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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the FCC 99-44 FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) Assessment and Collection ) MD Docket No. 98-200 of Regulatory Fees for ) Fiscal Year 1999 ) NOTICE OF PROPOSED RULEMAKING Adopted: March 9, 1999 ; Released: March 24, 1999 By the Commission: Comment Date: April 19, 1999 Reply Comment Date: April 29, 1999 Table of Contents Topic Paragraph Numbers I. Introduction 1 II. Background 4 III. Discussion A. Summary of FY 1999 Fee Methodology 8 B. Development of FY 1999 Fees i. Adjustment of Payment Units 12 ii. Calculation of Revenue Requirements 13 iii. Recalculation of Fees 14 iv. Proposed Changes to Fee Schedule 15 a. FY 1999 Fee Schedule to Be Based on Mandatory Adjustments16 b. Reduction of the FM Construction Permit Fee 17 v. Effect of Revenue Redistributions on Major Constituencies20 C. Notice of Inquiry Issues 21 D. Procedures for Payment of Regulatory Fees 23 i. Annual Payments of Standard Fees 24 ii. Installment Payments for Large Fees 25 iii. Advance Payments of Small Fees 26 iv. Minimum Fee Payment Liability 27 v. Standard Fee Calculations and Payments 28 E. Schedule of FY 1999 Regulatory Fees 30 IV. Procedural Matters A. Comment Period and Procedures 31 B. Ex Parte Rules 36 C. Initial Regulatory Flexibility Analysis 37 D. Authority and Further Information 38 Attachment A - Initial Regulatory Flexibility Analysis Attachment B - Sources of Payment Unit Estimates For FY 1999 Attachment C - Calculation of Revenue Requirements and Pro-Rata Fees Attachment D - FY 1999 Schedule of Regulatory Fees Attachment E - Comparison Between FY 1998 and FY 1999 Proposed Regulatory Fees Attachment F - Detailed Guidance on Who Must Pay Regulatory Fees Attachment G - Description of FCC Activities Attachment H - Factors, measurements and calculations that go into determining station signal contours and associated population coverages I. Introduction 1. By this Notice of Proposed Rulemaking, the Commission commences a proceeding to revise its Schedule of Regulatory Fees in order to collect the amount of regulatory fees that Congress, pursuant to section 9(a) of the Communications Act, as amended, has required it to collect for Fiscal Year (FY) 1999. 2. Congress has required that we collect $172,523,000 through regulatory fees in order to recover the costs of our enforcement, policy and rulemaking, international and user information activities for FY 1999. This amount is $10,000,000 or approximately 6% more than the amount that Congress designated for recovery through regulatory fees for FY 1998. Thus, we are proposing to revise our fees in order to collect the increased amount that Congress has required that we collect. Additionally, we propose to amend the Schedule in order to simplify and streamline it. 3. In proposing to revise our fees, we 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 are proposing changes to the fees pursuant to public interest considerations. The current Schedule of Regulatory Fees is set forth in sections 1.1152 through 1.1156 of the Commission's rules. II. Background 4. 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 determined annually by Congress, that it incurs in carrying out enforcement, policy and rulemaking, international, and user information activities. See Attachment G for a description of these activities. In our FY 1994 Fee Order, we adopted the Schedule of Regulatory Fees that Congress established, and we prescribed rules to govern payment of the fees, as required by Congress. Subsequently, we modified the fee Schedule to increase the fees in accordance with the amounts Congress required us to collect in each succeeding fiscal year. We also amended the rules governing our regulatory fee program based upon our experience administering the program in prior years. 5. As noted above, for FY 1994 we adopted the Schedule of Regulatory Fees established in section 9(g) of the Act. 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. 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. 6. Section 9(b)(3), entitled "Permitted Amendments," requires that we 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 to "add, delete, or reclassify services in the Schedule to reflect additions, deletions or changes in the nature of its services." 7. Section 9(i) requires that we develop accounting systems necessary to adjust our fees pursuant to changes in the costs of regulation of various services that are subject to a fee, and for other purposes. For FY 1997, we relied for the first time on cost accounting data to identify our regulatory costs and to develop our FY 1997 fees based upon these costs. Also, for FY 1997, we limited the increase in the amount of the fee for any service in order to phase in our reliance on cost-based 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, which we continued to utilize for FY 1998, enabled us to develop regulatory fees which we believed to be more reflective of our costs of regulation, and allowed us to make revisions to our fees based on the fullest extent possible, and consistent with the public interest, on the actual costs of regulating those services subject to a fee. Finally, section 9(b)(4)(B) requires that we notify Congress of any permitted amendments 90 days before those amendments go into effect. III. Discussion A. Summary of FY 1999 Fee Methodology 8. As noted above, Congress has required that the Commission recover $172,523,000 for FY 1999 through the collection of regulatory fees, representing the costs applicable to our enforcement, policy and rulemaking, international, and user information activities. 9. In developing our proposed FY 1999 fee schedule, we first determined that we would continue to use the same general methodology for "Mandatory Adjustments" to the Fee Schedule as we used in developing fees for FY 1998. We estimated the number of payment units for FY 1999 in order to determine the aggregate amount of revenue we would collect without any revision to our FY 1998 fees. Next, we compared this revenue amount to the $172,523,000 that Congress has required us to collect in FY 1999 and pro-rated the difference among all the existing fee categories. 10. Once we established our tentative FY 1999 fees, we evaluated proposals made by Commission staff concerning "Permitted Amendments" to the Fee Schedule and to our collection procedures. These proposals are discussed in paragraphs 15-19 and are factored into our proposed FY 1999 Schedule of Regulatory Fees, set forth in Attachment D. 11. Finally, we have incorporated, as Attachment F, proposed 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 1999. In the following paragraphs, we describe in greater detail our proposed methodology for establishing our FY 1999 regulatory fees. B. Development of FY 1999 Fees i. Adjustment of Payment Units 12. In calculating individual service regulatory fees for FY 1999, we adjusted the estimated payment units for each service because payment units for many services have changed substantially since we adopted our FY 1998 fees. We obtained our estimated payment units through a variety of means, including our licensee data bases, actual prior year payment records, and industry and trade group projections. Whenever possible, we verified these estimates from multiple sources to ensure the accuracy of these estimates. Attachment B provides a summary of how revised payment units were determined for each fee category. ii. Calculation of Revenue requirements 13. We next multiplied the revised payment units for each service by the FY 1998 fees in each category to determine how much revenue we would collect without any change to the FY 1998 Schedule of Regulatory Fees. The amount of revenue which we would collect without changes to the Fee Schedule is approximately $157.6 million. This amount is approximately $14.9 million less than the amount the Commission is required to collect in FY 1999. We then adjusted the revenue requirements for each category on a proportional basis, consistent with Section 9(b)(2) of the Act, to obtain an estimate of the revenue requirements for each fee category so that the Commission could collect $172,523,000 as required by Congress. Attachment C provides detailed calculations showing how we determined the revised revenue amounts to be raised for each service. iii. Recalculation of Fees 14. 