Assessment and Collection of Regulatory Fees For Fiscal Year 1995

Federal RegisterJan 19, 1995

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Chapter I

[MD Docket No. 95-3; FCC 95-14]

Assessment and Collection of Regulatory Fees For Fiscal Year 1995

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rule making.

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SUMMARY: The Commission is proposing 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 1995. Section 9 of

the Communications Act of 1934, as amended, provides for the annual

assessment and collection of regulatory fees. For fiscal year 1995

sections 9(b) (2) and (3) provide for annual ``Mandatory Adjustments''

and ``Permitted Amendments'' to the Schedule of Regulatory Fees. The

proposed revisions will further the National Performance Review goals

of reinventing Government by requiring beneficiaries of Commission

services to pay for such services.

DATES: Comments must be filed on or before February 13, 1995 and reply

comments must be filed on or before February 28, 1995.

FOR FURTHER INFORMATION CONTACT:

Peter W. Herrick, Office of Managing Director at (202) 418-0443, or

Terry D. Johnson, Office of Managing Director at (202) 418-0445.

SUPPLEMENTARY INFORMATION:

In the Matter of Assessment and Collection of Regulatory Fees for

Fiscal Year 1995; Notice of Proposed Rulemaking

[MD Docket No. 95-3]

Adopted: January 10, 1995; Released: January 12, 1995

Comment Date: February 13, 1995

Reply Date: February 28, 1995

By the Commission:

Table of Contents

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Paragraph

Topic numbers

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I. Introduction................................................................................... 1-3

II. Background.................................................................................... 4-7

III. Discussion................................................................................... 8-54

A. Proposed FY 1995 Regulatory Fees........................................................... 8-62

1. Private Radio Services................................................................. 15-26

a. Exclusive Use Services............................................................. 17-19

b. Shared Use Services................................................................ 20-26

c. Amateur Radio Vanity Call-Signs.................................................... 27

2. Mass Media Services.................................................................... 28-40

a. Commercial AM and FM Radio Stations................................................ 29

b. Construction Permits--Commercial AM Radio.......................................... 30

c. Construction Permits--Commercial FM Radio.......................................... 31

d. Commercial Television Stations..................................................... 32

e. Commercial Television Satellite Stations........................................... 33

f. Construction Permits--Commercial VHF Television Stations........................... 34

g. Construction Permits--Commercial UHF Television Stations........................... 35

h. Construction Permits--Commercial Television Satellite Stations..................... 36

i. Low Power Television, Translator and Booster Stations.............................. 37

j. Broadcast Auxiliary Stations....................................................... 38

k. International HF Broadcast (Short Wave)............................................ 39

3. Cable Services......................................................................... 40-43

a. Cable Television Systems........................................................... 40-41

b. Cable Antenna Relay Service........................................................ 42

4. Common Carrier Services................................................................ 43-61

a. Mobile Services.................................................................... 43-44

b. Fixed Radio Stations............................................................... 45-46

c. VSATs and Equivalent C-Band Antennas/Mobile Satellite Earth Stations............... 47-48

d. Fixed Satellite Earth Station Antennas............................................. 49-52

e. Space Stations (Geosynchronous).................................................... 53

f. International Bearer Circuits...................................................... 54

g. Inter-exchange and Local Exchange, Competitive Access Providers and Resellers...... 55-61

B. Procedures for Payment of Regulatory Fees................................................. 62-68

1. Annual Payments of Standard Fees....................................................... 63

2. Installment Payments for Large Fees.................................................... 64-65

3. Advance Payments of Small Fees......................................................... 66

4. Timing of Standard Fee Calculations and Payments....................................... 67-68

IV. Procedural Matters............................................................................ 69-73

A. Comment Period............................................................................. 69

B. Ex Parte Rules............................................................................. 70

C. Initial Regulatory Flexibility Analysis.................................................... 71

D. Authority and Further Information.......................................................... 71-72

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Appendix A--Initial Regulatory Flexibility Analysis

Appendix B--Schedule of Regulatory Fees

Appendix C--Allocation of FTEs to the Bureaus

Appendix D--Development of Private Radio Services Regulatory Fees

Appendix E--Development of Mass Media Services Regulatory Fees

Appendix F--Development of Cable Services Regulatory Fees

Appendix G--Development of Common Carrier Services Regulatory Fees

I. Introduction

1. By this Notice of Proposed Rulemaking, the Commission begins a

proceeding to revise its Schedule of Regulatory Fees in order to

recover the amount of regulatory fees that Congress, pursuant to

section 9 of the Communications Act, has required it to collect for

Fiscal Year 1995 (FY 1995). See 47 U.S.C. 159(b)(2). The current

Schedule is set forth in Secs. 1.1152 through 1.1155 of the

Commission's rules. 47 CFR Secs. 1.1152-1.1155.

2. We are proposing adjustments to the Schedule in order to recover

$116,400,000 in costs, consistent with the amount that Congress has

appropriated for our enforcement, policy and rulemaking and

international activities and user information services for FY 1995.\1\

47 U.S.C. 159(a). In addition, we propose to amend the Schedule to

assess regulatory fees from licensees of services not now included in

the Schedule and to revise our method of assessing fees for certain

services currently in the Schedule. 47 U.S.C. 159(b)(1)(A), (b)(3).

Further, we propose to amend the format of the Schedule so that its fee

categories reflect changes in the Commission's new organizational

structure.\2\ 47 U.S.C. 159(b)(3). Finally, we propose to adjust the

threshold amounts for eligibility for installment payments and to amend

our procedures governing installment payments. 47 U.S.C. 159(f)(1).

\1\See Public Law 103-317, 108 Stat. 1724 at 1737-38 (Approved

August 26, 1994).

\2\Specifically, we propose to add to the Schedule a Wireless

Radio Services fee category and an International Services fee

category. Concurrently, we propose to delete the Private Radio

Service fee category since we have abolished the Private Radio

Bureau. Also, we proposed to amend the Common Carrier Service fee

category and the Mass Media Service fee category because certain

services formerly subject to regulation by the Common Carrier Bureau

and the Mass Media Bureau are now regulated by the Wireless Radio

Bureau and the International Bureau and are, thus, properly within

the scope of the Wireless Radio and International Service fee

categories. Finally, we propose to add the Multipoint Distribution

Service (MDS) and Multichannel Multipoint Distribution Service

(MMDS) to the Mass Media Service fee category, and delete them from

the Common Carrier Service fee category, since these services are

now regulated by the Mass Media Bureau.

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3. In many instances, the regulatory fees that we are proposing for

FY 1995 are significantly higher than the fees that we assessed under

the statutory fee schedule to recover our regulatory costs for FY 1994.

See 47 U.S.C. 159(g); see also Implementation of Section 9 of the

Communications Act (FY 1994 Order), 9 FCC Rcd 5333 (1994). These

revisions result, in large part, from increases in the amounts that

Congress has appropriated for Commission activities whose costs must be

recovered through regulatory fees. As noted, the amount appropriated

and to be recovered through regulatory fees is $116,400,000, which is

93 percent more than the $60,400,000 that the Commission was required

to recover through regulatory fees in FY 1994. The impact of this

increase is, however, offset to some extent by revenues from services

that we propose to add to the Schedule and by increases in the number

of payment units, e.g., subscribers, in certain other services.\3\

Appendix B sets forth our proposed Schedule of Regulatory Fees for FY

1995.

\3\Payment units represent the number by which a payor must

multiply the fee amount for a particular service in order to

calculate its total fee due for the service. For example,

``subscribers'' is the payment unit applicable to cable television

fees. The number of subscribers is multiplied by the cable system

fee amount to determine the system's total fee liability.

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II. Background

4. Section 9(a) of the Act 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 activities, and user information

services. 47 U.S.C. 159(a). In our FY 1994 Order, we set forth the

regulatory fee schedule for FY 1994 and prescribed rules to govern

payment of the fees, as required by Congress.\4\ 47 U.S.C. 159(f)(1).

\4\See 47 CFR Secs. 1.1151 through 1.1166.

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5. For FY 1994, we adopted the Schedule of Regulatory Fees that

Congress enacted in section 9(g) of the Act, and required regulatory

fee payments from licensees and other regulatees operating in the

Private Radio, Mass Media, Common Carrier and Cable Television

services. We concluded that Congress did not intend for us to modify

section 9(g)'s Schedule of Regulatory Fees for FY 1994, and, thus,

declined to amend the statutory fee schedule in any way.\5\ See FY 1994

Order at para. 12.

\5\In the FY 1994 Order, we adopted rules to implement the

collection of regulatory fees, including payment procedures,

specific exemptions from the payment of regulatory fees, procedures

for requesting waivers, reductions and deferments of fee payments,

and penalties for late payment or non-payment of the fees. We shall

in the near future address petitions for reconsideration of the FY

1994 Order and consider whether to make amendments to our

implementing rules.

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6. For fiscal years after FY 1994, however, sections 9(b) (2) and

(3) provide for annual ``Mandatory Adjustments'' and ``Permitted

Amendments'' to the Schedule of Regulatory Fees. In making section

9(b)(2)'s mandatory adjustments, we are first to consider the amount we

are to collect as set forth in our Appropriations Act. 47 U.S.C.

