[Federal Register Volume 73, Number 57 (Monday, March 24, 2008)]
[Rules and Regulations]
[Pages 15431-15458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-5409]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 15, 27, 54, 73, and 76

[CS Docket No. 07-148; FCC 08-56]


DTV Consumer Education Initiative

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This document adopts rules requiring industry to participate 
in a coordinated, nationwide, consumer outreach campaign. Despite 
extensive consumer outreach efforts by the Commission and others, a 
large percentage of the public is not sufficiently informed about the 
DTV transition. The rules in this item will ensure that the full 
benefits of the transition are realized and experienced by consumers.

DATES: The rules in this document contain information collection 
requirements that have not been approved by the Office of Management 
and Budget. The Commission will publish a document in the Federal 
Register announcing the effective date of these rules.

ADDRESSES: Federal Communications Commission, 445 12th Street, SW., 
Washington, DC 20554. In addition to filing comments with the Office of 
the Secretary, a copy of any comments on the Paperwork Reduction Act 
information collection requirements contained herein should be 
submitted to Cathy Williams, Federal Communications Commission, 445 
12th Street, SW., Washington, DC 20554, or via the Internet to 
[email protected].

FOR FURTHER INFORMATION CONTACT: For additional information on this 
proceeding, please contact Lyle Elder, [email protected], or Eloise 
Gore, [email protected], of the Media Bureau, Policy Division, (202) 
418-2120. For additional information concerning the Paperwork Reduction 
Act information collection requirements contained in this document, 
contact Cathy Williams on (202) 418-2918, or via the Internet at 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Federal 
Communications Commission's Report and Order in MB Docket No. 07-148, 
FCC 08-56, adopted February 19, 2008 and released March 3, 2008. The 
full text of this document is available for public inspection and 
copying during regular business hours in the FCC Reference Center, 
Federal Communications Commission, 445 12th Street, SW., CY-A257, 
Washington, DC 20554. These documents will also be available via ECFS 
(http://www.fcc.gov/cgb/ecfs/). (Documents will be available 
electronically in ASCII, Word 97, and/or Adobe Acrobat.) The complete 
text may be purchased from the Commission's copy contractor, 445 12th 
Street, SW., Room CY-B402, Washington, DC 20554. To request this 
document in accessible formats (computer diskettes, large print, audio 
recording, and Braille), send an e-mail to [email protected] or call the 
Commission's Consumer and Governmental Affairs Bureau at (202) 418-0530 
(voice), (202) 418-0432 (TTY).

Paperwork Reduction Act of 1995 Analysis

    This document was analyzed with respect to the Paperwork Reduction 
Act of 1995 (``PRA''), Public Law 104-13 and contains new and modified 
information collection requirements, including the following: (1) 
Broadcasters must provide information to their viewers about the DTV 
transition, and must report those efforts to the Commission and the 
public; (2) MVPDs must provide monthly notices about the DTV transition 
in their customer billing statements; (3) manufacturers of television 
receivers and related devices must provide notice to consumers buying 
their devices of the transition's impact on that equipment; (4) DTV.gov 
Partners must provide the Commission with regular updates on their 
consumer education efforts; (5) ETCs that receive federal universal 
service funds must provide notice of the transition to their low income 
customers and potential customers; and (6) the winners of the 700 MHz 
spectrum auction will be required to report their consumer education 
efforts. The information collection requirements contained in this 
Report and Order will be submitted to the Office of

[[Page 15432]]

Management and Budget (``OMB'') for review under Section 3507(d) of the 
PRA. The Commission will seek OMB approval for these information 
collection requirements and forms in accordance with OMB's emergency 
processing rules. The Commission will publish a separate Federal 
Register Notice seeking comments from OMB, the general public, and 
other Federal agencies on the final information collection requirements 
contained in this proceeding. In addition, pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law 107-198, we will also 
seek specific comment on how we might ``further reduce the information 
collection burden for small business concerns with fewer than 25 
employees'' in the Federal Register Notice seeking comment on the 
information collections.

Summary of the Report and Order

I. Introduction

    1. As discussed below, in this Report and Order we adopt several 
proposals relating to consumer education about the digital television 
(``DTV'') transition. As the Nation's full-power television stations 
transition from analog broadcast television service to digital 
broadcast television service, the Commission has been committed to 
working with representatives from industry, public interest groups, and 
Congress to make the significant benefits of digital broadcasting 
available to the public. The digital transition will make valuable 
spectrum available for both public safety uses and expanded wireless 
competition and innovation. It will also provide consumers with better 
quality television picture and sound, and make new services available 
through multicasting. These innovations, however, are dependent upon 
widespread consumer understanding of the benefits and mechanics of the 
transition. The Congressional decision to establish a hard deadline of 
February 17, 2009, for the end of full-power analog broadcasting has 
made consumer awareness even more critical.
    2. As explained in more detail below, we thus impose the following 
requirements in this Order. First, broadcasters must provide on-air 
information to their viewers about the DTV transition, by compliance 
with one of three alternative sets of rules, and must report those 
efforts to the Commission and the public. Second, multichannel video 
programming distributors (MVPDs) must provide monthly notices about the 
DTV transition in their customer billing statements. Third, 
manufacturers of television receivers and related devices must provide 
notice to consumers of the transition's impact on that equipment. 
Fourth, DTV.gov Partners must provide the Commission with regular 
updates on their consumer education efforts. Fifth, companies 
participating in the Low Income Federal Universal Service Program must 
provide notice of the transition to their low income customers and 
potential customers. Sixth, the winners of the 700 MHz spectrum auction 
must report their consumer education efforts. Finally, we offer our 
assistance to the National Telecommunications and Information Agency 
(NTIA) in policing and enforcing the requirements of the digital 
converter box retail program. We find that these requirements are 
necessary to ensure that the American public is adequately prepared for 
the full-power digital transition, but that they will no longer be 
necessary after the full-power transition is fully complete. This Order 
therefore provides that these requirements will be in place for a 
limited time only.

II. Background

    3. Congress has mandated that after February 17, 2009, full-power 
broadcast stations must transmit only in digital signals, and may no 
longer transmit analog signals. As the National Consumers League 
describes it, ``[t]he transition to DTV is probably the most 
significant event for television-viewers since the invention of 
television itself. It is crucial for people to be aware of the change, 
understand its impact, and be able to make sound choices.'' We agree, 
and the Commission has been actively engaged in DTV consumer education 
and outreach efforts since before the establishment of the hard full-
power transition deadline. Our longstanding and ongoing efforts include 
a wide range of activities, both completed and planned. For instance, 
the Chairman recently announced the creation of a DTV Task Force, 
formalizing the relationships among the numerous Offices and Bureaus 
involved in the transition. The goal of the Task Force is to facilitate 
a smooth transition that minimizes the burdens on consumers while 
maximizing their opportunities to benefit from it. As an extension of 
existing coordination efforts, the Task Force will: meet regularly to 
discuss and direct ongoing DTV transition efforts, coordinate with 
other federal agencies, shares ideas, and address any problems that 
arise or appear imminent. The members of the Task Force will also meet 
regularly with various stakeholders from industry and federal, state, 
local, and tribal governments.
    4. Representatives John D. Dingell, Chairman of the Committee on 
Energy and Commerce, and Edward J. Markey, Chairman of the Subcommittee 
on Telecommunications and the Internet, recently wrote to the 
Commission to express interest in the pace and scope of consumer 
education about the full-power transition. As the Congressmen observed, 
``the Commission is particularly well suited to lead this effort given 
its existing expertise and resources.'' They proposed a number of 
specific actions that they believe the Commission should take. As 
discussed above, many of these recommendations are already being 
actively pursued by the Commission. The Commission released a Notice of 
Proposed Rulemaking on July 21, 2007 requesting comment on the best 
means of creating a coordinated, national DTV consumer education 
campaign. Comments were due September 17, 2007 and reply comments were 
due October 1, 2007. We reviewed over 30 comments, 6 reply comments, 
and over 100 ex parte presentations and comments from a wide range of 
sources, including individuals, trade associations, broadcasters, and 
nonprofits.

