Before the Federal Communications Commission Washington, D.C. ...

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Federal Communications Commission FCC 02-64operating, approximately 1,298 of which are considered small businesses. 209 For 1992, 210 the number oftelevision stations that produced less than $10.0 million in revenue was 1,155 establishments. 211The SBA defines a radio broadcasting station that has $5 million or less in annual receipts as a smallbusiness. 212 A radio broadcasting station is an establishment primarily engaged in broadcasting auralprograms by radio to the public. 213 Included in this industry are commercial, religious, educational, andother radio stations. 214 Radio broadcasting stations, which primarily are engaged in radio broadcastingand which produce radio program materials are similarly included. 215 However, radio stations that areseparate establishments and are primarily engaged in producing radio program material are classifiedunder another NAICS code. 216 The 1992 Census indicates that 96 percent (5,861 of 6,127) of radiostation establishments produced less than $5 million in revenue in 1992. 217 Commission records indicatethat 11,334 individual radio stations were operating in 1992. 218 As of September 30, 2001, Commissionrecords indicate that 13,012 radio stations were operating, approximately 12,550 of which are consideredsmall businesses. 219Thus, the rules may affect approximately 1,686 full power television stations, approximately 1,298 ofwhich are considered small businesses. 220 Additionally, the proposed rules may affect some 13,012 fullpower radio stations, approximately 12,550 of which are small businesses. 221 These estimates mayoverstate the number of small entities because the revenue figures on which they are based do not includeor aggregate revenues from non- television or non-radio affiliated companies. There are also 2,212 low209FCC News Release, “Broadcast Station Totals as of September 30, 2001.”210A census to determine the estimated number of Communications establishments is performed every fiveyears, in years ending with a “2” or “7.” See 1992 Census, Series UC92-S-1, at III.211The amount of $10 million was used to estimate the number of small business establishments because therelevant Census categories stopped at $9,999,999 and began at $10,000,000. No category for $10.5 million existed.Thus, the number is as accurate as it is possible to calculate with the available information.21221321421521613 C.F.R. § 121.201, NAICS codes 51311 and 51312.1992 Census, Series UC92-S-1, at Appendix A-9.Id.Id.Id.217The Census Bureau counts radio stations located at the same facility as one establishment. Therefore, eachcolocated AM/FM combination counts as one establishment.218219FCC News Release, No. 31327 (January 13, 1993).FCC News Release, “Broadcast Station Totals as of September 30, 2001.”220We use the 77% figure of TV stations operating at less than $10 million for 1992 and apply it to the 2001total of 1,686 TV stations to arrive at 1,298 stations categorized as small businesses.221We use the 95.65% figure of radio station establishments with less than $5 million revenue from datapresented in the year 2001 estimate and apply it to the 13,012 individual station count to arrive at 12,550 individualstations categorized as small businesses.52
Federal Communications Commission FCC 02-64power television (“LPTV”) stations. 222 Given the nature of this service, we will presume that all LPTVlicensees qualify as small entities under the SBA definition.Cable systems. The rules adopted in this proceeding will also affect small cable entities. The SBA hasdeveloped a definition of small entities for “Cable and Other Program Distribution Services,” whichincludes all such companies generating $11 million or less in revenue annually. 223 This definitionincludes cable system operators, closed circuit television services, direct broadcast satellite services,multipoint distribution systems, satellite master antenna systems, and subscription television services.According to Census Bureau data from 1992, there were 1,788 total cable and other program distributionservices and 1,423 had less than $11 million in revenue. 224The Commission has developed its own definition of a “small cable system” for purposes of the EASrules. Cable systems serving fewer than 10,000 subscribers per headend are considered small cablesystems and are afforded varying degrees of relief from the EAS rules. 225 Based on our most recentinformation, we estimate that there are 8,552 cable systems that serve fewer than 10,000 subscribers perheadend. 226 Consequently, we estimate that there are fewer than 8,552 small cable systems that may beaffected by the rules adopted herein.The Communications Act also contains a definition of a small cable system operator, which is “a cableoperator that, directly or through an affiliate, serves in the aggregate fewer than 1 percent of allsubscribers in the United States and is not affiliated with any entity or entities whose gross annualrevenues in the aggregate exceed $250,000,000.” 227 The Commission has determined that there are67,700,000 subscribers in the United States. 228 Therefore, we found that an operator serving fewer than677,000 subscribers shall be deemed a small operator, if its annual revenues, when combined with thetotal annual revenues of all of its affiliates, do not exceed $250 million in the aggregate. 229 Based onavailable data, we find that the number of cable operators serving 677,000 subscribers or less totals222223FCC News Release, “Broadcast Station Totals as of September 30, 2001.”13 C.F.R. § 121.201, NAICS codes 513210 and 513220.224U.S. Department of Commerce, Bureau of the Census, 1992 Economic Census Industry and EnterpriseReceipts Size Report, Table 2D, NAICS codes 513210 and 513220 (U.S. Bureau of the Census data under contractto the Office of Advocacy of the U.S. Small Business Administration).225The Commission developed this definition based on its determination that requiring cable systems servingfewer than 10,000 subscribers to comply with the EAS rules immediately may have an adverse economic effect ontheir operations. Second Report and Order, 12 FCC Rcd at 15516-17. Cable systems serving between 5,000 and10,000 subscribers per headend must install EAS equipment and provide audio and video EAS messages on allprogrammed channels by October 1, 2002. Cable systems serving fewer than 5,000 subscribers per headend musteither provide the national level EAS message on all programmed channels or install EAS equipment and provide avideo interrupt and audio alert on all programmed channels and EAS audio and video messages on at least oneprogrammed channel by October 1, 2002. See 47 C.F.R. § 11.11.226227Television and Cable Factbook, Warren Publishing, Inc., at I-98 (2000).47 U.S.C. § 543(m)(2).228See FCC Announces New Subscriber Count for the Definition of Small Cable Operator, Public Notice DA01-158 (January 24, 2001).22947 C.F.R. § 76.901(f).53
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