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

Southern California Radio Veteran Craig Carpenter Dies
Craig Carpenter
Craig Carpenter
Southern California radio personality Craig "Sea" Carpenter, whose distinctive voice was heard on many of the region's legendary rock stations during the 1970s, 1980s and 1990s, died June 1 following a short illness. He was survived by his children, siblings and extended family. Carpenter built a lengthy More

Massachusetts Broadcasters Hall Honors Radio Veterans
Massachusetts Broadcasters Association (MBA)
Massachusetts Broadcasters Association (MBA)
The Massachusetts Broadcasters Association inducted seven broadcasting professionals into the Massachusetts Broadcasters Hall of Fame during a ceremony held June 4 at the Renaissance Hotel and Conference Center in Framingham, recognizing distinguished careers in radio and television. Among the 2026 More

Charlie & Debbie Move to Mornings on WSOC-FM
Charlie & Debbie
Charlie & Debbie
Longtime WSOC-FM (Country 103.7) Charlotte personalities Charlie & Debbie are named the Beasely outlet's new morning show hosts. The duo will officially take over mornings beginning June 22. Charlie & Debbie have been a familiar presence on the station for more than two decades. Their move from afternoons to More
Advertisement

NASCAR Broadcaster Ned Jarrett Dies at 93
Ned Jarrett
Ned Jarrett
NASCAR Hall of Famer and longtime Motor Racing Network broadcaster Ned Jarrett has died at the age of 93. According to a statement released by his family, Jarrett passed away peacefully of natural causes on June 4 at his home in Newton, NC, surrounded by family. "Our father was a devout Christian and a More

iHeart Shareholders Approve Expanded Incentive Plan
iHeartMedia
iHeartMedia
iHeartMedia shareholders have approved a significant expansion of the company's long-term incentive compensation program, authorizing an additional 13 million shares for employee equity awards and extending the plan for another decade. The changes were approved during iHeartMedia's Annual Meeting of More

Report: Audio Remains Key for Small Business Growth
Audacy Insights
Audacy Insights
Small businesses face increasing pressure to make every marketing dollar count as they navigate a growing number of advertising channels and heightened demands to demonstrate return on investment, according to a new Audacy Insights report. The report, entitled "Small Business Budgets. Big Expectations. 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