Federal Communications Commission DA 26-184 Before the FEDERAL COMMUNICATIONS COMMISSION WASHINGTON, D.C. 20554 In the Matter of Assessment and Collection of Regulatory Fees for Fiscal Year 2023 Review of the Commission’s Assessment and Collection of Regulatory Fees for Fiscal Year 2024 Assessment and Collection of Space and Earth Station Regulatory Fees for Fiscal Year 2024 ) ) ) ) ) ) ) ) ) ) MD Docket No. 23-159 MD Docket No. 24-86 MD Docket No. 24-85 ORDER Adopted: February 26, 2026 Released: February 26, 2026 By the Managing Director, Office of Managing Director: I. INTRODUCTION 1. The Commission has before it requests from regulatees to waive the 25 percent late payment penalty associated with their Fiscal Year (FY) 2023 or 2024 regulatory fees. For the reasons set forth below, we deny the regulatees’ requests to waive the late payment penalty. II. BACKGROUND 2. Section 9 of the Communications Act of 1934, as amended (the Act), requires the Federal Communications Commission (the FCC or Commission) to assess regulatory fees each year in an amount that can reasonably be expected to equal the amount of its annual appropriation. 47 U.S.C. § 159(a), (b). Regulatory fees cover all of the Commission’s non-auction costs, including direct costs, such as salaries and expenses; indirect costs, such as overhead functions; as well as statutory and support costs. Assessment and Collection of Regulatory Fees for Fiscal Year 2023, MD Docket No. 23-159, Report and Order, 38 FCC Rcd 8071, 8072, para. 3 (2023) (FY 2023 Report and Order). To that end, each year, the Commission establishes a final day on which regulatory fee payments must be received before they are considered late, a deadline after which the Commission must assess charges that include a statutory late payment penalty, as well as interest, penalties, and charges of collection. 47 U.S.C. § 159(c)(1) and 47 CFR §§ 1.1157 and 1.1164; see also 31 U.S.C. § 3717 and 47 C.F.R. § 1.1940. 3. Specifically, Section 9(c)(1) of the Act requires the Commission to assess a late payment penalty of 25 percent on any regulatory fee not paid in a timely manner. 47 U.S.C. § 159a(c)(1). The Commission’s rules also provide that “[a]ny late payment or insufficient payment of a regulatory fee, not excused by bank error, shall subject the regulatee to a 25 percent penalty of the amount of the fee or installment payment which was not paid in a timely manner.” 47 CFR § 1.1164. A timely payment is one that is received at the Commission’s lockbox bank by the due date. Id. The penalty required by Section 9(c)(1) and other related, additional charges are not limited to situations where the failure to pay was knowing or willful. 4. Regulatees seeking to waive the 25 percent late payment penalty must meet a high standard. Under Section 9A of the Act, Congress provided the Commission with authority to waive, reduce, or defer payment of a regulatory fee in specific instances only “for good cause shown, where the waiver would serve the public interest.” 47 U.S.C. § 159a(d). In resolving past requests under Section 9A, the Commission has repeatedly upheld OMD’s refusal to waive the late payment penalty, and granted waivers only in the most extraordinary circumstances involving events outside of regulatees’ control, such as the FY 2001 penalties in the aftermath of the events of September 11, 2001. In the Matter of NTT America, Inc., Memorandum Opinion and Order, 21 FCC Rcd 8088, 8089, para. 5 (2006); see also In the Matter of McLeodUSA Telecommunications Services, Inc., Memorandum Opinion and Order, 19 FCC Rcd 6587, 6589, para. 8 (2004). Regulatees are expected to know and comply with the Commission’s rules and regulations and will not be excused for violations absent clear mitigating circumstances. In the Matter of Sitka Broadcasting Co., Inc., Memorandum Opinion and Order, FCC 79-144, 70 FCC 2d at 2378 (1979), citing Lowndes County Broadcasting Co., Memorandum Opinion and Order, FCC 70-504, 23 FCC 2d 91 (1970) and Emporium Broadcasting,Co., Memorandum Opinion and Order, FCC 70-579, 23 FCC 2d 868 (1970). 5. Alongside this statutory standard and the Commission’s longstanding interpretation of it, is the fact that the Commission’s rules and procedures are calibrated to reduce delay and uncertainty in making payments on-time. For example, Section 1.1158 of the Commission’s rules permits payment of regulatory fees in forms (e.g. electronic transfer) that would not be affected by extrinsic factors, such as uncertainties associated with the timing of mail delivery or the possibility of poor or approaching weather conditions that might slow delivery. In the Order implementing the Act, the Commission rejected arguments that it consider a regulatory fee payment to be timely-submitted if the payment is postmarked by the date it is due. Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Report and Order, 9 FCC Rcd 5333, 5347, para. 59 (1994). And finally, the Commission regularly informs licensees of the deadlines and payment process for regulatory fees on the its website, through Orders and public notices, industry-specific guidance, as well as its Fee Filer system and CORES. See, e.g., the Commission’s regulatory fees website at www.fcc.gov/regfees (last visited Aug. 18, 2025). 6. With respect to the FY 2023 fees at issue here, the Commission’s assessment of FY 2023 regulatory fees was set forth in the Assessment and Collection of Regulatory Fees for the Fiscal Year 2023, Report and Order and Further Notice of Proposed Rulemaking (FY 2023 Report and Order), released on August 10, 2023. The FY 2023 Report and Order established a schedule of regulatory fees, as set forth in Appendices B and C, to collect $390,192,000 for FY 2023. Regulatory fee payments were required to be received by the Commission by no later than 11:59 PM EDT on September 20, 2023, although regulatees could submit payments before the due date. Procedures for Filing Requests for Waiver, Reduction, Deferral and Installment Payment of Fiscal Year 2023 Regulatory Fees, Public Notice, DA 23-771 (OMD Aug. 28, 2023). In the FY 2023 Report and Order, the Commission codified two temporary measures in Sections 1.1166 and 1.1914 of the Commission’s rules from FYs 2020-2022, and continued certain temporary COVID-19 related changes that were intended to simplify and streamline its waiver process to assist regulatees seeking waiver relief. The Commission concluded, however, that it could not relax the standard for granting a waiver or deferral of fees, penalties, or other charges for late payment of its regulatory fees under Section 9A of the Act. 7. Similarly, the Commission's assessment of FY 2024 regulatory fees was set forth in the Assessment and Collection of Regulatory Fees for the Fiscal Year 2024; Review of the Commission’s Assessment and Collection of Regulatory Fees, Assessment and Collection of Space and Earth Station Regulatory Fees for Fiscal Year 2024, Second Report and Order (FY 2024 Report and Order), released on September 6, 2024. The FY 2024 Report and Order established a schedule of regulatory fees, as set forth in Appendices B and C, to collect $390,192,000 for FY 2024. Regulatory fee payments were required to be received by the Commission no later than 11:59 PM EDT on September 26, 2024, although licensees could submit payments before the due date. Procedures for Filing Requests for Waiver, Reduction, Deferral and Installment Payment of Fiscal Year 2024 Regulatory Fees, Public Notice, DA 24-916 (OMD Sept. 10, 2024). The FY 2024 Report and Order ended the temporary COVID-19 based relief measures from previous years, and similarly made no changes to the Commission’s waiver standard for late payment penalty. In addition, the FCC’s Office of Managing Director (OMD) released a Public Notice on September 10, 2024 (FY 2024 Public Notice), which described, in detail, the Commission’s rules regarding waiver requests for regulatees in “red light” status, waivers for financial hardship, and requests for installment payments. Id. III. DISPOSITIONS OF REQUESTS FOR WAIVER, REDUCTION, AND/OR DEFERRAL OF REGULATORY FEES 8. The following requests for waiver, reduction, and/or deferral of the 25 percent late payment penalty are denied for failing to demonstrate good cause or extraordinary circumstances outweighing the public interest in collecting the penalty for late payment of the regulatory fees: 9. ABS Global Ltd. ABS Global Ltd. (ABS) requested a waiver of the 25 percent late payment penalty associated with its FY 2023 regulatory fees. In its request, ABS argues that prior to receiving a demand letter from the Commission, it was unaware of any outstanding fees but made full payment on October 12, 2023. ABS attached a screenshot of CORES, noting that CORES did not list the issue date of the invoice for its initial regulatory fees, nor the payment due date. ABS argues that the Commission should grant a waiver because it was not negligent in the payment of the initial regulatory fee amount. Neither (a) the lack of the issue date or due date in CORES, nor (b) lack of negligence by ABS, constitute good cause or extraordinary circumstances. Therefore, ABS’ request is denied. 10. Beacon Communications. Beacon Communications (Beacon) requested a waiver of the late payment penalty associated with its FY 2023 regulatory fees or, in the alternative, application of the late payment penalty for FY 2023’s fees to FY 2024’s regulatory fees. Beacon’s Chief of Staff, Amelia Burdsall, did not explain why good cause exists to issue a waiver. Beacon fails to establish the extraordinary circumstances that would justify a waiver of the late payment penalty, their waiver request is denied. 