Assessment and Collection of Regulatory Fees for Fiscal Year 2019
| Citation | 84 FR 56734 |
| Record Number | 2019-22914 |
| Published date | 23 October 2019 |
| Section | Proposed rules |
| Court | Federal Communications Commission |
Federal Register, Volume 84 Issue 205 (Wednesday, October 23, 2019)
[Federal Register Volume 84, Number 205 (Wednesday, October 23, 2019)]
[Proposed Rules]
[Pages 56734-56743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22914]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket No. 19-105; FCC 19-83]
Assessment and Collection of Regulatory Fees for Fiscal Year 2019
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
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SUMMARY: In this document, the Federal Communications Commission
(Commission) adopted a notice of proposed rulemaking that seeks comment
on several proposals that will impact FY 2020 regulatory fees.
DATES: Submit comments on or before November 22, 2019; and reply
comments on or before December 23, 2019.
ADDRESSES: You may submit comments, identified by MD Docket No. 19-105,
by any of the following methods:
Federal Communications Commission's Website: http://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by email: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444.
[[Page 56735]]
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's
Further Notice of Proposed Rulemaking (FNPRM), FCC 19-83; MD Docket No.
19-105, adopted on August 15, 2019 and released on August 27, 2019. The
full text of this document is available for inspection and copying
during normal business hours in the FCC Reference Center, 445 12th
Street SW, Room CY-A257, Portals II, Washington, DC 20554. This
document is available in alternative formats (computer diskette, large
print, audio record, and braille). Persons with disabilities who need
documents in these formats may contact the FCC by email: [email protected]
or phone: 202-418-0530 or TTY: 202-418-0432.
I. Introduction
1. In this FNPRM, we seek additional comment on several issues to
continue reforming our assessment of regulatory fees.
II. Further Notice of Proposed Rulemaking
A. Assessing International Bureau Regulatees
2. The Commission's goal in assessing International Bureau
regulatory fees is to recover all of the costs associated with
International Bureau regulatory activities and to distribute these
costs fairly among fee payers. But not all beneficiaries of the
International Bureau's regulatory activities currently pay regulatory
fees, and some commenters argue that we should reexamine the
allocations of FTEs within the bureau. We take this opportunity to seek
comment on reforming our assessment of regulatory fees for
International Bureau regulatees.
3. First, we seek comment on whether we should assess regulatory
fees on all space stations granted approval by the Commission to
communicate with earth stations in the United States. In the past, the
Commission has assessed regulatory fees on space stations (both
geostationary and non-geostationary orbit) licensed by the Commission,
but not on foreign-licensed space stations that have been granted
market access by the Commission.\1\ The Commission's policy,
regulatory, international, user information, and enforcement activities
all benefit non-U.S. licensed space stations that access the U.S.
market. Rulemaking proceedings establishing processing procedures or
service rules for satellite services apply both to U.S. licensed space
stations and non-U.S. licensed space stations providing service in the
United States,\2\ and operators of non-U.S. licensed space stations
actively participate in FCC regulatory proceedings.\3\ Non-U.S.
licensed space stations are also monitored to ensure that their
operators satisfy all conditions placed on their grant of U.S. market
access, including space station implementation milestones and
operational requirements, and are subject to enforcement action if the
conditions are not met. Despite the regulatory benefits provided by the
Commission to non-U.S. licensed space stations serving the United
States they do not incur the regulatory fees paid by operators of U.S.-
licensed space stations.
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\1\ 47 CFR 1.1156.
\2\ See, e.g., Mitigation of Orbital Debris in the New Space
Age, IB Docket No. 18-313, Notice of Proposed Rulemaking and Order
on Reconsideration, 84 FR 4742 (Feb. 19, 2019), 33 FCC Rcd 11352
(2018); Amendment of Parts 2 and 25 of the Commission's Rules to
Facilitate the Use of Earth Stations in Motion Communicating with
Non-Geostationary Orbit Space Stations in Frequency Bands Allocated
to the Fixed-Satellite Service, IB Docket No. 18-315, Notice of
Proposed Rulemaking, 83 FR 67180 (Dec. 28, 2018), 33 FCC Rcd 11416
(2018); Amendment of the Commission's Policies and Rules for
Processing Applications in the Direct Broadcast Satellite Service,
IB Docket No. 06-160, Second Notice of Proposed Rulemaking, 84 FR
2126 (Feb. 6, 2019), 33 FCC Rcd 11303 (2018); Amendment of Parts 2
and 25 of the Commission's Rules to Facilitate the Use of Earth
Stations in Motion Communicating with Geostationary Orbit Space
Stations in Frequency Bands Allocated to the Fixed Satellite
Service, IB Docket No 17-95, Report and Order and Further Notice of
Proposed Rulemaking, 84 FR 53630 (Oct. 8, 2019) and 84 FR 5654 (Feb.
