[Federal Register Volume 68, Number 116 (Tuesday, June 17, 2003)]
[Rules and Regulations]
[Pages 35818-35822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-15187]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 76

[CS Docket No. 97-80; FCC 03-89]


Commercial Availability of Navigation Devices

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This document amends the Commission's rules to extend the 
January 1, 2005 ban on integrated navigation devices until July 1, 
2006. This extension is needed since the state of the navigation 
devices market will be significantly impacted by ongoing industry 
negotiations for a bidirectional specification for digital cable 
receivers and products, rendering compliance with the existing January 
1, 2005 ban impracticable. This action is taken pursuant to Section 629 
of the Communications Act which directs the Commission to adopt 
regulations to assure the commercial availability of navigation devices 
equipment used by consumers to access services from multichannel video 
programming distributors.

DATES: Effective July 17, 2003.

FOR FURTHER INFORMATION CONTACT: Susan Mort, 202-418-1043.

SUPPLEMENTARY INFORMATION:
    1. In the Order and Further Notice of Proposed Rulemaking adopted 
April 14, 2003 and released April 25, 2003, we amend the Commission's 
Rules to extend the January 1, 2005 ban on integrated navigation 
devices until July 1, 2006. A synopsis of the Order follows.

Synopsis of the Order

    2. Section 629 of the Communications Act directs the Commission to 
adopt regulations to assure the commercial availability of navigation 
devices equipment used by consumers to access services from 
multichannel video programming distributors (``MVPDs''). Pursuant to 
this directive, the Commission issued the Report and Order in the 
above-captioned proceeding establishing, inter alia, a January 1, 2005, 
deadline for MVPDs to cease deploying new navigation devices that 
perform both conditional access functions and other functions in a 
single integrated device. The Commission adopted the requirement to 
separate the conditional access function from the basic navigation 
device (the ``host device'') in order to permit unaffiliated 
manufacturers, retailers, and other vendors to commercially market host 
devices while allowing MVPDs to retain control over their system 
security. The Commission later issued a Further Notice of Proposed 
Rulemaking and Declaratory Ruling (``Further Notice and Declaratory 
Ruling''), 65 FR 58255, September 28, 2000, that sought comment on the 
effectiveness of the Commission's navigation device rules, including 
the 2005 prohibition on integrated devices.
    3. Since Section 629 and the Commission's rules were adopted, the 
cable and consumer electronics industries have made, and continue to 
make, significant progress in the development of technical standards in 
this area. However, the commercial market for navigation devices used 
in conjunction with the distribution of digital video programming 
remains in its infancy. In an effort to spur the transition to digital 
television, the cable and consumer electronics industry recently 
reached a Memorandum of Understanding (``MOU'') on a cable 
compatibility standard for a unidirectional digital cable television 
receiver with host device functionality, as well as other 
unidirectional digital cable products. This standard would allow 
consumers to directly attach their DTV receivers to cable systems using 
a point of deployment (``POD'') module and receive one-way cable 
television services without the need for an external navigation device. 
The Commission issued a Further Notice of Proposed Rulemaking 
(``FNPRM''), 68 FR 2278, January 16, 2003, seeking public comment on 
the MOU issued in the above-captioned proceeding and in the 
Compatibility Between Cable Systems and Consumer Electronics Equipment 
proceeding.
    4. In its earlier Further Notice and Declaratory Ruling, the 
Commission had already sought comment, inter alia, on whether the 2005 
date for the phase-out of integrated boxes remains appropriate, on 
what, if any, incentives the requirement creates for the development of 
a commercial retail market for navigation devices, and on the economic 
impacts and costs associated with the requirement. In response, the 
cable industry and set-top box manufacturers generally urged that the 
2005 deadline should be eliminated in favor of the continued offering 
of integrated navigation devices for rent to consumers. Other equipment 
manufacturing and retail interests urged that the date should be 
advanced to ensure the timely development of a retail market in host 
devices. Given the equipment ordering and manufacturing cycles 
involved, it is necessary at this point to provide guidance as to the 
Commission's expectations with respect to the 2005 date. Other issues 
raised in the Further Notice and Declaratory Ruling will be addressed 
separately at a later time.
    5. Commission action in response to the FNPRM could have a 
significant impact upon the development of a commercial market in 
separate host