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 C. iv. Proposed Changes to Fee Schedule 15. We examined the results of our calculations 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 proposing the following "Permitted Amendments" to our Fee Schedule: a. FY 1999 Fee Schedule to Be Based on Mandatory Adjustments 16. We are proposing that the FY 1999 fee schedule be based on the mandatory adjustments as computed in Attachment C and in accordance with section 9(b)(2) of the Act. b. Reduction of the FM Construction Permit Fee 17. In the original Congressional fee schedule, the FM Construction Permit fee was set at $500 (Five times the AM Construction Permit Fee of $100). In succeeding year's schedules, nearly the same relationship has prevailed as evidenced by the calculated FM Construction Permit fee for FY 1999 of $1,250 (compared to the calculated AM Construction Permit fee for FY 1999 of $255). 18. Several parties have informally expressed concern that the FM Construction Permit fee is out of proportion in relation to the fees imposed on licensed FM stations particularly in less populated areas. At the same time, it should be noted that the regulatory costs borne by the Commission applicable to FM Construction Permits is significantly higher than its costs for AM Construction Permits. 19. We seek comment on a staff proposal to make a permitted amendment to the schedule of regulatory fees for FY 1999 reducing the FM Construction Permit fee to $765 (three times the AM Construction Permit fee). This reduction would result in a loss of $145,500 in estimated regulatory fee collections. v. Effect of Revenue Redistributions on Major Constituencies 20. The following chart illustrates the relative percentage of the overall revenue requirements borne by the major constituencies since the inception of regulatory fees in FY 1994. PERCENTAGE OF REVENUE COLLECTED BY CONSTITUENCY FY 1994 (Actual) FY 1995 (Actual) FY 1996 (Actual) FY 1997 (Actual) FY 1998 (Actual) FY 1999 (Proposed) Cable TV Operators (Inc. CARS Licenses) 41.4 24.0 33.4 21.8 17.9 17.9 Broadcast Licensees 23.8 13.8 14.6 14.1 15.6 15.4 Satellite Operators (Inc. Earth Stations) 3.3 3.6 4.0 5.0 5.3 5.6 Common Carriers 25.0 44.5 40.9 49.8 47.5 47.1 Wireless Licensees 6.5 14.1 7.1 9.3 13.7 14.0 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 C. Notice of Inquiry Issues 21. On November 10, 1998, the Commission adopted a Notice of Inquiry in this proceeding seeking comments on five specific issues. Briefly, the issues for which comments were sought included: (1) clarification of the Commercial Mobile Radio Services ("CMRS") fee categories and demarcation of which types of services or usage to include in each category; (2) determination of the appropriate basis for assessing regulatory fees on geostationary orbit space stations ("GSOs"); (3) determination of the appropriate method of assessing our regulatory costs associated with non-geostationary orbit space station systems ("NGSOs") to licensees which have launched satellites or to all NGSO licensees; (4) whether we should base revenues for interstate telephone service providers on the Universal Services Fund's end user methodology rather than the Telecommunication Relay Services Fund adjusted gross revenue methodology; and (5) whether we should create a "new services" category in our cost accounting system in which costs associated with development of new services, regardless of the service, would be proportionately assessed to all feeable categories rather than assessed to existing licensees in the same service category. 22. In the interest of expediting this NPRM, we are deferring analysis of the comments and replies received pursuant to the NOI for inclusion in the final Report and Order in this proceeding. Commenters do not need to resubmit these same arguments in response to this NPRM. Further, the basis for assessing revenues for interstate telephone service providers is best delayed until the conclusion of CC Docket No. 98-171, In the Matter of 1998 biennial Regulatory Review-- Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Services, North American Numbering Plan, Local Number Portability, and Universal Service support Mechanisms. D. Procedures for Payment of Regulatory Fees 23. Generally, we propose to retain the procedures that we have established for the payment of regulatory fees. Section 9(f) requires that we permit "payment by installments in the case of fees in large amounts, and in the case of small amounts, shall require the payment of the fee in advance for a number of years not to exceed the term of the license held by the payer." See 47 U.S.C.  159(f)(1). Consistent with section 9(f), we are again proposing to establish three categories of fee payments, based upon the category of service for which the fee payment is due and the amount of the fee to be paid. The fee categories are (1) "standard" fees, (2) "large" fees, and (3) "small" fees. i. Annual Payments of Standard Fees 24. As we have in the past, we are proposing to treat regulatory fee payments by certain licensees as "standard fees" which are those regulatory fees that are payable in full on an annual basis. Payers of standard fees are not required to make advance payments for their full license term and are not eligible for installment payments. All standard fees are payable in full on the date we establish for payment of fees in their regulatory fee category. The payment dates for each regulatory fee category will be announced either in the Report and Order terminating this proceeding or by public notice in the Federal Register pursuant to authority delegated to the Managing Director. ii. Installment Payments for Large Fees 25. While we are mindful that time constraints may preclude an opportunity for installment payments, we propose that regulatees in any category of service with a liability of $12,000 or more be eligible to make installment payments and that eligibility for installment payments be based upon the amount of either a single regulatory fee payment or combination of fee payments by the same licensee or regulatee. We propose that regulatees eligible to make installment payments may submit their required fees in two equal payments (on dates to be announced) or, in the alternative, in a single payment on the date that their final installment payment is due. Due to statutory constraints concerning notification to