sources. The SBA has created the 

following small business size standard 

for Television Broadcasting firms: those 

having $38.5 million or less in annual 

receipts.222 The 2012 Economic Census 

reports that 751 television broadcasting 

firms operated during that year. Of that 

number, 656 had annual receipts of less 

than $25 million per year. Based on that 

Census data we conclude that most 

firms that operate television stations are 

small. The Commission has estimated 

the number of licensed commercial 

television stations to be 1,383.223 In 

addition, according to Commission staff 

review of the BIA Advisory Services, 

LLC’s Media Access Pro Television 

Database, on March 28, 2012, about 950 

of an estimated 1,300 commercial 

television stations (or approximately 73 

percent) had revenues of $14 million or 

less.224 We therefore estimate that the 

majority of commercial television 

broadcasters are small entities. 

74. In assessing whether a business 

concern qualifies as small under the 

above definition, business (control) 

affiliations 225 must be included. Our 

estimate, therefore, likely overstates the 

number of small entities that might be 

affected by our action, because the 

revenue figure on which it is based does 

not include or aggregate revenues from 

affiliated companies. In addition, an 

element of the definition of ‘‘small 

business’’ is that the entity not be 

dominant in its field of operation. We 

are unable at this time to define or 

quantify the criteria that would 

establish whether a specific television 

station is dominant in its field of 

operation. Accordingly, the estimate of 

small businesses to which rules may 

apply does not exclude any television 

station from the definition of a small 

business on this basis and is therefore 

possibly over-inclusive to that extent. 

75. In addition, the Commission has 

estimated the number of licensed 

noncommercial educational television 

stations to be 394.226 These stations are 

non-profit, and therefore considered to 

be small entities.227 There are also 2,382 

low power television stations, including 

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44341 

228See FCC News Release, ‘‘Broadcast Station 

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

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

DOC-344256A1.pdf. 

229https://www.census.gov.cgi-bin/sssd/naics/ 

naicsrch. 

230 13 CFR 121.201, NAICS code 515112. 

231http://factfinder.census.gov/faces/table

services/jsf/pages/productview.xhtml?pid=ECN_

2012_US_51SSSZ5&prodType=table. 

232 ‘‘Concerns and entities are affiliates of each 

other when one controls or has the power to control 

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

the power to control both. It does not matter 

whether control is exercised, so long as the power 

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

regulation). 

233 13 CFR 121.102(b) (an SBA regulation). 

234https://www.census.gov.cgi-bin/sssd/naics/ 

naicsrch. 235http://factfinder.census.gov/faces/table

services/jsf/pages/productview.xhtml?pid=ECN_

2012_US–51SSSZ5&prodType=Table. 236 47 CFR 76.901(e). 237See Eighteenth Competition Report, 32 FCC 

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

Operations and Licensing Systems (COALS) 

database). 238See https://www.snl.com/web/client?auth=

inherit#industry/topCableMSOs (last visited July 

18, 2017). 

239 47 CFR 76.901(c) 

240See footnote 2, supra. 

241August 5, 2015 report from the Media Bureau 

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

coals. 

242 47 CFR 76.901(f) and notes ff. 1, 2, and 3. 

243See NCTA Industry Data, Cable’s Customer 

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

244 47 CFR 76.901(f) and notes ff. 1, 2, and 3. 

245See https://www.snl.com/web/client?auth=

inherit#industry/topCableMSOs (last visited July 

18, 2018). 

246The Commission does receive such 

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

operator appeals a local franchise authority’s 

finding that the operator does not qualify as a small 

cable operator pursuant to § 76.901(f) of the 

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

Class A stations.228 Given the nature of 

these services, we will presume that all 

LPTV licensees qualify as small entities 

under the above SBA small business 

size standard. 

76. Radio Stations. This Economic 

Census category ‘‘comprises 

establishments primarily engaged in 

broadcasting aural programs by radio to 

the public. Programming may originate 

in their own studio, from an affiliated 

network, or from external sources.’’ 229

The SBA has established a small 

business size standard for this category, 

which is: Such firms having $38.5 

million or less in annual receipts.230

Census data for 2012 show that 2,849 

radio station firms operated during that 

year. Of that number, 2,806 operated 

with annual receipts of less than $25 

million per year. 231 According to 

Commission staff review of BIA 

Advisory Services, LLC’s Media Access 

Pro Radio Database, on March 28, 2012, 

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

commercial radio stations had revenues 

of $38.5 million or less. Therefore, most 

such entities are small entities. 