22, 2019), 32 FCC Rcd 9327 (2018); Further Streamlining Part 25
Rules Governing Satellite Services, IB Docket No. 18-314, Notice of
Proposed Rulemaking, 84 FR 638 (Jan. 31, 2019), 33 FCC Rcd 11502
(2018); Streamlining Licensing Procedures for Small Satellites, IB
Docket No. 18-86, Notice of Proposed Rulemaking, 83 FR 24064 (May
24, 2018), 33 FCC Rcd 4152 (2018); Update to Parts 2 and 25
Concerning Non-Geostationary, Fixed-Satellite Service Systems and
Related Matters, IB Docket No. 16-408, Report and Order and Further
Notice of Proposed Rulemaking, 82 FR 59972 (Dec. 18, 2017) and 82 FR
52869 (Nov. 15, 2017), 32 FCC Rcd 7809 (2017); Amendment of Parts 2
and 25 of the Commission's Rules to Facilitate the Use of Earth
Stations in Motion Communicating with Geostationary Orbit Space
Stations in Frequency Bands Allocated to the Fixed-Satellite
Service, IB Docket No. 17-95, Notice of Proposed Rulemaking, 82 FR
27652 (June 16, 2017), 32 FCC Rcd 4239 (2017).
\3\ Operators of non-U.S. licensed space stations have actively
participated in nearly all of the satellite rulemaking proceedings
over the course of the last several years. In addition, operators of
non-U.S. space stations participate in FCC proceedings through their
membership in the Satellite Industry Association, including roles as
executive members. See https://www.sia.org/join-sia/.
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4. We seek comment on whether we should or must assess regulatory
fees on non-U.S. licensed space stations serving the United States
under section 9, given that non-U.S. licensed space stations appear to
benefit from the Commission's regulatory activities in much the same
manner as U.S. licensed space stations.\4\ The Commission has
previously declined to assess regulatory fees on non-U.S. licensed
space stations. In 1999, the Commission observed that the Act at the
time only authorized the Commission to assess space stations
``licensees,'' i.e., those licensed under Title III--which does not
include non-U.S.-licensed space stations.\5\ And the Commission sought
comment on assessing such fees in 2013 and 2014 but ultimately, did not
do so.\6\ We observe that the change made to section 9 by the RAY
BAUM'S Act requires the Commission to consider increases and decreases
in the ``number of units'' subject to payment of regulatory fees, but
does not state ``licensees.'' \7\ In this respect, the ``unit'' used
for assessing satellite space station regulatory fees is ``per
operational station in geostationary orbit'' or ``per operational
system in non-geostationary orbit.'' \8\ This broader language appears
equally applicable to U.S. licensed and non-U.S. licensed space
stations. We seek comment on whether we may or must assess such fees.
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\4\ See EchoStar August 8 Ex Parte Letter, Attachment, at 1.
\5\ Assessment and Collection of Regulatory Fees for Fiscal Year
1999, Report and Order, 74 FR 400089 (Aug. 11, 2009), 14 FCC Rcd
9896, 9882, para. 39 (1999) (FY 1999 Report and Order).
\6\ Assessment and Collection of Regulatory Fees for Fiscal Year
2014, Notice of Proposed Rulemaking, Second Further Notice of
Proposed Rulemaking, and Order, 79 FR 37982 (July 3, 2014), 29 FCC
Rcd 6417, 6433-34, paras. 47-50 (2014) (FY 2014 NPRM); Assessment
and Collection of Regulatory Fees for Fiscal Year 2013, Notice of
Proposed Rulemaking and Further Notice of Proposed Rulemaking, 78 FR
34612 (June 10, 2013) and 79 FR 63883 (Oct. 27, 2014), 28 FCC Rcd
7790, 7809-810, paras. 47-49 (2013) (FY 2013 NPRM).
\7\ 47 U.S.C. 159(c)(1)(A).
\8\ See Appendix D: Assessment and Collection of Regulatory Fees
for Fiscal Year 2019, Notice of Proposed Rulemaking, 84 FR 26234
(June 5, 2019).
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5. We seek comment on whether assessing non-U.S. licensed space
stations would promote regulatory parity among space station operators.
Do any space station operators choose to seek licensing elsewhere as a
means of arbitraging our current regulatory fee assessments? Is it fair
or equitable to grant one class of space station operators a non-
statutory exemption from fees that another class of similarly situated
operators must pay? Commenters that advocate assessing regulatory fees
on non-U.S. licensed space stations providing service in the United
States should propose how the fees should be calculated and applied.
