FCC Raises Fees Across the Board
By Bill McConnell -- Broadcasting & Cable, 8/4/2003
Broadcasters will pay a lot more in regulatory fees this year to help the FCC meet its congressionally set obligation to increase revenues from those fees by 23%.
Large-market TV stations will see a hike of 18%-24% over 2002, the FCC said July 25. VHF stations in markets 1-10 will pay $57,650, up 23%; in markets 11-25, $43,225, up 18%. UHF stations in those markets will pay, respectively, $15,850, up 24%, and $12,875, up 20%.
Cable systems are expected to generate total revenue of $44.6 million on fees of 66¢ per subscriber. The 2002 fee was 53¢ per sub.
In radio, the biggest change was the revamp of station categories. The FCC added a "3 million and greater" category and expanded the market sizes of the other categories, it said, because of the trend to more-powerful stations and increases in general population.
Payments are due Sept. 24.
Commissioners Jonathan Adelstein and Michael Copps voiced reservations about across-the-board increases and encouraged their colleagues to explore ways to make the fees better reflect the costs of regulating each sector.
| Category | FY'02 | FY'03 |
| VHF TV | ||
| Markets 1-10 | $47,050 | 57,650 |
| Markets 11-25 | 34,700 | 43,225 |
| Markets 26-50 | 23,625 | 30,125 |
| Markets 51-100 | 15,150 | 18,075 |
| Remaining markets | 3,525 | 4,450 |
| Construction permits | 2,750 | 4,625 |
| UHF TV | ||
| Markets 1-10 | $12,800 | 15,850 |
| Markets 11-25 | 10,300 | 12,875 |
| Markets 26-50 | 6,600 | 8,075 |
| Markets 51-100 | 3,875 | 4,975 |
| Remaining markets | 1,075 | 1,425 |
| Construction permits | 5,175 | 8,300 |
| Other | ||
| Satellite TV stations (all markets) | $805 | 1,000 |
| Satellite TV construction permits | 420 | 515 |
| LPTV, TV/FM translators | 320 | 365 |
| Cable antenna relay service | 65 | 90 |
| Cable TV systems (per subscriber) | 0.53 | 0.66 |
| Earth stations | 140 | 210 |
| Space stations | 99,700 | 115,625 |
| Source: FCC |
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| Fee Category | FY'02 | FY'03** |
| More than 3 million | ||
| AM Class A | NA | $7,200 |
| AM Class B | NA | 5,400 |
| AM Class C | NA | 3,100 |
| AM Class D | NA | 4,000 |
| FM Classes A, B1, C3 | NA | 6,650 |
| FM Classes B, C, C1, C2 | NA | 8,125 |
| 1,200,001-3 million | ||
| AM Class A | $4,975 | 6,000 |
| AM Class B | 4,100 | 4,500 |
| AM Class C | 2,075 | 2,450 |
| AM Class D | 2,625 | 3,200 |
| FM Classes A, B1, C3 | 4,100 | 5,225 |
| FM Classes B, C, C1, C2 | 4,975 | 6,250 |
| 400,001-1 million | ||
| AM Class A | 3,125 | 3,900 |
| AM Class B | 2,525 | 2,925 |
| AM Class C | 1,425 | 1,625 |
| AM Class D | 1,700 | 2,000 |
| FM Classes A, B1, C3 | 2,525 | 3,200 |
| FM Classes B, C, C1, C2 | 3,125 | 3,900 |
| 125,001-400,000 | ||
| AM Class A | 2,250 | 2,700 |
| AM Class B | 1,575 | 1,925 |
| AM Class C | 800 | 975 |
| AM Class D | 950 | 1,200 |
| FM Classes A, B1, C3 | 1,575 | 2,025 |
| FM Classes B, C, C1, C2 | 2,250 | 2,650 |
| Fee Category | FY'02 | FY'03** |
| 50,001-125,000 | ||
| AM Class A | 1,500 | 1,800 |
| AM Class B | 975 | 1,125 |
| AM Class C | 525 | 650 |
| AM Class D | 775 | 1,000 |
| FM Classes A, B1, C3 | 975 | 1,300 |
| FM Classes B, C, C1, C2 | 1,500 | 2,025 |
| 20,001-50,00* | ||
| AM Class A | 925 | 1,200 |
| AM Class B | 725 | 900 |
| AM Class C | 375 | 475 |
| AM Class D | 525 | 600 |
| FM Classes A, B1, C3 | 725 | 950 |
| FM Classes B, C, C1, C2 | 925 | 1,100 |
| Fewer than 20,000 | ||
| AM Class A | 500 | 600 |
| AM Class B | 375 | 450 |
| AM Class C | 275 | 325 |
| AM Class D | 325 | 400 |
| FM Classes A, B1, C3 | 375 | 475 |
| FM Classes B, C, C1, C2 | 500 | 625 |
| AM construction permit | 370 | 455 |
| FM construction permit | 1,500 | 1,850 |
| *Total market population **Note: Year-to-year comparison is approximate because of new population categories effective 2003. Previous categories: 1 million and greater, 401,000-1 million, 125,001-400,000, 50,000-125,000, 20,001-50,000, 20,000 and fewer. NA = Not applicable because of the change in categories Source: FCC |
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