77. In assessing whether a business 

concern qualifies as small under the 

above size standard, business 

affiliations must be included.232 In 

addition, to be determined to be a 

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

dominant in its field of operation.233 We 

note that it is difficult at times to assess 

these criteria in the context of media 

entities, and our estimate of small 

businesses may therefore be overinclusive. 

78. Cable Television and Other 

Subscription Programming. This 

industry comprises establishments 

primarily engaged in operating studios 

and facilities for the broadcasting of 

programs on a subscription or fee basis. 

The broadcast programming is typically 

narrowcast in nature (e.g., limited 

format, such as news, sports, education, 

or youth-oriented). These 

establishments produce programming in 

their own facilities or acquire 

programming from external sources. The 

programming material is usually 

delivered to a third party, such as cable 

systems or direct-to-home satellite 

systems, for transmission to viewers.234

The SBA has established a size standard 

for this industry of $38.5 million or less. 

Census data for 2012 shows that there 

were 367 firms that operated that year. 

Of this total, 319 operated with annual 

receipts of less than $25 million.235

Thus under this size standard, most 

firms offering cable and other program 

distribution services can be considered 

small and may be affected by rules 

adopted. 

79. Cable Companies and Systems. 

The Commission has developed its own 

small business size standards for the 

purpose of cable rate regulation. Under 

the Commission’s rules, a ‘‘small cable 

company’’ is one serving 400,000 or 

fewer subscribers nationwide.236

Industry data indicate that there are 

currently 4,413 active cable systems in 

the United States.237 Of this total, all but 

ten cable operators nationwide are small 

under the 400,000-subscriber size 

standard.238 In addition, under the 

Commission’s rate regulation rules, a 

‘‘small system’’ is a cable system serving 

15,000 or fewer subscribers.239 Current 

Commission records show 4,413 cable 

systems nationwide.240 Of this total, 

3,900 cable systems have fewer than 

15,000 subscribers, and 700 systems 

have 15,000 or more subscribers, based 

on the same records.241 Thus, under this 

standard as well, we estimate that most 

cable systems are small entities. 

80. Cable System Operators (Telecom 

Act Standard). The Communications 

Act also contains a size standard for 

small cable system operators, which is 

‘‘a cable operator that, directly or 

through an affiliate, serves in the 

aggregate fewer than 1 percent of all 

subscribers in the United States and is 

not affiliated with any entity or entities 

whose gross annual revenues in the 

aggregate exceed $250,000,000.’’ 242

There are approximately 53 million 

cable video subscribers in the United 

States today.243 Accordingly, an 

operator serving fewer than 524,037 

subscribers shall be deemed a small 

operator if its annual revenues, when 

combined with the total annual 

revenues of all its affiliates, do not 

exceed $250 million in the aggregate.244

Based on available data, we find that all 

but nine incumbent cable operators are 

small entities under this size 

standard.245 We note that the 

Commission neither requests nor 

collects information on whether cable 

system operators are affiliated with 

entities whose gross annual revenues 

exceed $250 million.246 Although it 

seems certain that some of these cable 

system operators are affiliated with 

entities whose gross annual revenues 

exceed $250 million, we are unable at 

this time to estimate with greater 

precision the number of cable system 

operators that would qualify as small 

cable operators under the definition in 

the Communications Act. 

81. Direct Broadcast Satellite (DBS) 

Service. DBS Service is a nationally 

distributed subscription service that 

delivers video and audio programming 

via satellite to a small parabolic dish 

antenna at the subscriber’s location. 

DBS is now included in SBA’s 

economic census category ‘‘Wired 

Telecommunications Carriers.’’ The 

Wired Telecommunications Carriers 

industry comprises establishments 

primarily engaged in operating and/or 

providing access to transmission 

facilities and infrastructure that they 

own and/or lease for the transmission of 

voice, data, text, sound, and video using 

wired telecommunications networks. 

