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

2026 NAB Crystal Radio Award Winners Announced
NAB Crystal Radio Awards
NAB Crystal Radio Awards
The National Association of Broadcasters (NAB) today announced the ten winners of the 39th annual NAB Crystal Radio Awards. Since 1987, these awards have recognized radio stations for their exceptional year-round commitment to community service. Recipients were chosen from 50 More

Nielsen DMA Data Added to Magellan AI
Magellan AI
Magellan AI
Nielsen has licensed its proprietary Designated Market Area (DMA) data to Magellan AI, enabling local-level podcast advertising measurement within the Magellan AI platform. The integration allows advertisers to measure podcast performance across Nielsen's 210 standardized U.S. DMA More

CRS Honors to Reveal Hall of Fame, ACM Radio Winners
CRS 26
CRS 26
Country Radio Seminar will unveil the Country Radio Hall of Fame Class of 2026 and select ACM Radio Award winners during CRS Honors on Wednesday, March 18 at 2pm. In partnership with the Academy of Country Music, the ceremony will feature the live announcement of ACM Radio Award winners for Station of More
Advertisement

BEPN, Amber Grimes Launch ''If You Knew Better''
If You Knew Better with Amber Grimes
If You Knew Better with Amber Grimes
iHeartMedia and Charlamagne Tha God's The Black Effect Podcast Network have announced the launch of a new podcast hosted by entertainment executive Amber Grimes. Entitled "If You Knew Better," the series will focus on growth, reinvention, setbacks and strategies for personal and professional development. More

NAB State Leadership Conference Draws 570 Broadcasters
National Association of Broadcasters
National Association of Broadcasters
Broadcasters from across the country gathered in Washington, DC, this week for the National Association of Broadcasters' annual State Leadership Conference (SLC), an advocacy event focused on strengthening local radio and television stations' ability to serve their communities. More than 570 attendees More

Entravision Acquires Playback Rewards' Technology
Entravision
Entravision
Entravision Communications Corporation has acquired Playback Reward's core technology, platform and product intellectual property assets, bolstering its performance advertising arm, Adwake. The Playback assets will be integrated into Adwake to accelerate development of its loyalty rewards platforms, with a 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