PITTSBURGH, Sept 6. 2016 – American Cable Association President and CEO Matthew M. Polka issued the following statement on the Federal Communications Commission’s new order that will require direct broadcast satellite (DBS) providers DirecTV and Dish each to pay a 27-cent, per-subscriber regulatory fee in fiscal 2016, which includes a three-cent fee to help the FCC accomplish a facilities reduction:
“ACA is very pleased to see the FCC remains firmly committed to establishing true regulatory fee parity between cable/IPTV providers and satellite TV’s DirecTV and Dish – respectively, the second-largest and fourth-largest multichannel video programming distributors (MVPDs). Achieving this goal will mean that the burden of supporting the FCC’s Media Bureau is distributed fairly among all types of MVPDs. As the FCC noted, the Media Bureau’s oversight and regulatory work related to cable/IPTV providers and DBS providers are similar. In ACA’s view, fee parity is also essential because smaller MVPDs should not be put in a position, by government policy, of subsidizing their largest pay-TV competitors.
“For the next year at least, despite the increase in DBS fees, cable’s fee burden with remain substantial. The FCC plans to collect $1.00 per subscriber from cable operators. Particularly in light of the substantial and continuing cable/IPTV-DBS fee disparity, the FCC deserves praise for dismissing Dish’s assertion that the year-over-year increase in the DBS fee from 12 cents to 27 cents – a monthly increase from 1 cent to roughly 2 cents per subscriber – would subject its customers to ‘rate shock.'”
About the American Cable Association: Based in Pittsburgh, the American Cable Association is a trade organization representing nearly 750 smaller and medium-sized, independent cable companies who provide broadband services for nearly 7 million cable subscribers primarily located in rural and smaller suburban markets across America. Through active participation in the regulatory and legislative process in Washington, D.C., ACA’s members work together to advance the interests of their customers and ensure the future competitiveness and viability of their business. For more information, visit https://acaconnects.org/