Transmission facilities may be based on 

a single technology or combination of 

technologies. Establishments in this 

industry use the wired 

telecommunications network facilities 

that they operate to provide a variety of 

services, such as wired telephony 

services, including VoIP services, wired 

(cable) audio and video programming 

distribution; and wired broadband 

internet services. By exception, 

establishments providing satellite 

television distribution services using 

facilities and infrastructure that they 

44342 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

247http://www.census.gov/cgi-bin/sssd/naics/ 

naicsrch. 248NAICS code 517110; 13 CFR 121.201. 249http://factfinder.census.gov/faces/ 

tableservices.jasf/pages/productview.xhtml?

pid+ECN_2012_US.51SSSZ4&prodType=table. 

250http://www.census.gov/cgi-bin/ssssd/naics/ 

naicsrch. 

251 13 CFR 121.201; NAICS code 517919. 

252http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/ 

productview.xhtml?pid=ECN_2012_US_51SSSZ4&

prodType=table. 

253See 47 CFR 52.101(b) 

254 13 CFR 121.201, NAICS code 517110 

255 13 CFR 121.201, NAICS code 517210. 

256http://www.census.gov/cgi-bin/sssd/ 

naics.naicsrch. 

257 13 CFR 120.201, NAICS code 517110. 

258http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ4&prodType=table. 

259http://www.census.gov/cgi-bin/sssd/ 

naics.naicsrch. 

260 13 CFR 120.201, NAICS code 517120. 

261http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ4&prodType=table. 

262 13 CFR 120.201, NAICS code 541890. 

263 13 CFR 120.201, NAICS code 541618. 

264http://www.census.gov/cgi-bin/sssd/ 

naics.naicsrch. 

265 13 CFR 120.201, NAICS code 541890. 

266http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ4&prodType=table. 

operate are included in this industry.247

The SBA determines that a wireline 

business is small if it has fewer than 

1500 employees.248 Census data for 

2012 indicate that 3,117 wireline 

companies were operational during that 

year. Of that number, 3,083 operated 

with fewer than 1,000 employees.249

Based on that data, we conclude that 

most wireline firms are small under the 

applicable standard. However, currently 

only two entities provide DBS service, 

AT&T and DISH Network. AT&T and 

DISH Network each report annual 

revenues that are in excess of the 

threshold for a small business. 

Accordingly, we conclude that DBS 

service is provided only by large firms. 

82. All Other Telecommunications. 

‘‘All Other Telecommunications’’ is 

defined as follows: This U.S. industry is 

comprised of establishments that are 

primarily engaged in providing 

specialized telecommunications 

services, such as satellite tracking, 

communications telemetry, and radar 

station operation. This industry also 

includes establishments primarily 

engaged in providing satellite terminal 

stations and associated facilities 

connected with one or more terrestrial 

systems and capable of transmitting 

telecommunications to, and receiving 

telecommunications from, satellite 

systems. Establishments providing 

Internet services or voice over Internet 

protocol (VoIP) services via clientsupplied telecommunications 

connections are also included in this 

industry.250 The SBA has developed a 

small business size standard for ‘‘All 

Other Telecommunications,’’ which 

consists of all such firms with gross 

annual receipts of $32.5 million or 

less.251 For this category, census data for 

2012 show that there were 1,442 firms 

that operated for the entire year. Of 

these firms, a total of 1,400 had gross 

annual receipts of less than $25 

million.252 Thus, most ‘‘All Other 

Telecommunications’’ firms potentially 

affected by the rules adopted can be 

considered small. 

83. RespOrgs. RespOrgs, i.e., 

Responsible Organizations, are entities 

chosen by toll-free subscribers to 

manage and administer the appropriate 

records in the toll-free Service 

Management System for the toll-free 

subscriber.253 Although RespOrgs are 

often wireline carriers, they can also 

include non-carrier entities. Therefore, 

in the definition herein of RespOrgs, 

two categories are presented, i.e., Carrier 

RespOrgs and Non-Carrier RespOrgs. 

