Rule2022-13439
Assessment and Collection of Regulatory Fees for Fiscal Year 2022
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 28, 2022
Effective
July 28, 2022
Issuing agencies
Federal Communications Commission
Abstract
In this document, the Federal Communications Commission (Commission) establishes a fee methodology for calculating small satellite fees.
Full Text
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[Federal Register Volume 87, Number 123 (Tuesday, June 28, 2022)]
[Rules and Regulations]
[Pages 38286-38295]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13439]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket Nos. 21-190 and 22-223; FCC 22-39; FR ID 91796]
Assessment and Collection of Regulatory Fees for Fiscal Year 2022
AGENCY: Federal Communications Commission.
ACTION: Final action.
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SUMMARY: In this document, the Federal Communications Commission
(Commission) establishes a fee methodology for calculating small
satellite fees.
DATES: This final action is effective July 28, 2022. Pursuant to
section 9(d) of the Communications Act, the methodology for calculating
small satellite fees requires notification to Congress at least 90 days
before it becomes effective. Notification to Congress was provided on
June 3, 2022, and therefore the effective date for the small satellite
methodology is September 1, 2022.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order, FCC 22-39, MD Docket Nos. 21-190 and 22-223, adopted on June
1, 2022, and released on June 2, 2022. The full text of this document
is available for public inspection by downloading the text from the
Commission's website at <a href="https://docs.fcc.gov/public/attachments/FCC-22-39A1.pdf">https://docs.fcc.gov/public/attachments/FCC-22-39A1.pdf</a>.
I. Procedural Matters
A. Final Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980 (RFA), the
Commission has prepared a Final Regulatory Flexibility Analysis (FRFA)
relating to the Report and Order. The FRFA is located at the end of
this document.
B. Final Paperwork Reduction Act of 1995 Analysis
2. This document does not contain new or modified information
collection requirements subject to the Paperwork Reduction Act of 1995
(PRA), Public Law 104-13. In addition, therefore, it does not contain
any new or modified information collection burden for small business
concerns with fewer than 25 employees, pursuant to the Small Business
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C.
3506(c)(4).
C. Congressional Review Act
3. The Commission has determined, and the Administrator of the
Office of Information and Regulatory Affairs, Office of Management and
Budget, concurs that these rules are non-major under the Congressional
Review Act, 5 U.S.C. 804(2). The Commission will send a copy of the
Report & Order to Congress and the Government Accountability Office
pursuant to 5 U.S.C. 801(a)(1)(A).
II. Introduction
4. In this document, we adopt a fee methodology for calculating
small satellite fees.
A. Space Station Regulatory Fees
5. For regulatory fee purposes, space stations are divided into two
main categories: (1) geostationary orbit (GSO) space stations and (2)
NGSO space stations. With respect to NGSO space stations, consistent
with our full time equivalent (FTE) allocation time and the distinct
benefits received by small satellite NGSO fee payors, for FY 2022, we
adopt a methodology for calculating the regulatory fee for small
satellites and small spacecraft (for purposes of this proceeding, we
refer to them together as ``small satellites'') based on 1/20th (5%) of
the average of the non-small satellite NGSO space station regulatory
fee rates from the current fiscal year on a per license basis. To
implement this methodology for FY 2022, in the notice of proposed
rulemaking (NPRM) published elsewhere in this issue of the Federal
Register (FY 2022 NPRM; FR Doc. 2022-13231), we seek comment on the
proposed regulatory fee rates for the subcategories of NGSO--small
satellite, NGSO--less complex space stations, and NGSO--other space
stations for FY 2022. We also address certain regulatory fee proposals
in the record regarding spacecraft involved in on-orbit servicing and
rendezvous and proximity operations. We tentatively conclude that the
addition of a new regulatory fee category for spacecraft conducting
these types of operations would be premature, but seek further comment
on this topic, including as it relates to spacecraft that may be
conducting on-orbit servicing operations near the GSO arc.
1. Methodology for Calculating Regulatory Fees for Small Satellites and
Related Issues
6. Although the Commission adopted the small satellite regulatory
fee category in 2019, we are just beginning to implement a fee
methodology for satellites and systems licensed as ``small satellites''
because they have just only started to become operational. This fiscal
year, we will assess fees against this category of regulatees for the
first time given that, as of October 2021, there were five licenses for
operational space stations that are in this small satellite regulatory
fee category. For the reasons discussed below, our expectation and
predictive judgment is that our FTEs will spend approximately twenty
times more time on regulating one non-small satellite NGSO system on
average compared to the time spent regulating one small satellite
license. Thus, in the FY 2022 NPRM, we propose a small satellite fee on
a per-license basis of $12,145.
7. This proposed fee is based on the methodology we adopt herein by
calculating 1/20th (5%) of the average regulatory fee rate for a non-
small NGSO system in FY 2022, which we calculated to be $242,878 (the
average of the ``less complex'' NGSO space station fee of $142,865 and
the ``other'' NGSO space station fee of $342,890, which would be
[[Page 38287]]
the fee rates before the small satellite fees are calculated into the
total NGSO space station fee category). Then we calculate the actual
fee rate for non-small NGSO systems (i.e., NGSO--less complex space
stations and NGSO--other space stations) after subtracting the total
fee amount that would be allocated to operational small satellites from
the total NGSO space station revenues.
8. In 2019, in the Small Satellite Report and Order, 85 FR 43711
(July 20, 2020), the Commission adopted a new, optional licensing
process for small satellites and spacecraft. In that Report and Order,
the Commission also adopted a small satellite regulatory fee category
for licensed and operational space stations authorized under the
process adopted in that proceeding. The Commission found that these
actions would enable such applicants to choose a streamlined licensing
procedure resulting in an easier application process, a lower
application fee and a shorter timeline for review than currently exists
for applicants. Satellites licensed through the streamlined process
have characteristics that distinguish them from traditional NGSO
satellite space stations, such as having a lower mass, shorter duration
missions, more limited spectrum needs, and detailed certifications that
must be submitted by the applicant.
9. In the FY 2018 NPRM, 83 FR 27846 (June 14, 2018), the Commission
proposed a regulatory fee for small satellites that would be 1/20th of
the fee applicable to NGSO systems. The Commission observed that this
is a new industry sector typically involving relatively low-cost
systems, as compared with traditional satellite systems, and a high
regulatory fee could limit the commercial applications of small
satellites. The Commission also stated that the small satellite rules
are designed to lower the regulatory burden involved in licensing small
satellites and reduce application processing times. As a result, the
Commission expected that small satellite authorizations would take
fewer Commission resources to process than traditional NGSO satellite
systems. In anticipation of including small satellites in the FY 2022
regulatory fee schedule, in the notice of proposed rulemaking published
at 86 FR 52429 (Sept. 21, 2021) (FY 2021 NPRM), we sought comment on
the methodology for calculating the regulatory fee for this small
satellite NGSO regulatory fee category.
