U.S. 2015 Budget Proposal Raises Broadcaster and Sat User Fees

The White House has sent its Budget for fiscal year 2015 to Congress and there are a few items in it that satellite operators and broadcasters may not be happy with.

As a follow-up, the FCC provided a convenient "Budget Brief" that covered the new budget's impact on it and its licensees.

One of the items is a "Spectrum License User Fee" that would give the FCC express authority to use other economic mechanisms, such as fees, as a spectrum management tool. These fees would only apply to unauctioned spectrum licenses. (Most full-service TV and radio broadcasters did not obtain their spectrum through auctions.) The fees would be phased in over time "to determine the appropriate application and level for fees." The fee collection would begin in 2015 and total $4.8 billion through 2024.

Satellite service licenses are now issued on a first-come, first-served basis. The proposed 2015 budget would give the FCC authority to assign licenses for certain satellite services that are predominantly domestic through competitive bidding, as the FCC had done before a 2005 court decision called the practice into question on technical grounds. The amount of revenue raised is small compared to the spectrum fees--$50 million from 2015-2024.

One item that shouldn't be controversial is a $625,000 provision to increase the FCC Enforcement Bureau's technical capability to keep pace with evolving technology.

Spectrum fees have been proposed before and rejected by Congress, so their inclusion in the budget doesn't mean they will be assessed next year. To read about other 2015 Budget items affecting the FCC see the FCC's 2015 Budget Brief . The complete budget is available on whitehouse.gov. See The President's Budget for Fiscal Year 2015.

Doug Lung

Doug Lung is one of America's foremost authorities on broadcast RF technology. As vice president of Broadcast Technology for NBCUniversal Local, H. Douglas Lung leads NBC and Telemundo-owned stations’ RF and transmission affairs, including microwave, radars, satellite uplinks, and FCC technical filings. Beginning his career in 1976 at KSCI in Los Angeles, Lung has nearly 50 years of experience in broadcast television engineering. Beginning in 1985, he led the engineering department for what was to become the Telemundo network and station group, assisting in the design, construction and installation of the company’s broadcast and cable facilities. Other projects include work on the launch of Hawaii’s first UHF TV station, the rollout and testing of the ATSC mobile-handheld standard, and software development related to the incentive auction TV spectrum repack.
A longtime columnist for TV Technology, Doug is also a regular contributor to IEEE Broadcast Technology. He is the recipient of the 2023 NAB Television Engineering Award. He also received a Tech Leadership Award from TV Tech publisher Future plc in 2021 and is a member of the IEEE Broadcast Technology Society and the Society of Broadcast Engineers.