[Federal Register Volume 85, Number 55 (Friday, March 20, 2020)]
[Rules and Regulations]
[Pages 15999-16006]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05478]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 74 and 76
[MB Docket Nos. 19-165, 17-105; FCC 20-8; FRS 16516]
Electronic Delivery of Notices to Broadcast Television Stations;
Modernization of Media Regulation Initiative
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, the Federal Communications Commission (FCC
or Commission) modernizes its rules regarding certain written notices
that cable operators and direct broadcast satellite (DBS) providers are
required to provide to broadcast television stations. Rather than
continuing to require that cable and DBS providers deliver these
notices on paper, the Commission is revising its rules to require that
the notices be delivered to broadcast television stations
electronically via email.
DATES:
Effective Date: April 20, 2020.
Compliance Date: Compliance will not be required for 47 CFR 74.779,
76.54(e), 76.64(k), 76.66(d)(1)(iv), (d)(2)(ii), (v), and (vi),
(d)(3)(iv), (d)(5)(i), (f)(3) and (4), and (h)(5), 76.1600(e), 76.1607,
76.1608, 76.1609, and 76.1617(a) and (c) until the Commission publishes
a document in the Federal Register announcing the compliance date.
FOR FURTHER INFORMATION CONTACT: Christopher Clark, Industry Analysis
Division, Media Bureau, at [email protected] or (202) 418-2609.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order, FCC 20-8, in MB Docket Nos. 19-165 and 17-105, adopted on
January 30, 2020, and released on January 31, 2020. The complete text
of this document is available electronically via the FCC's Electronic
Document Management System (EDOCS) website at https://www.fcc.gov/document/fcc-modernizes-delivery-mvpd-notices-broadcast-tv-stations-0.
Documents will be available electronically in ASCII, Microsoft Word,
and/or Adobe Acrobat. The complete text of this document is also
available for public inspection and copying during regular business
hours in the FCC Reference Information Center, Federal Communications
Commission, 445 12th Street SW, CY-A257, Washington, DC 20554.
Alternative formats are available for people with disabilities
(Braille, large print, electronic files, audio format) by sending an
email to [email protected] or calling the Commission's Consumer and
Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432
(TTY).
Synopsis
1. We adopt the proposal to require electronic delivery of certain
notices that cable operators are required to provide to broadcast
television stations under our existing rules. To harmonize the rules
applicable to cable operators and direct broadcast satellite (DBS)
providers, we extend the same treatment to the notices that DBS
providers are required to provide to broadcast television stations
under our existing rules. We conclude that it will serve the public
interest and enhance administrative efficiency to harmonize the
notification rules discussed herein for cable operators and DBS
providers with our modernized carriage election notice procedures for
broadcast television stations.
2. As proposed in the notice of proposed rulemaking (NPRM) (84 FR
37979, August 5, 2019), we will require that cable operators use email
to deliver notices to broadcast television stations in the following
circumstances: informing local broadcast stations that a new cable
system intends to commence service (Sec. 76.64(k)); sending required
information to local broadcast stations when a new cable system is
activated (Sec. 76.1617); notifying a television station about the
deletion or repositioning of its signal (Sec. 76.1601); informing
stations of a change in the designation of the principal headend of a
cable operator (Sec. 76.1607); informing stations that a cable
operator intends to integrate two cable systems, requiring a uniform
carriage election (Sec. 76.1608); and notifying stations that a cable
system serves 1,000 or more subscribers and is no longer exempt from
the Commission's network non-duplication and syndicated exclusivity
rules (Sec. 76.1609). To ensure that television stations continue to
receive these important notices, we will require that cable operators
deliver the notices to the email address that the station designates
for carriage-related questions in accordance with the procedures
adopted in the Carriage Election Notice Modernization proceeding. Under
those procedures, commercial and noncommercial full-power and Class A
television stations are already required to provide a current email
address and phone number in their online public inspection file (OPIF)
for carriage-related questions no later than July 31, 2020, and
maintain up-to-date contact information at all times thereafter.
Requiring cable operators to deliver notices to this email address will
help ensure that notices are sent to the correct inbox without imposing
any new obligations on these stations. Because the email address must
be kept up-to-date, cable operators will easily be able to identify the
email address that is current for purposes of sending notices to a
television station. In addition, if questions arise pertaining to the
notices, cable operators will be able to call the station at the phone
number provided.
3. We conclude that transitioning the notices from paper to
electronic delivery will serve the public interest. As discussed above,
the Commission has already taken similar steps with respect to various
other notices and filings required by our rules. In doing so, the
Commission found that the benefits of transitioning the notices from
paper to electronic delivery include reducing the costs, administrative
burdens, and environmental waste associated with paper notices.
Consistent with these previous determinations, we conclude that
requiring notices under Sec. 76.64(k) and subpart T to be delivered to
broadcast television stations via email will reduce burdens on all
parties and ensure that notices are still received in a timely manner,
while reducing environmental waste.
