[Federal Register Volume 70, Number 25 (Tuesday, February 8, 2005)]
[Rules and Regulations]
[Pages 6593-6595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2267]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 76

[MB Docket No. 05-28; DA 05-169]


Inquiry Regarding the Impact of Certain Rules on Competition in 
the Multichannel Video Programming Distribution Market

AGENCY: Federal Communications Commission.

ACTION: Review of rules and statutory provisions; solicitation of 
comments.

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SUMMARY: This document solicits public comment on the impact of certain 
provisions of the Communications Act of 1934, as amended, and 
Commission rules on competition in the multichannel video programming 
distribution market. The Commission is required by legislative mandate 
to submit a report to Congress based on the results of this inquiry no 
later than September 8, 2005.

DATES: Comments may be filed on or before March 1, 2005, and reply 
comments may be filed on or before March 16, 2005.

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

FOR FURTHER INFORMATION CONTACT: Marcia Glauberman, Media Bureau,

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(202) 418-7046, TTY (202) 418-7172, or via e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
document in MB Docket No. 05-28, DA 05-169, released January 25, 2005. 
The complete text of the document is available for inspection and 
copying during normal business hours in the FCC Reference Center, 445 
12th Street, SW., Washington, DC 20554, and may also be purchased from 
the Commission's copy contractor, BCPI, Inc., Portals II, 445 12th 
Street, SW., Room CY-B402, Washington, DC 20554. Customers may contact 
BCPI, Inc. via their Web site, http://www.bcpi.com, or call 1-800-378-
3160.

Synopsis

    1. On December 8, 2004, the Satellite Home Viewer Extension and 
Reauthorization Act of 2004 (SHVERA) was enacted. (The Satellite Home 
Viewer Extension and Reauthorization Act, Pub. L. 108-447; 118 Stat. 
2809 (2004). SHVERA was enacted as Title IX of the Consolidated 
Appropriations Act, 2005.) Section 208 of SHVERA requires the 
Commission to conduct an inquiry on the impact of specific provisions 
of the Communications Act of 1934, as amended, and Commission rules on 
competition in the multichannel video programming distribution (MVPD) 
market. The Commission is required to submit a report to Congress on 
the results of its inquiry no later than nine months after SHVERA's 
enactment (i.e., September 8, 2005).
    2. By this document, the Media Bureau (Bureau) initiates the 
inquiry required by section 208 and seeks comment for use in 
preparation of the required report. Section 208 states:

STUDY OF IMPACT ON CABLE TELEVISION SERVICE

    (a) STUDY REQUIRED--No later than 9 months after the date of 
enactment of the Satellite Home Viewer Extension and Reauthorization 
Act of 2004, the Federal Communications Commission shall complete an 
inquiry regarding the impact on competition in the multichannel 
video programming distribution market of the current retransmission 
consent, network nonduplication, syndicated exclusivity, and sports 
blackout rules, including the impact of those rules on the ability 
of rural cable operators to compete with the direct broadcast 
satellite industry in the provision of digital broadcast television 
signals to consumers. Such report shall include such recommendations 
for changes in any statutory provisions relating to such rules as 
the Commission deems appropriate.
    (b) REPORT REQUIRED--The Federal Communications Commission shall 
submit a report on the results of the inquiry required by subsection 
(a) to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate not later than 9 months after the date 
of the enactment of this Act. (SHVERA, Pub. L. 108-447 sec. 208, 118 
Stat. 2809, 3428-29 (2004).)