Are there any corner cases, such as where the non-U.S. licensed space
station operator accesses the U.S. market solely through one or more
U.S.-
[[Page 56736]]
licensed earth stations that identify a non-U.S. licensed space station
as a point of communication? If the regulatory fee per earth station
license is significantly less than the regulatory fee assessed per
space station, would such a discrepancy provide an incentive for space
station operators to see U.S. market access solely through earth
station licenses as a method of regulatory fee arbitrage? How should we
assess regulatory fees to avoid such arbitrage? Commenters should also
discuss any other policy implications that may arise from taking such
action, such as the likelihood that other countries will choose to
assess fees on U.S.-licensed space stations, and whether this policy
implication is still relevant in light of the number of U.S.-licensed
versus non-U.S. licensed space stations.\9\
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\9\ In 2014, the Commission observed that the majority of the
space station applications and notifications during the preceding
three-year period pertained to non-U.S.-licensed space stations. FY
2014 NPRM, 29 FCC Rcd at 6434, para. 50. In the period of 2014
through 2018, 48 approvals were given for geostationary space
stations and 14 were given for non-geostationary systems, according
to the International Bureau's electronic filing system, IBFS. Of
these, 23 of the 48 approvals were for non-U.S. licensed
geostationary space stations, and 7 of the 14 were for non-U.S.
licensed non-geostationary space station systems.
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6. We note that the Commission previously reallocated four
International Bureau FTEs as indirect for regulatory fee purposes to
address the work that International Bureau FTEs conduct on market
access requests by non-U.S. licensed space stations.\10\ The effect of
that decision was to require domestic broadcasters, wireless providers,
ITSPs, and others to pay for the regulatory work done on behalf of
foreign-licensed satellite operators. We seek comment on whether any
changes to our direct International Bureau FTE allocations would be
necessary if regulatory fees are adopted for non-U.S. licensed space
stations.
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\10\ FY 2015 Report and Order, 80 FR 55775 (Sept. 17, 2015), 30
FCC Rcd at 10278, para. 24.
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7. Second, several commenters have argued that we should adjust the
apportionment among fee categories within the International Bureau. For
example, NASCA claims that the Commission has continued to over-recover
regulatory fees from submarine cable operators because the combined
submarine cable and IBC revenue requirement is relatively high compared
to the satellite and earth station categories.\11\ NASCA argues that
the other fee categories account for a much higher proportion of the
FTEs' activities in the International Bureau.\12\ And EchoStar asserts
that the Commission should examine the allocation of FTEs among
geostationary orbit (GSO) and non-geostationary orbit (NGSO) space and
earth station operators.\13\ We seek comment on whether the Commission
should reallocate FTEs within the International Bureau. If so, should
the Commission reassess the number of FTEs working on the issues of
various regulatees or reallocate fees based on relative capacity of
various services? Or should the Commission use some other metric to
engage in the reallocation? We also seek comment on whether the
Commission should change its current allocation of regulatory fees
between submarine cable and satellite and terrestrial IBCs based on a
plan developed by the IBC industry, with 87.6% of IBC fees paid by
submarine cable and 12.4% by satellite/terrestrial facilities.
Commenters should discuss whether certain apportionments within the
International Bureau could be more appropriately adjusted to better
reflect the amount of oversight and regulation for these industries.
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\11\ NASCA Comments at 12; see also SEA-US May 1 Ex Parte Letter
at 2 (contending that the submarine cable operators pay a
disproportionate share of the regulatory fees allocated to
International Bureau regulatees compared to terrestrial and
satellite IBCs).
\12\ NASCA Reply Comments at 4.
\13\ EchoStar August 8 Ex Parte Letter, Attachment, at 1.
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B. Adjusting TV and Radio Broadcaster Regulatory Fees
8. We seek comment on two suggestions by commenters to further
adjust our assessment of broadcaster regulatory fees. First, we seek
comment on adjusting the regulatory fees paid by VHF broadcasters. The
VHF television band occupies frequencies between 54 and 216 MHz and in
general, VHF channels are numbered 2 to 13. Commenters on the FY 2019
NPRM argue that the predicted contour distance does not adequately
account for all of the possible effects on the VHF station signal, such
as terrain blockage, which may limit the signal, thereby reducing the
population number that is actually reached.\14\ Commenters contend that
the population count is therefore overstated for VHF stations and
should be adjusted downward accordingly.\15\ Should we adjust
population counts in our contour modeling to address such concerns, and
if so, how?
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\14\ TZS Comments at 2; NAB Reply Comments at 8-9.
\15\ TZS Comments at 2; PMCM Comments at 2-3.
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9. Second, we seek comment on whether we should adopt a lower
regulatory fee for full-service AM and FM broadcast radio station
incubator licensees. The Commission's broadcast incubator program is
intended to create ownership opportunities for new entrants that are
small businesses and promote competition and diversity in the radio
broadcast industry.\16\ MMTC asserts that regulatory fees may make it
more difficult for the incubator stations to thrive, and the Commission
should exempt them from regulatory fees for the term of the
license.\17\ Commenters should discuss an appropriate reduction from
the regulatory fee for broadcasters, such as 50%.
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\16\ MMTC Comments at 1.
\17\ MMTC Comments at 2.
