[Federal Register Volume 61, Number 51 (Thursday, March 14, 1996)]
[Rules and Regulations]
[Pages 10475-10476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6145]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 63

[CS Docket No. 96-46; FCC 96-99]


Open Video Systems

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Report and Order eliminates the Commission's video 
dialtone, cross-ownership, and section 214 authorization rules. This 
order eliminates or modifies our rules in accordance with the 
Telecommunications Act of 1996. This order fulfills the mandate of the 
Telecommunications Act of 1996.

EFFECTIVE DATE: March 11, 1996.

FOR FURTHER INFORMATION, CONTACT: Rick Chessen or Larry Walke, Cable 
Services Bureau, (202) 416-0800.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Report and Order in CS Docket No. 96-46, FCC No. 96-99, adopted March 
11, 1996 and released March 11, 1996. 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, 
D.C. 20554, and may be purchased from the Commission's copy contractor, 
International Transcription Service, (202) 857-3800, 1919 M Street, NW, 
Washington, D.C. 20554.

Report and Order--Repeal of Video Dialtone Rules, Cross Ownership 
Rules, and Section 214 Requirements

1. Statutory Provisions

    1. Subsection 302(b)(1) of the 1996 Act provides: ``Subsection (b) 
of section 613 (47 U.S.C. 533(b)) [i.e., the telephone company-cable 
cross-ownership restriction] is repealed.'' In addition, subsection 
302(a) of the 1996 Act adds new subsection 651(c) of the Communications 
Act, which provides that a common carrier shall no longer be required 
to obtain a certificate under Section 214 to establish or operate a 
system for the delivery of video programming. Finally, subsection 
302(b)(3) of the 1996 Act states: ``The Commission's regulations and 
policies with respect to video dialtone requirements issued in CC 
Docket No. 87-266 shall cease to be effective on the date of enactment 
of this Act.'' This provision also states: ``This paragraph shall not 
be construed to require the termination of any video-dialtone system 
that the Commission has approved before the date of enactment of this 
Act.'' The conference report further provides that ``[r]epeal of the 
Commission's video dialtone regulations is not intended to alter the 
status of any video dialtone service offered before the regulations 
required by this section become effective.''

2. Discussion

    2. In this order we modify our rules to conform to sections 
302(b)(1) and 302(b)(3) of the 1996 Act, which repealed the telephone-
cable cross-ownership restriction and eliminated our video dialtone 
rules and policies upon enactment. We also hereby terminate the docket 
in which our video dialtone rules and policies were promulgated (CC 
Docket No. 87-266). Further, we hereby revoke: (1) The Common Carrier 
Bureau's Memorandum Opinion and Order adopting subsidiary

[[Page 10476]]
accounting and reporting requirements for video dialtone; and (2) 
Responsible Accounting Officer Letter 25 (``RAO Letter 25''), which 
sets forth specific guidelines for accounting classifications, 
subsidiary records, and amendments to cost allocation manuals for video 
dialtone. Finally, consistent with subsection 302(b)(3) of the 1996 
Act, we do not require currently approved video dialtone systems to 
cease operations.
    3. In addition, in order to conform our rules to new section 651(c) 
of the Communications Act, we modify our rules to the extent they 
relate to any requirement that a common carrier obtain a certificate 
under Section 214 to establish or operate a video programming delivery 
system. Pursuant to subsection 651(c), we will no longer require that a 
common carrier obtain Section 214 authorization to establish or operate 
a video programming delivery system, even a video programming delivery 
system provided on a common carrier basis pursuant to Title II of the 
Communications Act.

Final Regulatory Flexibility Analysis

    4. Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 
601-612, the Commission's Flexibility Analysis with respect to the 
Report and Order is as follows:
    5. Need and purpose of this action: The Commission issues this 
Report and Order to enact or revise rules governing telephone 
companies' provision of video programming in response to the 1996 Act.
    6. Significant Alternatives considered: Not applicable.
    7. Federal rules that overlap, duplicate or conflict with these 
rules: None.