84. Carrier RespOrgs. Neither the 

Commission, the U.S. Census, nor the 

SBA have developed a definition for 

Carrier RespOrgs. Accordingly, the 

Commission believes that the closest 

NAICS code-based definitional 

categories for Carrier RespOrgs are 

Wired Telecommunications Carriers 254

and Wireless Telecommunications 

Carriers (except satellite).255

85. The U.S. Census Bureau defines 

Wired Telecommunications Carriers as 

establishments primarily engaged in 

operating and/or providing access to 

transmission facilities and infrastructure 

that they own and/or lease for the 

transmission of voice, data, text, sound, 

and video using wired communications 

networks. Transmission facilities may 

be based on a single technology or a 

combination of technologies. 

Establishments in this industry use the 

wired telecommunications network 

facilities that they operate to provide a 

variety of services, such as wired 

telephony services, including VoIP 

services, wired (cable) audio and video 

programming distribution, and wired 

broadband internet services. By 

exception, establishments providing 

satellite television distribution services 

using facilities and infrastructure that 

they operate are included in this 

industry.256 The SBA has developed a 

small business size standard for Wired 

Telecommunications Carriers, which 

consists of all such companies having 

1,500 or fewer employees.257 Census 

data for 2012 show that there were 3,117 

Wired Telecommunications Carrier 

firms that operated for that entire year. 

Of that number, 3,083 operated with 

less than 1,000 employees.258 Based on 

that data, we conclude that most Carrier 

RespOrgs that operated with wirelinebased technology are small. 

86. The U.S. Census Bureau defines 

Wireless Telecommunications Carriers 

(except satellite) as establishments 

engaged in operating and maintaining 

switching and transmission facilities to 

provide communications via the 

airwaves, such as cellular services, 

paging services, wireless internet access, 

and wireless video services.259 The 

appropriate size standard under SBA 

rules is that such a business is small if 

it has 1,500 or fewer employees.260

Census data for 2012 show that 967 

Wireless Telecommunications Carriers 

operated in that year. Of that number, 

955 operated with less than 1,000 

employees.261 Based on that data, we 

conclude that most Carrier RespOrgs 

that operated with wireless-based 

technology are small. 

87. Non-Carrier RespOrgs. Neither the 

Commission, the Census, nor the SBA 

have developed a definition of NonCarrier RespOrgs. Accordingly, the 

Commission believes that the closest 

NAICS code-based definitional 

categories for Non-Carrier RespOrgs are 

‘‘Other Services Related To 

Advertising’’ 262 and ‘‘Other 

Management Consulting Services.’’ 263

88. The U.S. Census defines Other 

Services Related to Advertising as 

comprising establishments primarily 

engaged in providing advertising 

services (except advertising agency 

services, public relations agency 

services, media buying agency services, 

media representative services, display 

advertising services, direct mail 

advertising services, advertising 

material distribution services, and 

marketing consulting services.264 The 

SBA has established a size standard for 

this industry as annual receipts of $15 

million dollars or less.265 Census data 

for 2012 show that 5,804 firms operated 

in this industry for the entire year. Of 

that number, 5,249 operated with 

annual receipts of less than $10 

million.266 Based on that data we 

conclude that most Non-Carrier 

RespOrgs who provide TFN-related 

advertising services are small. 

89. The U.S. Census defines Other 

Management Consulting Services as 

establishments primarily engaged in 

providing management consulting 

services (except administrative and 

general management consulting; human 

resources consulting; marketing 

consulting; or process, physical 

distribution, and logistics consulting). 

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44343 

267http://www.census.gov/cgi-bin/sssd/ 

naics.naicsrch. 

268 13 CFR 120.201, NAICS code 514618. 

269http://factfinder.census.gov/faces/ 

tableservices/jsf/pages/productview.xhtml?

pid=ECN_2012_US_51SSSZ4&prodType=table. 

270The four NAICS code-based categories 

selected above to provide definitions for Carrier and 

Non-Carrier RespOrgs were selected because as a 

group they refer generically and comprehensively to 

all RespOrgs. Therefore, all RespOrgs, including 

those not identified specifically or individually, 

must comply with the rules adopted in the 

Regulatory Fees Report and Order associated with 

this Final Regulatory Flexibility Analysis. 

271Email from Jennifer Blanchard of SOMOS 

dated July 1, 2016. 

272 5 U.S.C. 603(c)(1)–(c)(4). 

