FCC Regulatory Fee Structure Long Overdue for Revamp

posted on 6.15.2020

- Scrutiny Intensifies as Hike Proposed Amid Pandemic

TAB slammed the FCC in a June 12 legal filing for its continuing failure to update its formula for developing regulatory fees as it proposes significant hikes on broadcasters amid a pandemic that has ravaged advertising revenues that fund broadcast operations. The hikes would come as the FCC increasingly gives new industries free access to spectrum without assessing them fees.

The criticism was levied in comments that were filed in response to the FCC’s fee-setting notice and were supported by advocacy groups representing broadcasters in 48 other states, Puerto Rico and the District of Columbia.

“The FCC’s methodology for setting broadcast regulatory fees does not comply with the RAY BAUM ACT of 2018 and must be revamped to comply with that law,” we argued in comments prepared by TAB’s FCC legal counsel Scott Flick with Pillsbury Winthrop Shaw Pittman.

“Part of that revamp must include charging regulatory fees not just to FCC licensees, but to all parties benefiting from the FCC’s operations, including technology and other companies that benefit from the FCC’s efforts to make unlicensed spectrum available while only increasing interference to broadcasters.”

The filing urged the FCC to undertake multiple steps immediately, including simplifying the process for stations seeking regulatory fee waivers and deferrals, and ending its policy of prohibiting stations that already are in debt to the FCC from seeking a waiver of this year’s regulatory fees.

Flick sheds light on the convoluted manner the FCC uses to develop its regulatory fee structure and exposes multiple instances of redundant fees levied on stations.

TAB Legal Comments on FCC Regulatory Fees

TAB and other state broadcast associations filed comments critical of the FCC’s fee-setting process in 2019. Those, too, noted the FCC’s failure to comply with the Ray Baum Act of 2018 which had passed six months prior.

While some may find it understandable that the regulatory behemoth couldn’t revamp its long-cemented approach to fee-setting then, there’s little, if any, excuse that could be made now, 18 months after Congress directed the commission to change its ways.

Questions? Contact TAB’s Oscar Rodriguez or call (512) 322-9944.

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