11. Cincinnati Bell Extended Territories, LLC. Cincinnati Bell Extended Territories, LLC (Cincinnati Bell) requested a waiver of the late payment penalty associated with its FY 2023 regulatory fees for FRN 00163311597. CB’s request noted that the publication date for the FY 2023 Report and Order in the Federal Register was September 15th and fees were due on September 20th. As regulatees are expected to know the Commission’s rules and notice of the FY 2023 fees was provided throughout the year, we deny Cincinnati Bell’s request. See, e.g., Review of the Commission’s Assessment and Collection of Regulatory Fees, Assessment and Collection of Regulatory Fees for Fiscal Year 2023, Report and Order and Notice of Proposed Rulemaking, FCC 23-24, 38 FCC Rcd 4580 (rel. May 15, 2023) (FY 2023 NPRM); see also Commission Registration System (CORES) is Open for Payment of Fiscal Year (FY) 2023 Regulatory Fees, Public Notice, 38 FCC Rcd 7771 (rel. Aug. 28, 2023). 12. Cogent Communications, Inc. Cogent Communications, Inc. (Cogent) requested a waiver of the late payment penalty associated with its FY 2023 regulatory fees. Cogent missed the fee deadline because its staff was working nights and weekends on an acquisition of the company. Cogent stated that it did not receive notice of the fees, but has since updated its procedures and tax calendar to avoid late payments in the future. An unintended oversight does not constitute good cause or extraordinary circumstances, Cogent’s request is denied. 13. Crown Castle Fiber LLC. Crown Castle Fiber LLC (CCF) requested a full or partial waiver of the late payment penalty, stating that its attempt to pay its FY 2024 regulatory fees on September 26th was blocked for exceeding its bank’s maximum per-debit amount. CCF asserts that when it discovered the block on September 27th, the day after which its fees were due, CCF contacted the bank and the Commission to ensure payment, but could not, because the fee was reflected as paid within CORES. CCF requested a waiver based on (a) the above, (b) its prompt payment of the full regulatory fee amount and 25 percent penalty on the next business day, and (c) its longstanding history of timely compliance with the Commission’s regulatory fee rules. In the absence of a total waiver of the fees, CCF requested a downward adjustment of the penalty from 25 percent to 5 percent of the fee that remained outstanding as of the due date. As the late payment was the result of CCF exceeding its banks’ maximum per-debit limit—not bank error—on the day fees were due, its request fails to demonstrate good cause or extraordinary circumstances. 14. Estech Systems, Inc. Estech Systems, Inc. (Estech) requested a waiver of the late payment penalty regarding its FY 2023 regulatory fees. Estech requested a waiver as a courtesy, based on their payment history (punctual) and the fact that they were only a few days late. Without showing extraordinary circumstances that would justify a waiver of the late payment penalty, Estech’s waiver request is denied. 15. EverGem. EverGem’s CEO, Nathan Weis, requested a waiver of the late payment penalty associated with its FY 2024 regulatory fees. Mr. Weis stated that EverGem had insufficient funds when fees were due. While acknowledging that payment is due every September, Mr. Weis cited the short time between the release and the payment deadline, and the fact that EverGem paid its fees (including the penalty) on October 2, 2024. EverGem fails to establish the extraordinary circumstances that would justify a waiver of the late payment penalty, their waiver request is denied. 16. Five9, Inc. Five9, Inc. (Five9) requested a waiver of the late payment penalty for its FY 2024 regulatory fees, citing internal administration error. Five9 noted that it paid only a few days after the due date and has timely filed its regulatory fee payments for many years. Because an internal administrative error does not constitute good cause or extraordinary circumstances, Five9’s request is denied. 17. Fun Media Group of Tennessee, LLC. On behalf of Fun Media Group of Tennessee, LLC (Fun Media), Mr. Charles Steven Sudbury requested a waiver of the late payment penalty associated with Fun Media’s FY 2023 regulatory fees. Mr. Sudbury states that he contacted the FCC in an attempt to pay Fun Media’s fees on time, and spoke to an FCC employee in September 2023. When they could not find a bill or amount to pay for FRN 0026331157, the employee told him they “must be exempt again.” Mr. Sudbury did not know the full name of the FCC employee, and said she refused to give him her last name. Fun Media discovered it was on the Commission’s redlight in February 2024, at which time the fees were paid (including the penalty) with the help of legal counsel. The circumstances described do not constitute good cause or extraordinary circumstances. Therefore, the waiver request is denied. 