III. Discussion

    5. Insofar as the actions referenced in the Letter require 
regulatory action by the Commission, we adopt those proposals. As a 
general matter, it suggests that ``the Commission could use its 
existing authority to compel industry to contribute time and resources 
to a coordinated, national consumer education campaign.'' We agree that 
the Commission should take whatever steps we can to promote a 
coordinated, national DTV consumer education campaign. Some industry 
commenters have objected to these requirements on the ground that the 
Commission has insufficient statutory authority to implement them. 
These objections are discussed in more detail below. As 
Telecommunication for the Deaf and Hard of Hearing, et al. observe, we 
have broad authority to require educational outreach efforts concerning 
the DTV transition. The Commission is statutorily required to promote 
the orderly transition of full-power stations from analog to digital 
television, and we have exercised that mandate to, among other things, 
prevent the continued importation and interstate shipment of analog-
only sets and to require retailers to label those analog-only sets they 
continue to legally sell. Our statutory authority allows us to 
facilitate the transition by adopting rules requiring the dissemination 
of essential information about the transition.

[[Page 15433]]

    6. There is a clear and compelling need for educational efforts 
directed toward consumers. As APTS found in its most recent quarterly 
consumer survey on the DTV transition, a majority of Americans do not 
fully understand the transition. Moreover, as the Commission's Consumer 
Advisory Committee (CAC) points out, a substantial number of Americans 
have not yet made the switch to digital. By the end of 2007, it was 
expected that only one-third of households would have a digital 
television. Of households that rely on over-the-air (OTA) broadcasts, 
only seven percent own a digital television. Furthermore, the 
households that principally rely on OTA broadcasts are the most 
vulnerable and arguably the most difficult to reach; almost half have 
annual incomes of less than $30,000, and two-thirds are headed by 
someone over 50 years of age or someone for whom English is a second 
language. Thus, we must take immediate and effective action to ensure 
that viewers are informed of the effect that the full-power digital 
transition will have on them and the options that are available to them 
to make the transition to digital television without losing full-power 
television service. This Order focuses on actions that television 
broadcasters, MVPDs, telecommunications carriers, retailers, and 
manufacturers must take to inform consumers about the transition. 
Nonetheless, because of the national importance of this issue, we also 
strongly encourage radio broadcasters to engage in efforts to educate 
and inform their listeners. Such efforts could be an important 
complement to consumer outreach by other public and private sector 
groups between now and the transition.

A. Broadcaster Education and Reporting

    7. The National Association of Broadcasters (NAB) and other 
broadcast industry commenters have argued that there is a public 
interest benefit in preserving some flexibility on the part of 
broadcasters to serve the needs of viewers in their widely divergent 
communities, and we agree. We therefore adopt rules that give both 
commercial and noncommercial broadcasters a choice of education and 
reporting requirements. Furthermore, we acknowledge that the ongoing 
educational efforts of industry have made a notable impact on consumer 
awareness, and anticipate continuing effective and creative measures 
from the industry to increase viewer awareness of the full-power 
digital transition. As discussed throughout this Order, we find a 
broad-based consumer education mandate essential given the importance 
of consumer awareness to the digital transition, but we will allow 
broadcasters the flexibility to choose which of these different plans 
to follow.
    8. Although the sets of requirements are distinct, we find that 
they each entail a similar level of commitment and engagement on the 
part of broadcasters. Where the first option calls for more frequent 
PSAs, the second calls for longer ones, and the third for the same 
total amount of education with less restriction on length. Where the 
first and third options allow for PSAs in specified parts of the day, 
the second option requires greater focus on the hours when most viewers 
tune in. Where the first option does not require any long educational 
messaging, the second and third mandate a 30 minute program dedicated 
to in-depth education. Where Option One requires a set number of 
crawls, Option Two allows broadcasters to use a variety of in-program 
messaging techniques to inform viewers, and Option Three requires only 
PSAs and longer messages. While Options One and Three do not directly 
address special additional education measures during the final months 
of the full-power transition, Option Two is more comprehensive in its 
focus on alternative approaches. All plans require quarterly reporting 
of both mandatory and voluntary outreach and education efforts. This 
will allow the Commission not only to monitor compliance, but also to 
stay informed of the creative approaches being taken by disparate 
broadcasters all over the country, and continue to serve in its role as 
the primary transition educator and coordinator of transition education 
efforts.
    9. The Commission's education requirement will go into effect upon 
the effective date of the rules. Every full-power commercial 
broadcaster must participate in option One or Two, and noncommercial 
broadcasters must participate in option One, Two, or Three. Whichever 
Option is elected, every broadcaster must conduct consumer outreach and 
education pursuant to that set of rules. Under each of the options, 
broadcasters must report on its educational and outreach activities by 
filing Form 388 with the Commission and placing it in the station's 
public file. Each broadcaster will elect the option with which it will 
comply no later than the first reporting deadline under the plans, by 
noting its chosen plan when it first files Form 388. Failure to comply 
with either the education or reporting requirements under any Option 
may result in enforcement action.
1. Broadcaster Education Option One
a. Option One Consumer Education Requirements
    10. Broadcasters who opt to comply with this option will be 
required to regularly air a mix of PSAs and crawls, with increasing 
frequency as the full-power transition approaches, that explain the 
various important issues of the full-power transition and explain how 
viewers can find more information. Specifically, a station must air one 
transition PSA, and run one transition crawl, in every quarter of every 
day. This requirement applies separately to a station's analog channel 
and its primary digital stream. This requirement will increase to two 
PSAs and crawls per quarter per day on April 1, 2008, and to three of 
each on October 1, 2008. For the purposes of these education 
requirements, each broadcast day can be broken into four quarters; 6:01 
a.m. to 12 p.m., 12:01 p.m. to 6 p.m., 6:01 p.m. to 12 a.m., and 12:01 
a.m. to 6 a.m. Stations are required to air PSAs or crawls at various 
times in any given day part, and we expressly require that at least one 
PSA and one crawl per day be run during primetime hours. For the 
purposes of this item, ``primetime'' is defined as the hours between 8 
p.m. and 11 p.m. in the Eastern and Pacific time zones, and between 7 
p.m. and 10 p.m. in the Mountain and Central time zones. We expect that 
broadcasters will air these DTV PSAs in addition to, and not in lieu 
of, PSAs on other issues of importance to their local communities. In 
addition, we require that the transition PSAs be closed-captioned 
regardless of their duration, notwithstanding the exemption in 
79.1(d)(6).
    11. These requirements will expire for most broadcasters on March 
31, 2009. This DTV education requirement will continue for any station 
that has requested or been granted an extension to serve less than its 
full authorized service area after March 31, 2009. Some broadcasters 
filed comments in the Third DTV Periodic describing circumstances that 
may prevent them from completing construction to reach their fully 
authorized service area by February 18, 2009. Any station that does not 
reach all of its pre-transition viewers on February 18, 2009 will be 
required to continue its education efforts until its request for 
extension has been withdrawn or denied, or until a granted extension 
has expired. We will increase these requirements if we find, based on 
the overall progress of DTV consumer