Secs. 159(b)(2), (b)(1)(B). Second, we are to identify the number of

Full Time Equivalent (FTE) employees allocated to our enforcement,

policy and rulemaking, user information and international

activities.\6\ 47 U.S.C. Sec. 159(b)(1)(A). 159(b)(1)(A). Third, we are

to determine the amount to be recovered from each fee category, e.g.,

Common Carrier, by proportionately increasing or decreasing the revenue

requirement of each fee category relative to the ratio of FTEs in each

category to the total number of FTEs allocated to our regulatory

activities. 47 U.S.C. Sec. 159(b)(2) The resulting fee category share

of the total amount to be recovered is then prorated among each service

within the fee category to determine the cost allocation applicable to

each service. Finally, the prorated cost allocation is divided by the

number of estimated payment units, e.g., subscribers, for each service

within the category in order to determine service fees. 47 U.S.C.

Sec. (b)(2)(A).

\6\Full Time Equivalent (FTE) employment is the total number of

regular straight-time hours (i.e., not including overtime or holiday

hours) worked by employees divided by the number of compensable

hours applicable to each fiscal year. See Office of Management and

Budget Circular A-11, section 13.1, Definitions relating to

employment.

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7. In addition, section 9(b)(3), relating to ``Permitted

Amendments'' to the Schedule, provides that, if we find it necessary,

we shall amend the Schedule of Regulatory Fees, as provided in section

9(b)(1)(A) to, inter alia, reflect the benefits of our regulation to

the payors of the fees by considering their service areas, the nature

of their service, and other factors that we determine are necessary in

the public interest. 47 U.S.C. Secs. 159(b)(3), (b)(1)(A). In making

these amendments, we ``shall add, delete, or reclassify services in the

Schedule to reflect additions, deletions or changes in the nature of

its services.'' 47 U.S.C. Sec. 159(B)(3). Finally, we are required to

notify Congress of any permitted amendments 90 days before

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those amendments go into effect. 47 U.S.C. Sec. 159(b)(4)(B).

III. Discussion

A. Proposed FY 1995 Regulatory Fees

8. As noted above, Congress has required the recovery of

$116,400,000 for FY 1995 through the collection of regulatory fees

representing the costs applicable to our enforcement, policy and

rulemaking, international activities, and our user information

services. 47 U.S.C. Sec. 159(a).

9. In adjusting our regulatory fees pursuant to section 9(b)(2)'s

provisions for ``Mandatory Adjustments'', we first distributed our

directly assigned FY 1995 FTE's among our various regulatory

activities. We then allocated additional FTEs supporting the regulatory

fee activities to the Private Radio, Mass Media, Common Carrier, and

Cable Services Bureaus.\7\ Appendix C contains a more detailed

description of our allocation of FTEs by activity. The resulting

allocation of FTEs is as follows:

\7\The FTEs attributed to Private Radio, Mass Media, Common

Carrier, and Cable services activities are primarily performed

within those Bureaus. In addition, the Compliance and Information

Bureau (CIB), formerly the Field Operations Bureau, the Office of

Engineering and Technology (OET) and the Office of Managing Director

(OMD) perform activities supporting the Bureaus. FTEs assigned to

CIB, OET and some sections of OMD supporting the regulatory

activities of the Bureaus were attributed to the Bureaus' activities

in developing the total FTEs allocated to the activities whose costs

are to be recovered through regulatory fees.

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Percentage

FTEs ratio

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Private Radio...................................... 103 7.3

Mass Media......................................... 253 18.0

Common Carrier..................................... 689 49.0

Cable Services..................................... 361 25.7

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Total........................................ 1,406 100.00

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10. Next, we allocated our $116,400,000 revenue requirement to the

Private Radio, Mass Media, Common Carrier, and Cable Services

activities, based on the FTE percentage ratios shown above. For

example, to derive the amounts to be recovered from cable services, we

calculated that the 25.7 percent of total FTEs representing the 361

FTEs assigned to the cable services activity resulted in $29,824,911 to

be recovered through the collection of cable services fees.\8\ The

resulting allocation of costs by regulatory fee category was as

follows:

\8\We have rounded all percentages to the nearest one-tenth of a

percent.

Private Radio..................................... $8.5 million.

Mass Media........................................ 20.9 million.

Common Carrier.................................... 57.0 million.

Cable Services.................................... 29.9 million.

11. After determining the cost allocation, we estimated FY 1995

payee units for the individual services within each fee category. For

example, we estimated that there are approximately 57,000,000 payment

units for cable systems, i.e., cable subscribers. These estimates are

based upon information provided by Commission program managers and

supplemented by information contained in actual licensee data bases

maintained by the Commission, information provided by industry groups

or contained in trade publications, and actual data from FY 1994

regulatory fee collections. See Appendices D through G.

12. Next, in order to make the proportionate changes in the

statutory schedule of fees required by section 9(b)(2), we compared our

FY 1995 revenue requirement in each fee category, e.g., Cable Services,

with the total amount that would be collected from all of the services

within each category under the FY 1994 fee schedule. For example, we

estimated that approximately $21.5 million or $8.4 million less than

its FY 1995 revenue requirement, would be collected from cable system

payors based upon our FY 1994 fees. We pro-rated the difference in

these amounts to the individual services, e.g., cable systems were

allocated $29.9 million to be recovered, and then divided the revenue

requirement for each individual service by its estimated number of

payee units to derive our ``Mandatory Adjustments'' to the fee

schedule.

13. Following our calculation of the ``Mandatory Adjustments'' to

the fee schedule, we reviewed each service and its associated fee

payment to determine if the nature of a service or the public interest

warranted a fee adjustment pursuant to section 9(b)(3)'s requirements

for ``Permitted Amendments.'' Pursuant to our authority to make

permitted amendments to the fees, we are proposing to revise our method

for calculating fees for AM and FM radio stations, public mobile

service, including cellular service providers, competitive access

providers (CAPs), and small earth station antennas. Additionally, we

are proposing a separate fee for satellite television stations to

distinguish those stations from full service television stations and we

are proposing to add a fee requirement for licensees of FM translator

and booster stations. After making these proposed permitted amendments,

we propose to revise the remaining fees within the affected service's

category in order to take into account the impact of the fee

modification upon other services within the category. Finally, we

propose to combine certain services within a fee category having

analogous fee amounts, such as public mobile and cellular licenses, in

order to reduce the number of separate service categories and to

simplify the overall schedule of fees.\9\

\9\We have not proposed regulatory fees for the Personal

Communications Service (PCS), Commercial Mobile Radio Service

(CMRS), Low Earth Orbital (LEO) Satellite Service and the Direct

Broadcasting Satellite (DBS) Service because no facilities were

authorized on our proposed date for calculating fees, October 1,

1994, to operate in these services or such authorizations are so

recent that negligible portion of FTEs are assigned to these

services other than for application processing.

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14. In the following paragraphs, we describe our mandatory

adjustments and proposed permitted amendments to the Schedule of

Regulatory Fees on a service-by-service basis. The Commission proposes

to retain, for fee determination purposes, the fee classifications

(i.e., Private Radio, Common Carrier, Cable Services and Mass Media)

contained in 47 U.S.C. Section 159. Although we believe that we have

authority to change the classifications to align them more closely with

our current organizational structure, we want to minimize any adverse

impacts to the schedule brought about solely by such a classification

change. Although we have developed the fee amounts for FY 1995 based

upon the service categories in the statutory fee schedule, in order to

assist interested parties in locating particular fees, we have

formatted the FY 1995 Schedule of Fees to reflect our new

organizational structure. See Appendix B. With the exception of annual

fees in the amount of $5.00 or less, individual fee amounts have been

rounded to the nearest $5 in the case of fees under $1,000 or to the

nearest $25 in the case of fees of $1,000 or more in accordance with

section 9(b)(2). Appendices C through G describe the method in which

FTEs were assigned to the major service categories and the development

of the fees within each major service category.

1. Private Radio Services

15. Regulatory fees for services in the Private Radio category are

located in the Wireless Radio category of the proposed fee schedule. We

have developed our FY 1995 regulatory fees for Private Radio services

by making mandatory adjustments to their statutory fees that take into

account the quality of frequency allocated to those services.

[[Page 3810]]

See Appendix D. As a result, we are proposing to continue to assess two

levels of regulatory fees for these services, exclusive use services

and shared use services, on the basis of the quality of the

communications channel provided to the licensee. Our action here is

consistent with section 9's directive that fees take into account the

benefits provided to the payee of the fees and with the policy

reflected in the statutory schedule, which provides for higher fee

payments for exclusive use services within the Private Radio category

of services. See 47 U.S.C. 159(b)(1)(A), (g). Further, it is consistent

with the statutory fee schedule's formulation of fees for exclusive and

shared services.

