[Federal Register Volume 64, Number 105 (Wednesday, June 2, 1999)]
[Rules and Regulations]
[Pages 29599-29601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13915]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 76

[CS Docket No. 97-80; FCC 99-95]


Commercial Availability of Navigation Devices

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This document implements rules to achieve commercial 
availability of set top boxes and other consumer equipment used to 
receive video signals and other services. Section 629 of the 
Communications Act directed the FCC to create rules that allow 
consumers to obtain set top boxes from commercial sources other than 
their multichannel video programming distributor.

DATES: Effective July 2, 1999.

ADDRESSES: Federal Communications Commission, 445 12th Street, SW, 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Thomas Horan, Cable Services Bureau, 
(202) 418-7200.

SUPPLEMENTARY INFORMATION:
    1. The Order on Reconsideration addresses the petitions seeking 
reconsideration of decisions in the Report and Order in CS Docket No. 
97-80, 63 FR 38089 (July 15, 1999). The Report and Order adopted rules 
to implement Section 629 of the Communications Act of 1934, as amended, 
47 U.S.C. 549.
    2. Section 629 instructs the FCC to promote the commercial 
availability to consumers of navigation devices, that is, equipment 
used to access multichannel video programming and other services 
offered over multichannel video programming systems. In the Report and 
Order, the FCC adopted rules to implement Section 629. Five petitions 
requesting reconsideration or clarification of the rules were filed.
    3. Application of Rules to Analog Equipment. On reconsideration, 
the Commission will defer application of the requirement that 
multichannel video programming distributors (MVPDs) provide a 
separation of security from equipment that performs other functions for 
devices that (1) employ only an analog conditional access mechanism; 
(2) are capable only of providing access to analog video programming 
offered over an MVPD system and (3) do not provide access to any 
digital transmission of MVPD programming or any other digital service 
through any receiving, decoding, conditional access, or other function, 
including any conversion of digital programming or services to an 
analog format.
    4. Integrated Boxes. The Commission will maintain the prohibition 
on MVPDs providing new integrated equipment combining both security and 
non-security functions after January 1, 2005. In the year 2000, once 
non-integrated equipment is available, the Commission will assess the 
state of the market to determine whether the designated time frame is 
appropriate.
    5. Application of Rules to Various MVPDs. The Commission reiterates 
its view that there is justification for not applying the rule 
requiring separation of security functions to MVPDs that support 
navigation devices that are portable throughout the continental United 
States, and are available from retail outlets and other vendors. 
Similarly, operators of open video systems are exempt from the 
requirements of Section 629.
    6. CableLabs Standards Process. The Commission expects that the 
standards developed by CableLabs through the OpenCable process will be 
sufficient for manufacturers and designers unaffiliated with MVPDs to 
build devices that can be sold through national retail distribution. 
The Commission will continue to monitor the OpenCable project to ensure 
that the standards are specific enough and that a wide range of 
interests continue to have an opportunity to participate in OpenCable.
    7. Wireless Cable Antennas and Downconverters. The Commission finds 
that equipment used to access wireless cable service cannot be excluded 
from the definition of navigation devices in all circumstances, nor is 
a separate demarcation point for attachment of navigation devices 
required.
    8. Permitted Functions of Separated Conditional Access Equipment. 
The Order on Reconsideration clarifies that the components of the 
security module should closely be related to the security functions of 
the navigation device, and enhance, rather than assume, a function of 
the host device.
    9. Interface Information. The Order on Reconsideration clarifies 
that 47 CFR 76.1205 requires the release of information sufficient to 
allow for interaction between the multichannel video programming system 
and the navigation device through the separated security device. This 
information must allow manufacturers and retailers the ability to 
provide compatible equipment. Problems regarding development of 
interface specifications brought to the Commission attention will be 
addressed in the review in 2000.

[[Page 29600]]

