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

Jim Lyke Returns to SBS as AIRE Executive VP
Jim Lyke
Jim Lyke
Spanish Broadcasting System has appointed Jim Lyke as Executive Vice President of Network Radio and National Digital Sales for AIRE Radio Networks, marking his return to the company nearly a year after departing for a role at Nueva Network. Lyke previously served as Senior Vice President of Network Audio More

Report: Black Buying Power to Top $2.1 Trillion in 2026
Katz Radio Group
Katz Radio Group
Black Americans now account for 49.2 million people, or 14.4% of the U.S. population, and their economic influence continues to grow, according to a new analysis from the Katz Radio Insights & Analytics team. The report, The Importance of the Black American Consumer 2026, More

iHeartRadio Named Media Partner of iFlag
iFlag and iHeartRadio
iFlag and iHeartRadio
The International Flag League (iFlag), formerly known as USA Flag and billed as the world's largest flag football tournament organization, has named iHeartRadio as its official media partner. Under the agreement, iFlag will work with iHeartRadio and its parent company iHeartMedia on a cross-marketing More
Advertisement

BIA, AdApt Partner on AI Sales Platform
AdApt and BIA Advisory Services
AdApt and BIA Advisory Services
BIA Advisory Services and AdApt Media Sales have announced a strategic partnership to integrate local advertising market data into sales technology used by media organizations. Under the agreement, AdApt will incorporate BIA's market-specific revenue forecasts into its AI-enabled sales platform. The More

FCC Seeks Comment on Sports Broadcasting Landscape
Federal Communications Commission (FCC)
Federal Communications Commission (FCC)
The Federal Communications Commission's Media Bureau has opened a new proceeding to examine the evolving sports broadcasting marketplace, citing concerns about consumer access and the impact on local television stations. In a Public Notice released February 25, the Bureau is seeking public comment on how More

Black Effect Fest to Return to Atlanta on April 25
Black Effect Podcast Festival
Black Effect Podcast Festival
iHeartMedia and Charlamagne Tha God have announced the return of the Black Effect Podcast Festival, set for April 25 from noon to 8pm ET at Pullman Yards in Atlanta. Now in its fourth year, the event will bring together Black podcasters, creators and fans for a full day of live podcast tapings, panel 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