[[Page 15434]]

education, that it is necessary to revise the frequency, content or 
duration of the PSAs or crawls on a station-by-station basis, for a 
particular region, or for the country as a whole.
    12. Crawls must run during programming for no less than 60 
consecutive seconds across the bottom or top of the viewing area, and 
be provided in the same language as a majority of the programming 
carried by the station. Although we do not dictate the exact content of 
the crawls, we find that, over the 60 second duration, they must repeat 
a message that conveys the following information:
     On February 17, 2009, full-power analog broadcasting will 
end, and analog-only televisions may lose the signal being viewed 
unless the viewer takes action.
     That viewers can get more information by telephone or 
online, and how to do so.
    The crawl may also, at the broadcaster's discretion, provide other 
information, such as, for example, contact information for the DTV 
Transition Coalition.
    13. Required PSAs must be at least 15 seconds. Each PSA must 
provide, at a minimum, the same information as required for crawls, 
above. We acknowledge the creativity of the private sector, as noted by 
SBA, and do not mandate the form of PSAs other than to require that, 
over the course of a broadcaster's education campaign, they give more 
detail about the following subjects:
     What a viewer needs to do to continue watching the 
station, whether they are an OTA viewer or receive broadcast signals 
via their MVPD, and
     Where appropriate, specific details about the station's 
transition: for example, shifts in service area, channel numbering 
changes, the addition of multicast and/or High Definition channels, 
timing, etc.
    14. Additionally, on-air outreach must contain no misleading or 
inaccurate statements. We do not limit stations to these efforts. For 
example, certain stations may find that additional PSAs in languages 
other than those in which a majority of their programming is presented 
would be beneficial to their viewers; for other stations, multilingual 
announcements may not be needed. Stations are free to use PSAs provided 
by outside sources such as NAB or networks, so long as their overall 
campaign touches on all the elements relevant to their particular 
transition. The flexibility of the rules we adopt today makes clear 
that we are focusing on Congress's command to promote an orderly full-
power transition.
    15. The Letter suggested that the Commission consider using its 
regulatory authority to ``require television broadcasters to air 
periodic public service announcements and a rolling scroll about the 
digital transition.'' We note that although the Letter refers to 
``scrolls,'' commenters (including AARP, NAB, and APTS) understood this 
to refer to what in the closed captioning context we have called a 
``crawl.'' Indeed, the National Hispanic Media Coalition, which 
strongly supports PSA requirements and calls for ``Y2K-level consumer 
education efforts,'' opposes vertical scrolls as unnecessary. Comments 
of NHMC at 3. For the sake of consistency and to reflect the generally 
understood intent of the proposal, we use the term ``crawl'' here. We 
have adopted this requirement, while giving broadcasters significant 
latitude to determine the best way to present the essential information 
on the timing and nature of the full-power transition and how to 
continue receiving the station's programming throughout and after the 
transition.
    16. Most of the commenters who commented on this issue agreed with 
the Commission that broadcast consumer education efforts are the best 
way to reach viewers who will be most affected by the full-power 
transition, particularly those who rely primarily or exclusively on OTA 
television. For example, one commenter states that PSAs should be the 
``primary focus for transition education efforts,'' and that an 
education program including PSAs must be mandated to ensure public 
education ``in a timely manner.'' It is also important not to simply 
rely on one form of on-screen education or the other. Crawls and PSAs 
convey information very differently, and reach different groups of 
people as a result. Given the growing use of personal video recorders 
and other devices that can be used for time-shifting and commercial 
skipping, many consumers might not be reached by education efforts, 
such as PSAs, that air only during programming breaks. At the same 
time, a crawl can not reach those viewers whose eyesight is not strong 
enough to read its comparatively small print, or who are not able to 
read at all. Using both methods will ensure that education efforts 
reach more viewers. Broadcaster commenters are generally in agreement 
regarding the importance of their role in consumer education; for 
instance, Entravision, a Spanish language broadcaster, supports 
mandatory PSAs. Even those broadcasters who oppose regulation in this 
matter say that, regardless of our decision here, they plan to engage 
in consumer outreach and education that ``far exceed any requirements 
the FCC could or should impose,'' because ``the ability to reach every 
household is the foundation of broadcast television's public interest 
and operational success.'' A wide array of broadcaster activity is 
promised not just in this Commission docket, but also in testimony to 
Congress.
    17. Despite commendable pledges by organizations like the State 
Broadcasters Association (SBA) and the National Association of 
Broadcasters (NAB), we find that regulatory action is the only way to 
ensure a sustained, nationwide, station-by-station effort. As the 
Benton Foundation observes, these organizations have no power to bind 
individual stations. We acknowledge and appreciate the leadership and 
coordination efforts of NAB, and anticipate continuing to work with it 
on additional voluntary efforts. At the same time, we are convinced 
that DTV consumer education needs to be a nationwide station-by-station 
effort. As SBA says, consumer education is ``critical'' because 
interruption of broadcast service to even a single home is 
``unacceptable.'' Our rules will ensure that the critical need for 
education is met in every market. NAB and APTS both argue that we can 
simply rely on the interests of all broadcasters in preserving their 
over-the-air audience, and that we therefore need not require any 
broadcaster education efforts. While we agree that broadcasters have 
every incentive to prepare their viewers for the transition, a 
``baseline requirement'' is necessary to ensure the public awareness 
necessary for a smooth and orderly transition. We have adopted NAB's 
proposal as an alternative method by which stations can meet this 
baseline requirement. As the Commission's Consumer Advisory Committee 
points out, there will be a number of contrary pressures on local 
broadcasters over the next 12 months. For example, it is possible that 
the viewers most likely to be left behind due to an insufficient 
educational effort are the ones least demographically attractive to 
advertisers. Finally, potential advertising revenue from such sources 
as presidential and other political campaigns may make it tempting, in 
the short run, not to devote advertising time to transition education.
    18. APTS suggests that public television stations be exempt from 
any requirements because they have a good track record of informing the 
public and because they are limited in the time they have to air public 
service announcements. We disagree because the rules we impose are 
designed to

[[Page 15435]]

complement efforts such as APTS'; if broadcasters are already engaging 
in these efforts, the rules will not be a burden. However, as with 
commercial stations, we have given noncommercial broadcasters the 
option to comply with our requirements via an alternative route.
    19. Statutory Authority. The National Association of Broadcasters, 
alone among commenters, argues that the Commission does not have 
statutory authority to require that broadcasters inform their viewers 
of the full-power broadcast digital television transition. NAB argues 
that Section 326 of the Act, prohibiting us from interfering with the 
right of free speech by broadcasters, prevents us from acting here 
absent a grant of authority that specifically mentions DTV consumer 
education PSAs and crawls. We disagree. As discussed more fully in 
Section G, below, our actions here do not constitute an improper 
restriction on speech. NAB also asserts an artificially narrow 
conception of the Commission's statutory authority when it argues that 
we cannot act without a ``specific statutory provision authorizing 
required PSAs and crawls, including content thereof.'' As noted above, 
Congress both mandated the digital transition and vested the Commission 
with the power to ``prescribe such regulations as may be necessary for 
the protection of the public interest, convenience, and necessity'' in 
connection with the digital transition.
    20. Finally, broadcast licensees have a statutory obligation to 
``serve the public interest, convenience, and necessity.'' One can 
scarcely conceive a situation more illustrative of the ``necessity'' 
prong of this duty than the instant case, where certain viewers will 
cease having access to full-power broadcast services transmitted over 
the public airwaves on a date certain absent concerted informational 
efforts. There simply can be no national full-power digital broadcast 
transition if the very people who rely on broadcast television are 
unaware of it. As NAB acknowledges, ``[t]he future of free-over-the-air 
television depends upon a smooth transition. * * * For this to happen, 
the American public must understand what all-digital broadcasting means 
for them.''
    21. Broadcasters must take some responsibility for educating the 
public that they are bound to serve. If a blizzard hits Chicago on 
February 18, 2009, all over-the-air viewers should be able to turn on 
their television and receive emergency information without missing a 
beat. Educating viewers so that they have access to digital 
transmissions is a keystone of the transition which the FCC is 
statutorily required to effectuate, and broadcasters must play a 
central role in that process. In reviewing other regulations designed 
to advance the digital transition, the D.C. Circuit held in Consumer 
Electronics Ass'n v. FCC that ``[g]iven Congress' instruction to end 
analog broadcasts * * * and the Commission's finding that [current 
trends were not such that the public would be ready for the 
transition], * * * the Commission reasonably determined to take action 
* * * so that the DTV transition may move at the pace required by 
Congress.'' As in CEA, we must take action to ensure the orderly 
transition of broadcast service to digital and we have the statutory 
authority to do so.
    22. Finally, the imposition here is similar to existing 
requirements for broadcaster station identification and broadcast of 
license renewal notices. The change from analog to digital broadcasting 
is at least as fundamental to the operation of a station as the 
possession of a broadcast license, and of more practical import to 
viewers. Given the extremely minimal requirements for producing a 
compliant PSA or crawl and the indispensable role that television 
stations must play in educating their viewers in how they can continue 
to have access to full-power television service after the transition, 
it does not avail NAB to claim that these public notices are 
fundamentally different from other broadcast notice requirements 
because they are ``furthering a government policy.''
    23. The Commission, in a similar context, enforced broadcaster 
public interest obligations by requiring digital television stations to 
participate in the emergency alert system (``EAS''). In that 
proceeding, NAB agreed with the Commission that participation in EAS 
was a natural extension of broadcaster public interest obligations. The 
order noted that exemption from this requirement would not be in the 
public interest. It also noted that if participation in the Emergency 
Alert System were voluntary, some communities could be left without an 
EAS source, and such messages are too important to risk missing 
``because a person is tuned to the wrong channel.'' Similarly, in the 
case of the transition, an exemption from consumer education is 
contrary to the public interest because the public has a right to know 
how televisions will function after February 17, 2009. A voluntary 
program is inadequate because transition information is too important 
to risk that some viewers will lack the necessary information because 
the licensee serving them fails to provide that information in a timely 
fashion. If viewers see a blank screen on February 18, 2009 because 
they were not informed about the actions they needed to take to 
continue receiving television programming, they will effectively be 
deprived of access to all OTA television service--including EAS. The 
Commission imposed a similar requirement upon broadcasters pursuant to 
the Children's Television Act (``CTA'').
b. Option One Reporting Requirements
    24. A broadcaster choosing to comply with Option One will be 
required to electronically report its consumer education efforts to the 
Commission on a quarterly basis, and place these reports in the 
broadcaster's public file and, if the broadcaster has a public Web 
site, on that Web site. These reports will be made available on the 
Commission's Web site in a centralized, searchable database. For each 
quarter of required consumer education, we require that broadcasters 
electing Option One complete Form 388 and file it electronically in 
this docket (07-148) by the tenth day of the succeeding calendar 
quarter, with a copy placed in the station's public inspection file by 
that same date. Because of the limited duration of the full-power 
transition period, only a limited number of these quarterly reports 
will be required. The first, covering the first quarter of 2008, must 
be filed no later than April 10, 2008, and the last, covering a 
station's final quarter of mandated educational efforts, will be filed 
no later than April 10, 2009 for most stations. Stations that are 
required to continue educational efforts beyond March 31, 2009 must 
also continue to file these quarterly reports, up to and including the 
final quarter in which they have active educational requirements.
    25. The Letter suggested that the Commission consider requiring 
``broadcast licensees and permittees to report, every 90 days, their 
consumer education efforts, including the time, frequency, and content 
of public service announcements aired by each station in a market, with 
civil penalties for noncompliance.'' It also suggested that the 
Commission consider imposing ``interim requirements for detailing a 
broadcaster's consumer education efforts in the required local public 
inspection file, such as by including coverage about the digital 
transition in the issues/programs list compiled every three months or 
by making announcements in local newspapers or on-air similar to public 
notice requirements for new stations or license renewal.''