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III. Procedural Matters
A. Ex Parte Information
10. This proceeding shall be treated as a ``permit-but-disclose''
proceeding in accordance with the Commission's ex parte rules.\18\
Persons making ex parte presentations must file a copy of any written
presentation or a memorandum summarizing any oral presentation within
two business days after the presentation (unless a different deadline
applicable to the Sunshine period applies). Persons making oral ex
parte presentations are reminded that memoranda summarizing the
presentation must (1) list all persons attending or otherwise
participating in the meeting at which the ex parte presentation was
made, and (2) summarize all data presented and arguments made during
the presentation. If the presentation consisted in whole or in part of
the presentation of data or arguments already reflected in the
presenter's written comments, memoranda, or other filings in the
proceeding, the presenter may provide citations to such data or
arguments in his or her prior comments, memoranda, or other filings
(specifying the relevant page and/or paragraph numbers where such data
or arguments can be found) in lieu of summarizing them in the
memorandum. Documents shown or given to Commission staff during ex
parte meetings are deemed to be written ex parte presentations and must
be filed consistent with Sec. 1.1206(b) of the Commission's rules. In
proceedings governed by Sec. 1.49(f) of the Commission's rules or for
which the Commission has made available a method of electronic filing,
written ex parte presentations and memoranda summarizing oral ex parte
presentations, and all attachments thereto, must be filed through the
electronic comment filing system available for that proceeding, and
must be filed in their native format (e.g., .doc,
[[Page 56737]]
.xml, .ppt, searchable .pdf). Participants in this proceeding should
familiarize themselves with the Commission's ex parte rules.
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\18\ 47 CFR 1.1200 through 1.1216.
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B. Filing Instructions
11. Pursuant to Sec. Sec. 1.415 and 1.419 of the Commission's
rules, 47 CFR 1.415, 1.419, interested parties may file comments and
reply comments on or before the dates indicated on the first page of
this document. Comments may be filed using the Commission's Electronic
Comment Filing System (ECFS). See Electronic Filing of Documents in
Rulemaking Proceedings, 63 FR 24121 (1998).
Electronic Filers: Comments may be filed electronically
using the internet by accessing the ECFS: http://apps.fcc.gov/ecfs/.
Paper Filers: Parties who choose to file by paper must
file an original and one copy of each filing. If more than one docket
or rulemaking number appears in the caption of this proceeding, filers
must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail. All filings must be addressed to the Commission's Secretary,
Office of the Secretary, Federal Communications Commission.
All hand-delivered or messenger-delivered paper filings
for the Commission's Secretary must be delivered to FCC Headquarters at
445 12th St. SW, Room TW-A325, Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together
with rubber bands or fasteners. Any envelopes and boxes must be
disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to FCC, 9050 Junction
Drive, Annapolis Junction, MD 20701.
U.S. Postal Service first-class, Express, and Priority
mail must be addressed to 445 12th Street SW, Washington, DC 20554.
12. People with Disabilities: To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to [email protected] or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
C. Initial Regulatory Flexibility Analysis
13. An initial regulatory flexibility analysis (IRFA) is contained
in this summary. Comments to the IRFA must be identified as responses
to the IRFA and filed by the deadlines for comments on the Notice of
Proposed Rulemaking (84 FR 26234 (June 5, 2019)). The Commission will
send a copy of the Notice of Proposed Rulemaking, including the IRFA,
to the Chief Counsel for Advocacy of the Small Business Administration.
D. Initial Paperwork Reduction Act of 1995 Analysis
14. 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).
IV. Initial Regulatory Flexibility Analysis
15. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA),\19\ the Commission prepared this Initial Regulatory
Flexibility Analysis (IRFA) of the possible significant economic impact
on small entities by the policies and rules proposed in the FNPRM.
Written comments are requested on this IRFA. Comments must be
identified as responses to the IRFA and must be filed by the deadline
for comments on this Further Notice. The Commission will send a copy of
the FNPRM, including the IRFA, to the Chief Counsel for Advocacy of the
Small Business Administration (SBA).\20\ In addition, the FNPRM and
IRFA (or summaries thereof) will be published in the Federal
Register.\21\
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\19\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by
the Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
\20\ 5 U.S.C. 603(a).
\21\ Id.
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A. Need for, and Objectives of, the Further Notice
16. The FNPRM seeks comment on (i) adding a new fee category for
non-U.S. licensed satellite operators who have been granted access to
the U.S. market; (ii) adjusting the apportionment among fee categories
within the International Bureau; (iii) adjusting TV broadcaster
regulatory fees for VHF licenses; and (iv) adopting a lower regulatory
fee for broadcast incubator licensees. These issues may be further
addressed in the annual regulatory fee Notice of Proposed Rulemaking
for next year. The Commission is required by Congress to adopt
regulatory fees each year ``to recover the costs of carrying out the
activities described in section 6(a) only to the extent, and in the
total amounts, provided for in Appropriation Acts.'' \22\
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\22\ 47 U.S.C. 159(a).
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B. Legal Basis
17. This action, including publication of proposed rules, is
authorized under sections (4)(i) and (j), 9, 9A, and 303(r) of the
Communications Act of 1934, as amended.\23\
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\23\ 47 U.S.C. 154(i) and (j), 159, 159A, and 303(r).
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C. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply
18. 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.\24\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \25\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\26\ 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.\27\
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\24\ 5 U.S.C. 603(b)(3).