Congress prior to actual collection of the fees, however, it is unlikely that there will be sufficient time for installment payments, and that regulatees eligible to make installment payments will be required to pay these fees on the last date that fee payments may be submitted. The dates for installment payments, or a single payment, will be announced either in the Report and Order terminating this proceeding or by public notice published in the Federal Register pursuant to authority delegated to the Managing Director. iii. Advance Payments of Small Fees 26. As we have in the past, we are proposing to treat regulatory fee payments by certain licensees as "small" fees subject to advance payment consistent with the requirements of section 9(f)(2). We propose that advance payments will be required from licensees of those services that we decided would be subject to advance payments in our FY 1994 Report and Order, and to those additional payers set forth herein. We are also proposing that payers of advance fees will submit the entire fee due for the full term of their licenses when filing their initial, renewal, or reinstatement application. Regulatees subject to a payment of small fees shall pay the amount due for the current fiscal year multiplied by the number of years in the term of their requested license. In the event that the required fee is adjusted following their payment of the fee, the payer would not be subject to the payment of a new fee until filing an application for renewal or reinstatement of the license. Thus, payment for the full license term would be made based upon the regulatory fee applicable at the time the application is filed. The effective date for payment of small fees established in this proceeding will be announced in our Report and Order terminating this proceeding or by public notice published in the Federal Register pursuant to authority delegated to the Managing Director. iv. Minimum Fee Payment Liability 27. As we have in the past, we are proposing that regulatees whose total regulatory fee liability, including all categories of fees for which payment is due by an entity, amounts to less than $10 will be exempted from fee payment in FY 1999. v. Standard Fee Calculations and Payment Dates 28. As noted, the time for payment of standard fees and any installment payments will be announced in our Report and Order terminating this proceeding or will be published in the Federal Register pursuant to authority delegated to the Managing Director. For licensees, permittees and holders of other authorizations in the Common Carrier, Mass Media, and Cable Services whose fees are not based on a subscriber, unit, or circuit count, we are proposing that fees be paid for any authorization issued on or before October 1, 1998. 29. In the case of regulatees whose fees are based upon a subscriber, unit or circuit count, the number of a regulatees' subscribers, units or circuits on December 31, 1998, will be used to calculate the fee payment. E. Schedule of Regulatory Fees 30. The Commission's proposed Schedule of Regulatory Fees for FY 1999 is contained in Attachment D of this NPRM. IV. Procedural Matters A. Comment Period and Procedures 31. Pursuant to Sections 1.415 and 1.419 of the Commission's rules, 47 CFR 1.415, 1.419, interested parties may file comments on or before April 19, 1999, and reply comments on or before April 29, 1999. Comments may be filed using the Commission's Electronic Comment Filing System (ECFS) or by filing paper copies. 32. Comments filed through the ECFS can be sent as an electronic file via the Internet to . Generally, only one copy of an electronic submission must be filed. However, if multiple docket or rulemaking numbers appear in the caption of this proceeding, commenters must transmit one electronic copy of the comments to each docket or rulemaking number referenced in the caption. In completing the transmittal screen, commenters should include their full name, Postal Service mailing address, and the applicable docket or rulemaking number. Parties may also submit an electronic comment by e-mail via Internet. To get filing instructions for e-mail comments, commenters should send an e-mail to ecfs@fcc.gov, and should include the following words in the body of the message, "get form 470 MHZ-Base, SMRS) 5,800 12 5 348,000 380,800 13 377,000 Private Microwave 5,375 12 10 645,000 705,793 13 698,750 Domestic Public Fixed/Comc'l Microwave 1,000 10 10 120,000 131,310 13 130,000 IVDS 0 0 5 0 0 0 0 Marine (Ship) 16,800 6 10 1,008,000 1,103,006 7 1,176,000 GMRS/Other LM 68,700 6 5 2,061,000 2,255,254 7 2,404,500 Aviation (Aircraft) 4,800 6 10 288,000 315,145 7 336,000 Marine (Coast) 1,400 6 5 42,000 45,959 7 49,000 Aviation (Ground) 1,600 6 5 48,000 52,524 7 56,000 Amateur Vanity Call Signs 6,800 6 10 88,400 96,732 1.42 96,732 AM/FM Radio 8,905 1,370 1 12,195,735 13,345,211 1,500 13,381,900 AM Construction Permits 75 235 1 17,625 19,286 255 19,125 FM Construction Permits 300 1,150 1 345,000 377,517 1,250 375,000 Satellite TV 109 1,175 1 128,075 140,146 1,275 138,975 Satellite TV Construction Permit 6 420 1 2,520 2,758 460 2,760 VHF Markets 1-10 42 37,575 1 1,578,150 1,726,894 41,125 1,727,250 VHF Markets 11-25 60 31,275 1 1,876,500 2,053,364 34,225 2,053,500 VHF Markets 26-50 70 21,400 1 1,498,000 1,639,190 23,425 1,639,750 VHF Markets 51-100 119 11,975 1 1,425,025 1,559,337 13,100 1,558,900 VHF Remaining Markets 205 3,100 1 635,500 695,397 3,400 697,000 VHF Construction Permits 15 2,525 1 37,875 41,445 2,775 41,625 UHF Markets 1-10 68 14,175 1 963,900 1,054,750 15,500 1,054,000 UHF Markets 11-25 67 10,725 1 718,575 786,302 11,725 785,575 UHF Markets 26-50 100 6,650 1 665,000 727,678 7,275 727,500 UHF Markets 51-100 150 3,975 1 596,250 652,448 4,350 652,500 UHF Remaining Markets 180 1,075 1 193,500 211,738 1,175 211,500 UHF Construction Permits 60 2,650 1 159,000 173,986 2,900 174,000 Auxiliaries 22,000 11 1 242,000 264,809 12 264,000 International HF Broadcast 5 475 1 2,375 2,599 520 2,600 LPTV/Translators/Boosters 2,020 265 1 535,300 585,753 290 585,800 CARS 1,687 50 1 84,350 92,300 55 92,785 Cable Systems 64,000,000 0.44 1 28,160,000 30,814,144 0.48 30,814,144 Interstate Telephone Service Providers 67,732,300,000 0.0011 1 74,505,530 81,527,847 0.0012 81,527,847 CMRS Mobile Services (Cellular/Public Mobile) 55,540,000 0.29 1 15,950,600 17,453,324 0.32 17,453,324 CMRS Messaging Services 34,500,000 0.04 1 1,380,000 1,510,068 0.04 1,510,068 MDS/MMDS 1,650 260 1 429,000 469,434 285 470,250 International Circuits 465,000 6 1 2,790,000 3,052,964 7 3,255,000 International Public Fixed 3 375 1 1,125 1,231 410 1,230 Earth Stations 3,100 165 1 511,500 559,710 180 558,000 Space Stations (Geostationary) 42.5 119,000 1 5,057,500 5,534,181 130,225 5,534,563 Space Stations (Non-geostationary) 2 164,800 1 329,600 360,666 180,325 360,650 ****** Total Estimated Revenue Collected 157,662,910 172,523,000 172,995,103 ****** Total Revenue Requirement 172,523,000 172,523,000 172,523,000 Difference (14,860,090) 0 472,103 ** 1.094252288 factor applied Attachment D FY 1999 SCHEDULE OF REGULATORY FEES (PROPOSED) Fee Category Annual Regulatory Fee ( U.S. $'s) PMRS (per license) (Formerly Land Mobile - Exclusive Use at 220-222 MHz, above 470 MHz, Base Station and SMRS) (47 CFR part 90) 13 Microwave (per license) (47 CFR part 101) 13 Interactive Video Data Service (per license) (47 CFR part 95) No Fee Marine (Ship) (per station) (47 CFR part 80) 7 Marine (Coast) (per license) (47 CFR part 80) 7 General Mobile Radio Service (per license) (47 CFR part 95) 7 Land Mobile (per license) (all stations not covered by PMRS and CMRS) 7 Aviation (Aircraft) (per station) (47 CFR part 87) 7 Aviation (Ground) (per license) (47 CFR part 87) 7 Amateur Vanity Call Signs (per call sign) (47 CFR part 97) 1.42 CMRS Mobile Services (per unit) (47 CFR parts 20, 22, 24, 80 and 90) .32 CMRS Messaging Services (per unit) (47 CFR parts 20, 22 and 90) .04 Multipoint Distribution Services (per call sign) (47 CFR part 21) 285 AM Radio Construction Permits 255 FM Radio Construction Permits 1,250 TV (47 CFR part 73) VHF Commercial Markets 1-10 41,125 Markets 11-25 34,225 Markets 26-50 23,425 Markets 51-100 13,100 Remaining Markets 3,400 Construction Permits 2,775 TV (47 CFR part 73) UHF Commercial Markets 1-10 15,500 Markets 11-25 11,725 Markets 26-50 7,275 Markets 51-100 4,350 Remaining Markets 1,175 Construction Permits 2,900 Satellite Television Stations (All Markets) 1,275 Construction Permits - Satellite Television Stations 460 Low Power TV, TV/FM Translators & Boosters (47 CFR part 74) 290 Broadcast Auxiliary (47 CFR part 74) 12 Cable Antenna Relay Service (47 CFR part 78) 55 Cable Television Systems (per subscriber) (47 CFR part 76) .48 Interstate Telephone Service Providers (per revenue dollar) .0012 Earth Stations (47 CFR part 25) 180 Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes Direct Broadcast Satellite Service (per operational station) (47 CFR part 100) 130,225 Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) 180,325 International Bearer Circuits (per active 64KB circuit) 7 International Public Fixed (per call sign) (47 CFR part 23) 410 International (HF) Broadcast (47 CFR part 73) 520 RADIO STATION REGULATORY FEES Population Served AM Class A AM Class B AM Class C AM Class D FM Classes A, B1 & C3 FM Classes B, C, C1 & C2 <=20,000 430 325 225 275 325 430 20,001 - 50,000 825 650 325 450 650 825 50.001 - 125,000 1,350 875 450 675 875 1,350 125,001 - 400,000 2,000 1,400 675 825 1,400 2,000 400,001 - 1,000,000 2,750 2,250 1,250 1,500 2,250 2,750 >1,000,000 4,400 3,600 1,750 2,250 3,600 4,400 Attachment E COMPARISON BETWEEN FY 1998 & FY 1999 PROPOSED REGULATORY FEES Fee Category Annual Regulatory Fee FY 1998 NPRM Proposed Fee FY 1999 Annual Regulatory Fee FY 1999 PMRS (per license) (Formerly Land Mobile-Exclusive Use at 220-222 Mhz, above 470 Mhz, Base Station and SMRS) (47 CFR part 90) 12 13 Microwave (per license) (47 CFR part 101) 12 13 Interactive Video Data Service (per license) (47 CFR part 95) No Fee No Fee Marine (Ship) (per station) (47 CFR part 80) 6 7 Marine (Coast) (per license) (47 CFR part 80) 6 7 General Mobile Radio Service (per license) (47 CFR part 95) 6 7 Land Mobile (per license) (all stations not covered by PMRS and CMRS) 6 7 Aviation (Aircraft) (per station) (47 CFR part 87) 6 7 Aviation (Ground) (per license) (47 CFR part 87) 6 7 Amateur Vanity Call Signs (per call sign) (47 CFR part 97) 1.30 1.42 CMRS Mobile Services (per unit) (47 CFR parts 20, 22, 24, 80 and 90) .29 .32 CMRS Messaging Services [formerly One Way Paging] (per unit) (47 CFR parts 20, 22, and 90) .04 .04 Multipoint Distribution Services (per call sign) (47 CFR part 21) 260 285 AM Construction Permits 235 255 FM Construction Permits 1,150 1,250 TV (47 CFR part 73) VHF Commercial Markets 1-10 37,575 41,125 Markets 11-25 31,275 34,225 Markets 26-50 21,400 23,425 Markets 51-100 11,975 13,100 Remaining Markets 3,100 3,400 Construction Permits 2,525 2,775 TV (47 CFR part 73) UHF Commercial Markets 1-10 14,175 15,500 Markets 11-25 10,725 11,725 Markets 26-50 6,650 7,275 Markets 51-100 3,975 4,350 Remaining Markets 1,075 1,175 Construction Permits 2,650 2,900 Satellite Television Stations (All Markets) 1,175 1,275 Construction Permits - Satellite Television Stations 420 460 Low Power TV, TV/FM Translators & Boosters (47 CFR part 74) 265 290 Broadcast Auxiliary (47 CFR part 74) 11 12 Cable Antenna Relay Service (47 CFR part 78) 50 55 Earth Stations (47 CFR part 25) 165 180 Cable Television Systems (per subscriber) (47 CFR part 76) .44 .48 Interstate Telephone Service Providers (per revenue dollar) .0011 .0012 Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes Direct Broadcast Satellite Service (per operational station) ( 47 CFR part 100) 119,000 130,225 Space Stations (per operational system in non- geostationary orbit) (47 CFR part 25) 164,800 180,325 International Bearer Circuits (per active 64KB circuit) 6 7 International Public Fixed (per call sign) (47 CFR part 23) 375 410 International (HF) Broadcast (47 CFR part 73) 475 520 FY 1998 RADIO STATION REGULATORY FEES Population Served AM Class A AM Class B AM Class C AM Class D FM Classes A, B1 & C3 FM Classes B, C, C1 & C2 <=20,000 400 300 200 250 300 400 20,001 - 50,000 750 600 300 400 600 750 50.001 - 125,000 1,250 800 400 600 800 1,250 125,001 - 400,000 1,750 1,250 600 750 1,250 1,750 400,001 - 1,000,000 2,500 2,000 1,000 1,250 2,000 2,500 >1,000,000 4,000 3,250 1,500 2,000 3,250 4,000 FY 1999 RADIO STATION REGULATORY FEES Population Served AM Class A AM Class B AM Class C AM Class D FM Classes A, B1 & C3 FM Classes B, C, C1 & C2 <=20,000 430 325 225 275 325 430 20,001 - 50,000 825 650 325 450 650 825 50.001 - 125,000 1,350 875 450 675 875 1,350 125,001 - 400,000 2,000 1,400 675 825 1,400 2,000 400,001 - 1,000,000 2,750 2,250 1,250 1,500 2,250 2,750 >1,000,000 4,400 3,600 1,750 2,200 3,600 4,400 Attachment F 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, as modified in the instant NPRM. 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, 1997, and 1998 and the services subject to the fee schedule. 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. 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 501 of the Internal Revenue Code or the certification of a governmental authority attesting to its nonprofit status. The governmental exemption applies even where the government-owned or community-owned 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. 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) : 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 220-222 MHz band and frequencies at 470 MHz and above, may be offered on a private carrier basis in the Specialized Mobile Radio Services (SMRS). For FY 1999, PMRS licensees will pay a $13 annual regulatory fee per license, payable for an entire five or ten year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is either $65 for a license with a five year term or $130 for a license with a 10 year term. 5. Microwave Services: These services include private and commercial microwave systems and private and commercial carrier systems authorized under part 101 of the Commission's Rules to provide telecommunications services between fixed points on a high quality channel of communications. Microwave systems are often used to relay data and to control railroad, pipeline, and utility equipment. Commercial systems typically are used for video or data transmission or distribution. For FY 1999, Microwave licensees will pay a $13 annual regulatory fee per license, payable for an entire ten year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $130 for the ten year license term. 6. Interactive Video Data Service (IVDS): The IVDS is a two-way, point-to-multi-point radio service allocated high quality channels of