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`*Times New RomanTTXXx6X@QX@<6X9`(CourierXx6X@`RX@4<6X9`(CourierXx6X@SX@<6X9`(CourierXx6X@`TX@4<6X9`(CourierXx6X@UX@<6X9`(CourierXx6X@`VX@4<6X9`(CourierXx6X@WX@<6X9`(CourierXx6X@`XX@4<6X9`(CourierXx6X@YX@<6X9`(CourierXx6X@`ZX@4<6X9`(CourierXx6X@[X@<6X9`(CourierXx6X@`\X@4<6X9`(CourierXx6X@]X@<6X9`(CourierXx6X@`^X@4<6X9`(CourierXx6X@_X@<6X9`(CourierXx6X@``X@4<6X9`(CourierXx6X@aX@<6X9`(CourierXx6X@`bX@4<6X9`(CourierXx6X@cX@<6X9`(CourierXx6X@`dX@4<6X9`(CourierXx6X@eX@<6X9`(CourierXx6X@`fX@4<6X9`(CourierXx6X@gX@<6X9`(CourierXx6X@`hX@4<6X9`(Courier2%-3|^  #XN\  PXP#K'Before the`(#A#A\  PP#FCC 98#XN\  PXP# 115 f  FEDERAL COMMUNICATIONS COMMISSION !Washington, D.C. 20554 ă X` hp x (#%'0*,.8135@8:Paragraph Numberă I.Introduction`"(#J1 II.Background`"(#J5 III.Discussion`"(#J A. CostBased Fee Methodology`"(#J9 B. Relationship of Cost Service to Revenue Requirement``"(#I15 C. The 25% Ceiling on Fees ``"(#I21  D. Application of CostBased Methodology to Determine Fee Amounts`"(#J i. Adjustment of Payment Units``"(#I25 ii. Calculation of Revenue Requirements``"(#I26 iii. Calculation of Regulatory Costs``"(#I27 iv. Application of 25% Revenue Ceiling``"(#I28 v. Recalculation of Fees``"(#I29vi. Proposed Changes to Fee Schedule``"(#I30 a. Commercial AM & FM Radio``"(#I31 b. CMRS``"(#I41 c. Space Stations and Bearer Circuits`(#(#K  i. Geostationary Satellites``"(#I49 ii. Nongeostationary Satellites``"(#I54 iii. Bearer Circuits``"(#I57 d. Interstate Telephone Service Providers``"(#I64 E. Schedule of Regulatory Fees``"(#I68 F. Effect of Revenue Redistributions on Major Constituencies``"(#I69 G. Procedures for Payment of Regulatory Fees`"(#I i. Installment Payments for Large Fees ``"(#I70 ii. Annual Payments of Standard Fees``"(#I72  iii. Advance Payment of Small Fees``"(#I73 iv. Standard Fee Calculations and Payment Dates`."(#H 74 v. Minimum Fee Payment Liability``"(#I76  IV.Ordering Clause`."(#H 77 V.Authority and Further Information`."(#H 78 Attachment A Final Regulatory Flexibility Analysis Attachment B Sources of Payment Unit Estimates Attachment C Calculation of Revenue Requirements Attachment D Calculation of Regulatory Costs Attachment E Calculation of FY 1998 Regulatory Fees Attachment F Schedule of Regulatory Fees Attachment G Comparison between FY 1997 and FY 1998 Proposed & Final Regulatory FeesAttachment H Detailed Guidance on Who Must Pay Regulatory Fees Attachment I Description of FCC Activities Attachment J Factors, measurements and calculations that go into determining station signal contours and associated population coverages Attachment K Parties Filing Comments and Reply Comments Attachment L FY 1998 AM/FM Regulatory Fees I. Introduction 1. By this Report and Order, the Commission concludes its rulemaking proceeding to revise its Schedule of Regulatory Fees in order to recover the amount of regulatory fees that Congress has required it to collect for Fiscal Year (FY) 1998. See 47 U.S.C.  159 (a). 2. Congress has required us to collect $162,523,000 in regulatory fees in order to recover the costs of our enforcement, policy and rulemaking, international and user information activities for FY 1998. See Public Law 105119 and 47 U.S.C.  159(a)(2). This amount is $10,000,000 or nearly 7% more than the amount that Congress designated for recovery through regulatory fees for FY 1997. See Assessment and Collection of Regulatory Fees for Fiscal Year 1997, FCC 97215, released June 26, 1997, 62 FR 37408 (July 11, 1997). Thus, we are revising our fees in order to collect the increased amount as specified by Congress. Additionally, we are amending the Schedule in order to simplify and streamline the Fee Schedule, including clarification of feeable categories in the Commercial Mobile Radio Services (CMRS), renaming the LEO category as Space Stations Nongeostationary, and clarifying when those stations must begin paying regulatory fees. We have also revised our methodologies for assessing AM and FM radio fees. See 47 U.S.C.  159(b)(3). 3. In revising the fees, we have adjusted the payment units and revenue requirement for each service subject to a fee, consistent with sections 159(b)(2) and (3). In addition, we have made changes to the fees pursuant to public interest considerations such as the 25% cap on increases in the fees which is explained in more detail below. We are amending sections 1.1152 through 1.1156 to reflect the fee revisions. See 47 CFR 1.1152 through 1.1156. See also Rule Changes and Attachment F for our revised fee schedule for FY 1998. 