[Federal Register Volume 60, Number 165 (Friday, August 25, 1995)]
[Rules and Regulations]
[Pages 44280-44281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21244]



=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 63

[CC Docket No. 87-266, FCC 95-357]


Streamlined Section 214 Authorization for Stand-alone Cable 
Systems

agency: Federal Communications Commission (FCC).

action: Final rule.

-----------------------------------------------------------------------

summary: Section 214 of the Communications Act requires local exchange 
telephone companies (LECs) to obtain authorization from the Federal 
Communications Commission before constructing or acquiring a cable 
system in their service territories. Although section 613(b) of the Act 
generally prohibits LECs from providing video programming directly to 
subscribers in their service areas, various court decisions have 
enjoined the Commission from enforcing this telco-cable cross-ownership 
ban against virtually all LECs. This order concludes that it is in the 
public interest to streamline the section 214 process with respect to 
those LECs against whom the Commission is not enforcing the cross-
ownership ban that seek authorization to construct facilities to 
provide cable service in their service areas on a stand-alone basis.

effective date: August 25, 1995.

for further information contact: Mark S. Nadel, Policy and Program 
Planning Division, Common Carrier Bureau, (202) 418-1594.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    Public reporting burden for the collections of information is 
estimated to average 1 hour per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collections of information. Send comments regarding these burden 
estimates or any other aspect of the collections of information, 
including suggestions for reducing the burden, to the Federal 
Communications Commission, Records Management Branch, Room 234, 
Washington, DC 20554 and to the Office of Management and Budget, 
Paperwork Reduction Project, Washington, DC 20503.

Background

    In 1970, the Commission concluded that section 214 of the Act 
requires that a LEC obtain Commission authorization before constructing 
or operating a cable system in its service territory. However, under 
Commission rules enacted in 1970 and later under section 613(b) of the 
Cable Communications Policy Act of 1984, LECs were generally prohibited 
from providing video programming directly to subscribers in their 
telephone service areas.
    After this cross-ownership ban was found to violate the First 
Amendment and the Commission was enjoined from enforcing it against 
virtually all LECs, the Commission issued Telephone Company-Cable 
Television Cross-Ownership Rules, sections 63.54-63.58, Fourth Further 
Notice of Proposed Rulemaking, CC Docket No. 87-266, 10 FCC Rcd 4617, 
60 FR 8996 (Feb. 16, 1995), to consider how current statutory 
provisions, including section 214, should apply to a LEC's provision of 
video programming to subscribers in its service area. Subsequently, to 
supplement the record on certain particular issues, Commission staff 
sought additional comment, inter alia, on whether the Commission should 
grant blanket section 214 authorization to such LECs for construction 
or acquisition of cable facilities in their service areas. Public 
Notice, DA 95-665, 60 FR 17763 (Apr. 7, 1995). Comment was also sought 
on whether such blanket section 214 authorization should apply both 
when the cable television facility is used also to provide telephone 
service and when the facility is used to provide only cable television 
services. Finally, comment was sought on what, if any, other 
circumstances warrant granting consideration of such blanket section 
214 authorization when a telephone company provides video programming 
in its service area, on any methods for streamlining the section 214 
application process, and on how the relevant rules should be amended.

Summary of Fourth Report and Order

    This is a summary of the Commission's Fourth Report and Order in 
Telephone Company-Cable Television Cross-Ownership Rules Secs. 63.54-
63.58, CC Docket No. 87-266; FCC 95-357, Adopted: August 11, 1995 and 
Released: August 14, 1995. The full text of this Commission decision is 
available for inspection and copying during normal business hours in 
the FCC Dockets Branch (room 230), 1919 M 