4. Perhaps not surprisingly, we find unanimous support in the
record for transitioning these notices from paper to electronic
delivery. Cable operators and broadcasters commenting in this
proceeding agree that electronic delivery will reduce the time and
money spent on the required notices, enable quicker, more effective
communication of necessary information, and decrease the environmental
waste generated by paper notices. As the National Cable and
Telecommunications Association (NCTA) explains, electronic notices need
not be printed, posted, or tracked to ensure they reach their
destination, making them far less expensive and much less
administratively burdensome than paper notices. Because email
transmission is nearly instantaneous and paper delivery methods often
take up to several days, transitioning from paper notices to email will
also help ensure that broadcasters receive notices
[[Page 16000]]
much faster than they do currently. Further, as America's
Communications Association (ACA) and NCTA attest, allowing the notices
to be delivered via email is consistent with the way companies do
business today. Public television broadcasters similarly support the
use of email for notices to full-power noncommercial television
stations, and the National Association of Broadcasters (NAB) suggests
that email would be acceptable for delivering notices to low-power
television (LPTV) stations. No commenter disputes our authority to
require that cable operators deliver notices via email. And we
conclude, consistent with our previous finding, that emailing
television stations the information required by Sec. 76.64(k) and
subpart T of our rules satisfies the ``written notice'' requirement in
sections 614(b)(9) and 615(g)(3) of the Communications Act of 1934, as
amended, because ``it is reasonable to interpret the term `written
information' . . . to include information delivered by email.''
5. Given the unanimous support in the record for transitioning from
paper to electronic delivery of notices from cable operators to
broadcast television stations, we see no reason to retain paper
delivery as an option for the notices required by Sec. 76.64(k) and
subpart T of our rules. Indeed, no commenter in this proceeding asserts
that we should retain such an option. To the contrary, ACA cautions
that exempting some broadcasters from receiving the notices
electronically would substantially negate the benefits of our decision
today to move to electronic distribution of the notices. We agree with
ACA that requiring cable operators to deliver notices to some broadcast
stations via email and other stations via paper delivery would
introduce unnecessary complexity and additional costs, which could pose
challenges, particularly for small cable operators with limited
resources. Similarly, we believe that allowing some cable operators to
continue using paper delivery to distribute the notices would impose
unnecessary burdens and costs on broadcast television stations. To
streamline delivery of the notices and reduce the associated costs and
burdens for all parties, we adopt email as the required means for
delivering notices to broadcast television stations under Sec.
76.64(k) and subpart T of our rules. Accordingly, we will require that
after July 31, 2020, cable operators must deliver to broadcast
television stations electronically via email the notices required by
the rules listed above.
6. For LPTV stations that are entitled to notices but not required
to maintain an OPIF, we will require that notices be delivered to the
general email address listed for the licensee in our Licensing and
Management System (LMS). Unlike full-power and Class A television
stations, non-Class A LPTV stations are not subject to our OPIF rules
and will therefore need to use alternative means other than the OPIF to
publicize an email address and phone number for receiving notices from
cable operators. We agree with commenters that cable operators should
be able to consult a single Commission website or database to obtain
contact information for delivering notices to non-Class A LPTV
stations, rather than having to attempt to locate this information on
each station's website. While some commenters suggest the Commission
should establish a new means to collect and share such contact
information, we find that the information such stations are already
required to provide in LMS is sufficient for this purpose. When
submitting a broadcast license application in LMS, an applicant is
required to provide contact information, including an email address and
phone number, for itself and any contact representatives listed on the
form. Thus, each LPTV station that has filed a license application in
LMS should already have an email address and phone number listed in
LMS. LPTV stations may add or update this information easily by filing
an Administrative Update for a LPTV/Translator Station Application in
LMS. After submission, this contact information is publicly available
in LMS via the Facility Details page, which may be accessed by doing a
Facility Search and then clicking the relevant Facility ID Number in
the Facility Search results.
7. We conclude that notices to non-Class A LPTV stations should be
delivered to the licensee's email address, rather than a contact
representative's email address (if different from the licensee's email
address), to ensure that all such notices are delivered consistently to
the same inbox in cases where a station designates a third party as a
contact representative or designates multiple types of contact
representatives. Accordingly, we will require that after July 31, 2020,
Sec. 76.64(k) and subpart T notices to LPTV stations that are entitled
to such notices but that lack Class A status must be delivered to the
email address listed for the licensee (not a contact representative, if
different from the licensee) in LMS. Delivering notices to the email
address listed for the contact representative is not sufficient to
satisfy the notice requirements in Sec. 76.64(k) and subpart T. After
July 31, 2020, non-Class A LPTV stations must be prepared to respond to
carriage questions directed to the licensee's email address and phone
number (not a contact representative's email address and phone number,
if different) as displayed publicly in LMS and must ensure that this
information is kept up-to-date in LMS. We conclude that relying on this
existing information in LMS will ensure that cable operators are able
to identify contact information easily for notices to non-Class A LPTV
stations without imposing additional burdens on stations or the
Commission. LPTV stations are responsible for the accuracy of this
contact information, and cable operators may rely on its accuracy at
any time after July 31, 2020, for purposes of delivering the notices
required by Sec. 76.64(k) and subpart T of the Commission's rules.
8. Similarly, with respect to qualified noncommercial educational
(NCE) translator stations, we agree with the public broadcasting
organizations that there is no need to adopt a new email posting
requirement for such stations. Rather, we will require that after July
31, 2020, Sec. 76.64(k) and subpart T notices to a qualified NCE
translator station must be delivered to the email address listed for
the licensee (not a contact representative, if different from the
licensee) in LMS, or alternatively to the primary station's carriage-
related email address, if the translator station does not have its own
email address listed in LMS. Like LPTV and other broadcast stations,
qualified NCE translator stations are already required to provide
general contact information, including an email address and phone
number, when filing license applications in LMS. While it is possible
that some qualified NCE translator stations have yet to submit a filing
in LMS, we expect that by the end of the next cycle for television
license renewal applications in 2023, all such stations will have
submitted an application requiring them to provide an email address and
phone number in LMS. We conclude that delivering relevant notices to
the primary station's carriage-related email address is sufficient for
providing electronic notices to qualified NCE translator stations that
have no email address listed in LMS. Unlike an LPTV station, a
qualified NCE translator station is associated with the primary station
that authorizes the retransmission of its signal by the translator
station. To the extent a qualified NCE translator station and its
primary station are not owned by
[[Page 16001]]
the same party, we expect that the owner of the primary station will
inform the translator station promptly upon receiving relevant notices.