4. Finally, we have included, as Attachment H, Guidance containing detailed descriptions of each fee category, information on the individual or entity responsible for paying a particular fee and other critical information designed to assist potential fee payers in determining the extent of their fee liability, if any, for FY 1998. In the following paragraphs, we describe in greater detail our methodology for establishing our FY 1998 regulatory fees. II. Background 5. Section 9(a) of the Communications Act of 1934, as amended, authorizes the Commission to assess and collect annual regulatory fees to recover the costs, as specified each year by Congress, that it incurs in carrying out enforcement, policy and rulemaking, international, and user information activities. See  47 U.S.C.  159(a). See Attachment I for a description of these activities. In our FY 1994 Report and Order, 59 FR 30984 (June 16, 1994), we adopted the Schedule of Regulatory Fees that Congress established and we prescribed rules to govern payment of the fees, as required by Congress. See 47 U.S.C.  159(b), (f)(1). Subsequently, in our FY 1995, FY 1996, and FY 1997 Reports and Orders, 60 FR 34004 (June 29, 1995), 61 FR 36629 (July 12, 1996), and 62 FR 37408 (July 11, 1997), we modified the Schedule to increase by approximately 93 percent, 9 percent, and 21 percent, respectively, the revenue generated by these fees in accordance with the amounts Congress required us to collect for each of those fiscal years. Also, in our FY 1995, FY 1996, and FY 1997 fee decisions, we amended certain rules governing our regulatory fee program based upon our experience administering the program in prior years. See 47 CFR  1.1151 et seq. 6. For fiscal years after FY 1994, however, sections 9(b)(2) and (3), respectively, provide for "Mandatory Adjustments" and "Permitted Amendments" to the Schedule of Regulatory Fees. See 47 U.S.C.  159(b)(2), (b)(3). Section 9(b)(2), entitled "Mandatory Adjustments," requires that we revise the Schedule of Regulatory Fees whenever Congress changes the amount that we are to recover through regulatory fees. See 47 U.S.C.  159(b)(2). 7. Section 9(b)(3), entitled "Permitted Amendments," requires us to determine annually whether additional adjustments to the fees are warranted, taking into account factors that are reasonably related to the payer of the fee and factors that are in the public interest. In making these amendments, we are required to "add, delete, or reclassify services in the Schedule to reflect additions, deletions or changes in the nature of its services." See 47 U.S.C.  159(b)(3). 8. Section 9(i) requires us to develop an accounting system to adjust our fees to reflect changes in the costs of regulating various services and for other purposes. See 47 U.S.C.  9(i). We developed and implemented the cost accounting system in conjunction with FY 1997 fees. For FY 1998, we continue to rely on cost accounting data to identify our regulatory costs and to develop fees based upon these costs. Also, for FY 1998, we have limited the increase in the amount of the fee for any service in order to phase in our reliance on costbased fees for those services whose revenue requirement would be more than 25 percent above the revenue requirement which would have resulted from the "mandatory adjustments" to the FY 1997 fees without incorporation of costs. This methodology enables us to develop regulatory fees which more closely reflect our costs of regulation. Finally, section 9(b)(4)(B) requires that we notify Congress of any permitted amendments 90 days before those amendments go into effect. See 47 U.S.C.  159(b)(4)(B). III. Discussion A. CostBased Fee Methodology 9. As noted above, Congress has required us to recover $162,523,000 in FY 1998 regulatory fees, representing the costs applicable to our enforcement, policy and rulemaking, international, and user information activities.X` hp x (#%'0*,.8135@8: X` hp x (#%'0*,.8135@8: In effect, we proportionally adjusted the actual cost data pertaining to regulatory fee activities recorded for the period October 1, 1996, through September 30, 1997, (FY 1997) among all the fee categories so that total costs approximated $162,523,000. For fee categories where fees are further differentiated by subcategories, we distributed the revenue requirements to each subcategory. The results of these calculations are shown in detail in Attachment D and represent our best estimate of actual total attributable costs relative to each fee category and subcategory for FY 1998. However, the fee schedule for AM and FM radio stations was differentiated by class of station and population served in such a manner as to further differentiate small stations from larger stations. iv. Application of 25 Percent Revenue Ceiling 28. We applied the 25% ceiling on the increase in the revenue requirement of each fee category (over and above the Congressionally mandated increase in the overall revenue requirement and the difference in unit counts) using the same methodology we described in detail in our FY 1997 Report and Order. v. Recalculation of Fees 29. Once we determined the amount of fee revenue that it is necessary to collect from each class of licensee, we divided the revenue requirement by the number of payment units (and by the license term, if applicable, for "small" fees) to obtain actual fee amounts for each fee category. These calculated fee amounts were then rounded in accordance with section 9(b)(3) of the Act. See Attachment E. vi. Proposed Changes to Fee Schedule 30. We examined the