Commercial Availability of Navigation Devices

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 76

[CS Docket No. 97-80; FCC 97-53]

Commercial Availability of Navigation Devices

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Communications Commission seeks comments on

proposals to implement Section 629 of the Communications Act of 1934,

as amended, 47 U.S.C. 549, concerning the commercial availability of

navigation devices. This notice is prompted by Section 304 of the 1996

Telecommunications Act, which became law on February 5, 1996, adding

this provision to the Communications Act. This action is intended to

implement the 1996 Act.

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DATES: Comments are due on or before May 16, 1997 and reply comments

are due on or before June 16, 1997.

ADDRESSES: Federal Communications Commission, 1919 M Street, NW.,

Washington, DC 20554.

FOR FURTHER INFORMATION, CONTACT: Technical Information: Michael Lance,

Cable Services Bureau, (202) 418-7014. Legal Information: Barrett L.

Brick, Cable Services Bureau, (202) 418-1065.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's

Notice of Proposed Rulemaking, CS Docket No. 97-80, adopted February

11, 1997 and released on February 20, 1997. The full text of this

decision is available for inspection and copying during normal business

hours in the FCC Reference Center (Room 239), 1919 M Street, NW.,

Washington, DC 20554, and may be purchased from the Commission's copy

contractor, International Transcription Service, (202) 857-3800, 1919 M

Street, NW., Washington, DC 20554.

Synopsis of the Notice of Proposed Rule Making

1. In this notice of proposed rulemaking, the Commission seeks

comment on proposals to implement Section 629 of the Communications

Act, added as part of the Telecommunications Act of 1996, Public Law

104-104, 110 Stat. 56 (1996) (1996 Act). Section 629 instructs the

Commission to promote the commercial availability to consumers of

navigation devices: That is, equipment used to access multichannel

video programming and other services offered over multichannel video

programming systems. The Commission is also instructed not to

jeopardize the security of services offered over multichannel video

programming systems.

2. The Commission first seeks comment regarding the scope and

meaning of Section 629. The Commission tentatively concludes that the

coverage of Section 629 is broad in terms of the multichannel video

programming distributors (MVPDs) involved, including cable television,

multichannel broadcast television, DBS, MMDS, and SMATVs. The

Commission also tentatively concludes that Section 629 is broad in

terms of the type of equipment covered, including not just equipment

used to receive video programming, but also equipment used to access

other services offered by MVPDs over their systems. The Commission

seeks comments on these conclusions, and also on methods to narrow the

focus of the rulemaking process and rules adopted in order best to

accomplish the statutory objectives.

3. The Commission seeks comment on the meaning of commercial

availability in the context of Section 629. The Commission proposes to

incorporate a consumer right to attach equipment into the rules,

modeled after the telephony right to attach which had its genesis in

Carterphone, 13 FCC 2d 420, recon. denied, 14 FCC 2d 571 (1968), and

seeks comment on this proposal. The Commission recognizes that in

implementing Section 629, there is a need to assure that customer

premises equipment (CPE) does not cause harm to the network to which

the CPE is attached, and that the networks technical integrity is

maintained. The Commission seeks comment on how best to accomplish this

task. The Commission tentatively concludes that existing Part 15

certification rules should adequately address signal leakage issues

surrounding existing navigation devices, and seeks comment on this

conclusion. The Commission also seeks comment on whether the

marketplace will sufficiently address signal quality issues involving

navigation devices.

4. Section 629 requires that navigation devices be commercially

available from vendors not affiliated with any MVPD. The Commission

tentatively concludes that the definition of affiliate in Section 3 of

the 1996 Act, which establishes a ten percent equity interest

threshold, is applicable to Section 629 and seeks comment on this

conclusion.

5. The Commission seeks comment not only on issues raised by

current equipment distribution models, but also on whether and what

degree of standardization might be necessary so that navigation devices

may be geographically portable or may be interoperable to function with

different types of MVPDs or both. The Commission seeks comment on the

incremental cost of additional capabilities in this context. The

Commission also seeks comment on the process whereby any necessary

standards might be developed to promote competition. The Commission

states its desire not to develop standards itself, but rather urges the

adoption of voluntary standards by those affected. The Commission seeks

comment on the techniques it should use should standards prove to be

necessary or desirable toward assuring the commercial availability of

navigation devices, including alternatives to actual standard setting.

6. The Commission recognizes that some of the technologies

implicated by this proceeding may be wholly or partially proprietary in

nature. The Commission seeks comment on its authority to affect

proprietary rights, and on what limitations existing proprietary rights

may place on the Commission's authority to mandate commercial

availability of navigation devices.

