Cable Television; Implementation of the Selecommunication Act of 1996

[[Page 15387]]

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 21 and 76

[CS Docket No. 96-56, FCC 96-112]

Cable Television; Implementation of the Selecommunication Act of

1996

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This Order implements sections of the Telecommunications Act

of 1996. The Order eliminates restrictions on the cross ownership of

broadcast networks and cable television systems, allows cross ownership

and operation of multichannel multipoint distribution services or

Satellite Master Antenna Television systems and cable systems when

effective competition exists in the franchise area, and eliminates the

three-year holding period requirement for transfer of cable systems.

EFFECTIVE DATE: April 8, 1996.

FOR FURTHER INFORMATION CONTACT: Paul Glenchur, Cable Services Bureau,

(202) 416-1800.

SUPPLEMENTARY INFORMATION: This is a synopsis of a Commission Order in

CS Docket No. 96-56, FCC 96-112, adopted March 15, 1996 and released

March 18, 1996. The complete text of this document is available for

inspection and copying during normal business hours in the FCC

Reference Center, 1919 M St., N.W., Washington, D.C.

I. Introduction

1. In this Order, we amend certain of the Commission's rules

relating to cable television ownership to conform them to changes in

the Communications Act enacted on February 8, 1996, in the

Telecommunications Act of 1996 (``1996 Act'').

II. Television Broadcast Network--Cable Cross Ownership

2. Section 76.501 of the Commission's rules limits the extent to

which cross ownership is permitted between cable television systems and

television broadcast networks. Under this rule, network-cable cross

ownership is allowed if such combinations do not exceed 10% of homes

passed by cable nationwide, and do not exceed 50% of homes passed by

cable within an area of dominant influence (ADI).

3. Section 202(f) of the 1996 Act provides as follows:

(f) Cable Cross Ownership.--

(1) Elimination of restrictions.--The Commission shall revise

Section 76.501 of its regulations (47 CFR 76.501) to permit a person or

entity to own or control a network of broadcast stations and a cable

system.

4. Accordingly, we are amending Section 76.501 as reflected below

to permit a person or entity to own or control a network of broadcast

stations and a cable system.

III. MMDS/SMATV--Cable Cross Ownership

5. Section 613(a)(2) of the Communications Act, as adopted in the

Cable Television Consumer Protection and Competition Act of 1992

(``1992 Cable Act''), made it unlawful to hold a license for a

multichannel multipoint distribution service, or to offer satellite

master antenna television service separate and apart from a franchised

cable service, in any portion of the franchise area served by the cable

operator's cable system. Rules implementing this restriction were

adopted by the Commission and appear in Sections 21.912 and 76.501 of

the rules. Section 202(i) of the 1996 Act adds the following to the

existing restriction to provide that the Commission shall not apply the

requirements of subsection 613(a): To any cable operator in any

franchise area in which a cable operator is subject to effective

competition as determined under section 623(l).

6. Accordingly, as reflected below, we amend the applicable

Commission rules to conform them to the new statutory language.

IV. Antitrafficking Regulation

7. Section 617 of the Communications Act, as adopted in the 1992

Cable Act, restricted the ability of a cable operator to sell or

otherwise transfer ownership in a cable system within a 36-month period

following either the acquisition or initial construction of the system.

Rules implementing the three-year holding requirement were adopted by

the Commission and appear in Section 76.502 of the rules.

8. Section 301(i) of the 1996 Act eliminates these restrictions.

Limitations on the time a local franchise authority has to consider

applications to sell or transfer systems are retained.

9. Accordingly, as reflected below, we amend the applicable

Commission rules to conform them to the new statutory language.

V. Administrative Matters

10. The rules adopted herein have been analyzed with respect to the

Paperwork Reduction Act of 1995 and found to contain no new or modified

form, information collection and/or record keeping, labeling,

disclosure or record retention requirements. These rules will not

increase or decrease burden hours imposed on the public.