results of our calculations made in  2527 to determine if further adjustments of the fees and/or changes to payment procedures were warranted based upon the public interest and other criteria established in 47 U.S.C. 159(b)(3). As a result of this review, we are adopting the following changes to our Fee Schedule: a. Commercial AM & FM Radio 31. In FY 1997 we revised the methodology for assessing radio regulatory fees, by determining each station's daytime protected field strength signal contour which was then overlaid upon U.S. Census data to estimate the population coverage for each station.X0ÍX0Í X` hp x (#%'0*,.8135@8:1,000,000 $4,000$3,250$1,500$2,000$3,250$4,000 38. As can be seen from the above chart, the same class stations in different size cities generally have different fees, with stations serving larger populations paying higher fees. In addition, different class stations in the same city generally have different fees, with stations which provide a higher class of service paying higher fees. The same class stations in the same city will have the same fee. Thus, the adopted fee schedule achieves the objectives of assessing fees based on class of station and populations served, thereby providing a fair and equitable means of distinguishing between stations located in metropolitan areas and in rural areas. 39. Moreover, if a licensee believes that it has been improperly placed in a particular fee classification group or that it will suffer undue financial hardship from the fee assessment, our rules provide for waiver, reduction or deferral of a fee as described in 1.1166 of our rules. See 47 CFR 1.1166. 40. We also agree with the NAB that the fee schedule should reflect the total number of nonexempt operating stations. We have identified those licensees who have not paid their regulatory fees and have requested that they pay the fee or submit evidence establishing that they have paid their fee or are entitled to an exemption from the regulatory fee. In addition, in Assessment and Collection of Regulatory Fees for Fiscal Year 1997, FCC 97384, adopted October 17, 1997, we required licensees to submit evidence of their nonprofit status. For FY 1998, we have made adjustments to the number of licensees subject to fee payment based on responses received pertaining to nonprofit status. Further, for FY 1999, we will consider the number of licensees who have paid their fees, as adjusted to account for licensees that have established their exempt status, and to account for responses to our letters requesting fee payments. Moreover, it is our intention to follow up on the FY 1998 fee payments to again identify and collect fees from those licensees that have not paid their fees and to further adjust and perfect our station counts. 41. The Commission will again inform radio station licensees of their exact fee obligation. A Public Notice listing each station's call letters, location, population, and the required fee will be mailed to each licensee. The same information will also be available at our internet web site (http://www.fcc.gov). Interested parties may also obtain their applicable fee amount for FY 1998 by calling the FCC's National Call Center at 18882255322. We have also provided detailed payment information for each radio station as Attachment L to this Report and Order. b. CMRS 42. In the NPRM, we proposed for FY 1998 fees of $.29 per unit for the CMRS Mobile Service and $.04 per unit for the CMRS Messaging Service. In addition, we sought comment on how best to assign the various CMRS services between the two fee categories. For FY 1997, licensees authorized for operation on broadband spectrum were subject to payment of the CMRS Mobile Service fee and licensees authorized for operation on narrowband spectrum were subject to payment of the CMRS Messaging fee without regard to the nature of the services actually offered. We invited interested parties to comment on our proposal to continue the FY 1998 fee structure, and we specifically invited comments on whether licensees in the 900 MHZ Specialized Mobile Radio (SMR) Service were properly included in the CMRS Mobile fee category. Further, we tentatively proposed to include the Wireless Communications Service in the CMRS Wireless fee category. 43. Several interested parties filed comments, in particular, concerning the demarcation between the CMRS Mobile and CMRS Messaging fee categories. SBC Communications Inc. (SBC) urges us to adopt only a single CMRS fee covering all CMRS services contending that both Congress and the Commission intended in establishing SMRS to create regulatory symmetry among the CMRS services and, thereby, avoid any competitive advantage to narrowband PCS and SMR Services over Cellular and broadband PCS.X0ÍÍX0ÍÍY X` hp x (#%'0*,.8135@8:1,000,000 population$4,0002.AM Class B  <=20,000 population$ 300 20,00150,000 population$ 750 50,001125,000 population$ 800 125,001400,000 population$1,250 400,0011,000,000 population$2,000 >1,000,000 population$3,250 3.AM Class C <=20,000 population$ 200 20,00150,000 population$ 300 