7. Section 629 instructs the Commission not to jeopardize the

security of services offered over multichannel video programming

systems, nor to impede service providers' legal rights to prevent theft

of service. In order to fashion effective rules that fulfill this

requirement, the Commission seeks data and information on existing

security methodologies employed by MVPD industries, and seeks comment

on what it means to jeopardize security and to impede a programmer's

rights to prevent theft of service. The Commission recognizes that

equipment that performs security functions is often combined with

equipment that performs other functions. The Commission seeks comment

on the possibility of unbundling security from nonsecurity equipment.

The Commission tentatively concludes, should such unbundling be

necessary, that the preferred option for developing the necessary

framework to accomplish this would be to adopt only a conduct or

performance rule mandating the separation involved, leaving to the

industry participants involved the task of developing the necessary

interface standards. The Commission also seeks comment on whether the

affected industries could voluntarily adopt and the Commission approve

a variant of the decoder interface connector discussed in the First

Report and Order in ET Docket No. 93-7, 9 FCC Rcd 1981, 59 FR 25339

(May 16, 1994) and in the Memorandum Opinion and Order in ET Docket No.

93-7, 11 FCC Rcd 4121, 61 FR 18508 (April 26, 1996). The Commission

also seeks comment on the impact of the 1996 Act's amendments to

Section 624A of the Communications Act on the Commission's authority

under Section 629.

8. Section 629 allows MVPDs to offer navigation devices to

consumers if the charges are separately stated and not subsidized by

charges for the service accessed by the devices. The Commission

tentatively concludes that continuing with existing forms of

regulations that are broadly intended to constrain the subsidization of

equipment prices from regulated service revenues is most consistent

with the 1996 Act, and seeks comment on this conclusion, as well as on

alternative means of addressing subsidy issues.

9. Section 629 requires the Commission to waive any implementing

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regulation adopted for a limited period of time upon an appropriate

showing that such a waiver is necessary to assist the development or

introduction of new or improved multichannel video programming or other

service offered over multichannel video programming systems,

technology, or products. The Commission tentatively concludes that

where such waivers are required and requested, these requests should be

looked upon sympathetically and expansively. The Commission seeks

comment on this analysis. The Commission also seeks comment on whether

guidelines need to be set to define the limited time contemplated, and

also on whether the Commission's existing waiver procedures need to be

modified to comply with the statutory mandate that the Commission act

on a waiver within 90 days of its filing.

10. Section 629 provides that implementing regulations which are

adopted shall cease to apply upon a Commission determination that the

MVPD market is fully competitive, that the market for navigation

devices is fully competitive, and that elimination of the regulations

will promote competition and the public interest. The Commission seeks

comment on the service category and geographic market analyses

required, as well as the circumstances in general under which

regulatory involvement might terminate. The Commission tentatively

concludes that regulations for certain types of equipment may not need

to be adopted in the first place if competition is already fully

robust, and seeks comment on this conclusion.

Initial Regulatory Flexibility Analysis

11. As required by Section 603 of the Regulatory Flexibility Act

(``RFA''), 1 the Commission has prepared the following Initial

Regulatory Flexibility Analysis (``IRFA'') of the expected significant

economic impact on small entities by the policies and rules proposed in

this Notice of Proposed Rulemaking. Written public comments are

requested on the IRFA. These comments must be filed in accordance with

the same filing deadlines as comments on the rest of the Notice but

they must have a separate and distinct heading designating them as

responses to the IRFA. The Secretary shall send a copy of this Notice

to be sent to the Chief Counsel for Advocacy of the Small Business

Administration (``SBA'') in accordance with 5 U.S.C. 603(a).

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\1\ 5 U.S.C. 603. The RFA has been amended by the Contract With

America Advancement Act of 1996, Public Law 104-121, 110 Stat. 847

(1996) (``CWAAA''). Title II of the CWAAA is the ``Small Business

Regulatory Enforcement Fairness Act of 1996'' (``SBREFA''), codified

at 5 U.S.C. 601 et seq.

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12. Need for and Objectives of the Proposed Rules: The 1996 Act

requires the Commission to promulgate rules designed to promote the

commercial availability of navigation devices. The Commission is

issuing this Notice to seek comment on the proposed rules intended to

implement this provision of the 1996 Act, and to provide a record for a

Commission decision on issues discussed in the Notice.

