Rule2024-16348
Assessment and Collection of Space and Earth Station Regulatory Fees for Fiscal Year 2024; Review of the Commission's Assessment and Collection of Regulatory Fees for Fiscal Year 2024
Primary source
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Published
July 26, 2024
Effective
September 13, 2024
Issuing agencies
Federal Communications Commission
Abstract
In this document, the Federal Communications Commission (Commission or FCC) adopted a new methodology for assessing annual regulatory fees for small satellites and spacecraft, and included space stations that are principally used for Rendezvous & Proximity Operations (RPO) or On-Orbit Servicing (OOS), including Orbit Transfer Vehicles (OTV), in the existing fee category for "small satellites" on an interim basis until the Commission can develop more experience in how these space stations will be regulated. These changes are intended to be effective for fiscal year (FY) 2024.
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[Federal Register Volume 89, Number 144 (Friday, July 26, 2024)]
[Rules and Regulations]
[Pages 60572-60578]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-16348]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket No. 24-85; MD Docket No. 24-86; FCC 24-70; FR ID 232437]
Assessment and Collection of Space and Earth Station Regulatory
Fees for Fiscal Year 2024; Review of the Commission's Assessment and
Collection of Regulatory Fees for Fiscal Year 2024
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, the Federal Communications Commission
(Commission or FCC) adopted a new methodology for assessing annual
regulatory fees for small satellites and spacecraft, and included space
stations that are principally used for Rendezvous & Proximity
Operations (RPO) or On-Orbit Servicing (OOS), including Orbit Transfer
Vehicles (OTV), in the existing fee category for ``small satellites''
on an interim basis until the Commission can develop more experience in
how these space stations will be regulated. These changes are intended
to be effective for fiscal year (FY) 2024.
DATES: Effective on September 13, 2024.
FOR FURTHER INFORMATION CONTACT: Stephen Duall, Space Bureau, at (202)
418-1103 or <a href="/cdn-cgi/l/email-protection#f3a08796839b969dddb786929f9fb3959090dd949c85"><span class="__cf_email__" data-cfemail="b9eacddcc9d1dcd797fdccd8d5d5f9dfdada97ded6cf">[email protected]</span></a>; Roland Helvajian, Office of the
Managing Director, at (202) 418-0444 or <a href="/cdn-cgi/l/email-protection#693b060508070d47210c051f0803000807290f0a0a470e061f"><span class="__cf_email__" data-cfemail="e4b68b88858a80caac818892858e8d858aa4828787ca838b92">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order in MD Docket No. 24-85 and MD Docket No. 24-86, FCC 24-70,
adopted and released on June 13, 2024 (Report and Order). The full text
of this document is available at <a href="https://www.fcc.gov/document/fcc-changes-certain-space-station-regulatory-fees-fy-2024">https://www.fcc.gov/document/fcc-changes-certain-space-station-regulatory-fees-fy-2024</a>.
Final Regulatory Flexibility Analysis. The Regulatory Flexibility
Act of 1980, as amended (RFA), requires that an agency prepare a
regulatory flexibility analysis for notice and comment rulemakings,
unless the agency certifies that ``the rule will not, if promulgated,
have a significant economic impact on a substantial number of small
entities.'' The Commission has prepared an Final Regulatory Flexibility
Analysis (FRFA) concerning the potential impact of the proposed rule
and policy changes contained in the Report and Order. The FRFA is set
forth in the appendix of the FCC Document <a href="https://www.fcc.gov/document/fcc-changes-certain-space-station-regulatory-fees-fy-2024">https://www.fcc.gov/document/fcc-changes-certain-space-station-regulatory-fees-fy-2024</a> and a summary
is included in the Procedural Matters section below.
Synopsis
I. Introduction
Pursuant to section 9 of the Communications Act of 1934, as
amended, (Communications Act or Act), the Commission adopts a
methodology change for one category of fee payors and include a type of
space station in an existing category on an interim basis. These
changes will be effective for the fiscal year 2024 (FY 2024) assessment
and collection of regulatory fees. Specifically, the Commission adopts
a new methodology for assessing regulatory fees for small satellites
and spacecraft licensed under Sec. Sec. 25.122 and 25.123 of the
Commission's rules, and include space stations that are principally
used for Rendezvous & Proximity Operations (RPO) or On-Orbit Servicing
(OOS), including Orbit Transfer Vehicles (OTV), in the existing fee
category for ``small satellites'' on an interim basis until the
Commission can develop more experience in how these space stations will
be regulated. The Commission finds that these changes better serve the
requirements and purpose of section 9 of the Act, and there is
unopposed support in the record for adoption of these two proposals in
time for the changes to be effective for FY 2024.