[[Page 15436]]

    26. Broadcasters generally oppose this reporting requirement. As 
discussed above, broadcaster education efforts are a central part of 
consumer education concerning the transition. We require reporting to 
enforce these consumer education initiatives and ensure that the 
necessary efforts are underway. As the National Hispanic Media 
Coalition observes, ``[t]here is no satisfactory alternative to this 
reporting.'' As with the Children's Television Programming 
requirements, self-reporting allows broadcasters to verify for 
themselves that they are fulfilling their obligations. Furthermore, 
because of the importance of these education requirements and the 
relatively short time frame of the full-power transition, the 
Commission needs to be able to monitor compliance with and enforce 
those obligations in a way that is not prohibitively cost- and time-
consuming. Self-reporting is the most effective way to do this.
    27. As to the form and format of the reports, the AARP and others 
take the position that the reports should include detailed information 
about each airing of a PSA and its content, and should be filed 
quarterly. The Benton Foundation suggests that the reports be filed in 
electronic form, and also be placed in the broadcaster's public file. 
As noted, we decline to require a specific format, but all of the above 
information must be included.
    28. Given our statutory authority to require the PSAs and crawls, 
as discussed above, we also have authority to require broadcasters to 
document and report their compliance efforts. We have statutory 
authority under the Communications Act to require broadcasters to 
provide information about their programming to the public and the 
Commission. Providing information to the public about their transition 
education efforts will make broadcasters more accountable for their 
public interest obligation to promote the continued availability of 
free television programming and ensure a smooth transition. Sections 
303(r) and 4(i) of the Communications Act provide ample authority for 
the reporting requirement because providing this information will help 
us ensure broadcasters are acting as public trustees and the Commission 
is fulfilling its duty to oversee the full-power transition. In 
addition, section 4(k) of the Communications Act expressly authorizes 
the Commission to collect information and data ``as may be considered 
of value in the determination of questions connected with the 
regulation of interstate * * * radio communication and radio 
transmission of energy'' to assist the Congress in its normal oversight 
responsibilities. Determining whether the American public is adequately 
informed and educated about the full-power DTV transition is of 
significant concern to Congress, and the reporting requirements will 
assist the Commission in gathering this important information. In 
addition, these reporting requirements are ``necessary for the 
protection of the public interest, convenience, and necessity'' in 
connection with the digital transition because they will assist the 
Commission in assessing consumer understanding of the transition and in 
determining whether adjustments to the educational efforts must be 
made. Further, without broadcasters reporting their efforts, the public 
and the Commission will be unable to determine at renewal time whether 
stations have complied with the consumer education rules. Indeed, these 
requirements are similar to the long-standing issues/programs list 
requirements which require stations to list every three months their 
programs that have provided the most significant treatment of community 
issues and retain these lists in their public file. As with on-air 
identifiers, our broad authority under the Communications Act to carry 
out the public interest requirement permits us to have broadcasters 
provide public service announcements to effectuate the public interest 
standard. Although we have not previously required broadcasters to air 
public service announcements, we have required stations to broadcast 
certain on-air announcements, to give public notice in a local 
newspaper for certain broadcast applications, and to make available 
certain information in a public file.
    29. Similarly, the Commission's First Report and Order pursuant to 
the Children's Television Act (``CTA'') relied on the authority cited 
above and the Commission's authority to enforce the public interest 
obligations of broadcasters to impose upon broadcasters mandatory 
quarterly children's programming reporting requirements. Here, the 
reporting requirement is much more lenient, as it is for a finite 
period of time.
2. Broadcaster Education Option Two
a. Option Two Consumer Education Requirements
    30. We find that the record also supports permitting broadcasters 
to choose to comply with our rules by following the alternative plan 
offered by the National Association of Broadcasters. Under this option, 
a broadcaster must air an average of sixteen transition PSAs per week, 
and an average of sixteen transition-related crawls, snipes, and/or 
tickers per week, over each quarter through the transition period 
between 5 a.m. and 1 a.m. No PSAs or crawls, snipes, and/or tickers 
aired between the hours of 1 a.m. and 5 a.m. will qualify as compliant 
for the purposes of these education requirements. Over the course of 
each calendar quarter, one fourth of all PSAs and crawls, snipes, and/
or tickers must air between 6 p.m. and 11:35 p.m., Eastern and Pacific, 
and between 5 p.m. and 10:35 p.m., Central and Mountain. These 
requirements will expire for most broadcasters on March 31, 2009. This 
DTV education requirement will continue for any station that has 
requested or been granted an extension to serve less than its full 
authorized service area after March 31, 2009. Some broadcasters filed 
comments in the Third DTV Periodic describing circumstances that may 
prevent them from completing construction to reach their fully 
authorized service area by February 18, 2009. Any station that does not 
reach all of its pre-transition viewers on February 18, 2009 will be 
required to continue its education efforts until their request for 
extension has been withdrawn or denied, or until a granted extension 
has expired. This requirement applies separately to a station's analog 
channel and its primary digital stream. As with broadcasters electing 
Option One, we expect that broadcasters electing Option Two will air 
these DTV PSAs in addition to, and not in lieu of, PSAs on other issues 
of importance to their local communities. And, as under Option One, 
these transition PSAs must be closed-captioned. Stations are free to 
use PSAs produced in-house or provided by outside sources such as NAB 
or the networks.
    31. Required PSAs must be at least 30 seconds in length. A 
broadcaster may, however, choose to air two PSAs of no less than 15 
seconds in length in place of a single PSA of at least 30 seconds in 
length. Stations will also air at least one 30-minute informational 
program on the digital television (DTV) transition between 8 a.m.-11:35 
p.m. on at least one day prior to February 17, 2009.
    32. Beginning on November 10, 2008, all stations must begin a 100-
Day Countdown to the full-power transition. During this period, each 
station must air at least one of the following per day:
     Graphic Display. A graphic super-imposed during 
programming content that reminds viewers graphically there are ``x 
number of days'' until the full-power transition. They will be visually 
instructed to call a toll-free number and/or visit a Web site for 
details. The length