[[Page 35819]]

devices. In addition, the cable and consumer electronic industries are 
in the midst of negotiations on specifications for bidirectional 
digital cable receivers and products which would permit the receipt of 
advanced cable television services by direct connection to cable 
systems. This ongoing process, which we are hopeful will produce 
results in the near term, could impact the development of technical 
specifications relating to host devices and POD modules. In light of 
the ongoing notice and comment cycle relating to the FNPRM, the 
evolving nature of technical specifications relating to navigation 
devices, and the imminent business ordering and manufacturing cycles 
facing MVPDs and consumer electronics manufacturers in anticipation of 
the pending 2005 prohibition, we hereby extend the deadline concerning 
the prohibition on integrated devices until July 1, 2006.
    6. This eighteen month extension should provide adequate time for 
the parties to complete their ongoing negotiations and for the 
Commission to make a more knowledgeable decision as to any further 
changes in the compliance date. By January 1, 2005, the Commission 
shall complete a reassessment of the state of the navigation devices 
market and determine whether the designated time frame remains 
appropriate or whether the ban on integrated devices will no longer be 
necessary. In the interim, the cable and consumer electronics 
industries are requested to provide the Commission with status reports 
on their negotiations on specifications for bidirectional digital cable 
receivers and products at 90, 180 and 270 day intervals following 
release of this Order. Following submission of the last status report 
to the Commission, the public shall have thirty days to submit comments 
on the status reports and whether any further changes in the phase-out 
date for integrated devices are warranted.
    7. Based upon the record in the above-captioned proceeding and 
ongoing industry developments, we have concluded that a limited 
deferral of the date is consistent with the ultimate objectives of this 
proceeding and our statutory directive to act ``in consultation with 
appropriate industry standard-setting organizations.'' We are not 
persuaded at this point to eliminate the prohibition on integrated 
devices since future developments in both the marketplace and ongoing 
industry negotiations may yet dictate a need for this requirement in 
order to achieve the objectives of Section 629. However, the conclusion 
of the unidirectional MOU, as well as the ongoing negotiations towards 
a bidirectional agreement, do reflect progress towards the development 
of a retail market for consumer electronics equipment with navigation 
device functionality. As such, we do not believe that advancing the 
prohibition date, as previously suggested by a number of equipment 
manufacturing and retail interests, is necessary to further these 
objectives or would provide sufficient lead time for ordering and 
manufacturing prior to completion of the next phase of the 
standardization process.
    8. Authority. This document is issued pursuant to authority 
contained in Sections 4(i), 303(r), and 629 of the Communications Act 
of 1934, as amended.
    9. Accessibility Information. Accessible formats of this Order 
(computer diskettes, large print, audio recording and Braille) are 
available to persons with disabilities by contacting Brian Millin, of 
the Consumer & Governmental Affairs Bureau, at (202) 418-7426, TTY 
(202) 418-7365, or at [email protected].
    10. Paperwork Reduction Act of 1995 Analysis. This Order does not 
contain information collection(s) subject to the Paperwork Reduction 
Act of 1995 (``PRA''), Public Law 104-13.
    11. Regulatory Flexibility Act. As required by the Regulatory 
Flexibility Act, the Commission has prepared a Final Regulatory 
Flexibility Analysis (``FRFA'') relating to this Order. The FRFA is set 
forth further.
    12. Accordingly, part 76 of the Commission's rules, set forth in 
Title 47 of the Code of Federal Regulations, is amended.

