ComReg wants broadcaster levy

Telcoms regulator ComReg wants RTÉ and other commercial broadcasters to be subjected to the industry levy that helps fund its…

Telcoms regulator ComReg wants RTÉ and other commercial broadcasters to be subjected to the industry levy that helps fund its activities.

In a consultation document issued yesterday, ComReg says it is appropriate that broadcasters be required to contribute towards its running costs.

The regulator proposes that RTÉ be levied €100 per transmitter, which would result in the broadcaster paying around €50,000 annually. Independent operators contracted to the Broadcasting Commission of Ireland would have to pay €16,000.

"ComReg incurs costs associated with managing spectrum for broadcast services and considers it appropriate to levy a charge in relation to those expenses," the document says.

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But cable and satellite providers would see their payments to the regulator substantially reduced should the proposals secure Government approval.

ComReg wants to charge companies on the basis of subscriber numbers, or transmitter numbers in the case of RTÉ. It is estimated that the size of the industry's contribution to ComReg coffers would fall from €4 million to €1 million as a result.

Under the current system, the levy is calculated as a percentage of turnover.

It is not largesse that motivates the ComReg. The organisation is restructuring its fees base on foot of a European Commission directive. The regulator is seeking submissions on the proposals, with a closing date of July 23rd.

ComReg's proposals arrive at the close of a difficult week for RTÉ. On Thursday it emerged the station is running a €13.5 million deficit and may require more cost-cutting to prevent it slipping deeper into the red.