18. General Atomics Aeronautical Systems, Inc. General Atomics Aeronautical Systems, Inc. (GAAS) stated it would like to appeal the late payment penalty for its FY 2024 regulatory fees and requested a month of relief from the penalty , stating that the FCC’s websites are challenging to navigate and failed to provide notice that the fees were due. The alleged deficiencies of the FCC’s websites and GAAS’ assumptions regarding notice do not constitute good cause or extraordinary circumstances. Therefore, GAAS’s request is denied. 19. Gregory Communications License, Inc. Gregory Communications License, Inc. (GCL) requested a waiver of the late payment penalty on its FY 2024 regulatory fees. On behalf of GCL, Christopher Morgan asserted that he attempted several times to log-in and pay the fee, but received a “no data found” message in response. Mr. Morgan stated he was informed via phone by the Commission that there “were issues with the billing” on September 3, 2024, and then informed by the Commission on October 16, 2024 that the issue had been resolved and that GCL owed the 25 percent late penalty. The circumstances described by GCL do not constitute good cause or extraordinary circumstances, therefore their waiver request is denied. 20. ICEYE US Inc. ICEYE US Inc. (ICEYE) filed a request for waiver of the FY 2024 late payment penalty associated with FRN 003054268, stating that it attempted to make payment on-time, but that funds failed to transfer to the Commission due to a clerical error. The account number was input incorrectly for the initial payment. ICEYE attached documentation verifying their attempt to pay on-time, and attributed the mistake to a miscommunication with their outside accounting team and the transition to a new payment system. Because clerical errors and mistakes do not constitute good cause or extraordinary circumstances, ICEYE’s request is denied. 21. Inland Cellular, LLC. Inland Cellular, LLC’s (Inland) CEO, Lydia Weis, requested a waiver of the late payment penalty associated with its FY 2024 regulatory fees. Ms. Weis stated that Inland had insufficient funds when fees were due. While acknowledging that payment is due every September, Ms. Weis cited the short time between the release and the payment deadline, and the fact that Inland paid its fees (including the penalty) on October 2, 2024. Inland fails to establish the extraordinary circumstances that would justify a waiver of the late payment penalty, therefore their waiver request is denied. 22. IT Experts LLC. On behalf of IT Experts LLC (IT Experts), Ms. Francine Thelman requested a waiver of the late payment penalty associated with IT Experts’ FY 2023 regulatory fees. Ms. Thelman stated that IT Experts never received an invoice and was never notified that the regulatory fees were due. As regulatees are expected to know the Commission’s rules and notice of the FY 2023 fees was provided throughout the year, we deny IT Experts’ request. 23. KNLT-FM. KNLT-FM (KNLT) requested that the late payment penalty associated with its FY 2024 regulatory fees be forgiven or waived based on its “ongoing issues with the CORES system” and changes in deadlines. KNLT states it was “not aware that we needed to check the portal daily,” requested clarification as to how the fee was calculated, and noted that the fee is high for its market. The 25 percent late fee is set by statute and the circumstances described do not constitute good cause or extraordinary circumstances, therefore their waiver request is denied. 24. Kumo Cloud Solutions, Inc. Kumo Cloud Solutions, Inc. (Kumo) requested a waiver of the late payment penalty associated with its FY 2023 regulatory fees. Kumo cited a system failure involving all data information payments filed on behalf of the company as a causal factor in paying late. Kumo stated that the situation has been rectified and steps taken to avoid late payments in the future. The circumstances described by Kumo do not constitute good cause or extraordinary circumstances, therefore their waiver request is denied.. 