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Competitors Scrutinize DBS Fee Structure
What video competitors would like to see DBS services pay regulatory fees based on the number of subscribers?
Satellite TV's competitors are pushing the Federal Communications Commission to revisit the way it assesses fees on small dish services. Both DIRECTV and DISH Network have opposed moves to incur regulatory fees based on the number of subscribers. Instead, they want to keep intact regulatory fees assessed for satellites and earth stations.
Nonetheless, the National Cable and Telecommunications Association told the FCC that fees assessed on cable operators are higher than fees paid by DBS. "Whatever basis the commission previously had for treating DBS providers differently than cable operators, such disparate treatment cannot be justified in today's highly competitive video marketplace," the association said in its comments.
"The fact that the two leading DBS providers now serve one out of every three multichannel video service subscribers is conclusive proof that they are benefiting significantly from the commission's regulation and that there is no basis for allowing them to continue to benefit from lower fees than the cable operators with whom they compete," NCTA added in its comments.
Verizon said in a filing recently sent to the FCC that competing video providers are not treated fairly by the current regulatory fee regime.
"The current fee structure requires a video provider operating a cable television system to pay fees based on the number of its subscribers, but a DBS provider to pay fees based on the number of licenses it has," the telco giant said. "This results in DBS providers paying far lower fees than cable providers."
What video competitors would like to see DBS services pay regulatory fees based on the number of subscribers?
Satellite TV's competitors are pushing the Federal Communications Commission to revisit the way it assesses fees on small dish services. Both DIRECTV and DISH Network have opposed moves to incur regulatory fees based on the number of subscribers. Instead, they want to keep intact regulatory fees assessed for satellites and earth stations.
Nonetheless, the National Cable and Telecommunications Association told the FCC that fees assessed on cable operators are higher than fees paid by DBS. "Whatever basis the commission previously had for treating DBS providers differently than cable operators, such disparate treatment cannot be justified in today's highly competitive video marketplace," the association said in its comments.
"The fact that the two leading DBS providers now serve one out of every three multichannel video service subscribers is conclusive proof that they are benefiting significantly from the commission's regulation and that there is no basis for allowing them to continue to benefit from lower fees than the cable operators with whom they compete," NCTA added in its comments.
Verizon said in a filing recently sent to the FCC that competing video providers are not treated fairly by the current regulatory fee regime.
"The current fee structure requires a video provider operating a cable television system to pay fees based on the number of its subscribers, but a DBS provider to pay fees based on the number of licenses it has," the telco giant said. "This results in DBS providers paying far lower fees than cable providers."