16. We are proposing no change to the rules for calculating fee

payments and submitting regulatory fee payments for private radio

services. See FY 1994 Order, Appendix B at paras. 2-12. Rather, due to

the relatively small regulatory fees generally assessed for these

services, we propose to continue to require applicants for new,

reinstatement and renewal licenses in these services to submit the

entire regulatory fee for the full term of their requested license at

the time they file their license applications.\10\ See 47 U.S.C.

159(f)(1). Applicants for modification or assignment of an existing

authorization will not be required to submit a regulatory fee. However,

the expiration date of these authorizations will reflect only the

unexpired term of the underlying license rather than a new license

term.

\10\In the event that the subject application is not granted,

the entire regulatory fee submitted will be returned upon request of

the payor of the fee. See 47 C.F.R. Sec. 1.1159(a)(2)(iii).

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a. Exclusive Use

17. Land Mobile Services, set forth in the FY 1995 regulatory fee

schedule within the wireless radio service 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).

Our FY 1995 cost allocation to the Land Mobile Services fee category is

$462,455, resulting from the mandatory adjustment of its FY 1994

revenue requirement under the statutory fee schedule. Payment units for

Land Mobile Services are estimated to be 13,213 licenses. Dividing the

cost allocation to the Land Mobile Service fee category by its payment

units and its license term of five years results in an annual fee of $7

per license.\11\ See Appendix D. Thus, we are proposing that Land

Mobile licensees be subject to a $7 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 would be either $35 for a license with a five year

term or $70 for a license with a 10 year term. We are proposing no

change to the rules for calculating and submitting regulatory fees by

Land Mobile licensees. See FY 1994 Order, Appendix B at para. 4.

\11\Although this fee category includes licenses with ten year

terms, the estimated volume of ten year license applications in FY

1995 is less than one tenth of one percent and, therefore, is

statistically insignificant.

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18. Microwave Services, set forth in the FY 1995 fee schedule

within the wireless radio service category, include private microwave

systems and private carrier systems authorized under Part 94 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. Our FY 1995 cost allocation to Microwave Services is

$225,400, resulting from the mandatory adjustment to its FY 1994

revenue requirement under the statutory fee schedule. Payment units for

Microwave Services are estimated to be 6,440 licenses. Dividing the

revenue requirement of Microwave Services by its payment units and

license term of five years results in an annual fee of $7 per license.

See Appendix D. Thus, we are proposing that microwave licensees be

subject to a $7 annual regulatory fee per license, payable for an

entire five year license term at the time of application for a new,

reinstatement or renewal license. The total regulatory fee due would be

$35 for the five year license term. We are proposing no change to the

rules for calculating and submitting regulatory fee payments by

Microwave Services. See FY 1994 Order, Appendix B at para. 5.

19. Interactive Video Data Service (IVDS), set forth in the FY 1995

fee schedule within the wireless radio service category, 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.

IVDS provides information, products and services, and also the

capability to obtain responses from subscribers in a specific service

area. IVDS is offered on a private carrier basis. Our FY 1995 revenue

requirement attributable to IVDS is $50,750, resulting from the

mandatory adjustment to its FY 1994 revenue requirement under the

statutory fee schedule. Payment units for IVDS are estimated at 1,450

licenses. Dividing the revenue requirement of IVDS by its payment units

and license term of five years results in an annual fee of $7 per

license. See Appendix D. We are proposing that IVDS licensees be

subject to a $7 annual regulatory fee per license, payable for an

entire five year license term at the time of application for a new,

reinstatement or renewal license. The total regulatory fee due would be

$35 for the five year term of the license. We are proposing no change

to the rules for calculating and submitting regulatory fee payments for

IVDS. See FY 1994 Order, Appendix B at para. 6.

b. Shared Use Services

20. Licensees in the following services, set forth in the FY 1995

fee schedule within the wireless radio service category, generally

operate on shared frequencies.

21. Marine (Ship) Service is a shipboard radio service authorized

under Part 80 of the Commission's Rules to provide telecommunications

between watercraft or between watercraft and short-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. Our FY 1995

cost allocation to the Marine (Ship) Service fee category is

$5,070,420, resulting from the mandatory adjustment to its FY 1994

revenue requirement under the statutory fee schedule. Payment units for

Marine (Ship) Service are estimated to be 169,014 stations. Dividing

the revenue requirement of the Marine (Ship) Service by its payment

units and license term of ten years results in an annual fee of $3 per

station. See Appendix D. Thus, we are proposing that marine (ship)

station licensees be subject to a $3 annual regulatory fee per station,

payable for an entire ten year license term at the time of application

for a new, reinstatement or renewal license. The total regulatory fee

due would be $30 for the ten year license term. We are proposing no

change to the rules for calculating and submitting regulatory fee

payments by the Marine (Ship) Service licensees. See FY 1994 Order,

Appendix B at para. 9.

[[Page 3811]]

22. Marine (Coast) Service, set forth in the FY 1995 fee schedule

within the wireless radio service category, includes land-based

stations in the maritime services, authorized under Part 80 of our

rules, to provide communications services to ships and other watercraft

in coastal and inland waterways. Our FY 1995 cost allocation to the

Marine (Coast) Services is $41,955, resulting from the mandatory

adjustment of its FY 1994 revenue requirement under the statutory fee

schedule. Payment units for the Marine (Coast) Service are estimated to

be 2,797 licenses. Dividing the revenue requirement of the marine

(Coast) Service by its payment units and license term of five years

results in an annual fee of $3 per license. See Appendix D. Thus, we

are proposing that these licensees by subject to a $3 annual regulatory

fee per call sign, payable for the entire five year license term at the

time of application for a new, reinstatement or renewal license. The

total regulatory fee done would be $15 per call sign for the five year

license term. We are proposing no change to the rules for calculating

and submitting regulatory fee payments by the Marine (Coast) Service

See FY 1994 Order, Appendix B at para. 9.

23. Private Land Mobile (Other) Services, set forth in the FY 1995

fee schedule within the wireless radio service category, includes 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 to fixed stations on a

shared basis and include radio location services, private carrier

paging services, industrial radio services and land transportation

radio services. Our FY 1995 cost allocation for Private Land Mobile

(Other) Services is $1,396,275, resulting from the mandatory adjustment

to its FY 1994 revenue requirement under the statutory fee schedule.

Payment units for Private Land Mobile (Other) Services are estimated to

be 93,085 licenses. Dividing the revenue requirement of the Services by

their payment units and license term of five years results in an annual

fee of $3 per license. See Appendix D. Therefore, we are proposing that

licensees of services in this category be subject to a $3 annual

regulatory fee per call sign, payable for an entire five year license

term at the time of application for a new, reinstatement or renewal

license. The total regulatory fee due would be $15 for the five year

license term. We are proposing no change to the rules for calculating

and submitting regulatory fee payments by Private Land Mobile Service

licensees. See FY 1994 Order, Appendix B at para. 11.

24. Aviation (Aircraft) Service, set forth in the FY 1995 fee

schedule within the wireless radio service category, includes stations

authorized to provide communications between aircraft and from aircraft

to ground stations and includes frequencies used to communicate with

air traffic control facilities pursuant to part 87 of our rules. Our FY

1995 revenue requirement attributable to the Aviation (Aircraft)

Service is $1,130,430, resulting from the mandatory adjustment to its

FY 1994 revenue requirement under the statutory fee schedule. Payment

units for the Aviation (Aircraft) Service are estimated to be 37,681

stations. During the revenue requirement of the Aviation (Aircraft)

Service by its payment units and license term of ten years results in

an annual fee of $3 per station. See Appendix D. Thus, we are proposing

that licensees of aircraft stations be subject to a $3 annual

regulatory fee per station, payable for the entire ten year license

term at the time of application for a new, reinstatement or renewal

license. The total regulatory fee due would be $30 per station for the

ten year license term. We are proposing no change to the rules for

calculating and submitting regulatory fee payments by Aviation

(Aircraft) Service licensees. See FY 1994 Order, Appendix B at para. 8.

25. Aviation (Ground) Service, set forth in the FY 1995 fee

schedule within the wireless radio service category, 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 rules. Our FY 1995 revenue requirement attributable to

the Aviation (Ground) Service is $39,900, resulting from the mandatory

fee adjustment to its revenue requirement under the statutory fee

schedule. Payment units for the Aviation (Ground) Service are estimated

to be 2,660 licenses. Dividing the Service's revenue requirement by its

payment units and licenses term five years results in an annual fee of

$3 per license. See Appendix D. Thus, we are proposing that these

licensees of aviation ground stations be subject to a $3 annual

regulatory fee per license, payable for the entire five year license

term at the time of application for a new, reinstatement or renewal

license. The total regulatory fee would be $15 per call sign for the

five year license term. We are proposing no change to the rules for

calculating and submitting regulatory fee payments by Aviation (Ground)

Service licensees. See FY 1994 Order, Appendix B at para. 8.