Establishments providing 

telecommunications or utilities 

management consulting services are 

included in this industry.267 The SBA 

has established a size standard for this 

industry of $15 million dollars or 

less.268 Census data for 2012 show that 

3,683 firms operated in this industry for 

that entire year. Of that number, 3,632 

operated with less than $10 million in 

annual receipts. 269 Based on this data, 

we conclude that most non-carrier 

RespOrgs who provide TFN-related 

management consulting services are 

small.270

90. In addition to the data contained 

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

NAICS code categories that provide 

definitions of what services and 

functions the Carrier and Non-Carrier 

RespOrgs provide, Somos, the trade 

association that monitors RespOrg 

activities, compiled data showing that 

as of July 1, 2016, there were 23 

RespOrgs operational in Canada and 436 

RespOrgs operational in the United 

States, for a total of 459 RespOrgs 

currently registered with Somos.271

D. Description of Projected Reporting, 

Recordkeeping and Other Compliance 

Requirements 

91. This Report and Order does not 

adopt any new reporting, recordkeeping, 

or other compliance requirements. 

E. Steps Taken To Minimize Significant 

Economic Impact on Small Entities, and 

Significant Alternatives Considered 

92. 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.272

93. This Report and Order does not 

adopt any new reporting requirements. 

Therefore, no adverse economic impact 

on small entities will be sustained based 

on reporting requirements. 

94. In keeping with the requirements 

of the Regulatory Flexibility Act, we 

have considered certain alternative 

means of mitigating the effects of fee 

increases to a particular industry 

segment. For example, the Commission 

increased the de minimis threshold 

from $500 to $1,000, which will impact 

many small entities that pay regulatory 

fees. Historically, many of these small 

entities have been late in making their 

fee payments to the Commission by the 

due date. This increase in the de 

minimis threshold to $1,000 will relieve 

regulatees both financially and 

administratively. This Report and Order 

also adopts regulatory fees for the 

smaller market AM and FM broadcast 

radio stations at a lower amount than 

had been proposed. Finally, regulatees 

may also seek waivers or other relief on 

the basis of financial hardship. See 47 

CFR 1.1166. 

F. Federal Rules That May Duplicate, 

Overlap, or Conflict 

95. None. 

VIII. Ordering Clauses 

96. Accordingly, it is ordered that, 

pursuant to sections 4(i) and (j), 9, and 

303(r) of the Communications Act of 

1934, as amended, 47 U.S.C. 154(i), 

154(j), 159, and 303(r), this Report and 

Order is hereby adopted. 

97. It is further ordered that this 

Report and Order shall be effective upon 

publication in the Federal Register. 

98. It is further ordered that the 

Commission’s Consumer & 

Governmental Affairs Bureau, Reference 

Information Center, shall send a copy of 

this Report and Order, including the 

Final Regulatory Flexibility Analysis, to 

the Chief Counsel for Advocacy of the 

U.S. Small Business Administration. 

List of Subjects in 47 CFR Part 1 

Administrative practice and 

procedure, Civil rights, Claims, 

Communications common carriers, 

Cuba, Drug abuse, Environmental 

impact statements, Equal access to 

justice, Equal employment opportunity, 

Federal buildings and facilities, 

Government employees, Income taxes, 

Indemnity payments, Individuals with 

disabilities, Investigations, Lawyers, 

Metric system, Penalties, Radio, 

Reporting and recordkeeping 

requirements, Telecommunications, 

Television, Wages. 

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary. 

Final Rules 

For the reasons discussed in the 

preamble, the Federal Communications 

Commission amends 47 CFR part 1 as 

follows: 

PART 1—PRACTICE AND 

PROCEDURE 

■ 1. The authority citation for part 1 

continues to read as follows: 

Authority: 47 U.S.C. 151, 154(i), 154(j), 

155, 157, 160, 201, 225, 227, 303, 309, 332, 

1403, 1404, 1451, 1452, and 1455. 

■ 2. Section 1.1152 is revised to read as 

follows: 

§ 1.1152 Schedule of annual regulatory 

fees for wireless radio services. 

