Home Login RADIO ONLINE RSS Facebook

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."

Latest Radio Stories

NAB Seeks FCC Clarification on FM Digital Power Limits
National Association of Broadcasters (NAB)
National Association of Broadcasters (NAB)
The National Association of Broadcasters (NAB), Xperi and the NRSC are urging the FCC to clarify its interpretation of FM digital power limits, arguing that an apparent change in 2025 has restricted some stations' ability to optimize their operations. In a November 2 ex parte filing in MB Docket No. More

NYSBA Elects Chris Oliviero Chair for 2027
Chris Oliviero
Chris Oliviero
The New York State Broadcasters Association (NYSBA) has elected Audacy Chief Business Officer and New York Market President Chris Oliviero as Chair of its Board of Directors for 2027. The association announced its new officers and directors following its annual Fall Meeting in New York City. Joining More

Coleman Insights Names Barsoian to Validate Support Role
Bethany Barsoian
Bethany Barsoian
Coleman Insights has named Bethany Barsoian Customer Success Manager for Validate, its attribution platform that helps radio broadcasters measure advertising campaigns' impact on consumer behavior. Barsoian will serve as the primary contact for Validate subscribers, overseeing onboarding, training, technical More

RCS Names Halcomb, Kelly to Senior Leadership Roles
Tammy Halcomb and Merideth Kelly
Tammy Halcomb and Merideth Kelly
RCS Worldwide has appointed Tammy Halcomb Senior Vice President of Products and Merideth Kelly Senior Vice President of Global Client Experience and Transformation. The broadcast software company said the appointments will support product development and improvements in client service. More

Study: 91% of Marketers, Agencies Commute to Work
Cumulus Media | Westwood One
Cumulus Media | Westwood One
Nine in ten marketers and media agency executives now commute to work at least some days, according to new research commissioned by the Cumulus Media | Westwood One Audio Active Group. The findings are examined by Chief Insights Officer Pierre Bouvard in the group's latest blog post, which connects workplace More

WKRP Plans Rubber Turkey Drop to Benefit Food Pantry
WKRP in Cincinnati
WKRP in Cincinnati
Cincinnati's WKRP-FM will bring a signature moment from "WKRP in Cincinnati" to life on Thanksgiving eve, dropping miniature rubber turkeys from a fire truck ladder during a fundraiser in Hamilton, OH. The "1st Annual WKRP Turkey Drop" is scheduled for 7:30pm Wednesday, November 25, at Riverfront Plaza More

Return to Menu

Advertisement

Advertisement

Advertisement