26. General Mobile Radio Service (GMRS), set forth in the FY 1995

fee schedule within the wireless radio service category, includes 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 our rules. Our FY 1995

cost allocation for GMRS is $41,775, resulting from the mandatory

adjustment to its FY 1994 revenue requirement. Payment units for GMRS

are estimated to be 2,785 licenses. Dividing GMRS' revenue requirement

by its payment units and license term of five years results in an

annual fee of $3 per license. See Appendix D. Thus, we are proposing

that (GMRS) licensees be subject to a $3 annual regulatory fee per

license, payable for an entire five year license term at the time of

application for a new, reinstatement or renewal license. The total

regulatory fee due would be $15 per license for the five year license

term. We are proposing no change to the rules for calculation and

submission of regulatory fee by GMRS licensees. See FY 1994 Order,

Appendix B at para. 10.

c. Amateur Radio Vanity Call-Signs

27. Amateur Vanity Call-Signs, set forth in the FY 1995 fee

schedule within the wireless radio service category, covers voluntary

requests for specific call-signs in the Amateur Radio Service. We have

not yet concluded our rulemaking proceeding concerning authorizing

vanity call-signs. See Notice of Proposed Rulemaking, 9 FCC Rcd 105

(1993), 59 FR 558 (January 5, 1994). Nevertheless, we are including a

fee for vanity call signs since we expect to conclude this proceeding

during FY 1995. Our FY 1995 cost allocation to Amateur Vanity Call-

Signs is $60,000, resulting from the mandatory adjustment to its FY

1994 revenue requirement under the statutory fee schedule. See Appendix

D. Payment units for Amateur Vanity Call-Signs are estimated to be

2,000 licenses. Dividing this service category's cost allocation by its

estimated payment units and license term of ten years results in a fee

of $3 per year per license. Thus, we are proposing that applicants for

amateur vanity call-signs be subject to a $3 annual regulatory fee per

call-sign, payable for an entire ten year license term at the time of

application for a vanity call sign. The total regulatory fee due would

be $30 per license for the ten

[[Page 3812]]

year license term.\12\ We are proposing no change to the rules for

calculating and submitting regulatory fees for amateur vanity call-sign

licensees. See FY 1994 Order, Appendix B at para 12.

\12\Section 9(h) exempts ``amateur radio operator licenses under

part 97 of the Commission's regulations (47 C.F.R. Part 97)'' from

the requirement. However, section 9(g)'s fee schedule explicitly

includes ``Amateur vanity call signs'' as a category subject to the

payment of a regulatory fee.

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2. Mass Media

28. The regulatory fees for the Mass Media fee category apply to

broadcast licensees and permittees.

a. Commercial AM and FM Radio

29. 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. In developing our FY

1995 individual fee amounts for AM and FM stations, we determined that

the public interest required that we retain the operational class

distinctions among AM and FM stations that Congress established in its

statutory fee schedule. Also, as a permissive amendment and consistent

with petitions for rulemaking filed by Teddy Bear Communications, Inc.

and La Paz Broadcasting, Inc., we included a further distinction in

order to recognize that the population density of a station's

geographic location was also a public interest factor warranting

recognition in the fee schedule. After due consideration, we decided

that stations located in Arbitron radio markets vis-a-vis those not

located in these markets provided a logical distinction for allocating

a fee ratio burden.\13\ We quantified this distinction by adopting a

fee ratio between the Arbitron and non-Arbitron markets similar to the

ratio of the fee requirement the statutory fee scheduled established

for the larger television station markets and the schedule's

``remaining markets.''\14\ Thus, for AM and FM stations we exercised

our authority to make permitted amendments to the fee schedule in order

to lower the fees for stations with relatively small coverage areas and

daytime only operations and for stations operating in rural areas. The

following are our proposed regulatory fees for AM and FM stations.

\13\Arbitron has identified 261 Metro Survey Areas (MSAs) that

range in population from 14,033,500 (Market 1) to 47,100 persons

(Market 261). Stations operating outside Arbitron's MSAs are

considered to be located in ``non-arbitron markets'' serving more

rural geographic areas. See Arbitron rankings, Broadcasting & Cable

Yearbook, compiled annually by R. R. Bowker, a Reed Reference

Publishing Company. For the formulation of FY 1995 AM and FM fees,

we have used the 1994 edition of the Yearbook since it provides the

most recently published market data.

\14\See Appendix for a more detailed explanation of the

development of our fees for AM and FM radio stations.

AM Radio:

Class A (Arbitron Market).................................. $1,525

Class A (Non-Arbitron Market).............................. 565

Class B (Arbitron Market).................................. 850

Class B (Non-Arbitron Market).............................. 315

Class C (Arbitron Market).................................. 340

Class C (Non-Arbitron Market).............................. 125

Class D (Arbitron Market).................................. 425

Class D (Non-Arbitron Market).............................. 155

FM Radio:

Classes C, C1, C2, B (Arbitron Market)..................... $1,525

Classes C, C1, C2, B (Non-Arbitron Market)................. 565

Classes A, B1, C3 (Arbitron Market)........................ 1,025

Classes A, B1, C3 (Non-Arbitron Market).................... 375

We are proposing no change to the rules for calculating and

submitting regulatory fees by AM and FM radio station licensees. See FY

1994 Report, Appendix B at paras. 14-17 and 19.

b. Construction Permits--Commercial AM Radio

30. This category includes holders of permits to construct new AM

stations. The FY 1995 cost allocation for commercial AM construction

permit fee category is $9,480, resulting from the mandatory adjustment

to its FY 1994 revenue requirement under the statutory fee schedule.

Payment units for the category are estimated to be 79 AM construction

permits. Dividing the revenue requirement for AM construction permits

by estimated payment units results in a regulatory fee of $120 per

construction permit. See Appendix E. Thus, for FY 1995, we are

proposing to assess permittees $120 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/market of the station. We are proposing no change in

the rules for calculating and submitting the regulatory fee by AM

construction permittees. See FY 1994 Order, Appendix B at para. 18.

c. Construction Permits--Commercial FM Radio

31. This category includes holders of permits to construct new

commercial FM stations. The FY 1995 cost allocation for commerical FM

radio construction permits is $418,285, resulting from the mandatory

adjustment to the category's FY 1994 revenue requirement under the

statutory fee schedule. Payment units are estimated to be 703 FM

construction permits. Dividing the revenue requirements for FM

construction permits by estimated payments units results in a

regulatory fee $595 per permit. See Appendix E. Thus, for FY 1995, we

are proposing to assess permittees $595 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/market of the station. We are proposing no change

in the rules for calculating and submitting regulatory fees by FM

construction permittees. See FY 1994 Order, Appendix B at para. 20.

d. Commercial Television Stations

32. This category includes licensed commercial VHF and UHF

television stations covered under Part 73 of the Commissions rules,

except commonly owned television satellite stations, addressed

separately below. We are proposing to assess commercial television

stations annual fees based on the station's market rankings as

published by Warren Publishing in the 1994 Edition of the Television

and Cable Factbook (No. 62). The FY 1995 revenue requirements for the

different categories of VHF and UHF commercial television stations are

shown in Appendix E, including both an amount resulting from the

services mandatory adjustment and an additional amount required to

offset the reduced fee for satellite television stations, described

below, pursuant to our authority to make permitted amendments to the

fees. Payment units for each service category with the commercial

television fee category are shown in Appendix E. Dividing the revenue

requirements for each commercial television station category by the

corresponding estimate of payment units results in the following

proposed fees to be assessed on stations in each ADI market grouping:

VHF Markets 1-10............................................. $21,450

VHF Markets 11-25............................................ 19,075

VHF Markets 26-50............................................ 14,300

VHF Markets 51-100........................................... 9,525

VHF Remaining Markets........................................ 5,950

UHF Markets 1-10............................................. 17,150

UHF Markets 11-25............................................ 15,250

UHF Markets 26-50............................................ 11,450

UHF Markets 51-100........................................... 7,625

UHF Remaining Markets........................................ 4,775

See Appendix E. We are proposing no change to the rules for

calculating and submitting regulatory fee payments by television

stations licensees. See FY 1994 Order, Appendix B at para. 21-24.

[[Page 3813]]

e. Commercial Television Satellite Stations

33. Pursuant to our authority to make permissive amendments to our

regulatory fees, we are also proposing that commonly owned television

satellite stations in any market (authorized pursuant to Note 5 of

Section 73.3555 of the Commission's Rules) that retransmit programming

of the primary station be assessed a fee of $595 annually, based upon

the $500 fee for FY 1994 passed by the House of Representatives for

satellite stations. While not legally binding, the $500 base fee was

determined to be appropriate for licensees of television satellite

stations in our FY 1994 authorization bill passed in the House of

Representatives. See H.R. 4522. In addition, we believe that this fee

amount takes into account the public interest factors reflected in

comments filed in the proceeding to adopt the FY 1994 Schedule of

Regulatory Fees. See 447 U.S.C. Sec. 159(b)(3). In developing the FY

1995 fee for television satellite stations, we used the $500 fee that

the House enacted for FY 1994 for television satellite stations to

derive a FY 1995 fee requirement of $595 per television satellite

station resulting from a ``simulated'' FY 1994 revenue requirement

divided by the estimated payments units of 101 satellite television

station licenses. Therefore, we propose to exercise our authority to

make permitted amendments to the fees to establish the satellite

television fee at $595 per license. We expect that this fee will result

in approximately $60,095 of revenues. See Appendix E. We caution that

only those stations designated as satellite television stations in the

1994 edition of the Television and Cable Factbook (No. 62) are eligible

to submit the fee applicable to satellite television stations. All

other television licensees are subject to the regulatory fee payment

required for their class of station and market.\15\

\15\We acknowledge that the Commission has initiated an NPRM

seeking comment on whether satellite stations should continue to be

exempt from the Commission's national television ownership

restrictions. Be advised that the Commission's decision to assess a

regulatory fee for satellite stations that is less than the amount

for commercial television stations should not be taken as a signal

that any determination has been made with regard to this outstanding

proceeding.