10. We first consider the integration of the small satellite NGSO
fee category into the NGSO space stations fee category. In the FY 2021
NPRM, we sought comment on how we should integrate the small satellite
fee category into the overall space stations category. Eutelsat and
Intuitive Machines comment that a small satellite fee category should
be a third NGSO space stations fee category, in addition to ``less
complex'' and ``other.'' In comments responsive to the FY 2021 NPRM,
Amazon Web Services, Inc. and Planet Labs Inc. also favored integration
of the small satellite fee category within the NGSO space stations fee
category. We agree with commenters that support integration of the
small satellite fee category into the NGSO space stations fee category
as a third fee category. This approach recognizes that small satellites
encompassed by the streamlined licensing process are, in fact, NGSO
space stations. As a result, the small satellite fee category will be
the third NGSO space stations fee category, in addition to ``less
complex'' and ``other.''
11. We next consider how to calculate the small satellite
regulatory fee within the NGSO space stations fee category. In the FY
2021 NPRM, we proposed two different ways to assess the small satellite
regulatory fee. We first sought comment on setting a fee for small
satellites that would not be dependent on the number of small
satellites operating in a given regulatory period. We noted that a set
fee would provide more certainty for regulatees given the shorter
missions lasting no longer than six years for small satellites and the
likely higher fluctuation in number of small satellites that are
licensed and operational each year compared to NGSO space stations that
are licensed for a 15-year term. More specifically, we proposed a fee
for small satellites that is 1/20th of the ``other'' NGSO space station
fee category, either calculated using the ``other'' NGSO space stations
fees for given year or using the FY 2021 fee and then reassessing
accordingly each year, since the FTE activities for given small
satellite space stations would be approximately 1/20th of the FTE
activities for typical ``other'' NGSO space stations.
12. Commenters responded to this proposal with varying suggestions
for calculating the regulatory fee for small satellites. Eutelsat
proposes that we estimate aggregate small satellite regulatory costs
annually by imposing a regulatory fee that is 1/20th of the average
NGSO space stations fee, which would be calculated by dividing total
expected NGSO space stations fee revenues by the number of traditional
NGSO systems or ``payment units.'' Eutelsat proposes that we then
adjust downward the fees for ``other'' and ``less complex'' NGSO space
stations. Eutelsat submits that this methodology mitigates the
potential for unexpectedly large and unsupportable fee amounts
resulting from significant changes in workload or the number of small
satellites from year to year. Eutelsat suggests that this small
satellite regulatory fee of 1/20th of the average NGSO space stations
fee would be a ``middle ground'' and provide an opportunity to gain
more experience in regulating small satellites and understanding the
benefits they receive. Eutelsat notes that the benefits received by
small satellite licensees from Commission regulatory activities are
limited due to compatibility requirements with existing operations and
the limited license term compared to traditional NGSO space stations.
Eutelsat also emphasizes the importance of stability in regulatory fee
amounts since small satellite systems generally have more limited
potential to generate commercial revenues or are used to further
scientific/experimental objectives.
13. Alternatively, Astro Digital proposes a fixed regulatory fee
for small satellites that is 1/20th of the FY 2021 fee for ``other''
NGSO space stations and will vary minimally from year to year. Astro
Digital posits that a fixed fee helps to ensure predictability for
operators. Astro Digital believes that such a fee reflects the
appropriate regulatory burden to the Commission and the benefits
received by small satellite operators. Astro Digital also submits that
this fee further accounts for reduced regulatory burden due to the
operators typically being involved in likely less contentious licensing
proceedings.
14. As another alternative, Intuitive Machines proposes a fee that
is 1/20th of the ``less complex'' NGSO space stations regulatory fee to
more closely approximate the benefits and burdens associated with
regulating small satellites. Intuitive Machines suggests this fee in
consideration of the Commission's estimate that FTE activities for
small satellites would be approximately 1/20th of the FTE activities
for the category of ``other'' NGSO space stations, which is similar to
the Commission's findings in the FY 2018 Report and Order, 83 FR 47079
(Sept. 18, 2018). Intuitive Machines argues that when the Commission
proposed a fee in the FY 2018 Report and Order that was 1/20th of the
then NGSO space stations regulatory fee of $135,350, which was later
lowered to $122,775, the resulting regulatory fee calculated to
approximately $6,139--virtually identical to $6,135 or 1/20th of the FY
2021 ``less complex'' NGSO
[[Page 38288]]
space stations fee category today. Intuitive Machines claims that this
fee assessment is not only consistent with the Commission's prior
proposal to account for FTE activities but also accounts for the
reduced benefits received by small spacecraft operators.
15. In the FY 2021 NPRM, we also sought comment on whether to
allocate a percentage of the allocation for space station fees for
small satellites, which would cause the amount to fluctuate each year
depending on the number of payors in the small satellite category. We
noted that there would likely be few small satellite operators paying
fees initially and that the percentage could be reassessed as the
number of operational small satellites and FTE activities involving
those small satellites increases. We also sought comment on the earlier
proposals of AWS and Planet Labs to allocate 5% of the total NGSO space
station fee requirement to the small satellite fee category. The
remaining 95% would be divided between the ``less complex'' and
``other'' NGSO space stations. However, we expressed concern about
redistributing solely a percentage of the ``less complex'' NGSO space
stations fee to systems authorized under the streamlined small
satellite process, given that there are important differences between
small satellites and ``less complex'' and ``other'' NGSO space station
systems that we believe necessitate different regulatory fees.
16. Based on the record, and the fact that small satellites are
NGSO space stations, we adopt a methodology for calculating the
regulatory fee rate for small satellites based on 1/20th (5%) of the
average of the ``less complex'' NGSO space station regulatory fee rate
and the ``other'' NGSO space station fee rate for the current fiscal
year. In determining the average of the NGSO space station regulatory
fee rate for the current year, we will add together the fee rates of
one ``less complex'' and one ``other'' NGSO space station units, before
taking into account small satellite fees in the NGSO fee category, and
divide that value by two. This averaging methodology accommodates
fluctuations in the number of NGSO space stations fee payors and will
result in a relatively and appropriately low regulatory fee for small
satellites. We also find that adopting this averaging methodology
rather than taking a percentage of either the ``less complex'' or
``other'' NGSO space station fee rate provides a middle ground and an
opportunity to gain more experience in regulating small satellites,
while also recognizing that small satellites are part of a separate fee
category and not within either the ``less complex'' or ``other'' NGSO
space stations fee categories.