Final Regulatory Flexibility Analysis

    13. As required by the Regulatory Flexibility Act of 1980, as 
amended (``RFA'') an Initial Regulatory Flexibility Analysis (``IRFA'') 
was incorporated in the Further Notice of Proposed Rulemaking and 
Declaratory Ruling (``Further Notice and Declaratory Ruling'') The 
Commission sought written public comment on the proposals in the 
Further Notice and Declaratory Ruling, including comment on the IRFA. 
No comments were received on the IRFA. This present Final Regulatory 
Flexibility Analysis (``FRFA'') conforms to the RFA.
    15. Need for, and Objectives of, the Order. Section 629 of the 
Communications Act of 1934, as amended, requires the Commission to 
develop rules to assure competitive availability of navigation devices 
used in conjunction with services provided by multichannel video 
programming distributors (``MVPDs''). The statutory objective of 
Section 629 is to assure that navigation devices used by consumers to 
access a particular MVPD's programming are available to consumers from 
manufacturers, retailers and other vendors not affiliated with that 
MVPD. To this end, the Commission adopted a January 1, 2005, deadline 
for MVPDs to cease deploying new navigation devices that perform both 
conditional access functions and other functions in a single integrated 
device. Requiring MVPDs to separate the conditional access function 
from the basic navigation device (the ``host device'') was intended to 
permit unaffiliated manufacturers, retailers, and other vendors to 
commercially market host devices while allowing MVPDs to retain control 
over their system security. In the Further Notice and Declaratory 
Ruling, the Commission indicated that it would reassess the need for 
the 2005 separation deadline in light of the evolving marketplace for 
navigation devices. In response, the cable industry and set-top box 
manufacturers generally urged that the 2005 deadline should be 
eliminated in favor of the continued offering of integrated navigation 
devices for rent to consumers. Other equipment manufacturing and retail 
interests urged that the date should be advanced to ensure the timely 
development of a retail market in host devices. Since the Further 
Notice and Declaratory Ruling was issued, the cable and consumer 
electronics industries have reached a Memorandum of Understanding 
(``MOU'') on a cable compatibility standard for a unidirectional 
digital cable television receiver with host device functionality, as 
well as other unidirectional digital cable products. This standard, 
which is the subject of a pending Further Notice of Proposed Rulemaking 
(``FNPRM''), would allow consumers to directly attach their DTV 
receivers to cable systems using a point of deployment (``POD'') module 
and receive one-way cable television services without the need for an 
external navigation device. The cable and consumer electronic 
industries are also in the midst of negotiations on specifications for 
bidirectional digital cable receivers and products which would permit 
the receipt of advanced cable television services by direct connection 
to cable systems. This ongoing process, which may produce results in 
the near term, could impact the development of technical specifications 
relating to host devices and POD modules. In light of the ongoing 
notice and comment cycle relating to the FNPRM, the evolving

[[Page 35820]]

nature of technical specifications relating to navigation devices, and 
the imminent business ordering and manufacturing cycles facing MVPDs 
and consumer electronics manufacturers in anticipation of the pending 
2005 prohibition, the present Order extends the prohibition on 
integrated devices until July 1, 2006. This limited deferral of the 
prohibition date is consistent with the ultimate objectives of this 
proceeding and our statutory directive to act ``in consultation with 
appropriate industry standard-setting organizations.''
    16. Summary of Significant Issues Raised by Public Comments in 
Response to the IRFA. There were no comments filed that specifically 
addressed the rules and policies proposed in the IRFA.
    17. Description and Estimate of the Number of Small Entities to 
Which 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 will be affected by the rules adopted herein. The RFA 
generally 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. A ``small business concern'' is one which: (1) Is 
independently owned and operated; (2) is not dominant in its field of 
operation; and (3) satisfies any additional criteria established by the 
Small Business Administration (``SBA'').
    18. Cable and Other Program Distribution. The SBA has developed a 
small business size standard for cable and other program distribution 
services, which includes all such companies generating $12.5 million or 
less in revenue annually. This category includes, among others, cable 
operators, direct broadcast satellite (``DBS'') services, home 
satellite dish (``HSD'') services, multipoint distribution services 
(``MDS''), multichannel multipoint distribution service (``MMDS''), 
Instructional Television Fixed Service (``ITFS''), local multipoint 
distribution service (``LMDS''), satellite master antenna television 
(``SMATV'') systems, and open video systems (``OVS''). According to the 
Census Bureau data, there are 1,311 total cable and other pay 
television service firms that operate throughout the year of which 
1,180 have less than $10 million in revenue. We address below each 
service individually to provide a more precise estimate of small 
entities.
    19. Cable Operators. The Commission has developed, with SBA's 
approval, our own definition of a small cable system operator for the 
purposes of rate regulation. Under the Commission's rules, a ``small 
cable company'' is one serving fewer than 400,000 subscribers 
nationwide. We last estimated that there were 1,439 cable operators 
that qualified as small cable companies. Since then, some of those 
companies may have grown to serve over 400,000 subscribers, and others 
may have been involved in transactions that caused them to be combined 
with other cable operators. Consequently, we estimate that there are 
fewer than 1,439 small entity cable system operators that may be 
affected by our action.
    20. The Communications Act, as amended, also contains a size 
standard for a small cable system operator, which is ``a cable operator 
that, directly or through an affiliate, serves in the aggregate fewer 
than 1% of all subscribers in the United States and is not affiliated 
with any entity or entities whose gross annual revenues in the 
aggregate exceed $250,000,000.'' The Commission has determined that 
there are 68,500,000 subscribers in the United States. Therefore, an 
operator serving fewer than 685,000 subscribers shall be deemed a small 
operator if its annual revenues, when combined with the total annual 
revenues of all of its affiliates, do not exceed $250 million in the 
aggregate. Based on available data, we find that the number of cable 
operators serving 685,000 subscribers or less totals approximately 
1,450. Although it seems certain that some of these cable system 
operators are affiliated with entities whose gross annual revenues 
exceed $250,000,000, we are unable at this time to estimate with 
greater precision the number of cable system operators that would 
qualify as small cable operators under the definition in the 
Communications Act.
    21. Direct Broadcast Satellite (``DBS'') Service. Because DBS 
provides subscription services, DBS falls within the SBA-recognized 
definition of cable and other program distribution services. This 
definition provides that a small entity is one with $12.5 million or 
less in annual receipts. There are four licensees of DBS services under 
part 100 of the Commission's Rules. Three of those licensees are 
currently operational. Two of the licensees that are operational have 
annual revenues that may be in excess of the threshold for a small 
business. The Commission, however, does not collect annual revenue data 
for DBS and, therefore, is unable to ascertain the number of small DBS 
licensees that could be impacted by these proposed rules. DBS service 
requires a great investment of capital for operation, and we 
acknowledge, despite the absence of specific data on this point, that 
there are entrants in this field that may not yet have generated $12.5 
million in annual receipts, and therefore may be categorized as a small 
business, if independently owned and operated.
    22. Home Satellite Dish (``HSD'') Service. Because HSD provides 
subscription services, HSD falls within the SBA-recognized definition 
of cable and other program distribution services. This definition 
provides that a small entity is one with $12.5 million or less in 
annual receipts. The market for HSD service is difficult to quantify. 
Indeed, the service itself bears little resemblance to other MVPDs. HSD 
owners have access to more than 265 channels of programming placed on 
C-band satellites by programmers for receipt and distribution by MVPDs, 
of which 115 channels are scrambled and approximately 150 are 
unscrambled. HSD owners can watch unscrambled channels without paying a 
subscription fee. To receive scrambled channels, however, an HSD owner 
must purchase an integrated receiver-decoder from an equipment dealer 
and pay a subscription fee to an HSD programming package. Thus, HSD 
users include: (1) Viewers who subscribe to a packaged programming 
service, which affords them access to most of the same programming 
provided to subscribers of other MVPDs; (2) viewers who receive only 
non-subscription programming; and (3) viewers who receive satellite 
programming services illegally without subscribing. Because scrambled 
packages of programming are most specifically intended for retail 
consumers, these are the services most relevant to this discussion.
    23. Multipoint Distribution Service (``MDS''), Multichannel 
Multipoint Distribution Service (``MMDS'') Instructional Television 
Fixed Service (``ITFS'') and Local Multipoint Distribution Service 
(``LMDS''). MMDS systems, often referred to as ``wireless cable,'' 
transmit video programming to subscribers using the microwave 
frequencies of the MDS and ITFS. LMDS is a fixed broadband point-to-
multipoint microwave service that provides for two-way video 
telecommunications.
    24. In connection with the 1996 MDS auction, the Commission defined 
small businesses as entities that had annual average gross revenues of 
less than $40 million in the previous three calendar years. This 
definition of a small entity in the context of MDS auctions has been 
approved by the SBA. The MDS auctions resulted in 67 successful

[[Page 35821]]

