[Federal Register Volume 67, Number 83 (Tuesday, April 30, 2002)]
[Notices]
[Pages 21216-21217]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-10586]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Launching Our Communities' Access to Local Television Act of 2000

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of inquiry.

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SUMMARY: In light of the rapid changes occurring in the communications 
and telecommunications industries, the Rural Utilities Service (RUS) is 
seeking additional information from the public in its efforts to 
implement the provisions of ``Launching Our Communities'' Access to 
Local Television Act of 2000,'' Public Law 106-553, 47 U.S.C. 1101-1109 
(the ``Act''). The Act provides for a guaranteed loan program intended 
to facilitate access, on a technologically neutral basis, to signals of 
local television stations for households located in nonserved areas and 
underserved areas. The Act also requires the Administrator of RUS to 
prescribe regulations to implement the Act. RUS is issuing this notice 
of inquiry to assess the current interest of eligible entities in 
pursuing applications for funding under the Act, taking into account 
the following:
    (1) Recent commercial and regulatory developments, including 
pending industry mergers;
    (2) The impacts of new technology capable of providing local TV 
signals;
    (3) The effects of the Satellite Home Viewer Improvement Act, 
Public Law 106-113, Eg. 47 U.S.C. 325, 338-9 (``SHVIA''), and
    (4) The ability to accomplish the Act objectives utilizing current 
appropriations.
    RUS believes it is beneficial to consider as many options as 
possible before prescribing regulations and this notice of inquiry will 
provide RUS with the most current industry information to consider in 
the drafting of those regulations.

DATES: Interested parties must submit written comments by May 30, 2002.

ADDRESSES: Submit written comments to Roberta D. Purcell, Assistant 
Administrator, Telecommunications Program, Rural Utilities Service, 
United States Department of Agriculture, 1400 Independence Ave., SW., 
stop 1590, room 4056-S, Washington, DC 20250-1590. RUS requires, in 
hard copy, a signed original and 3 copies of all comments (7 CFR 
1700.4). Comments will be available for public inspection during normal 
business hours (7 CFR part 1).

FOR FURTHER INFORMATION CONTACT: Roberta D. Purcell, Assistant 
Administrator, Telecommunications Program, Rural Utilities Service, 
United States Department of Agriculture, 1400 Independence Avenue, SW., 
stop 1590, room 4056-S, Washington, DC 20250-1590. Phone: 202-720-9554. 
Fax: 202-720-0810. E-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    On December 21, 2000, the ``Launching Our Communities'' Access to 
Local Television Act of 2000,'' was signed into law as Public Law 106-
553. The Act provides for the establishment of the Local Television 
Loan Guarantee Board (the ``Board''), which consists of the Secretaries 
of Agriculture, Treasury, and Commerce, and the Chair of the Board of 
Governors of the Federal Reserve System, or their designees. The Board 
may approve loan guarantees up to 80 percent of $1.25 billion in loans, 
to facilitate access, on a technologically neutral basis, to signals of 
local television stations for households located in nonserved areas and 
underserved areas. The Act stipulates that, among other provisions, the 
Administrator of RUS shall prescribe regulations to implement the Act 
and shall issue and otherwise administer loan guarantees approved by 
the Board. No funds were appropriated for the Act for fiscal year (FY) 
2001; hence, RUS was not authorized to draft and implement regulations 
until program funds were appropriated. The Agriculture FY 2002 
Appropriations bill, signed into law on November 28, 2001, included 
$20,000,000 for the cost of guaranteed loans and $2,000,000 for 
salaries and administrative expenses to implement the Act. Under the 
provisions of the Appropriations Act, $258 million in loan guarantee 
authority is available for FY 2002.
    As noted above, regulations must be prescribed on a 
``technologically neutral'' basis. However, the $258 million 
appropriated for loan guarantees may limit the type of technology that 
can be financed. As the Act also contains several specialized technical 
and business provisions, RUS encourages interested parties to review 
the Act in its entirety on the RUS website at: http://www.usda.gov/rus/telecom/initiatives/initiatives.htm.

Request for Comment

    RUS is requesting comment and discussion on the following topics:
    (1) RUS seeks comment on recent changes in the industry that could 
affect the delivery of local TV signals to households located in 
nonserved areas and underserved areas. These changes include, among 
others, the mergers and acquisitions of cable, telephony, and Internet 
service providers. One developing factor that may have a significant 
impact on the provision of local TV signals to markets is the recently 
proposed merger of the two major direct broadcast satellite (DBS) 
providers. The Act could be noticeably affected, and its goal virtually 
fulfilled, if certain requirements are imposed on the survivor. In a 
February 26, 2002, joint press release, the companies involved in the 
merger proposed to offer every consumer in the continental United 
States, Alaska, and Hawaii access to satellite-delivered local 
television signals, thus covering all designated market areas in the 
United States.
    (2) RUS is aware that new technologies have emerged and continue to 
develop that could provide local TV signals. RUS is seeking additional 
information on those technologies and, specifically, technologies that 
would be the most cost effective method of delivering local TV signals 
to the largest number of nonserved and underserved rural residences not 
located in the top 40 designated market areas (as that term is defined 
in 17 U.S.C. 1226(j)).
    (3) In addition to the information solicited by the preceding 
question, RUS also seeks comments regarding what kinds of technology, 
if not the

[[Page 21217]]

same, may be utilized to deliver, and the extent to which rural 
households located in nonserved and underserved areas could receive, 
local TV signals using the $258 million authorized for this program 
this fiscal year only.
    (4) RUS is interested in comments from rural TV subscribers, who do 
not reside in major market TV station areas, concerning what affect, if 
any, recent Satellite Home Viewer Improvement Act (SHVIA) ``carry one, 
carry all'' provisions, effective January 1, 2002, and any other 
regulatory provisions or new products in the marketplace are having on 
their local TV viewing.
    RUS invites interested parties including, but are not limited to, 
financial and lending institutions, equipment providers, facility and 
other TV broadcast providers, cable and satellite providers, trade 
associations, consumer groups, and individuals to provide RUS, in 
writing, any information or analyses they believe to be relevant to the 
issues discussed in this Notice and to the implementation of the loan 
guarantee program.

    Dated: April 24, 2002.
Hilda Gay Legg,
Administrator, Rural Utilities Service.
[FR Doc. 02-10586 Filed 4-29-02; 8:45 am]
BILLING CODE 3410-15-P