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f. Construction Permits--Commercial VHF Television Stations

34. This category includes holders of permits to construct new

commercial VHF television stations. For FY 1995, the cost allocation

for this service category is $52,525, resulting from the fee category's

FY 1994 revenue requirement under the statutory fee schedule. Payment

units for VHF construction permits are estimated to be 11 permits.

Dividing the revenue requirement for VHF construction permits by its

estimated payment units results in a fee of $4,775. See Appendix E.

Therefore, for FY 1995, we are proposing to assess permittees $4,775

for each VHF construction permit held. 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. We are

proposing no change to the rules for calculating and submitting

regulatory fees by VHF television station construction permittees. See

FY 1994 Order, Appendix B at para. 24.

g. Construction Permits--Commercial UHF Television Stations

35. This category includes holders of permits to construct new UHF

television stations. For FY 1995, the cost allocation for this service

category is $554,625, resulting from the mandatory increase to its

statutory fee schedule. Payment units for UHF construction permits are

estimated to be 145 permits. Dividing the revenue requirement for this

service category by its estimated payment units results in a fee of

$3,825 for each UHF construction permit held. Therefore, we are

proposing a fee of $3,825 per UHF television station construction

permit. See Appendix E. 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. We are proposing no change

to the rules for calculating and submitting regulatory fees by UHF

television station permittees. See FY 1994 Order, Appendix B at para.

25.

h. Construction Permits--Satellite Television Stations

36. We are proposing to add a new service category to the fee

schedule in recognition that the holders of construction permits for

UHF and VHF television satellite stations should be charged a separate,

lower fee than the fee for holders of construction permits for fully

operational television stations. See above, where we propose to

exercise our authority to make permitted amendments to the fee schedule

relating to the fee for television satellite stations. We developed the

fee for television satellite construction permits by taking the average

fees for VHF and UHF television stations ($12,655) and relating it to

the average fee for construction permits for VHF and UHF television

stations ($4,300). Using this relationship, (.339:1) for satellite

stations results in a computed fee of $200 for construction permits for

television satellite stations ($595 times .339). See Appendix E. An

individual regulatory fee payment is to be made for each television

satellite station construction permit held.

i. Low Power Television, Translator and Booster Stations

37. This category includes Low Power UHF/VHF Television stations

operating under Part 74 of the Commissions rules with a transmitter

power output limited to 0.01kw for a UHF facility and, generally, 1kw

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). We propose to exercise our authority to make

permitted amendments to the fee schedule to include FM translator and

booster stations in this fee service because we believe these

facilities were inadvertently omitted from the statutory fee schedule

and we are unaware of any reason not to establish a fee for these

services. The stations in this category are secondary to full service

stations in terms of frequency priority. The FY 1995 cost allocation

for this service category is $1,368,640, resulting from the mandatory

adjustment to its FY 1994 revenue requirement under the statutory fee

schedule. Payment units are estimated to be 8,554 licenses, including

licenses covering FM translators. Dividing the revenue requirement for

this category by its estimated payment units results in a fee of $160

per license. See Appendix E. Thus, for FY 1995, we are proposing to

assess licensees of low power television stations and licensees of both

FM and TV translators and boosters an annual regulatory fee of $160 for

each license held. We are proposing no change to the rules for

calculating and submitting regulatory fee payments by licensees in this

service category. See FY 1994 Order, Appendix B at paras. 26-27.

j. Broadcast Auxiliary Stations

38. This category includes licensees of remote pickup stations,

aural broadcast auxiliary stations, television broadcast auxiliary

stations, and low power auxiliary stations, authorized under Part 74 of

the Commission's Rules. Auxiliary stations are generally associated

with a

[[Page 3814]]

particular television or radio broadcast station or cable television

system. The FY 1995 cost allocation for this category is $1,500,000,

resulting from the mandatory adjustment to its FY 1994 revenue

requirement under the statutory fee schedule. Payment units are

estimated to be 50,000 licenses. Dividing the category's revenue

requirement by its estimated payment units results in a fee of $30 per

license. See Appendix E. Thus, we are proposing that licensees of

commercial auxiliary stations be assessed a $30 annual regulatory fee

for FY 1995 on a per call sign basis. We are proposing no change to the

rules for calculating or submitting regulatory fee payments by

licensees of facilities in this service category. See FY 1994 Report,

Appendix B at para. 28.

k. International HF Broadcast (Short Wave)

39. This category covers international broadcast stations licensed

under Part 73 to operate on a frequency in the 5,950 Khz to 26,100 Khz

range to provide service to the general public in foreign countries.

The proposed fees for International HF Broadcast are set forth in the

International Service category in the FY 1995 fee schedule. For FY

1995, the cost allocation for the category is $4,560, resulting from

the mandatory adjustment to its FY 1994 revenue requirement under the

statutory fee schedule. Payment units are estimated to be 19 licenses.

Dividing the category's revenue requirements by its estimated payment

units results in a fee of $240 per license. See Appendix E. Thus, for

FY 1995, we are proposing to assess an annual regulatory fee of $240

per station license. We are proposing no change to the rules for

calculating and submitting fees by licensees of facilities in this

service category. See FY 1994 Order, Appendix B at para. 29.

3. Cable Services

a. Cable Television Systems

40. This category includes operators of cable television systems,

as the term is defined in Section 76.5 of our rules, providing or

distributing programming or other services to subscribers under Part 76

of our Rules. For FY 1995, the cost allocation for cable television

systems is $29,070,000, resulting from the mandatory adjustment to the

category's FY 1994 revenue requirement under the statutory fee

schedule. Estimated payment units are 57,000,000 subscribers. Dividing

the categories cost allocation by its estimated payment units results

in a fee of $.51 per subscriber. See Appendix F. Therefore, we are

proposing a fee of $.51 per cable television subscriber.\16\

\16\Consistent with our earlier interpretation of Congressional

intent, we propose to require payment of the cable system regulatory

fees on a per subscriber basis rather than per 1,000 subscribers as

set forth in the statutory fee schedule. See FY 1994 Order at para.

100.

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41. Payments for cable systems are to be made on a per subscriber

by community unit basis as of December 31, 1994 as reported on each

cable system's 1994 Annual report of Cable Systems (FCC Form 325). As

in FY 1994, 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 subscirber

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 individuals households. We are proposing no

change in the rules for calculating or submitting regulatory fees by

cable system operators. See FY 1994 Order, Appendix B at para. 31.

b. Cable Antenna Relay Service

42. This category includes cable television 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 1995, the cost

allocation for CARS is $635,010, resulting from the mandatory

adjustment to its FY 1994 revenue requirement based upon the statutory

fee schedule. Payment units are estimated to be 2,082 licenses.

Dividing the revenue requirement for CARS by its estimated payment

units results in a fee of $305 per license. See Appendix F. Thus, for

FY 1995, we are proposing to assess a $305 regulatory fee per CARS

license. We are proposing no change to the rules for calculating and

submitting regulatory fees by CARS licensees.

4. Common Carrier Services

a. Mobile Services

43. Public Mobile/Cellular Radio Services, set forth in the FY 1995

fee schedule within the wireless radio service category, include common

carriers and others (e.g., cellular radio licensees) offering, under

Parts 22 and 24, a wide variety of land-based or air-to-ground mobile

telephone, paging or data transmission services to the public.

Licensees include those using radio to provide telephone services at

fixed locations, such as Basic Exchange Telecommunications Radio

Services, Rural Radio and Offshore Radio. For FY 1994, we required a

fee payment on a subscriber basis pursuant to the statutory requirement

to charge a per subscriber fee. See 47 U.S.C. Sec. 159(g).

44. We recognize that the statutory language permitted a licensee

to submit a single per subscriber fee for an entity subscribing to its

service no matter how many actual units of communication services that

subscriber obtained from the licensee. Nevertheless, we believe that a

more equitable payment formulation would require each licensee to

submit a fee based upon the total number of telephone numbers or call

signs that it provides to customers so that its fee payment would

better reflect the benefit that the licensee receives from its use of

frequencies of communications. Therefore, for FY 1995, we propose to

exercise our authority to make permitted amendments to the fee schedule

to propose that each licensee in the Public Mobile/Cellular Radio

Services pay an annual regulatory fee for each mobile or cellular unit

(mobile or cellular call sign or telephone number), including paging

units, assigned to its customers, including resellers of its services.

