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

Salem Media Goes Private Following WaterStone Deal
Salem Media
Salem Media
Salem Media has completed its acquisition by The Christian Community Foundation, Inc., doing business as WaterStone, taking the Christian and conservative media company private. WaterStone acquired all outstanding shares of Salem Media common stock for $1 per share, representing approximately a 250% premium More

FCC Approves Cumulus Post-Bankruptcy Ownership Transfer
Cumulus Media
Cumulus Media
Cumulus Media has cleared a major regulatory hurdle toward emerging from Chapter 11 bankruptcy, with FCC records showing the broadcaster's applications to transfer control of its licenses to its post-reorganization shareholders have been granted. The approval follows an August 14 letter from Cumulus More

K-Love Names Evan Masyr as Chief Financial Officer
Evan Masyr
Evan Masyr
K-Love Inc. has appointed longtime Salem Media Group executive Evan Masyr as Chief Financial Officer, effective September 14. He will oversee the nonprofit media organization's accounting, finance and tax departments and serve on its Ministry Leadership Team. Masyr joins K-Love after more than 26 years More
Advertisement

Joel Oxley to Receive NAB National Radio Award
Joel Oxley
Joel Oxley
Hubbard Radio Washington, DC President and General Manager Joel Oxley will receive the 2026 NAB National Radio Award, recognizing his more than three decades of leadership in the radio industry. The NAB announced the honor Thursday on National Radio Day. Oxley will receive the award during the 2026 NAB More

News, Comedy Drive Triton Q2 Podcast Rankings
Triton Digital
Triton Digital
Comedy maintained its position as podcasting's largest category during the second quarter, while news programming posted the strongest audience growth as listeners turned toward political content ahead of the midterm elections, according to Triton Digital's Q2 2026 U.S. Podcast More

Audacy Partners with Bunnie Xo for Dumb Blonde
Dumb Blonde
Dumb Blonde
Audacy has entered into a partnership with creator and #1 New York Times bestselling author Alisa "Bunnie Xo" DeFord to exclusively handle sales and distribution for her "Dumb Blonde" podcast. The agreement expands Audacy's portfolio of entertainment and women's lifestyle programming while providing 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