Because the Commission's rules prohibit a TV translator station from
rebroadcasting the programs of a TV broadcast station without obtaining
the TV broadcast station's prior consent, we anticipate that there will
be an existing relationship between a qualified NCE translator station
and its primary station even where the stations are not owned by the
same party. Moreover, we believe that the primary station will have
every incentive to inform its affiliated translator station of relevant
notices quickly in order to maintain or expand the reach of its
programming.
9. To effectuate these changes, we add to Sec. 76.1600 of our
rules a new subsection requiring that notices provided by cable
operators to broadcast television stations under Sec. 76.64(k) and
subpart T must be delivered via email as discussed herein. To avoid
potential discrepancies with Sec. 76.1600 as revised herein, we also
add language to Sec. Sec. 76.64(k), 76.1607, 76.1608, 76.1609, and
76.1617 to reflect our decision to require that cable operators deliver
the notices required by these rules electronically to broadcast
television stations via email in accordance with revised Sec. 76.1600.
In addition, we codify the requirements discussed above for LPTV and
qualified NCE translator stations. Further, as proposed in the NPRM, we
make a minor correction to our rules in part 74 by moving our existing
channel sharing rule for LPTV and TV translator stations from subpart H
(Low Power Auxiliary Stations) to subpart G (Low Power TV, TV
Translator, and TV Booster Stations). Because the rules in subpart G
apply to LPTV stations, TV translator stations, and TV booster
stations, subpart G is a more appropriate location for Sec. 74.799
than subpart H, which contains rules for low power auxiliary stations
that transmit over distances of approximately 100 meters for uses such
as wireless microphones, cue and control communications, and
synchronization of TV camera signals.
10. We adopt the same approach outlined above for the notices that
DBS providers currently are required to provide to broadcast television
stations pursuant to the following rules: Sec. Sec. 76.54(e) and
76.66(d)(5) (intent to retransmit ``significantly viewed'' out-of-
market station); 76.66(d)(2) (intent to launch new local-into-local or
HD carry-one, carry-all service); 76.66(d)(1)(vi) and (d)(3)(iv)
(response to carriage requests); 76.66(f)(3) and (4) (location of local
receive facility or intent to relocate such facility); and 76.66(h)(5)
(deletion of duplicating signal or addition of formerly duplicating
signal). DISH and DIRECTV support the NPRM's proposal to require that
DBS providers deliver these notices electronically via email, and no
commenter opposes such a requirement.
11. No commenter disputes our authority to adopt rules requiring
that DBS operators deliver these notices via email. We believe it will
serve the public interest and enhance administrative efficiency to have
a consistent approach for delivery of notices discussed herein. We
agree with DISH and DIRECTV that, given our previous decision to
require electronic delivery of carriage election notices, failure to
allow email delivery of the notices required by Sec. Sec. 76.54(e) and
76.66 will result in disproportionate burdens on DBS providers and
broadcasters, and raise logistical and operational challenges.
Accordingly, we require that after July 31, 2020, DBS providers must
deliver to broadcast television stations electronically via email the
notices required by the rules listed above. Such notices must be
delivered to the same email address the station designates for
carriage-related questions, as discussed above for the notices from
cable operators. We revise our rules accordingly.
12. Paperwork Reduction Act Analysis. This document contains new or
modified information collection requirements subject to the Paperwork
Reduction Act of 1995 (PRA), Public Law 104-13. The requirements will
be submitted to the Office of Management and Budget (OMB) for review
under section 3507(d) of the PRA. OMB, the general public, and other
Federal agencies are invited to comment on the new or modified
information collection requirements contained in this proceeding. In
addition, we note that pursuant to the Small Business Paperwork Relief
Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4), we
previously sought specific comment on how the Commission might further
reduce the information collection burden for small business concerns
with fewer than 25 employees.
13. Congressional Review Act. The Commission has determined, and
the Administrator of the Office of Information and Regulatory Affairs,
Office of Management and Budget, concurs that this rule is ``non-
major'' under the Congressional Review Act, 5 U.S.C. 804(2). The
Commission will send a copy of this Report and Order to Congress and
the Government Accountability Office pursuant to 5 U.S.C. 801(a)(1)(A).
Final Regulatory Flexibility Analysis
14. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was
incorporated in the notice of proposed rulemaking (NPRM) in MB Docket
No. 19-165. The Commission sought written public comments on proposals
in the NPRM, including comment on the IRFA. The Commission received no
direct comments on the IRFA. The present Final Regulatory Flexibility
Analysis (FRFA) conforms to the RFA.
15. Need for, and Objectives of, the Report and Order. In the
Report and Order, the Commission takes additional steps to modernize
certain notice provisions in part 76 of the Commission's rules
governing multichannel video and cable television service. Currently,
these rules require that cable operators and other multichannel video
programming distributors (MVPDs) provide certain written notices to
broadcast stations by paper delivery, such as mail, certified mail, or,
in some instances, hand delivery. Section 76.64(k) and subpart T of the
Commission's rules contain written notification requirements for cable
operators, and Sec. Sec. 76.54(e) and 76.66 of the Commission's rules
contain written notification requirements for direct broadcast
satellite (DBS) providers. The rules require written notice to a local
broadcast television station prior to deleting or repositioning the
station, changing the location of the principal headend or local
receive facility, or commencing service in a market, among other
things.
