Telesat Canada v. Federal Communications Commission, No. 20-1234 (D.C. Cir. 2021)Annotate this Case
A 1993 Communications Act amendment required the FCC to collect regulatory fees to recover the costs of its activities. “Space stations” (satellites) were included in the schedule but there were blanket exceptions for governmental or nonprofit entities. Initially, the FCC limited regulatory fees to those entities it licensed, which does not include foreign-licensed satellites. In 2013, the FCC invited comment on that conclusion but declined to decide the issue. The 2018 “Ray Baum’s Act,” 47 U.S.C. 159, changed the FCC’s authority to adjust the fee schedule based on the number of “units” (satellites) subject to fees rather than either the number of units or licensees and added the power to adjust fees based on factors “reasonably related to the benefits provided" by FCC activities.
In 2019, the FCC again sought comment, noting that foreign-licensed satellites that serve U.S. customers benefit in the same manner as their U.S.-licensed competitors. The FCC concluded it should adopt regulatory fees for non-U.S. licensed satellites with U.S. market access. Foreign-licensed satellite operators must petition the FCC to access the U.S. market. The FCC devotes significant resources to processing such petitions. The current exemption “places the burden of regulatory fees" solely on U.S. licensees; commercial foreign-licensed satellites with general U.S. market access did not exist until 1997. The D.C. Circuit denied a petition for review. The petitioners have not shown that the FCC unreasonably interpreted the Act or provided inadequate notice of the Order.