[[Page 15437]]

of time will vary from 5 to 15 seconds, at the discretion of the 
station.
     Animated Graphic. A moving or animated graphic that ends 
up as a countdown reminder. It would remind viewers that there are ``x 
number of days'' until the full-power transition. They will be visually 
instructed to call a toll-free number and/or visit a Web site for 
details. The length of time will vary from 5 to 15 seconds, at the 
discretion of the station.
     Graphic and Audio Display. Option 1 or option 
2 with an added audio component. The length of time will vary 
from 5 to 15 seconds, at the discretion of the station.
     Longer Form Reminders. Stations can choose from a variety 
of longer form options to communicate the countdown message. Examples 
might include an ``Ask the Expert'' segment where viewers can call in 
to a phone bank and ask knowledgeable people their questions about the 
transition. The length of these segments will vary from 2 minutes to 5 
minutes, at the discretion of the station (Some stations may also 
choose to include during newscasts DTV ``experts'' who may be asked 
questions by the anchor or reporter about the impending February 17, 
2009 deadline).
b. Option Two Reporting Requirements
    33. We also find that the record supports a requirement that 
broadcasters electing Option Two electronically report their consumer 
education efforts to the Commission on a quarterly basis, and place 
these reports in the broadcaster's public file, just as under Option 
One. These reports will be made available on the Commission's Web site 
in a centralized, searchable database. For each quarter of required 
consumer education, we require that broadcasters electing Option Two 
complete Form 388 and file it electronically in this docket (07-148) by 
the tenth day of the succeeding calendar quarter, with a copy placed in 
the station's public inspection file by that same date. Because of the 
short remaining duration of the full-power transition period, only a 
limited number of these quarterly reports will be required. The first, 
covering the first quarter of 2008, must be filed no later than April 
10, 2008, and the last, covering a station's final quarter of mandated 
educational efforts, will be filed no later than April 10, 2009 for 
most stations. Stations that are required to continue educational 
efforts beyond March 31, 2009 must also continue to file these 
quarterly reports up to and including the final quarter in which they 
have active educational requirements.
3. Broadcaster Education Option Three
a. Option Three Consumer Education Requirements
    34. This option is open only to noncommercial broadcasters. We find 
that the record also supports permitting some broadcasters to choose to 
comply with our rules by following the alternative plan offered by the 
Association of Public Television Stations. Under this option, a 
broadcaster must air 60 seconds per day of on-air consumer education, 
in variable timeslots, including at least 7.5 minutes per month between 
6 p.m. and 12 a.m. Beginning May 1, 2008, this requirement doubles, and 
beginning November 1, 2008, it increases again, to 180 seconds per day 
and 22.5 minutes per month between 6 p.m. and midnight. The transition 
PSAs must be closed-captioned. These requirements will expire for most 
broadcasters on March 31, 2009. Stations will also air a 30-minute 
informational program on the digital television (DTV) transition 
between 8 a.m.-11:35 p.m. on at least one day prior to February 17, 
2009. This requirement applies separately to its analog channel and its 
primary digital stream. As with broadcasters electing Option One, we 
expect that broadcasters electing Option Three will air these DTV PSAs 
in addition to, and not in lieu of, PSAs on other issues of importance 
to their local communities. Stations are free to use PSAs produced in-
house or provided by outside sources such as NAB or the networks. And, 
as under Option One, these transition PSAs must be closed-captioned.
b. Option Three Reporting Requirements
    35. We also find that the record supports a requirement that 
noncommercial broadcasters electing Option Three electronically report 
their consumer education efforts to the Commission on a quarterly 
basis, and place these reports in the broadcaster's public file, just 
as under Option One. These reports will be made available on the 
Commission's Web site in a centralized, searchable database. For each 
quarter of required consumer education, we require that broadcasters 
electing Option Three complete Form 388 and file it electronically in 
this docket (07-148) by the tenth day of the succeeding calendar 
quarter, with a copy placed in the station's public inspection file by 
that same date. Because of the short remaining duration of the full-
power transition period, only a limited number of these quarterly 
reports will be required. The first, covering the first quarter of 
2008, must be filed no later than April 10, 2008, and the last, 
covering a station's final quarter of mandated educational efforts, 
will be filed no later than April 10, 2009 for most stations. Stations 
that are required to continue educational efforts beyond March 31, 2009 
must also continue to file these quarterly reports up to and including 
the final quarter in which they have active educational requirements.
4. Low-Power, Class A, and Translator Stations
    36. Low-power (LP) broadcast stations are not required to cease 
broadcasting in analog as of February 17, 2009. Although some already 
have or plan to independently transition to digital-only broadcasting, 
many of these stations will continue to broadcast in analog after the 
conclusion of the full-power transition. Thus, many consumers may 
receive some programming in digital and some programming in analog 
after the transition date. Those consumers with analog televisions who 
are reliant on over-the-air broadcasting will need to acquire a digital 
to analog converter box to continue watching television after the 
transition. Recently, concerns have been raised, by the Community 
Broadcasters Association among others, about the fact that the majority 
of Coupon Eligible Converter Boxes (CECBs) certified by NTIA are not 
capable of ``passing through'' analog signals from the antenna to a 
connected set. As a result, LP stations (including Class A and 
translator stations) that continue to broadcast in analog will not be 
viewable to OTA viewers who rely on a converter box, unless they use 
one of the boxes with pass-through capability.
    37. This issue was raised before the Commission after the record in 
this rulemaking had closed, and we therefore do not have a record on 
it. Accordingly, we have an insufficient basis upon which to adopt 
consumer education requirements relating to this issue in the instant 
proceeding. Nonetheless, given that converter boxes are already on the 
shelves of many retailers, and coupons are in the process of being 
mailed to consumers, we recognize the urgency of the problem for those 
consumers who may have difficulty viewing these low power stations. We 
therefore urge all LP broadcasters, but particularly those that plan to 
continue analog-only broadcasting, to immediately begin educating their 
viewers about this issue. For instance, such stations could notify 
their viewers that (1) they are watching a low-power broadcast station 
that,

[[Page 15438]]

unlike full-power stations, may continue to offer analog service after 
February 17, 2009, and (2) viewers who plan to purchase a converter box 
in order to view digital signals should buy a model with analog pass-
through capability in order to continue watching that station. The LP 
station could direct viewers to the NTIA converter box coupon program, 
and in particular the NTIA listing of certified converter boxes. In 
addition, NTIA will mail a list of current coupon-eligible converter 
boxes, noting with an asterisk those that have analog pass-through 
capability, to each household that receives converter box coupons. We 
also urge industry and our private and public sector partners to do 
what they can to educate consumers generally about this situation, and 
to assist in the effort to ensure that no American loses a signal due 
to the transition.

B. Multichannel Video Programming Distributor Customer Bill Notices

    38. We will require that all MVPDs (e.g., DBS carriers, cable 
operators, open video system operators, private cable operators, etc.) 
provide notice of the full-power DTV transition to their subscribers in 
monthly bills or billing notices. To the extent that a given customer 
does not receive paper versions of either a bill or a notice of 
billing, that customer must be provided with equivalent monthly 
transition notices in whatever medium they receive information about 
their monthly bill. The notice must be provided as a ``bill stuffer'' 
or as part of an information section on the bill itself. It must be 
noticeable, and state that on February 17, 2009, full-power analog 
broadcasting will end, and analog-only televisions may be unable to 
display full-power broadcast programming unless the viewer takes 
action. It must also note that viewers can get more information by 
going to http://www.DTV.gov or calling the MVPD at a number provided, 
and more information about the converter box program by going to http://www.dtv2009.gov or calling the NTIA at 1-888-DTV-2009. The notice may 
also, at the MVPD's discretion, provide contact information for the DTV 
Transition Coalition. The message should be provided in the same 
language or languages as the bill, and explain clearly what impact, if 
any, the transition will have on the subscriber's access to MVPD 
service. For example, DBS carriers must provide additional notice to 
all subscribers who do not receive local broadcast signals via 
satellite. This additional notice would explain the steps that these 
subscribers would need to take to continue receiving broadcast signals, 
in particular the necessary steps if the subscriber relies on a tuner 
integrated into the DBS carrier's set-top box. The most important 
information may be to note that sets not connected to an MVPD service 
may need additional equipment (i.e. converter box) or may have to be 
replaced. MVPDs must begin including these monthly notices 30 days 
after the effective date of the rules and must continue including them 
monthly through March 2009. Beginning approximately one year before the 
full-power transition and running through March 2009 ensures that 
subscribers will be exposed to educational messages throughout the 
remainder of the transition, and will have sufficient opportunity to 
act on them.
    39. The Letter suggested that the Commission consider requiring, 
``as a license condition or through customer service or other consumer 
protection or public interest requirements, all multichannel video 
programming distributors (MVPDs) to insert periodic notices in customer 
bills that inform consumers about the digital television transition and 
their customers' future viewing options, with civil penalties for 
noncompliance.'' These notices would go to all MVPD subscribers and 
provide them with information about the full-power transition generally 
and about how it will affect their service specifically. The New York 
State Consumer Protection Board is primarily concerned that MVPD 
subscribers understand what effects, if any, the transition will have 
on their service. The Benton Foundation not only supported this 
proposal, as ``an optimal way to reach consumers that value television 
service,'' but also proposed a requirement that MVPDs run PSAs 
themselves. The National Cable and Telecommunications Association 
states in its comments that the cable industry has not only committed 
to exceed the Commission's proposal, but those of the commenters. The 
cable industry has committed to include DTV transition notices in 
subscriber bills, on a monthly basis beginning in 2008. Indeed, these 
commitments have been made not only to the Commission, but also to the 
Commerce Committees of both the U.S. House of Representatives and the 
U.S. Senate. NCTA argues that, given these commitments, the Commission 
should not impose any requirements for MVPD DTV education efforts.
    40. Of course, we welcome the efforts of NCTA and its members. We 
note, however, that the commitments of NCTA do not bind its member 
cable operators, and that, of course, it does not speak for all MVPDs. 
DIRECTV and EchoStar, while pledging active education efforts both for 
their subscribers and for OTA viewers state that they have no plans to 
provide periodic notices with bills. Verizon, similarly, opposes the 
use of notices in bills, on the grounds that they would be expensive, 
ineffective, and potentially counterproductive. We disagree with 
Verizon because the overall record in this proceeding indicates that 
bill notices would contribute significantly to consumer education 
efforts. Such notices would reach viewers who are engaged with 
television viewing and well positioned both to act on the information 
regarding any OTA sets they may have and to serve as a source of 
information for others.
    41. Several industry commenters object that the Commission does not 
have statutory authority to impose the notice requirement. We conclude, 
however, that we have ancillary authority to adopt notice requirements 
for Multichannel Video Programming Distributors under Titles I, III, 
and VI of the Communications Act of 1934, as amended (``Act''). Courts 
have long recognized that, even in the absence of explicit statutory 
authority, the Commission has authority to promulgate regulations to 
effectuate the goals and provisions of the Act if the regulations are 
``reasonably ancillary to the effective performance of the Commission's 
various responsibilities'' under the Act. The Supreme Court has 
established a two-part ancillary jurisdiction test: (1) The subject of 
the regulation must be covered by the Commission's general grant of 
jurisdiction under Title I of the Communications Act; and (2) the 
regulation must be reasonably ancillary to the Commission's statutory 
responsibilities. The requirements we adopt here regulate the 
disclosure obligations of companies providing services that fall within 
the Commission's jurisdiction under Titles I, III, and VI, advance our 
statutory obligation to promote the digital transition, and serve the 
public interest. We conclude, therefore, that we have ancillary 
jurisdiction to adopt DTV transition notice requirements in this 
proceeding.
    42. For the most part, commenters do not argue that the Commission 
lacks jurisdiction over either the DTV transition or MVPDs. Rather, 
they argue that requiring MVPDs to provide billing notices regarding 
the full-power DTV transition is not reasonably ancillary to our 
authority over either broadcast television or MVPDs. Verizon and NTCA 
both argue that there is no connection between multichannel

[[Page 15439]]

distribution and the full-power broadcast television transition, and 
that this would be a broadcast regulation imposed on parties not 
engaged in broadcasting. On the contrary, MVPDs are an inextricable 
part of the television market. Both DBS and cable have mandatory 
carriage requirements, and all MVPDs have requirements concerning 
retransmission of broadcast signals. Without the stations and viewers 
affected by this transition, MVPDs would be in a very different 
business. The Commission is statutorily obligated to promote the 
orderly transition to digital television, ``a critical step in the 
evolution of broadcast television.'' Further, the Commission is 
authorized to ``make such rules and regulations * * * as may be 
necessary in the execution of its functions,'' and to ``[m]ake such 
rules and regulations * * * not inconsistent with law, as may be 
necessary to carry out the provisions of this Act * * *''
    43. The rules we adopt today advance these statutory mandates and 
serve the public interest. USTA argues that the connection between such 
notices and the Commission's DTV transition authority is weak, because 
``the customers who would receive those notices do not rely on the 
broadcast signals that will cease on the transition date.'' Many of 
those very customers do in fact rely on broadcast signals for at least 
some of the televisions in their homes. Accurate and timely 
communication of the impending change from analog to digital 
transmission is a critical disclosure for all consumers. Not only will 
every DTV-educated consumer accelerate the spread of knowledge about 
the full-power transition, but as described in COAT's comments, many 
MVPD subscribers will in fact be directly impacted by the transition, 
even if only because they have some OTA sets in their home. 
Furthermore, broadcast channels carried on a system will tend to be 
clearer and crisper as a result of the broadcaster switch to digital, 
and every station broadcasting programming in HD, not just those 
carried pursuant to retransmission consent, will be available in HD. As 
discussed above, over half of consumers still are not aware of the 
impending full-power digital transition. Clearly, voluntary industry 
efforts to date have not been sufficient to ensure consumer awareness 
of the upcoming transition to digital television. Such consumer 
awareness is critical to our missions of promoting public safety and an 
orderly digital transition.
    44. Exercising ancillary jurisdiction to adopt DTV transition 
notice requirements for MVPDs is consistent with prior exercises of the 
Commission's authority. The Commission previously relied on its 
authority under the Act and the ACRA to impose an analog-only labeling 
requirement in order to promote the orderly transition to digital 
television. In addition, the Commission recently relied on its 
ancillary jurisdiction in requiring interconnected Voice over Internet 
Protocol (VoIP) service providers to distribute to their subscribers 
stickers or labels warning if E911 service may be limited or 
unavailable, and to instruct subscribers to place them on or near the 
equipment used in conjunction with the interconnected VoIP service. The 
Commission also has numerous other labeling and disclosure requirements 
designed to further its statutory objectives and to protect consumers. 
In sum, therefore, we conclude that we have ancillary authority to 
adopt DTV transition notice requirements for MVPDs.
    45. USTA makes two additional arguments about the limits of our 
ancillary jurisdiction in this case. First, it argues that because NTIA 
was given some express authority over DTV transition education, it 
``creates a strong presumption'' that Congress did not mean for the 
Commission to have any authority in this area at all. On the contrary, 
Congress had no need to give the Commission specific authority over any 
one element of the transition, because as discussed above we have 
general authority to promulgate rules to advance the transition. USTA 
also argues, again almost in passing, that the Commission ``may'' not 
be permitted to exercise ancillary jurisdiction in any manner that 
could be seen as content-related regulation of speech. In support of 
this argument, USTA cites only the 2002 DC Circuit decision that struck 
down the Commission's video description requirements. MPAA v. FCC can 
not, however, be reasonably read to impose such a sweeping rule. The 
Court's decision focuses on the inability of the Commission to rely on 
section 1 of the Act as a source of authority for restricting 
programming content. In this case, section 1 is not the primary source 
of the Commission's authority, and programming content is not at issue. 
More to the point, the MPAA Court pointed to a clear Congressional 
directive that specifically spoke to video description and limited the 
Commission's sphere of authority to the creation of a report. Here, on 
the other hand, Congress has endowed the Commission with general 
authority to prescribe regulations that will ``promote the orderly 
transition to digital television.''