Paperwork Reduction Act

    8. Paperwork Reduction Act Statement: The proposal contained herein 
has been analyzed with respect to the Paperwork Reduction Act of 1995. 
None of the modifications made to the rules in this proceeding should 
increase the information collection requirements on the public.

Effective Date

    9. The elimination of the rules concerning video dialtone, cross-
ownership and Section 214 authorization for the delivery of video 
adopted in the Report and Order were effective upon enactment of the 
1996 Act, and we amend these rules to conform to those statutory 
changes.

Ordering Clauses

    10. It is ordered that the Commission's regulations and policies 
with respect to video dialtone requirements issued in CC Docket No. 87-
266 are hereby removed.
    11. It is further ordered that CC Docket No. 87-266 is hereby 
terminated.
    12. It is further ordered that the Commission's regulations are 
hereby amended as set forth below.
    13. It is further ordered that the Common Carrier Bureau's 
Memorandum Opinion and Order adopting subsidiary accounting and 
reporting requirements for video dialtone, and RAO Letter 25 (except 
with respect to the ATM equipment issue, as noted above) are hereby 
revoked.
    14. It is further ordered that in light of the 1996 Act's 
termination of the Commission's rules and policies concerning video 
dialtone, we find for good cause that notice and comment on the actions 
taken herein would be impracticable, unnecessary and contrary to the 
public interest. See 5 U.S.C. 553(b)(B).
    15. It is further ordered that the Secretary shall send a copy of 
this NPRM, including the IRFA, to the Chief Counsel for Advocacy of the 
Small Business Administration in accordance with paragraph 603(a) of 
the Regulatory Flexibility Act, Public Law No. 96-354, 94 Stat. 1164, 5 
U.S.C. 601, et seq. (1981)
    16. For additional information regarding this proceeding, contact 
Rick Chessen or Larry Walke, Policy & Rules Division, Cable Services 
Bureau (202) 416-0800.

List of Subjects in 47 CFR Part 63

    Cable television, Communications common carriers, Telephone.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Rule Changes

    Part 63 of title 47 of the Code of Federal Regulations 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. 151, 154(i), 
154(j), 201-205, 218 and 403, unless otherwise noted.

    2. Section 63.08 is amended by adding a colon after ``are'' before 
paragraph (a)(i), removing paragraph (a)(i), redesignating (a)(ii) and 
(a)(iii) as paragraphs (a)(1) and (a)(2), respectively, removing the 
second sentence of newly redesignated paragraph (a)(2), revising the 
second sentence of paragraph (b), revising paragraph (c), and adding 
paragraph (e) to read as follows:


Sec. 63.08  Lines outside of a carrier's exchange telephone service 
area.

* * * * *
    (b) * * * ``Nondominant'' is defined as in Sec. 61.15(a) of this 
chapter.
    (c) A common carrier or its affiliate is not required to file for 
authority pursuant to 47 U.S.C. 214 and Sec. 63.01 to discontinue, 
reduce, or impair other non-common carrier service.
* * * * *
    (e) As used above, the term ``affiliate'' bars any financial or 
business relationship whatsoever by contract or otherwise, directly or 
indirectly between the carrier and the customer, except only the 
carrier-user relationship.
    Note to Paragraph (e): Examples of situations in which a carrier 
and its customer will be deemed to be controlled or having a 
relationship include the following, among others: Where one is the 
debtor or creditor of the other (except with respect to charges for 
communication services); where they have a common officer, director, or 
other employee at the management level; where there is any element of 
ownership or other financial interest by one in the other; and where 
any part has a financial interest in both.


Sec. 63.09  [Removed]

    3. Section 63.09 is removed.


Sec. 63.16  [Removed]

    4. Section 63.16 is removed.


Sec. 63.52  [Amended]

    5. Section 63.52(b) is amended by removing the reference to 
``63.54,''.


Secs. 63.54-63.58  [Removed]

    6. Sections 63.54 through 63.58 and the undesignated center heading 
preceding them are removed.

[FR Doc. 96-6145 Filed 3-11-96; 3:40 pm]
BILLING CODE 6712-01-P