communications and authorized under part 95 of the Commission's Rules. The IVDS provides information, products, and services, and also the capability to obtain responses from subscribers in a specific service area. The IVDS is offered on a private carrier basis. The Commission does not anticipate receiving any applications in the IVDS during FY 1999. Therefore, for FY 1999, there is no regulatory fee for IVDS licensees. b. Shared Use Services 7. Marine (Ship) Service: This service is a shipboard radio service authorized under part 80 of the Commission's Rules to provide telecommunications between watercraft or between watercraft and shore-based stations. Radio installations are required by domestic and international law for large passenger or cargo vessels. Radio equipment may be voluntarily installed on smaller vessels, such as recreational boats. The Telecommunications Act of 1996 gave the Commission the authority to license certain ship stations by rule rather than by individual license. The Commission exercises that authority. Thus, private boat operators sailing entirely within domestic U.S. waters and who are not otherwise required by treaty or agreement to carry a radio, are no longer required to hold a marine license, and they will not be required to pay a regulatory fee. For FY 1999, parties required to be licensed and those choosing to be licensed for Marine (Ship) Stations will pay a $7 annual regulatory fee per station, payable for an entire ten-year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $70 for the ten year license term. 8. Marine (Coast) Service: This service includes land-based stations in the maritime services, authorized under part 80 of the Commission's Rules, to provide communications services to ships and other watercraft in coastal and inland waterways. For FY 1999, licensees of Marine (Coast) Stations will pay a $7 annual regulatory fee per call sign, payable for the entire five-year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $35 per call sign for the five-year license term. 9. Private Land Mobile (Other) Services: These services include Land Mobile Radio Services operating under parts 90 and 95 of the Commission's Rules. Services in this category provide one- or two-way communications between vehicles, persons or fixed stations on a shared basis and include radiolocation services, industrial radio services, and land transportation radio services. For FY 1999, licensees of services in this category will pay a $7 annual regulatory fee per call sign, payable for an entire five-year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $35 for the five-year license term. 10. Aviation (Aircraft) Service: These services include stations authorized to provide communications between aircraft and between aircraft and ground stations and include frequencies used to communicate with air traffic control facilities pursuant to part 87 of the Commission's Rules. The Telecommunications Act of 1996 gave the Commission the authority to license certain aircraft radio stations by rule rather than by individual license. The commission exercises that authority. Thus, private aircraft operators flying entirely within domestic U.S. airspace and who are not otherwise required by treaty or agreement to carry a radio are no longer required to hold an aircraft license, and they will not be required to pay a regulatory fee. For FY 1999, parties required to be licensed and those choosing to be licensed for Aviation (Aircraft) Stations will pay a $7 annual regulatory fee per station, payable for the entire ten-year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $70 per station for the ten-year license term. 11. Aviation (Ground) Service: This service includes stations authorized to provide ground-based communications to aircraft for weather or landing information, or for logistical support pursuant to part 87 of the Commission's Rules. Certain ground-based stations which only serve itinerant traffic, i.e., possess no actual units on which to assess a fee, are exempt from payment of regulatory fees. For FY 1999, licensees of Aviation (Ground) Stations will pay a $7 annual regulatory fee per license, payable for the entire five-year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee is $35 per call sign for the five-year license term. 12. General Mobile Radio Service (GMRS): These services include Land Mobile Radio licensees providing personal and limited business communications between vehicles or to fixed stations for short-range, two-way communications pursuant to part 95 of the Commission's Rules. For FY 1999, GMRS licensees will pay a $7 annual regulatory fee per license, payable for an entire five-year license term at the time of application for a new, renewal or reinstatement license. The total regulatory fee due is $35 per license for the five-year license term. c. Amateur Radio Vanity Call Signs 13. Amateur Vanity Call Signs: This category covers voluntary requests for specific call signs in the Amateur Radio Service authorized under part 97 of the Commission's Rules. Applicants for Amateur Vanity Call-Signs will continue to pay a $1.30 annual regulatory fee per call sign, as prescribed in the FY 1998 fee schedule, payable for an entire ten-year license term at the time of application for a vanity call sign until the FY 1999 fee schedule becomes effective. The total regulatory fee due would be $13 per license for the ten-year license term. For FY 1999, Amateur Vanity Call Sign applicants will pay a $1.42 annual regulatory fee per call sign, payable for an entire ten-year term at the time of application for a new, renewal or reinstatement license. The total regulatory fee due is $14.20 per call sign for the ten-year license term. We propose that there will be no refunds to applicants who submit applications before implementation of the FY 1999 fee. d. Commercial Wireless Radio Services 14. Commercial Mobile Radio Services (CMRS) Mobile Services: The Commercial Mobile Radio Service (CMRS) is an "umbrella" descriptive term attributed to various existing broadband services authorized to provide interconnected mobile radio services for profit to the public, or to such classes of eligible users as to be effectively available to a substantial portion of the public. CMRS Mobile Services include certain licensees which formerly were licensed as part of the Private Radio Services (e.g., Specialized Mobile Radio Services) and others formerly licensed as part of the Common Carrier Radio Services (e.g., Public Mobile Services and Cellular Radio Service). While specific rules pertaining to each covered service remain in separate parts 22, 24, 27, 80 and 90, general rules for CMRS are contained in part 20. CMRS Mobile Services will include: Specialized Mobile Radio Services (part 90); Broadband Personal Communications Services (part 24), Public Coast Stations (part 80); Public Mobile Radio (Cellular, 800 MHz Air-Ground Radiotelephone, and Offshore Radio Services) (part 22); and Wireless Communications Service (part 27). Each licensee in this group will pay an annual regulatory fee for each mobile or cellular unit (mobile or telephone number), assigned to its customers, including resellers of its services. For FY 1999, the regulatory fee is $.32 per unit. 15. Commercial Mobile Radio Services (CMRS) Messaging Services: The Commercial Mobile Radio Service (CMRS) is an "umbrella" descriptive term attributed