FCC Regulatory Order Follows Through on DBS Hike to Narrow Disparity With Cable
An FCC regulatory fee order includes a hike on direct broadcast satellite providers from 27 cents per subscriber to 38 cents per subscriber this year, as proposed in an NPRM, despite opposition from AT&T's DirecTV and Dish Network (see 1708230015…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
and 1706230027). The commission said it agreed with cable industry arguments that DBS providers occupy Media Bureau resources "similar" to those used by cable (including IPTV), while it noted a disparity in regulatory fee assessments. The DBS increase is "an effort to bring the regulatory fee closer" to the cable fee, which is now 95 cents per subscriber, said the order and Further NPRM in docket 17-134 released Tuesday to collect $356.7 million in regulatory fees in FY 2017 (see 1709050081). The FCC projected about $22 million (6.2 percent of the allocation) in fees from International Bureau regulatees; $89 million (24.9 percent) in fees from Wireless Bureau regulatees; $116 million (32.4 percent) from Wireline Bureau regulatees; and $130 million (36.5 percent) from Media Bureau regulatees. Industry regulatory fee payments are due Sept. 26, said a public notice. The FCC failed to justify a decision to reassign 38 staff full-time equivalents for non-high-cost USF regulatory activities from the Wireline Bureau to an "indirect" category, "meaning that the cost of these programs will be borne by all Commission licensees," said Commissioner Mike O'Rielly, who partially dissented from the order. He also cited a lack of support for AM/FM changes that reduced fees for small broadcasters, but he "hesitantly" backed the DBS fee increase. The FNPRM sought further comment on the appropriate tiers for calculating terrestrial and satellite international bearer circuit fees raised in the 2016 and 2017 NPRMs, and on the methodology for calculating cable-TV subscribers in multiple dwelling units raised in the 2008 NPRM. Attorneys from law firms blogged on details of the actions, including Davis Wright, Fletcher Heald and Wilkinson Barker.