50,001125,000 population$ 400 125,001400,000 population$ 600 400,0011,000,000 population$1,000 >1,000,000 population$1,500 4.AM Class D <=20,000 population$ 250 20,00150,000 population$ 400 50,001125,000 population$ 600 125,001400,000 population$ 750 400,0011,000,000 population$1,250 >1,000,000 population$2,000 5.AM Construction Permit$ 235 6.FM Classes A, B1 and C3 <=20,000 population$ 300 20,00150,000 population$ 600 50,001125,000 population$ 800 125,001400,000 population$1,250 400,0011,000,000 population$2,000 >1,000,000 population$3,250 7.FM Classes B, C, C1 and C2 <=20,000 population$ 400 20,00150,000 population$ 750 50,001125,000 population$1,250 125,001400,000 population$1,750 400,0011,000,000 population$2,500 >1,000,000 population$4,000 8.FM Construction Permits$1,150 TV (47 CFR, Part 73) VHF Commercial 1.Markets 1 thru 10$37,575FCC, TV Branch 2.Markets 11 thru 25$31,275P.O. Box 358835 3.Markets 26 thru 50$21,400Pittsburgh, PA 4.Markets 51 thru 100$11,975 152515835 5.Remaining Markets$ 3,100 6.Construction Permits$ 2,525 UHF Commercial 1.Markets 1 thru 10$14,175FCC, UHF Commercial 2.Markets 11 thru 25$10,725P.O. Box 358835 3.Markets 26 thru 50$ 6,650Pittsburgh, PA 4.Markets 51 thru 100$ 3,975152515835 5.Remaining Markets$ 1,075 6.Construction Permits$ 2,650 Satellite UHF/VHF Commercial 1.All Markets$1,175FCC Satellite TV 2.Construction Permits$ 420P.O. Box 358835 Pittsburgh, PA 152515835 Low Power TV, TV/FM $ 265FCC, Low Power Translator,& TV/FM Booster P.O. Box 358835 (47 CFR, Part 74) Pittsburgh, PA 152515835 Broadcast Auxiliary $ 11FCC, Auxiliary P.O. Box 358835 Pittsburgh, PA 152515835 Multipoint Distribution $ 260FCC, Multipoint P.O. Box 358835 Pittsburgh, PA 152515835 4. Sec. 1.1154 is revised to read as follows:   1.1154 Schedule of annual regulatory charges and filing locations for common carrier services.  Radio FacilitiesFee AmountAddress 1.Microwave (Domestic Public Fixed)$12FCC, Common Carrier P.O. Box 358680 Pittsburgh, PA 152515680 Carriers 1.Interstate Telephone Service Providers$ .0011FCC, Carriers (per dollar contributed to P.O. Box 358835 TRS Fund)Pittsburgh, PA 5. Sec. 1.1155 is revised to read as follows:   1.1155 Schedule of regulatory fees and filing locations for cable television services. Fee AmountAddress 1.Cable Antenna Relay Service$50FCC, Cable 2.Cable TV System$ .44P.O. Box 358835 (per subscriber) Pittsburgh, PA 152515835 6. Section 1.1156 is revised to read as follows:  1.1156 Schedule of regulatory fees and filing locations for international services.  Radio FacilitiesFee AmountAddress 1.International (HF) $475FCC, International BroadcastP.O. Box 358835 Pittsburgh, PA 152515835 2.International Public $375FCC, International FixedP.O. Box 358835 Pittsburgh, PA 152515835 Space Stations $119,000FCC, Space Stations (Geostationary Orbit) P.O. Box 358835 Pittsburgh, PA 152515835 Space Stations $164,800FCC, Space Stations (NonGeostationary Orbit) P.O. Box 358835 Pittsburgh, PA 152515835 Earth Stations $165FCC, Earth Station Transmit/Receive & P.O. Box 358835 Transmit Only (per authorization or registration)Pittsburgh, PA 152515835 Carriers 1.International Bearer Circuits$ 6.00FCC, International (per active 64KBP.O. Box 358835 circuit or equivalent) Pittsburgh, PA 152515835 `x(#AAttachment A ă  FINAL REGULATORY FLEXIBILITY ANALYSIS Đ 1. As required by the Regulatory Flexibility Act (RFA),9X` hp x (#%'0*,.8135@8:P#Í 1992 Economic Census Industry and Enterprise Receipts Size Report, Table 2D, SIC code 4841 (U.S. Bureau of the Census data under contract to the Office of Advocacy of the U.S. Small Business Administration).  6. The Commission has developed its own definition of a small cable system operator for the purposes of rate regulation. Under the Commission's rules, a "small cable company" is one serving fewer than 400,000 subscribers nationwide.z&X` hp x (#%'0*,.8135@8:X` hp x (#%'0*,.8135@8:X` hp x (#%'0*,.8135@8:470 MHZBase, SMRS) 4,645 10 5 232,250225,691&  & Private Microwave3,830 10 10 383,000372,184&  & Domestic Public Fixed/Comc'l Microwave5,150 10 10515,000500,456&  & IVDS0 0 5 00&  & Marine (Ship)16,500 5 10 825,000801,702&  & GMRS/Other LM72,465 5 5 1,811,6251,760,465&  & Aviation (Aircraft)3,500 5 10 175,000170,058&  & Marine (Coast)1,370 5 5 34,25033,283&  & Aviation (Ground)1,865 5 5 46,62545,308&  & Amateur Vanity Call Signs10,000 5 10 500,000485,880&  & AM/FM Radio8,646 1,126 1 9,735,3969,460,469&  & AM Construction Permits62 195 1 12,09011,749&  & FM Construction Permits473 950 1 449,350436,660&  & Satellite TV105 950 1 99,75096,933&  & Satellite TV Construction Permit10 345 1 3,4503,353&  & VHF Markets 11042 35,025 1 1,471,0501,429,508&  & VHF Markets 112561 28,450 1 1,735,4501,686,441&  & VHF Markets 265071 18,600 1 1,320,6001,283,306&  & VHF Markets 51100118 9,850 1 1,162,3001,129,477&  & VHF Remaining Markets 207 2,725 1 564,075548,146&  & VHF Construction Permits10 4,800 1 48,00046,644&  & UHF Markets 11094 16,850 1 1,583,9001,539,171&  & UHF Markets 112596 13,475 1 1,293,6001,257,069&  & UHF Markets 2650124 8,750 1 1,085,0001,054,360&  & UHF Markets 51100172 4,725 1 812,700789,749&  & UHF Remaining Markets 182 1,350 1 245,700238,761&  & UHF Construction Permits50 2,975 1 148,750144,549&  & Auxiliaries20,000 25 1 500,000485,880&  & International HF Broadcast4 390 1 1,5601,516&  & LPTV/Translators/Boosters2,290 220 1 503,800489,573&  & CARS1,800 65 1 117,000113,686&  & Cable Systems 66,000,000 0.54 1 35,640,00034,633,530&  & Interstate Telephone Service Providers70,103,000,000 0.00116 1 81,319,48079,023,026&B B & CMRS Mobile Services (Cellular/Public Mobile)55,540,000 0.24 1 13,329,60012,953,173&  & CMRS Messaging Services39,592,000 0.03 1 1,187,7601,154,218&  & MDS/MMDS1,878 215 1 403,770392,368&  & International Circuits325,000 5 1 1,625,0001,579,110&  & International Public Fixed3 310 1 930904&  & Earth Stations3,000 515 1 1,545,0001,501,369&  & Space Stations (Geostationary)46 97,975 1 4,506,8504,379,577&  & Space Stations (Nongeostationary)2 135,675 1 271,350263,687&  &&  &****** Total Estimated Revenue Collected167,246,011162,523,000&  &****** Total Revenue Requirement162,523,000162,523,000&          & Difference4,723,0110 ** 0.971760098 factor applied  hh  #<2PP#CALCULATION OF REGULATORY COSTS#,-2P,P#у`""%H#<2PP#Attachment D#,-2P,P# ă r X( `N@ X( `N@r &r     r     &Fee CategoryActual FY 1997 Regulatory CostsOverhead & Other Indirect Pro Rated Total Costs With Overhead & Other Indirect Pro RatedTotal Costs ProRated To $162 Million**Adjusted ProRated Costs***&  & LM (220 MHz, >470 MHZBase, SMRS) 1,952,42898,1952,050,6232,113,1362,113,136&  & Microwave4,860,809244,4695,105,2775,260,9125,260,912&  & IVDS2,122,499106,7492,229,2482,297,2062,297,206&  & Marine (Ship)2,754,238138,5212,892,7592,980,9452,980,945&  & GMRS/Other LM5,943,682298,9306,242,6126,432,9186,432,918&  & Aviation (Aircraft)980,89549,3331,030,2281,061,6351,061,635&  & Marine (Coast)685,60834,482720,090742,041742,041&  & Aviation (Ground)562,23928,277590,516608,518608,518&  & Amateur Vanity Call Signs88,6154,45793,07295,90995,909&  & AM/FM Radio14,125,529710,42714,835,95515,288,23014,396,926&  & AM Construction Permits 103,960&  & FM Construction Permits 787,344&  & Satellite TV 138,603&  & Satellite TV Construction Permit 3,489&  & VHF Television4,957,533249,3335,206,8665,365,598&  & VHF Markets 110 1,177,538&  & VHF Markets 1125 1,423,609&  & VHF Markets 2650 1,134,321&  & VHF Markets 51100 1,055,080&  & VHF Remaining Markets  479,377&  & VHF Construction Permits 18,765&  & UHF Television2,954,865148,6113,103,4763,198,086&  & UHF Markets 110 993,777&  & UHF Markets 1125 767,939&  & UHF Markets 2650 614,629&  & UHF Markets 51100 510,374&  & UHF Remaining Markets  147,610&  & UHF Construction Permits 98,573&  & Auxiliaries146,4607,366153,826158,515158,515&  & International HF Broadcast217,93110,961228,891235,869235,869&  & LPTV/Translators/Boosters736,54737,044773,590797,173797,173&  & CARS61,7973,10864,90566,88366,883&  & Cable Systems 20,125,0231,012,16421,137,18721,781,55521,781,555&  & Interstate Telewphone Service Providers53,234,0262,677,34155,911,36757,615,82857,615,828&  & CMRS Mobile Services (Cellular/Public Mobile)11,273,798567,00211,840,80112,201,76812,201,768&  & CMRS Messaging Services6,015,701302,5526,318,2546,510,8666,510,866&  & MDS/MMDS1,357,26068,2621,425,5211,468,9791,468,979&  & International Circuits8,253,772415,1148,668,8868,933,1578,933,157&  & International Public Fixed193,4369,729203,165209,358209,358&  & Earth Stations339,99917,100357,099367,985367,985&  & Space Stations (Geostationary)5,677,889285,5635,963,4526,145,2486,145,248&  & Space Stations (NonGeostationary)540,21527,169567,385584,681584,681&          &Overhead & Other Indirect Costs7,552,257&  &****** Total 157,715,0497,552,257157,715,049162,523,000159,839,216&  &****** Total Revenue Requirement162,523,000162,523,000162,523,000162,523,000&          & Difference(4,807,951)(4,807,951)0 (2,683,784)X` hp x (#%'0*,.8135@8:470 MHZBase, SMRS) 225,6912,113,136836.30%282,114282,114282,114282,114  282,114 12 12 278,700F      F Microwave872,6405,260,912502.87%1,090,8001,090,8001,090,8001,090,800  1,090,800 12 12 1,077,600F      F IVDS02,297,206 0000  0  0  0 0F      F Marine (Ship)801,7022,980,945271.83%1,002,1281,002,1281,002,1281,002,128  1,002,128 6 6 990,000F      F GMRS/Other LM1,760,4656,432,918265.41%2,200,5812,200,5812,200,5812,200,581  2,200,581 6 6 2,173,950F      F Aviation (Aircraft)170,0581,061,635524.28%212,573212,573212,573212,573  212,573 6 6 210,000F      F Marine (Coast)33,283742,0412129.49%41,60441,60441,60441,604  41,604 6 6 41,100F      F Aviation (Ground)45,308608,5181243.07%56,63556,63556,63556,635  56,635 6 6 55,950F      F Amateur Vanity Call Signs485,88095,909(80.26%)607,35095,909 95,909128,372128,372 128,372 128,527 1.29 1.30 130,000F      F AM/FM Radio9,460,46914,396,92652.18%11,825,58611,825,58611,825,58611,825,586  11,825,586 1,368 1,375 11,888,250F      F AM Construction Permits11,749103,960784.84%14,68614,68614,68614,686  14,686 237 235 14,570F      F FM Construction Permits436,660787,34480.31%545,825545,825545,825545,825  545,825 1,154 1,150 