[Federal Register Volume 59, Number 102 (Friday, May 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13146]


[[Page Unknown]]

[Federal Register: May 27, 1994]


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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 76

[CS Docket No. 94-48; FCC 94-119]

 

Competition in the Market for the Delivery of Video Programming

AGENCY: Federal Communications Commission.

ACTION: Notice of inquiry.

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SUMMARY: This Notice of Inquity (Inquiry) in CS Docket No. 94-48 
results from a directive to the Commission included in the Cable 
Television Consumer Protection and Competition Act of 1992 (``1992 
Cable Act''), to prepare snd submit a report on the status of 
competition in the market for the delivery of video programming to 
Congress, 18 months after promulgation of the program access 
regulations, or, October 1, 1994, and annually, thereafter. In this 
Inquiry, the Commission intends to gather information to prepare a 
preliminary analysis on the current state of competition to cable 
television provided by alternative distribution technologies, to 
collect data and information on the practices of video programming 
vendors and distributors, to identify the information required to write 
subsequent comprehensive annual reports to Congress, and to identify 
the appropriate means for collecting such information in the future.

DATES: Comments may be filed on or before June 29, 1994; reply comments 
may be filed on or before July 29, 1994.

ADDRESSES: Federal Communications Commission, Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT:Diane L. Hofbauer at (202) 416-0856, or 
Nina M. Sandman at (202) 416-0856, Cable Services Bureau, Competition 
Division.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Notice of Inquiry (Inquiry) in CS Docket No. 94-48, adopted May 19, 
1994, and released May 19, 1994. The full text of this Inquiry is 
available for inspection and copying during normal business hours in 
the FCC Reference Center (Room 239), 1919 M Street, NW., Washington, 
DC, and may also be purchased from the Commission's copy contractor, 
International Transcription Services, (202) 857-3800, 2100 M Street 
NW., suite 140, Washington, DC 20037.

Synopsis of Notice of Inquiry

    1. The Inquiry stesses that a primary goal of the 1992 Cable Act 
was to promote increased competition in the delivery of cable 
television services. Section 19(g) of the 1992 Cable Act directed the 
Commission to annually report to Congress on the status of competition 
in the market for the delivery of video programming. The first report 
must be submitted to Congress no later than October 1, 1994. The 
Commission believes that it must engage in an ongoing process of 
evaluating the status of competition to cable television in order to 
meet this annual reporting requirement.
    2. The goals of this Inquiry are threefold: (1) To gather 
information sufficient to prepare a preliminary analysis for Congress 
of the current state of competition to cable provided by alternative 
distribution technologies; (2) to collect information on whether and 
the extent to which the conduct and practices of multichannel video 
programming vendors and distributors have changed; and (3) to identify 
the information required to enable the Commission to prepare more 
comprehensive analyses in our future reports and the appropriate means 
of obtaining it.
    3. The Inquiry asks questions about the suitable means of analyzing 
the relevant programming and distribution markets. To assist the 
Commission in conducting its analysis, the Inquiry seeks comment on 
relevant economic methodologies, including structure-conduct-
performance analyses and their complementary antitrust concepts, 
contestable market theory, and transaction cost economics.
    4. The Inquiry also seeks to establish a reference point for future 
comparisons of the status of the multichannel video programming 
marketplace by updating the information contained in Appendix G of the 
Commission's 1990 Cable Report to Congress (``1990 Report'') with 
respect to horizontal ownership levels and vertical integration. 55 FR 
32631 (8/10/90).
    5. For this first annual report to Congress, the Commission will 
undertake a preliminary assessment of the status of competition at the 
local level in the video programming marketplace. The Inquiry notes 
that competition to cable television is currently provided to a limited 
extent by ``wireless cable'' systems, high-power and medium-power 
direct broadcast satellite (``DBS'') services, direct-to-home satellite 
services, satellite master antenna television (``SMATV'') systems, 
telephone technologies (such as video dialtone), cable overbuilds, and 
over-the-air television broadcasting.
    6. The Inquiry notes that there have been various significant 
technological changes since the 1990 Report. For example, since local 
telephone exchange carriers are now seen as providing competition to 
cable, the Inquiry seeks comment on how the Commission should approach 
and address video dialtone in the context of its report. Also, the 
Inquiry addresses digital compression, as well as entry into the video 
programming distribution market by other providers such as electric or 
other utility companies, and the implications of their entry.
    7. With respect to analysis of horizontal ownership and vertical 
integration in the cable industry, the Inquiry notes that substantial 
reliance was placed on the 1990 Report when establishing the subscriber 
and channel occupancy limits. The Inquiry seeks to gather data to 
create a baseline that may be used to provide a comprehensive report, 
and that will also aid the Commission in its periodic review of the 
appropriateness of those limits.
    8. In addition, the Inquiry proposes to gather information on the 
existence and extent of affiliations, including, but not limited to, 
investments, joint ventures, and partnerships between multichannel 
video programming distributors and other communications companies. 
Comment is sought on how these and other types of business 
relationships will affect the cost, quality, and variety of video 
programming. The Inquiry acknowledges that some information that could 
be requested might include proprietary or otherwise confidential 
information or data. Comment is requested on how the Commission should 
gather, examine, protect or release such information and data, and on 
possible methods for protecting individual confidentiality.
    9. The Inquiry seeks comments on the effect that the 1992 Cable Act 
and the Commission's implementing rules, and the effect of the changes 
in the multichannel video marketplace resulting from the 1992 Act and 
rules, have had on the entry and development of competitors in the 
marketplace, e.g., negotiations, sales, marketing, and carriage 
practices.
    10. The Inquiry also seeks to determine whether anticompetitive 
practices in the multichannel video programming and distribution 
markets have diminished, and whether new and potentially 
anticompetitive conduct has developed. To the extent commenters express 
continued concerns about the existence of undue market power by cable 
operators, other multichannel video programming distributors, or 
vertically integrated programming vendors engaging in conduct that is 
not encompassed within the Commission's rules, they are requested to 
suggest regulatory responses that will address them.
    11. Since the Inquiry acknowledges that it may be desirable in the 
future to establish more systematic reporting procedures, it seeks 
comments on specific studies, survey methodologies, etc. that the 
Commission might undertake to gather the information that will enable 
it to prepare accurate and comprehensive reports. The Inquiry seeks 
comment on whether the Commission should adopt annual reporting 
requirements on various licensees providing multichannel video 
programming distribution services and on vertically integrated 
programming vendors, and what such reporting requirements should 
entail.
    12. The Inquiry emphasizes that the Commission wishes to gather and 
compile all of this information without unduly burdening the 
information providers. Thus, the Inquiry seeks comment on the least 
intrusive means for gathering the necessary information and data.

Administrative Matters

    Ex Parte. This is a non-restricted proceeding subject to 47 CFR 
Sec. 1.1206(b)(2).
    Comments. Interested parties may file comments on or before June 
29, 1994, and reply comments on or before July 29, 1994.

List of Subjects in 47 CFR Part 76

    Cable television.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 94-13146 Filed 5-26-94; 8:45 am]
BILLING CODE 6712-01-M