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 LocalTel Communications 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 previously made available to LocalTel Communications at no cost, or low cost. However, in recent years the prices demanded by local broadcast TV stations have necessitated that we pass these costs on to customers.
The Broadcast TV Surcharge is a pass through reflecting charges assessed to LocalTel Communications 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 LocalTel Communications significant amounts to carry their TV signals. These signals were historically made available to LocalTel Communications at no cost, or low cost. However, the prices now demanded by broadcast stations have necessitated that we pass these costs on to customers.