543,950F      F Satellite TV96,933138,60342.99%121,166121,166 121,166121,166   121,166 1,166 1,175 123,375F      F Satellite TV Construction Permit3,3533,4894.06%4,1913,489 3,4894,6704,191   4,191 419 420 4,200F      F VHF Markets 1101,429,5081,177,538(17.63%)1,786,8851,177,5381,177,5381,576,1121,576,112 1,576,112 1,578,013 37,572 37,575 1,578,150F      F VHF Markets 11251,686,4411,423,609(15.59%)2,108,0511,423,6091,423,6091,905,4731,905,473 1,905,473 1,907,772 31,275 31,275 1,907,775F      F VHF Markets 26501,283,3061,134,321(11.61%)1,604,1331,134,3211,134,3211,518,2671,518,267 1,518,267 1,520,098 21,410 21,400 1,519,400F      F VHF Markets 511001,129,4771,055,080(6.59%)1,411,8461,055,0801,055,0801,412,2041,411,846  1,411,846 11,965 11,975 1,413,050F      F VHF Remaining Markets 548,146479,377(12.55%)685,183479,377479,377641,637641,637 641,637 642,411 3,103 3,100 641,700F      F VHF Construction Permits46,66418,765(59.79%)58,35018,76518,76525,11725,117 25,117 25,147 2,515 2,525 25,250F      F UHF Markets 1101,539,171993,777(35.43%)1,923,964993,777993,7771,330,1511,330,151 1,330,151 1,331,756 14,168 14,175 1,332,450F      F UHF Markets 11251,257,069767,939(38.91%)1,571,336767,939767,9391,027,8721,027,872 1,027,872 1,029,111 10,720 10,725 1,029,600F      F UHF Markets 26501,054,360614,629(41.71%)1,317,950614,629614,629822,669822,669 822,669 823,661 6,642 6,650 824,600F      F UHF Markets 51100789,749510,374(35.38%)987,186510,374510,374683,126683,126 683,126 683,950 3,976 3,975 683,700F      F UHF Remaining Markets 238,761147,610(38.18%)298,451147,610147,610197,573197,573 197,573 197,811 1,087 1,075 195,650F      F UHF Construction Permits144,54998,573(31.81%)180,68698,57398,573131,938131,938 131,938 132,097 2,642 2,650 132,500F      F Auxiliaries485,880158,515(67.38%)607,350158,515158,515212,169212,169 212,169 212,425 11 11 220,000F      F International HF Broadcast1,516235,86915458.64%1,8951,8951,8951,895  1,895 474 475 1,900F      F LPTV/Translators/Boosters489,573797,17362.83%611,966611,966611,966611,966  611,966 267 265 606,850F      F CARS113,69666,883(41.17%)142,12066,88366,88389,52289,522 89,522 89,630 50 50 90,000F      F Cable Systems 34,633,53021,781,555(37.11%)43,291,91321,781,55521,781,55529,154,19229,154,192 29,154,192 29,189,360 0.44  0.44 29,189,360F      F Interstate Telephone Service Providers79,023,02657,615,828(27.09%)98,778,78357,615,82857,615,82877,117,67677,117,676 77,117,676 77,210,702 0.0011  0.0011 77,210,702F      F CMRS Mobile Services (Cellular/Public Mobile)12,953,17312,201,768(5.80%)16,191,46612,201,76812,201,76816,331,83116,191,466  16,191,466 0.29 0.29 16,191,466F      F CMRS Messaging Services1,154,2186,510,866464.09%1,442,7731,442,7731,442,7731,442,773  1,442,773 0.04 0.04 1,442,773F      F MDS/MMDS392,3681,468,979274.39%490,460490,460490,460490,460  490,460 261 260 488,280F      F International Circuits1,579,1108,933,157465.71%1,973,8881,973,8881,973,8881,973,888  1,973,888 6 6 1,950,000F      F International Public Fixed904209,35823059.07%1,1301,1301,1301,130  1,130 377 375 1,125F      F Earth Stations1,501,369367,985(75.49%)1,876,711367,985367,985492,541492,541 492,541 493,135 164 165 495,000F      F Space Stations (Geostationary)4,379,5776,145,24840.32%5,474,4715,474,4715,474,4715,474,471  5,474,471 119,010 119,000 5,474,000F      F Space Stations (NonGeostationary)263,687584,681121.73%329,609329,609329,609329,609  329,609 164,804 164,800 329,000F      F****** Total Estimated Revenue Collected162,523,019162,522,999203,153,774128,433,413100,713,524162,523,000162,381,798 117,054,406 162,524,243   162,506,526F      F****** Total Revenue Requirement162,523,000162,523,000162,523,000162,523,000162,523,000162,523,000  162,523,000   162,523,000F                      F Difference19(1)40,630,774 (34,089,587)0(141,202)  1,243   (16,474)** 1.33782803 factor applied *** 1.003487295 factor applied7#<2PP#у  3'   Attachment F#%2PP#ѐ #6X@@# FY 1998 SCHEDULE OF REGULATORY FEES #Xx6X@X@#ѐ III II J ddxp  ddxp J    #4zp7#Fee Category#:l4zp7:#ѐAnnual Regulatory FeeĐF F PMRS (per license) (Formerly Land Mobile Exclusive Use at 220222 MHz, above 470 MHz, Base Station and SMRS) (47 CFR Part 90)000`h !p"$ 'x)+(.0205798<>@@CEGHJLNPQS12g g Microwave (per license) (47 CFR Part 101)12g g Interactive Video Data Service (per license) (47 CFR Part 95)X` hp x (#%'0*,.8135@8:1,000,0004,0003,2501,5002,0003,2504,000 `L(#@Attachment G ă #6X@@# COMPARISON BETWEEN FY 1997 & FY 1998 PROPOSED & FINAL REGULATORY FEES  ^ ddx   ddx  ^      #4zp7#Fee Category#_4zp7#ѐ#@2p#Annual Regulatory Fee FY 1997#P2p##@2p#NPRM Proposed Fee FY 1998#P2p##@2p#Annual Regulatory Fee FY 1998#P2p#    PMRS (per license) (Formerly Land MobileExclusive Use at 220222 Mhz, above 470 Mhz, Base Station and SMRS) (47 CFR Part 90)`h !p"$ 'x)+(.0205798<>@@CEGHJLNPQS101212P  P  Microwave (per license) (47 CFR Part 101)(((101212P  P  Interactive Video Data Service (per license) (47 CFR Part 95)X` hp x (#%'0*,.8135@8:1,000,0004,0003,2501,5002,0003,2504,000  X #XN\  PXP#`l(#@ Attachment H @| DETAILED GUIDANCE ON WHO MUST PAY