13. Legal Basis: Authority for this proposed rulemaking is

contained in Sections 4(i), 4(j), 303(r), and 629 of the Communications

Act of 1934 as amended, 47 U.S.C. 154(i), 154(j), 303(r), and Secs. 304

and 549 of the Telecommunications Act of 1996, Public Law 104-104, 110

Stat. 56 (1996).

14. Description and Estimate of Small Entities to Which the

Proposed Rules Will Apply: Implementation of Section 304 will have the

positive result of opening up to small entities the market to supply

navigation devices directly to cable and other subscribers. In

addition, small businesses will have the opportunity to become the

manufacturers of navigation devices. While any policies or rules

developed in this proceeding could have an impact on small businesses

that manufacture, distribute, or use converter boxes, interactive

communications equipment, and other equipment used by consumers to

access multichannel video programming and other services offered over

multichannel video programming systems, this proceeding seeks comment

on how this burden, if any, could be mitigated for small entities.

15. The Regulatory Flexibility Act defines the term ``small

entity'' as having the same meaning as the terms ``small business,''

``small organization,'' and ``small business concern'' under Section 3

of the Small Business Act. 2 A small 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.

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\2\ 5 U.S.C. 601(3) (1980).

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16. Small MVPDs: SBA has developed a definition of small entity for

cable and other pay television services, which includes all such

companies generating less than $11 million in revenue annually. This

definition includes cable systems operators, closed circuit television

services, direct broadcast satellite services, multipoint distribution

systems, satellite master antenna systems and subscription television

services. According to the Census Bureau, there were 1,323 such cable

and other pay television services generating less than $11 million in

revenue that were in operation for at least one year at the end of

1992.3

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\3\ U.S. Census Bureau, 1992 Economic Census, 1992 Census of

Transportation, Communications and Utilities at Firm Size 1-123.

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17. Cable Systems: The Commission has developed its own definition

of a small cable system operator for the purposes of rate regulation.

Under the Commission's rules, a ``small cable company,'' is one serving

fewer than 400,000 subscribers nationwide. 4 Based on our most

recent information, we estimate that there were 1,439 cable operators

that qualified as small cable system operators at the end of

1995.5 Since then, some of those companies may have grown to serve

over 400,000 subscribers, and others may have been involved in

transactions that caused them to be combined with other cable

operators. Consequently, we estimate that there are fewer than 1,439

small entity cable system operators that may be affected by the

decisions and rules proposed in this Notice.

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\4\ 47 CFR 76.901(e). The Commission developed this definition

based on its determinations that a small cable system operator is

one with annual revenues of $100 million or less. Implementation of

Sections of the 1992 Cable Act: Rate Regulation, Sixth Report and

Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393, 60 FR

35854 (July 12, 1995).

\5\ Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29,

1996 (based on figures for Dec. 30, 1995).

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18. The Communications Act also contains a definition of a small

cable system operator, which is ``a cable operator that, directly or

through an affiliate, serves in the aggregate fewer than 1% 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.'' 6 The Commission has determined that there are

61,700,000 subscribers in the United States. Therefore, we found that

an operator serving fewer than 617,000 subscribers shall be deemed a

small operator, if its annual revenues, when combined with the total

annual revenues of all of its affiliates, do not exceed $250 million in

the aggregate.7 Based on available data, we find that the number

of cable operators serving 617,000 subscribers or less totals 1,450.

8 Although it seems certain that some of these cable system

operators are affiliated with entities whose gross annual revenues

exceed $250,000,000, we are unable at this time to estimate with

greater precision the

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number of cable system operators that would qualify as small cable

operators under the definition in the Communications Act.

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\6\ 47 U.S.C. 543(m)(2).

\7\ 47 CFR 76.1403(b).

\8\ Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29,

1996 (based on figures for Dec. 30, 1995).

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19. MMDS: The Commission refined the definition of ``small entity''

for the auction of MMDS as an entity that together with its affiliates

has average gross annual revenues that are not more than $40 million

for the preceding three calendar years.9 This definition of a

small entity in the context of the Commission's Report and Order

concerning MMDS auctions that has been approved by the SBA.10

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\9\ 47 CFR 21.961(b)(1).

\10\ See Amendment of Parts 21 and 74 of the Commission's Rules

With Regard to Filing Procedures in the Multipoint Distribution

Service and in the Instructional Television Fixed Service and

Implementation of Section 309(j) of the Communications Act--

Competitive Bidding, MM Docket No. 94-31 and PP Docket No. 93-253,

Report and Order, 10 FCC Rcd 9589, 60 FR 36524 (July 17, 1995).