The Commission defers action on other proposals made in the Notice
of Proposed Rulemaking (89 FR 20582, March 25, 2024) that the
Commission adopted in March 2024 (Space and Earth Station Regulatory
Fees NPRM). The Commission is continuing to consider the other
proposals in light of the record received on those issues and will
decide which, if any, may benefit from further development of the
record. It anticipates acting on the remaining proposals in the Space
and Earth Station Regulatory Fees NPRM in the near term.
II. Background
Section 9 of the Act obligates the Commission to assess and collect
regulatory fees each year in an amount that can reasonably be expected
to equal the amount of its annual salaries and expenses (S&E)
appropriation. Thus, the Commission has no discretion regarding the
total amount to be collected in any given fiscal year. In accordance
with the statute, each year the Commission proposes adjustments to the
prior fee schedule under section 9(c) to ``(A) reflect unexpected
increases or decreases in the number of units subject to the payment of
such fees; and (B) result in the collection of the amount required'' by
the Commission's annual appropriation. The Commission will also propose
amendments to the fee schedule under section 9(d) ``if the Commission
determines that the schedule requires amendment so that such fees
reflect the full-time equivalent number of employees within the bureaus
and offices of the Commission, adjusted to take into account factors
that are reasonably related to the benefits provided to the payor of
the fee by the Commission's activities.'' In administering its
regulatory fee program, the agency strives to adhere to the goals of
ensuring that the program is fair, administrable, and sustainable.
The Commission released the Space and Earth Station Regulatory Fees
NPRM on March 13, 2024, which initiated an examination and review of
regulatory fees for space and earth station payors that are regulated
by the new Space Bureau. When the Commission adopted regulatory fees
for FY 2023, it noted that it would be the last year for doing so using
the nomenclature of certain fee payors being regulated by the
International Bureau. The Commission noted that the creation of the
Space Bureau and Office of International Affairs could result in
changes in the assessment of regulatory fees for space and earth
station fee payors resulting from changes in Full Time Equivalents
(FTEs), due to increased oversight on various relevant industries. The
Commission anticipated that the changes in the industry that resulted
in the creation of the Space Bureau would likely also result in changes
in the relative FTE burdens between and among space and earth station
fee payors. Accordingly, the Commission sought comment in the Space and
Earth Station Regulatory Fees NPRM on a range of proposed changes
related to the assessment of regulatory fees for space and earth
stations under the Commission's existing regulatory fee methodology, as
well as under a proposed alternative methodology for assessing space
station regulatory fees.
The Commission received 16 comments and 17 reply comments in
response to the Space and Earth Station Regulatory Fees NPRM. In
addition, several entities made presentations to the Commission
pursuant to its rules governing ex parte communications.
In addition, on June 13, 2024, the Commission released the Second
Notice of Proposed Rulemaking in MD Docket No. 24-86 (89 FR 53276, June
25, 2024), seeking comment on the Commission's proposed methodology and
regulatory
[[Page 60573]]
fees for FY 2024 (FY 2024 Regulatory Fees NPRM). The FY 2024 Regulatory
Fees NPRM does not seek comment again on the methodology for assessing
space and earth station regulatory fees; rather, it seeks comment on
the proposed regulatory fee rates for space and earth station payors
for FY 2024 that were based on the existing methodology used in FY 2023
and also the proposals set forth in the Space and Earth Station
Regulatory Fees NPRM. The proposed regulatory fee rates are set forth
in appendices A, B, and E of the FY 2024 Regulatory Fees NPRM.
III. Discussion
The Commission adopts two proposals made in the Space and Earth
Station Regulatory Fees NPRM: amending the methodology for assessing
fees for small satellites, and including space stations that are
principally used for RPO or OOS, as well as OTVs, in the existing fee
category for ``small satellites'' on an interim basis. Commenters
express strong support in the record for adoption of these two
proposals, and no comments oppose adoption of these proposals.
Accordingly, the Commission adopts these proposals to be effective for
FY 2024.