\25\ 5 U.S.C. 601(6).
\26\ 5 U.S.C. 601(3) (adopting 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.''
\27\ 15 U.S.C. 632.
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19. Small Entities. Our actions, over time, may affect small
entities that are not easily categorized at present. We therefore
describe here, at the outset, three comprehensive small entity size
standards that could be directly affected by the proposals under
consideration.\28\ As of 2009, small businesses represented 99.9
percent of the 27.5 million businesses in the United States, according
to the SBA.\29\ In addition, a ``small organization is generally any
not-for-profit enterprise which is independently owned and operated and
[[Page 56738]]
not dominant in its field.\30\ In addition, the term ``small
governmental jurisdiction'' is defined generally as ``governments of
cities, towns, townships, villages, school districts, or special
districts, with a population of less than fifty thousand.'' \31\ U.S.
Census Bureau data for 2011 indicate that there were 90,056 local
governmental jurisdictions in the United States.\32\ We estimate that,
of this total, as many as 89,327 entities may qualify as ``small
governmental jurisdictions.'' \33\ Thus, we estimate that most local
government jurisdictions are small.
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\28\ See 5 U.S.C. 601(3)-(6).
\29\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
\30\ 5 U.S.C. 601(4).
\31\ 5 U.S.C. 601(5).
\32\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
\33\ The 2011 U.S. Census Data for small governmental
organizations are not presented based on the size of the population
in each organization. As stated above, there were 90,056 local
governmental organizations in 2011. As a basis for estimating how
many of these 90,056 local governmental organizations were small, we
note that there were a total of 729 cities and towns (incorporated
places and civil divisions) with populations over 50,000. See http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. If we
subtract the 729 cities and towns that exceed the 50,000 population
threshold, we conclude that approximately 789,237 are small.
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20. 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 and IPTV) 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.'' \34\ 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.\35\
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.\36\ Thus, under this size standard, the majority of firms in
this industry can be considered small.
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\34\ See http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\35\ See 13 CFR 120.201, NAICS code 517110.
\36\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5 &prodType= table .
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21. 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 for Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer
employees.\37\ According to census data from 2012, there were 3,117
establishments that operated that year. Of this total, 3,083 operated
with fewer than 1,000 employees.\38\ The Commission estimates that most
providers of local exchange service are small entities that may be
affected by the rules proposed in the Further Notice.
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\37\ 13 CFR 121.201, NAICS code 517110.
\38\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5 &prodType= table.
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22. 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. Under that size standard, such a
business is small if it has 1,500 or fewer employees.\39\ According to
census data from 2012, 3,117 firms operated in that year. Of this
total, 3,083 operated with fewer than 1,000 employees.\40\ According to
Commission data, 1,307 carriers reported that they were incumbent local
exchange service providers.\41\ Of this total of 1,307 incumbent local
exchange service providers, an estimated 1,006 operated with 1,500 or
fewer employees.\42\ Consequently, the Commission estimates that most
providers of incumbent local exchange service are small businesses that
may be affected by the rules proposed in this Further Notice.
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\39\ 13 CFR 121.201, NAICS code 517110.
\40\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5 &prodType= table.
\41\ See Trends in Telephone Service, Federal Communications
Commission, Wireline Competition Bureau, Industry Analysis and
Technology Division at Table 5.3 (Sept. 2010) (Trends in Telephone
Service).
\42\ See id.
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23. 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. Under that size standard, such a business
is small if it has 1,500 or fewer employees.\43\ 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.\44\ Based on
this data, the Commission concludes that the majority of Competitive
LECs, CAPs, Shared-Tenant Service Providers, and Other Local Service
Providers are small entities. According to the Commission data, 1,442
carriers reported that they were engaged in the provision of either
competitive local exchange services or competitive access provider
services.\45\ Of these 1,442 carriers, an estimated 1,256 have 1,500 or
fewer employees. 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.\46\ Also, 72 carriers have reported that they are
Other Local Service Providers.\47\ Of this total, 70 have 1,500 or
fewer employees.\48\ Consequently, the Commission estimates that most
providers of competitive local exchange service, competitive access
providers, Shared-Tenant Service Providers, and Other Local Service
Providers are small entities that may be affected by rules proposed in
this Further Notice.
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\43\ 13 CFR 121.201, NAICS code 517110.
\44\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\45\ See Trends in Telephone Service, at Table 5.3.
\46\ Id.
\47\ Id.
\48\ Id.
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24. 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 IRFA. The applicable size standard under SBA rules
is that such a business is small if it has 1,500 or fewer
employees.\49\ 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.\50\ According to Commission data, 359 companies
reported that their primary
[[Page 56739]]
telecommunications service activity was the provision of interexchange
services.\51\ Of this total, an estimated 317 have 1,500 or fewer
employees. Consequently, the Commission estimates that the majority of
interexchange service providers are small entities that may be affected
by rules proposed in this Further Notice.