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20. The Commission completed its MMDS auction in March 1996 for

authorizations in 493 basic trading areas (``BTAs''). Of 67 winning

bidders, 61 qualified as small entities. Five bidders indicated that

they were minority-owned and four winners indicated that they were

women-owned businesses. MMDS is an especially competitive service, with

approximately 1573 previously authorized and proposed MMDS facilities.

Information available to us indicates that no MDS facility generates

revenue in excess of $11 million annually. We tentatively conclude that

for purposes of this IRFA, there are approximately 1634 small MMDS

providers as defined by the SBA and the Commission's auction rules.

21. ITFS: There are presently 2032 ITFS licensees. All but one

hundred of these licenses are held by educational institutions.

Educational institutions are included in the definition of a small

business.11 However, we do not collect annual revenue data for

ITFS licensees and are not able to ascertain how many of the 100 non-

educational licensees would be categorized as small under the SBA

definition. Thus, we tentatively conclude that at least 1932 licensees

are small businesses.

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\11\ SBREFA also applies to nonprofit organizations and

governmental organizations such as cities, counties, towns,

townships, villages, school districts, or special districts, with

populations of less than 50,000. 5 U.S.C. 601(5).

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22. DBS: As of December 1996, there were eight DBS licensees.

However, the Commission does not collect annual revenue data for DBS

and, therefore, is unable to ascertain the number of small DBS

licensees that could be impacted by these proposed rules. Although DBS

service requires a great investment of capital for operation, we

acknowledge that there are several new entrants in this field that may

not yet have generated $11 million in annual receipts, and therefore

may be categorized as a small business, if independently owned and

operated.

23. HSD: The market for HSD service is difficult to quantify.

Indeed, the service itself bears little resemblance to other MVPDs. HSD

owners have access to more than 265 channels of programming placed on

C-band satellites by programmers for receipt and distribution by MVPDs,

of which 115 channels are scrambled and approximately 150 are

unscrambled.12 HSD owners can watch unscrambled channels without

paying a subscription fee. To receive scrambled channels, however, an

HSD owner must purchase an integrated receiver-decoder from an

equipment dealer and pay a subscription fee to an HSD programming

packager. Thus, HSD users include: (1) Viewers who subscribe to a

packaged programming service, which affords them access to most of the

same programming provided to subscribers of other MVPDs; (2) viewers

who receive only non-subscription programming; and (3) viewers who

receive satellite programming services illegally without subscribing.

Because scrambled packages of programming are most specifically

intended for retail consumers, these are the services most relevant to

this discussion.13

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\12\ Report in CS Docket No. 96-133 (``1996 Competition

Report''), FCC 96-496 at para. 49, 62 FR 5627 (February 6, 1997).

\13\ Id.

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24. According to the most recently available information, there are

approximately 30 program packagers nationwide offering packages of

scrambled programming to retail consumers.14 These program

packagers provide subscriptions to approximately 2,314,900 subscribers

nationwide.15 This is an average of about 77,163 subscribers per

program packager. This is substantially smaller than the 400,000

subscribers used in the Commission's definition of a small MSO.

Furthermore, because this an average, it is likely that some program

packagers may be substantially smaller.

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\14\ Id.

\15\ Id.

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25. SMATVs: Industry sources estimate that approximately 5200 SMATV

operators were providing service as of December 1995.16 Other

estimates indicate that SMATV operators serve approximately 1.05

million residential subscribers as of September 1996.17 The ten

largest SMATV operators together pass 815,740 units.18 If we

assume that these SMATV operators serve 50% of the units passed, the

ten largest SMATV operators serve approximately 40% of the total number

of SMATV subscribers. Because these operators are not rate regulated,

they are not required to file financial data with the Commission.

Furthermore, we are not aware of any privately published financial

information regarding these operators. Based on the estimated number of

operators and the estimated number of units served by the largest ten

SMATVs, we tentatively conclude that a substantial number of SMATV

operators qualify as small entities.

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\16\ 1996 Competition Report at para.81.

\17\ Id.

\18\ Id.

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26. LMDS: Unlike the above pay television services, LMDS technology

and spectrum allocation will allow licensees to provide wireless

telephony, data, and/or video services. A LMDS provider is not limited

in the number of potential applications that will be available for this

service. Therefore, the definition of a small LMDS entity may be

applicable to both cable and other pay television (SIC 4841) and/or

radiotelephone communications companies (SIC 4812). A small

radiotelephone entity is one with 1500 employees or less.19

However, for the purposes of this Notice, we include only an estimate

of LMDS video service providers.

