October 2014

Retransmission fees paid to broadcast stations will reach $9.3 billion in 2020, according to a new projection by SNL Kagan.

Kagan had previously estimated that retransmission fees will hit $7.64 billion in 2019 and raised that to $8.78 billion in its new forecast. This year, Kagan estimates that retransmission payments will be $4.9 billion.

Of 125 nations examined in this report, 31 impose combined information and communications technology tax and tariff rates of over 5 percent of product or service costs, with several countries adding more than 20 percent to costs. Another 40 countries impose taxes and tariffs of between 1 and 5 percent.

Economic studies demonstrate that these added costs limit ICT adoption which slows productivity growth. This report examines ICT tax and tariff policies around the world, assesses the negative impact of these policies on ICT adoption and productivity growth and recommends that nations eliminate all tariffs and discriminatory taxes on ICT goods and services. Countries add taxes and tariffs to a range of consumer ICT products and services, including mobile phones and plans, computers and broadband service, and other electronics products.

While 68 nations add at least 1 percent to the cost of ICT goods and services, Bangladesh imposes the highest costs, adding 57.8 percent to the cost of ICT goods and services over and above the country’s universal 15 percent VAT. In second and third place are Turkey and the Republic of the Congo, which add 26.1 percent and 23.8 percent, respectively. Greece, the only member of the OECD to rank in the top 20 countries, imposes 9.6 percent added ICT costs. Chile, only other OECD country in the top 50, adds 4 percent to costs. The majority of the countries that impose high costs are lower- or middle-income countries located in Africa, South Asia, and South America.

The Federal Communications Commission’s Media Bureau announced the addition of three individuals to its front office staff and one recent promotion. Kalpak Gude has joined as an Associate Bureau Chief, Julissa Marenco as an Assistant Bureau Chief, and Susan Singer as Chief Economist. Holly Saurer was promoted to Associate Bureau Chief.

• Gude comes to the Media Bureau from the Wireline Competition Bureau where he was Chief of the Pricing Division, handling issues such as inmate calling services, special access, and inter-carrier compensation. Prior to joining the FCC in 2013, he was Vice President and Deputy General Counsel of Intelsat. He will primarily work on broadcast ownership and other related issues.
• Marenco, who most recently oversaw management and strategic direction of television and radio stations as President of ZGS Communications - Station Group, has over 15 years of media, government, and public relations experience. Marenco will concentrate on broadcaster issues related to media ownership, the incentive auction, and other matters.
• Singer, a veteran of the Wireless Telecommunications Bureau, was its Chief Economist before joining the Media Bureau. She also served in a variety of positions in WTB’s Spectrum & Competition Policy Division, including as Deputy Chief, Associate Division Chief, and Chief of Staff. During her 14 year WTB tenure, Singer worked on a variety of issues, among them the Verizon-SpectrumCo, AT&T/T-Mobile, and AT&T Leap transactions. Singer will advise on complex economic issues related to broadcast ownership and merger reviews, among other areas.
• Saurer most recently served as Senior Counsel in the Media Bureau. Prior to that position, she was Acting Legal Advisor to Commissioner Rosenworcel and an Attorney-Advisor in the MB’s Policy Division. She will continue to work on issues pertaining to broadcast licensing and transactions, as well as other matters.

The number of detected cyberattacks skyrocketed in 2014 -- up 48 percent from 2013 -- and they are costing companies more money, according to two global studies.

This year is expected to see 42.8 million cyberattacks, roughly 117,339 attacks each day, a study from consulting firm PricewaterhouseCoopers found. Nearly all companies surveyed were hit by a cyberattack in 2014, costing them hundreds of thousands, potentially millions, of dollars. “It is no surprise to find that as the number of information security incidents continues to mount, so do financial losses,” the authors of the study said. The firm cited a number of major data security breaches in 2014 that drove up the financial impact for companies. Another report from security software vendor Kaspersky Lab estimated an average data security incident costs a company $720,000.