For FY 1995, the service category's cost allocation is $4,420,000,

resulting from the mandatory adjustment to its FY 1994 revenue

requirement under the statutory fee schedule. Payment units under our

proposed formulation are estimated to be 34,000,000 subscribers.

Dividing the category's cost allocation by its estimated subscribers

results in a regulatory fee of $.13 per payment unit. See Appendix G.

Thus, we are proposing a fee of $.13 per subscriber. With the exception

of extending the regulatory fee to all units provided by licensees in

this service category, we are proposing no change to the rules for

payment of fees by licensees in the Public Mobile/Cellular Radio

Services. See FY 1994 Order, Appendix B at para. 31.17

\17\As noted above, we are proposing no regulatory fee for

Personal Communications Services (PCS) and Commercial Mobile Radio

Services (CMRS) for FY 1995 because no facilities were authorized

for PCS and CMRS by our proposed date for calculating fees, October

1, 1994.

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b. Fixed Radio Services

45. Domestic Public Fixed Radio Service includes stations

authorized under Part 21 of the Commission's Rules to use microwave

frequencies for video and data distribution within the United States.

This category includes licensees

[[Page 3815]]

in the Point-to-Point Microwave Radio Service, Local Television

Transmission Radio Service, Digital Electronic Message Service,

Multipoint Distribution Service (MDS), and Multichannel Multipoint

Distribution Service (MMDS).18 For FY 1995, the cost allocation

for the Domestic Public Fixed Radio Services is $158,000, resulting

from the mandatory adjustment to its FY 1994 revenue requirement under

the statutory fee schedule. Payment units are estimated to be 1,320

licenses. Dividing the Service's cost allocation by its estimated

payment units results in a fee of $120 per call sign. See Appendix G.

Therefore, we are proposing that Domestic Public Fixed Radio Service

licensees be subject to a $120 annual regulatory fee per call sign,

payable on a specified date to be announced by the Commission. We are

proposing no change to the rules for calculation and submission of the

fee payment by licensees in the Domestic Public Fixed Radio Services.

See FY 1994 Order, Appendix B at para. 37.

\18\MDS and MMDS are now regulated by the Mass Media Bureau and,

therefore, the regulatory fees for these services are shown within

the Mass Media category in the FY 1995 fee schedule. See Appendix B.

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46. International Public Fixed Radio Service, set forth in the FY

1995 fee schedule within the International 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. The cost allocation for the International

Public Fixed Radio Service is $4,800, resulting from the mandatory

adjustment to its revenue requirement under the statutory fee schedule.

Payment units for the Service are estimated to be 20 call signs.

Dividing the Service's revenue requirement by its estimated payment

units results in a fee of $240 per call sign. See Appendix F. thus, we

are proposing that international public fixed radio service licensees

be subject to a $240 annual regulatory fee per call sign, payable on a

specified date to be announced by the Commission. We are proposing no

change to the rules for calculating and submitting fees by licensees in

the International Public Fixed Radio Services. See FY 1994 Order,

Appendix B at para. 38.

c. VSATs and Equivalent C-Band Antennas/Mobile Satellite Earth Stations

47. VSATs and Equivalent C-Band Antennas includes VSAT earth

stations and equivalent C-Band earth stations and antennas and earth

station systems comprised of very small aperture terminals operating in

the 12 and 14 GHz bands and providing 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 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. The 1995 cost

allocation for this category is $56,810, resulting from the category's

mandatory adjustment under the FY 1994 statutory fee schedule. Payment

units are estimated to be 437,000 antennas. See Appendix G. Dividing

the revenue requirement by estimated payments units results in a

regulatory fee for FY 1995 of $.13 per authorized antenna. Therefore,

we propose to assess licensees of VSATs an annual regulatory fee of

$.13 per authorized antenna for FY 1995. The proposed fee for this

service is set forth in the International category in the FY 1995 fee

schedule. See Appendix B. We are not proposing to change the rules for

calculation and payment of the fee for VSATs, VSAT equivalents and

mobile earth station antennas.

d. Fixed Satellite Earth Station Antennas

48. Transmit/Receive and Transmit Only Earth Stations. This

category includes fixed-satellite transmit/receive and transmit only

earth sation antennas, authorized or registered under Part 25 of the

Commission's rules, operated by private and public carriers to provide

telephone, television, data, and other forms of communications. The

proposed fees for this fee category are set forth in the FY 1995 fee

schedule in the International Service category. Included in this

category are telemetry, tracking, and control (TT&C) earth stations and

earth station uplinks.

49. In our FY 1994 Order, we adopted this statutory fee schedule's

requirement that assessed a higher fee for fixed satellite earth

stations antennas of 9 meters or more than for those less than 9

meters. This distinction resulted in the anomaly that antennas

performing the same function were subjected to different fees, one

several thousand percent higher than the other. To rectify this

disparity, we propose to exercise our permitted authority to eliminate

the differing fee levels for these earth stations. We are proposing

that any earth station in this service category be charged a fee based

upon size as measured in meters. This modification will eliminate the

disparity in fees under the former schedule, but assure that smaller

antennas will continue to be subject to a smaller fee requirement than

larger antennas.

50. The FY 1995 cost allocation for transmit and transmit/receive

earth stations is $3,533,500, resulting from the mandatory adjustment

under the FY 1994 revenue requirement for this fee category. Payment

units are estimated to be 19,100 antenna meters. Dividing the cost

allocation for this category by its estimate payment units results in a

fee of $185 per meter. See Appendix G. Therefore, we are proposing a

regulatory fee of $185 per meter for transmit/receive and transmit only

earth stations. In determining the number of meters of an earth

station, all measurements should be made to the tenth of a meter.

51. Receive Only Earth Stations. For the reasons discussed above,

we propose to eliminate the disparity in the fee requirement for

receive only antennas above and below 9 meters. Thus receive only earth

stations will be assessed a per meter fee, regardless of whether they

are above or below 9 meters in size. The FY 1995 cost allocation for

receive only earth stations is $4,116,000, resulting from the mandatory

adjustment to the fee category's revenue requirement under the

statutory fee schedule. Payment units are estimated to be 34,300

antenna meters. Dividing the cost allocation for the category by its

estimated payment units results in a fee of $120 per meter. See

Appendix G. Thus, we are proposing a regulatory fee of $120 per meter

for receive only earth stations. All measurements will be to the tenth

of a meter.

e. Space Stations (Geosynchronous)

52. Geosynchronous space stations, set forth in the FY 1995 fee

schedule within the International Service category, are domestic and

international satellites positioned in orbit to remain approximately

fixed relative to the earth. They are authorized under Part 25 of the

Commission's rules to provide communications between satellites and

[[Page 3816]]

earth stations on a common carrier and/or private carrier basis. The FY

1995 cost allocation for geosynchronous space stations is $4,978,750,

resulting from the mandatory increase in the category's FY 1994 revenue

requirement under the statutory fee schedule. Payment units estimated

to be 35 operational space stations in orbit. Dividing the revenue

requirement for this category by its estimated payment units results in

a fee of $142,250 per operational space station in orbit. See Appendix

G. Thus, we are proposing that entities authorized to operate

geosynchronous space stations in accordance with section 25.120(d) will

be assessed an annual regulatory fee of $142,250 per operational

station in orbit. Payment is required for any geosynchronous satellite

that has been launched and tested and is authorized to provide service.

We are proposing no change to the rules for calculating and submitting

regulatory fee payments by licensees of geosynchronous space stations.

See FY 1994 Order, Appendix B at para. 35.

f. International Bearer Circuits

53. Regulatory fees for international bearer circuits are computed

``per 100 active 64 Kbps circuits or equivalent.'' International bearer

circuits are set forth in the International Service category in the FY

1995 fee schedule. The proposed fee is to be paid by the facilities-

based common carrier activating the circuit in any transmission

facility for the provision of service to an end user or resale carrier.

However, we propose to modify our requirements for payment of the fee

for bearer circuits by private submarine cable operators to require

that they pay fees for circuits sold on an indefeasible right of use

(IRU) basis or leased to any customer other than an international

common carrier authorized by the Commission to provide U.S.

international common carrier services. Compare FY 1994 Order at 5367.

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. The FY 1995

cost allocation is $310,000 based on an estimated volume of 62,000

active 64 Kbps circuits or equivalent. For FY 1995, we are proposing an

annual regulatory fee of $5.00 for each active 64 Kbps circuit or

equivalent. For analog television channels we will assess fees as

follows:

------------------------------------------------------------------------

No. of

equivalent

Analog television channel size in MHz 64 Kbps

circuits

------------------------------------------------------------------------

36.......................................................... 630

24.......................................................... 288

18.......................................................... 240

------------------------------------------------------------------------

See Appendix G. for a description of the development of the fees

for international bearer circuits. See FY 1994 Order, Appendix B at

para. 45.

g. Inter-exchange and Local Exchange Carriers, Competitive Access

Providers, Pay Telephone Providers, and Other Non-mobile Providers of

Interstate Service

54. In the FY 1994 Order, we adopted the fees and calculation

methodology for Inter-Exchange Carriers (IXC's), Local Exchange

Carriers (LECs) and Competitive Providers (CAPs) contained in the

section 9(g)'s fees schedule. We rejected proposals to modify the fees

schedule because Congress intended us to adopt that schedule in its

entirety for FY 1994. Under the statutory schedule, CAPs are assessed

fees based upon their number of subscribers. As a consequence, some

CAPs filed very small fee payments because they serve only a few

subscribers even though these subscribers are large entities with heavy

communications requirements.