16. The Report and Order revises the Commission's rules to require
that cable operators deliver notices electronically to broadcast
television stations in the following circumstances: Informing local
broadcast stations that a new cable system intends to commence service
(Sec. 76.64(k)); sending required information to local broadcast
stations when a new cable system is activated (Sec. 76.1617);
notifying a television station about the deletion or repositioning of
its signal (Sec. 76.1601); informing stations of a change in the
designation of the principal headend of a cable operator (Sec.
76.1607); informing stations that a cable operator intends to integrate
two cable systems, requiring a uniform carriage election (Sec.
76.1608); and notifying stations that a cable system serves 1,000 or
more subscribers and is no longer exempt from the Commission's network
non-duplication and syndicated exclusivity rules (Sec. 76.1609). After
July 31, 2020, cable operators must deliver required notices
[[Page 16002]]
to full-power and Class A television stations electronically via email
to the inbox that the station designates for carriage-related questions
in its online public inspection file (OPIF). Similarly, notices to LPTV
stations must be delivered to the email address listed for the licensee
(not a contact representative, if different from the licensee) in the
Commission's Licensing and Management System (LMS), and notices to
qualified noncommercial educational (NCE) translator stations must be
delivered to the email address listed for the licensee in LMS (not a
contact representative, if different from the licensee) or
alternatively the primary station's carriage-related email address, if
the translator station does not have its own email address listed in
LMS.
17. The Report and Order also requires that DBS providers similarly
use email to deliver to broadcast television stations the notices
required by the following rules: Sec. Sec. 76.54(e) and 76.66(d)(5)
(intent to retransmit ``significantly viewed'' out-of-market station);
76.66(d)(2) (intent to launch new local-into-local or HD carry-one,
carry-all service); 76.66(d)(1)(vi) and (d)(3)(iv) (response to
carriage requests); 76.66(f)(3) and (4) (location of local receive
facility or intent to relocate such facility); and 76.66(h)(5)
(deletion of duplicating signal or addition of formerly duplicating
signal). Through this Report and Order, the Commission continues its
efforts to update its rules and eliminate outdated requirements.
18. Summary of Significant Issues Raised by Public Comments in
Response to the IRFA. No comments were filed in direct response to the
IRFA.
19. Response to Comments by the Chief Counsel for Advocacy of the
Small Business Administration. Pursuant to the Small Business Jobs Act
of 2010, which amended the RFA, the Commission is required to respond
to any comments filed by the Chief Counsel for Advocacy of the SBA and
to provide a detailed statement of any change made to the proposed
rules as a result of those comments. The Chief Counsel did not file any
comments in response to this proceeding.
20. Description and Estimate of the Number of Small Entities To
Which Rules Will Apply. The RFA directs agencies to provide a
description of, and where feasible, an estimate of the number of small
entities that may be affected by the proposed rules, if adopted. The
RFA generally defines the term ``small entity'' as having the same
meaning as the terms ``small business,'' ``small organization,'' and
``small governmental jurisdiction.'' In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act. A small business concern is one which:
(1) Is independently owned and operated; (2) is not dominant in its
field of operation; and (3) satisfies any additional criteria
established by the SBA. Below, we provide a description of such small
entities, as well as an estimate of the number of such small entities,
where feasible.
21. Cable Companies and Systems (Rate Regulation Standard). The
Commission has also developed its own small business size standards,
for the purpose of cable rate regulation. Under the Commission's rules,
a ``small cable company'' is one serving 400,000 or fewer subscribers
nationwide. The Commission determined that this size standard equates
approximately to a size standard of $100 million or less in annual
revenues. In addition, under the Commission's rules, a ``small system''
is a cable system serving 15,000 or fewer subscribers. Industry data
indicate that there are currently 4,300 active cable systems in the
United States. Of this total, 3,550 cable systems have fewer than
15,000 subscribers, and 750 systems have 15,000 or more. Thus, we
estimate that most cable systems are small entities.
22. Cable System Operators (Telecommunications Act Standard). The
Act also contains a size standard for a small cable system operator,
which is ``a cable operator that, directly or through an affiliate,
serves in the aggregate fewer than 1 percent of all subscribers in the
United States and is not affiliated with any entity or entities whose
gross annual revenues in the aggregate exceed $250,000,000.'' There are
approximately 49,011,210 cable video subscribers in the United States
today. Accordingly, an operator serving fewer than 490,112 subscribers
shall be deemed a small operator if its annual revenues, when combined
with the total annual revenues of all its affiliates, do not exceed
$250 million in the aggregate. Based on available data, we find that
all but five incumbent cable operators are small entities under this
size standard. We note that the Commission neither requests nor
collects information on whether cable system operators are affiliated
with entities whose gross annual revenues exceed $250 million. Although
it seems certain that some of these cable system operators are
affiliated with entities whose gross annual revenues exceed $250
million, we are unable at this time to estimate with greater precision
the number of cable system operators that would qualify as small cable
operators under the definition in the Communications Act.
23. We also note that there currently are 182 cable antenna relay
service (CARS) licensees. The Commission, however, neither requests nor
collects information on whether CARS licensees are affiliated with
entities whose gross annual revenues exceed $250 million. Although some
CARS licensees may be affiliated with entities whose gross annual
revenues exceed $250 million, we are unable at this time to estimate
with greater precision the number of CARS licensees that would qualify
as small cable operators under the definition in the Communications
Act.