C. Consumer Electronics Manufacturer Notices

    46. We require that parties that manufacture, import, or ship 
interstate television receivers and devices designed to work with 
television receivers (including digital-to-analog converter boxes like 
the NTIA Coupon Eligible Converter Boxes) include information with 
those devices explaining to consumers what effect, if any, the full-
power DTV transition will have on their use. This information must be 
included with all devices shipped, beginning on the effective date of 
these rules, until March 31, 2009. As with the notices included in MVPD 
bills, the information may be in any form preferred by the 
manufacturer. It must be noticeable, contain the minimum information 
about the full-power transition described in paragraph 12, above, and 
explain clearly what impact, if any, the transition will have on the 
use of the device. For example, with receivers with a digital OTA 
tuner, one sufficient form of notice would be a sticker on the outside 
of the packaging that reads: ``Digital Television Transition Notice: 
This television receiver will display over the air programming after 
the end of full-power analog broadcasting on February 17, 2009. Some 
older television receivers may need a converter box to display over the 
air digital programming, but should continue to work as before for 
other purposes (e.g., for watching LPTV, Class A, or translator 
stations still broadcasting in analog, watching pre-recorded movies, or 
playing video games). For more information, please call [the 
manufacturer], go to http://www.DTV.gov, or, for converter box 
information, go to http://www.dtv2009.gov or call the NTIA at 1-888-
DTV-2009.''
    47. As noted above, this requirement applies not only to television 
receivers, but also to electronic devices that are designed to be 
connected to, and are dependent on, television receivers. Notices 
included with these devices, which include DVD players and recorders, 
VCRs, and monitors, must not only provide the basic information about 
the transition. They must also make clear that, after the transition, 
the device will not serve its function, in regard to full-power OTA 
signals, unless connected to a device with a digital tuner.
    48. The Letter suggested that the Commission consider requiring 
``manufacturers to include information

[[Page 15440]]

with television receivers and related devices about the transition, 
with civil penalties for noncompliance.'' The only commenter to oppose 
this proposal, LG, conceived of it applying only to ``television 
sets,'' and argued that the existing Labeling Order already resolves 
this issue. On the contrary, the Labeling Order's requirements apply 
only to sets without a digital receiver, which are no longer being 
manufactured for the U.S. market. Therefore the two sets of 
requirements do not overlap at all. The Benton Foundation suggests that 
the included information should be standardized by the Commission.
    49. No commenter challenged the Commission's statutory or 
constitutional authority to impose this requirement. As in the analog 
receiver labeling order, our authority to impose this requirement is 
ancillary to our responsibilities under the Communications Act and the 
All Channel Receivers Act. An electronic device that is dependent for 
its use, in whole or in part, on over-the-air reception of television 
broadcast channels, is an ``apparatus'' ``incidental to * * * 
transmission'' of television broadcasts and, therefore, within the 
scope of our Title I subject matter jurisdiction. As discussed in more 
detail in paragraphs 5 and 19-23, above, the Commission is statutorily 
obligated to promote the orderly transition to digital television. 
Ensuring that consumers know how it will affect their devices, and why 
they may suddenly stop working or change their functionality, is 
essential to achieving that goal.

D. DTV.gov Partner Consumer Education Reporting

    50. We require DTV.gov Transition Partners to report their consumer 
education efforts, as a condition of continuing Partner status. Reports 
should be filed into the record of this proceeding on a quarterly 
basis, beginning on April 10, 2008. Additionally, individual copies of 
the reports should be sent, via electronic mail or hard copy format, to 
the Chief and to the Chief of Staff of the Commission's Consumer and 
Governmental Affairs Bureau, as well as sent electronically to 
[email protected]. This is in line with the Letter' suggestion that 
the Commission consider requiring ``partners identified on the 
Commission's digital television Web site to report their specific 
consumer outreach efforts.''
    51. We appreciate the efforts made so far by our DTV.gov Partners 
to keep us apprised of their consumer education and outreach 
activities. As we move closer to the full-power transition date, the 
Commission will necessarily be accelerating its efforts, and further 
emphasizing its role as the coordinator and clearinghouse for DTV 
transition education. As NAB and MSTV observe, ``coordination is 
critical to ensure that, in addition to messaging, industry, government 
agencies and other stakeholders are not either (1) unnecessarily 
duplicating consumer education efforts or (2) failing to target key 
segments of the American population. The need for coordination is 
further underscored by the limited financial resources of the 
Commission.'' No commenters opposed this proposal, and several 
supported it. Furthermore, NAB and MSTV describe the DTV Transition 
Coalition as already committed to regularly updating the Commission. 
Therefore, moving forward we will require that DTV.gov Partners provide 
us with quarterly updates on their specific consumer outreach efforts, 
and we anticipate that we will use this full range of information to 
work with Partners on future education efforts. Any Partner listed that 
fails to work with the Commission in this process may lose Partner 
status and be removed from the DTV.gov Partners page.

E. Consumer Electronics Retailer Training and Education

    52. We adopt the suggestion in the letter that the Commission work 
``with NTIA to require retailers who participate in the converter box 
coupon program to detail their employee training and consumer 
information plans and have Commission staff conduct spot inspections to 
ascertain whether such objectives are being met at stores.'' A number 
of commenters are in favor of this proposal. The Telecommunications 
Regulatory Board of Puerto Rico supports it because ``direct contact 
with customers will play a crucial role in educating people on the DTV 
transition.'' We agree that retailers can play a central role, and we 
plan to work with NTIA to ensure that retailers are fulfilling their 
commitment to the converter box program. As the Consumer Electronics 
Retailers Coalition has explained, consumer electronics retailers 
independently planned to engage in extensive employee training and 
consumer outreach regarding the transition. These outreach efforts 
began early , as Radio Shack explains, with a standardized tip sheet 
developed and made available for distribution by all retailers. Several 
large retailers, including Circuit City, Target, and Best Buy, assured 
the Commission of their intention to engage in extensive outreach, and 
have since demonstrated an admirable degree of focus, ingenuity, and 
dedication to the needs of viewers as they approach the digital 
transition. Enforcement Bureau field agents will regularly visit 
participating retailer stores across the country to assess their 
employee training and consumer education efforts and whether the 
retailers' objectives are being met at stores. Through ongoing and 
close coordination, the Enforcement Bureau will provide the results of 
these site visits to NTIA for review and appropriate action. We 
appreciate and encourage these efforts on the part of retailers, 
particularly participants in the NTIA converter box program.