The following is a brief explanation of the specific rules the 
Commission's study must address.
     Retransmission Consent: (47 U.S.C. 325(b); 47 CFR 76.64-
70) In general, cable and direct broadcast satellite (DBS) operators 
must obtain retransmission consent from a commercial broadcast 
television station in order to carry its signal unless the broadcaster 
has elected to be carried pursuant to must-carry status. (47 U.S.C. 
325(b); 47 CFR 76.64.) Under retransmission consent, the broadcaster 
and cable or DBS operator negotiate an agreement that may involve 
compensation in return for permission to retransmit the broadcast 
television station.
     The Network Program Nonduplication Rules (47 CFR 76.120-
122 and 76.92-95) allow a local commercial television station to 
protect its exclusive distribution rights for network programming based 
on its affiliate agreement with the network within the geographic zone 
specified in the Commission's rules.\1\ In the cable context, the 
station may assert these rights against duplicative programming on a 
broadcast station carried by a cable operator. In the satellite 
context, network nonduplication rights may only be asserted against the 
duplicative programming carried on a ``nationally distributed 
superstation.'' (47 CFR 76.122, 124. The FCC's definition of 
``nationally distributed superstation'' can be found at 47 CFR 76.120.)
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    \1\ See 47 CFR 76.92 and 76.93. The Commission's rules provide 
stations such protection within a 35-mile geographic zone (or 55 
miles in smaller markets), which extends from the reference point of 
the community of license of the television station. See 47 CFR 
73.658(m), 76.53, and 76.92 Note.
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     The Syndicated Program Exclusivity Rules (47 CFR 76.101-
110, 76.120 and 76.123-125) allow a local television broadcast station 
or distributor to protect its exclusive distribution rights for 
syndicated programming within the geographic zone specified in the 
Commission's rules.\2\ In the cable context, the station or distributor 
may assert these rights against duplicative programming on a broadcast 
station carried by a cable operator. In the satellite context, 
syndicated exclusivity rights may only be asserted against the 
duplicative programming carried on a nationally distributed 
superstation.
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    \2\ See 47 CFR 76.101 and 76.103. The Commission's rules provide 
such protection within a station's 35-mile geographic zone, which 
extends from the reference point of the community of license of the 
television station. See 47 CFR 73.658(m), 76.53, and 76.101 Note.
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     The Sports Blackout Rules (47 CFR 76.111, 76.120, 76.127-
130) protect a sports team or league's exclusive distribution rights to 
a local sporting event (i.e., a sports team). The sports blackout rules 
are applied only if a local TV broadcast station is not carrying the 
local sporting event. If a local TV broadcast station does not have 
permission to carry the local game, then no other broadcaster's signal 
displaying the game can be carried by cable or satellite to subscribers 
in the protected local blackout zone. (47 CFR 76.128.)
    3. In addition to these existing rules, SHVERA also authorizes 
satellite carriers to offer distant digital stations and out-of-market 
``significantly viewed'' stations to subscribers under certain 
circumstances. (See 47 U.S.C. 339 and 340, as amended by Sections 202 
and 204 of SHVERA.) Existing statutory provisions permit cable 
operators to offer such stations. (17 U.S.C 111 (a), (c), and (f).)
    4. The Bureau seeks comments, information and analysis on how these 
rules, individually or collectively, affect competition in the MVPD 
market. The Bureau also seeks studies that measure the impact of these 
rules, either individually or collectively, on competition generally. 
The Bureau further requests comment and analysis on the impact of these 
rules on the ability of rural cable operators to compete with DBS in 
the provision of digital broadcast television signals to consumers. In 
addition, the Bureau requests recommendations for statutory changes 
regarding these four rules affecting competition in the MVPD market.

Procedural Matters

    5. Ex Parte Rules. There are no ex parte or disclosure requirements 
applicable to this proceeding pursuant to 47 CFR 1.1204(b)(1).
    6. Comment Information. Pursuant to Sec. Sec.  1.415 and 1.419 of 
the Commission's rules, 47 CFR 1.415, 1.419, interested parties may 
file comments and reply comments on or before the dates indicated on 
the first page of this document. Comments may be filed using: (1) The 
Commission's Electronic Comment Filing System (ECFS), (2) the Federal 
Government's eRulemaking Portal, or (3) by filing paper copies. See 
Electronic Filing of Documents in

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Rulemaking Proceedings, 63 FR 24121 (1998).
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs/ 
or the Federal eRulemaking Portal: http://www.regulations.gov. Filers 
should follow the instructions provided on the website for submitting 
comments.
     For ECFS filers, if multiple docket or rulemaking numbers 
appear in the caption of this proceeding, filers must transmit one 
electronic copy of the comments for each docket or rulemaking number 
referenced in the caption. In completing the transmittal screen, filers 
should include their full name, U.S. Postal Service mailing address, 
and the applicable docket or rulemaking number. Parties may also submit 
an electronic comment by Internet e-mail. To get filing instructions, 
filers should send an e-mail to [email protected], and include the following 
words in the body of the message, ``get form.'' A sample form and 
directions will be sent in response.
     Paper Filers: Parties who choose to file by paper must 
file an original and four copies of each filing. If more than one 
docket or rulemaking number appears in the caption of this proceeding, 
filers must submit two additional copies for each additional docket or 
rulemaking number. Filings can be sent by hand or messenger delivery, 
by commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail (although we continue to experience delays in 
receiving U.S. Postal Service mail). All filings must be addressed to 
the Commission's Secretary, Office of the Secretary, Federal 
Communications Commission.
     The Commission's contractor will receive hand-delivered or 
messenger-delivered paper filings for the Commission's Secretary at 236 
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing 
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be 
held together with rubber bands or fasteners. Any envelopes must be 
disposed of before entering the building.
     Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743.
     U.S. Postal Service first-class, Express, and Priority 
mail should be addressed to 445 12th Street, SW., Washington DC 20554.
     People with Disabilities: Contact the FCC to request 
materials in accessible formats (braille, large print, electronic 
files, audio format, etc.) by e-mail at [email protected] or call the 
Consumer & Governmental Affairs Bureau at 202-418-0531 (voice), 202-
418-7365 (TTY).

Federal Communications Commission.
William H. Johnson,
Deputy Chief, Media Bureau.
[FR Doc. 05-2267 Filed 2-7-05; 8:45 am]
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