Lawyer Article

The Federal Communications Commission has concluded its Fiscal Year (FY) 2005 regulatory fee proceeding. The FY 2005 regulatory fee payment is due no later than 11:59 PM on September 7, 2005.

Regulatory Fee Obligation

Cable television systems operating on October 1, 2004 must pay a regulatory fee of $0.72 per subscriber for all of the community units (CUIDs) in which they operate. The number of basic cable subscribers that you served on December 31, 2004 should be used as the basis from which to calculate your fee payment.

The Number of Subscribers In a Community Unit is derived from the following formula: Number of single family dwellings + Number of individual households in multiple dwelling units (e.g., apartments, condominiums, mobile home parks, etc.) paying at the basic subscriber rate + Number of bulk-rate customers + Number of courtesy and free service. (NOTE: Bulk-Rate Customers = total annual bulk rate charge ÷ basic annual subscription rate for individual households).

Licensees of CARS facilities must pay a regulatory fee of $155.00 for each CARS facility that was operating on October 1, 2004. In instances where a license or authorization was transferred or assigned after October 1, 2004, the fee must be paid by the party that is the licensee or holder of the authorization on the date that the fee payment is due.

Fee Assessment Letters

The Commission will be generating fee assessment letters for cable operators who are on file as having paid FY 2004 regulatory fees for their basic cable subscribers. The letter will: announce the due date for payment of the FY 2005 fees, reflect the subscriber count for which the operator paid FY 2004 fees; and request that the operator access a Commission-authorized web site to provide its aggregate subscriber count as of December 31, 2004. Operators will be required to briefly explain any difference between subscriber numbers as of that date and the number for which FY 2004 fees were paid.

Payment Procedures

Payment procedures are the same as they were in prior years. You must complete the FCC form 159 and certify to the subscriber count in Block 30 of the Form.

You may pay your regulatory fee for all of your basic service subscribers with a single line entry on Form 159 without having to list your individual CUIDs. You may submit a single payment for all of your regulatory fee obligations, i.e., "subscriber fees" and all CARS licenses; however, you must list each individual CARS call sign on Form 159.

Again, the FY 2005 regulatory fee payment is due no later than 11:59 PM on September 7, 2005. Please call us if you have any questions or require assistance in making your payments.

Please contact Mark Palchick at (202) 857-4411 or via email or Howard Barr if you have any questions regarding this advisory.