REGULATORY FEES 1. The guidelines below provide an explanation of regulatory fee categories established by the Schedule of Regulatory Fees in section 9 (g) of the Communications Act, 47 U.S.C.  159(g) as modified in the instant Report and Order. Where regulatory fee categories need interpretation or clarification, we have relied on the legislative history of section 9, our own experience in establishing and regulating the Schedule of Regulatory Fees for Fiscal Years (FY) 1994, 1995, 1996, and 1997 and the services subject to the fee schedule, and the comments of the parties in our proceeding to adopt fees for FY 1998. The categories and amounts set out in the schedule have been modified to reflect changes in the number of payment units, additions and changes in the services subject to the fee requirement and the benefits derived from the Commission's regulatory activities, and to simplify the structure of the schedule. The schedule may be similarly modified or adjusted in future years to reflect changes in the Commission's budget and in the services regulated by the Commission. See 47 U.S.C.  159(b)(2), (3). 2. Exemptions. Governments and nonprofit entities are exempt from paying regulatory fees and should not submit payment. A nonprofit entity may be asked to submit a current IRS Determination Letter documenting that it is exempt from taxes under Section 501of the Internal Revenue Code or the certification of a governmental authority attesting to its nonprofit status. The governmental exemption applies even where the governmentowned or communityowned facility is in competition with a commercial operation. Other specific exemptions are discussed below in the descriptions of other particular service categories. 1. Private Wireless Radio Services 3. Two levels of statutory fees were established for the Private Wireless Radio Services exclusive use services and shared use services. Thus, licensees who generally receive a higher quality communication channel due to exclusive or lightly shared frequency assignments will pay a higher fee than those who share marginal quality assignments. This dichotomy is consistent with the directive of Section 9, that the regulatory fees reflect the benefits provided to the licensees. See 47 U.S.C.  159(b)(1)(A). In addition, because of the generally small amount of the fees assessed against Private Wireless Radio Service licensees, applicants for new licenses and reinstatements and for renewal of existing licenses are required to pay a regulatory fee covering the entire license term, with only a percentage of all licensees paying a regulatory fee in any one year. Applications for modification or assignment of existing authorizations do not require the payment of regulatory fees. The expiration date of those authorizations will reflect only the unexpired term of the underlying license rather than a new license term. a. Exclusive Use Services 4. Private Mobile Radio Services (PMRS) (Formerly Land Mobile Services): Regulatees in this category include those authorized under part 90 of the Commission's Rules to provide limited access Wireless Radio service that allows high quality voice or digital communications between vehicles or to fixed stations to further the business activities of the licensee. These services, using the 220222 MHz band and frequencies at 470 MHz and above, may be offered on a private carrier basis in the Specialized Mobile Radio Services (SMRS).ftX` hp x (#%'0*,.8135@8:1,000,0004,0003,2501,5002,0003,2504,000#XN\  PXP# 19. Licensees may determine the appropriate fee payment by referring to the list provided at Attachment L to this Report and Order. This same information will be available on the FCC's internet world wide web site (http://www.fcc.gov), by calling the FCC's National Call Center (18882255322), and will be included in the Public Notices mailed to each licensee. b. Construction Permits Commercial AM Radio 20. This category includes holders of permits to construct new Commercial AM Stations. For FY 1998, permittees will pay a fee of $235 for each permit held. Upon issuance of an operating license, this fee would no longer be applicable and licensees would be required to pay the applicable fee for the designated class of the station. c. Construction Permits Commercial FM Radio 21. This category includes holders of permits to construct new Commercial FM Stations. For FY 1998, permittees will pay a fee of $1,150 for each permit held. Upon issuance of an operating license, this fee would no longer be applicable. Instead, licensees would pay a regulatory fee based upon the designated class of the station. d. Commercial Television Stations 22. This category includes licensed Commercial VHF and UHF Television Stations covered under part 73 of the Commission's Rules, except commonly owned Television Satellite Stations, addressed separately below. Markets are Nielsen Designated Market Areas (DMA) as listed in the Television & Cable Factbook, Stations Volume No. 66, 1998 Edition, Warren Publishing, Inc. The fees for each category of station are as follows: VHF Markets 110...............