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FCC – Current Structure and Its Role in the Changing Telecommunications Landscape

The Federal Communications Commission: Current Structure and Its Role in the Changing Telecommunications Landscape. Patricia Moloney Figliola, Specialist in Internet and Telecommunications Policy. January 9, 2015.
“The Federal Communications Commission (FCC) is an independent federal agency with its five members appointed by the President, subject to confirmation by the Senate. It was established by the Communications Act of 1934 (1934 Act) and is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable. The mission of the FCC is to ensure that the American people have available—at reasonable cost and without discrimination—rapid, efficient, nation- and world-wide communication services, whether by radio, television, wire, satellite, or cable. Although the FCC has restructured over the past few years to better reflect the industry, it is still required to adhere to the statutory requirements of its governing legislation, the Communications Act of 1934. The 1934 Act requires the FCC to regulate the various industry sectors differently. Some policy makers have been critical of the FCC and the manner in which it regulates various sectors of the telecommunications industry—telephone, cable television, radio and television broadcasting, and some aspects of the Internet. These policy makers, including some in Congress, have long called for varying degrees and types of reform to the FCC. Most proposals fall into two categories: (1) procedural changes made within the FCC or through congressional action that would affect the agency’s operations or (2) substantive policy changes requiring congressional action that would affect how the agency regulates different services and industry sectors. President Obama signed H.R. 82, the Consolidated and Further Continuation Appropriations Act, 2015, into law (P.L. 113-483) on December 16, 2014. The law provides the FCC with an FY2015 budget of $339,844,000. As in recent previous years, the FCC’s FY2014 budget is to be derived from regulatory fees collected by the agency rather than through a direct appropriation. The fees, often referred to as “Section (9) fees,” are collected from license holders and certain other entities (e.g., cable television systems) and deposited into an FCC account. The law gives the FCC authority to review the regulatory fees and to adjust the fees to reflect changes in its appropriation from year to year. It may also add, delete, or reclassify services under certain circumstances. There were seven bills in the 113th Congress that would have an impact on the way in which the FCC conducts its business and six hearings related to FCC operations.”

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