17. We agree with commenters responding to the FY 2021 NPRM that a
fair, administrable, and sustainable approach for assessing regulatory
fees for small satellites is through calculating a fee that is not
solely dependent on the number of small satellites operating in a given
regulatory period. In addition, we find that a small satellite fee
based on 1/20th (5%) of the average of the NGSO space stations
regulatory fee rate from the current fiscal year will fairly reflect
the anticipated FTE time for regulating small satellites. Our
methodology results in a predictable small satellite regulatory fee
structure (since the average of the ``less complex'' and ``other'' NGSO
space station fees is unlikely to fluctuate significantly each year),
takes into account the differences in small satellite licensing
processes, accounts for regulatory differences among NGSO space
stations, and aims to reduce the risk of non payors by increasing
certainty as to the anticipated approximate small satellite regulatory
fees.
18. Our methodology also takes into account the amount of work that
FTEs are performing and our expectation that our FTEs will spend
approximately twenty times more time on regulating one non-small NGSO
space station system compared to the time spent for regulating one
small satellite license. With each small satellite application, the
total FTE work amount in a given year increases. We anticipate that
FTEs will spend time regulating small satellites by performing
International Telecommunication Union (ITU) coordination; conducting
outreach to other administrations; working on rulemakings,
adjudications, and licensing; handling various filings submitted by
small satellite operators; handling enforcement issues; and accounting
for the potentially variable number of earth stations with which small
satellites may communicate, including updating ITU materials when
operators add earth stations to their networks after initial licensing.
Small satellite regulatees, in turn, benefit from this regulatory work.
This fee methodology simultaneously accounts for the characteristics of
small satellites and the relatively few work hours anticipated to be
spent by International Bureau FTEs in regulating them compared to FTE
time spent on non-small satellite NGSO space stations, since small
satellites have streamlined processing, often limited operational
capabilities, spectrum compatibility requirements, and can only be
licensed for a period of up to six years.
19. Our regulatory fee methodology for small satellites also should
reduce artificial incentives for structuring license applications
primarily for the purpose of avoiding NGSO regulatory fees. Given the
unique regulatory framework and optional application process, as well
as the fact that most regulatory activities benefit all NGSO space
stations in some proportion and our FTE activities are not tracked
based on each NGSO subcategory, calculating the small satellite fee
rate on a per license basis and in relation to FTE activities involving
a non-small NGSO space station on average will ensure that NGSO space
stations fee payors are assessed fair and reasonable shares of the
total NGSO space stations regulatory fees.
20. As the small satellite fee is calculated, the fees generated
from this small satellite fee category will be deducted from the fee
amount to be collected from the total NGSO space stations fees, and
then the remainder of the NGSO space stations fees will be allocated on
an 80/20 basis between ``other'' and ``less complex'' NSGO space
stations respectively. This approach is consistent with our statutory
obligation to apportion cost of regulating NGSO space stations in a
fair and administrable manner among the NGSO space station fee payors.
In adopting the small satellite fee category, the Commission recognized
that small satellites are NGSO space stations. Taking out the small
satellite fees from the total NGSO fees, rather than from one of the
NGSO space station subcategories, recognizes that any small satellite
fee contribution to the total fees collected from NGSO space stations
should reduce the fees collected from both the ``less complex'' and
``other'' NGSO space stations in the same manner to keep the cost
apportionment between those subcategories at a fair and reasonable
level. As we indicated in the FY 2021 Report and Order, 86 FR 52742
(Sept. 22, 2021), FY 2022 will be the first year we assess regulatory
fees for small satellites, and we anticipate that we will continue to
review regulatory fees for small satellites on an ongoing basis as we
gain more experience with these licensees.
21. Assessment of Fees on a Per-License Basis. In the FY 2021 NPRM,
we sought comment on whether we should assess regulatory fees per
system or differently than other NGSO fee categories, given that a
single entity may have multiple licenses for the same system, in
accordance with the structure of the small satellite process. We sought
to account for the fact that one system may have multiple associated
small
[[Page 38289]]
satellite licenses. In response, both Eutelsat and Intuitive Machines
propose that we should assess regulatory fees for small satellites per
small satellite system rather than per small satellite license.
Intuitive Machines contends that licensing on a per-system basis would
provide small spacecraft operators greater flexibility in licensing
missions and would benefit non-Earth orbiting systems that may be
deployed incrementally over timeframes that may not be consistent with
the orbital lifetime contemplated for small spacecraft. Eutelsat favors
a per-system basis because small satellite systems may be associated
with multiple licenses, therefore having multiple call signs, in part
because of the design of the small satellite licensing process.
Eutelsat also suggests that adopting fees on a per-system basis would
avoid discouraging applicants from applying for multiple licenses
because of potential regulatory fees and argues that such a policy
would account for the diverse implementation options for small
satellite systems.
22. We decline to adopt a per-system fee and instead adopt the
small satellite regulatory fee on a per-license basis. We anticipate
that adopting the fee on a per-license basis will accurately reflect
the increased oversight and regulation required by International Bureau
FTEs for these systems, including ongoing regulatory activities, when
an operator has multiple small satellite licenses. We have experienced
firsthand a correlation between the time spent by FTEs in regulating
small satellites and the number of licenses for a small satellite
system when issuing multiple licenses to a small satellite operator. We
also anticipate that a per-license fee basis will be more efficient and
administrable because it avoids potential complications and additional
FTE time spent in determining whether various sets of small satellites
are part of the same ``system.'' Applying this fee on a per-license
basis also is consistent with the Commission's statutory obligation to
recover its costs while taking into account differences between the
small satellite regulatory framework compared to other space stations,
as discussed in more detail below, and acknowledges that there may be
some advantages and additional benefits for small satellite operators
to have more than one license given the shorter license term. Finally,
we note that each small satellite license is assigned its own call sign
in the application process, and so a small satellite call sign is
effectively a proxy for license file number. As a result, in order to
simplify our invoicing processing, we plan to invoice small satellite
regulatory fees per call sign.
23. We anticipate that adopting a fee for small satellites on a
per-license basis rather than a per-system basis used for traditional
NGSO space stations will account for key differences in the regulation
of small satellites. First, when a small satellite operator has
multiple licenses, the number of licenses correlates with the amount of
work that the Commission must perform. This per-license fee basis will
account for the anticipated additional burden in regulating more
complicated multi-launch small satellite systems. In contrast, the
Commission has observed that when traditional NGSO space stations
operators hold multiple licenses for a single NGSO system, the
regulatory burden does not increase with the grant of each additional
license. Traditional NGSO systems are substantially more complicated to
regulate from the outset, which could include processing rounds and
related disputes and greater involvement in international coordination,
such that additional authorizations create at most a nominal, if any,
adjustment to the burden to regulate.
