Home Login RADIO ONLINE RSS Facebook
Advertisement

NAB Submits Comments to FCC Over Fee Increases for Radio


NAB
NAB

The National Association of Broadcasters (NAB) submitted comments on Friday to the FCC in response to the Commission's Notice of Proposed Rulemaking concerning regulatory fees for Fiscal Year 2019. NAB claims the NPRM proposes "extraordinary" regulatory fee increases for radio stations for Fiscal Year 2019, while providing little or no explanation. The trade association says that the agency has a checkered history when it comes to clearly explaining the basis for its collection of regulatory fees.

In 2012, the Government Accountability Office concluded that the FCC's regulatory fee process lacked transparency and reported a lack of information in FCC regulatory fee notices. Unfortunately, NAB says the current NPRM suffers from the same confounding flaws. Instead, the NPRM offers only conclusory statements about the Commission's operations and its allocations of regulatory expenses. What bits of information the Commission has provided are left unexplained and, if anything, appear to contradict other publicly available Commission data.

As a result, NAB writes, "Commenters responsible for paying these taxes for regulation are left with no ability to provide meaningful input in this proceeding because the Commission has withheld or obscured the basis for its proposals. We urge the Commission to immediately provide further information to allow stakeholders to constructively participate in this proceeding. Without such data, the comment process is virtually worthless."

NAB is urging the Commission to take this opportunity to reconsider the basis on which it determines which entities are subject to regulatory fees. The Commission is not bound to collect regulatory fees solely from licensees. Under the current as well as proposed framework, however, the trade group claims licensees subsidize companies -- including well-funded competitors -- who benefit from the Commission's activities but do not contribute towards their funding.

These regulatory free riders leverage Commission proceedings and the hard and ongoing work of Commission staff to develop profitable business models without contributing regulatory fees. By expanding the base of contributors, the Commission can significantly lower the regulatory taxes currently paid by some licensees while making its collection as a whole more accurately reflect the work of the Commission and those who benefit from that work NAB said.

With a roughly $17 million increase in budget for the 2019 fiscal year, the Consolidated Appropriations Act of 2018 states the Commission must either raise the regulatory fees for at least some categories of payors -- or expand the base of contributors. However, while the overall budget is expanding by a modest 5.3 percent, NAB claims the impact on the radio industry is more severe, with regulatory fee increases of 18-20 percent for most stations.

"The NPRM provides no coherent explanation for the steep and disproportionate increase directed to radio licensees," NAB wrote. "Absent additional information, commenters cannot reasonably provide meaningful feedback in response to the NPRM."

Advertisement

Latest Radio Stories

NAB Presses Congress on AM Radio Bill
National Association of Broadcasters (NAB)
National Association of Broadcasters (NAB)
Broadcasters from 31 states traveled to Capitol Hill this week to urge Congress to pass the bipartisan AM Radio for Every Vehicle Act, joining emergency managers, public safety officials and advocacy organizations in a coordinated effort to preserve AM radio in new vehicles. The advocacy campaign, More

Connoisseur Media Names Saporita SF Sales Manager
Stephanie Saporita
Stephanie Saporita
Connoisseur Media West Coast has appointed Stephanie Saporita as General Sales Manager for its San Francisco cluster, effective July 20. She's previously held leadership posts with iHeartMedia, CBS Radio, and Clear Channel Outdoor. Saporita will oversee sales for Connoisseur Media's San Francisco operations, More

Edison Research Releases Top 50 U.S. Podcasts for Q2
Edison Research at SSRS
Edison Research at SSRS
Edison Research at SSRS has released its Top 50 Podcasts in the U.S. for the second quarter of 2026, with The Joe Rogan Experience, Crime Junkie, and The Daily holding onto the top three positions for a second consecutive quarter. According to Edison Podcast Metrics, the top five podcasts remained More
Advertisement

Salem Media Announces Retirement of Jon Latzer
Jon Latzer
Jon Latzer
Salem Media has announced a leadership transition at its Salem Surround digital marketing agency as longtime executive Jon Latzer prepares to retire after many years with the company. Latzer played a key role in expanding Salem Surround's digital marketing capabilities, helping grow the business while More

Skyview Networks Makes Executive Leadership Changes
Andrew Kalb
Andrew Kalb
Skyview Networks has announced a series of executive leadership changes and a key new hire as the company restructures its organization to support future growth, improve operational alignment and strengthen its strategic focus. The changes, announced by President, CEO and Chairman Steve Jones during a More

Audacy to Receive $20 Million for St. Louis Cluster
Audacy
Audacy
Audacy will receive $20 million for the sale of its six-station St. Louis radio cluster to Hoffmann Media Group, according to an asset purchase agreement filed with the Federal Communications Commission. The filing provides the first public disclosure of the transaction's financial terms since the More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement