How does the new law affect royalty rates for cable operators?
STELA adjusts the rates that larger cable systems (those grossing more than $527,600 and filing Statement of Account Form 3) pay under the section 111 license. The “base” royalty rates that apply to Form 3 systems, starting with the first accounting period of 2010, are as follows: (1) the fee for the first “distant signal equivalent” (DSE) will increase from 1.013 percent to 1.064 percent; (2) for each of the second through fourth DSEs, the fee will increase from 0.668 percent to 0.701 percent; and (3) for the fifth DSE and each additional DSE beyond the fifth DSE, the fee will increase from 0.314 percent to 0.330 percent.