[[Page 44281]]
Street NW., Washington, DC. The complete text of this decision may also 
be purchased from the Commission's copy contractor, ITS, (202)-857-
3800, 2100 M Street NW., suite 140, Washington, DC 20037.
    This order streamlines the authorization process for telephone 
companies who seek to construct stand-alone cable television facilities 
in their service areas. These streamlined procedures apply to those 
telephone companies who have obtained injunctions that bar the FCC from 
enforcing the telco-cable cross-ownership ban.
    The Cable Act of 1984 generally prohibits LECs from providing video 
programming directly to subscribers in their telephone service areas. A 
series of court decisions, however, have found that this cross-
ownership ban violates the First Amendment and have enjoined the 
Commission from enforcing it. In response, in January, the Commission 
adopted a Notice of Proposed Rulemaking seeking comment on the rules 
that should apply to a LEC's provision of video programming to 
subscribers in its service area. In April, Commission staff sought 
additional comment on whether it should grant blanket section 214 
authorization to such LECs for construction or acquisition of cable 
facilities in their service areas.
    Under section 214 of the Communications Act, LECs are required to 
obtain Commission authorization before acquiring, constructing, or 
operating a cable television system. In 1984, the Commission found that 
it was in the public interest to grant a blanket section 214 
authorization to LECs seeking to operate cable systems outside of their 
telephone service areas.
    Because judicial injunctions prevent the Commission from enforcing 
the cross-ownership ban, it finds, in this Order, that the public 
interest will be served by adopting a streamlined authorization process 
for those LECs against whom it is not enforcing the cross-ownership ban 
who seek to construct stand-alone cable facilities in their service 
areas.
    Under these streamlined procedures, a LEC will be required to 
certify that the system it proposes to construct is not a common 
carrier system, that it will comply with the rules the Commission has 
promulgated to protect telephone ratepayers, and that it has secured a 
franchise to provide cable service pursuant to Title VI of the 
Communications Act. Unless the Common Carrier Bureau notifies the 
applicant within 14 days of the issuance of the public notice listing 
the application as accepted for filing, the authorization will be 
deemed granted. Where the Bureau notifies the applicant, action by the 
full Commission will be taken within 180 days of that notification.

List of Subjects in 47 CFR Part 63

    Cable television, Communications common carriers, Reporting and 
recordkeeping requirements, Telephone.

Amendments to the Code of Federal Regulations

    Title 47 of the CFR, Part 63 is amended as follows:

PART 63--EXTENSION OF LINES AND DISCONTINUANCE, REDUCTION, OUTAGE 
AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND GRANTS OF 
RECOGNIZED PRIVATE OPERATING AGENCY STATUS

    1. The authority citation for Part 63 continues to read as follows:

    Authority: Sections 1, 4(i), 4(j), 201-205, 218, and 403 of the 
Communications Act of 1934, as amended, 47 U.S.C. secs. 151, 154(i), 
154(j), 201-205, 218, and 403, unless otherwise noted.

    2. New Sec. 63.16 is added under the heading ``Extensions and 
Supplements'' to read as follows:


Sec. 63.16  Construction of stand-alone cable system by a carrier in 
its exchange telephone service area.

    (a) Applications of telephone common carriers proposing to 
construct and operate stand-alone cable systems within their telephone 
service areas, either directly or indirectly through affiliates, need 
include only the following information in lieu of that required by 
Sec. 63.01:
    (1) Applicant's name, address and telephone number. This 
information shall also be submitted for Applicant's affiliate, if 
applicable;
    (2) Location of the proposed system (city, town or village, county, 
and state);
    (3) Certification that the lines constructed by the Applicant 
constitute a stand-alone cable system that will not be used to provide 
common carrier service unless and until it has secured any prior 
approvals necessary under Part 64 of this chapter and any other 
requirements designed to ensure that the local exchange carriers' 
telephone ratepayers do not subsidize the provision of cable service;
    (4) Certification that the Applicant will comply with 47 CFR 32.23, 
32.27, 64.901-64.904;
    (5) Certification that the Applicant is franchised to provide cable 
service pursuant to Title VI of the Communications Act, and date of 
franchise; and
    (b) As used in this section, a stand-alone cable system is one that 
does not share central office assets (USOA Accounts 2210 through 2232, 
47 CFR 32.2210-32.2232) or cable and wire facilities (USOA Accounts 
2410 through 2441, 47 CFR 32.2410-32.2441) with the carrier's regulated 
telephone telephone business.
    (c) An original and two copies of the application shall be 
furnished to the Secretary, Federal Communications Commission, 
Washington, DC 20554. Applicant shall furnish a copy of the Governor of 
the state in which the line is to be constructed, and also to the 
Secretary of Defense, Attn. Special Assistant for Telecommunications, 
Pentagon, Washington, DC 20301.
    (d) Unless the Bureau notifies the applicant otherwise within 14 
days of the issuance of the public notice listing the application as 
accepted for filing, the 47 U.S.C. 214 authorization will be deemed 
granted, and the LEC may begin construction on the 15th day. The Bureau 
will confirm such authorizations in public notices issued monthly. 
Where the Bureau has notified the applicant, action by the full 
Commission on the 47 U.S.C. 214 application will be taken within 180 
days from the date of the Bureau notification.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 95-21244 Filed 8-24-95; 8:45 am]
BILLING CODE 6712-01-M