24. Direct Broadcast Satellite (DBS) Service. DBS service is a
nationally distributed subscription service that delivers video and
audio programming via satellite to a small parabolic dish antenna at
the subscriber's location. DBS is now included in SBA's economic census
category ``Wired Telecommunications Carriers.'' The Wired
Telecommunications Carriers industry comprises establishments primarily
engaged in operating and/or providing access to transmission facilities
and infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired telecommunications
networks. Transmission facilities may be based on a single technology
or combination of technologies. Establishments in this industry use the
wired telecommunications network facilities that they operate to
provide a variety of services, such as wired telephony services,
including VoIP services, wired (cable) audio and video programming
distribution; and wired broadband internet services. By exception,
establishments providing satellite television distribution services
using facilities and infrastructure that they operate are included in
this industry. The SBA determines that a wireline business is small if
it has fewer than 1,500 employees. Economic census data for 2012
indicate that 3,117 wireline companies were operational during that
year. Of that number, 3,083 operated with fewer than 1,000 employees.
Based on that data, we conclude that the majority of wireline firms are
small under the applicable standard. Currently, however, only two
entities provide DBS service, which requires a great deal of capital
for operation: DIRECTV (owned by AT&T) and DISH Network. DIRECTV and
DISH Network each report annual revenues that are in excess of the
threshold for a small business. Accordingly, we conclude that, in
general, DBS service is provided only by large firms.
[[Page 16003]]
25. Open Video Services. Open Video Service (OVS) systems provide
subscription services. The open video system framework was established
in 1996, and is one of four statutorily recognized options for the
provision of video programming services by local exchange carriers. The
OVS framework provides opportunities for the distribution of video
programming other than through cable systems. Because OVS operators
provide subscription services, OVS falls within the SBA small business
size standard covering cable services, which is ``Wired
Telecommunications Carriers.'' The SBA has developed a small business
size standard for this category, which is: All such firms having 1,500
or fewer employees. To gauge small business prevalence for the OVS
service, the Commission relies on data currently available from the
U.S. Census for the year 2012. According to that source, there were
3,117 firms that in 2012 were Wired Telecommunications Carriers. Of
these, 3,059 operated with less than 1,000 employees. Based on this
data, the majority of these firms can be considered small. In addition,
we note that the Commission has certified some OVS operators, with some
now providing service. Broadband service providers (BSPs) are currently
the only significant holders of OVS certifications or local OVS
franchises. The Commission does not have financial or employment
information regarding the entities authorized to provide OVS, some of
which may not yet be operational. Thus, at least some of the OVS
operators may qualify as small entities. The Commission further notes
that it has certified approximately 45 OVS operators to serve 116
areas, and some of these are currently providing service. Affiliates of
Residential Communications Network, Inc. (RCN) received approval to
operate OVS systems in New York City, Boston, Washington, DC, and other
areas. RCN has sufficient revenues to assure that they do not qualify
as a small business entity. Little financial information is available
for the other entities that are authorized to provide OVS and are not
yet operational. Given that some entities authorized to provide OVS
service have not yet begun to generate revenues, the Commission
concludes that up to 44 OVS operators (those remaining) might qualify
as small businesses that may be affected by the rules and policies
adopted herein.
26. Satellite Master Antenna Television (SMATV) Systems, also known
as Private Cable Operators (PCOs). SMATV systems or PCOs are video
distribution facilities that use closed transmission paths without
using any public right-of-way. They acquire video programming and
distribute it via terrestrial wiring in urban and suburban multiple
dwelling units such as apartments and condominiums, and commercial
multiple tenant units such as hotels and office buildings. SMATV
systems or PCOs are now included in the SBA's broad economic census
category, ``Wired Telecommunications Carriers,'' which was developed
for small wireline firms. Under this category, the SBA deems a wireline
business to be small if it has 1,500 or fewer employees. Census data
for 2012 indicate that in that year there were 3,117 firms operating
businesses as wired telecommunications carriers. Of that 3,117, 3,059
operated with 999 or fewer employees. Based on this data, we estimate
that a majority of operators of SMATV/PCO companies were small under
the applicable SBA size standard.
27. Television Broadcasting. This Economic Census category
``comprises establishments primarily engaged in broadcasting images
together with sound.'' These establishments operate television
broadcast studios and facilities for the programming and transmission
of programs to the public. These establishments also produce or
transmit visual programming to affiliated broadcast television
stations, which in turn broadcast the programs to the public on a
predetermined schedule. Programming may originate in their own studio,
from an affiliated network, or from external sources. The SBA has
created the following small business size standard for such businesses:
Those having $41.5 million or less in annual receipts. The 2012
Economic Census reports that 751 firms in this category operated in
that year. Of this number, 656 had annual receipts of less than $25
million, 25 had annual receipts ranging from $25 million to
$49,999,999, and 70 had annual receipts of $50 million or more. Based
on this data we therefore estimate that the majority of commercial
television broadcasters are small entities under the applicable SBA
size standard.
28. Additionally, the Commission has estimated the number of
licensed commercial television stations to be 1,380. Of this total,
1,267 stations (or 91.8%) had revenues of $41.5 million or less in
2018, according to Commission staff review of the BIA Kelsey Inc. Media
Access Pro Television Database (BIA) on December 9, 2019, and therefore
these licensees qualify as small entities under the SBA definition. In
addition, the Commission estimates the number of licensed noncommercial
educational (NCE) television stations to be 380. The Commission does
not compile and does not have access to information on the revenue of
NCE stations that would permit it to determine how many such stations
would qualify as small entities.
