FCC Announces Regulatory Fees Due by September 25 for FY 2018

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The FCC has released its annual Report and Order showing the regulatory fees due for the 2018 fiscal year. Fees must be paid by 11:59 pm Eastern time on September 25, although the FCC‘s Fee Filer is accepting fee payments now. As in past years, the FCC will not be mailing out any notices of fees due. It is up to each licensee, permittee or regulatee to insure that these fees are timely paid. Fees paid even one day late will be subject to a 25% penalty plus administrative processing charges, so timely payment is critical. Licensees or permittees that fail to pay their regulatory fees in full will not be able to get FCC action on any subsequently-filed applications or receive disbursements from the federal universal service programs such as E-rate, pursuant to the Commission's "red light" policy until all fees and penalties are paid.

Regulatory fees can only be paid by wire, online ACH payment, debit card (Visa/MasterCard) or online credit card , and all payers will need both an FCC Registration Number (FRN) and a completed "Fee Filer Form" 159-E prior to filing. The FCC no longer accepts checks or paper filings. Also, credit card payments are limited to $24,999.99, although debit card payments have no limit.

For most services, fees are based on FCC licenses and permits held as of October 1, 2017 (the first day of the FCC’s 2018 fiscal year), although cable TV rates are based on the number of basic subscribers as of December 31, 2017, and the interstate telecommunications service provider/VoIP fees are based on the 2017 revenues reported on the entity’s 2018 FCC Form 499-A. Noncommercial stations and all nonprofit entities are exempt from paying regulatory fees.

This year, the FCC is increasing the regulatory fee for DBS providers from 38 cents to 48 cents per subscriber and decreasing the cable TV rate from 95 cents to 77 cents per subscriber in an attempt to bring those rates closer together. Following a Notice of Proposed Rulemaking issued last year, the FCC decided to maintain its existing bulk rate calculation for multiple dwelling unit subscribers.

For the second year in a row, the FCC is keeping the de minimis threshold for regulatory fees at $1000, meaning that any person or entity that owes $1000 or less is exempt from having to pay regulatory fees. As has been the case for several years now, broadcast auxiliary licenses are also exempt from regulatory fees.

Although a summary of fees is shown below, the FCC website contains links to more information about the fees owed, including fees for services not mentioned below.

A.            Broadcast Services

                1.         AM and FM Radio

FY 2018 RADIO STATION REGULATORY FEES

Population

Served

AM Class A

AM Class B

AM Class C

AM Class D

FM Classes

A, B1 & C3

FM Classes

B, C, C0, C1 & C2

<=25,000

$880

$635

$550

$605

$965

$1,100

25,001 – 75,000

$1,325

$950

$825

$910

$1,450

$1,650

75,001 – 150,000

$1,975

$1,425

$1,250

$1,350

$2,175

$2,475

150,001 – 500,000

$2,975

$2,150

$1,850

$2,050

$3,250

$3,725

500,001 – 1,200,000

$4,450

$3,225

$2,775

$3,050

$4,875

$5,575

1,200,001 – 3,000,000

$6,700

$4,825

$4,175

$4,600

$7,325

$8,350

3,000,001 – 6,000,000

$10,025

$7,225

$6,275

$6,900

$11,000

$12,525

>6,000,000

$15,050

$10,850

$9,400

$10,325

$16,500

$18,800

 

AM Construction Permits

$550

 

FM Construction Permits

$965

 

                 

                2.        Digital Television

The FCC has eliminated the distinction between VHF and UHF for digital TV regulatory fees, as follows:

 

Fee Category

 

Annual Regulatory Fee

 

Digital TV (47 CFR part 73) VHF and UHF Commercial

 

            Markets 1-10    

$49,750

            Markets 11-25

$37,450

            Markets 26-50

$25,025

            Markets 51-100 

$12,475

            Remaining Markets

$4,100

            Construction Permits

$4,100

 

                3.        LPTV, Class A, TV/FM Translators & Boosters      $380 per license (2017 = $430)                               

                4.        Broadband Radio (MDS/MMDS) & LMDS        $600 per call sign (2017 = $800)

 B.            MVPD SERVICES

                1.        Cable Television Systems               77¢ per subscriber (2017 = 95¢)

                2.       Cable Antenna Relay Service (CARS)       $1,075 (2017 = $935)

                3.       Direct Broadcast Service (DBS)        48¢ per subscriber (2017 = 38¢)

C.            WIRELESS SERVICES

                1.        CMRS Mobile/Cellular Services        20¢ per unit (2017 = 21¢)

                2.       CMRS Messaging Services           8¢ per unit (unchanged)

                3.       Microwave (includes Domestic Public Fixed Radio)

Microwave licensees must pay a $25 annual regulatory fee per year, payable for an entire ten-year license term at the time of application for a new, renewal or reinstatement license. The total regulatory fee due is $250 for the ten-year license term.  (unchanged) 

D.            TELECOMMUNICATIONS SERVICE PROVIDERS

1.     Interstate Telecommunications Services      $0.00291 per revenue dollar

                                                                   (Based on revenue reported on 499-A)

                                                                    (2017 = $0.00302 per revenue dollar)

These fees are assessed on interconnected VoIP services, as well as traditional services such as local exchange, interexchange (long distance) and resold services.               

 E.            INTERNATIONAL SERVICES  

                1.        Earth Stations                                $325 (2017 = $360)

                         ·  NO FEE FOR RECEIVE-ONLY EARTH STATIONS

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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