bidders obtaining licensing opportunities for 493 Basic Trading Areas 
(``BTAs''). Of the 67 auction winners, 61 met the definition of a small 
business. MDS also includes licensees of stations authorized prior to 
the auction. As noted, the SBA has developed a definition of small 
entities for pay television services, which includes all such companies 
generating $12.5 million or less in annual receipts. This definition 
includes multipoint distribution services, and thus applies to MDS 
licensees and wireless cable operators that did not participate in the 
MDS auction. Information available to us indicates that there are 
approximately 850 of these licensees and operators that do not generate 
revenue in excess of $12.5 million annually. Therefore, for purposes of 
this analysis, we find there are approximately 850 small MDS providers 
as defined by the SBA and the Commission's auction rules.
    25. The SBA definition of small entities for cable and other 
program distribution services, which includes such companies generating 
$12.5 million in annual receipts, seems reasonably applicable to ITFS. 
There are presently 2,032 ITFS licensees. All but 100 of these licenses 
are held by educational institutions. Educational institutions are 
included in the definition of a small business. However, we do not 
collect annual revenue data for ITFS licensees, and are not able to 
ascertain how many of the 100 non-educational licensees would be 
categorized as small under the SBA definition. Thus, we tentatively 
conclude that at least 1,932 licensees are small businesses.
    26. Additionally, the auction of the 1,030 LMDS licenses began on 
February 18, 1998, and closed on March 25, 1998. The Commission defined 
``small entity'' for LMDS licenses as an entity that has average gross 
revenues of less than $40 million in the three previous calendar years. 
An additional classification for ``very small business'' was added and 
is defined as an entity that, together with its affiliates, has average 
gross revenues of not more than $15 million for the preceding calendar 
years. These regulations defining ``small entity'' in the context of 
LMDS auctions have been approved by the SBA. There were 93 winning 
bidders that qualified as small entities in the LMDS auctions. A total 
of 93 small and very small business bidders won approximately 277 A 
Block licenses and 387 B Block licenses. On March 27, 1999, the 
Commission re-auctioned 161 licenses; there were 40 winning bidders. 
Based on this information, we conclude that the number of small LMDS 
licenses will include the 93 winning bidders in the first auction and 
the 40 winning bidders in the re-auction, for a total of 133 small 
entity LMDS providers as defined by the SBA and the Commission's 
auction rules.
    27. In sum, there are approximately a total of 2,000 MDS/MMDS/LMDS 
stations currently licensed. Of the approximate total of 2,000 
stations, we estimate that there are 1,595 MDS/MMDS/LMDS providers that 
are small businesses as deemed by the SBA and the Commission's auction 
rules.
    28. Satellite Master Antenna Television (``SMATV'') Systems. The 
SBA definition of small entities for cable and other program 
distribution services includes SMATV services and, thus, small entities 
are defined as all such companies generating $12.5 million or less in 
annual receipts. Industry sources estimate that approximately 5,200 
SMATV operators were providing service as of December 1995. Other 
estimates indicate that SMATV operators serve approximately 1.5 million 
residential subscribers as of July 2001. The best available estimates 
indicate that the largest SMATV operators serve between 15,000 and 
55,000 subscribers each. Most SMATV operators serve approximately 
3,000-4,000 customers. Because these operators are not rate regulated, 
they are not required to file financial data with the Commission. 
Furthermore, we are not aware of any privately published financial 
information regarding these operators. Based on the estimated number of 
operators and the estimated number of units served by the largest ten 
SMATVs, we believe that a substantial number of SMATV operators qualify 
as small entities.
    29. Open Video Systems (``OVS''). Because OVS operators provide 
subscription services, OVS falls within the SBA-recognized definition 
of cable and other program distribution services. This definition 
provides that a small entity is one with $12.5 million or less in 
annual receipts. The Commission has certified 25 OVS operators with 
some now providing service. Affiliates of Residential Communications 
Network, Inc. (``RCN'') received approval to operate OVS systems in New 
York City, Boston, Washington, D.C. and other areas. RCN has sufficient 
revenues to assure us that they do not qualify as small business 
entities. Little financial information is available for the other 
entities authorized to provide OVS that are not yet operational. Given 
that other entities have been authorized to provide OVS service but 
have not yet begun to generate revenues, we conclude that at least some 
of the OVS operators qualify as small entities.
    30. Electronics Equipment Manufacturers. Rules adopted in this 
proceeding could apply to manufacturers of DTV receiving equipment and 
other types of consumer electronics equipment. The SBA has developed 
definitions of small entity for manufacturers of audio and video 
equipment as well as radio and television broadcasting and wireless 
communications equipment. These categories both include all such 
companies employing 750 or fewer employees. The Commission has not 
developed a definition of small entities applicable to manufacturers of 
electronic equipment used by consumers, as compared to industrial use 
by television licensees and related businesses. Therefore, we will 
utilize the SBA definitions applicable to manufacturers of audio and 
visual equipment and radio and television broadcasting and wireless 
communications equipment, since these are the two closest NAICS Codes 
applicable to the consumer electronics equipment manufacturing 
industry. However, these NAICS categories are broad and specific 
figures are not available as to how many of these establishments 
manufacture consumer equipment. According to the SBA's regulations, an 
audio and visual equipment manufacturer must have 750 or fewer 
employees in order to qualify as a small business concern. Census 
Bureau data indicates that there are 554 U.S. establishments that 
manufacture audio and visual equipment, and that 542 of these 
establishments have fewer than 500 employees and would be classified as 
small entities. The remaining 12 establishments have 500 or more 
employees; however, we are unable to determine how many of those have 
fewer than 750 employees and therefore, also qualify as small entities 
under the SBA definition. Under the SBA's regulations, a radio and 
television broadcasting and wireless communications equipment 
manufacturer must also have 750 or fewer employees in order to qualify 
as a small business concern. Census Bureau data indicates that there 
1,215 U.S. establishments that manufacture radio and television 
broadcasting and wireless communications equipment, and that 1,150 of 
these establishments have fewer than 500 employees and would be 
classified as small entities. The remaining 65 establishments have 500 
or more employees; however, we are unable to determine how many of 
those have fewer than 750 employees