A. Adoption of New Methodology for Assessing Fees for Small Satellites
The Commission adopts the proposal in the Space and Earth Station
Regulatory Fees NPRM to set the regulatory fee for ``Space Stations
(per license/call sign in non-geostationary orbit) (47 CFR part 25)
(Small Satellite)'' for FY 2024 at the level set for FY 2023 ($12,215),
with annual adjustments thereafter to reflect the percentage change in
the FCC appropriation, unit count, and FTE allocation percentage from
the previous fiscal year. Comments received in response to the Space
and Earth Station Regulatory Fees NPRM support adoption of this
proposal, and no party opposes it.
As observed in the Space and Earth Station Regulatory Fees NPRM,
the small satellite fee rate is currently calculated by taking the
average of the calculated fee rate for space stations in the Space
Stations (Non-Geostationary Orbit)--Other (``NGSO-Other'') and Space
Stations (Non-Geostationary Orbit)--Less Complex (``NGSO-Less
Complex'') categories, multiplying this average by 5% (1/20) and
rounding it to the nearest $5. The small satellite fee rate is then
multiplied by the number of small satellite units and deducted from the
share of space station regulatory fees allocated to non-geostationary
orbit (NGSO) space stations. This remaining amount is then divided
between NGSO-Other and NGSO-Less Complex based on an 80/20 split and
reduced from the target goals of NGSO-Other and NGSO-Less Complex
respectively. Because the small satellite fee is based on the fees
assessed for NGSO-Other and NGSO-Less Complex categories, the increased
fees expected for these two categories could lead to greatly increased
fees for the small satellite regulatory fee category beginning in FY
2024 if the current method for assessing regulatory fees for small
satellites is unchanged.
As the Space and Earth Station Regulatory Fees NPRM noted, the FTE
burden arising from licensing and regulating small satellite matters
has not increased since FY 2023. The additional FTE resources allocated
to the Space Bureau are not intensively involved in the licensing and
regulatory oversight of small satellites. As a result, the overall
percentage of FTE burden for small satellites is less than the 1/20th
burden of NGSO space stations previously estimated. For this reason,
the Commission will continue to use the FY 2023 regulatory fee for FY
2024. It finds that the regulatory fee for small satellites established
for FY 2023 appropriately estimates the benefits received by such fee
payors from the FTEs spent on licensing and regulating small
satellites, without analyzing the FTE benefits as a proportion of
another category of space station. In addition, the proposals made in
the Space and Earth Station Regulatory Fees NPRM to create
subcategories within the NGSO-Other category for ``small'' and
``large'' constellations would add to the complexity of calculating the
appropriate share of FTE resources allocated to small satellites, if
those proposals were to be adopted. This added complexity does not
correspond to any additional benefit to the calculation of FTE
resources allocated to small satellites. Furthermore, separation of the
methodology for assessing regulatory fees for small satellites from the
regulatory fees for NGSO space stations permits freer consideration of
the appropriate regulatory fee categories for NGSO space stations
without necessitating consideration of potential unintended
consequences for small satellite fee payors.
For FY 2024, the Commission does not make any other changes to how
small satellite regulatory fees are incorporated into the existing
methodology for assessing space station regulatory fees. That is, it
will continue to multiply the per unit regulatory fee for small
satellites by the number of small satellite units for the fiscal year
and deduct this amount from the NGSO share of space station regulatory
fees, divided between NGSO-Other and NGSO-Less Complex based on an 80/
20 split and reduced from the target goals of NGSO-Other and NGSO-Less
Complex respectively. The Commission will implement the changes to the
methodology for assessing fees for small satellites made in the Report
and Order as part of the order adopting FCC-wide regulatory fees for FY
2024.
B. Interim Assessment of Regulatory Fees on RPO, OOS, and OTV as Small
Satellites
The Commission adopts the proposal made in the Space and Earth
Station Regulatory Fees NPRM to assess regulatory fees on spacecraft
primarily performing RPO and OOS by including them in the existing
regulatory fee category ``Space Stations (per license/call sign in non-
geostationary orbit) (Small Satellites),'' on an interim basis,
regardless of the orbit in which they are designed to operate. RPO and
OOS missions can include satellite refueling, inspecting and repairing
in-orbit spacecraft, capturing and removing debris, and transforming
materials through manufacturing while in space. The Commission also
concludes that it is appropriate to assess regulatory fees on OTVs in
the same manner. The record in this proceeding supports adoption of
these proposals, effective for FY 2024, and no party opposes adoption.
