FCC Issues FY 2015 Regulatory Fee Order

Along with adopting a set of fees totaling to $339.8 million for FY 2015, the FCC said it seeks further comment on a variety of potential future fee adjustments, such as changes in methodology for calculating regulatory fees for radio and TV stations. The comment deadline will be 30 days after the order's publication in the Federal Register.

As it looks to adjust the fees paid by radio broadcasters, the FCC said it wanted input on subdividing its regulatory fee table, breaking out broadcasters that serve 3 million to 6 million listeners from those that serve more. It said it also is seeking input on standardizing the incremental fee increases radio broadcasters would pay as they increase the populations they serve, so fee adjustments between tiers increase at a similar clip as the population served. And the FCC seeks feedback on assessing fees based on the type and class of service, such as assessing FM Class B, C, C0, C1 and C2 stations at twice the rate of AM class C stations.

The FCC is considering restoration of the traditional fee determination of what top 10 broadcast TV market stations pay. Under the proposal for which the agency seeks comment, top 10 stations should pay roughly twice what stations in markets 26-50 pay; under such a change, a top 10 station would pay $55,025 instead of $46,285, while stations in smaller markets would see cuts of from $110 to $1,930, depending on market size. With the upcoming incentive auction perhaps resulting in fewer TV stations, the FCC also said it's seeking comment on whether and how it should adjust its methodology for assessing TV station regulatory fees. NAB didn't comment.

DBS operators will be charged 12 cents per customer per year under the FY 2015 order, with the fee expected to generate slightly less than $4.1 million. The satellite industry had argued against some proposals that DBS pay the same regulatory rate as cable and IPTV, warning of "rate shock" (see 1507080013). The 12-cent fee "is a sensible fee supported by data and analysis," the FCC said in the order, saying the rate could change in future years. The Satellite Industry Association didn't comment.

Responsible organizations -- which manage toll-free telephone numbers for subscribers -- will pay a 12-cent per number regulatory fee.The FCC added a "RespOrg" regulatory fee category in its FY 2014 regulatory fee final report, with a fee for each toll-free number managed above and beyond the fees for Internet telephony service providers.

Along with reducing the fees in the submarine cable and satellite bearer circuit categories, the FY 2015 schedule order eliminates the regulatory fees for amateur radio vanity call signs and for general mobile radio service. The North American Submarine Cable Association had argued that even that proposed fee was too high and out of proportion to the few full-time equivalent (FTE) FCC employees working on those regulatory services. While the FCC cut the regulatory fee apportionment for submarine cable and international bearer circuit industry 7.5 percent, it dismissed NASCA arguments that too-high regulatory fees might influence submarine cable operators to build out of Canada or Mexico instead.

Some proposals the FCC previously raised ended up not going forward. The agency raised regulatory fees on satellite earth stations in FY 2014. While it sought comment in the FY 2015 NPRM on whether to raise them more, the FCC said it instead plans to seek comment in the future on an EchoStar proposal that different earth station licenses should pay different regulatory fees. After proposing higher regulatory fees for aviation ground licenses, the FCC backpedaled in Wednesday's order, saying it agreed with commenters who said the fee increase wouldn't be in response to any increased industry regulation.

The FCC rejected some calls for full FTE reallocations. SIA and EchoStar had pushed for the FCC to classify FTEs working in certain divisions in the Enforcement and Consumer and Governmental Affairs bureaus and in the Office of Engineering and Technology as direct FTEs. That would require assessing "how all work done by FTEs in a bureau or office not classified as a core bureau could be associated with the work of a core bureau," and that types of informal complaints often cover areas not tied to one core bureau, making the SIA and EchoStar proposal "not feasible," the FCC said. The agency also said it was legally unable to associate direct FTEs with core bureaus different from where they work now. NAB had advocated that Media Bureau FTEs working on the upcoming spectrum incentive auction be reallocated to the Wireless Bureau for regulatory fee purposes.