Federal Register, Volume 75, Number 98, May 21, 2010, Pages 28463-28750 Page: 28,533

Federal Register/Vol. 75, No. 98/Friday, May 21, 2010/Proposed Rules

images together with sound." 125 The
Commission has estimated the number
of licensed commercial television
stations to be 1,392.126 According to
Commission staff review of the BIA/
Kelsey, MAPro Television Database
("BIA") as of April 7, 2010, about 1,015
of an estimated 1,380 commercial
television stations 127 (or about 74
percent) have revenues of $14 million or
less and thus qualify as small entities
under the SBA definition. The
Commission has estimated the number
of licensed non-commercial educational
(NCE) television stations to be 390.128
The Commission notes, however, that,
in assessing whether a business concern
qualifies as small under the above
definition, business (control)
affiliations 129 must be included. Our
estimate, therefore, likely overstates the
number of small entities that might be
affected by our action, because the
revenue figure on which it is based does
not include or aggregate revenues from
affiliated companies. The Commission
does not compile and otherwise does
not have access to information on the
revenue of NCE stations that would
permit it to determine how many such
stations would qualify as small entities.
95. In addition, an element of the
definition of "small business" is that the
entity not be dominant in its field of
operation. The Commission is unable at
this time to define or quantify the
criteria that would establish whether a
specific television station is dominant
in its field of operation. Accordingly,
the estimates of small businesses to
which rules may apply do not exclude
125 Id. This category description continues,
"These establishments operate television
broadcasting 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
studios, from an affiliated network, or from external
sources." Separate census categories pertain to
businesses primarily engaged in producing
programming. See Motion Picture and Video
Production, NAICS code 512110; Motion Picture
and Video Distribution, NAICS Code 512120;
Teleproduction and Other Post Production
Services, NAICS Code 512191; and Other Motion
Picture and Video Industries, NAICS Code 512199.
126 See News Release, "Broadcast Station Totals as
of December 31, 2009," 2010 WL 676084 (F.C.C.)
(dated Feb. 26, 2010) ("Broadcast Station Totals");
also available at http://www.fcc.gov/mb/.
127 The Commission recognizes that this total
differs slightly from that contained in Broadcast
Station Totals, supra note 446; however, the
Commission is using BIA's estimate for purposes of
this revenue comparison.
128 See Broadcast Station Totals, supra note 126.
129 "[Business concerns] are affiliates of each
other when one concern controls or has the power
to control the other or a third party or parties

controls or has the power to control both." 13 CFR
121.103(a)(1).

any television station from the
definition of a small business on this
basis and are therefore over-inclusive to
that extent. Also as noted, an additional
element of the definition of "small
business" is that the entity must be
independently owned and operated.
The Commission notes that it is difficult
at times to assess these criteria in the
context of media entities and our
estimates of small businesses to which
they apply may be over-inclusive to this
extent.
96. Class A TV, LPTV, and TV
translator stations. The rules and
policies proposed in this Notice include
licensees of Class A TV stations, low
power television (LPTV) stations, and
TV translator stations, as well as
potential licensees in these television
services. The same SBA definition that
applies to television broadcast licensees
would apply to these stations. The SBA
defines a television broadcast station as
a small business if such station has no
more than $14 million in annual
receipts.130 Currently, there are
approximately 537 licensed Class A
stations, 2,386 licensed LPTV stations,
and 4,359 licensed TV translators.131
Given the nature of these services, the
Commission will presume that all of
these licensees qualify as small entities
under the SBA definition. The
Commission notes, however, that under
the SBA's definition, revenue of
affiliates that are not LPTV stations
should be aggregated with the LPTV
station revenues in determining whether
a concern is small. Our estimate may
thus overstate the number of small
entities since the revenue figure on
which it is based does not include or
aggregate revenues from non-LPTV
affiliated companies. The Commission
does not have data on revenues of TV
translator or TV booster stations, but
virtually all of these entities are also
likely to have revenues of less than $14
million and thus may be categorized as
small, except to the extent that revenues
of affiliated non-translator or booster
entities should be considered.
97. Radio Broadcasting. The proposed
rules and policies could apply to radio
broadcast licensees, and potential
licensees of radio service. The SBA
defines a radio broadcast station as a
small business if such station has no
more than $7 million in annual
receipts.132 Business concerns included
in this industry are those primarily
engaged in broadcasting aural programs
by radio to the public.133 According to
130 See 13 CFR 121.201, NAICS Code 515120.
131 See Broadcast Station Totals, supra note 126.
132 See 13 CFR 121.201, NAICS Code 515112.

133 Id.

Commission staff review of the BIA/
Kelsey Master Access Radio Analyzer
Database on April 7, 2010, about 10,900
of 11,200 commercial radio stations (or
about 97 percent) have revenues of $7
million or less and thus qualify as small
entities under the SBA definition. The
Commission notes, however, that, in
assessing whether a business concern
qualifies as small under the above
definition, business (control)
affiliations 134 must be included. Our
estimate, therefore, likely overstates the
number of small entities that might be
affected by our action, because the
revenue figure on which it is based does
not include or aggregate revenues from
affiliated companies.
98. In addition, an element of the
definition of "small business" is that the
entity not be dominant in its field of
operation. The Commission is unable at
this time to define or quantify the
criteria that would establish whether a
specific radio station is dominant in its
field of operation. Accordingly, the
estimates of small businesses to which
rules may apply do not exclude any
radio station from the definition of a
small business on this basis and
therefore may be over-inclusive to that
extent. Also as noted, an additional
element of the definition of "small
business" is that the entity must be
independently owned and operated.
The Commission notes that it is difficult
at times to assess these criteria in the
context of media entities and our
estimates of small businesses to which
they apply may be over-inclusive to this
extent.
99. FM translator stations and low
power FM stations. The proposed rules
and policies could affect licensees of
FM translator and booster stations and
low power FM (LPFM) stations, as well
as potential licensees in these radio
services. The same SBA definition that
applies to radio broadcast licensees
would apply to these stations. The SBA
defines a radio broadcast station as a
small business if such station has no
more than $7 million in annual
receipts.135 Currently, there are
approximately 6,155 licensed FM
translator and booster stations and 864
licensed LPFM stations.136 Given the
nature of these services, the
Commission will presume that all of
134 "[Business concerns] are affiliates of each
other when one concern controls or has the power
to control the other or a third party or parties
controls or has to power to control both." 13 CFR
121.103(a)(1).
135 See 13 CFR 121.201, NAICS Code 515112.
136 See News Release, "Broadcast Station Totals as
of December 31, 2009" (rel. Feb. 26, 2010) (http:

//hraunfoss.fcc.gov/edocs_public/attachmatch/
DOC-296538A1 .pdf269784A1.doc).

28533