Exclusive use services 

(per license) Fee amount 1

1. Land Mobile (Above 470 MHz and 220 MHz Local, Base Station & SMRS) (47 CFR part 90).

(a) New, Renew/Mod (FCC 601 & 159) ....................................................................................................................................... $25.00 

(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) ......................................................................................................... 25.00 

(c) Renewal Only (FCC 601 & 159) ............................................................................................................................................. 25.00 

(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ............................................................................................................... 25.00 

220 MHz Nationwide: 

(a) New, Renew/Mod (FCC 601 & 159) ....................................................................................................................................... 25.00 

(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) ......................................................................................................... 25.00 

(c) Renewal Only (FCC 601 & 159) ............................................................................................................................................. 25.00 

(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ............................................................................................................... 25.00 

44344 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

Exclusive use services 

(per license) Fee amount 1

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

(a) New, Renew/Mod (FCC 601 & 159) ....................................................................................................................................... 25.00 

(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) ......................................................................................................... 25.00 

(c) Renewal Only (FCC 601 & 159) ............................................................................................................................................. 25.00 

(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ............................................................................................................... 25.00 

3. Shared Use Services Land Mobile (Frequencies Below 470 MHz—except 220 MHz).

(a) New, Renew/Mod (FCC 601 & 159) ....................................................................................................................................... 10.00 

(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) ......................................................................................................... 10.00 

(c) Renewal Only (FCC 601 & 159) ............................................................................................................................................. 10.00 

(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ............................................................................................................... 10.00 

Rural Radio (Part 22): 

(a) New, Additional Facility, Major Renew/Mod (Electronic Filing) (FCC 601 & 159) ................................................................. 10.00 

(b) Renewal, Minor Renew/Mod (Electronic Filing) (FCC 601 & 159) Marine Coast .................................................................. 10.00 

Marine Coast (per license) (47 CFR part 80): 

(a) New Renewal/Mod (FCC 601 & 159) ..................................................................................................................................... 40.00 

(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159) ....................................................................................................... 40.00 

(c) Renewal Only (FCC 601 & 159) ............................................................................................................................................. 40.00 

(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ............................................................................................................... 40.00 

Aviation Ground: 

(a) New, Renewal/Mod (FCC 601 & 159) .................................................................................................................................... 20.00 

(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159) ....................................................................................................... 20.00 

(c) Renewal Only (FCC 601 & 159) ............................................................................................................................................. 20.00 

(d) Renewal Only (Electronic Only) (FCC 601 & 159) ................................................................................................................. 20.00 

Marine Ship: 

(a) New, Renewal/Mod (FCC 605 & 159) .................................................................................................................................... 15.00 

(b) New, Renewal/Mod (Electronic Filing) (FCC 605 & 159) ....................................................................................................... 15.00 

(c) Renewal Only (FCC 605 & 159) ............................................................................................................................................. 15.00 

(d) Renewal Only (Electronic Filing) (FCC 605 & 159) ............................................................................................................... 15.00 

Aviation Aircraft: 

(a) New, Renew/Mod (FCC 605 & 159) ....................................................................................................................................... 10.00 

(b) New, Renew/Mod (Electronic Filing) (FCC 605 & 159) ......................................................................................................... 10.00 

(c) Renewal Only (FCC 605 & 159) ............................................................................................................................................. 10.00 

(d) Renewal Only (Electronic Filing) (FCC 605 & 159) ............................................................................................................... 10.00 

4. CMRS Cellular/Mobile Services (per unit) (FCC 159) .................................................................................................................... 2 .21 

5. CMRS Messaging Services (per unit) (FCC 159) ........................................................................................................................... 3 .08 

6. Broadband Radio Service (formerly MMDS and MDS) .................................................................................................................. 800 

7. Local Multipoint Distribution Service ............................................................................................................................................... 800 

1 Note that ‘‘small fees’’ are collected in advance for the entire license term. Therefore, the annual fee amount shown in this table that is a 

small fee (categories 1 through 5) must be multiplied by the 10-year license term to arrive at the total amount of regulatory fees owed. Also, application fees may apply as detailed in § 1.1102. 2These are standard fees that are to be paid in accordance with § 1.1157(b). 

3These are standard fees that are to be paid in accordance with § 1.1157(b). 

■ 3. Section 1.1153 is revised to read as 

follows: 

§ 1.1153 Schedule of annual regulatory 

fees and filing locations for mass media 

services. 