55. Several of the commenters in the FY 1994 proceeding urged that

we extend the fee requirement to other providers of interstate

communications services, including resellers, in addition to those

subject to a fee requirement under the statutory fee schedule. We

declined to do so. However, we stated that we would review the fee

schedule to determine if other carriers should be subject to the

regulatory fee requirement for FY 1995.

56. We now believe that resellers and other carriers providing

interstate services subject to our jurisdiction and directly benefiting

from our regulation of the interstate network should be subject to a

regulatory fee payment. In particular, we are cognizant that our

decisions requiring facilities based carriers to eliminate any

restrictions on the resale and sharing of their interstate private line

communications services and facilities and our continuing market

surveillance has fostered the growth of a strong communications resale

industry. In opening up the interstate network to resellers, we

asserted our jurisdiction over their activities pursuant to Title II of

the Communications Act.\19\ We believe that carriers subject to our

regulation should bear the costs of that regulation. For these reasons,

we are proposing, as described below, to subject any carrier, whether

facilities based or reseller, using the interstate network to a

regulatory fee payment.

\19\See Resale and Shared Use of Common Carrier Services, 60 FCC

2d 588, 600 (1977) (In addition to allowing resellers to obtain

lines from facilities based carriers, we declared that ``' [resale

carriers],' whether they be brokers or value added carriers * * * ,

are equally subject to the requirements of Title II of the

Communications Act.''); see also American Tel & Tel. Co. v. F.C.C.,

978 F.2d 727, 735 (D.C. 1992) (finding that resellers and other

nondominant carriers must file tariffs and offer their services

pursuant to just, reasonable and nondiscriminatory rates and

practices pursuant to sections 201 and 202 of the Act.) Resellers

currently are subject to filing fees pursuant to section 8 of the

Act.

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57. We propose to expand the schedule of fees for carriers to

include not only IXCs, LECs and CAPs, but also domestic and

international carriers that provide operator services, 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.\20\

\20\A holding company may combine fee payments of its operating

companies and pay their combined fees for a particular service in a

single combined payment or by installments, if the aggregate of

their fees in a single service qualifies the holding company to make

installment payments.

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58. The FY 1995 cost allocation for this category is $39,000,000,

resulting from the mandatory adjustment of the Commission's FY 1994

revenue requirement under the statutory fee schedule. See Appendix G.

Because our proposal and a proposed alternative method of calculating

fees for the carrier category, represent a significant modification of

the method in which regulatory fees are calculated, interested parties

are requested to file comments concerning the most efficient and

equitable method for assessment of regulatory fees.

59. We propose to calculate carrier fees based on the number of

customer units, i.e., the number of users of a service, provided by a

carrier as of December 31, 1994. For access service

[[Page 3817]]

provided by local exchange carriers, the number of customer units would

equal the number of presubscribed lines as described in Section 69.116

of the Commission's Rules. For pay telephone service, the number of

customer units would equal the number of pay telephones used as the

basis for pay telephone compensation. For MTS provided by pre-selected

interexchange carriers, the number of customer units would equal the

number of presubscribed lines as described in Section 69.116 of the

Commission's Rules. For pay telephone service, the number of customer

units would equal the number of pay telephones used as the basis for

pay telephone compensation. For MTS provided by pre-selected

interexchange carriers, the number of customer units would equal the

number of presubscribed lines as described in Section 69.116 of the

Commissions Rules. For other switched services, such as MTS, WATS, 800,

900 and operator service not billed to the number from which the call

is placed, the number of customer units would equal the number of

billing accounts less those accounts already associated with

presubscribed lines reported by the carrier. For non-switched services,

including service provided by CAPs, special access, and private

(alternative access) line providers, the number of customer units would

be based on the total capacity provided to customers measured as voice

equivalent lines. For this purpose, 4 Khz or 64 Kbps equivalents would

equate to one voice equivalent line. Dividing the $39,000,000 cost

allocation by an estimated 300,000,000 customer units\21\ results in a

fee of $.13 per customer unit.

\21\Local exchange carriers and toll carriers will each report a

total of 142 million presubscribed lines. Allowing for \1/2\ million

privately owned pay telephone lines, 4 million special access lines,

and approximately 5% resale and competitive access provision, it

appears that carriers would report approximately 300 million

customer units.

---------------------------------------------------------------------------

60. In addition, as an alternative to the fee structure described

above, we are proposing to base our carrier fees on the number of

minutes of interstate service in calendar year 1994. For access service

provided by local exchange carriers, the number of interstate minutes

would equal the number of originating and terminating access minutes.

For interstate service upon which access charges are paid, the number

of minutes would equal the number of originating and terminating access

minutes. For other interstate services billed based on timed usage, the

number of minutes would equal the number of billed minutes. For

interstate services not billed on the basis of timed usage, minutes

would be estimated as the billed revenue in dollars times 10. This

represents a cross-over assumption that customers would substitute

ordinary MTS for any service which cost more than ten cents per minute.

Hence, revenue in dollars time 10 represents a lower bound number of

minutes. Dividing the $39,000,000 cost allocation by 508 billion

minutes\22\ results in a fee of $.08 per 1000 minutes.

\22\There will be approximately 393 billion common carrier line

access minutes in 1994 based on minutes reported for the first half

of the year times 2. Adding 5% for resale results in 413 billion

minutes. Based on 1992 published TRS Fund data, carriers provided

nine and one half billion dollars of nonswitched interstate service,

which adds 95 million minutes to the total.

---------------------------------------------------------------------------

D. Procedures for Payment of Regulatory Fees

61. Generally, we propose to retain the procedures that we

established in our FY 94 Report and Order 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 payor.'' See 47

U.S.C. Sec. 1559(f). Consistent with the section, we are again

proposing 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.

1. Annual Payments of Standard Fees'

62. Standard fees 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 in this proceeding or by public notice

in the Federal Register following the termination of the proceeding.

2. Installment Payments for Large Fees

63. In our FY 1994 Order, we classified fees for several services

at certain payment amounts and above as ``large'' fees, eligible to be

paid by installment payments, and afforded eligible payers the

opportunity to submit fees for these services in two equally divided

payments.\23\ We indicated, however, that based on our experience with

the fee program, we would consider increasing eligibility to make

installments payments. After gaining some experience, we are proposing

to now lower eligibility or installment payments. Our decision to lower

the eligibility threshold results from a determination that our payment

processing system feasibly can handle a reasonable increase in the

number of regulatees who pay in installments. Therefore, we propose to

set the eligibility requirement at the lowest installment payment level

permitted in FY 1994, $12,000, and propose that regulatees in any

category of service with a payment liability of $12,000 or more be

eligible to make installment payments. Eligibility for payment by

installment will be based upon the amount of either a single regulatory

fee payment or a combination of fee payments by the same licensee or

regulatee.

\23\See FY 1994 Order at paragraphs 39 through 45.

---------------------------------------------------------------------------

64. In our FY 1994 Order, we permitted payment of ``large'' fees in

two installments and stated that for future years we would permit four

installment payments by eligible regulatees. The limited time that will

be available following completion of this proceeding and the required

90 day notification period to Congress of our amendments to the

Schedule of Regulatory Fees following completion of this proceeding

makes the use of four installment payments impractical for installment

payers and unduly burdens our fee collection process. Therefore, we

propose that regulatees eligible to pay by installment payments may

submit their required fee in two equal payments (on dates to be

announced in the Report and Order terminating this proceeding or in the

Federal Register following the proceeding's termination), or, in the

alternative, may submit a single full payment on the date that their

final installment payment is due.

3. Advance Payments of Small Fees

65. We are proposing to treat regulatory fee payments by certain

radio licensees as small fees subject to advance payments. Advance

payments will be required from licensees of those services that we

decided would be subject to advance payments in our FY 1994 Order.\24\

Payers of advance fees

[[Page 3818]]

will submit the entire fee due for the full term of their licenses when

filing their initial, reinstatement or renewal application. Those

subject to the fee payment 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 payor 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. Refunds will not be made in cases where the fee for a service is

lower for FY 1995 than the fee paid under the FY 1994 fee schedule. The

Commission will announce by public notice in the Federal Register the

effective date for the payment of small fees pursuant to the FY 1995

fee schedule.

\24\Applicants for new, renewal and reinstatement licenses in

the following services will be required to pay their regulatory fees

in advance: Land Mobile Services, Microwave services, Interactive

Video Data Services (IVDS), Marine (Ship) Service, Marine (Coast)

Service, Private Land Mobile (Other) Services, Aviation (Aircraft)

Service, Aviation (Ground) Service, General Mobile Radio Service

(GMRS). In addition, applicants for amateur radio vanity call signs

will be required to submit an advance payment.