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\19\ 13 CFR Sec. 121.201.

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27. LMDS is a service that is expected to be auctioned by the FCC

in 1997. The vast majority of LMDS entities providing video

distribution could be small businesses under the SBA's definition of

cable and pay television (SIC 4841). However, in the Third NPRM, we

proposed to define a small LMDS provider as an entity that, together

with affiliates and attributable investors, has average gross revenues

for the three preceding calendar years of less than $40 million.20

We have not yet received approval by the SBA for this definition.

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\20\ In the Matter of Rulemaking to Amend Parts 1, 2, 21, and 25

of the Commission's Rules to Redesignate the 27.5-29.5 GHz Frequency

Band, to Reallocate the 29.5-30.0 GHz Frequency Band, to Establish

Rules and Policies for Local Multipoint Distribution Service and for

Fixed Satellite Services and Suite 12 Group Petition for Pioneer's

Preference (``Third NPRM''), CC Docket No. 92-297, 11 FCC Rcd 53, at

]188, 60 FR 43740 (August 23, 1995).

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28. There is only one company, CellularVision, that is currently

providing LMDS video services. Although the Commission does not collect

data on annual receipts, we assume that CellularVision is a small

business under both the SBA definition

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and our proposed auction rules. We tentatively conclude that a majority

of the potential LMDS licensees will be small entities, as that term is

defined by the SBA and the Commission's proposed definition.

29. Small Manufacturers: The SBA has developed definitions of small

entity for manufacturers of household audio and video equipment (SIC

3651) and for radio and television broadcasting and communications

equipment (SIC 3663). In each case, the definition includes all such

companies employing 750 or fewer employees.

30. Electronic Equipment Manufacturers: The Commission has not

developed a definition of small entities applicable to manufacturers of

electronic equipment. Therefore, we will utilize the SBA definition of

manufacturers of Radio and Television Broadcasting and Communications

Equipment.21 According to the SBA's regulations, a TV equipment

manufacturer must have 750 or fewer employees in order to qualify as a

small business concern.22 Census Bureau data indicates that there

are 858 U.S. firms that manufacture radio and television broadcasting

and communications equipment, and that 778 of these firms have fewer

than 750 employees and would be classified as small entities.23

The Census Bureau category is very broad, and specific figures are not

available as to how many of these firms are exclusive manufacturers of

television equipment or how many are independently owned and operated.

We conclude that there are approximately 778 small manufacturers of

radio and television equipment.

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\21\ This category excludes establishments primarily engaged in

the manufacturing of household audio and visual equipment which is

categorized as SIC 3651. See infra for SIC 3651 data.

\22\ 13 CFR 121.201, (SIC) Code 3663.

\23\ U.S. Dept. of Commerce, 1992 Census of Transportation,

Communications and Utilities, Table 1D, (issued May 1995), SIC

category 3663.

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31. Electronic Household/Consumer Equipment: The Commission has not

developed a definition of small entities applicable to manufacturers of

electronic equipment used by consumers, as compared to industrial use

by television licensees and related businesses. Therefore, we will

utilize the SBA definition applicable to manufacturers of Household

Audio and Visual Equipment. According to the SBA's regulations, a

household audio and visual equipment manufacturer must have 750 or

fewer employees in order to qualify as a small business concern.24

Census Bureau data indicates that there are 410 U.S. firms that

manufacture radio and television broadcasting and communications

equipment, and that 386 of these firms have fewer than 500 employees

and would be classified as small entities.25 The remaining 24

firms have 500 or more employees; however, we are unable to determine

how many of those have fewer than 750 employees and therefore, also

qualify as small entities under the SBA definition. Furthermore, the

Census Bureau category is very broad, and specific figures are not

available as to how many of these firms are exclusive manufacturers of

television equipment for consumers or how many are independently owned

and operated. We conclude that there are approximately 386 small

manufacturers of television equipment for consumer/household use.

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\24\ 13 CFR 121.201, (SIC) Code 3651.

\25\ U.S. Small Business Administration 1995 Economic Census

Industry and Enterprise Report, Table 3, SIC Code 3651, (Bureau of

the Census data adapted by the Office of Advocacy of the U.S. Small

Business Administration).

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32. Computer Manufacturers: The Commission has not developed a

definition of small entities applicable to computer manufacturers.

Therefore, we will utilize the SBA definition of Electronic Computers.