to various existing narrowband services authorized to provide interconnected mobile radio services for profit to the public, or to such classes of eligible users as to be effectively available to a substantial portion of the public. CMRS Messaging Services include certain licensees which formerly were licensed as part of the Private Radio Services (e.g., Private Paging and Radiotelephone Service), licensees formerly licensed as part of the Common Carrier Radio Services (e.g., Public Mobile One-Way Paging), licensees of Narrowband Personal Communications Service (PCS) (e.g., one- way and two-way paging), and 220-222 MHz Band and Interconnected Business Radio Service. While specific rules pertaining to each covered service remain in separate parts 22, 24 and 90, general rules for CMRS are contained in part 20. Each licensee in the CMRS Messaging Services will pay an annual regulatory fee for each unit (pager, telephone number, or mobile) assigned to its customers, including resellers of its services. For FY 1999, the regulatory fee is $.04 per unit. 16. Finally, we are reiterating our definition of CMRS payment units to make it clear that fees are assessable on each PCS or cellular telephone and each one-way or two-way pager capable of receiving or transmitting information, whether or not the unit is "active" on the "as-of" date for payment of these fees. The unit becomes "feeable" if the end user or assignee of the unit has possession of the unit and the unit is capable of transmitting or receiving voice or non-voice messages or data and the unit is either owned and operated by the licensee of the CMRS system or a reseller, or the end user of a unit has a contractual agreement for the provision of a CMRS service from a licensee of a CMRS system or a reseller of a CMRS service. The responsible payer of the regulatory fee is the CMRS licensee. For example, John Doe purchases a pager and contractually obtains paging services from Paging Licensee X. Paging Licensee X is responsible for paying the applicable regulatory fee for this unit. Likewise, Cellular Licensee Y donates cellular phones to a high school and the high school either pays for or obtains free cellular service from Cellular Licensee Y. In this situation, Cellular Licensee Y is responsible for paying the applicable regulatory fees for these units. 2. Mass Media Services 17. The regulatory fees for the Mass Media fee category apply to broadcast licensees and permittees. Noncommercial Educational Broadcasters are exempt from regulatory fees. a. Commercial Radio 18. These categories include licensed Commercial AM (Classes A, B, C, and D) and FM (Classes A, B, B1, C, C1, C2, and C3) Radio Stations operating under part 73 of the Commission's Rules. We have combined class of station and city grade contour population data to formulate a schedule of radio fees which differentiate between stations based on class of station and population served. In general, higher class stations and stations in metropolitan areas will pay higher fees than lower class stations and stations located in rural areas. The specific fee that a station must pay is determined by where it ranks after weighting its fee requirement (determined by class of station) with its population. The regulatory fee classifications for Radio Stations for FY 1999 are as follows: FY 1999 RADIO STATION REGULATORY FEES Population Served AM Class A AM Class B AM Class C AM Class D FM Classes A, B1 & C3 FM Classes B, C, C1 & C2 <=20,000 430 325 225 275 325 430 20,001 - 50,000 825 650 325 450 650 825 50.001 - 125,000 1,350 875 450 675 875 1,350 125,001 - 400,000 2,000 1,400 675 825 1,400 2,000 400,001 - 1,000,000 2,750 2,250 1,250 1,500 2,250 2,750 >1,000,000 4,400 3,600 1,750 2,250 3,600 4,400 19. Licensees may determine the appropriate fee payment by referring to a list which will be provided as an attachment to the final Report and Order in this proceeding. 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 (1-888-225- 5322), and may be included in the Public Notices mailed to each licensee for which we have a current address on file (Note: Non-receipt of a Public Notice does not relieve a licensee of its obligation to submit its regulatory fee payment).. b. Construction Permits - Commercial AM Radio 20. This category includes holders of permits to construct new Commercial AM Stations. For FY 1999, permittees will pay a fee of $255 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 group within which the station appears. c. Construction Permits - Commercial FM Radio 21. This category includes holders of permits to construct new Commercial FM Stations. For FY 1999, permittees will pay a fee of $1,250 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 group within which the station appears. 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. 67, 1999 Edition, Warren Publishing, Inc. The fees for each category of station are as follows: VHF Markets 1-10...............$41,125 VHF Markets 11-25...............34,225 VHF Markets 26-50...............23,425 VHF Markets 51-100.............13,100 VHF Remaining Markets..........3,400 UHF Markets 1-10...............$15,500 UHF Markets 11-25...............11,725 UHF Markets 26-50.................7,275 UHF Markets 51-100...............4,350 UHF Remaining Markets..........1,175 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 $1,275 annually. Those stations designated as Television Satellite Stations in the 1999 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 1999, VHF permittees will pay an annual regulatory fee of $2,775. 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 1999, UHF Television permittees will pay an annual regulatory fee of $2,900. 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 - Satellite Television Stations 26. The fee for UHF and VHF Television Satellite Station construction permits for FY 1999 is $460. 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 1999, licensees in low power television, FM translator and booster, and TV translator and booster category will pay a regulatory fee of $290 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 Inter-City 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 paragraph 26 infra). For FY 1999, licensees of Commercial Auxiliary Stations will pay an $12 annual regulatory fee on a per call sign basis. k. Multipoint Distribution Service 29. This category includes Multipoint Distribution Service (MDS), Local Multipoint Distribution (LMDS), 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 1999, MDS, LMDS, and MMDS stations will pay an annual regulatory fee of $285 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 1999, Cable Systems will pay a regulatory fee of $.48 per subscriber. Payments for Cable Systems are to be made on a per subscriber basis as of December 31, 1998. Cable Systems should determine their subscriber numbers by calculating the number of single family dwellings, the number of individual households in multiple dwelling units, e.g., apartments, condominiums, mobile home parks, etc., paying at the basic subscriber rate, the number of bulk rate customers and the number of courtesy or fee customers. In order to determine the number of bulk rate subscribers, a system should divide its bulk rate charge by the annual subscription rate for individual households. See FY 1994 Report and Order, Appendix B at paragraph 31. b. Cable Antenna Relay Service 31. This category includes Cable Antenna Relay Service (CARS) stations used to transmit television and related audio signals, signals of AM and FM Broadcast Stations, and cablecasting from the point of reception to a terminal point from where the signals are distributed to the public by a Cable Television System. For FY 1999, licensees will pay an annual regulatory fee of $55 per CARS license. 