25. Momentum Telecom, Inc. Momentum Telecom, Inc. (Momentum) requested a waiver of the late payment penalty associated with its FY 2023 regulatory fees. Momentum states that it attempted to make payment on September 18th (i.e. prior to the deadline), but its ACH payment was blocked by its bank because the payee code was not listed. Momentum requested a waiver based on the fact that it intended to pay on time, and could not make another payment until the original was returned in the CORES system. As the late payment was primarily the result of Momentum not listing the payee code to the bank in its initial payment, its request fails to demonstrate good cause or extraordinary circumstances. 26. NHK Japan Broadcasting Corporation. On behalf of NHK Japan Broadcasting Corporation (NHK Japan), Kozue Hamamoto filed a request for waiver or reduction of NHK Japan’s FY 2024 late payment penalty, asserting lack of direct notification by the Commission and logistical challenges related to processing international payments by the deadline. In the request, Ms. Hamamoto stated that (a) NHK Japan was unable to get direct notification of the announcement or deadline via e-mail or any other accessible means from the FCC; (b) timezone differences and logistical challenges compounded the difficulty posed by a two-week deadline for international payment; and (c) NHK Japan paid its FY 2024 regulatory fees and the 25% late payment penalty in November 2024. As regulatees are expected to know the Commission’s rules and notice of the FY 2024 fees was provided throughout the year, we deny NHK Japan’s request. See, e.g., Review of the Commission’s Assessment and Collection of Regulatory Fees for Fiscal Year 2024, MD Docket No. 24-86, Second Notice of Proposed Rulemaking, FCC 24-68, 39 FCC Rcd 7173 (rel. June 13, 2024) (FY 24 NPRM); see also Commission Registration System (CORES) is Open for Payment of Fiscal Year (FY) 2024 Regulatory Fees, Public Notice, 39 FCC Rcd 10462 (rel. Sept. 10, 2024). 27. Rubber City Radio Group. Rubber City Radio Group (RCRG) filed a waiver request for the late payment penalty associated with its FY 2023 regulatory fees. RCRG explained that it is a small independent regional broadcaster, and that it has never been late on regulatory fee payment. RCRG fails to show good cause or extraordinary circumstances, therefore their waiver request is denied. 28. Siga Broadcasting Corporation. Siga Broadcasting Corporation (Siga) requested a waiver of the late payment penalty associated with its FY 2023 regulatory fees. Siga noted that it attempted to pay with a credit card by the deadline, but the payment was not able to process in time due to the card’s limit on transaction amounts. Because clerical errors and mistakes do not constitute good cause or extraordinary circumstances, Siga’s request is denied. 29. Telesat Canada. Telesat Canada (TC) requested a waiver and a refund of the 25 percent penalty associated with its FY 2024 regulatory fees on the basis of a clerical oversight in which one of its payments failed to process by the September 26th deadline. TC notes that the Commission received the final base fee payment three business days after the deadline and the late fee payment five days after the initial deadline. TC notes that its NGSO fee increased from $347,755 in FY 2023 to $964,200 in FY 2024, and that, recognizing the significant increase in fees year-over-year in FY 2024, the Commission permitted regulatees like TC to submit requests to file payment installment plans. Telesat argues that its large late payment penalty ($387,162) is disproportionate to the small delay in payment. The circumstances described do not constitute good cause or extraordinary circumstances, therefore TC’s request is denied. 30. Telin Systems LLC. Telin Systems LLC (Telin) requested a waiver of the late payment penalty for its FY 2023 regulatory fees. Telin stated that it outsourced its filing/compliance work to a 3rd party contractor who did not make its fee payments on time. Telin added that it has brought in an in-house expert to ensure timely payments going forward and attached an invoice showing payment in full. Mistakes and failure to properly manage third party vendors do not constitute good cause or extraordinary circumstances, Telin’s request is denied. 31. Accordingly, IT IS ORDERED that, pursuant to the authority contained in Section 9A(d) of the Communications Act of 1996, as amended, 47 U.S.C. § 159a(d) and the authority delegated in sections 0.231(a) and 1.1166(a) of the Commission’s rules, 47 CFR §§ 0.231(a) and 1.1166, the requests for waiver, reduction, dismissal and/or deferral of the late payment penalty associated with the FY 2023 and FY 2024 regulatory fees filed by the above named parties are denied. 32. IT IS FURTHER ORDERED that, pursuant to section 1.102(b)(1) of the Commission’s rules, 47 CFR § 1.102(b)(1), this order shall be effective upon release. FEDERAL COMMUNICATIONS COMMISSION Daniel Daly Managing Director Office of the Managing Director 2