Many different kinds of authorization fees have been imposed on the telecommunications industry. Transparency in the authorization process is enhanced by differentiating between different kinds of authorization fees and by clearly identifying which authorization fees apply in each authorization situation. The main types of authorization fees include:
- administrative fees, based on cost-recovery for regulators;
- cost-based spectrum management fees;
- discretionary administrative or spectrum fees (i.e. not cost-based); established on a one time or periodic basis (e.g. annually);
- royalties or highest bid ‘auction fees’ paid to a government or regulatory authority for a authorization, and unrelated to the administrative costs of regulation; and
- other special fees bundled with authorization fees, such as access deficit charges, universal service fees, industry taxes etc.; such fees should be separated from authorization fees.