Assessment and Collection of Regulatory Fees For Fiscal Year 1996

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Chapter I

[MD Docket No. 96-84; FCC 96-153]

Assessment and Collection of Regulatory Fees For Fiscal Year 1996

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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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 1996. Section 9 of

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

assessment and collection of regulatory fees. For fiscal year 1996

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 April 29, 1996 and reply

comments must be filed on or before May 9, 1996.

ADDRESSES: Federal Communications Commission, 1919 M Street, NW.,

Washington, DC 20554.

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:

Adopted: April 5, 1996.

Released: April 9, 1996.

By the Commission.

Table of Contents

Topic/Paragraph Numbers

I. Introduction 1-4

II. Background 5-7

III. Discussion 8-60

A. Overall Methodology and Format--8-10

B. Adjustment of Payment Units--11

C. Recalculation of Fees--12

D. Cost Accounting System--13-17

E. Other Proposed Changes--18-51

1. Commercial Mobile Radio Service--19

2. Commercial AM/FM Radio--20-21

3. Commercial AM/FM/TV Construction Permits--22-26

4. Commercial VHF/UHF Television Stations--27

5. Auxiliary Broadcast Stations--28-33

6. Interstate Telephone Service Providers--34

7. Earth Stations--35

8. Wireless Cable--36-38

9. Direct Broadcast Satellite (DBS) Service--39-42

10. Intelsat & Inmarsat Signatory--43-47

11. Low Earth Orbit (LEO) Satellite Systems--48-49

12. Minimum Fee Payment Liability--50-51

F. Procedures for Payment of Regulatory Fees--52-59

1. Annual Payments of Standard Fees--53

2. Installment Payments for Large Fees--54-55

3. Advance Payments of Small Fees--56

4. Minimum Fee Payment Liability--57

5. Standard Fee Calculations and Payment Dates--58-59

G. Schedule of Regulatory Fees--60

IV. Procedural Matters--61-69

A. Comment Period and Procedures--61

B. Ex Parte Rules--62

C. Initial Regulatory Flexibility Analysis--63

D. Paperwork Reduction Act Compliance--64-67

E. Authority and Further Information--68-69

Appendix A--Initial Regulatory Flexibility Analysis

Appendix B--Sources of Payment Unit Estimates for FY 1996

Appendix C--Calculation of Pro-Rata Adjustments

Appendix D--FY 1996 Schedule of Regulatory Fees

Appendix E--Comparison Between FY 1995 and FY 1996 Regulatory Fees

Appendix F--FY 1996 Guidelines for Regulatory Fee Categories

I. Introduction

1. By this Notice of Proposed Rulemaking, the Commission commences

a proceeding to revise its Schedule of Regulatory Fees in order to

recover the amount of regulatory fees that Congress, pursuant to

Section 9(a) of the Communications Act, has required it to collect for

Fiscal Year (FY) 1996. See 47 U.S.C. Sec. 159 (a).

2. For FY 1996, Congress has required that we collect $116,400,000

through regulatory fees in order to recover the costs of our

enforcement, policy and rulemaking, international and user information

activities for FY 1996. P.L. 104-99 and 47 U.S.C. Sec. 159(a)(2). This

is the same amount that Congress designated for recovery through

regulatory fees for FY 1995. See Assessment and Collection of

Regulatory Fees for Fiscal Year 1995, FCC 95-227, released June 19,

1995, 60 FR 34004 (June 29, 1995). The current

[[Page 16433]]

Schedule of Regulatory Fees is set forth in sections 1.1152 through

1.1156 of the Commission's rules. 47 CFR Secs. 1.1152-1.1156.

3. Because the amount that Congress requires that we recover for FY

1996 is the same amount as we were required to recover for FY 1995, we

are not proposing to revise the Schedule of Fees to collect more or

less in total fees. However, we are proposing adjustments to the

Schedule and associated payment procedures to reflect changes in the

estimated number of payment units associated with services subject to a

fee and to incorporate certain public interest considerations. See 47

U.S.C. 159 (b).

4. Finally, we propose to amend the Schedule in order to assess

regulatory fees upon licensees and/or regulatees of services not now

subject to payment of a fee, to simplify and streamline the Schedule

and to clarify and/or revise certain payment procedures. 47 U.S.C.

Sec. 159(b)(3).

II. Background

5. Section 9(a) of the Communications Act of 1934, as amended,

authorizes the Commission to assess and collect annual regulatory fees

to recover the costs, as determined annually by Congress, that it

incurs in carrying out enforcement, policy and rulemaking,

international, and user information activities. 47 U.S.C. 159(a). In

our FY 1994 Fee Order, 59 FR 30984 (June 16, 1994), we adopted the

Schedule of Regulatory Fees that Congress established and we prescribed

rules to govern payment of the fees, as required by Congress. 47 U.S.C.

Sec. 159(b), (f)(1). Subsequently, in our FY 1995 Fee Order, we

modified the Schedule to increase by approximately 93 percent the

revenue generated by these fees in accordance with the amount Congress

required us to collect in FY 1995 over FY 1994. 60 FR 34004 (June 29,

1995). Also, in the FY 1995 Fee Order, we amended certain rules

governing our regulatory fee program based upon our experience

administering the program in FY 1994. See 47 CFR Secs. 1.1151 et seq.

6. As noted above, for FY 1994 we adopted the Schedule of

Regulatory Fees established in Section 9(g) of the Act. For fiscal

years after FY 1994, however, Sections 9(b) (2) and (3), respectively,

provide for ``Mandatory Adjustments'' and ``Permitted Amendments'' to

the Schedule of Regulatory Fees. 47 U.S.C. Sec. 159(b)(2), (b)(3).

Section 9(b)(2), entitled ``Mandatory Adjustments'', requires that we

revise the Schedule of Regulatory Fees whenever Congress changes the

amount that we are to recover through regulatory fees. 47 U.S.C.

Sec. 159(b)(2).

7. Section 9(b)(3), entitled ``Permitted Amendments'', requires

that we determine annually whether adjustments of the fees are

warranted based upon criteria established in 47 U.S.C. 159(b)(3). Also,

pursuant to Section 9(b)(3), we are to adjust the fees to take into

account factors that are reasonably related to the payor of the fee and

factors that are in the public interest. In making these amendments, we

are to ``add, delete, or reclassify services in the Schedule to reflect

additions, deletions or changes in the nature of its services.'' 47

U.S.C. Sec. 159(b)(3). Section 9(i) requires that we develop accounting

systems necessary to making permitted amendments. 47 U.S.C.

Sec. 159(i). Finally, we are required to notify Congress of any

permitted amendments 90 days before those amendments go into effect. 47

U.S.C. Sec. 159(b)(4)(B).

III. Discussion

A. Overall Methodology and Format

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

$116,400,000 for FY 1996 through the collection of regulatory fees,

representing the costs applicable to our enforcement, policy and

rulemaking, international, and user information activities. 47

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

9. Our approach to developing a FY 1996 fee schedule required that

we first adjust our estimates of payment units so that we could

determine how much revenue we would collect even if we did not change

any individual fee amounts. We then compared the total estimated

revenue that we would collect at the existing fee rates to the $116.4

million that we are required to collect in FY 1996 and pro-rated the

difference among all the existing fee categories. We then intended to

compare these projected revenues with cost data gathered from our new

cost accounting system and to make whatever adjustments were deemed

necessary to ensure that costs generally equated to revenues in each

fee category. As discussed elsewhere in this NPRM, this particular step

was not performed due to implementation problems associated with our

new cost accounting system. A substitute mechanism was, however, put in

place to provide assurances that estimated costs and revenues were

reasonable.

10. We next considered various proposals made by Commission Bureaus

and Offices for additions, deletions or other adjustments to the fees

and to our collection procedures. The results of these actions were

factored into our final schedule. That schedule is contained in

Appendix D. Finally, we incorporated, as Appendix F, proposed Guidance

which provides detailed descriptions of each fee category, information

on who is responsible for paying each fee and other critical

information designed to assist potential fee payers in determining the

extent of fee liability, if any, in FY 1996, assuming that our proposed

fees set forth in Appendix D are ultimately adopted.1 The steps

which we followed in the development of our FY 1996 regulatory fee

proposals are discussed in more detail in the following paragraphs.

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\1\ We also will incorporate a similar Appendix in the Report

and Order concluding this rulemaking. That Appendix will contain

updated information concerning any changes made to the proposed fees

adopted by the Report and Order.

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B. Adjustment of Payment Units

11. In order to calculate individual service fees for FY 1996, we

first adjusted the estimated payment units for each service because, in

many services, payment units have changed substantially since last

year. We obtained our estimates through a variety of means. For

example, we used Commission licensee data bases, actual prior year

payment records and industry and trade group projections, when

available. We tried to verify these estimates from multiple sources to

ensure that our estimates were reasonable. Appendix B provides a

summary of how these revised payment units were determined for each fee

category.

C. Recalculation of Fees

12. We next multiplied the revised payment units for FY 1996 by the

FY 1995 fee amounts in each fee category to determine how much revenue

the Commission would collect in FY 1996 if it made no changes to the

existing Schedule of Regulatory Fees. Next, we adjusted these revenue

requirements for each fee category on a proportional basis, consistent

with Section 9(b)(2) of the Act, to insure that we would collect only

the $116.4 million prescribed by Congress. Then we recalculated the

individual fee amounts required to collect the adjusted amount in each

service and rounded each fee amount as provided by Section 9(b)(2).

Appendix C provides detailed calculations showing how these revised fee

amounts were determined.

D. Cost Accounting System

13. On October 1, 1995, the Commission established a cost

accounting system which was designed, in part, to assist in the

development of

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our regulatory fees, specifically to help determine whether and to what

extent additional revisions to the Schedule of Regulatory Fees might be

required. See 47 U.S.C. Secs. 159(i). Our objective in establishing the

cost accounting system was to provide us with data that we could use,

in combination with other information, to ensure that fees closely

reflected our actual costs of regulation.

14. We had intended to compare extrapolated data from the cost

accounting system with the adjusted revenue requirements described

above in order to help assure that the adjusted fees we developed for

each service were reasonably related to the regulatory costs of each

service. It was our intention to propose further adjustments to the

fees in instances where the variance between the estimated costs of

each service and its estimated revenues appeared appropriate.

15. While there would be inherent deficiencies to any cost

accounting system relative to meeting the requirements of the Act, we

nonetheless believed that we would have enough useful information from

our new cost accounting system to warrant consideration of such data in

formulating our proposed FY 1996 fees. Unfortunately, several factors

have prevented us from relying on data derived from the cost accounting

system for the development of FY 1996 regulatory fees.

16. First, immediately following implementation of our cost

accounting system, it was discovered that the system contained a

significant amount of erroneous data due to technical complications

encountered during the start-up of the system. Although this data was

later corrected, the delay in obtaining useful output from the system

has prevented a thorough analysis of the data. Additionally, the

lengthy government shutdown and subsequent weather emergency in

Washington, D.C. prevented the accumulation of critical cost data for

several weeks. Consequently, we lack the confidence that we originally

anticipated we would have relative to FY 1996 cost data and, therefore,

will not utilize such data in the development of our proposed FY 1996

Regulatory Fee Schedule.

17. However, because our overall costs incident to the activities

described in Section 9(a)(1) of the Act remain unchanged from FY 1995,

we are satisfied that our revenue estimates for FY 1996 generally

reflect the relative costs applicable to our regulatory activities. As

a result, many individual fees remain unchanged from last fiscal year.

E. Other Proposed Changes

18. We examined the results of our calculations made in Paragraph

12 to determine if further adjustments of the fees and/or changes to

payment procedures were warranted based upon the public interest and

other criteria established in 47 U.S.C. 159(b)(3). As a result of this

review, we have proposed the following:

1. Commercial Mobile Radio Service (CMRS)

19. The Commercial Mobile Radio Service (CMRS) includes various

services authorized to provide interconnected mobile radio services for

profit to the public, or to such classes of eligible users as to be

effectively available to a substantial portion of the public. CMRS

includes certain licensees which formerly were licensed as part of the

Private Radio Services (e.g., Specialized Mobile Radio Services and

Private Paging), others formerly licensed as part of the Common Carrier

Radio Services (e.g., Public Mobile Services and Cellular Radio

Service) and one new service, the Personal Communications Service (PCS)

2. While specific rules pertaining to each covered service remain

in separate Parts 22, 80 and 90 of the Commission's rules; general

rules governing CMRS are contained in Part 20 of the rules. See 47 CFR

Parts 20, 22, 80 and 90. We are proposing to replace the Public Mobile/

Cellular Radio regulatory fee category with a CMRS Mobile Services

category and replace the Public Mobile One-Way Paging fee category with

a CMRS One-Way Paging Services category for regulatory fee collection

purposes. CMRS Mobile Services will include: qualifying Business Radio

Services, 220-222 MHz Land Mobile Systems, Specialized Mobile Radio

Services (Part 90); Public Coast Stations (Part 80); Public Mobile

Radio, Cellular, 800 MHz Air-Ground Radiotelephone, and Offshore Radio

Services (Part 22). We propose that licensees in the CMRS Mobile

Services pay annual regulatory fees on a per mobile or cellular unit

(mobile or cellular call sign or telephone number), or on a per unit

(two-way pager) basis. We propose that CMRS One-Way Paging Services

licensees pay annual regulatory fees on a per unit (pager) basis. See

Appendix F, Paragraphs 14-16.

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\2\ Although PCS is a CMRS service, we are not proposing that

PCS licensees pay a regulatory fee for FY 1996 because the service

is, at most, in the very early start-up phase with few subscribers

on the date (December 31, 1995) established for determining

liability for such a fee and, therefore, it is premature to assess a

fee.

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2. Commercial AM/FM Radio

20. In our FY 1995 NPRM, we considered an alternative methodology

for assessing regulatory fees for Commercial AM and FM radio licensees

based on market rankings. This methodology, based on markets, was

ultimately rejected as incomplete and insufficiently accurate for fee

determination. Other possible alternatives to using the existing class

designations to differentiate various types of stations and take into

consideration ability to pay were also eliminated due to a lack of

vital data necessary for establishing and verifying these fees. We were

particularly interested in a proposal which would associate population

density and service area contours with license data. Unfortunately,

this proposal appears to not be cost effective because it would require

a significant expenditure of funds to develop the required database and

additional funds to provide the results to our licensees to use for fee

payment purposes.

21. In our FY 1995 Order, we invited commenters to propose viable

alternatives to using designated class of station as the fee qualifier

in our FY 1996 NPRM. See FY 1995 Report and Order released June 19,

1995, Paragraph 54. We reiterate our invitation in this NPRM. In the

absence of a viable alternative, however, we are proposing to continue

to base the fees for AM and FM broadcast stations on station class for

FY 1996. See Appendix F, Paragraph 18.

3. Commercial AM/FM/TV Construction Permits

22. These categories of fees apply to holders of permits to

construct new commercial AM, FM, UHF and VHF Television stations

covered under Part 73 of the Commission's rules. Construction permit

(CP) fees are based on the type of commercial broadcasting service

(i.e., AM, FM or TV) for which the station is being constructed.

23. Because of the small number of construction permits relative to

overall stations and the modest amount of revenue collected from these

licensees, we considered elimination of construction permits as a

separate fee category with the costs attributed to regulation of

construction permits to be subsumed in the overall costs for regulation

of broadcast stations. This approach would simplify the fee schedule

and provide ``one stop'' fee payment by reducing or eliminating the

need for a broadcaster, in certain instances, to submit multiple

payments (e.g., when an existing broadcaster is

[[Page 16435]]

also the holder of a construction permit). More generally, it would

eliminate the fee on stations that are not yet operational and

producing income.

24. To recoup revenues lost by the elimination of the construction

permit fee, we would aggregate the revenue requirements associated with

construction permits and distribute this revenue requirement on a pro

rata basis to the primary station fee categories for AM/FM/TV

commercial broadcast stations. New, slightly higher, primary station

fees would result from this methodology.

25. In reviewing this issue, we determined that subsuming the fee

for construction permits under the primary station fees is inherently

inequitable since it would result in currently operating broadcast

stations subsidizing stations under construction, some of which would

eventually provide direct competition to the existing stations.

Additionally, the impact on the FM Radio Service is particularly

apparent. In this service, the impact of a large number of pending

construction permits combined with the relatively high construction

permit fee (compared to construction permit fees in the AM and TV

services) produces a situation where significant costs would have to be

absorbed by a limited number of operational commercial FM stations,

resulting in a much greater impact on these broadcasters.

26. Based on these factors, we propose to retain separate fee

categories for construction permits for AM/FM/TV commercial broadcast

stations in FY 1996. We do, however, welcome comments on this issue.

See Appendix F, Paragraphs 19, 20, 23-25.

4. Commercial VHF/UHF Television Stations

27. In our FY 1995 Order, we specified that VHF and UHF television

fees be determined in accordance with the station market rankings

published by Warren Publishing in the 1994 Edition of the Television

and Cable Factbook (No. 62). This ranking was based on Areas of

Dominant Influence (ADIs) as determined by the Arbitron Rating Co.

(``Arbitron''). Arbitron has now ceased publication of ADI market

areas. However, the A.C. Nielsen Co. (``Nielsen'') has published

Designated Market Areas (DMAs) which approximate the same coverage

areas as the Arbitron ADIs. The Nielsen DMAs also have the advantage of

including stations in Alaska and Hawaii which Arbitron did not.

Finally, the 1995 Edition of the Television and Cable Factbook (No. 63)

has replaced the Arbitron ADI listing with the Nielsen DMA listing. In

view of the above considerations, we propose for FY 1996 to require

television licensees to use Nielsen DMA rankings to determine the

appropriate regulatory fee. See Appendix F, Paragraph 21.

