The Obama Administration is looking to fund the proposed American Jobs Act in part by directing the FCC to assess over $ 5 billion in spectrum use fees over the 10-year period (Sec. 278) The fees would apply to anyone who holds any type of spectrum except broadcast TV and/or public safety licensees who get their authorization through the auction. However, the auction winner exception only applies to the initial license term or until the license is modified, at which point the fees would be charged. If passed, the Jobs Act would direct the FCC to collect $200,000,000 in fees for the 2012 fiscal year. Under the Act the FCC would be allowed to revoke spectrum use authorization for failure to pay. In addition to the spectrum use fee, the Jobs Act includes “National Wireless Initiative” which grants the FCC the authority to:
→ Conduct multiple spectrum incentive auctions
→ Re-allocate federal government-held spectrum for private use
→ Re-allocate of “D Block” for public safety use
It is very early to predict if the Jobs Act is likely to be enacted as the overall cost of the proposal is estimated at $447 billion and it faces strong opposition in the Congress from both parties.
The National Association of Broadcasters, in cooperation with CTIA – The Wireless Association, the National Satellite Association, National Religious Broadcasters and PCIA – The Wireless Infrastructure Foundation, drafted a joint letter to the Members of the Super Committee on Deficit Reduction asking the committee members to reject the Spectrum Fee provision of the Obama Job’s Act.
The MAB will continue to monitor this proposal closely.