SiriusXM is asking the Federal Communications Commission to waive or reduce its annual regulatory fees for two of its satellites, arguing that they no longer provide meaningful service and shouldn’t be subject to the full charge.
In a petition filed with the FCC, the satellite radio company said its XM-3 and XM-4 satellites are no longer providing primary service and instead serve as in-orbit spares. SiriusXM claims that the commission’s current methodology—charging fees based on licensed status rather than actual use—creates an unfair financial burden. Each satellite is assessed a $152,875 regulatory fee annually.
“These satellites serve only as backup and do not generate revenue,” the company wrote. “Treating them the same as active service satellites runs counter to the fee’s stated basis in regulatory costs.”
The company noted that in past proceedings the FCC has expressed a willingness to adjust fee assessments when satellites are used in a limited capacity. SiriusXM pointed to a 2015 decision involving Intelsat, where the commission reduced fees for backup satellites under similar conditions.
SiriusXM’s fleet includes multiple active satellites delivering audio content to millions of subscribers across North America. The XM-3 and XM-4 spacecraft were launched in 2005 and 2006, respectively, and have since been largely replaced by newer models with enhanced capabilities. The company says retaining them as spares improves service reliability but should not be penalized with full regulatory fees.
The FCC has not yet responded to the request. If granted, the waiver could signal a shift in how the commission views satellite redundancy in the context of its regulatory fee structure, which is designed to recover the costs of FCC oversight.
The filing comes as the commission faces broader industry pressure to modernize its fee system. Satellite operators and broadcasters alike have argued that the current framework doesn’t reflect today’s operational realities, particularly as more providers operate hybrid or non-traditional services.
SiriusXM emphasized that it is not seeking a blanket exemption, but rather a limited adjustment based on specific, demonstrable facts about the use of the two satellites. The company also said it would continue to pay full fees for its active satellites and comply with all regulatory requirements.