FCC: No Phase-in for Higher Space Regulatory Fees

The FCC has rejected proposed caps on or phase-in of increased regulatory fees for space and earth station fee payers for FY 2024. In its FY 2024 regulatory fees order in Monday's Daily Digest, the agency said a cap or phase-in would mean more regulatory fees on all other regulatory fee payers, though they don't get the benefit of additional Space Bureau staff devoted to oversight and regulation of satellites. Members of the satellite industry issued multiple calls for phasing in the fee hikes stemming from establishing the Space Bureau (see 2407300027).

Satellite Industry Association President Tom Stroup told us his members are disappointed that there's no phase-in, given the substantial increase satellite operators face.

In the order, the agency also rejiggered its regulatory fee allocation between geostationary orbit and non-geostationary orbit operators. Now GSO payers will take on responsibility for 60% of satellite regulatory fees, instead of 80%; NGSO payers will pay 40% instead of 20%. The agency said the new split more accurately reflects the apportionment of staff work between the categories since 2020 -- the last time it assessed allocation. Satellite operators have disagreed about changing the GSO/NGSO fee allocation (see 2404150040).

The FCC in the order avoids creating a regulatory fee category for broadband internet access service providers. "We are unconvinced that ... is necessary or that such a category appropriately belongs in any one bureau," it said. It also rejected a proposal for a regulatory fee category for manufacturers of equipment that operates unlicensed spectrum. The commission said it's ending its presumption that broadcast stations that are dark or were recently dark or bankrupt are experiencing financial hardship sufficient to justify waiver of their regulatory fees. It said the end of the dark station presumption will apply for FY 2025 regulatory fees.

Moreover, the agency said it would seek further comment on other satellite and earth station regulatory fee proposals, such as assessing regulatory fees on satellites and earth stations that are authorized but not operational and creating tiers in existing NGSO satellite fee categories based on the number of satellites in the system. It expects acting on those proposals in time for them to be effective for FY 2025.

Commissioner Brendan Carr, in a partial dissent, urged "even more progress in maximizing our efficiency as a government agency." He continued, "As it stands today, we’re leaving too many cumbersome processes in place, putting lots of staff time into working through the issues and appeals and challenges that result from those processes, and then passing those staff time costs on to some businesses (but not others)," he said.