According to SBA regulations, a computer manufacturer must have 1,000

or fewer employees in order to qualify as a small entity.26 Census

Bureau data indicates that there are 716 firms that manufacture

electronic computers and of those, 659 have fewer than 500 employees

and qualify as small entities.27 The remaining 57 firms have 500

or more employees; however, we are unable to determine how many of

those have fewer than 1,000 employees and therefore also qualify as

small entities under the SBA definition. We conclude that there are

approximately 659 small computer manufacturers.

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\26\ 13 CFR 121.201, (SIC) Code 3571.

\27\ U.S. Small Business Administration 1995 Economic Census

Industry and Enterprise Report, Table 3, SIC Code 3571, (Bureau of

the Census data adapted by the Office of Advocacy of the U.S. Small

Business Administration).

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33. Small Retailers: The Commission has not developed a definition

of small entities applicable to navigation retail devices. Therefore,

we will utilize the SBA definition. The 1992 Bureau of the Census data

indicates: there were 9,663 U.S. firms classified as Radio, TV &

electronic stores (SIC 5731), and that 9,385 of these firms had $4.999

million or less in annual receipts and 9,473 of these firms had $7.499

million or less in annual receipts.28 Consequently, we tentatively

conclude that there are approximately 9,663 small entities that produce

and distribute radio, television, and electronic stores that may be

affected by the decisions and rules proposed in this Notice.

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\28\ U.S. Small Business Administration 1992 Economic Census

Industry and Enterprise Report, Table 2D, SIC 7812, (Bureau of the

Census data adapted by the Office of Advocacy of the U.S. Small

Business Administration) (SBA 1992 Census Report). The Census data

does not include a category for $6.5 million therefore, we have

reported the closest increment below and above the $6.5 million

threshold. There is a difference of 88 firms between the $4.999 and

$7.499 million annual receipt categories. It is possible that these

88 firms could have annual receipts of $6.5 million or less and

therefore, would be classified as small businesses.

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34. Reporting, Recordkeeping, and Other Compliance Requirements:

The proposed actions may require MVPDs to obtain security modules for

sale to subscribers. They may also prohibit MVPDs from providing CPE

which is not commercially available. In addition, the proposed actions

may require MVPDs to make available to consumers basic technical

information concerning the network to which a navigation device is to

be attached (paragraph 56). This latter proposal, if adopted, would not

necessitate any additional professional, engineering, or customer

service skills beyond those already utilized in the ordinary course of

business by MVPDs. Any costs to the MVPD would be justified by the

competitive benefits; MVPDs and consumers will benefit from an

increased, more innovative, and more competitive market for navigation

devices. We seek comment on this.

35. Any Significant Alternatives Minimizing the Impact On Small

Entities Consistent With the Stated Objectives: We believe that our

proposals will have the positive result of opening up to small entities

the market to supply navigation devices directly to cable and other

subscribers (see discussion at paragraph 84). In addition, small

businesses will have the opportunity to become the manufacturers of

navigation devices (see discussion at paragraph 84). While small

businesses would experience costs associated with maintaining for sale

navigation devices, should we adopt rules that would require such, we

believe such businesses are capable of doing so. Should commenters

disagree with this conclusion, we welcome comments suggesting ways in

which any perceived burden upon small entities could be mitigated.

36. Federal Rules Which Overlap, Duplicate or Conflict with

Proposed Rules: None.

Ex Parte

37. This is a non-restricted notice and comment rule making

proceeding. Ex

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parte presentations are permitted, provided they are disclosed as

provided in the Commission's Rules. See generally 47 CFR 1.1202, 1.1203

and 1.1206(a).

Comment Dates

38. Pursuant to applicable procedures set forth in Secs. 1.415 and

1.419 of the Commission's Rules, interested parties may file comments

on or before May 16, 1997 and reply comments on or before June 16,

1997. All relevant and timely comments will be considered before final

action is taken in this proceeding. To file formally in this

proceeding, participants must file an original and four copies of all

comments, reply comments, and supporting comments. If participants want

each Commissioner to receive a personal copy of their comments, an

original plus nine copies must be filed. Comments and reply comments

should be sent to the Office of the Secretary, Federal Communications

Commission, Washington, D.C. 20554. Comments and reply comments will be

available for public inspection during regular business hours in the

FCC Reference Center (Room 239) of the Federal Communications

Commission, 1919 M Street, NW, Washington, DC 20554.

List of Subjects in 47 CFR Part 76

Cable television.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 97-5350 Filed 3-4-97; 8:45 am]

BILLING CODE 6712-01-P