THE cable regulator expects to collect $132 million in licence fees or nine per cent more than year-earlier levels despite 70 per cent of operators signalling payment difficulty due to higher arrears associated with the recession.

In fact, 30 per cent of subscriber television (STV) licensees were non-compliant and 40 per cent had partially paid licence fees to the Broadcast Commission of Jamaica (BCJ); according to its latest Monitoring and Compliance Report obtained by the Observer. The report published this month, reviewed three quarters from July 2009 to March 2010. Sanctions for non-compliance can range from a 20 per cent penalty for late payment to recommendations for licence suspension.

The BCJ conducted a series of visits with licensees across the island over the review period and found that the global economic recession was impacting revenues with indications of a real decline of between 15-45 per cent.

“This was largely attributed to some cable operators carrying a high number of subscribers in arrears. In some instances there was also evidence of deficiency in management. These matters are receiving the attention of the Broadcasting Commission both in terms of its regulatory impact assessment and plans to assist the sector in improving management and financial capabilities,” stated the BCJ in response to Observer queries.

It meant that only thirty per cent of STV licensees have paid their fees including Central Communication Services, Flow, Cornwall Communications, First Choice Cable, General Satellite Network, Inntech Communications, Jamaica Cablevision, Linscom Network, Logic One, Mars Cable Vision, Mikes Electronics & Cable Network, Santastic Cable Systems, Summit Satellite Systems, Tru Star Cable Television Network and Westar Communications.

STV operators are required to pay an annual licence fee of five per cent of their gross subscription income which totalled $121 million in 2009/10 and is slated to increase to $132 million this fiscal year.

“The adjustment in licence fee projection for 2010/11 ($132.3 million) is in line with inflation and projected adjustments in cable fees, coupled with anticipated improvement in compliance,” stated the BCJ.

The Observer contacted a number of operators which were listed as non-compliant but were unable to get management up to print time for comment.