The Commission has previously adopted the following regulatory fee
categories for space stations: Space Stations (Geostationary Orbit);
Space Stations (Non-Geostationary Orbit)--Less Complex; Space Stations
(Non-Geostationary Orbit)--Other; and Space Station (Small Satellites).
Currently, due to the nascent nature of OOS and RPO industry, or more
generally ``in-space servicing'' industries, the Commission has not
adopted a distinct regulatory fee category for such operations, despite
that fact that spacecraft have begun to operate under part 25 of the
Commission's rules for radiocommunications while conducting these types
of operations. Previously, the Commission determined that the record
was insufficiently complete to adopt a separate regulatory fee category
for spacecraft performing OOS and RPO. In the Space and Earth Station
Regulatory Fees NPRM, the Commission explained that it is not
appropriate to assess regulatory fees on RPO, OOS, and OTV space
stations under existing regulatory fee categories for Space Stations
(Geostationary orbit) or Space Stations (Non-Geostationary Orbit)--
Other or Less Complex because the
[[Page 60574]]
regulatory burden of RPO, OOS, and OTV space stations is currently far
less than that of other geostationary orbit (GSO) and NGSO space
stations in those existing fee categories. As the Space and Earth
Station Regulatory Fees NPRM stated, the Commission believes that
further delay in addressing the appropriate regulatory fee is no longer
appropriate even where, as here, the Commission has not adopted a
separate regulatory category for this type of operation. The Commission
tentatively concluded in the Space and Earth Station Regulatory Fees
NPRM that the regulatory burden of RPO, OOS, and OTV space stations is
more similar to that presented by small satellite space station
licensees. For instance, these type of licensees are few in number and
involve a relatively small number of space stations that have limited
duration and scope of use, and operate using shared spectrum resources,
which require far fewer FTE resources to license and regulate. The
Commission adopts its tentative conclusion that the existing small
satellite regulatory fee category is the most appropriate category to
apply until such time as the Commission determines that separate fee
categories for RPO, OOS, and OTV space stations are appropriate.
Moreover, the Commission agrees with comments that it will be in a
better position to adopt separate new fee categories, if appropriate,
for RPO, OOS, and OTV space stations after it gains more experience
with their licensing and regulation.
Solely for the purpose of assessing regulatory fees, the Commission
will include space stations primarily performing RPO and OOS, as well
as OTVs, within the existing Space Stations (Small Satellite)
regulatory fee category, on an interim basis, rather than creating a
new regulatory fee category for RPO, OOS, and OTV space stations. The
International Bureau and Space Bureau have considered applications for
RPO, OOS, and OTV space stations and issued licenses for such space
stations under the existing regulatory framework of part 25 of the
Commission's rules, and such stations are already operational and
subject to payment of regulatory fees. Given this immediate need to
assess regulatory fees on RPO, OOS, and OTV space stations now and in
the near future, the Commission concludes that the purposes of section
9 of the Act would be best met by assessing regulatory fees on an
interim basis under the existing category of fees associated with the
least-burdensome set of space station regulatees. The Commission
believes this approach is preferable to waiting for additional
experience and, in the interim, potentially subjecting existing RPO,
OOS, and OTV space stations subject to regulatory fees that do not
reflect the amount of regulatory work required by these nascent
services. As the Commission gains more experience with the regulation
of RPO, OOS, OTV space stations, it will be in a better position to
decide if it should adopt a new, separate fee category for RPO, OOS,
and OTV space stations or make any further modifications.
The Commission also adopts the proposal to assess RPO, OOS, and OTV
space stations using the small satellite fee category regardless of the
orbit utilized. The Commission affirms the tentative conclusion in the
Space and Earth Station Regulatory Fees NPRM, and agrees with comments,
that the rationale for using the small satellite regulatory fee
category to assess fees on RPO, OOS, and OTV space stations applies
regardless of whether the RPO, OOS, or OTV space stations operate in
geostationary or non-geostationary orbit. The Commission also adopts
the proposal to assess the regulatory fee for RPO, OOS, and OTV space
stations on a ``per license/call sign'' basis as is the case for small
satellites payors, rather than on the ``per system'' basis used for
Space Stations (Non-geostationary Orbit). Although no party commented
on this proposal, the Commission concludes that the reasons that
supported assessing regulatory fees on small satellites on a ``per
license/call sign'' basis support treating RPO, OOS, and OTV space
stations in the same manner. The Commission will implement the changes
to the methodology for assessing fees for RPO, OOS, and OTV space
stations adopted in the Report and Order as part of the order adopting
FCC-wide regulatory fees for FY 2024.
