[Federal Register Volume 61, Number 128 (Tuesday, July 2, 1996)]
[Proposed Rules]
[Pages 34409-34410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16817]


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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 76

[CS Docket No. 96-133, FCC 96-265]


Annual Assessment of the Status of Competition in the Market for 
the Delivery of Video Programming

AGENCY: Federal Communications Commission.

ACTION: Notice of inquiry.

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SUMMARY: The Commission is required to report annually to Congress on 
the status of competition in the market for the delivery of video 
programming pursuant to Section 628(g) of the Communications Act of 
1934, as amended. On June 12, 1996, the Commission adopted a Notice of 
Inquiry to solicit information from the public for use in preparing the 
competition report that is to be submitted to Congress in December 
1996. The Notice of Inquiry will provide parties with an opportunity to 
submit comments and information to be used in conjunction with publicly 
available information and filings submitted in relevant Commission 
proceedings to assess the extent of competition in the market for the 
delivery of video programming.

DATES: Comments are due by July 19, 1996, and reply comments are due by 
August 19, 1996.

ADDRESSES: Federal Communications Commission, Washington, D.C. 20554.

FOR FURTHER INFORMATION CONTACT: Marcia Glauberman, Cable Services 
Bureau, (202) 418-7200, or Jeffrey Lanning, Office of the General 
Counsel, (202) 418-1880.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Notice of Inquiry in CS Docket No. 96-133, FCC 96-265, adopted June 12, 
1996, and released June 13, 1996. The complete text of this Notice of 
Inquiry is available for inspection and copying during normal business 
hours in the FCC Reference Center (Room 239), 1919 M Street, N.W., 
Washington, D.C., 20554, and may also be purchased from the 
Commission's copy contractor, International Transcription Service (202) 
857-3800, 1900 M Street, N.W., Washington, D.C. 20054.

Synopsis of the Notice of Inquiry

    1. Section 628(g) of the Communications Act of 1934, as amended 
(``Communications Act''), 47 U.S.C. Sec. 548(g), requires the 
Commission to deliver an annual report to Congress on the status of 
competition in the market for the delivery of video programming. The 
Commission submitted its first two reports to Congress in September 
1994 and December 1995, respectively.
    2. The Notice of Inquiry (``NOI'' ) is designed to solicit comments 
and information that the Commission can use to prepare its 1996 
Competition Report. Specifically, the NOI requests information on the 
cable industry, existing and potential competitors to cable systems, 
barriers to entry by new competitors, technological advances and the 
effects of the 1996 Act on competition in the market for the delivery 
of video programming. The Commission expects to use the information 
that is submitted by commenters to supplement publicly available 
information and relevant comments that have been filed in other 
Commission proceedings. The NOI highlights a wide range of competitive 
issues, and offers parties an opportunity to submit comments on these 
issues, as well as any other information they believe is relevant to an 
evaluation of competition in the market for the delivery of video 
programming.
    3. The NOI begins with an overview of the 1996 Act, including a 
summary of the provisions that may promote competition among 
multichannel video programming distributors (``MVPDs''). These 
provisions include: (1) repeal of the cable-telco cross-ownership ban; 
(2) creation of the open video system (``OVS'') option for local 
exchange carrier (``LEC'') entry into the market for the delivery of 
video programming; (3) deregulation of small cable systems; (4) 
expansion of the definition of effective competition; and (5) 
elimination under a number of circumstances of the uniform cable 
service rate structure requirement for similarly situated subscribers.
    4. The NOI then seeks information and comment on the status of the 
different MVPDs that serve subscribers in the market for the delivery 
of video programming and the changes that have occurred in the past 
year. The MVPDs include cable television (including overbuilds), 
multipoint multichannel distribution service (``MMDS'' or ``wireless 
cable''), direct broadcast satellites (``DBS'') and home satellite 
dishes (``HSDs''), and satellite master antenna television (``SMATV'') 
systems. The Commission also seeks information on potential rivals for 
incumbent cable systems, such as open video systems built by LECs.
    5. The NOI asks a variety of questions concerning each of these 
video service providers and solicits information regarding barriers to 
entry and the nature of the services they provide. The NOI also 
indicates that the Commission intends to examine the effects on 
competition of broadcast television service, video cassette recorders 
(``VCRs'') and interactive video and data services (``IVDS'').
    6. The Commission observes that there are technological advances 
that may affect the structure of the market for the delivery of video 
programming. In this regard, the NOI solicits information on digital 
compression, hybridization of different transmission media, and 
developments in set-top boxes and switched digital services.
    7. In the NOI, the Commission requests comment on the structure of 
the market for the delivery of video programming and the effect of this 
structure on competition. The Commission expects to explore the status 
of horizontal concentration and vertical integration in the cable 
television industry and to analyze the market structure conditions that 
may affect competition in the market for the delivery of video 
programming. Information is requested also to help the Commission 
evaluate the effects on competition of the Commission's program access, 
program carriage, channel occupancy, and leased commercial access 
rules.
    8. The NOI also requests comment on the current effects of actual 
or potential competition in local markets where consumers have, or soon 
will have, a choice between MVPDs. The Commission further requests 
information on any existing or potential impediments to entry into the 
market for the delivery of video programming. Finally, comment is 
sought on the outlook for competition in the future.

Administrative Matters

Ex Parte

    9. There are no ex parte or disclosure requirements applicable to 
this proceeding pursuant to 47 CFR Sec. 1.1204(a)(4).

Comment Dates

    10. Pursuant to applicable procedures set forth in Sections 1.415 
and 1.419 of the Commission's Rules, 47 CFR Secs. 1.415 and 1.419, 
interested parties may file comments on or before July 19, 1996, and 
reply comments on or before

[[Page 34410]]

August 19, 1996. 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 ten 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, N.W., Washington, 
D.C. 20554.

Ordering Clauses

    11. This Notice of Inquiry is issued pursuant to authority 
contained in Sections 4(i), 4(j), 403 and 628(g) of the Communications 
Act of 1934, as amended.

List of Subjects in 47 CFR Part 76

    Cable television.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 96-16817 Filed 7-1-96; 8:45 am]
BILLING CODE 6712-01-P