---------------------------------------------------------------------------
\49\ 13 CFR 121.201, NAICS code 517110.
\50\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\51\ See Trends in Telephone Service, at Table 5.3.
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25. Prepaid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business size standard specifically for
prepaid calling card providers. The appropriate NAICS code category for
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.\52\ Under the applicable SBA
size standard, such a business is small if it has 1,500 or fewer
employees.\53\ 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.\54\ 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.\55\ All 193 carriers have 1,500
or fewer employees.\56\ Consequently, the Commission estimates that the
majority of prepaid calling card providers are small entities that may
be affected by rules proposed in this Further Notice.
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\52\ http://www.census.gov/cgi-bin/ssd/naics/naicsrch.
\53\ 13 CFR 121.201, NAICS code 517911.
\54\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\55\ See Trends in Telephone Service, at Table 5.3.
\56\ Id.
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26. 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.\57\ Census
data for 2012 show that 1,341 firms provided resale services during
that year.\58\ Of that number, 1,341 operated with fewer than 1,000
employees.\59\ Under this category and the associated small business
size standard, the majority of these local resellers can be considered
small entities. According to Commission data, 213 carriers have
reported that they are engaged in the provision of local resale
services.\60\ Of this total, an estimated 211 have 1,500 or fewer
employees.\61\ Consequently, the Commission estimates that the majority
of local resellers are small entities that may be affected by rules
proposed in this Further Notice.
---------------------------------------------------------------------------
\57\ 13 CFR 121.201, NAICS code 517911.
\58\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\59\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\60\ See Trends in Telephone Service, at Table 5.3.
\61\ Id.
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27. 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.\62\ Under that size standard, such a business is small if it
has 1,500 or fewer employees.\63\ Census data for 2012 show that 1,341
firms provided resale services during that year.\64\ Of that number,
1,341 operated with fewer than 1,000 employees.\65\ 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.\66\ Of this total, an estimated
857 have 1,500 or fewer employees.\67\ Consequently, the Commission
estimates that the majority of toll resellers are small entities that
may be affected by the rules proposed in the Further Notice.
---------------------------------------------------------------------------
\62\ 13 CFR 121.201, NAICS code 517911.
\63\ Id.
\64\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\65\ Id.
\66\ Trends in Telephone Service, at Table. 5.3.
\67\ Id.
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28. Other Toll Carriers. Neither the Commission nor the SBA has
developed a size standard 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 IRFA. Under that size standard, such a business is small if it has
1,500 or fewer employees.\68\ Census data for 2012 shows that there
were 3,117 firms that operated that year.\69\ Of this total, 3,083
operated with fewer than 1,000 employees.\70\ Thus, under this category
and the associated small business size standard, the majority of Other
Toll Carriers can be considered small. According to Commission data,
284 companies reported that their primary telecommunications service
activity was the provision of other toll carriage.\71\ Of these, an
estimated 279 have 1,500 or fewer employees.\72\ Consequently, the
Commission estimates that most Other Toll Carriers are small entities
that may be affected by the rules proposed in the Further Notice.
---------------------------------------------------------------------------
\68\ 13 CFR 121.201, NAICS code 517110.
\69\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\70\ Id.
\71\ Trends in Telephone Service, at Table 5.3.
\72\ Id.
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29. 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.\73\
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.\74\ Of this total, 955 firms had fewer than 1,000
employees.\75\ 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 Commission data, 413
[[Page 56740]]
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.\76\ Of this total,
an estimated 261 have 1,500 or fewer employees.\77\ Thus, using
available data, we estimate that the majority of wireless firms can be
considered small and may be affected by rules proposed in this Further
Notice.
---------------------------------------------------------------------------
\73\ NAICS code 517210. See http://www.census.gov/cgi-bin/ssd/
naics/naiscsrch.
\74\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\75\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\76\ Trends in Telephone Service, at Table 5.3.
\77\ Id.
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30. 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.'' \78\ 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.\79\ 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 a majority
of firms that operate television stations are small. The Commission has
estimated the number of licensed commercial television stations to be
1,387.\80\ 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.\81\ We therefore estimate that the majority of commercial
television broadcasters are small entities.
---------------------------------------------------------------------------
\78\ U.S. Census Bureau, 2012 NAICS code Economic Definitions,
http://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\79\ 13 CFR 121.201, NAICS code 515120.
\80\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
\81\ We recognize that BIA's estimate differs slightly from the
FCC total given supra.
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31. In assessing whether a business concern qualifies as small
under the above definition, business (control) affiliations \82\ 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.
---------------------------------------------------------------------------
\82\ ``[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).
---------------------------------------------------------------------------
32. In addition, the Commission has estimated the number of
licensed noncommercial educational (NCE) television stations to be
396.\83\ These stations are non-profit, and therefore considered to be
small entities.\84\ There are also 2,528 low power television stations,
including Class A stations (LPTV).\85\ 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.
---------------------------------------------------------------------------
\83\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
\84\ See generally 5 U.S.C. 601(4), (6). Noncommercial
television stations are not required to pay regulatory fees. 47
U.S.C. 159(e)(1)(C).
