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

Saga Q1 Revenue Falls, Net Loss Widens
Saga Communications
Saga Communications
Saga Communications reported first quarter 2026 net revenue declined 5.6% to $22.9 million, down from $24.2 million in the same period a year ago. Station operating expense was essentially flat, decreasing 0.2% to $22 million. The company posted an operating loss of $3.3 million More

MapQuest Adds iHeartRadio Streaming to Platform
iHeartRadio
iHeartRadio
MapQuest and iHeartRadio have announced a new partnership that integrates live iHeartRadio streaming directly into MapQuest.com, marking the first time audio has been built into the navigation platform. The integration allows users to listen to live radio while navigating, with a new "Live Radio" button More

Beasley Detroit Partners with MBBA on Outreach
Beasley Media and MBBA
Beasley Media and MBBA
Beasley Media Group Detroit has announced a new partnership with the Michigan Black Business Alliance (MBBA) aimed at supporting Black-owned businesses and expanding community engagement across Southeast Michigan. As part of the collaboration, Beasley's Detroit radio brands-105.9 KISS-FM, 105.1 The More
Advertisement

Adams Named Host of Marketplace Morning Report
Kimberly Adams
Kimberly Adams
American Public Media's Marketplace has named Kimberly Adams as the next host of its weekday program Marketplace Morning Report, effective June 8. Adams, currently Senior Washington Correspondent and host of the "Make Me Smart" podcast, succeeds David Brancaccio, who has hosted the program for 13 years. More

Ellen Tailor Returns to Mornings at Seattle's Wolf
Ellen Tailor and Aaron Crawford
Ellen Tailor and Aaron Crawford
Audacy's KKWF-FM (100.7 The Wolf) in Seattle has launched a new morning show, "Ellen & Aaron," featuring Ellen Tailor and Aaron Crawford. The program airs weekday mornings from 6-10am PT, marking Tailor's return to the station and Crawford's move into morning drive. Drew Bland, Brand More

Hope Media Backed 'America Reads the Bible' Event
Hope Media Group
Hope Media Group
Hope Media Group partnered with Christians Engaged to support the "America Reads the Bible" live event, held from April 18-25 at the Museum of the Bible. The weeklong event brought together nearly 500 national leaders who read the Bible aloud from beginning to end as part of 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