FCC Aides: Reg Fees Could Be More Balanced

LAS VEGAS -- The structure of FCC regulatory fees and the way they’re applied to broadcasters is a thorny issue that's complicated to change, but this year’s fees will be “closer to a regulatory fee balance,” said David Strickland, media adviser to Chairwoman Jessica Rosenworcel, on a panel at the NAB Show Monday. , Media Bureau staff and 10th-floor aides in panels also discussed AM inclusion in cars, media ownership, virtual MPVDs and other topics. The FCC has authority to add Big Tech companies to the payor base, said Adam Cassady, media adviser to Commissioner Nathan Simington: “It may be time for a broad rethinking” of the regulatory fee structure.

“We were committed to trying to make the process better this year. So I think we've tried to listen more,” Strickland said. “Even fairly straightforward” proposals for changes to reg fees “can sometimes be far more difficult to implement than you would think,” he said. “We hear you, and we know what your concerns are. But we have constraints, and we have to recover the costs of running the agency,” said Audio Division Chief Albert Shuldiner. “I don't really think there's anything that's changed from where we were in the past in terms of how we're going to proceed and how we're going to do things,”

The FCC is monitoring the concerns about vehicle manufacturers leaving AM receivers out of cars, but it isn’t clear the agency has jurisdiction over that, said aides to Democratic commissioners. “It's something that we're aware of and paying attention to,” Strickland said. “The question that we run into is, what is our role in that?” The FCC “may not have the authority to regulate cars, as much as I would love to stretch our tentacles,” said Hannah Lepow, media adviser to Commissioner Geoffrey Starks. “AM is still a protected service and if you have an incidental or an unintended radiator that interferes with that service, maybe that's a problem,” said Cassady. “So I think that the commission does potentially have a direct role to play.”

The FCC isn’t devoting resources to studying the effect of legislation changing daylight saving time on AM radio stations limited to daytime full-power operation but likely would do so if a permanent shift to DST were to become law, Shuldiner said. “We're very aware of the concerns” of broadcasters and “the impact that would have on morning drive time in particular,” he said. Shuldiner also said the agency hasn’t taken a position on broadcasters advertising products containing marijuana in states where such products are legal. Such products are illegal at the federal level, so it's not clear if such advertisements would affect a broadcaster’s license renewal status. “We also can say that we have not taken any enforcement action to date involving marijuana advertising,” Shuldiner said. “So we suggest that broadcasters consult with their regulatory counsel about the potential risks of running those types of ads and leave it at that."

The Media Bureau is “evaluating next steps” on the broadcaster request to refresh the record in an open proceeding on classifying streaming services or virtual MPVDs as MPVDs, Strickland said. “The problem here is that we're dealing with a decades-old legal framework, and it constrains our ability to assert jurisdiction.” The vast changes in streaming and MPVD consumption since the original 2014 proceeding are enough to justify at least “a slim one-page public notice just announcing a mere factual refresh,” Cassady said. The “best and cleanest” way to address the issue would be for the FCC to assist Congress in updating the relevant laws, Lepow said. Refreshing the record “needs to be done as a matter of good government,” said former FCC Commissioner Robert McDowell on a panel Sunday. McDowell, now with Cooley, represents broadcasters pushing for the classification of streamers as MVPDs.

The relationship between Nielsen and the FCC warrants scrutiny but doesn’t yet need to be severed, Cassady said. “Provided that they are providing good value to broadcasters and the rates appear to be fair, I think that's good,” he said. Cassady’s boss, Simington, urged the FCC last year to reexamine its relationship with Nielsen. One benefit of ATSC 3.0 will be giving broadcasters additional data about their viewership, Cassady told the broadcasters: “We continue to have conversations with Nielsen. We generally like where they're going. Having said that, you know, come to us always with your concerns.”