[[Page 35822]]

and therefore, also qualify as small entities under the SBA definition. 
We therefore conclude that there are no more than 542 small 
manufacturers of audio and visual electronics equipment and no more 
than 1,150 small manufacturers of radio and television broadcasting and 
wireless communications equipment for consumer/household use.
    31. Description of Projected Reporting, Recordkeeping and other 
Compliance Requirements. The amended rule does not impose any 
additional reporting or recordkeeping requirements. To the extent that 
compliance may require the manufacture and purchase of non-integrated 
host devices by multichannel video programming distributors (``MVPDs'') 
by July 1, 2006, the present action does not impose any new 
requirements on consumer electronics equipment manufacturers or MVPDs, 
but rather extends the existing compliance date by eighteen months. We 
believe that the resulting impact on small entities is favorable to the 
extent that it provides them with additional time to come into 
compliance with the prohibition on integrated devices.
    32. Steps Taken to Minimize Significant Impact on Small Entities, 
and Significant Alternatives Considered. The RFA requires an agency to 
describe any significant alternatives that it has considered in 
reaching its proposed approach, which may include the following four 
alternatives (among others): (1) The establishment of differing 
compliance or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    33. To the extent that compliance with the amended prohibition 
deadline may require the manufacture and purchase of non-integrated 
host devices by multichannel video programming distributors (``MVPDs'') 
by July 1, 2006, the present action does not impose any new 
requirements on consumer electronics equipment manufacturers or MVPDs, 
but rather extends the existing compliance date by eighteen months. We 
believe that the resulting impact on small entities is favorable to the 
extent that it provides them with additional time to come into 
compliance with the prohibition on integrated devices. When the 
original prohibition deadline was adopted, we noted, inter alia, that 
Section 629 includes provisions which may lessen compliance impact on 
small entities, including Section 629(c), which specifies that the 
Commission shall waive its implementing regulations when necessary for 
an MVPD to develop new or improved services, and Section 629(e), which 
requires the Commission to sunset its implementing rules when certain 
conditions are met.
    34. Report to Congress: The Commission will send a copy of the 
Order (``Order''), including this FRFA, in a report to be sent to 
Congress pursuant to the Congressional Review Act. In addition, the 
Commission will send a copy of the Order, including this FRFA, to the 
Chief Counsel for Advocacy of the SBA. A copy of the Order and FRFA (or 
summaries thereof) will also be published in the Federal Register.

List of Subjects in 47 CFR Part 76

    Cable television.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

0
For the reasons stated in the preamble, The Federal Communications 
Commission amends 47 CFR part 76 as follows:

PART 76-- MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE

0
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, 217, 325, 503, 521, 522, 531, 532, 534, 
535, 536, 537, 543, 544, 544a, 545, 548, 549, 552, 554, 556, 558, 
560, 561, 571, 572, 573.

0
2. Section 76.1204 is amended by revising paragraph (a)(1) to read as 
follows:


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

    (a)(1) A multichannel video programming distributor that utilizes 
navigation devices to perform conditional access functions shall make 
available equipment that incorporates only the conditional access 
functions of such devices. Commencing on July 1, 2006, no multichannel 
video programming distributor subject to this section shall place in 
service new navigation devices for sale, lease, or use that perform 
both conditional access and other functions in a single integrated 
device.
* * * * *
[FR Doc. 03-15187 Filed 6-16-03; 8:45 am]
BILLING CODE 6712-01-P