[Federal Register Volume 63, Number 68 (Thursday, April 9, 1998)]
[Rules and Regulations]
[Pages 17333-17334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9351]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 76
[CS Docket No. 96-56; FCC 98-47]
Cable Television Antitrafficking, Network Television, and MMDS/
SMATV Cross Ownership
AGENCY: Federal Communications Commission.
ACTION: Final rule; petition for reconsideration.
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SUMMARY: The Commission has denied a petition for reconsideration
concerning its rules on television broadcast station network and cable
television system cross ownership. On March 15, 1996, the Commission
deleted the broadcast network/cable television ownership rule in order
to conform the rules with statutory changes. In response to this
decision, a petition for reconsideration was filed contending that the
Commission was obligated to provide notice and an opportunity to
participate in the rulemaking proceeding. In responding to this
reconsideration petition, the Commission determined that because the
rule changes merely conformed the rules to the statute, notice
requirements did not apply.
FOR FURTHER INFORMATION CONTACT: Nancy Stevenson, Cable Services
Bureau, (202) 418-7200.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's Order
on
[[Page 17334]]
Reconsideration, CS Docket No. 96-56, adopted March 25, 1998, and
released March 27, 1998. 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, 1231 20th Street,
NW, Washington, D.C. 20036.
Synopsis of the Order on Reconsideration
1. In the Order on Reconsideration, we address a petition filed by
Network Affiliated Stations Alliance (``NASA'') with respect to the
Commission's implementation of the television broadcast network and
cable television cross ownership provisions of the Telecommunications
Act of 1996 (``1996 Act'') in the Order Implementing sections 202(f),
202(i) and 301(i) of the Telecommunications Act of 1996 (``Order``). In
the Order on Reconsideration, NASA's petition is denied.
2. Section 202(f)(1) of the 1996 Act directs the Commission to
revise Sec. 76.501 of its regulations (47 CFR 76.501) to permit a
person or entity to own or control a network of broadcast stations and
a cable system. Section 202(f)(2) further provides that the Commission
shall revise such regulations if necessary to ensure carriage, channel
positioning, and nondiscriminatory treatment of nonaffiliated broadcast
stations by a cable system.
3. In the March 15, 1996 Order, 61 FR 15387, April 8, 1996, the
Commission amended its cable television ownership rules under
Sec. 76.501 to conform them to changes mandated by the 1996 Act. Our
rules have been modified to allow a person or entity to own or control
a network of broadcast stations and a cable system. Although the Order
did not implement additional rule changes regarding safeguards for
nonaffiliated broadcast stations, it explained that the Commission
would monitor the response to the rule changes to determine whether
additional rules were necessary. Because the rule changes made pursuant
to the 1996 Act merely conformed the rules to the statute, the
Commission determined that it had good cause for concluding that the
notice and comment provisions of the Administrative Procedure Act
(``APA'') were not necessary.
4. NASA filed a petition for reconsideration of our Order. NASA
contends that the Commission was obligated to provide notice and an
opportunity to participate in the rulemaking proceeding.
5. We recognize that Congress, in section 202(f)(2) of the 1996
Act, directed the Commission to revise our rules, if necessary, to
protect against possible anticompetitive behavior. Nothing in section
202(f)(2) mandates that the Commission withhold implementing the
explicit directive of the statute. Section 202(f)(1) requires the
Commission to revise its rules to allow network-cable cross ownership.
It does not condition the implementation of this mandate on any
particular finding or Commission rulemaking. The Commission had no
discretion to forgo or to postpone this legislative directive. To the
extent NASA seeks reconsideration of our decision to conform our rules
to the statute, its petition is denied. 6. We also reject NASA's
assertion that the Commission is obligated under the APA to conduct a
formal rulemaking to determine whether safeguards are necessary at this
time. We note that the explicit language of section 202(f)(2) of the
1996 Act calls for revision of our rules ``if necessary'' to ensure
nondiscriminatory treatment of nonaffiliated broadcast stations by
cable systems. The discretion to render the determination of necessity
is placed squarely with the Commission and we have determined at this
point that safeguards are not needed. Congress, in passing the 1996
Act, did not conclude that safeguards were immediately necessary and,
as the Commission merely conforms its rules to the new statute, we
reach a similar conclusion and elect to monitor the situation rather
than to launch a full proceeding on this issue at this time.
Combinations between major networks and cable operators have not yet
been formed, nor does the record reflect specific examples of potential
problems. Accordingly, we have concluded that safeguards are not
necessary at this time. We do not believe this conclusion violates the
APA. Although notice and comment is required when the Commission
promulgates rules that establish or impose new obligations on private
parties, our decision that safeguards are unnecessary at this time does
not impose any additional obligations.
List of Subjects in 47 CFR Part 76
Administrative practice and procedure, Cable television.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98-9351 Filed 4-8-98; 8:45 am]
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