5. Auxiliary Broadcast Stations

28. This fee 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. These stations are generally associated with a

particular television or radio broadcast station or cable television

system.

29. In an effort to simplify the FY 1996 Fee Schedule, we examined

the feasibility and equity of combining auxiliary broadcast station

fees with the primary fees paid by broadcast station licensees and

cable television operators. Combining these fees appeared to be an

efficient approach due to the modest auxiliary fee relative to the fees

assessed on broadcast stations and cable television systems.

30. Calculating a new fee encompassing both the auxiliary fee and

station fee is relatively simple. We would add the auxiliary service

revenue requirement to the AM/FM/TV and cable television revenue

requirements on a pro-rata basis and then recompute each AM/FM/TV and

cable television fee. This would result in slightly higher fees for

each of these entities, but would also reduce the number of individual

fee payments required from many of these payors.

31. Although a single consolidated fee has certain advantages, we

identified some significant problems with using this approach. One

problem is that the number of auxiliary stations per parent station

varies greatly, with some broadcast stations or cable systems having

none of these licenses while others have more than a dozen. Also, it

appears that no more than ten percent of current regulatees own and

operate auxiliary facilities. Moreover, since applications for

auxiliary stations currently do not identify the parent station, nor

does the Commission maintain records providing this information, it is

impossible to determine the actual number of auxiliaries by license

category (AM/FM/TV, cable).

32. Finally, we determined that this proposal would likely result

in serious inequities since the larger commercial broadcast stations

and cable systems in the most profitable markets are most likely to

utilize multiple auxiliary stations. While a consolidated fee would

have little impact on them, it would result in smaller, less profitable

stations subsidizing part of the larger stations' operating costs.

33. For these reasons, we propose to retain Auxiliary Broadcast

Station fees as a separate category in FY 1996. We would, however,

welcome any suggestions on alternative methods for assessing these

fees. See Appendix F, Paragraph 27.

6. Interstate Telephone Service Providers

34. For FY 1995, all interstate telephone service providers were

assessed regulatory fees based on a percentage of their adjusted gross

revenue as computed from revenue data reported to the

Telecommunications Relay Service (TRS) Fund. Our FY 1995 Schedule of

Regulatory Fees listed each type of interstate telephone service

provider separately (e.g., Inter-exchange Carriers, Local Exchange

Carriers, Competitive Access Providers, Operator Services Providers)

causing some inadvertent confusion for payees. Because we are proposing

once again that all interstate telephone service providers compute

their fee based on the same adjusted gross revenue method, we are

proposing to consolidate Inter-Exchange Carriers, Local Exchange

Carriers, Competitive Access Providers, Operator Service Providers/Pay

Telephone Operators, Resellers, and Other Interstate Providers into a

single fee category labeled ``Interstate Telephone Service Providers.''

Details concerning who must pay interstate telephone service provider

fees can be found in Appendix F, Paragraph 32.

7. Earth Stations

35. For FY 1995, all earth stations were assessed the same fee

based on the number of authorizations or registrations. Our FY 1995

Schedule of Fees listed each type of earth station separately, causing

some inadvertent confusion for payees. Because we are proposing that

all earth stations (except receive only earth stations for which we

propose to not assess a regulatory fee) continue to pay the same fee

based on the number of authorizations or registrations, we are

proposing to simplify the structure of the Schedule by combining VSATs/

Equivalent C-Band/Mobile, Transmit/Receive, and Transmit Only Earth

Stations into a single fee category labeled ``Earth Stations.'' Further

details concerning earth station fees may be found in Appendix F,

Paragraphs 33-34.

[[Page 16436]]

8. Wireless Cable

36. Multi-Channel Multipoint Distribution Service Stations (MMDS;

a.k.a. ``Wireless Cable.''), along with Multipoint Distribution Service

Stations (MDS), are authorized under Part 21 of the Commission's Rules

to use microwave frequencies for video and data distribution. These

services were included in the Domestic Public Fixed Radio Service

category in the FY 1995 Regulatory Fee Schedule.

37. When operated as a Multichannel Video Programming Distribution

service (MVPD), MMDS licensees compete directly with cable television

and with other MVPDs. Current industry estimates indicate that Wireless

Cable has 800,000 subscribers or 1.19% of the MVPD market.

38. We propose to assess regulatory fees on MMDS licensees based on

an individual call sign. We seek comment on this proposal. See Appendix

F, Paragraph 28.

9. Direct Broadcast Satellite (DBS) Service

39. The Direct Broadcast Satellite (DBS) Service offers a wide

range of programming options to its subscribers distributed via

geosynchronous satellite. DBS service is expanding rapidly with total

viewership currently estimated at 1,500,000 subscribers.

40. For FY 1995, we decided not to assess a fee for the DBS service

because our resources devoted to regulation of DBS, other than those

involving application processing, were negligible and because DBS

operators then served few subscribers. See FY 1995 Report and Order,

Paragraph 15. For FY 1996, however, we are proposing to assess a fee

upon licensees in the DBS service since the service is operational,

serving numerous subscribers and, therefore, subject to the regulatory

activities (additional resources devoted to policy and rulemaking,

enforcement and public information) whose costs are recovered by

assessment of a regulatory fee.

41. We propose to assess DBS licensees the fee applicable to all

geosynchronous satellite licensees and, therefore, to include DBS for

regulatory fee purposes in the Space Station fee category. In

developing our proposed DBS fee, we considered assessing DBS licensees

a per subscriber fee rather than including them within the

geosynchronous satellite fee category. We currently assess per

subscriber fees in several fee categories, including a per subscriber

fee for cable television systems. However, we propose that DBS

satellites be included in the geosynchronous satellite category.

Despite the fact that DBS is a subscriber-based service, costs

attributable to regulating DBS operators are more similar to those

attributable to regulation of other geosynchronous space stations.

Regulatory responsibilities related to space stations focus on policy

and rulemaking activities, and are unrelated to the number of end users

of satellite services. Moreover, DBS rules do not impose additional

regulatory requirements on video service providers that are

specifically related to the individual subscriber. Thus, the number of

subscribers to a DBS service does not significantly affect the

regulatory costs arising from DBS services. By contrast, cable service

providers are subject to rate regulation, customer service standards,

and certain programming obligations. In addition, a subscriber-based

formula would penalize DBS licensees who win more subscribers with less

space station capacity (and hence lower regulatory costs). Moreover,

because DBS licensees are not restricted to the provision of video

programming, but rather may provide various non-video services, we

concluded that a facility-based fee would ensure that each DBS licensee

contributed equitably to the cost of DBS regulation without the need to

impose possibly burdensome and overly intrusive reporting requirements

necessary to gather information identifying the services offered by

individual DBS operators.

42. In light of the factors discussed above, we propose to assess

fees on these licensees on a per station basis. See Appendix F,

Paragraph 35.

10. Intelsat & Inmarsat Signatory

43. For FY 1995, we determined that Comsat was not subject to

payment of a geosynchronous satellite regulatory fee for its Intelsat

and Inmarsat satellites because the legislative history of Section 9

states that regulatory fees should not be assessed upon space stations

operated by international bodies. See FY 1995 Report and Order,

Paragraph 110. Instead, we propose to explore other ways to recover our

regulatory costs incurred due to Comsat's participation in the Intelsat

and Inmarsat programs. Thus, we are proposing to assess a new fee to

recover our costs of regulation of the U.S. Signatory to Intelsat and

Inmarsat. We believe that the fee is appropriate in view of the unique

role of the U.S. Signatory in Intelsat's and Inmarsat's structure and

our unique regulatory role with respect to these entities.

44. We propose to establish the separate Signatory fee because our

geosynchronous space station fee now recovers a significant amount of

costs directly attributable to our resource burden related to

conducting our oversight of the U.S. Signatory to these international

operations.3 Currently, we are conducting several proceedings

regarding the U.S. Signatories' authority to provide services via

Intelsat and Inmarsat, the U.S. Signatories' authority to participate

in the procurement or leasing of various Intelsat and Inmarsat space

stations, and their authority to participate in certain Intelsat and

Inmarsat-associated businesses. There also are proceedings pending

before us related to whether the U.S. Signatory has conformed to

applicable structural and financial separation rules. In addition, we

actively participate on an ongoing basis with the Executive Branch in

the oversight of the U.S. Signatories' representations of U.S. policy

at the Intelsat and Inmarsat governing boards through the U.S.

Government instructional process and participate directly in the

Assembly of Parties meetings of the two intergovernmental

organizations. Finally, we maintain public files of Intelsat and

Inmarsat governing board and other organizational documents.

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\3\ The U.S. Signatory to Intelsat is the Communications

Satellite Corporation (COMSAT), the entity designated, pursuant to

the Communications Satellite Act, as the sole operating entity to

participate in the International Telecommunications Satellite

Organization (Intelsat) in order to construct and operate the space

segment of the global commercial telecommunications satellite system

established under the Interim Agreement and Special Agreement signed

by Governments on August 20, 1964. See 47 U.S.C. Sec. 301. Also, the

U.S. Signatory to Inmarsat is Comsat, solely designated, pursuant to

the Communications Satellite Act, to participate in the

International Mobile Satellite Organization (Inmarsat).

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45. Because our regulation of the U.S. Signatories is substantially

different from our regulatory activities related to satellite systems

licensed by us, we are persuaded that the costs of our activities

related to the signatories should be recovered directly from the U.S.

Signatories rather than from space station licensees generally.

Moreover, we do not believe that it is necessary or appropriate to base

the Signatory fee on the number of space stations owned by the two

intergovernmental satellite systems. Rather, we will formulate the

Signatory fee pursuant to our cost of oversight of the Signatory's

activities.

46. Our review of our signatory activities discloses that

approximately 14.7% of the costs attributable to space station

regulatory oversight ($2,960,100), as determined in

[[Page 16437]]

Appendix C, is directly related to Intelsat and Inmarsat Signatory

activities (5.25 FTEs 4 out of a total of 35.7 direct FTEs). This

means that approximately $435,135 must be collected from the

signatories to offset the regulatory costs attributed to them

($2,960,100 x 14.7%). Dividing this revenue requirement by two (there

are signatories to two separate organizations), yields a signatory fee

of $217,575 (rounded). Therefore, we are proposing to add a new

regulatory fee of $217,575 for each designation as a signatory. See

Appendix F, Paragraph 37. Comment is requested on our proposal to

charge a signatory fee and on the methodology for calculating such a

fee.

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\4\ Full Time Equivalent (FTE) employment is the total number of

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

hours) worked or to be worked by current and future employees

divided by the number of compensable hours applicable to each fiscal

year.

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

47. Since the proposed Signatory fee will recover our costs

attributable to our signatory oversight, we are also proposing, in

conjunction with that proposal, to reduce the corresponding space

station fee. The new space station fee is computed by reducing the

revenue requirement for space stations calculated in Appendix C

($2,960,100) by the $435,150 to be collected from signatories and

dividing the reduced space station revenue requirement ($2,524,950) by

the number of payment units (39 operational space stations). The result

of these calculations is a new fee of $64,750 (rounded) for each

operational space station.5

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\5\ This fee is further adjusted in Paragraph 51.

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11. Low Earth Orbit (LEO) Satellite Systems

48. The FY 1994 statutory regulatory fee schedule (see 47 U.S.C.

159(g)) proposed a $90,000 regulatory fee for licensees in the Low

Earth Orbit (LEO) Satellite service. However, the Commission found that

there were no operational LEO systems on the effective date of the FY

1994 Schedule and suspended the fee for that year and again for FY

1995. See FY 1995 Report and Order, Paragraph 15. For FY 1996, however,

there are licensed and operational LEO systems. Therefore, we propose

to include a Low Earth Orbit Satellite System fee in the Schedule of

Regulatory Fees.

49. In developing a LEO System regulatory fee for FY 1996, we

propose to apportion the total revenue requirement for all space

stations between LEO systems and geosynchronous space station

licensees. In so doing, we also propose to preserve the same relative

relationship between the fees established by the Congress in Section

9(g) of the Act for geosynchronous space stations and LEO systems;

i.e., an approximate 38.5% differential between the fee for LEO systems

and the fee for geosynchronous space stations. 47 U.S.C. Sec. 159(g).

Reliance on this methodology will reduce the revenue which must be

collected from space stations other than LEOs and the corresponding

fees for space stations which had been calculated in Appendix C and

subsequently adjusted in Paragraph 49. As a result of our calculations,

we are proposing a new LEO system regulatory fee of $87,725 and a new

geosynchronous space station fee of $63,500 for FY 1996.6 See

Appendix F, Paragraphs 35-36.

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\6\ The FY 1996 adjusted revenue requirement for all space

stations has been determined to be $2,524,950. See Paragraph 49. For

FY 1996, there are two LEO systems and 37 geosynchronous space

stations subject to fee payment. The formula for computing the new

LEO and geosynchronous space station fees is as follows:

(a) We have assigned ``L'' to represent the proposed LEO system

fee and ``G'' to represent the proposed geosynchronous space station

fee. I.e.,

L = LEO System Fee

G = Geosynchronous Space Station Fee

(b) The relationship between the LEO fee and the geosynchronous

fee may be expressed as:

L = 1.385G (i.e., the LEO fee needs to be 38.5% higher than the

corresponding geosynchronous space station fee).

(c) The total revenue to be collected from LEOs and

geosynchronous space stations may be expressed as:

2L + 37G = $2,524,950 (i.e., the two existing LEO systems and 37

geosynchronous stations together must account for $2,524,950 in

revenues).

(d) Substituting the value of ``L'' in (b) above into the

formula in (c) above yields the following:

2(1.385G) + 37G = $2,524,950

2.77G + 37G = $2,524,950

39.77G = $2,524,950

G = $63,489

(e) Therefore, ``G'' (Geosynchronous space station fee) is

$63,500 (after rounding).

(f) Substituting the computed value of ``G'' in (d) above into

the formula in (c) above yields the following:

2L + 37(63,500) = 2,524,950

2L + 2,349,500 = 2,524,950

2L = 175,450

L = 87,725

(g) Therefore, ``L'' (LEO fee) is $87,725.

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12. Minimum Fee Payment Liability

50. In FY 1995 the Commission received several small fee payments

that cost more to deposit and process than the actual amount collected.

Such payments occur in fee categories where there is a per unit or per

subscriber charge, such as the fee for cable television (per

subscriber) or CMRS one-way paging (per unit).

51. Our collection and verification costs for small payments is

considerably more than any revenue generated from these collections.

Thus, we are proposing for FY 1996 a minimum fee liability for payees

of Commission regulatory fees. Our minimum fee liability policy would

exempt fee payment for any licensee whose total fee liability was less

than $10. This exemption would apply only when the total fee due from

an entity, including all categories of fees for which a payment is due

by an entity, is less than $10. To ensure that this exemption is

utilized as envisioned, we are also proposing to continue to require

that licensees complete and submit FCC Form 159, ``FCC Remittance

Advice'' so that we may verify that a fee payment is not required of

these entities.

F. Procedures for Payment of Regulatory Fees

52. Generally, we propose to retain the procedures that we have

established for the payment of regulatory fees. Section 9(f) requires

that we permit ``payment by installments in the case of fees in large

amounts, and in the case of small amounts, shall require the payment of

the fee in advance for a number of years not to exceed the term of the

license held by the payor.'' See 47 U.S.C. Sec. 159(f)(1). Consistent

with the section, we are again establishing 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

53. 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

54. In our FY 1995 NPRM, we proposed that regulatees in any

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

be eligible to make installment payments. Further, we proposed that

eligibility for payment by installment would be based upon the amount

of either a single regulatory fee payment or combination of fee

payments by the same licensee or regulatee. However, in our FY 1995

[[Page 16438]]

Order, we declined to adopt our installment payment proposals because,

as a practical matter, there would be insufficient time following the

effective date of our FY 1995 Schedule of Fees to permit a meaningful

implementation of an installment payment program.

55. For FY 1996, while we are mindful that time constraints may

preclude an opportunity for installment payments, we will once more

propose that regulatees in any category of service with a payment

liability of $12,000 or more be eligible to make installment payments

and that eligibility for payment by installment be based upon the

amount of either a single regulatory fee payment or combination of fee

payments by the same licensee or regulatee. 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

56. As we have in the past, we are proposing to treat regulatory

fee payments by certain 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.7 Payers of advance fees will submit the entire fee due

for the full term of their licenses when filing their initial, renewal

or reinstatement application. Regulatees subject to a payment of small

fees shall pay the amount due for the current fiscal year multiplied by

the number of years in the term of their requested license. In the

event that the required fee is adjusted following their payment of the

fee, the 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. The

Commission will announce by public notice in the Federal Register the

effective date for the payment of small fees pursuant to the FY 1996

fee schedule.

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\7\ 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.

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4. Minimum Fee Payment Liability

57. As discussed above, regulatees whose total fee liability is

less than ten dollars are exempted from fee payment in 1996. See

Paragraphs 54-55. However, such regulatees must complete and submit FCC

Form 159, ``FCC Remittance Advice'' so that we may verify that a fee

payment is not due. The Commission will announce by public notice in

the Federal Register the effective date for the submission of this fee

form.

5. Standard Fee Calculations and Payment Dates

58. As noted, the time for payment of standard fees and any

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, 1995. October 1 is the date to be

used for establishing liability for payment of standard fees since it

is the first day of the federal government's fiscal year.

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

subscriber, line or circuit count, the number of a regulatees'

subscribers, licenses or circuits on December 31, 1995, will be used to

calculate the fee payment.8 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.

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\8\ Cable systems calculate their regulatory fees using

subscriber data submitted to the Commission in their Annual Report

of Cable Television Systems (FCC Form 325). Accordingly, the number

of cable subscribers will not neccessarily be based on account as of

December 31, 1995, but rather on ``a typical day in the last full

week'' of December 1995.

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G. Schedule of Regulatory Fees

60. The Commission's proposed Schedule of Regulatory Fees for FY

1996 is contained in Appendix D of this NPRM.

IV. Procedural Matters

A. Comment Period and Procedures

61. 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 April 29, 1996, and reply comments on or before May 9,

1996. 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, N.W., Washington, D.C. 20554.

[[Page 16439]]

B. Ex Parte Rules

62. 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 CFR Secs. 1.1202, 1.1203 and 1026(a).

C. Initial Regulatory Flexibility Analysis

63. 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 NPRM, 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 NPRM, 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

64. 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 (i) and (j) and 159 and 303(r).

65. Further information about this proceeding may be obtained by

contacting the Fees Hotline at (202) 418-0192.

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 collect regulatory fees in the amount of

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

to recover through regulatory fees in Fiscal Year 1996.

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 CFR Sec. 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 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 1996.

Appendix B--Sources of Payment Unit Estimates for FY 1996

In order to calculate individual service fees for FY 1996, we

adjusted FY 1995 payment units for each service to more accurately

reflect expected FY 1996 payment liabilities. We obtained our

updated estimates through a variety of means. For example, we used

Commission licensee data bases, actual prior year payment records

and industry and trade association projections when available. We

tried to obtain verification for these estimates from multiple

sources and, in all cases, we compared FY 1996 estimates with actual

FY 1995 payment units to ensure that our revised estimates were

reasonable. Where it made sense, we adjusted and/or rounded our

final estimates to take into consideration the fact that certain

variables that impact on the number of payment units yet cannot be

estimated exactly. These include an unknown number of waivers and/or

exemptions that may occur in FY 1996 and the fact that, in many

services, the number of actual licensees or station operators

fluctuates from time to time due to economic, technical or other

reasons. Therefore, when we note, for example, that our estimated FY

1996 payment units are based on FY 1995 actual payment units, it

does not necessarily mean that our FY 1996 projection is exactly the

same number as FY 1995. It means that we have either rounded the FY

1995 number or adjusted it slightly to account for these variables.

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

Fee catgory Sources of payment unit estimates

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

Land Mobile (All), Microwave, Based on Wireless Telecommunications

IVDS, Marine (Ship & Coast), Bureau (WTB) projections of new

Aviation (Aircraft & applications and renewals taking into

Ground), GMRS, Amateur consideration existing Commission

Vanity Call Signs, Domestic licensee data bases. Aviation (Aircraft)

Public Fixed. and Marine (Ship) estimates have been

adjusted to take into consideration

proposals to license portions of these

services on a voluntary basis.

CMRS Mobile Services (incl. Based on actual FY 1995 payment units

Cellular/Public Mobile Radio adjusted to take into consideration

Services and Two Way Paging industry estimates of growth between FY

Services). 1995 and FY 1996 and Wireless

Telecommunications Bureau projections of

new applications and average number of

mobile units associated with each

application.

CMRS One Way Paging Services. Based on industry estimates of the number

of pager units in operation.

AM/FM Radio Stations......... Based on actual FY 1995 payment units.

UHF/VHF Television Stations.. Based on actual FY 1995 payment units.

AM/FM/TV Construction Permits Based on actual FY 1995 payment units.

[[Page 16440]]

LPTV, Translators and Based on actual FY 1995 payment units.

Boosters.

Auxiliaries.................. Based on actual FY 1995 payment units.

MDS/MMDS..................... Based on actual FY 1995 payment units.

Cable Antenna Relay System Based on actual FY 1995 payment units.

(CARS).

Cable Television System Based on Cable Services Bureau and

Subscribers. industry estimates of subscribership.

IXCs/LECs, CAPs, Other Based on actual FY 1995 interstate

Service Providers. revenues associated with contributions

to the Telecommunications Relay System

(TRS) Fund adjusted to take into

consideration FY 1996 revenue growth in

this industry as estimated by the Common

Carrier Bureau.

Earth Stations............... Based on actual FY 1995 payment units.

Space Stations & LEOs........ Based on International Bureau licensee

data bases.

International Bearer Circuits Based on actual FY 1995 payment units.

International HF Broadcast Based on actual FY 1995 payment units.

Stations, International

Public Fixed Radio Service.

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BILLING CODE 6712-01-P

[[Page 16441]]

[GRAPHIC] [TIFF OMITTED] TP15AP96.011

BILLING CODE 6712-01-C

[[Page 16442]]

Appendix D--FY 1996 Schedule of Regulatory Fees

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

Annual

Fee category regulatory fee

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

Land Mobile (per license) (220-222 Mhz, above 470 Mhz,

Base Station and SMRS) (47 CFR Part 90)................ 6

Microwave (per license) (47 CFR Part 101)............... 6

Interactive Video Data Service (per license) (47 CFR

Part 95)............................................... 6

Marine (Ship) (per station) (47 CFR Part 80)............ 3

Marine (Coast) (per license) (47 CFR Part 80)........... 3

General Mobile Radio Service (per license) (47 CFR Part

95).................................................... 3

Land Mobile (per license) (all stations not covered

above)................................................. 3

Aviation (Aircraft) (per station) (47 CFR Part 87)...... 3

Aviation (Ground) (per license) (47 CFR Part 87)........ 3

Amateur Vanity Call Signs (per call sign) (47 CFR Part

97).................................................... 3

CMRS Mobile Services (per unit) (47 CFR Parts 20, 22, 80

and 90)................................................ .15

CMRS One-Way Paging (per unit) (47 CFR Parts 20, 22 and

90).................................................... .02

Domestic Public Fixed Radio (per call sign) (47 CFR Part

21).................................................... 140

AM Radio (47 CFR Part 73):

Class A............................................. 1,125

Class B............................................. 630

Class C............................................. 255

Class D............................................. 315

Construction Permits................................ 125

FM Radio (47 CFR Part 73):

Classes C, C1, C2, B................................ 1,125

Classes A, B1, C3................................... 755

Construction Permits................................ 625

TV (47 CFR Part 73) VHF Commercial:

Markets 1-10........................................ 22,700

Markets 11-25....................................... 20,175

Markets 26-50....................................... 15,125

Markets 51-100...................................... 10,100

Remaining Markets................................... 6,300

Construction Permits................................ 5,025

TV (47 CFR Part 73) UHF Commercial:

Markets 1-10........................................ 18,150

Markets 11-25....................................... 16,150

Markets 26-50....................................... 12,100

Markets 51-100...................................... 8,075

Remaining Markets................................... 5,025

Construction Permits................................ 4,025

Satellite Television Stations (All Markets)............. 625

Construction Permits--Satellite Television Stations..... 230

Low Power TV, TV/FM Translators & Boosters (47 CFR Part

74).................................................... 170

Broadcast Auxiliary (47 CFR Part 74).................... 30

Multipoint Distribution Service (per call sign) (47 CFR

Part 21)............................................... 140

Cable Antenna Relay Service (47 CFR Part 78)............ 295

Cable Television Systems (per subscriber) (47 CFR Part

76).................................................... .50

Interstate Telephone Service Providers (per revenue

dollar)................................................ .00089

Earth Stations (47 CFR Part 25)......................... 335

Space Stations (per operational station in

geosynchronous orbit) (47 CFR Part 25) also includes

Direct Broadcast Satellite Service (per operational

station) (47 CFR Part 100)............................. 63,500

Low Earth Orbit Satellite (per operational system) (47

CFR Part 25)........................................... 87,725

INMARSAT/INTELSAT Signatory (per signatory)............. 217,575

International Circuits (per active 64KB circuit)........ 4

International Public Fixed (per call sign) (47 CFR Part

23).................................................... 200

International (HF) Broadcast (47 CFR Part 73)........... 255

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

Appendix E--Comparison Between FY 1995 and FY 1996 Regulatory Fees

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

Proposed

Annual annual

Fee category regulatory regulatory fee

fee FY 1995 FY 1996

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

Land Mobile (per license) (220-222 Mhz,

above 470 Mhz, Base Station and SMRS) (47

CFR Part 90)............................. 6 6

Microwave (per license) (47 CFR Part 101). 6 6

Interactive Video Data Service (per

license) (47 CFR Part 95)................ 6 6

Marine (Ship) (per station) (47 CFR Part

80)...................................... 3 3

Marine (Coast) (per license) (47 CFR Part

80)...................................... 3 3

General Mobile Radio Service (per license)

(47 CFR Part 95)......................... 3 3

Land Mobile (per license) (all stations

not covered above)....................... 3 3

Aviation (Aircraft) (per station) (47 CFR

Part 87)................................. 3 3

Aviation (Ground) (per license) (47 CFR

Part 87)................................. 3 3

Amateur Vanity Call Signs (per call sign)

(47 CFR Part 97)......................... 3 3

[[Page 16443]]

CMRS Mobile Services (per unit) (47 CFR

Parts 20, 22, 80 and 90)................. .15 .15

CMRS One-Way Paging (per unit) (47 CFR

Parts 20, 22, and 90).................... .02 .02

Domestic Public Fixed Radio (per call

sign) (47 CFR Part 21)................... 140 140

AM Radio (47 CFR Part 73):

Class A............................... 1,120 1,125

Class B............................... 620 630

Class C............................... 250 255

Class D............................... 310 315

Construction Permits.................. 125 125

FM Radio (47 CFR Part 73):

Classes C, C1, C2, B.................. 1,120 1,125

Classes A, B1, C3..................... 745 755

Construction Permits.................. 620 625

TV (47 CFR Part 73) VHF Commercial:

Markets 1-10.......................... 22,420 22,700

Markets 11-25......................... 19,925 20,175

Markets 26-50......................... 14,950 15,125

Markets 51-100........................ 9,975 10,100

Remaining Markets..................... 6,225 6,300

Construction Permits.................. 4,975 5,025

TV (47 CFR Part 73) UHF Commercial:

Markets 1-10.......................... 17,925 18,150

Markets 11-25......................... 15,950 16,150

Markets 26-50......................... 11,950 12,100

Markets 51-100........................ 7,975 8,075

Remaining Markets..................... 4,975 5,025

Construction Permits.................. 3,975 4,025

Satellite Television Stations (All

Markets)................................. 620 625

Construction Permits--Satellite Television

Stations................................. 225 230

Low Power TV, TV/FM Translators & Boosters

(47 CFR Part 74)......................... 170 170

Broadcast Auxiliary (47 CFR Part 74)...... 30 30

Multipoint Distribution Service (per call

sign) (47 CFR Part 21)................... 140 140

Cable Antenna Relay Service (47 CFR Part

78)...................................... 290 295

Cable Television Systems (per subscriber)

(47 CFR Part 76)......................... .49 .50

Interstate Telephone Service Providers

(per revenue dollar)..................... .00088 .00089

Earth Stations (47 CFR Part 25)........... 330 335

Space Stations (per operational station in

geosynchronous orbit) (47 CFR Part 25)... 75,000 63,500

Also includes Direct Broadcast Satellite

Service (per operational station) (47 CFR

Part 100)................................ n/a 63,500

Earth Orbit Satellite (per operational

system) (47 CFR Part 25)................. n/a 87,725

INMARSAT/INTELSAT Signatory (per

signatory)............................... n/a 217,575

International Circuits (per active 64KB

circuit)................................. 4 4

International Public Fixed (per call sign)

(47 CFR Part 23)......................... 200 200

International (HF) Broadcast (47 CFR Part

73)...................................... 250 255

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

Appendix F--FY 1996 Guidelines for Regulatory Fee Categories

1. The guidelines below provide an explanation of regulatory fee

categories established by the Schedule of Regulatory Fees in Section

9(g) of the Communications Act, 47 U.S.C. 159(g) as modified in the

instant Notice of Proposed Rulemaking. Where regulatory fee

categories need interpretation or clarification, we have relied on

the legislative history of Section 9, our own experience in

establishing and regulating the Schedule of Regulatory Fees for

Fiscal Years (FY) 1994 and 1995 and the services subject to the fee

schedule, and the comments of the parties in our proceeding to adopt

fees for FY 1995. The categories and amounts set out in the schedule

have been modified to reflect changes in the number of payment

units, additions and changes in the services subject to the fee

requirement and the benefits derived from the Commission's

regulatory activities, and to simplify the structure of the

schedule. The schedule may be similarly modified or adjusted in

future years to reflect changes in the Commission's budget and in

the services regulated by the Commission. See 47 U.S.C. 159(b) (2),

(3).

2. Exemptions. Most licensees and other entities regulated by

the Commission must pay regulatory fees in 1996. However,

governments and nonprofit (exempt under Section 501 of the Internal

Revenue Code) entities are exempt from paying regulatory fees and

should not submit payment, but may be asked to submit a current IRS

Determination Letter documenting its nonprofit status, a

certification of governmental authority, or certification from a

governmental entity attesting to its exempt status. The governmental

exemption applies even where the government-owned or community-owned

facility is in direct competition with commercial stations. Other

specific exemptions are discussed below in association with a

particular service category or group.

1. Private Wireless Radio Services

3. Two levels of statutory fees were established for the Private

Wireless Radio Services--exclusive use services and shared use

services. Thus, licensees who generally receive a higher quality

communication channel due to exclusive or lightly shared frequency

assignments, will pay a higher fee than those who share marginal

quality assignments. This dichotomy is consistent with the directive

of section 9 that the regulatory fees reflect the benefits provided

to the licensees. See 47 U.S.C. 159(b)(1)(A). In addition, because

of the generally small amount of the fees assessed against Private

Wireless Radio Service licensees, applicants for new licenses and

reinstatements and for renewal of existing licenses are required to

pay a regulatory fee covering the entire license term, with only a

percentage of all licensees paying a regulatory fee in any one year.

Applications for modification or assignment of existing

authorizations do not require the payment of regulatory fees. The

[[Page 16444]]

expiration date of those authorizations will reflect only the

unexpired term of the underlying license rather than a new license

term.

a. Exclusive Use Services

4. Land Mobile Services: Regulatees in this category include

those authorized under Part 90 of the Commission's Rules to provide

limited access Wireless Radio service that allows high quality voice

or digital communications between vehicles or to fixed stations to

further the business activities of the licensee. These services,

using the 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).1

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\1\ This category only applies to licensees of shared-use

private 220-222 MHz and 470 MHz and above in the Specialized Mobile

Radio (SMR) service who have elected not to change to the Commercial

Mobile Radio Service (CMRS). Those who have elected to change to the

CMRS are referred to paragraph 14 of this Appendix.

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For FY 1996, Land Mobile licensees will pay a $6 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.2 The total regulatory fee due is either

$30 for a license with a five year term or $60 for a license with a

10 year term.

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\2\ Although this fee category includes licenses with ten year

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

1996 is less than one tenth of one percent and, therefore, is

statistically insignificant.

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5. Microwave Services: These services include private microwave

systems and private carrier systems authorized under Part 101 of the

Commission's Rules to provide telecommunications services between

fixed points on a high quality channel of communications. Microwave

systems are often used to relay data and to control railroad,

pipeline and utility equipment. For FY 1996, Microwave licensees

will pay a $6 annual regulatory fee per license, payable for an

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

renewal or reinstatement license. The total regulatory fee due is

$60 for the ten year license term.

6. Interactive Video Data Service (IVDS): The IVDS is a two-way

point-to-multi-point radio service allocated high quality channels

of communications and authorized under Part 95 of the Commission's

Rules. The IVDS provides information, products and services, and

also the capability to obtain responses from subscribers in a

specific service area. The IVDS is offered on a private carrier

basis. For FY 1996, IVDS licensees will pay a $6 annual regulatory

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

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

The total regulatory fee due is $30 for the five year term of the

license.

b. Shared Use Services

7. Marine (Ship) Service: This service is a shipboard radio

service authorized under Part 80 of the Commission's Rules to

provide telecommunications between watercraft or between watercraft

and shore-based stations. Radio installations are required by

domestic and international law for large passenger or cargo vessels.

Radio equipment may be voluntarily installed on smaller vessels,

such as recreational boats. The recently enacted Telecommunications

Act of 1996 gave the Commission the authority to license certain

ship stations by rule rather than by individual license. Private

boat operators sailing entirely within domestic U.S. waters and who

are not otherwise required by treaty or agreement to carry a radio,

may no longer be required to hold a marine license if the Commission

enacts rules to that effect, and they will not be required to pay a

regulatory fee. For FY 1996, parties required to be licensed and

those choosing to be licensed for Marine (Ship) Stations will pay a

$3 annual regulatory fee per station, payable for an entire ten year

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

reinstatement license. The total regulatory fee due is $30 for the

ten year license term.

8. Marine (Coast) Service: This service includes land-based

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

Commission's Rules, to provide communications services to ships and

other watercraft in coastal and inland waterways. For FY 1996,

licensees of Marine (Coast) Stations will pay a $3 annual regulatory

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

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

The total regulatory fee due is $15 per call sign for the five year

license term.

9. Private Land Mobile (Other) Services: These services include

Land Mobile Radio Services operating under Parts 90 and 95 of the

Commission's Rules. Services in this category provide one or two way

communications between vehicles, persons or to fixed stations on a

shared basis and include radiolocation services, industrial radio

services and land transportation radio services. For FY 1996,

licensees of services in this category will pay a $3 annual

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

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

reinstatement license. The total regulatory fee due is $15 for the

five year license term.

10. Aviation (Aircraft) Service: These services include 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 the Commission's Rules. The recently enacted Telecommunications

Act of 1996 gave the Commission the authority to license certain

aircraft radio stations by rule rather than by individual license.

Private aircraft operators flying entirely within domestic U.S.

airspace and who are not otherwise required by treaty or agreement

to carry a radio, may no longer be required to hold an aircraft

license if the Commission enacts rules to that effect, and they will

not be required to pay a regulatory fee. For FY 1996, parties

required to be licensed and those choosing to be licensed for

Aviation (Aircraft) Stations will pay a $3 annual regulatory fee per

station, payable for the entire ten year license term at the time of

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

regulatory fee due is $30 per station for the ten year license term.

11. Aviation (Ground) Service: This service includes stations

authorized to provide ground-based communications to aircraft for

weather or landing information, or for logistical support pursuant

to Part 87 of the Commission's Rules. Certain ground-based stations

which only serve itinerant traffic; i.e., possess no actual units on

which to assess a fee, are exempt from payment of regulatory fees.

For FY 1996, licensees of Aviation (Ground) Stations will pay a $3

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

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

reinstatement license. The total regulatory fee is $15 per call sign

for the five year license term.

12. General Mobile Radio Service (GMRS): These services include

Land Mobile Radio licensees providing personal and limited business

communications between vehicles or to fixed stations for short-

range, two-way communications pursuant to Part 95 of the

Commission's Rules. For FY 1996, GMRS licensees will pay a $3 annual

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

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

license. The total regulatory fee due is $15 per license for the

five year license term.

c. Amateur Radio Vanity Call Signs

13. Amateur Vanity Call Signs: This fee covers voluntary

requests for specific call signs in the Amateur Radio Service

authorized under part 97 of the Commission's Rules. For FY 1996,

applicants for Amateur Vanity Call-Signs will pay 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 year license

term.3

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\3\ Section 9(h) exempts ``amateur radio operator licenses under

Part 97 of the Commission's rules (47 CFR 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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d. Commercial Wireless Radio Services

14. Commercial Mobile Radio Services (CMRS) Mobile Services: The

Commercial Mobile Radio Service (CMRS) is a new ``umbrella''

descriptive term attributed to various existing services authorized

to provide interconnected mobile radio services for profit to the

public, or to such classes of eligible users as to be effectively

available to a substantial portion of the public. CMRS Mobile

Services include certain licensees which formerly were licensed as

part of the Private Radio Services (e.g., Specialized Mobile Radio

Services) and others formerly licensed as part of the Common Carrier

Radio Services (e.g., Public Mobile Services and Cellular Radio

Service). While specific rules pertaining to each covered service

remain in separate Parts 22, 80 and 90; general rules for CMRS are

contained in Part 20. We have replaced the Public Mobile/Cellular

Radio regulatory fee category with a CMRS Mobile Services category

for regulatory fee collection purposes. CMRS Mobile Services will

[[Page 16445]]

include: qualifying Business Radio Services, 220-222 MHz Land Mobile

Systems, Specialized Mobile Radio Services (Part 90); 4 Public

Coast Stations (Part 80); Public Mobile Radio, Cellular, 800MHz Air-

Ground Radiotelephone, and Offshore Radio Services (Part 22). Each

licensee in this group will pay an annual regulatory fee for each

mobile or cellular unit (mobile or cellular call sign or telephone

number), including two-way paging units, assigned to its customers,

including resellers of its services. For FY 1996, the regulatory fee

is $.15 per unit.

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\4\ This category does not include licensees of private shared-

use 220 MHz and 470 MHz and above in the Specialized Mobile Radio

(SMR) service who have elected to remain non-commercial. Those who

have elected not to change to the Commercial Mobile Radio Service

(CMRS) are referred to paragraph 4 of this Appendix.

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15. Personal Communications Service (PCS): For FY 1996, the

Personal Communications Service (PCS) covered by Part 24 of the

rules is exempt from payment of regulatory fees.

16. Commercial Mobile Radio Services (CMRS) One-Way Paging

Services: The Commercial Mobile Radio Service (CMRS) is a new

``umbrella'' descriptive term attributed to various existing

services authorized to provide interconnected mobile radio services

for profit to the public, or to such classes of eligible users as to

be effectively available to a substantial portion of the public.

CMRS One-Way Paging Services include certain licensees which

formerly were licensed as part of the Private Radio Services (e.g.,

Private Paging) and others formerly licensed as part of the Common

Carrier Radio Services (e.g., Public Mobile One-Way Paging). While

specific rules pertaining to each covered service remain in separate

Parts 22 and 90; general rules for CMRS are contained in Part 20. We

have replaced the Public Mobile One-Way Paging regulatory fee

category with a CMRS One-Way Paging Services category for regulatory

fee collection purposes. Each licensee in the Public Mobile One-Way

Paging Services will pay an annual regulatory fee for each paging

unit, assigned to its customers, including resellers of its

services. For FY 1996, the regulatory fee is $.02 per unit.

2. Mass Media Services

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

broadcast licensees and permittees. Noncommercial Educational

Broadcasters are exempt from regulatory fees.

a. Commercial AM and FM Radio

18. These categories include licensed Commercial AM (Classes A,

B, C, and D) and FM (Classes A, B, B1, C, C1, C2, and C3) Radio

Stations operating under Part 73 of the Commission's Rules.5

The regulatory fees for AM and FM Stations for FY 1996 are as

follows:

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\5\ The Commission acknowledges that certain stations operating

in Puerto Rico and Guam have been assigned a higher level station

class than would be expected if the station were located on the

mainland. Although this results in a higher regulatory fee, we

believe that the increased interference protection associated with

the higher station class is necessary and justifies the fee.

AM Radio:

Class A..................................................... $1,125

Class B..................................................... 630

Class C..................................................... 255

Class D..................................................... 315

FM Radio:

Classes C, C1, C2, B........................................ 1,125

Classes A, B1, C3........................................... 755

b. Construction Permits--Commercial AM Radio

19. This category includes holders of permits to construct new

Commercial AM Stations. For FY 1996, permittees will pay a fee of

$125 for each permit held. Upon issuance of an operating license,

this fee would no longer be applicable and licensees would be

required to pay the applicable fee for the designated class of the

station.

c. Construction Permits--Commercial FM Radio

20. This category includes holders of permits to construct new

Commercial FM Stations. For FY 1996, permittees will pay a fee of

$625 for each permit held. Upon issuance of an operating license,

this fee would no longer be applicable. Instead, licensees would pay

a regulatory fee based upon the designated class of the station.

d. Commercial Television Stations

21. This category includes licensed Commercial VHF and UHF

Television Stations covered under Part 73 of the Commission's Rules,

except commonly owned Television Satellite Stations, addressed

separately below. Markets are Nielsen Designated Market Areas (DMA)

as listed in the Television & Cable Factbook, Stations Volume No.

63, 1995 Edition, Warren Publishing, Inc. The fees for each category

of station are as follows:

VHF Markets 1-10--$22,700

VHF Markets 11-25--$20,175

VHF Markets 26-50--$15,125

VHF Markets 51-100--$10,100

VHF Remaining Markets--$6,300

UHF Markets 1-10--$18,150

UHF Markets 11-25--$16,150

UHF Markets 26-50--$12,100

UHF Markets 51-100--$8,075

UHF Remaining Markets--$5,025

e. Commercial Television Satellite Stations

22. 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 are assessed a fee of $625 annually. Only those stations

designated as Television Satellite Stations in the 1995 Edition of

the Television and Cable Factbook are eligible to submit the fee

applicable to Television Satellite Stations. All other television

licensees are subject to the regulatory fee payment required for

their class of station and market.

f. Construction Permits--Commercial VHF Television Stations

23. This category includes holders of permits to construct new

Commercial VHF Television Stations. For FY 1996, VHF permittees will

pay an annual regulatory fee of $5,025. Upon issuance of an

operating license, this fee would no longer be applicable. Instead,

licensees would pay a fee based upon the designated market of the

station.

g. Construction permits--Commercial UHF Television Stations

24. This category includes holders of permits to construct new

UHF Television Stations. For FY 1996, UHF Television permittees will

pay an annual regulatory fee of $4,025. Upon issuance of an

operating license, this fee would no longer be applicable. Instead,

licensees would pay a fee based upon the designated market of the

station.

h. Construction Permits--Satellite Television Stations

25. The fee for UHF and VHF Television Satellite Station

construction permits for FY 1996 is $230. An individual regulatory

fee payment is to be made for each Television Satellite Station

construction permit held.

i. Low Power Television, FM Translator and Booster Stations, TV

Translator and Booster Stations

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

operating under Part 74 of the Commission's Rules with a transmitter

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

kw for a VHF facility. Low Power Television (LPTV) stations may

retransmit the programs and signals of a TV Broadcast Station,

originate programming, and/or operate as a subscription service.

This category also includes translators and boosters operating under

Part 74 which rebroadcast the signals of full service stations on a

frequency different from the parent station (translators) or on the

same frequency (boosters). The stations in this category are

secondary to full service stations in terms of frequency priority.

We have also received requests for waivers of the regulatory fees

from operators of community based Translators. These Translators are

generally not affiliated with commercial broadcasters, they are

nonprofit, nonprofitable, or only marginally profitable, serve small

rural communities, and are supported financially by the residents of

the communities served. We are aware of the difficulties these

Translators have in paying even minimal regulatory fees, and we have

addressed those concerns in the ruling on reconsideration of the FY

1994 Order. Community based Translators are exempt from regulatory

fees. For FY 1996, licensees in this category will pay a regulatory

fee of $170 for each license held.

j. Broadcast Auxiliary Stations

27. 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 particular television or radio broadcast station

or cable television system. For FY 1996, licensees of Commercial

Auxiliary Stations will pay a $30 annual regulatory fee on a per

call sign basis.

[[Page 16446]]

k. Multipoint Distribution Service

28. This category covers Multipoint Distribution Service (MDS),

and Multichannel Multipoint Distribution Service (MMDS), authorized

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

for video and data distribution within the United States. For FY

1996, MDS and MMDS stations will pay an annual regulatory fee of

$140 per call sign.

3. Cable Services

a. Cable Television Systems

29. This category includes operators of Cable Television

Systems, providing or distributing programming or other services to

subscribers under Part 76 of the Commission's Rules. For FY 1996

Cable Systems will pay a regulatory fee of $.50 per

subscriber.6 Payments for Cable Systems are to be made on a per

subscriber by community unit basis as of December 31, 1995, as

reported on each Cable Systems's 1995 Annual Report of Cable Systems

(FCC Form 325). Cable Systems should determine their subscriber

numbers by calculating the number of single family dwellings, the

number of individual households in multiple dwelling units, e.g.,

apartments, condominiums, mobile home parks, etc., paying at the

basic subscriber rate, the number of bulk rate customers and the

number of courtesy or fee customers. In order to determine the

number of bulk rate subscribers, a system should divide its bulk

rate charge by the annual subscription rate for individual

households. See FY 1994 Order, Appendix B at para. 31.

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\6\ Cable systems are to pay their 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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b. Cable Antenna Relay Service

30. This category includes Cable Antenna Relay Service (CARS)

stations used to transmit television and related audio signals,

signals of AM and FM Broadcast Stations and cablecasting from the

point of reception to a terminal point from where the signals are

distributed to the public by a Cable Television System. For FY 1996,

licensees will pay an annual regulatory fee of $295 per CARS

license.

4. Common Carrier Services

a. Fixed Radio Services

31. Domestic Public Fixed Radio Service: This category includes

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

Television Transmission Radio Service, Digital Electronic Message

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

microwave frequencies for video and data distribution within the

United States. For FY 1996, Domestic Public Fixed Radio Service

licensees pay a $140 annual regulatory fee per call sign.

b. Interstate Telephone Service Providers

32. This category includes Inter-Exchange Carriers (IXCs), Local

Exchange Carriers (LECs), Competitive Access Providers (CAPs),

domestic and international carriers that provide operator services,

Wide Area Telephone Service (WATS), 800, 900, telex, telegraph,

video, other switched, interstate access, special access, and

alternative access services either by using their own facilities or

by reselling facilities and services of other carriers or telephone

carrier holding companies, and companies other than traditional

local telephone companies that provide interstate access services to

long distance carriers and other customers. This category also

includes pre-paid calling card providers. These common carriers,

including resellers, must submit fee payments based upon their

proportionate share of gross interstate revenues using the

methodology that we have adopted for calculating contributions to

the TRS fund. See Telecommunications Relay Services, 8 FCC Rcd 5300

(1993), 58 FR 39671 (July 26, 1993). In order to avoid imposing any

double payment burden on resellers, we will permit carriers to

subtract from their gross interstate revenues, as reported to NECA

in connection with their TRS contribution, any payments made to

underlying common carriers for telecommunications facilities and

services, including payments for interstate access service, that are

sold in the form of interstate service. For this purpose, resold

telecommunications facilities and services are only intended to

include payments that correspond to revenues that will be included

by another carrier reporting interstate revenue. For FY 1996,

carriers should multiply their adjusted gross revenue figure (gross

revenue reduced by the total amount of their payments to underlying

common carriers for telecommunications facilities or services) by

the factor 0.00089 to determine the appropriate fee for this

category of service. You may want to use the following worksheet to

determine your fee payment:

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

Total Interstate

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

(1) Revenue reported in TRS Fund worksheets

(2) Less: Access charges paid

(3) Less: Other telecommunications facilities and

services taken for resale

(4) Adjusted revenues (1) minus (2) minus (3)

(5) Fee factor..................................... ....... 0.00089

(6) Fee due (4) times (5)

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

5. International Services

a. Earth Stations

33. Very Small Aperture Terminal (VSAT) Earth Stations,

equivalent C-Band Earth Stations and antennas, and earth station

systems comprised of very small aperture terminals operate in the 12

and 14 GHz bands and provide a variety of communications services to

other stations in the network. VSAT systems consist of a network of

technically-identical small Fixed-Satellite Earth Stations which

often include a larger hub station. VSAT Earth Stations and C-Band

Equivalent Earth Stations are authorized pursuant to Part 25 of the

Commission's Rules. Mobile Satellite Earth Stations, operating

pursuant to Part 25 of the Commission's Rules under blanket licenses

for mobile antennas (transceivers), are smaller than one meter and

provide voice or data communications, including position location

information for mobile platforms such as cars, buses or

trucks.7 Fixed-Satellite Transmit/Receive and Transmit Only

Earth Station antennas, authorized or registered under Part 25 of

the Commission's Rules, are operated by private and public carriers

to provide telephone, television, data, and other forms of

communications. Included in this category are telemetry, tracking,

and control (TT&C) earth stations and earth station uplinks. For FY

1996, licensees of VSATs, Mobile Satellite Earth Stations, and

Fixed-Satellite Transmit/Receive and Transmit Only Earth Stations

will pay a fee of $335 per authorization or registration as well as

a separate fee of $335 for each associated Hub Station.

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\7\ Mobile earth stations are vehicle-based units capable of

operation while the vehicle is in motion. In contrast, transportable

units are moved to a fixed location and operate in a stationary

(fixed) mode. Both are assessed the same regulatory fee for FY 1996.

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34. Receive only earth stations. For FY 1996, there is no

regulatory fee for receive-only earth stations.

b. Space Stations (Geosynchronous)

35. Geosynchronous Space Stations are domestic and international

satellites positioned in orbit to remain approximately fixed

relative to the earth. Most are authorized under Part 25 of the

Commission's Rules to provide communications between satellites and

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

addition, this category includes Direct Broadcast Satellite (DBS)

Service which includes space stations authorized under Part 100 of

the Commission's rules to transmit or re-transmit signals for direct

reception by the general public encompassing both individual and

community reception. For FY 1996, entities authorized to operate

geosynchronous space stations (including DBS satellites) will be

assessed an annual regulatory fee of $63,500 per operational station

in orbit. Payment is required for any geosynchronous satellite that

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

c. Low Earth Orbit Satellites (LEOs)

36. Low Earth Orbit Satellite Systems are space stations that

orbit the earth in non-geosynchronous orbit. They are authorized

under Part 25 of the Commission's rules to provide communications

between satellites and earth stations on a common carrier and/or

private carrier basis. For FY 1996, entities authorized to operate

Low Earth Orbit Satellite Systems will be assessed an annual

regulatory fee of $87,725 per operational system in orbit. Payment

is required for any LEO System that has one or more operational

satellites.

[[Page 16447]]

d. Signatories

37. A Signatory to INMARSAT is an Administration or government,

or the telecommunications entity designated as sole operating entity

by an Administration or government, which participates in the

International Mobile Satellite Organization (INMARSAT) in order to

develop and operate a global maritime satellite telecommunication

system which serves maritime commercial and safety needs of the

United States and foreign countries. A Signatory to INTELSAT is an

Administration or government, or the telecommunications entity

designated as sole operating entity by an Administration or

government, which participates in the International

Telecommunications Satellite Organization (INTELSAT) in order to

develop, construct, operate and maintain the space segment of the

global commercial telecommunications satellite system established

under the Interim Agreement and Special Agreement signed by

Governments on August 20, 1964. For FY 1996, Signatories to INMARSAT

and INTELSAT will be assessed an annual regulatory fee of $217,575

in order to recover the cost of the Commission's regulatory

activities associated with such entities.

e. International Bearer Circuits

38. Regulatory fees for International Bearer Circuits are 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. Payment of the fee for bearer circuits by

private submarine cable operators is required 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. For FY 1996, the regulatory fee is $4.00 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

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

f. International Public Fixed

39. This fee category includes common carriers authorized under

Part 23 of the Commission's Rules to provide radio communications

between the United States and a foreign point via microwave or HF

troposcatter systems, other than satellites and satellite earth

stations, but not including service between the United States and

Mexico and the United States and Canada using frequencies above 72

MHz. For FY 1996, International Public Fixed Radio Service licensees

will pay a $200 annual regulatory fee per call sign.

g. International (HF) Broadcast

40. This category covers International Broadcast Stations

licensed under Part 73 of the Commission's Rules to operate on

frequencies in the 5,950 khz to 26,100 Khz range to provide service

to the general public in foreign countries. For FY 1996,

International HF Broadcast Stations will pay an annual regulatory

fee of $255 per station license.

[FR Doc. 96-9192 Filed 4-12-96; 8:45 am]

BILLING CODE 6712-01-P