11. Because these rule changes simply conform the Commission's

rules to the statute, we find for good cause that compliance with the

notice and comment provisions of the Administrative Procedure Act is

unnecessary. See 5 U.S.C. Sec. 553(b)(B). For similar reasons, and

because the amendments ease restrictions, compliance with the effective

date provision of the Administrative Procedure Act also is unnecessary.

5 U.S.C. Sec. 553(d).

12. Accordingly, pursuant to sections 4(i), 4(j) and 303(r) of the

Communications Act of 1934, as amended, 47 U.S.C. Secs. 154(i), 154(j),

and 303(r), and Telecommunications Act of 1996, Secs. 202 and 301, it

is ordered that the Commission's Rules are amended as set forth below,

Effective April 8, 1996.

List of Subjects

47 CFR Part 21

Television.

47 CFR Part 76

Cable television.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

Parts 21 and 76 of Title 47 of the Code of Federal Regulations are

amended as follows:

PART 21--DOMESTIC PUBLIC FIXED RADIO SERVICES

1. The authority citation for Part 21 continues to read as follows:

Authority: Secs. 1, 2, 4, 201-205, 208, 215, 218, 303, 307, 313,

403, 404, 410, 602, 48 Stat. as amended, 1064, 1066, 1070-1073,

1076, 1077, 1080, 1082, 1083, 1087, 1094, 1098, 1102; 47 U.S.C. 151,

154, 201-205, 208, 215, 218, 303, 307, 313, 314, 403, 404, 602; 47

U.S.C. 552, 554.

2. Section 21.912 is amended by adding a new paragraph (e)(3) to

read as follows:

Sec. 21.912 Cable television company eligibility requirements.

* * * * *

(e) * * *

(3) The limitations on cable television ownership in this section

do not apply to any cable operator in any franchise area in which a

cable operator is subject to effective competition as determined under

section 623(l) of the Communications Act.

* * * * *

[[Page 15388]]

PART 76--CABLE TELEVISION SERVICE

3. The authority citation for Part 76 continues to read as follows:

Authority: Secs. 2, 3, 4, 301, 303, 307, 308, 309, 48 Stat., as

amended, 1064, 1065, 1066, 1081, 1082, 1083, 1084, 1085, 1101; 47

U.S.C. Sec. 152, 153, 154, 301, 303, 307, 308, 309; Secs. 612, 614-

615, 623, 632 as amended, 106 Stat. 1460, 47 U.S.C. 532; Sec. 623,

as amended, 106 Stat. 1460; 47 U.S.C. 532, 533, 535, 543, 552.

4. Section 76.501 is amended by removing and reserving paragraph

(b) and by revising paragraph (f) to read as follows:

* * * * *

Sec. 76.501 Cross-ownership.

* * * * *

(f) The restrictions in paragraphs (d) and (e) of this section

shall not apply to any cable operator in any franchise area in which a

cable operator is subject to effective competition as determined under

section 623(l) of the Communications Act.

* * * * *

5. Section 76.502 is revised to read as follows:

Sec. 76.502 Time limits applicable to franchise authority

consideration of transfer applications.

(a) A franchise authority shall have 120 days from the date of

submission of a completed FCC Form 394, together with all exhibits, and

any additional information required by the terms of the franchise

agreement or applicable state or local law to act upon an application

to sell, assign, or otherwise transfer controlling ownership of a cable

system.

(b) A franchise authority that questions the accuracy of the

information provided under paragraph (a) must notify the cable operator

within 30 days of the filing of such information, or such information

shall be deemed accepted, unless the cable operator has failed to

provide any additional information reasonably requested by the

franchise authority within 10 days of such request.

(c) If the franchise authority fails to act upon such transfer

request within 120 days, such request shall be deemed granted unless

the franchise authority and the requesting party otherwise agree to an

extension of time.

[FR Doc. 96-8454 Filed 4-5-96; 8:45 am]

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