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

Warm 98.5 Rings In Season With Christmas Music Flip
WRRM-FM (Warm 98.5) in Cincinnati
WRRM-FM (Warm 98.5) in Cincinnati
Cumulus Media's WRRM-FM (Warm 98.5) in Cincinnati has officially ushered in the holiday season, flipping to continuous Christmas music at 4:45pm on Friday. The station marked the annual switch with Andy Williams' classic "It's the Most Wonderful Time of the Year," launching its More

Danny Gonzalez Named 2026 Radio Mercury Chief Judge
Danny Gonzalez
Danny Gonzalez
The Radio Mercury Awards has selected Danny Gonzalez, co-chief creative officer and co-founder of Bandits & Friends, as the 2026 chief judge for the 35th annual competition. Gonzalez brings two decades of creative leadership to the role, known for transforming everyday ideas into memorable storytelling More

MediaCo Reports Strong Q3 Revenue Gains
MediaCo
MediaCo
MediaCo Holding Inc., owner of WQHT (Hot 97) and WBLS/New York, posted higher revenues and a return to positive adjusted EBITDA in the third quarter of 2025, driven by gains from the April 2024 Estrella acquisition and continued growth across its audio, video, and digital businesses. More
Advertisement

Edison Research to Present New TikTok Usage Report
Edison Research
Edison Research
Edison Research will unveil new findings about how Americans use TikTok during a webinar on Wednesday, December 3 at 2pm ET. The presentation, The Infinite Scroll: A TikTok Report, draws on a comprehensive set of original research examining the behaviors and opinions of U.S. TikTok users age 13 and older. More

WRXS Launches 'WRXS-mas' with Classic Holiday Hits
WRXS-FM (Pure Oldies 106.9) Milwaukee
WRXS-FM (Pure Oldies 106.9) Milwaukee
Milwaukee's WRXS-FM (Pure Oldies 106.9) is ringing in the season with WRXS-mas, a switch to traditional, nostalgia-filled Christmas music that begins today and continues non-stop through Christmas Day -- and even a bit beyond. The Oldies outlet is promising a warm, familiar holiday soundtrack built on More

SportsTalk 790 Launches ''Morning Drive with Dan & Cole''
Cole Thompson and Dan Mathews
Cole Thompson and Dan Mathews
iHeartMedia Houston's KBME (SportsTalk 790) is adding a new local team its lineup with the debut of "The Morning Drive with Dan & Cole," launching Monday, November 24. The new live, Houston-focused sports show will air weekdays from 6-10am. Hosted by Houston natives Dan 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