Radio [AM and FM] 

(47 CFR part 73) Fee amount 

1. AM Class A: 

≤25,000 population ....................................................................................................................................................................... $895 

25,001–75,000 population ............................................................................................................................................................ 1,350 

75,001–150,000 population .......................................................................................................................................................... 2,375 

150,001–500,000 population ........................................................................................................................................................ 3,550 

500,001–1,200,000 population ..................................................................................................................................................... 5,325 

1,200,001–3,000,000 population .................................................................................................................................................. 7,975 

3,000,001–6,000,000 population .................................................................................................................................................. 11,950 

>6,000,000 population .................................................................................................................................................................. 17,950 

2. AM Class B: 

≤25,000 population ....................................................................................................................................................................... 640 

25,001–75,000 population ............................................................................................................................................................ 955 

75,001–150,000 population .......................................................................................................................................................... 1,700 

150,001–500,000 population ........................................................................................................................................................ 2,525 

500,001–1,200,000 population ..................................................................................................................................................... 3,800 

1,200,001–3,000,000 population .................................................................................................................................................. 5,700 

3,000,001–6,000,000 population .................................................................................................................................................. 8,550 

>6,000,000 population .................................................................................................................................................................. 12,825 

3. AM Class C: 

≤25,000 population ....................................................................................................................................................................... 555 

25,001–75,000 population ............................................................................................................................................................ 830 

75,001–150,000 population .......................................................................................................................................................... 1,475 

Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 44345 

Radio [AM and FM] 

(47 CFR part 73) Fee amount 

150,001–500,000 population ........................................................................................................................................................ 2,200 

500,001–1,200,000 population ..................................................................................................................................................... 3,300 

1,200,001–3,000,000 population .................................................................................................................................................. 4,950 

3,000,001–6,000,000 population .................................................................................................................................................. 7,400 

>6,000,000 population .................................................................................................................................................................. 11,100 

4. AM Class D: 

≤25,000 population ....................................................................................................................................................................... 610 

25,001–75,000 population ............................................................................................................................................................ 915 

75,001–150,000 population .......................................................................................................................................................... 1,600 

150,001–500,000 population ........................................................................................................................................................ 2,425 

500,001–1,200,000 population ..................................................................................................................................................... 3,625 

1,200,001–3,000,000 population .................................................................................................................................................. 5,425 

3,000,001–6,000,000 population .................................................................................................................................................. 8,150 

>6,000,000 population .................................................................................................................................................................. 12,225 

5. AM Construction Permit 555 

6. FM Classes A, B1 and C3: 

≤25,000 population ....................................................................................................................................................................... 980 

25,001–75,000 population ............................................................................................................................................................ 1,475 

75,001–150,000 population .......................................................................................................................................................... 2,600 

150,001–500,000 population ........................................................................................................................................................ 3,875 

500,001–1,200,000 population ..................................................................................................................................................... 5,825 

1,200,001–3,000,000 population .................................................................................................................................................. 8,750 

3,000,001–6,000,000 population .................................................................................................................................................. 13,100 

>6,000,000 population .................................................................................................................................................................. 19,650 

7. FM Classes B, C, C0, C1 and C2: 

≤25,000 population ....................................................................................................................................................................... 1,100 

25,001–75,000 population ............................................................................................................................................................ 1,650 

75,001–150,000 population .......................................................................................................................................................... 2,925 

150,001–500,000 population ........................................................................................................................................................ 4,400 

500,001–1,200,000 population ..................................................................................................................................................... 6,575 

1,200,001–3,000,000 population .................................................................................................................................................. 9,875 

3,000,001–6,000,000 population .................................................................................................................................................. 14,800 

>6,000,000 population .................................................................................................................................................................. 22,225 

8. FM Construction Permits ................................................................................................................................................................. 980 

TV (47 CFR part 73) 

Digital TV (UHF and VHF Commercial Stations): 

1. Markets 1 thru 10 ..................................................................................................................................................................... $59,750 

2. Markets 11 thru 25 ................................................................................................................................................................... 45,025 

3. Markets 26 thru 50 ................................................................................................................................................................... 30,050 

4. Markets 51 thru 100 ................................................................................................................................................................. 14,975 

5. Remaining Markets .................................................................................................................................................................. 4,925 

6. Construction Permits ................................................................................................................................................................ 4,925 

Satellite UHF/VHF Commercial: 

1. All Markets ....................................................................................................................................................................................... 1,725 

Low Power TV, Class A TV, TV/FM Translator, & TV/FM Booster (47 CFR part 74) ....................................................................... 430 

■ 4. Section 1.1154 is revised to read as 

follows: 

§ 1.1154 Schedule of annual regulatory 

charges for common carrier services. 

Radio facilities Fee amount 

1. Microwave (Domestic Public Fixed) (Electronic Filing) (FCC Form 601 & 159) ....................................................................... $25.00. 

Carriers 

1. Interstate Telephone Service Providers (per interstate and international end-user revenues (see FCC Form 499–A) ........... .00302. 

2. Toll Free Number Fee ................................................................................................................................................................ .12 per Toll Free 

Number. 

■ 5. Section 1.1155 is revised to read as 

follows: 

§ 1.1155 Schedule of regulatory fees for 

cable television services. 

Fee amount 

1. Cable Television Relay Service ................................................................................................................................................. $935. 

2. Cable TV System, Including IPTV (per subscriber) ................................................................................................................... .95. 

44346 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations 

Fee amount 

3. Direct Broadcast Satellite (DBS) ................................................................................................................................................ .38 per subscriber. 

■ 6. Section 1.1156 is revised to read as 

follows: 

§ 1.1156 Schedule of regulatory fees for 

international services. 

(a) Geostationary Orbit (GSO) and 

Non-Geostationary Orbit (NGSO) Space 

Stations. Regulatory fees are to be paid 

for GSO and NGSO Space Stations that 

are licensed and operational as of 

October 1, 2016. The following schedule 

applies for the listed services: 

Fee category Fee amount 

Space Stations (Geostationary Orbit) ............................................................................................................................................ $140,925 

Space Stations (Non-Geostationary Orbit) .................................................................................................................................... 135,350 

Earth Stations: Transmit/Receive & Transmit only (per authorization or registration) .................................................................. 360 

(b) International Terrestrial and 

Satellite. (1) Regulatory fees for 

International Bearer Circuits are to be 

paid by facilities-based common carriers 

that have active (used or leased) 

international bearer circuits as of 

December 31 of the prior year in any 

terrestrial or satellite transmission 

facility for the provision of service to an 

end user or resale carrier, which 

includes active circuits to themselves or 

to their affiliates. In addition, noncommon carrier satellite operators must 

pay a fee for each circuit sold or leased 

to any customer, including themselves 

or their affiliates, other than an 

international common carrier 

authorized by the Commission to 

provide U.S. international common 

carrier services. ‘‘Active circuits’’ for 

these purposes include backup and 

redundant circuits. In addition, whether 

circuits are used specifically for voice or 

data is not relevant in determining that 

they are active circuits. 

(2) The fee amount, per active 64 KB 

circuit or equivalent will be determined 

for each fiscal year. 

International Terrestrial and Satellite 

(capacity as of December 31, 2016) Fee amount 

Terrestrial Common Carrier ...........................................................................................................................................................

Satellite Common Carrier 

Satellite Non-Common Carrier 

$0.03 per 64 KB 

Circuit 

(c) Submarine cable. Regulatory fees 

for submarine cable systems will be 

paid annually, per cable landing license, 

for all submarine cable systems 

operating as of December 31 of the prior 

year. The fee amount will be determined 

by the Commission for each fiscal year. 

Submarine Cable Systems 

(capacity as of Dec. 31, 2016) Fee amount 

<2.5 Gbps ....................................................................................................................................................................................... $8,600 

2.5 Gbps or greater, but less than 5 Gbps .................................................................................................................................... 17,175 

5 Gbps or greater, but less than 10 Gbps ..................................................................................................................................... 34,350 

10 Gbps or greater, but less than 20 Gbps ................................................................................................................................... 68,725 

20 Gbps or greater ......................................................................................................................................................................... 137,425 

[FR Doc. 2017–19386 Filed 9–21–17; 8:45 am] 

BILLING CODE 6712–01–P