The Commission declines, at this time, to assess regulatory fees on
all ``ISAM space stations'' using the small satellite fee category, as
proposed in some comments in this proceeding. In 2022, the Commission
initiated a Notice of Inquiry (87 FR 56365, September 14, 2022)
regarding the regulatory needs related to in-space servicing, assembly,
and manufacturing--or ``ISAM''--that could include such services as RPO
and OOS. The Commission has since adopted a Notice of Proposed
Rulemaking (89 FR 18875, March 15, 2024) seeking comment on a framework
for licensing ISAM space stations. That rulemaking proceeding, which is
considering the regulatory framework for such services, remains
pending. The Commission finds that it is premature to make a decision
regarding the assessment of regulatory fees on ISAM space stations for
which the definition and regulatory framework are still being
considered and for which there are no applications pending or licenses
issued. The Commission expects to revisit this issue in the future,
after conclusion of the ISAM rulemaking, when the framework and
expected FTE burdens for licensing and regulating ISAM space stations
are better known. In addition, although one commenter suggests that the
Commission more clearly define RPO, OOS, and OTV by their
characteristics in order to remove uncertainty by applicants with
regards to their expected regulatory fees, it declines to do so at this
time, because the proposed characteristics for defining RPO, OOS, and
OTV, such as limited duration of operations, ability to share spectrum,
and low number of stations, have not been defined in the Commission's
rules and are outside the scope of a regulatory fee proceeding. The
Commission also declines at this time to include missions involving
`habitable' or `crewed' space stations in the existing fee category for
small satellites, as proposed by one commenter, finding it is premature
to make a decision regarding the assessment of regulatory fees for
potential future types of space stations for which the FTE benefits are
not reasonably known and for which there are no applications pending or
licenses issued.
Finally, the Commission declines to address at this time the
proposal in the Space and Earth Station Regulatory Fees NPRM that RPO
or OOS space stations that are attached to another space station as
part of servicing or mission extension operations be assessed
regulatory fees separate from, and in addition to, any regulatory fees
assessed on the space station that is being serviced or that is having
its mission extended. The Commission had previously tentatively
concluded that RPO and OOS space stations joined to GSO space stations
during servicing or mission extension operations should not be assessed
separate regulatory fees, despite the RPO or OOS space stations being
assigned their own call signs, which is the unit usually used to assess
regulatory fees for space stations. Although this tentative conclusion
was never adopted, currently RPO or OOS space stations attached to
another space station have not been assessed separate regulatory fees.
The Space and Earth Station Regulatory Fees NPRM sought comment on this
prior tentative conclusion and suggested that the
[[Page 60575]]
requirements and purpose of section 9 of the Act would be better met by
assessing regulatory fees on such attached RPO or OOS space stations.
The Commission finds that consideration of this proposal would
benefit from consideration of and action on the proposal in the Space
and Earth Station Regulatory Fees NPRM to assess regulatory fees on all
authorized space stations, not just on operational space stations as is
currently the case because the rationale for assessing fees on
authorized stations would support the rationale for assessing
regulatory fees on RPO and OOS space stations regardless whether they
are attached to a serviced space station. Action on this issue may
benefit from the Commission's consideration of the proposal regarding
assessing regulatory fees on authorized, not just operational, space
stations. Thus, it plans to consider those matters at the same time in
a future Commission item acting on the proposals made in the Space and
Earth Station Regulatory Fees NPRM.
Final Regulatory Flexibility Analysis
As required by the Regulatory Flexibility Act of 1980, as amended
(RFA), an Initial Regulatory Flexibility Analysis (IRFA) was
incorporated in the Space and Earth Station Regulatory Fees NPRM. The
Commission sought written public comment on the proposals in the Space
and Earth Station Regulatory Fees NPRM, including comment on the IRFA.
No comments were filed addressing the IRFA. The Final Regulatory
Flexibility Analysis (FRFA) conforms to the RFA.
Need for, and Objectives of, the Report and Order
The Commission is required by Congress pursuant to section 9 of the
Act to assess and collect regulatory fees each year to recover the
regulatory costs associated with the Commission's oversight and
regulatory activities in an amount that can reasonably be expected to
equal the amount of its annual appropriation. As part of last year's
adoption of regulatory fees, the Commission noted that FY 2023 would be
the last year where the Commission will do so for the International
Bureau, given the creation of the Space Bureau, and Office of
International Affairs. The Commission also noted that an examination of
the regulatory fees, and categories for NGSO space stations would be
useful in light of changes resulting from the creation of the Space
Bureau, and as part of a more holistic review of the FTE burden of the
Space Bureau in fiscal year 2024 (FY 2024). The Space and Earth Station
Regulatory Fees NPRM commenced the examination and review of regulatory
fees for space and earth station payors regulated by the new Space
Bureau, specifically seeking comment on a range of proposed changes to
the assessment of regulatory fees for space and earth stations under
the existing methodology. The Space and Earth Station Regulatory Fees
NPRM also proposed an alternative methodology for assessing space
station regulatory fees that would eliminate the distinction between
GSO, NGSO, and all the subcategories of NGSO, while preserving a
separate fee category for small satellites.
In the Report and Order, the Commission adopts two changes to the
assessment and collection of its annual regulatory fees for space
station payors for FY 2024. The adopted changes implement a new
methodology for assessing fees for small satellites and spacecraft
licensed under Sec. Sec. 25.122 and 25.123 of the Commission's rules
that sets the regulatory fee for ``Space Stations (per license/call
sign in non-geostationary orbit) (47 CFR part 25) (Small Satellite)''
for FY 2024 and future fiscal years at the level set for FY 2023,
annually adjusted to reflect the percentage change in the appropriation
from the previous fiscal year. The Commission also implements a change
that includes, on an interim basis, space stations that are principally
used for RPO or OOS, including OTVs, in the existing fee category for
``small satellites'' until the Commission can develop more experience
in how these space stations will be regulated. The Commission defers
actions on other proposals contained in the Space and Earth Station
Regulatory Fees NPRM to allow for further development of the record and
expects to address these matters to be effective for FY 2025.
Summary of Significant Issues Raised by Public Comments in Response to
the IRFA
There were no comments filed that specifically addressed the
proposed rules and policies in the IRFA.
Response to Comments by the Chief Counsel for Advocacy of the Small
Business Administration
Pursuant to the Small Business Jobs Act of 2010, which amended the
RFA, the Commission is required to respond to any comments filed by the
Chief Counsel for Advocacy of the Small Business Administration (SBA),
and to provide a detailed statement of any change made to the proposed
rules as a result of those comments. The Chief Counsel did not file any
comments in response to the proposed rules or policies in this
proceeding.
Description and Estimate of the Number of Small Entities to Which the
Rules Will Apply
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 rules 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 SBA.
Small Businesses, Small Organizations, Small Governmental
Jurisdictions. The Commission's actions, over time, may affect small
entities that are not easily categorized at present. The Commission
therefore describes, at the outset, three broad groups of small
entities that could be directly affected. 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 33.2 million businesses.
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 2022, there were
approximately 530,109 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.
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 2022 Census of Governments indicate there were
90,837 local governmental jurisdictions
[[Page 60576]]
consisting of general purpose governments and special purpose
governments in the United States. Of this number, there were 36,845
general purpose governments (county, municipal, and town or township)
with populations of less than 50,000 and 11,879 special purpose
governments (independent school districts) with enrollment populations
of less than 50,000. Accordingly, based on the 2022 U.S. Census of
Governments data, the Commission estimates that at least 48,724
entities fall into the category of ``small governmental
jurisdictions.''
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.
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 show 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, the Commission must conclude based on internally
developed Commission data, in general DBS service is provided only by
large firms.
Fixed Satellite Small Transmit/Receive Earth Stations. Neither the
SBA nor the Commission have developed a small business size standard
specifically applicable to Fixed Satellite Small Transmit/Receive Earth
Stations. Satellite Telecommunications is the closest industry with an
SBA small business size standard. The SBA size standard for this
industry classifies a business as small if it has $38.5 million or less
in annual receipts. For this industry, U.S. Census Bureau data for 2017
show that there was a total of 275 firms that operated for the entire
year. Of this total, 242 firms had revenue of less than $25 million.
Additionally, based on Commission data in the 2022 Universal Service
Monitoring Report, as of December 31, 2021, there were 65 providers
that reported they were engaged in the provision of satellite
telecommunications services. Of these providers, the Commission
estimates that approximately 42 providers have 1,500 or fewer
employees. Consequently, using the SBA's small business size standard,
a little more than half of these providers can be considered small
entities.
Fixed Satellite Very Small Aperture Terminal (VSAT) Systems.