4. Common Carrier Services a. Commercial Microwave (Domestic Public Fixed Radio Service) 32. This category includes licensees in the Point-to-Point Microwave Radio Service, Local Television Transmission Radio Service, and Digital Electronic Message Service, authorized under part 101 of the Commission's Rules to use microwave frequencies for video and data distribution within the United States. These services are now included in the Microwave category (see paragraph 5 infra). b. Interstate Telephone Service Providers 33. This category includes Inter-Exchange Carriers (IXCs), Local Exchange Carriers (LECs), Competitive Access Providers (CAPs), domestic and international carriers that provide operator services, Wide Area Telephone Service (WATS), 800, 900, telex, telegraph, video, other switched, interstate access, special access, and alternative access services either by using their own facilities or by reselling facilities and services of other carriers or telephone carrier holding companies, and companies other than traditional local telephone companies that provide interstate access services to long distance carriers and other customers. This category also includes pre-paid calling card providers. These common carriers, including resellers, must submit fee payments based upon their proportionate share of gross interstate revenues using the methodology that we have adopted for calculating contributions to the TRS fund. In order to avoid imposing any double payment burden on resellers, we will permit carriers to subtract from their gross interstate revenues, as reported to NECA in connection with their TRS contribution, any payments made to underlying common carriers for telecommunications facilities and services, including payments for interstate access service, that are sold in the form of interstate service. For this purpose, resold telecommunications facilities and services are only intended to include payments that correspond to revenues that will be included by another carrier reporting interstate revenue. For FY 1999, carriers must multiply their adjusted gross revenue figure (gross revenue reduced by the total amount of their payments to underlying common carriers for telecommunications facilities or services) by the factor 0.0012 to determine the appropriate fee for this category of service. Regulatees may want to use the following worksheet to determine their fee payment: TOTAL INTERSTATE (1) Revenue reported in TRS Fund worksheets (2) Less: Access charges paid (3) Less: Other telecommunications facilities and services taken for resale (4) Adjusted revenues (1)minus(2)minus(3) (5) Fee factor 0.0012 (6) Fee due (4)times(5) 5. International Services a. Earth Stations 34. Very Small Aperture Terminal (VSAT) Earth Stations, equivalent C-Band Earth Stations and antennas, and earth station systems comprised of very small aperture terminals operate in the 12 and 14 GHz bands and provide a variety of communications services to other stations in the network. VSAT systems consist of a network of technically-identical small Fixed-Satellite Earth Stations which often include a larger hub station. VSAT Earth Stations and C-Band Equivalent Earth Stations are authorized pursuant to part 25 of the Commission's Rules. Mobile Satellite Earth Stations, operating pursuant to part 25 of the Commission's Rules under blanket licenses for mobile antennas (transceivers), are smaller than one meter and provide voice or data communications, including position location information for mobile platforms such as cars, buses, or trucks. Fixed-Satellite Transmit/Receive and Transmit-Only Earth Station antennas, authorized or registered under part 25 of the Commission's Rules, are operated by private and public carriers to provide telephone, television, data, and other forms of communications. Included in this category are telemetry, tracking and control (TT&C) earth stations, and earth station uplinks. For FY 1999, licensees of VSATs, Mobile Satellite Earth Stations, and Fixed-Satellite Transmit/Receive and Transmit-Only Earth Stations will pay a fee of $180 per authorization or registration as well as a separate fee of $180 for each associated Hub Station. 35. Receive-only earth stations. For FY 1999, there is no regulatory fee for receive-only earth stations. b. Space Stations (Geostationary Orbit) 36. Geostationary Orbit (also referred to as Geosynchronous) Space Stations are domestic and international satellites positioned in orbit to remain approximately fixed relative to the earth. Most are authorized under part 25 of the Commission's Rules to provide communications between satellites and earth stations on a common carrier and/or private carrier basis. In addition, this category includes Direct Broadcast Satellite (DBS) Service which includes space stations authorized under part 100 of the Commission's rules to transmit or re-transmit signals for direct reception by the general public encompassing both individual and community reception. For FY 1999, entities authorized to operate geostationary space stations (including DBS satellites) will be assessed an annual regulatory fee of $130,225 per operational station in orbit. Payment is required for any geostationary satellite that has been launched and tested and is authorized to provide service. c. Space Stations (Non-Geostationary Orbit) 37. Non-Geostationary Orbit Systems (such as Low Earth Orbit (LEO) Systems) are space stations that orbit the earth in non-geosynchronous orbit. They are authorized under part 25 of the Commission's rules to provide communications between satellites and earth stations on a common carrier and/or private carrier basis. For FY 1999, entities authorized to operate Non-Geostationary Orbit Systems (NGSOs) will be assessed an annual regulatory fee of $180,325 per operational system in orbit. Payment is required for any NGSO System that has one or more operational satellites operational. In our FY 1997 Report and Order at paragraph 75 we retained our requirement that licensees of LEOs pay the LEO regulatory fee upon their certification of operation of a single satellite pursuant to section 25.120(d). We require payment of this fee following commencement of operations of a system's first satellite to insure that we recover our regulatory costs related to LEO systems from licensees of these systems as early as possible so that other regulatees are not burdened with these costs any longer than necessary. Because section 25.120(d) has significant implications beyond regulatory fees (such as whether the entire planned cluster is operational in accordance with the terms and conditions of the license) we are clarifying our current definition of an operational LEO satellite to prevent misinterpretation of our intent as follows: Licensees of Non-Geostationary Satellite Systems (such as LEOs) are assessed a regulatory fee upon the commencement of operation of a system's first satellite as reported annually pursuant to sections 25.142(c), 25.143(e), 25.145(g), or upon certification