\85\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
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33. Radio Broadcasting. This Economic Census category ``comprises
establishments primarily engaged in broadcasting programs by radio to
the public. Programming may originate in their own studio, from an
affiliated network, or from external sources.'' \86\ 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.\87\ U.S.
Census data for 2012 show that 2,849 radio station firms operated
during that year.\88\ Of that number, 2,806 operated with annual
receipts of less than $25 million per year.\89\ 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, the majority of such entities are small entities.
---------------------------------------------------------------------------
\86\ http://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\87\ 13 CFR 121.201, NAICS code 515112.
\88\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\89\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------
34. In assessing whether a business concern qualifies as small
under the above size standard, business affiliations must be
included.\90\ In addition, to be determined to be a ``small business,''
the entity may not be dominant in its field of operation.\91\ It is
difficult at times to assess these criteria in the context of media
entities, and our estimate of small businesses may therefore be over-
inclusive.
---------------------------------------------------------------------------
\90\ ``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).
\91\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------
35. 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.\92\ 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.\93\ Of this total, 319 operated with
annual receipts of less than $25 million.\94\ Thus under this size
standard, the majority of firms offering cable and other program
distribution services can be considered small and may be affected by
rules proposed in this Further Notice.
---------------------------------------------------------------------------
\92\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\93\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\94\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=Table">http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=Table.
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36. 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.\95\
[[Page 56741]]
Industry data indicate that there are currently 4,600 active cable
systems in the United States.\96\ Of this total, all but ten cable
operators nationwide are small under the 400,000-subscriber size
standard.\97\ In addition, under the Commission's rate regulation
rules, a ``small system'' is a cable system serving 15,000 or fewer
subscribers.\98\ Current Commission records show 4,600 cable systems
nationwide.\99\ Of this total, 3,900 cable systems have less than
15,000 subscribers, and 700 systems have 15,000 or more subscribers,
based on the same records.\100\ Thus, under this standard as well, the
Commission estimates that most cable systems are small entities.
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\95\ 47 CFR 76.901(e).
\96\ August 15, 2015 Report from the Media Bureau based on data
contained in the Commission's Cable Operations and Licensing System
(COALS). See www/fcc.gov/coals.
\97\ See SNL KAGAN at www.snl.com/interactiveX/topcableMSOs
aspx?period2015Q1&sortcol=subscribersbasic&sortorder=desc.
\98\ 47 CFR 76.901(c).
\99\ See footnote 2, supra.
\100\ August 5, 2015 report from the Media Bureau based on its
research in COALS. See www.fcc.gov/coals.
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37. 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.'' \101\ There are approximately 52,403,705 cable video
subscribers in the United States today.\102\ 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.\103\
Based on available data, we find that all but nine incumbent cable
operators are small entities under this size standard.\104\ The
Commission neither requests nor collects information on whether cable
system operators are affiliated with entities whose gross annual
revenues exceed $250 million.\105\ Although it seems certain that some
of these cable system operators are affiliated with entities whose
gross annual revenues exceed $250,000,000, 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.
---------------------------------------------------------------------------
\101\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
\102\ See SNL KAGAN at www.snl.com/interactivex/MultichannelIndustryBenchmarks.aspx.
\103\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
\104\ See SNL KAGAN at www.snl.com/Interactivex/TopCable
MSOs.aspx.
\105\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's
finding that the operator does not qualify as a small cable operator
pursuant to 47 CFR 76.901(f) of the Commission's rules. See 47 CFR
76.901(f).
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38. Direct Broadcast Satellite (DBS) Service. DBS Service is a
nationally distributed subscription service that delivers video and
audio programming via satellite to a small parabolic dish antenna at
the subscriber's location. DBS is now included in SBA's economic census
category ``Wired Telecommunications Carriers.'' The Wired
Telecommunications Carriers industry comprises establishments primarily
engaged in operating and/or providing access to transmission facilities
and infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired telecommunications
networks. Transmission facilities may be based on a single technology
or combination of technologies. Establishments in this industry use the
wired telecommunications network facilities that they operate to
provide a variety of services, such as wired telephony services,
including VOIP services, wired (cable) audio and video programming
distribution; and wired broadband internet services. By exception,
establishments providing satellite television distribution services
using facilities and infrastructure that they operate are included in
this industry.\106\ The SBA determines that a wireline business is
small if it has fewer than 1500 employees.\107\ 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.\108\ Based on that data, we conclude that the majority of
wireline firms are small under the applicable standard. However,
currently only two entities provide DBS service, which requires a great
deal of capital for operation: AT&T and DISH Network.\109\ AT&T and
DISH Network each report annual revenues that are in excess of the
threshold for a small business. Accordingly, we must conclude that DBS
service is provided only by large firms.
---------------------------------------------------------------------------
\106\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\107\ NAICs code 517110; 13 CFR 121.201.
\108\ http://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
\109\ See 15th Annual Video Competition Report, 28 FCC Rcd at
1057, Section 27.