Final Regulatory Flexibility Analysis

    10. As required by the Regulatory Flexibility Act (RFA), the 
Commission included a Final Regulatory Flexibility Analysis (FRFA) in 
the Report and Order. While no petitioners seeking reconsideration of 
the Report and Order raised issues directly related to the FRFA, the 
Commission is amending the rules in a manner that may affect small 
entities. Accordingly, this Supplemental Regulatory Flexibility 
Analysis (``Supplemental FRFA'') addresses those amendments and 
conforms to the RFA.
    11. Need for Action and Objectives of the Rules. The 1996 Act added 
a new Section 629 to the Communications Act of 1934, as amended, that 
requires the Commission to develop rules to assure competitive 
availability of navigation devices used in conjunction with MVPD. The 
statutory objective of Section 629 is assure that navigation devices 
used by consumers to access a particular MVPD's programming are 
available to consumers from manufactures, retailers and other vendors 
not affiliated with that MVPD.
    12. Summary of Significant Issues Regarding FRFA Raised in 
Petitions for Reconsideration. No parties address the FRFA in their 
petitions for reconsideration, or any subsequent filings.
    13. Description and Estimate of the Number of Small Entities to 
Which the Rules Will Apply. The RFA directs the Commission to provide a 
description of and, where feasible, an estimate of the number of small 
entities that might be affected by the rules here adopted. The RFA 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' In addition, the term ``small business'' 
has the same meaning as the term ``small business concern'' under the 
Small Business Act. Under the Small Business Act, a small business 
concern is one which: (a) is independently owned and operated; (b) is 
not dominant in its field of operation; and (c) satisfies any 
additional criteria established by the SA.
    14. As noted, a FRFA was incorporated into the Report and Order. In 
that analysis, the Commission described in detail the various small 
business entities that may be affected by these rules. Those entities 
consist of cable systems, multipoint multichannel distribution systems, 
direct broadcast satellites, home satellite dish, satellite master 
antenna television, local multipoint distribution systems, small 
manufacturers, electronic equipment manufacturers, computer 
manufacturers, and small retailers. In this present Order on 
Reconsideration, the Commission addresses petitions for reconsideration 
filed in response to the Report and Order. In this Supplemental FRFA, 
the Commission incorporates by reference the description and estimate 
of the number of small entities from the FRFA in this proceeding.
    15. Description of Reporting, Recordkeeping and Other Compliance 
Requirements. The rules adopted in the Report and Order require MVPDs 
to make available upon request technical information concerning 
interface parameters. The Commission believes, however, that this 
requirement would not necessitate any additional professional, 
engineering, or customer service skills beyond those already utilized 
in the ordinary course of business by MVPDs. The rules adopted on 
reconsideration do not affect this requirement.
    16. Steps Taken to Minimize Significant Economic Impact On Small 
Entities and Significant Alternatives Considered. In the Report and 
Order, the Commission stated the belief that its rules, implemented to 
assure commercial availability of navigation devices, would have the 
result of opening up to small retailers the market to sell or lease 
navigation devices to MVPD subscribers. The rules also consider 
situations and offer relief where the commercial availability of 
navigation devices performing conditional access functions could 
adversely impact an MVPD. An MVPD is not subject to the rules requiring 
the commercial availability of navigation devices if: (1) it is not 
reasonably feasible to separate conditional access functions from other 
functions; or (2) it is not reasonably feasible to prevent the 
unauthorized reception of service by subscribers using navigation 
devices obtained from other sources. In the Order on Reconsideration, 
an additional subpart of a rule is adopted to defer the requirement 
that an MVPD offer equipment that incorporates only the conditional 
access functions of device if a navigation device (1) employs 
conditional access mechanisms only to access analog video programming; 
(2) is capable only of providing access to analog video programming 
offered over a multichannel video programming distribution system; and 
(3) does not provide access to any digital transmission of multichannel 
video programming or any other digital service through any receiving, 
decoding, conditional access, or other function, including any 
conversion of digital programming or service to an analog format. The 
deferral of analog boxes at this time is to allow the market 
participants to focus on digital devices.
    17. It is ordered that the Petitions for Reconsideration filed by 
the Consumer Electronics Manufacturers Association, the National Cable 
Television Association, the Telecommunication Industry Association, 
Time Warner Entertainment Company L.P., and the Wireless Cable 
Association International, Inc. are granted to the extent discussed 
herein, and are otherwise denied.
    18. It is ordered that, pursuant to authority found in sections 
4(i), 303(r) and 629 of the Communications Act of 1934, as amended, 47 
U.S.C. 154(i), 303(r), and 549, the Commission's rules are hereby 
amended as set forth below.
    19. It is further ordered that the rules as amended shall become 
effective upon July 2, 1999.
    20. It is further ordered that the Commission's Office of Public 
Affairs, Reference Operations Division, shall send a copy of this 
Report and Order, including the Final Regulatory Flexibility Analysis, 
to the Chief Counsel for Advocacy of the Small Business Administration.

List of Subjects in 47 CFR Part 76

    Cable television.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 76 as follows:

PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE

    1. The authority citation for part 76 continues to read as follows:

    Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 303, 303a, 
307, 308, 309, 312, 315, 317, 325, 503, 521, 522, 531, 532, 533, 
534, 535, 536, 537, 543, 544, 544a, 545, 548, 549, 552, 554, 556, 
558, 560, 561, 571, 572, 573.

    2. Section 76.1204 is amended by adding paragraph (f) to read as 
follows:


Sec. 76.1204  Availability of equipment performing conditional access 
or security functions.

* * * * *
    (f) Paragraphs (a)(1), (b), and (c) of this section shall not apply 
to the provision of any navigation device that:
    (1) Employs conditional access mechanisms only to access analog 
video programming;
    (2) Is capable only of providing access to analog video programming 
offered over a multichannel video programming distribution system; and

[[Page 29601]]

    (3) Does not provide access to any digital transmission of 
multichannel video programming or any other digital service through any 
receiving, decoding, conditional access, or other function, including 
any conversion of digital programming or service to an analog format.

[FR Doc. 99-13915 Filed 6-1-99; 8:45 am]
BILLING CODE 6712-01-P