24. Second, we expect that there are greater incentives and
benefits of obtaining multiple licenses for the same system for small
satellites compared to traditional NGSO space stations. For example,
small satellite licenses are short term, lasting up to six years, while
other NGSO space station licenses are valid for 15 years. As another
example, a single small satellite license can only authorize up to 10
satellites; however, under an NGSO licensing framework, there is no
limit on the number of satellites that can be authorized under a single
license. The small satellite licensing process is an optional
streamlined process, carefully crafted to streamline regulatory work
per application. Unlike other NGSO space station constellations, small
satellite ``systems'' involving larger numbers of satellites cannot be
authorized under a single license. The license term is also relatively
short so with each additional small satellite license, operators of
small satellite systems receive distinct benefits. For these reasons,
we conclude that assessing the regulatory fee on a per-license basis is
consistent with section 9 of the Communications Act and such
assessments can be expected to reflect more accurately the FTE time
spent on regulating these fee payors and the regulatory benefits
provided to them.
25. Our actions here are under section 9(d) of the Communications
Act and must be submitted to Congress at least 90 days before they
become effective. We direct the Office of the Managing Director to
issue the notice immediately upon release of the item.
26. Non-U.S. Licensed Small Satellite Operators. We deny the
request from RBC Signals to exempt from regulatory fees non-U.S.
licensed small satellite operators ``whose only connection with the
U.S. market is communicating with U.S. data link/[telemetry, tracking
and command] TT&C earth stations.'' RBC Signals argues that the
Commission's analysis in the FY 2020 Report and Order (85 FR 59864
(Sept. 23, 2020)) supports such an exemption. RBC Signals contends
that, given their limited communications capabilities, small satellites
typically utilize the same earth stations and low data-rate links for
TT&C and data transfer. RBC Signals adds that the data transferred
using these links are minimal as compared to gateway/feeder link
backhaul for large communications and similar satellites. As a result,
RBC Signals believes that small satellites communicating with U.S.
earth stations only for data link and TT&C operations meet the factors
that the Commission previously found were not present when denying
creation of fee exemptions for certain non-U.S. licensed satellite
systems: facilitation of safe operation of satellites and avoidance of
significant data exchange traffic. RBC Signals contends that the costs
of non-U.S. licensed small satellites supported by U.S. data link/TT&C
earth stations should be recovered in the regulation of the U.S. earth
stations, which also primarily receive the corresponding regulatory
benefits. RBC Signals posits that small satellite ``data link/TT&C''
communications involve a narrow range of spectrum bands used for much
more limited purposes and that it makes little difference whether a
small satellite's supporting data link/TT&C earth station is located
within or outside U.S. territory.
27. For the following reasons, we disagree with RBC Signals'
proposal that the Commission should exempt non-U.S. licensed small
satellite operators whose only connection with the U.S. market is
communicating with U.S. data link earth stations. RBC does not provide
any meaningful distinction between data link stations and the gateway/
feeder link stations previously addressed in the FY 2020 Report and
Order. In that Report and Order, the Commission found that space
station operators benefit from our regulatory actions regardless of the
direction of the data flow or whether services are provided ultimately
to end users in the United States. The Commission also
[[Page 38290]]
found that non-U.S. licensed satellites accessing U.S. gateway/feeder
link earth stations and non-U.S. licensed NGSO systems that downlink
traffic to U.S. licensed earth stations, solely for immediate transit
outside the United States, are involved in significant data exchange
traffic in the United States and are not exempt from regulatory fees.
With respect to small satellites, we note the Commission's earlier
conclusion that services including TT&C and non-domestic data link to,
or data link from, earth stations in the United States are meaningfully
gaining access to the U.S. market and are subject to regulatory fees.
We also note that the Commission has made clear that operators that
communicate with TT&C earth stations in the United States will not pay
regulatory fees, but only where the relevant earth station license
clearly limits the non-U.S. licensed space station's access to TT&C
communications. RBC Signals' request to exempt a space station
communicating with a data link earth station exceeds that limit that
the Commission has previously determined.
III. Final Regulatory Flexibility Analysis
28. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was
included in the FY 2021 NPRM. The Commission sought written public
comment on these proposals, including comment on the IRFA. This Final
Regulatory Flexibility Analysis (FRFA) conforms to the IRFA.
A. Need for, and Objectives of, the Report and Order
29. The Commission is required by Congress to assess regulatory
fees each year in an amount that can reasonably be expected to equal
the amount of its annual appropriation. Although the Commission adopted
the small satellite regulatory fee category in 2019, we are still at
the start of implementing a fee methodology for satellites and systems
licensed as ``small satellites'' because they have just only started to
become operational. This fiscal year, we would apply this category of
fees for the first time given that, as of October 2021, there were 5
licenses for operational space stations that fall in this small
satellite regulatory fee category. In the Report and Order, we adopt a
methodology for calculating the regulatory fee for small satellites and
small spacecraft (for purposes of this proceeding, we refer to them
together as ``small satellites'') based on 1/20th (5%) of the average
of the non-small satellite non-geostationary orbit (NGSO) space station
regulatory fee rates from the current fiscal year. We adopt this fee on
a per-license basis. This methodology will recognize the more limited
regulatory work associated with small satellite licenses. It also
results in a relatively low regulatory fee for small satellites. FY
2022 will be the first year we assess regulatory fees for small
satellites, so we anticipate that the Commission will review the
regulatory fees for small satellites on an ongoing basis as it gains
more experience with these licensees and market access grantees. In the
Report and Order, we also deny an exemption requested from regulatory
fee obligations for non-US licensed space stations.
B. Summary of the Significant Issues Raised by the Public Comments in
Response to the IRFA
30. None.
C. Response to Comments by the Chief Counsel for Advocacy of the Small
Business Administration
31. No comments were filed by the Chief Counsel for Advocacy of the
Small Business Administration.
D. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply
32. The RFA directs agencies to provide a description of, and where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules and policies, if adopted. The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' In addition, the term ``small business''
has the same meaning as the term ``small business concern'' under the
Small Business Act. A ``small business concern'' is one which: (1) is
independently owned and operated; (2) is not dominant in its field of
operation; and (3) satisfies any additional criteria established by the
Small Business Administration (SBA).