Neither the SBA nor the Commission have developed a small business size
standard specifically applicable to Fixed Satellite Very Small Aperture
Terminal (VSAT) Systems. A VSAT is a relatively small satellite antenna
used for satellite-based point-to-multipoint data communications
applications. VSAT networks provide support for credit verification,
transaction authorization, and billing and inventory management.
Satellite Telecommunications is the closest industry with an SBA small
business size standard. The SBA size standard for this industry
classifies a business as small if it has $38.5 million or less in
annual receipts. For this industry, U.S. Census Bureau data for 2017
show that there were a total of 275 firms that operated for the entire
year. Of this total, 242 firms had revenue of less than $25 million.
Additionally, based on Commission data in the 2022 Universal Service
Monitoring Report, as of December 31, 2021, there were 65 providers
that reported they were engaged in the provision of satellite
telecommunications services. Of these providers, the Commission
estimates that approximately 42 providers have 1,500 or fewer
employees. Consequently using the SBA's small business size standard, a
little more than half of these providers can be considered small
entities.
Home Satellite Dish (HSD) Service. HSD or the large dish segment of
the satellite industry is the original satellite-to-home service
offered to consumers and involves the home reception of signals
transmitted by satellites operating generally in the C-band frequency.
Unlike DBS, which uses small dishes, HSD antennas are between four and
eight feet in diameter and can receive a wide range of unscrambled
(free) programming and scrambled programming purchased from program
packagers that are licensed to facilitate subscribers' receipt of video
programming. Because HSD provides subscription services, HSD falls
within the industry category of Wired Telecommunications Carriers. 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 show that there were 3,054 firms that operated for
the entire year. Of this total, 2,964 firms operated with fewer than
250 employees. Thus, under the SBA size standard, the majority of firms
in this industry can be considered small.
Mobile Satellite Earth Stations. Neither the SBA nor the Commission
have developed a small business size standard specifically applicable
to Mobile Satellite Earth Stations. Satellite Telecommunications is the
closest industry with a SBA small business size standard. The SBA small
business size standard classifies a business with $38.5 million or less
in annual receipts as small. For this industry, U.S. Census Bureau data
for 2017 show that there were 275 firms that operated for the entire
year. Of this number, 242 firms had revenue of less than $25 million.
Thus, for this industry under the SBA size standard, the Commission
estimates that the majority of Mobile Satellite Earth Station licensees
are small entities. Additionally, based on Commission data as of
February 1, 2024, there were 16 Mobile Satellite Earth Stations
licensees. The Commission does not request nor collect annual revenue
information, and is therefore unable to estimate the number of mobile
satellite earth stations that would be classified as a small business
under the SBA size standard.
Satellite Master Antenna Television (SMATV) Systems, also known as
Private Cable Operators (PCOs). SMATV systems or PCOs are video
distribution facilities that use closed transmission paths without
using any public right-of-way. They acquire video programming and
distribute it via terrestrial wiring in urban and suburban multiple
dwelling units such as apartments and condominiums, and commercial
multiple tenant units such as hotels and
[[Page 60577]]
office buildings. SMATV systems or PCOs are included in the Wired
Telecommunications Carriers' industry which includes wireline
telecommunications businesses. 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 show that
there were 3,054 firms in this industry that operated for the entire
year. Of this total, 2,964 firms operated with fewer than 250
employees. Thus, under the SBA size standard, the majority of firms in
this industry can be considered small.
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 $38.5 million or less in annual
receipts as small. U.S. Census Bureau data for 2017 show 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 2022 Universal Service Monitoring Report, as of
December 31, 2021, there were 65 providers that reported they were
engaged in the provision of satellite telecommunications services. Of
these providers, the Commission estimates that approximately 42
providers have 1,500 or fewer employees. Consequently, using the SBA's
small business size standard, a little more than half of these
providers can be considered small entities.
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 show 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.
Description of Projected Reporting, Recordkeeping and Other Compliance
Requirements for Small Entities
The Report and Order does not change the Commission's current
information collection, reporting, recordkeeping, or compliance
requirements for small entities. Small and other regulated entities are
required to pay regulatory fees on an annual basis. The cost of
compliance with the annual regulatory assessment for small entities is
the amount assessed for their regulatory fee category and should not
require small entities to hire professionals to comply.
Small entities that qualify can take advantage of the exemption
from payment of regulatory fees allowed under the de minimis threshold.
