Proposed changes to the FCC’s regulatory-fee reallocation regime would...
Proposed changes to the FCC’s regulatory-fee reallocation regime would “deprive submarine cable operators of the ability to recover their regulatory costs and could render their services uneconomic,” representatives of the North American Submarine Cable Association said in a meeting with…
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Matthew Berry, chief of staff to Commissioner Ajit Pai. “Unlike traditional retail services with monthly customer bills, long-term submarine cable capacity sales offer few opportunities for cost recovery or pass throughs,” the group said (http://bit.ly/13my8bc). “Submarine cable operators are therefore extremely sensitive to regulatory fees and charges, as their margins are already razor-thin.” U.S. national security is at risk if submarine cable operators move their operations elsewhere to avoid higher regulatory fees, NASCA said. “If submarine cable operators were increasingly to choose to land cables in Canada (which is ever-more-attractive given recent relaxation of foreign-ownership restrictions) or Mexico in order to avoid increased U.S. regulatory costs, the result would adversely impact national-security interests as articulated by various U.S. Government agencies,” the filing said. “The absence of U.S. landings would deprive the Commission of licensing jurisdiction over such cables and consequently reduce U.S. Government oversight of the supply and operational arrangements for such systems."