29. We note, however, that in assessing whether a business concern
qualifies as ``small'' under the above definition, business (control)
affiliations must be included. Our estimate, therefore, likely
overstates the number of small entities that might be affected by our
action, because the revenue figure on which it is based does not
include or aggregate revenues from affiliated companies. In addition,
another element of the definition of ``small business'' requires that
an entity not be dominant in its field of operation. We are unable at
this time to define or quantify the criteria that would establish
whether a specific television broadcast station is dominant in its
field of operation. Accordingly, the estimate of small businesses to
which rules may apply does not exclude any television station from the
definition of a small business on this basis and is therefore possibly
over-inclusive.
30. There are also 387 Class A stations. Given the nature of these
services, the Commission presumes that all of these stations qualify as
small entities under the applicable SBA size standard. In addition,
there are 1,900 LPTV stations and 3,631 TV translator stations. Given
the nature of these services as secondary and in some cases purely a
``fill-in'' service, we will presume that all of these entities qualify
as small entities under the above SBA small business size standard.
31. Description of Reporting, Recordkeeping, and Other Compliance
Requirements for Small Entities. As discussed above, this Report and
Order takes additional steps to update certain notice provisions in
part 76 of the Commission's rules governing multichannel video and
cable television service. The existing rules require that cable
operators and other MVPDs provide certain written notices to broadcast
stations by paper delivery, such as mail, certified mail, or, in some
instances, hand delivery. The Report and Order revises the Commission's
rules to require that cable operators and DBS providers distribute
these notices to broadcast television stations electronically via
email. After July 31, 2020, cable operators and DBS providers must
deliver required notices to full-power and Class A television stations
electronically via email to the inbox that the station designates for
carriage-related questions in its OPIF. Similarly, notices to LPTV
stations must be
[[Page 16004]]
delivered to the email address listed for the licensee (not a contact
representative, if different from the licensee) in LMS, and notices to
qualified NCE translator stations must be delivered to the email
address listed for the licensee (not a contact representative, if
different from the licensee) in LMS or alternatively the primary
station's carriage-related email address, if the translator station
does not have its own email address listed in LMS.
32. Steps Taken To Minimize Significant Economic Impact on Small
Entities and Significant Alternatives Considered. The RFA requires an
agency to describe any significant alternatives that it has considered
in reaching its proposed approach, which may include the following four
alternatives (among others): (1) The establishment of differing
compliance or reporting requirements or timetables that take into
account the resources available to small entities; (2) the
clarification, consolidation, or simplification of compliance and
reporting requirements under the rule for such small entities; (3) the
use of performance, rather than design standards; and (4) an exemption
from coverage of the rule, or any part thereof, for small entities.
33. Through this Report and Order, the Commission takes steps to
minimize the administrative burden on MVPDs, including small entities,
by transitioning from paper to electronic delivery of certain notices
to broadcast television stations, which will reduce the costs and
burdens of providing such notices. The Commission has found that
electronic delivery of notices would greatly ease the burden of
complying with notification requirements for cable operators and DBS
providers, including small entities. The Commission previously sought
comment on other potential alternative means of delivering notices that
might better serve the needs of broadcasters and MVPDs, including small
entities, but still be less burdensome than sending notices by paper
delivery, such as mail, certified mail, or, in some instances, hand
delivery. Commenters, including those representing smaller entities,
unanimously support transitioning the notices from paper to electronic
delivery.
Ordering Clauses
34. Accordingly, it is ordered that, pursuant to the authority
found in sections 1, 4(i), 4(j), 303(r), 338, 340, 614, 615, and 653 of
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i),
154(j), 303(r), 338, 340, 534, 535, and 573, this Report and Order is
adopted.
35. It is further ordered that, pursuant to the authority found in
sections 1, 4(i), 4(j), 303(r), 338, 340, 614, 615, and 653 of the
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j),
303(r), 338, 340, 534, 535, and 573, the Commission's rules are amended
as set forth in the Final Rules. These rules contain new or modified
information collection requirements that require approval by the Office
of Management and Budget (OMB) under the Paperwork Reduction Act and
will become effective April 20, 2020. Compliance will not be required
until after the Commission publishes a document in the Federal Register
announcing OMB approval and the relevant compliance date.
36. It is further ordered that the Commission shall send a copy of
this Report and Order in a report to be sent to Congress and the
Government Accountability Office pursuant to the Congressional Review
Act, see 5 U.S.C. 801(a)(1)(A).
37. It is further ordered that, should no petitions for
reconsideration or petitions for judicial review be timely filed, MB
Docket No. 19-165 shall be terminated and its docket closed.
List of Subjects
47 CFR Part 74
Communications equipment, Education, radio, Reporting and
recordkeeping requirements, Research, Television.
47 CFR Part 76
Administrative practice and procedure, Cable television,
Communications, Equal employment opportunity, Internet, Political
candidates, Reporting and recordkeeping requirements,
Telecommunications.
Federal Communications Commission.
Marlene Dortch,
Secretary.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR parts 74 and 76 as follows:
PART 74--EXPERIMENTAL RADIO, AUXILIARY, SPECIAL BROADCAST AND OTHER
PROGRAM DISTRIBUTIONAL SERVICES
0
1. The authority for part 74 continues to read as follows:
Authority: 47 U.S.C. 154, 302a, 303, 307, 309, 310, 336 and 554.