As discussed in the Space and Earth Station Regulatory Fees NPRM, small
entities may also request a waiver, reduction, deferral, and/or
installment payment of their regulatory fees. The waiver process
provides smaller entities that may not be familiar with the
Commission's procedural filing rules an easier filing process.
Steps Taken To Minimize the Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
The RFA requires an agency to provide ``a description of the steps
the agency has taken to minimize the significant economic impact on
small entities . . . including a statement of the factual, policy, and
legal reasons for selecting the alternative adopted in the final rule
and why each one of the other significant alternatives to the rule
considered by the agency which affect the impact on small entities was
rejected.''
In the Report and Order, the Commission adopts the proposal in the
Space and Earth Station Regulatory Fees NPRM to set the regulatory fee
for ``Space Stations (per license/call sign in non-geostationary order)
(47 CFR part 25) (Small Satellite)'' for FY 2024 at the level set for
FY 2023 ($12,215), with annual adjustments thereafter to reflect the
percentage change in the FCC appropriation, unit count, and FTE
allocation percentage from the previous year. The Report and Order
finds that the administrability and sustainability of regulatory fees
for small satellites would be better served by treating them as the
Commission has historically treated the regulatory fees for earth
stations--that is, a fixed regulatory fee that is adjusted from year-
to-year on, rather than as a percentage of the Space Bureau's overall
share of regulatory fee allocation, or as a percentage of other
categories of space station fee payors. This change would significantly
minimize the economic impact of regulatory fees potentially faced by
small satellites. Without this change, the fee amount for the small
satellite category for FY 2024 could be substantially greater than the
fee assessed for FY 2023. Further, the record contains no objections to
this approach.
The Report and Order also adopts the proposal, to assess regulatory
fees on spacecraft primarily performing RPO and OOS, including OTV, by
including them, on an interim basis, in the existing regulatory fee
category ``Space Stations (per license/call sign in non-geostationary
orbit) (Small Satellites)'' regardless of the orbit in which they are
designed to operate in. The record in this proceeding not only supports
this proposal, but no commenting party opposed it. The Space Bureau has
received relatively few applications for RPO, OOS, or OTV space
stations, and although it anticipates receiving more in the near
future, the amount of FTE resources required at the present time to
regulate these services is more similar to that presented by small
satellite space station licensees, which are also few in number, and
involve a relatively small number of space stations that have limited
duration and scope of use and operate using shared spectrum resources.
The Commission considered the alternative of adopting a separate
regulatory fee category for spacecraft performing OOS and RPO, however,
the record is insufficiently complete to justify supporting such a
proposal. Additionally, the Commission considered assessing regulatory
fees on RPO, OOS, and OTV space stations under other existing
regulatory fee categories, however space stations in those categories
are subject to a much greater regulatory burden. Therefore, the Report
and Order finds that the purposes of section 9 of the Act would be best
met by erring on the side of caution and assessing regulatory fees
under the category of fees associated with the least-burdensome set of
space
[[Page 60578]]
station regulations which would result in lower regulatory fees, and
have less economic impact on small entities in that sector.
The Commission considered but declined to assess regulatory fees on
all ``ISAM space stations'' using the small satellite fee category, as
proposed in some comments in this proceeding. In light of the current
proceeding involving ISAM, the Commission finds it is premature to make
a decision regarding the assessment of regulatory fees on ISAM space
stations for which the definition and regulatory framework are still
being considered and for which there are no applications pending or
licenses issued. The Commission expects to revisit this issue in the
future, after conclusion of the ISAM rulemaking, when the framework and
expected FTE burdens for licensing and regulating ISAM space stations
are better known. The Commission also considered the suggestion of one
commenter that it more clearly define RPO, OOS, and OTV by their
characteristics in order to remove uncertainty by applicants with
regards to their expected regulatory fees. The Commission declined to
do so at this time, because the proposed characteristics for defining
RPO, OOS, and OTV, such as limited duration of operations, ability to
share spectrum, and low number of stations, have not been defined in
the Commission's rules and are outside the scope of a regulatory fee
proceeding. The Commission also considered but declined at this time,
to include missions involving `habitable' or `crewed' space stations in
the existing fee category for small satellites, as proposed by one
commenter, finding it is premature to make a decision regarding the
assessment of regulatory fees for potential future types of space
stations for which the FTE benefits are not reasonably known and for
which there are no applications pending or licenses issued.
Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer.
[FR Doc. 2024-16348 Filed 7-25-24; 8:45 am]
BILLING CODE 6712-01-P
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