---------------------------------------------------------------------------

4. Timing of Standard Fee Calculations and Payment Dates

66. As noted, the date for payment of standard fees and installment

payments will be published in the Federal Register. 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, line or circuit count, fees should be submitted for any

authorization held as of October 1, 1994. As in our FY 1994 Order, we

are proposing October 1 as the date to be used for calculating standard

fees since it is the first day of the fiscal year and, therefore,

current licensees subject to the fees would have benefited from our

regulatory activities from the beginning of the period covered by the

payment.

67. In the case of regulatees whose fees are based upon a

subscriber, line or circuit count, we propose that the number of a

regulatees' subscribers, licenses or circuits on December 31, 1994,

will be used to calculate the fee payment. We have selected the last

date of the calendar year because many of these entities file reports

with us as of that date. Others calculate their subscriber numbers as

of that date for internal purposes. Therefore, calculation of the

regulatory fee as of that date will facilitate both an entity's

computation of its fee payment and our verification that the correct

fee payment has been submitted.\25\

\25\Cable systems should calculate their FY 1995 regulatory fees

using the subscriber data to be submitted to the Commission in their

1994 Annual Report of Cable Television Systems (FCC Form 325).

Accordingly, their number of subscribers will not necessarily be

based on December 31, 1994, but rather on ``a typical day in the

last full week'' of December 1994. (See FCC Form 325 Instructions.)

---------------------------------------------------------------------------

IV. Procedural Matters

A. Comment Period and Procedures

68. Pursuant to the procedures set forth in sections 1.415 and

1.419 of the Commission's rules, interested parties may file comments

on or before February 13, 1995 and reply comments on or before February

28, 1995. All relevant comments will be considered by the Commission

before final action is taken in this proceeding. To file formally in

this proceeding, participants must file an original and four copies of

all comments, reply comments and supporting materials. If participants

want each Commissioner to receive a personal copy of their comments, an

original and nine copies must be filed. Comments and reply comments

should be sent to the Office of the Secretary, Federal Communications

Commission, Washington, D.C. 20554. Interested parties, who do not wish

to formally participate in this proceeding, may file informal comments

to the same address. Comments and reply comments will be available for

public inspection during regular business hours in the FCC Reference

Center (Room 239) of the Federal Communications Commission, 1919 M

Street, NW., Washington, DC 20054.

B. Ex Parte Rules

69. This is a non-restricted notice and comment rulemaking

proceeding. Ex parte presentations are permitted, except during the

Sunshine Agenda period, provided they are disclosed pursuant to the

Commission's rules. See 47 C.F.R. Secs. 1.1202, 1.1203 and 1026(a).

C. Initial Regulatory Flexibility Analysis

70. As required by section 603 of the Regulatory Flexibility Act

(Pub. L. No. 96-354, 94 Stat. 1165, 5 U.S.C. Sec. 601 et seq. (1981),

the Commission has prepared an Initial Regulatory Flexibility Analysis

(IRFA) of the expected impact on small entities of the proposals

suggested in this document. The IRFA is set forth in Appendix A.

Written public comments are requested with respect to the IRFA. These

comments must be filed in accordance with the same filing deadlines for

comments on the rest of the Notice, but they must have a separate and

distinct heading, designating the comments as responses to the IRFA.

The secretary shall send a copy of this Notice, including the IRFA, to

the Chief Counsel for Advocacy of the Small Business Administration in

accordance with section 603(a) of the Regulatory Flexibility Act.

D. Authority and Further Information

71. Authority for this proceeding is contained in sections 4(i) and

(j, 9, and 303(r) of the Communications Act of 1934 as amended, 47

U.S.C. Secs. 154(1) and (j) and 159 and 303(r).

72. Further information about this proceeding may be obtained by

contacting Peter W. Herrick, Acting Associate Managing Director,

Program Analysis at (202) 418-0443.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Appendix A--Initial Regulatory Flexibility Analysis

Reason for Action

This rulemaking proceeding is initiated to obtain comment

regarding the Commission's proposed amendment of its Schedule of

Regulatory Fees in order to revise its regulatory fees to collect

$116,400,000, the amount that Congress has required the Commission

to recover through regulatory fees in Fiscal Year 1995.

Objectives

The Commission seeks to collect the necessary amount through its

proposed revised regulatory fees, as contained in the attached

Schedule of Regulatory Fees, in the most efficient manner possible

and without undue burden to the public.

Legal Basis

The proposed action is authorized under sections (4) (i) and

(j), 9 and 303(r) of the Communications Act of 1934, as amended, 47

U.S.C. Secs. 154 (i) and (j), 159, and 303(r).

Reporting, Recordkeeping and Other Compliance Requirements

The Commission has developed FCC Form 159 and FCC Form 159C for

submission with regulatory fee payments. Also, the Commission has

adopted implementation rules governing the payment of regulatory

fees. See 47 C.R.R. 1.1151 et seq.

Federal Rules That Overlap, Duplicate or Conflict With Proposed Rule

None.

Description, Potential Impact, and Number of Small Entities Involved

The proposed amendment of the Schedule of Regulatory Fees will

affect permittees, licensees and other regulatees in the cable,

common carrier, mass media, private radio and international

services. After evaluating the comments in this proceeding, the

Commission will further examine the impact of any fee revisions or

additions or rule

[[Page 3819]]

changes on small entities and set forth our findings in the Final

Regulatory Flexibility Analysis.

Any Significant Alternatives Minimizing the Impact on Small Entities

Consistent With the Stated Objectives

The Notice solicits comments on alternative methods of assessing

the regulatory fees necessary to recover the $116,400,000 in costs

that Congress has required us to recover through regulatory fees in

FY 1995.

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[[Page 3823]]

Appendix C--How Full Time Equivalents (FTEs) Were Calculated

(1) FTE allocations represent how the Commission anticipates

FTEs will actually be spent during the course of the fiscal

year.\26\ Many factors influence how FTEs are actually employed

during the year, including varying rates of attrition, speed of

hiring new and replacement staff, the use of part time or temporary

employees in lieu of permanent staff, changing Commission

priorities, and reorganizations and other activities requiring a

reallocation or reassignment of staff. The FTE allocations used in

the fee development process have been updated to reflect a number of

personnel reassignments made incident to recent reorganizations

within the Commission. The impact on the fee development process is

negligible since the reorganizations, although resulting in a

reassignment of staff and functions, have not significantly changed

the type of work the reassigned staff is performing.\27\

\26\It should be noted that FTE allocations are year-end

estimates and thus represent projected work time of on-board staff

as well as new and replacement staff yet to be hired.

\27\The Commission has chosen to retain, for fee determination

purposes, the fee classifications (i.e., Private Radio, Common

Carrier, Cable Services and Mass Media) contained in 47 U.S.C.

Section 159. Although we believe that we have authority to change

the classifications to align them more closely with our current

organizational structure, we wanted to minimize any adverse impacts

to the schedule brought about solely by such a classification

change.

---------------------------------------------------------------------------

(2) Only the Commission's enforcement, policy and rulemaking,

international, and user information activities are covered by the

regulatory fee program.\28\ Of the Commission's total of 2,271 FTEs,

846 FTEs are directly assigned to the agency's primary operating

bureaus to perform enforcement, policy and rulemaking,

international, and user information activities. An additional 560

FTEs have been identified by the agency as supporting these feeable

activities.\29\ The results of our FTE allocations are as follows:

\28\The regulatory fee program encompasses a total of 1,406

FTEs. The agency's Authorization of Service, Legal Services and

Executive Direction Activities cover an additional 865 FTEs.

Authorization of Service regulatory costs are recovered pursuant to

Section 8 of the Communications Act.

\29\These support activities include a proportionate share of

field operations, engineering and technology and certain general

program support staff FTEs.

------------------------------------------------------------------------

Fee category FTEs

------------------------------------------------------------------------

Mass Media.................................................... 253

Common Carrier................................................ 689

Private Radio................................................. 103

Cable Services................................................ 361

---------

Total................................................... 1406

------------------------------------------------------------------------

(3) The total of the costs to be offset by regulatory fees in FY

1995 is $116,400,000. Each fee category was allocated its share of

costs based upon the ratio of its FTEs to the total number of FTEs

allocated to all regulatory fee categories. The results of this

allocation of costs are shown below:

------------------------------------------------------------------------

Cost

allocation

Fee category FTEs Percent (in

millions)

------------------------------------------------------------------------

Mass Media.............................. 253 18.0 $20.9

Common Carrier.......................... 689 49.0 57.0

Private Radio........................... 103 7.3 8.5

Cable Services.......................... 361 25.7 29.9

-------------------------------

Total............................. 1406 100.0 \30\116.4

------------------------------------------------------------------------

\30\May not add due to rounding.

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[FR Doc. 95-1274 FIled 1-18-95; 8:45am]

BILLING CODE 6712-01-C

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