0
2. Add Sec. 74.779 to read as follows:
Sec. 74.779 Electronic delivery of notices to LPTV stations.
In accordance with Sec. 76.1600 of this title, beginning July 31,
2020, each licensee of a low power television station or noncommercial
educational translator station that is entitled to notices under Sec.
76.64(k), Sec. 76.1601, Sec. 76.1607, or Sec. 76.1617 of this title
shall receive such notices via email to the licensee's email address
(not a contact representative's email address, if different from the
licensee's email address) as displayed publicly in the Commission's
Licensing and Management System (LMS), or the primary station's
carriage-related email address if the noncommercial educational
translator station does not have its own email address listed in LMS.
Licensees are responsible for the continuing accuracy and completeness
of this information.
Sec. 74.799 [Transferred from Subpart H to Subpart G]
0
3. Transfer Sec. 74.799 from subpart H to subpart G.
PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE
0
4. The authority for part 76 continues to read as follows:
Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 302a, 303,
303a, 307, 308, 309, 312, 315, 317, 325, 338, 339, 340, 341, 503,
521, 522, 531, 532, 534, 535, 536, 537, 543, 544, 544a, 545, 548,
549, 552, 554, 556, 558, 560, 561, 571, 572, 573.
0
5. Amend Sec. 76.54 by revising paragraph (e) to read as follows:
Sec. 76.54 Significantly viewed signals; method to be followed for
special showings.
* * * * *
(e) Satellite carriers that intend to retransmit the signal of a
significantly viewed television broadcast station to a subscriber
located outside such station's local market, as defined by Sec.
76.55(e), must provide written notice to all television broadcast
stations that are assigned to the same local market as the intended
subscriber at least 60 days before commencing retransmission of the
significantly viewed station. Such satellite carriers must also provide
the notifications described in Sec. 76.66(d)(5)(i). Except as provided
in this paragraph (e), such written notice must be sent via certified
mail, return receipt requested, to the address for such station(s) as
listed in the consolidated database maintained by the Federal
Communications Commission. After July 31, 2020, such written notice
must be delivered to
[[Page 16005]]
stations electronically in accordance with Sec. 76.66(d)(2)(ii).
* * * * *
0
6. Amend Sec. 76.64 by revising paragraph (k) to read as follows:
Sec. 76.64 Retransmission consent.
* * * * *
(k) A cable system commencing new operation is required to notify
all local commercial and noncommercial broadcast stations of its intent
to commence service. The cable operator must send such notification, by
certified mail except as provided in this paragraph (k), at least 60
days prior to commencing cable service. After July 31, 2020, the cable
operator must send such notification by electronic delivery in
accordance with Sec. 76.1600. Commercial broadcast stations must
notify the cable system within 30 days of the receipt of such notice of
their election for either must-carry or retransmission consent with
respect to such new cable system. If the commercial broadcast station
elects must-carry, it must also indicate its channel position in its
election statement to the cable system. Such election shall remain
valid for the remainder of any three-year election interval, as
established in paragraph (f)(2) of this section. Noncommercial
educational broadcast stations should notify the cable operator of
their request for carriage and their channel position. The new cable
system must notify each station if its signal quality does not meet the
standards for carriage and if any copyright liability would be incurred
for the carriage of such signal. Pursuant to Sec. 76.57(e), a
commercial broadcast station which fails to respond to such a notice
shall be deemed to be a must-carry station for the remainder of the
current three-year election period.
* * * * *
0
7. Amend Sec. 76.66 by revising paragraphs (d)(1)(vi) introductory
text and (d)(2)(ii), (v), and (vi), (d)(3)(iv), (d)(5)(i) introductory
text, (f)(3) and (4), and (h)(5) to read as follows:
Sec. 76.66 Satellite broadcast signal carriage.
* * * * *
(d) * * *
(1) * * *
(vi) Within 30 days of receiving a television station's carriage
request, and subject to paragraph (d)(2)(ii) of this section, a
satellite carrier shall notify in writing:
* * * * *
(2) * * *
(ii) Except as provided in this paragraph (d)(2)(ii), satellite
carriers shall transmit the notices required by paragraph (d)(2)(i) of
this section via certified mail to the address for such television
station licensee listed in the consolidated database system maintained
by the Commission. After July 31, 2020, the written notices required by
paragraphs (d)(1)(vi), (d)(2)(i), (v), and (vi), (d)(3)(iv), (d)(5)(i),
(f)(3) and (4), and (h)(5) of this section shall be delivered
electronically via email to the email address for carriage-related
questions that the station lists in its public file in accordance with
Sec. Sec. 73.3526 and 73.3527 of this title.
* * * * *
(v) Within 30 days of receiving a local television station's
election of mandatory carriage in a new television market, a satellite
carrier shall notify in writing those local television stations it will
not carry, along with the reasons for such decision, and those local
television stations it intends to carry. After July 31, 2020, the
written notices required by this paragraph (d)(2)(v) shall be delivered
to stations electronically in accordance with paragraph (d)(2)(ii) of
this section.
(vi) Satellite carriers shall notify all local stations in a market
of their intent to launch HD carry-one, carry-all in that market at
least 60 days before commencing such carriage. After July 31, 2020, the
written notices required by this paragraph (d)(2)(vi) shall be
delivered to stations electronically in accordance with paragraph
(d)(2)(ii) of this section.
* * * * *
(3) * * *
(iv) Within 30 days of receiving a new television station's
election of mandatory carriage, a satellite carrier shall notify the
station in writing that it will not carry the station, along with the
reasons for such decision, or that it intends to carry the station.