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39. 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 client-supplied telecommunications
connections are also included in this industry.\110\ 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.\111\ 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.\112\ Thus, a majority of ``All Other
Telecommunications'' firms potentially affected by the proposals in the
Further Notice can be considered small.
---------------------------------------------------------------------------
\110\ http://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
\111\ 13 CFR 121.201; NAICs code 517919.
\112\ http://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
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40. RespOrgs. Responsible Organizations, or RespOrgs, 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.\113\ 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.
---------------------------------------------------------------------------
\113\ See 47 CFR 52.101(b).
---------------------------------------------------------------------------
41. 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,\114\ and Wireless Telecommunications Carriers (except
satellite).\115\
---------------------------------------------------------------------------
\114\ 13 CFR 121.201, NAICS code 517110.
\115\ Id.
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[[Page 56742]]
42. 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.\116\ 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.\117\ 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.\118\ Based
on that data, we conclude that the majority of Carrier RespOrgs that
operated with wireline-based technology are small.
---------------------------------------------------------------------------
\116\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\117\ 13 CFR 120,201, NAICS code 517110.
\118\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
43. 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.\119\
The appropriate size standard under SBA rules is that such a business
is small if it has 1,500 or fewer employees.\120\ 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.\121\
Based on that data, we conclude that the majority of Carrier RespOrgs
that operated with wireless-based technology are small.
---------------------------------------------------------------------------
\119\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\120\ 13 CFR 120.201, NAICS code 517120.
\121\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
44. Non-Carrier RespOrgs. Neither the Commission, the U.S. Census,
nor the SBA have developed a definition of Non-Carrier RespOrgs.
Accordingly, the Commission believes that the closest NAICS code-based
definitional categories for Non-Carrier RespOrgs are ``Other Services
Related to Advertising'' \122\ and ``Other Management Consulting
Services.'' \123\
---------------------------------------------------------------------------
\122\ 13 CFR 120.201, NAICS code 541890.
\123\ 13 CFR 120.201, NAICS code 541618.
---------------------------------------------------------------------------
45. 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).\124\ The SBA has established a size standard for this
industry as annual receipts of $15 million dollars or less.\125\ Census
data for 2012 show that 5,804 firms operated in this industry for the
entire year. Of that number, 5,612 operated with annual receipts of
less than $10 million.\126\ Based on that data we conclude that the
majority of Non-Carrier RespOrgs who provide toll-free number (TFN)-
related advertising services are small.
---------------------------------------------------------------------------
\124\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\125\ 13 CFR 120.201, NAICS code 541890.
\126\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
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46. The U.S. Census defines Other Management Consulting Services as
establishments primarily engaged in providing management consulting
services (except administrative and general management consulting;
human resources consulting; marketing consulting; or process, physical
distribution, and logistics consulting). Establishments providing
telecommunications or utilities management consulting services are
included in this industry.\127\ The SBA has established a size standard
for this industry of $15 million dollars or less.\128\ 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.\129\ Based on this data, we conclude that a majority
of non-carrier RespOrgs who provide TFN-related management consulting
services are small.\130\
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\127\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\128\ 13 CFR 120.201, NAICS code 514618.
\129\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
\130\ The 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.
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47. 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.
D. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
48. This Further Notice does not propose any changes to the
Commission's current information collection, reporting, recordkeeping,
or compliance requirements.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
49. 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.\131\
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\131\ 5 U.S.C. 603(c)(1)-(c)(4).
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50. This FNPRM seeks comment on issues that the Commission may
address in the regulatory fee collection for Fiscal Year 2020.
Specifically, the FNPRM seeks comment on (i) adding a new fee category
for non-U.S. licensed satellite operators who have been granted access
to the U.S. market; (ii) adjusting the apportionment among fee
categories within the International Bureau; (iii) adjusting TV
broadcaster regulatory fees for VHF licenses; and (iv) adopting a lower
regulatory fee for broadcast incubator licensees. Some of these
[[Page 56743]]
issues may affect small entities. For example, revising intra-bureau
allocations in the International Bureau could result in changes of
regulatory fees for small entities, if this is adopted. Adjusting
regulatory fees for TV broadcasters that hold VHF broadcast licenses
could affect small entities, and ultimately provide them a benefit in
the form of lower regulatory fees, if the Commission adjusts VHF fees
in the future. Incubator licensees will likely be small entities and
adopting a lower regulatory fee for them would benefit small entities.
These issues in the FNPRM may be addressed in the FY 2020 annual
regulatory fee notice of proposed rulemaking.
F. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
51. None.
V. Ordering Clauses
52. Accordingly, it is ordered that, pursuant to section 9(a), (b),
(e), (f), and (g) of the Communications Act of 1934, as amended, 47
U.S.C. 159(a), (b), (e), (f), and (g), this Further Notice of Proposed
Rulemaking is hereby adopted.
Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2019-22914 Filed 10-22-19; 8:45 am]
BILLING CODE 6712-01-P