$37,575 VHF Markets 1125...............31,275 VHF Markets 2650...............21,400VHF Markets 51100.............11,975 VHF Remaining Markets........3,100 UHF Markets 110...............$14,175 UHF Markets 1125...............10,725 UHF Markets 2650.................6,650 UHF Markets 51100...............3,975 UHF Remaining Markets........1,075 e. Commercial Television Satellite Stations 23. Commonly owned Television Satellite Stations in any market (authorized pursuant to Note 5 of  73.3555 of the Commission's Rules) that retransmit programming of the primary station are assessed a fee of $1,175 annually. Those stations designated as Television Satellite Stations in the 1998 Edition of the Television and Cable Factbook are subject to the fee applicable to Television Satellite Stations. All other television licensees are subject to the regulatory fee payment required for their class of station and market. f. Construction Permits Commercial VHF Television Stations 24. This category includes holders of permits to construct new Commercial VHF Television Stations. For FY 1998, VHF permittees will pay an annual regulatory fee of $2,525. Upon issuance of an operating license, this fee would no longer be applicable. Instead, licensees would pay a fee based upon the designated market of the station. g. Construction Permits Commercial UHF Television Stations 25 This category includes holders of permits to construct new UHF Television Stations. For FY 1998, UHF Television permittees will pay an annual regulatory fee of $2,650. Upon issuance of an operating license, this fee would no longer be applicable. Instead, licensees would pay a fee based upon the designated market of the station. h. Construction Permits ĩ Satellite Television Stations 26. The fee for UHF and VHF Television Satellite Station construction permits for FY 1998 is $420. An individual regulatory fee payment is to be made for each Television Satellite Station construction permit held. i. Low Power Television, FM Translator and Booster Stations, TV Translator and Booster Stations 27. This category includes Low Power UHF/VHF Television stations operating under part 74 of the Commission's Rules with a transmitter power output limited to 1 kW for a UHF facility and, generally, 0.01 kW for a VHF facility. Low Power Television (LPTV) stations may retransmit the programs and signals of a TV Broadcast Station, originate programming, and/or operate as a subscription service. This category also includes translators and boosters operating under part 74 which rebroadcast the signals of full service stations on a frequency different from the parent station (translators) or on the same frequency (boosters). The stations in this category are secondary to full service stations in terms of frequency priority. We have also received requests for waivers of the regulatory fees from operators of community based Translators. These Translators are generally not affiliated with commercial broadcasters, are nonprofit, nonprofitable, or only marginally profitable, serve small rural communities, and are supported financially by the residents of the communities served. We are aware of the difficulties these Translators have in paying even minimal regulatory fees, and we have addressed those concerns in the ruling on reconsideration of the FY 1994 Report and Order. Community based Translators are exempt from regulatory fees. For FY 19978 licensees in low power television, FM translator and booster, and TV translator and booster category will pay a regulatory fee of $265 for each license held. j. Broadcast Auxiliary Stations 28. This category includes licensees of remote pickup stations (either base or mobile) and associated accessory equipment authorized pursuant to a single license, Aural Broadcast Auxiliary Stations (Studio Transmitter Link and InterCity Relay) and Television Broadcast Auxiliary Stations (TV Pickup, TV Studio Transmitter Link, TV Relay) authorized under part 74 of the Commission's Rules. Auxiliary Stations are generally associated with a particular television or radio broadcast station or cable television system. This category does not include translators and boosters (see  26 infra). For FY 1998, licensees of Commercial Auxiliary Stations will pay an $11 annual regulatory fee on a per call sign basis. k. Multipoint Distribution Service 29. This category includes Multipoint Distribution Service (MDS), and Multichannel Multipoint Distribution Service (MMDS), authorized under part 21 of the Commission's Rules to use microwave frequencies for video and data distribution within the United States. For FY 1998, MDS and MMDS stations will pay an annual regulatory fee of $260 per call sign. 3. Cable Services a. Cable Television Systems 30. This category includes operators of Cable Television Systems, providing or distributing programming or other services to subscribers under part 76 of the Commission's Rules. For FY 1998, Cable Systems will pay a regulatory fee of $.44 per subscriber.yX` hp x (#%'0*,.8135@8: