FCC Declines to Establish Classification for Large Tech Companies

The Federal Communications Commission (FCC) has made a decision to reject a proposal by the National Association of Broadcasters (NAB) to implement new regulatory fees for broadband and large technology companies.

In a move that could be seen as a victory for tech giants and broadband providers, the commission stated that the proposed fee category structure was unworkable and logistically infeasible at this time. The FCC's decision was made while finalizing its regulatory fee schedule for fiscal 2025.

The NAB had proposed the creation of five new regulatory fee categories for various entities, including broadband internet access service providers, large technology companies, holders of equipment authorizations, experimental license holders, and entities that provide database services to unlicensed spectrum users.

However, the commission was not convinced by the NAB's arguments. It sided with opponents, stating that the proposal was unclear and lacked sufficient basis for new fees. The commission also reaffirmed its policy that while the vast majority of radio stations qualify as a "small entity," they are not exempt from paying fees.

The regulatory fees for AM and FM stations have decreased for the third straight year in FY 2025. The decrease in fees varies by station type and population served, with an FM Class B station in the largest market paying $19,485 in FY 2025, down from $19,995 in FY 2024.

The FCC confirmed its initial proposal to reclassify 61 indirect FTEs as direct FTEs, resulting in a total of 134 direct FTEs for the Media Bureau. Additionally, an additional 13 FTEs were reallocated to the Media Bureau.

The commission expects to collect approximately $116.1 million in fees from Media Bureau regulatory fee payers, which includes radio and TV broadcasters, slightly more than the amount collected in 2024. Stations with financial hardships may qualify for relief through waivers, reductions, deferrals, or installment payments.

Not all were against the NAB's proposal. Several state broadcast associations supported it, stating that radio and TV broadcasters unfairly subsidize larger entities in growing industries that are better able to withstand the FCC's operating costs.

The Organization for Economic Co-operation and Development (OECD) proposed introducing five new regulatory fee categories for large technology companies and broadband providers. The Telecommunications Industry Association, CTIA-The Wireless Association, the Wi-Fi Alliance, the Consumer Technology Association, and others opposed the NAB's proposal, deeming it vague, unwarranted, and based on prior flawed arguments.

CTA and the TIA argued that because the commission has outsourced nearly all testing and certification work, there is no free regulatory ride for these entities, but rather a system that functions efficiently because the commission wisely chose to privatize much of the burden.

The NAB requested that the FCC host stakeholder roundtables before FY 2026 to discuss modernizing who pays into the system. It remains to be seen if the commission will reconsider its decision in the future.