Comcast 2015 Annual Report Download - page 27

country’s overall cybersecurity protections. Finally, there are pending legislative proposals that could impose
new requirements on owners and operators of critical infrastructure, including us, and the FCC is considering
expanding its cybersecurity guidelines or adopting new cybersecurity requirements.
FCC Spectrum Auction
Congress has authorized the FCC to conduct an auction to repurpose some broadcast spectrum to mobile
broadband use. In this auction, licensees of full-power and Class A television stations have the opportunity to
sell some or all of their spectrum rights in exchange for cash. TV stations that do not voluntarily sell their
spectrum rights may be assigned new channels on which to operate, but the FCC must make “all reasonable
efforts” to preserve those stations’ over-the-air coverage areas and populations served, and to reimburse
them for reasonable relocation costs (subject to an aggregate limit of $1.75 billion).
NBCUniversal has submitted applications with the FCC indicating its potential interest in selling broadcast
spectrum rights. Potential bidders for the repurposed mobile broadband spectrum licenses must file their
applications with the FCC by February 10, 2016. We expect to submit an application to be a potential buyer
of those new licenses. Bidding in the auction is expected to begin in the second quarter of 2016. Filing an
application in the auction does not create any obligation to sell, bid on, or buy spectrum. We cannot predict
whether NBCUniversal will sell any of its broadcast spectrum rights, whether we will bid for or buy any of the
new mobile broadband licenses, or what the size of any proceeds or costs may be (although any such
amounts may be significant).
State and Local Taxes
Some states and localities have imposed or are considering imposing, through both legislative and admin-
istrative channels, new or additional taxes or fees on, or limiting or eliminating incentives or credits earned or
monetized by, the businesses operated by the Cable Communications and NBCUniversal segments, or
imposing adverse methodologies by which taxes, fees, incentives or credits are earned or monetized. These
include combined reporting or other changes to general business taxes, central assessments for property tax,
and taxes and fees on the businesses operated or services provided by the Cable Communications and
NBCUniversal segments. In some situations, DBS and other competitors that deliver their services over a
high-speed Internet connection do not face similar state tax and fee burdens. Congress has also considered,
and may consider again, proposals to bar or limit states from imposing taxes on these DBS providers or other
competitors that are equivalent to the taxes or fees that we pay. Congress may not extend the Internet Tax
Freedom Act, which prohibits most states and localities from imposing taxes on Internet access charges, but
expires in October 2016. Additionally, the FCC’s reclassification of broadband Internet access services as
Title II telecommunications services may cause or allow, directly or indirectly, some states and localities to
impose additional taxes and fees on our high-speed Internet business.
Environmental Matters
Certain of our business operations are subject to environmental laws and regulations since they involve air
emissions, wastewater discharges and the use, disposal and cleanup of toxic and hazardous substances.
Any failure to comply with environmental requirements could result in monetary fines, civil or criminal sanc-
tions, third-party claims or other costs or liabilities. As disclosed in Item 3, “Legal Proceedings,” we recently
settled a matter relating to certain of our waste disposal policies, procedures and practices in California.
Environmental requirements have become more stringent over time, and pending or proposed new regu-
lations could impact our operations or costs. For example, climate change regulation, such as proposed
greenhouse gas emissions limits or cap and trade programs, could result in an increase in the cost of elec-
tricity, which is a significant component of our operational costs at some locations.
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