of operation of a single satellite pursuant to section 25.120(d). d. International Bearer Circuits 38 Regulatory fees for International Bearer Circuits are to be paid by facilities-based common carriers (either domestic or international) activating the circuit in any transmission facility for the provision of service to an end user or resale carrier. Payment of the fee for bearer circuits by non-common carrier submarine cable operators is required for circuits sold on an indefeasible right of use (IRU) basis or leased to any customer, including themselves or their affiliates, other than an international common carrier authorized by the Commission to provide U.S. international common carrier services. Compare FY 1994 Report and Order at 5367. Payment of the international bearer circuit fee is also required by non-common carrier satellite operators for circuits sold or leased to any customer, including themselves or their affiliates, other than an international common carrier authorized by the Commission to provide U.S. international common carrier services. The fee is based upon active 64 kbps circuits, or equivalent circuits. Under this formulation, 64 kbps circuits or their equivalent will be assessed a fee. Equivalent circuits include the 64 kbps circuit equivalent of larger bit stream circuits. For example, the 64 kbps circuit equivalent of a 2.048 Mbps circuit is 30 64 kbps circuits. Analog circuits such as 3 and 4 kHz circuits used for international service are also included as 64 kbps circuits. However, circuits derived from 64 kbps circuits by the use of digital circuit multiplication systems are not equivalent 64 kbps circuits. Such circuits are not subject to fees. Only the 64 kbps circuit from which they have been derived will be subject to payment of a fee. For FY 1999, the regulatory fee is $7.00 for each active 64 kbps circuit or equivalent. For analog television channels we will assess fees as follows: Analog Television Channel No. of equivalent 64 kbps Circuits Size in MHz 36......................................................................... 630 24......................................................................... 288 18.......................................................................... 240 e. International Public Fixed 39. This fee category includes common carriers authorized under part 23 of the Commission's Rules to provide radio communications between the United States and a foreign point via microwave or HF troposcatter systems, other than satellites and satellite earth stations, but not including service between the United States and Mexico and the United States and Canada using frequencies above 72 MHz. For FY 1999, International Public Fixed Radio Service licensees will pay a $410 annual regulatory fee per call sign. f. International (HF) Broadcast 40. This category covers International Broadcast Stations licensed under part 73 of the Commission's Rules to operate on frequencies in the 5,950 kHz to 26,100 kHz range to provide service to the general public in foreign countries. For FY 1999, International HF Broadcast Stations will pay an annual regulatory fee of $520 per station license. Attachment G Description of FCC Activities Authorization of Service: The authorization or licensing of radio stations, telecommunications equipment, and radio operators, as well as the authorization of common carrier and other services and facilities. Includes policy direction, program development, legal services, and executive direction, as well as support services associated with authorization activities. Policy and Rulemaking: Formal inquiries, rulemaking proceedings to establish or amend the Commission's rules and regulations, action on petitions for rulemaking, and requests for rule interpretations or waivers; economic studies and analyses; spectrum planning, modeling, propagation-interference analyses, and allocation; and development of equipment standards. Includes policy direction, program development, legal services, and executive direction, as well as support services associated with policy and rulemaking activities. Enforcement: Enforcement of the Commission's rules, regulations and authorizations, including investigations, inspections, compliance monitoring, and sanctions of all types. Also includes the receipt and disposition of formal and informal complaints regarding common carrier rates and services, the review and acceptance/rejection of carrier tariffs, and the review, prescription and audit of carrier accounting practices. Includes policy direction, program development, legal services, and executive direction, as well as support services associated with enforcement activities. Public Information Services: The publication and dissemination of Commission decisions and actions, and related activities; public reference and library services; the duplication and dissemination of Commission records and databases; the receipt and disposition of public inquiries; consumer, small business, and public assistance; and public affairs and media relations. Includes policy direction, program development, legal services, and executive direction, as well as support services associated with public information activities. Attachment H Factors, measurements and calculations that go into determining station signal contours and associated population coverages AM Stations Specific information on each day tower, including field ratio, phasing, spacing and orientation was retrieved, as well as the theoretical pattern RMS figure (mV/m @ 1 km) for the antenna system. The standard, or modified standard if pertinent, horizontal plane radiation pattern was calculated using techniques and methods specified in sections 73.150 and 73.152 of the Commission's rules. Radiation values were calculated for each of 72 radials around the transmitter site (every 5 degrees of azimuth). Next, estimated soil conductivity data was retrieved from a database representing the information in FCC Figure M3. Using the calculated horizontal radiation values, and the retrieved soil conductivity data, the distance to the city grade (5 mV/m) contour was predicted for each of the 72 radials. The resulting distance to city grade contours were used to form a geographical polygon. Population counting was accomplished by determining which 1990 block centroids were contained in the polygon. The sum of the population figures for all enclosed blocks represents the total population for the predicted city grade coverage area. FM Stations The maximum of the horizontal and vertical HAAT (m) and ERP (kW) was used. Where the antenna HAMSL was available, it was used in lieu of the overall HAAT figure to calculate specific HAAT figures for each of 72 radials under study. Any available directional pattern information was applied as well, to produce a radial- specific ERP figure. The HAAT and ERP figures were used in conjunction with the propagation curves specified in section 73.313 of the Commission's rules to predict the distance to the city grade (70 dBuV/m or 3.17 mV/m) contour for each of the 72 radials. The resulting distance to city grade contours were used to form a geographical polygon. Population counting was accomplished by determining which 1990 block centroids were contained in the polygon. The sum of the population figures for all enclosed blocks represents the total population for the predicted city grade coverage area.