33. Small Businesses, Small Organizations, Small Governmental
Jurisdictions. Small Businesses, Small Organizations, Small
Governmental Jurisdictions. Our actions, over time, may affect small
entities that are not easily categorized at present. We therefore
describe here, at the outset, three broad groups of small entities that
could be directly affected herein. First, while there are industry
specific size standards for small businesses that are used in the
regulatory flexibility analysis, according to data from the SBA's
Office of Advocacy, in general a small business is an independent
business having fewer than 500 employees. These types of small
businesses represent 99.9% of all businesses in the United States,
which translates to 30.7 million businesses.
34. Next, the type of small entity described as a ``small
organization'' is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
The Internal Revenue Service (IRS) uses a revenue benchmark of $50,000
or less to delineate its annual electronic filing requirements for
small exempt organizations. Nationwide, for tax year 2018, there were
approximately 571,709 small exempt organizations in the U.S. reporting
revenues of $50,000 or less according to the registration and tax data
for exempt organizations available from the IRS.
35. Finally, the small entity described as a ``small governmental
jurisdiction'' is defined generally as ``governments of cities,
counties, towns, townships, villages, school districts, or special
districts, with a population of less than fifty thousand.'' U.S. Census
Bureau data from the 2017 Census of Governments indicates that there
were 90,075 local governmental jurisdictions consisting of general
purpose governments and special purpose governments in the United
States. Of this number there were 36,931 general purpose governments
(county, municipal and town or township) with populations of less than
50,000 and 12,040 special purpose governments--independent school
districts with enrollment populations of less than 511 governmental
jurisdictions.''
36. Wired Telecommunications Carriers. The U.S. Census Bureau
defines this industry as establishments primarily engaged in operating
and/or providing access to transmission facilities and infrastructure
that they own and/or lease for the transmission of voice, data, text,
sound, and video using wired communications networks. Transmission
facilities may be based on a single technology or a combination of
technologies. Establishments in this industry use the wired
telecommunications network facilities that they operate to provide a
variety of services, such as wired telephony services, including VoIP
services, wired (cable) audio and video programming distribution, and
wired broadband internet services. By exception, establishments
providing satellite television distribution services using facilities
and infrastructure that they operate are included in this industry.
Wired Telecommunications Carriers are also referred to as wireline
carriers or fixed local service providers.
[[Page 38291]]
37. The SBA small business size standard for Wired
Telecommunications Carriers classifies firms having 1,500 or fewer
employees as small. U.S. Census Bureau data for 2017 shows that there
were 3,054 firms that operated in this industry for the entire year. Of
this number, 2,964 firms operated with fewer than 250 employees.
Additionally, based on Commission data in the 2021 Universal Service
Monitoring Report, as of December 31, 2020, there were 5,183 providers
that reported they were engaged in the provision of fixed local
services. Of these providers, the Commission estimates that 4,737
providers have 1,500 or fewer employees. Consequently, using the SBA's
small business size standard, most of these providers can be considered
small entities.
38. Local Exchange Carriers (LECs). Neither the Commission nor the
SBA has developed a size standard for small businesses specifically
applicable to local exchange services. Providers of these services
include both incumbent and competitive local exchange service
providers. Wired Telecommunications Carriers is the closest industry
with an SBA small business size standard. Wired Telecommunications
Carriers are also referred to as wireline carriers or fixed local
service providers. The SBA small business size standard for Wired
Telecommunications Carriers classifies firms having 1,500 or fewer
employees as small. U.S. Census Bureau data for 2017 shows that there
were 3,054 firms that operated in this industry for the entire year. Of
this number, 2,964 firms operated with fewer than 250 employees.
Additionally, based on Commission data in the 2021 Universal Service
Monitoring Report, as of December 31, 2020, there were 5,183 providers
that reported they were fixed local exchange service providers. Of
these providers, the Commission estimates that 4,737 providers have
1,500 or fewer employees. Consequently, using the SBA's small business
size standard, most of these providers can be considered small
entities.
39. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the
Commission nor the SBA have developed a small business size standard
specifically for incumbent local exchange carriers. Wired
Telecommunications Carriers is the closest industry with an SBA small
business size standard. The SBA small business size standard for Wired
Telecommunications Carriers classifies firms having 1,500 or fewer
employees as small. U.S. Census Bureau data for 2017 shows that there
were 3,054 firms in this industry that operated for the entire year. Of
this number, 2,964 firms operated with fewer than 250 employees.
Additionally, based on Commission data in the 2021 Universal Service
Monitoring Report, as of December 31, 2020, there were 1,227 providers
that reported they were incumbent local exchange service providers. Of
these providers, the Commission estimates that 929 providers have 1,500
or fewer employees. Consequently, using the SBA's small business size
standard, the Commission estimates that the majority of incumbent local
exchange carriers can be considered small entities.
40. Competitive Local Exchange Carriers (LECs). Neither the
Commission nor the SBA has developed a size standard for small
businesses specifically applicable to local exchange services.
Providers of these services include several types of competitive local
exchange service providers. Wired Telecommunications Carriers is the
closest industry with an SBA small business size standard. The SBA
small business size standard for Wired Telecommunications Carriers
classifies firms having 1,500 or fewer employees as small. U.S. Census
Bureau data for 2017 shows that there were 3,054 firms that operated in
this industry for the entire year. Of this number, 2,964 firms operated
with fewer than 250 employees. Additionally, based on Commission data
in the 2021 Universal Service Monitoring Report, as of December 31,
2020, there were 3,956 providers that reported they were competitive
local exchange service providers. Of these providers, the Commission
estimates that 3,808 providers have 1,500 or fewer employees.
Consequently, using the SBA's small business size standard, most of
these providers can be considered small entities.
41. Interexchange Carriers (IXCs). Neither the Commission nor the
SBA have developed a small business size standard specifically for
Interexchange Carriers. Wired Telecommunications Carriers is the
closest industry with an SBA small business size standard. The SBA
small business size standard for Wired Telecommunications Carriers
classifies firms having 1,500 or fewer employees as small. U.S. Census
Bureau data for 2017 shows that there were 3,054 firms that operated in
this industry for the entire year. Of this number, 2,964 firms operated
with fewer than 250 employees. Additionally, based on Commission data
in the 2021 Universal Service Monitoring Report, as of December 31,
2020, there were 151 providers that reported they were engaged in the
provision of interexchange services. Of these providers, the Commission
estimates that 131 providers have 1,500 or fewer employees.
Consequently, using the SBA's small business size standard, the
Commission estimates that the majority of providers in this industry
can be considered small entities.
42. Prepaid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business size standard specifically for
prepaid calling card providers. Telecommunications Resellers is the
closest industry with an SBA small business size standard. The
Telecommunications Resellers industry comprises establishments engaged
in purchasing access and network capacity from owners and operators of
telecommunications networks and reselling wired and wireless
telecommunications services (except satellite) to businesses and
households. Establishments in this industry resell telecommunications;
they do not operate transmission facilities and infrastructure. Mobile
virtual network operators (MVNOs) are included in this industry. The
SBA small business size standard for Telecommunications Resellers
classifies a business as small if it has 1,500 or fewer employees. U.S.
Census Bureau data for 2017 shows that 1,386 firms in this industry
provided resale services for the entire year. Of that number, 1,375
firms operated with fewer than 250 employees. Additionally, based on
Commission data in the 2021 Universal Service Monitoring Report, as of
December 31, 2020, there were 58 providers that reported they were
engaged in the provision of payphone services. Of these providers, the
Commission estimates that 57 providers have 1,500 or fewer employees.
Consequently, using the SBA's small business size standard, most of
these providers can be considered small entities.
43. Local Resellers. Neither the Commission nor the SBA have
developed a small business size standard specifically for Local
Resellers. Telecommunications Resellers is the closest industry with an
SBA small business size standard. The Telecommunications Resellers
industry comprises establishments engaged in purchasing access and
network capacity from owners and operators of telecommunications
networks and reselling wired and wireless telecommunications services
(except satellite) to businesses and households. Establishments in this
industry resell telecommunications; they do not
[[Page 38292]]
operate transmission facilities and infrastructure. Mobile virtual
network operators (MVNOs) are included in this industry. The SBA small
business size standard for Telecommunications Resellers classifies a
business as small if it has 1,500 or fewer employees. U.S. Census
Bureau data for 2017 shows that 1,386 firms in this industry provided
resale services for the entire year. Of that number, 1,375 firms
operated with fewer than 250 employees. Additionally, based on
Commission data in the 2021 Universal Service Monitoring Report, as of
December 31, 2020, there were 293 providers that reported they were
engaged in the provision of local resale services. Of these providers,
the Commission estimates that 289 providers have 1,500 or fewer
employees. Consequently, using the SBA's small business size standard,
most of these providers can be considered small entities.
44. Toll Resellers. Neither the Commission nor the SBA have
developed a small business size standard specifically for Toll
Resellers. Telecommunications Resellers is the closest industry with an
SBA small business size standard. The Telecommunications Resellers
industry comprises establishments engaged in purchasing access and
network capacity from owners and operators of telecommunications
networks and reselling wired and wireless telecommunications services
(except satellite) to businesses and households. Establishments in this
industry resell telecommunications; they do not operate transmission
facilities and infrastructure. Mobile virtual network operators (MVNOs)
are included in this industry. The SBA small business size standard for
Telecommunications Resellers classifies a business as small if it has
1,500 or fewer employees. U.S. Census Bureau data for 2017 shows that
1,386 firms in this industry provided resale services for the entire
year. Of that number, 1,375 firms operated with fewer than 250
employees. Additionally, based on Commission data in the 2021 Universal
Service Monitoring Report, as of December 31, 2020, there were 518
providers that reported they were engaged in the provision of toll
services. Of these providers, the Commission estimates that 495
providers have 1,500 or fewer employees. Consequently, using the SBA's
small business size standard, most of these providers can be considered
small entities.
45. Other Toll Carriers. Neither the Commission nor the SBA has
developed a definition for small businesses specifically applicable to
Other Toll Carriers. This category includes toll carriers that do not
fall within the categories of interexchange carriers, operator service
providers, prepaid calling card providers, satellite service carriers,
or toll resellers. Wired Telecommunications Carriers is the closest
industry with an SBA small business size standard. The SBA small
business size standard for Wired Telecommunications Carriers classifies
firms having 1,500 or fewer employees as small. U.S. Census Bureau data
for 2017 shows that there were 3,054 firms in this industry that
operated for the entire year. Of this number, 2,964 firms operated with
fewer than 250 employees. Additionally, based on Commission data in the
2021 Universal Service Monitoring Report, as of December 31, 2020,
there were 115 providers that reported they were engaged in the
provision of other toll services. Of these providers, the Commission
estimates that 113 providers have 1,500 or fewer employees.
Consequently, using the SBA's small business size standard, most of
these providers can be considered small entities.
46. Wireless Telecommunications Carriers (except Satellite). This
industry comprises establishments engaged in operating and maintaining
switching and transmission facilities to provide communications via the
airwaves. Establishments in this industry have spectrum licenses and
provide services using that spectrum, such as cellular services, paging
services, wireless internet access, and wireless video services. The
SBA size standard for this industry classifies a business as small if
it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 shows
that there were 2,893 firms in this industry that operated for the
entire year. Of that number, 2,837 firms employed fewer than 250
employees. Additionally, based on Commission data in the 2021 Universal
Service Monitoring Report, as of December 31, 2020, there were 797
providers that reported they were engaged in the provision of wireless
services. Of these providers, the Commission estimates that 715
providers have 1,500 or fewer employees. Consequently, using the SBA's
small business size standard, most of these providers can be considered
small entities.
47. Television Broadcasting. This industry is comprised of
``establishments primarily engaged in broadcasting images together with
sound.'' These establishments operate television broadcast studios and
facilities for the programming and transmission of programs to the
public. These establishments also produce or transmit visual
programming to affiliated broadcast television stations, which in turn
broadcast the programs to the public on a predetermined schedule.
Programming may originate in their own studio, from an affiliated
network, or from external sources. The SBA small business size standard
for this industry classifies businesses having $41.5 million or less in
annual receipts as small. The 2017 U.S. Census Bureau data indicates
that 744 firms in this industry operated for the entire year. Of that
number, 657 firms had revenue of less than $25,000,000. Based on this
data we estimate that the majority of television broadcasters are small
entities under the SBA small business size standard.
48. The Commission estimates that as of September 2021, there were
1,374 licensed commercial television stations, 384 licensed
noncommercial educational (NCE) television stations, 2,276 low power
television stations, including Class A stations (LPTV) and 3,106 TV
translator stations. The Commission however does not compile, and
otherwise does not have access to financial information for these
television broadcast stations that would permit it to determine how
many of these stations qualify as small entities under the SBA small
business size standard. Nevertheless, given the SBA's large annual
receipts threshold for this industry and the nature of television
station licensees, we presume that all of these entities qualify as
small entities under the above SBA small business size standard.
49. Radio Stations. This industry is comprised of ``establishments
primarily engaged in broadcasting aural programs by radio to the
public.'' Programming may originate in their own studio, from an
affiliated network, or from external sources. The SBA small business
size standard for this industry classifies firms having $41.5 million
or less in annual receipts as small. U.S. Census Bureau data for 2017
shows that 2,963 firms operated in this industry during that year. Of
this number, 1,879 firms operated with revenue of less than $25 million
per year. Based on this data and the SBA's small business size
standard, we estimate a majority of such entities are small entities.
50. The Commission estimates that as of September 2021, there were
4,519 licensed commercial AM radio stations, 6,682 licensed commercial
FM radio stations and 4,211 licensed noncommercial (NCE) FM radio
stations. The Commission however does not compile, and otherwise does
not have access to financial information for
[[Page 38293]]
these radio stations that would permit it to determine how many of
these stations qualify as small entities under the SBA small business
size standard. Nevertheless, given the SBA's large annual receipts
threshold for this industry and the nature of radio station licensees,
we presume that all of these entities qualify as small entities under
the above SBA small business size standard.
51. Cable Companies and Systems (Rate Regulation). The Commission
has developed its own small business size standard for the purpose of
cable rate regulation. Under the Commission's rules, a ``small cable
company'' is one serving 400,000 or fewer subscribers nationwide. Based
on available data, as of December 2020, there were approximately
45,308,192 basic cable video subscribers in the top Cable multiple
system operators (MSOs) in the United States. Only five cable operators
serving cable video subscribers in the top Cable MSOs had more than
400,000 subscribers. Accordingly, the Commission estimates that the
majority of cable operators are small.
52. Cable System Operators (Telecom Act Standard). The
Communications Act of 1934, as amended, contains a size standard for
small cable system operators, which classifies ``a cable operator that,
directly or through an affiliate, serves in the aggregate fewer than
one percent of all subscribers in the United States and is not
affiliated with any entity or entities whose gross annual revenues in
the aggregate exceed $250,000,000,'' as small. As of December 2020,
there were approximately 45,308,192 basic cable video subscribers in
the top Cable MSOs in the United States. Accordingly, an operator
serving fewer than 453,082 subscribers shall be deemed a small operator
if its annual revenues, when combined with the total annual revenues of
all its affiliates, do not exceed $250 million in the aggregate. Based
on available data, all but five of the cable operators in the Top Cable
MSOs have less than 453,082 subscribers and can be considered small
entities under this size standard. We note however, that the Commission
neither requests nor collects information on whether cable system
operators are affiliated with entities whose gross annual revenues
exceed $250 million. Therefore, we are unable at this time to estimate
with greater precision the number of cable system operators that would
qualify as small cable operators under the definition in the
Communications Act.
53. Direct Broadcast Satellite (DBS) Service. DBS service is a
nationally distributed subscription service that delivers video and
audio programming via satellite to a small parabolic ``dish'' antenna
at the subscriber's location. DBS is included in the Wired
Telecommunications Carriers industry which comprises establishments
primarily engaged in operating and/or providing access to transmission
facilities and infrastructure that they own and/or lease for the
transmission of voice, data, text, sound, and video using wired
telecommunications networks. Transmission facilities may be based on a
single technology or combination of technologies. Establishments in
this industry use the wired telecommunications network facilities that
they operate to provide a variety of services, such as wired telephony
services, including VoIP services, wired (cable) audio and video
programming distribution; and wired broadband internet services. By
exception, establishments providing satellite television distribution
services using facilities and infrastructure that they operate are
included in this industry.
54. The SBA small business size standard for Wired
Telecommunications Carriers classifies firms having 1,500 or fewer
employees as small. U.S. Census Bureau data for 2017 shows that 3,054
firms operated in this industry for the entire year. Of this number,
2,964 firms operated with fewer than 250 employees. Based on this data,
the majority of firms in this industry can be considered small under
the SBA small business size standard. According to Commission data
however, only two entities provide DBS service--DIRECTV (owned by AT&T)
and DISH Network, which require a great deal of capital for operation.
DIRECTV and DISH Network both exceed the SBA size standard for
classification as a small business. Therefore, we must conclude based
on internally developed Commission data, in general DBS service is
provided only by large firms.
55. Satellite Telecommunications. This industry comprises firms
``primarily engaged in providing telecommunications services to other
establishments in the telecommunications and broadcasting industries by
forwarding and receiving communications signals via a system of
satellites or reselling satellite telecommunications.'' Satellite
telecommunications service providers include satellite and earth
station operators. The SBA small business size standard for this
industry classifies a business with $35 million or less in annual
receipts as small. U.S. Census Bureau data for 2017 shows that 275
firms in this industry operated for the entire year. Of this number,
242 firms had revenue of less than $25 million. Additionally, based on
Commission data in the 2021 Universal Service Monitoring Report, as of
December 31, 2020, there were 71 providers that reported they were
engaged in the provision of satellite telecommunications services. Of
these providers, the Commission estimates that approximately 48
providers have 1,500 or fewer employees. Consequently, using the SBA's
small business size standard, a little more than of these providers can
be considered small entities.
56. All Other Telecommunications. This industry is comprised of
establishments primarily engaged in providing specialized
telecommunications services, such as satellite tracking, communications
telemetry, and radar station operation. This industry also includes
establishments primarily engaged in providing satellite terminal
stations and associated facilities connected with one or more
terrestrial systems and capable of transmitting telecommunications to,
and receiving telecommunications from, satellite systems. Providers of
internet services (e.g., dial-up ISPs) or voice over internet protocol
(VoIP) services, via client-supplied telecommunications connections are
also included in this industry. The SBA small business size standard
for this industry classifies firms with annual receipts of $35 million
or less as small. U.S. Census Bureau data for 2017 shows that there
were 1,079 firms in this industry that operated for the entire year. Of
those firms, 1,039 had revenue of less than $25 million. Based on this
data, the Commission estimates that the majority of ``All Other
Telecommunications'' firms can be considered small.
57. RespOrgs. Responsible Organizations, or RespOrgs (also referred
to as Toll-Free Number (TFN) providers), are entities chosen by toll
free subscribers to manage and administer the appropriate records in
the toll-free Service Management System for the toll-free subscriber.
Based on information on the website of SOMOS, the entity that maintains
a registry of Toll-Free Number providers (SMS/800 TFN Registry) for the
more than 42 million Toll-Free numbers in North America, and the TSS
Registry, a centralized registry for the use of Toll-Free Numbers in
text messaging and multimedia services, there were approximately 446
registered RespOrgs/Toll-Free Number providers in July 2021. RespOrgs
are often wireline carriers, however they can include non-carrier
entities. Accordingly, the
[[Page 38294]]
description below for RespOrgs include both Carrier RespOrgs and Non-
Carrier RespOrgs.
58. Carrier RespOrgs. Neither the Commission nor the SBA have
developed a small business size standard for Carrier RespOrgs. Wired
Telecommunications Carriers, and Wireless Telecommunications Carriers
(except Satellite) are the closest industries with an SBA small
business size applicable to Carrier RespOrgs.
59. Wired Telecommunications Carriers are establishments primarily
engaged in operating and/or providing access to transmission facilities
and infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired communications
networks. Transmission facilities may be based on a single technology
or a combination of technologies. Establishments in this industry use
the wired telecommunications network facilities that they operate to
provide a variety of services, such as wired telephony services,
including VoIP services, wired (cable) audio and video programming
distribution, and wired broadband internet services. By exception,
establishments providing satellite television distribution services
using facilities and infrastructure that they operate are included in
this industry. The SBA small business size standard for this industry
classifies a business as small if it has 1,500 or fewer employees. U.S.
Census Bureau data for 2017 shows that there were 3,054 firms that
operated for the entire year. Of this number, 2,964 firms operated with
fewer than 250 employees. Based on that data, we conclude that the
majority of Carrier RespOrgs that operated with wireline-based
technology are small.
60. Wireless Telecommunications Carriers (except Satellite) engage
in operating and maintaining switching and transmission facilities to
provide communications via the airwaves. Establishments in this
industry have spectrum licenses and provide services using that
spectrum, such as cellular services, paging services, wireless internet
access, and wireless video services. The SBA small business size
standard for this industry classifies a business as small if it has
1,500 or fewer employees. For this industry, U.S. Census Bureau data
for 2017 shows that there were 2,893 firms that operated for the entire
year. Of this number, 2,837 firms employed fewer than 250 employees.
Based on this data, we conclude that the majority of Carrier RespOrgs
that operated with wireless-based technology are small.
61. Non-Carrier RespOrgs. Neither the Commission, nor the SBA have
developed a small business size standard Non-Carrier RespOrgs. Other
Services Related to Advertising and Other Management Consulting
Services are the closest industries with an SBA small business size
applicable to Non-Carrier RespOrgs.
62. The Other Services Related to Advertising industry contains
establishments primarily engaged in providing advertising services
(except advertising agency services, public relations agency services,
media buying agency services, media representative services, display
advertising services, direct mail advertising services, advertising
material distribution services, and marketing consulting services). The
SBA small business size standard for this industry classifies a
business as small that has annual receipts of $16.5 million or less.
U.S. Census Bureau data for 2017 shows that 5,650 firms operated in
this industry for the entire year. Of that number, 3,693 firms operated
with revenue of less than $10 million. Based on this data, we conclude
that a majority of non-carrier RespOrgs who provide TFN-related
management consulting services are small.
63. The Other Management Consulting Services industry contains
establishments primarily engaged in providing management consulting
services (except administrative and general management consulting;
human resources consulting; marketing consulting; or process, physical
distribution, and logistics consulting). Establishments providing
telecommunications or utilities management consulting services are
included in this industry. The SBA small business size standard for
this industry classifies a business as small if it has annual receipts
of $16.5 million or less. U.S. Census Bureau data for 2017 shows that
4,696 firms operated in this industry for the entire year. Of that
number, 3,700 firms had revenue of less than $10 million. Based on this
data, we conclude that a majority of non-carrier RespOrgs who provide
TFN-related management consulting services are small.
E. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
64. The Report and Order does not adopt any new reporting,
recordkeeping, or other compliance requirements.
F. Steps Taken To Minimize Significant Economic Impact on Small
Entities and Significant Alternatives Considered
65. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its approach, which may
include the following four alternatives, among others: (1) the
establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities;
(3) the use of performance, rather than design, standards; and (4) an
exemption from coverage of the rule, or any part thereof, for small
entities.
66. In the Report and Order, the Commission adopted a methodology
for calculating the regulatory fee for small satellites (a type of non-
geostationary orbit space station) at a much lower amount than non-
geostationary orbit space stations are assessed. This was designed to
allow small satellites, which may be licensed by small entities, to
operate without the financial burden of the alternative, i.e., paying
the regulatory fee for non-geostationary orbit space stations. This new
methodology was adopted specifically to minimize the economic burden
for these small satellite systems. The Commission considered other
options raised by commenters to calculate the regulatory fee for small
satellites but ultimately determined, based on the record, that the
adopted methodology best recognizes the limited regulatory work
associated with small satellite licenses and results in a relatively
low regulatory fee for small satellites.
67. Additionally, the Commission has minimized the economic impact
on small entities by adopting a de minimis threshold under the section
9(e)(2) exemption in the Communications Act. Under the section 9(e)(2)
exemption of the Communications Act, a regulatee is exempt from paying
regulatory fees if the sum total of all of its annual regulatory fee
liabilities is $1,000 or less for the fiscal year. The threshold
applies only to annual regulatory fees, not regulatory fees paid
through multi-year filings.
G. Report to Congress
68. The Commission will send a copy of the Report and Order and
Notice of Proposed Rulemaking, including this FRFA, in a report to be
sent to Congress and the Government Accountability Office pursuant to
the Small Business Regulatory Enforcement Fairness Act of
[[Page 38295]]
1996. In addition, the Commission will send a copy of the Report and
Order and Notice of Proposed Rulemaking, including the FRFA, to the
Chief Counsel for Advocacy of the Small Business Administration. A copy
of the Report and Order and Notice of Proposed Rulemaking and FRFA (or
summaries thereof) will also be published in the Federal Register.
IV. Ordering Clauses
69. Accordingly, it is ordered that, pursuant to sections 47 U.S.C.
4(i), 4(j), 9, 9A, and 303(r) of the Communications Act of 1934, as
amended, 47 U.S.C. 154(i), 154(j), 159, 159A, and 303(r), the Report
and Order is hereby adopted.
70. It is further ordered that paragraphs 21-42 of this document
adopting the small satellite fee methodology shall be effective on
September 1, 2022.
71. It is further ordered that the Commission shall send a copy of
the Report and Order, including the Final Regulatory Flexibility
Analysis and the Initial Regulatory Flexibility Analysis, in a report
to be sent to the Congress and the Government Accountability Office
pursuant to the Congressional Review Act, 5 U.S.C. 801(a)(1)(A).
72. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of the Report and Order and Final Regulatory Flexibility Analysis
to the Chief Counsel for Advocacy of the Small Business Administration.
Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2022-13439 Filed 6-27-22; 8:45 am]
BILLING CODE 6712-01-P
</pre></body>
</html>Indexed from Federal Register on June 28, 2022.
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