Broadcast Surcharge

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• What is "Broadcast Surcharge?"

  Federal law allows local U.S. broadcast television stations (i.e., affiliates of networks such as CBS, NBC, ABC, Fox, etc.) to negotiate with cable and satellite providers in order to obtain "consent" to carry their broadcast signals (Cable Television Consumer Protection and Competition Act of 1992). 

  As a direct result of local broadcast, or "network-affiliated," TV stations increasing the rates to Madison Communications Company to distribute their signals to our customers, we will be passing those charges on as a Broadcast TV Surcharge, in the Taxes and Fees section of the billing statement. These local TV signals were historically made available to Madison at no cost, or at a nominal cost. However, in recent years the prices demanded by local broadcast TV stations have necessitated that we pass these costs on to customers.  

• Why is there a charge appearing on my cable bill for "Broadcast Surcharge?"

  The Broadcast TV Surcharge is a pass through reflecting charges assessed to Madison by the owners of local broadcast, or local "network-affiliated," TV stations. While broadcast stations distribute their signals over the air using free spectrum granted to them by the federal government, they charge Madison significant amounts to carry their TV signals. These signals were historically made available to Madison at no cost, or at a nominal cost. However, the prices now demanded by broadcast stations have necessitated that we pass these costs on to customers.

• Why is there a Broadcast Surcharge now?

  These signals were historically made available to Madison at no cost, or at a nominal cost. However, the prices now demanded by broadcast stations have necessitated that we pass these costs on to customers.  

• Why can local stations charge for signal carriage?

  Broadcast TV stations distribute their signals over the air, using free spectrum granted to them by the federal government. In effect, taxpayers are subsidizing the distribution of broadcast, or "network-affiliated," TV signals. These same broadcast TV stations are then allowed by the government to charge for their signals — and if we don’t agree to pay, broadcasters can force us to drop their channels, thereby adversely impacting our customers. We are in favor of changes to the law that created this situation, and if those changes are successful, we will remove these broadcast TV charges.

• Why are local stations treated differently than others?

  Federal law treats them differently. Unlike cable TV networks, local broadcast TV stations distribute their signals over the air, using free spectrum granted to them by the federal government. In effect, taxpayers are subsidizing the distribution of broadcast TV signals. These same broadcast TV stations are then allowed by the government to charge for their signals — and if we don’t agree to pay, broadcasters can force us to drop their channels, thereby adversely impacting our customers.

• Are all local broadcasters charging Madison?

  Broadcast stations have the option of requiring Madison to carry their stations for no monthly fee, or opting to negotiate a charge to Madison for the right to carry their station. It sounds confusing, but the laws leave little option for companies like Madison. While there may still be some stations that do not demand payment from Madison for carriage, other local TV stations require significant payment from Madison, and it is their charges that are reflected in the Broadcast TV Surcharge.