After July 31, 2020, the written notices required by this paragraph
(d)(3)(iv) shall be delivered to stations electronically in accordance
with paragraph (d)(2)(ii) of this section.
(5) * * *
(i) Beginning with the election cycle described in paragraph (c)(2)
of this section, the retransmission of significantly viewed signals
pursuant to Sec. 76.54 by a satellite carrier that provides local-
into-local service is subject to providing the notifications to
stations in the market pursuant to paragraphs (d)(5)(i)(A) and (B) of
this section, unless the satellite carrier was retransmitting such
signals as of the date these notifications were due. After July 31,
2020, the written notices required by this paragraph (d)(5)(i) shall be
delivered to stations electronically in accordance with paragraph
(d)(2)(ii) of this section.
* * * * *
(f) * * *
(3) Except as provided in paragraph (d)(2) of this section, a
satellite carrier providing local-into-local service must notify local
television stations of the location of the receive facility by June 1,
2001 for the first election cycle and at least 120 days prior to the
commencement of all election cycles thereafter. After July 31, 2020,
the written notices required by this paragraph (f)(3) shall be
delivered to stations electronically in accordance with paragraph
(d)(2)(ii) of this section.
(4) A satellite carrier may relocate its local receive facility at
the commencement of each election cycle. A satellite carrier is also
permitted to relocate its local receive facility during the course of
an election cycle, if it bears the signal delivery costs of the
television stations affected by such a move. A satellite carrier
relocating its local receive facility must provide 60 days notice to
all local television stations carried in the affected television
market. After July 31, 2020, the written notices required by this
paragraph (f)(4) shall be delivered to stations electronically in
accordance with paragraph (d)(2)(ii) of this section.
* * * * *
(h) * * *
(5) A satellite carrier shall provide notice to its subscribers,
and to the affected television station, whenever it adds or deletes a
station's signal in a particular local market pursuant to this
paragraph (h)(5). After July 31, 2020, the required notice to the
affected television station shall be delivered to the station
electronically in accordance with paragraph (d)(2)(ii) of this section.
* * * * *
0
8. Amend Sec. 76.1600 by adding paragraph (e) to read as follows:
Sec. 76.1600 Electronic delivery of notices.
* * * * *
(e) After July 31, 2020, written information provided by cable
operators to broadcast stations pursuant to Sec. Sec. 76.64(k),
76.1601, 76.1607, 76.1608, 76.1609, and 76.1617 must be delivered
electronically to full-power and Class A television stations via email
to the email address for carriage-related questions that the station
lists in its public file in accordance with Sec. Sec. 73.3526 and
73.3527 of this title, or in the case of low power television stations
and noncommercial educational translator stations that are entitled to
such notices, to the licensee's email address (not a contact
representative's email address, if
[[Page 16006]]
different from the licensee's email address) as displayed publicly in
the Licensing and Management System (LMS) or the primary station's
carriage-related email address if the noncommercial educational
translator station does not have its own email address listed in LMS.
0
9. Revise Sec. 76.1607 to read as follows:
Sec. 76.1607 Principal headend.
A cable operator shall provide written notice to all stations
carried on its system pursuant to the must-carry rules in this subpart
at least 60 days prior to any change in the designation of its
principal headend. Such written notice shall be provided by certified
mail, except that after July 31, 2020, notice shall be provided to
stations by electronic delivery in accordance with Sec. 76.1600.
0
10. Revise Sec. 76.1608 to read as follows:
Sec. 76.1608 System technical integration requiring uniform election
of must-carry or retransmission consent status.
A cable system that changes its technical configuration in such a
way as to integrate two formerly separate cable systems must give 90
days notice of its intention to do so to any television broadcast
stations that have elected must-carry status with respect to one system
and retransmission consent status with respect to the other. After July
31, 2020, such notice shall be delivered to stations electronically in
accordance with Sec. 76.1600. If the system and the station do not
agree on a uniform election 45 days prior to integration, the cable
system may require the station to make such a uniform election 30 days
prior to integration.
0
11. Revise Sec. 76.1609 to read as follows:
Sec. 76.1609 Non-duplication and syndicated exclusivity.
Within 60 days following the provision of service to 1,000
subscribers, the operator of each such system shall file a notice to
that effect with the Commission, and serve a copy of that notice on
every television station that would be entitled to exercise network
non-duplication protection or syndicated exclusivity protection against
it. After July 31, 2020, in lieu of serving paper copies on stations,
the operator shall provide the required copies to stations by
electronic delivery in accordance with Sec. 76.1600.
0
12. Amend Sec. 76.1617 by revising paragraphs (a) and (c) to read as
follows:
Sec. 76.1617 Initial must-carry notice.
(a) Within 60 days of activation of a cable system, a cable
operator must notify all qualified NCE stations of its designated
principal headend by certified mail, except that after July 31, 2020,
notice shall be provided by electronic delivery in accordance with
Sec. 76.1600.
* * * * *
(c) Within 60 days of activation of a cable system, a cable
operator must send a copy of a list of all broadcast television
stations carried by its system and their channel positions to all local
commercial and noncommercial television stations, including those not
designated as must-carry stations and those not carried on the system.
Such written information shall be provided by certified mail, except
that after July 31, 2020, such information shall be provided by
electronic delivery in accordance with Sec. 76.1600.
[FR Doc. 2020-05478 Filed 3-19-20; 8:45 am]
BILLING CODE 6712-01-P