F. Other Proposals

1. Federal Universal Service Low-Income Program Participant Notices
    53. We will require that all eligible telecommunications carriers 
(ETCs) that receive federal universal service funds provide DTV 
transition information in the monthly bills of their Lifeline/Link-Up 
customers. Lifeline and Link-Up (Lifeline/Link-Up) are universal 
service low-income programs. Lifeline provides low-income consumers 
with discounts off of the monthly cost of telephone service for a 
single telephone line in their principal residence, while Link-Up 
provides low-income consumers with discounts off of the initial costs 
of installing telephone service. Similar to the requirements for MVPDs, 
the notice must be provided as a ``bill stuffer'' or as part of an 
information section on the bill itself. It must be noticeable, and 
state that on February 17, 2009, full-power analog broadcasting will 
end, and analog-only televisions may be unable to display full-power 
broadcast programming unless the viewer takes action. It must also note 
that viewers can get more information by going to http://www.DTV.gov, 
and more information about the converter box program by going to http://www.dtv2009.gov or calling the NTIA at 888-DTV-2009. The notice may 
also, at the ETC's discretion, provide contact information for the DTV 
Transition Coalition. The notice should be provided in the same 
language or languages as the bill. If the ETC's Lifeline/Link-Up 
customer does not receive paper versions of either a bill or a notice 
of billing, then that customer must be provided with equivalent monthly 
transition notices in whatever medium they receive information about 
their monthly bill. Finally, ETCs that receive federal universal 
service funds must provide this same basic information as part of any 
other Lifeline or Link-Up publicity campaigns. The customer bill notice 
requirement will

[[Page 15441]]

run concurrently with the MVPD bill notice requirement (i.e., from 30 
days after the effective date of these rules through March 2009), and 
the publicity requirement will run for the same period.
    54. The Letter suggested that the Commission ``require, as an 
interim measure, that telecommunications carriers that receive funds 
under the Low Income Federal universal service program * * * notify 
each of their low income customers of the digital transition and 
include such a notice in their required Lifeline and Link-Up publicity 
efforts.'' The strongest support for this requirement came from the New 
York State Consumer Protection Board, which suggested that ``all 
telecommunications providers notify their low-income customers of the 
transition through their current Lifeline outreach efforts.'' The 
Benton Foundation and the Commission's Consumer Affairs Committee both 
suggest that we should ``encourage'' telecommunications companies to 
engage in this type of outreach, particularly with their low income 
customers, but they do not support a mandate. Several commenters oppose 
the requirement, arguing that the Commission lacks a sufficient nexus 
to exercise ancillary jurisdiction. All argue that this would be 
unconstitutional compelled speech. We disagree with these commenters 
for the reasons explained in Section G, below. Verizon also argues that 
this type of notice would confuse subscribers rather than educate them, 
and that these notices would lead to flooding phone company call 
centers with questions about the DTV transition. Finally, NTCA claims 
that the IRFA is deficient because it does not mention LECs. We reject 
NTCA's argument. The Commission provided sufficient notice, under the 
APA, that regulation of LECs was being considered. Furthermore, the 
Commission's FRFA has considered the possible economic impact on LECs 
as required under the RFA. We agree with the consumer advocates, and 
adopt the above proposals.
    55. We conclude that we have authority under Title I of the Act to 
impose the DTV Consumer Education requirements on ETCs that receive 
federal universal service funds. Ancillary jurisdiction may be 
employed, in the Commission's discretion, when Title I of the Act gives 
the Commission subject matter jurisdiction over the service to be 
regulated and the assertion of jurisdiction is ``reasonably ancillary 
to the effective performance of [its] various responsibilities.'' Both 
predicates for ancillary jurisdiction are satisfied here.
    56. First, section 2(a) of the Act grants the Commission subject 
matter jurisdiction over [the services provided by] telecommunications 
carriers. Section 254(e) provides that only eligible telecommunications 
carriers are eligible to receive federal universal service funds. 
Therefore, all ETCs that receive federal universal service funds are 
telecommunications carriers, and as a result, are the subject of the 
Commission's subject matter jurisdiction.
    57. Second, our analysis requires us to evaluate whether imposing 
the DTV Consumer Education requirements is reasonably ancillary to the 
effective performance of the Commission's various responsibilities. We 
find that sections 309 and 1 of the Act provide the requisite nexus. 
Section 309 requires the Commission to ``take such actions as are 
necessary * * * to terminate all licenses for full-power television 
stations in the analog television service, and to require the cessation 
of broadcasting by full-power stations in the analog television 
service, by February 18, 2009. * * * '' In a survey on the DTV 
transition, the GAO found that over-the-air households are more likely 
to have lower incomes than cable or satellite households and that 
approximately 48 percent of exclusive over-the-air viewers have 
household incomes less than $30,000. The Commission already has in 
place the Lifeline/Link-Up programs that provide discounts off the 
initial installation and monthly costs of telephone service to millions 
of low-income consumers. Because the DTV transition will greatly affect 
lower income households and the Lifeline/Link-Up programs already serve 
this same demographic, we have an already established communication 
path that can be used to further the success of the DTV transition. By 
communicating with these lower income households, we ensure that all 
Americans will have the knowledge they need in order to prepare for the 
DTV broadcast transition. We therefore find that the extension of the 
DTV Consumer Education requirements to ETCs that receive federal 
universal service funds and are required to advertise to low-income 
consumers is reasonably ancillary to the effective performance of our 
duty to ensure the success of the DTV transition under the Digital 
Television and Public Safety Act of 2005.
    58. Further, section 1 of the Act charges the Commission with 
responsibility for making available ``a rapid, efficient, Nation-wide, 
and world-wide wire and radio communication service * * * for the 
purpose of promoting safety of life and property through the use of 
wire and radio communication.'' In light of our statutory mandate to 
clear the broadcast spectrum for public safety use, it is important 
that the Commission take all steps necessary to ensure that the DTV 
transition occurs without delay. Further, Americans' reliance on their 
televisions for emergency alerts through the country's Emergency Alert 
System requires that we ensure that all Americans have the ability to 
receive emergency notifications through their televisions. If Americans 
are unable to receive this potential life-saving information because 
they are unaware of the DTV broadcast transition, this might result in 
tragic consequences. Therefore, ensuring that all Americans receive 
notice of the upcoming DTV transition, including those that have been 
identified as at risk of not receiving the necessary information, is a 
critical step to achieving our statutory mandate to promote public 
safety. Thus, we conclude that extending the DTV Consumer Education 
requirements to ETCs that receive federal universal service funds is 
``reasonably ancillary to the effective performance of [our] 
responsibilities'' under sections 309 and 1 of the Act, and ``will 
`further the achievement of long-established regulatory goals' '' to 
ensure the success of the DTV transition and promote the safety of life 
and property.
2. 700 MHz Auction Winner Consumer Education Reporting
    59. We will require winning bidders in the 700 MHz spectrum 
auctions (Auctions 73 and 76) to detail what, if any, DTV transition 
consumer education efforts they are conducting. The Letter suggested 
that, ``given the significant stake of 700 MHz auction winners in a 
successful transition, the Commission could require those entities to 
report their specific consumer outreach efforts.'' The rule we adopt 
conforms with this proposal. No commenters expressed opposition to this 
proposal. Specifically, during the DTV transition we will require each 
entity obtaining a 700 MHz license to file this report with the 
Commission on a quarterly basis, with the first such report due by the 
tenth day of the first calendar quarter following the initial grant of 
the license authorization that the entity holds.
3. Consumer Contact Points
    60. With respect to comments regarding the need for a toll-free 
call center staffed with people skilled in answering questions about 
the full-

[[Page 15442]]

power DTV transition, we emphasize that staff in the Commission's 
existing Consumer Center, including Spanish speakers, are available to 
take calls and e-mails about all aspects of the DTV transition and have 
been specifically trained to inform and assist consumers with any 
questions or concerns they may have. In addition, we note that NTIA, as 
part of its DTV transition education initiative, has established a 
center devoted specifically to taking calls about digital-to-analog 
converter boxes and the coupon program. Since January 1, 2008, the 
center has been staffed with representatives able to field and respond 
to calls in multiple languages, including English, Spanish, Chinese, 
Vietnamese, Tagalog, Russian, and French. The Commission and NTIA are 
working to coordinate their consumer center activities with the goal of 
ensuring that calls and e-mails to either agency, in whatever language, 
are handled in a thorough, consistent matter and that consumers can be 
transferred, when appropriate, from one agency to the other.

G. First Amendment Analysis

    61. The actions we take in this Order to ensure that television 
viewers are fully informed about the digital transition are entirely 
consistent with the First Amendment, because they are a narrowly 
tailored means of advancing the government's substantial interests in 
furthering the digital transition. The government's interests in 
promoting the continued availability of free television programming and 
in ensuring a smooth transition from analog to digital full-power 
television service are undoubtedly substantial. Free television service 
is a vital part of the Nation's communications system, and is 
particularly important for viewers who cannot afford other means of 
receiving video programming. In order to ensure uninterrupted access to 
over-the-air television programming after the transition, it is 
essential that the viewing public understand that full power analog 
signals will cease on February 17, 2009, and that television equipment 
without a digital tuner will require additional equipment or 
connections to continue receiving programming after that date.
    62. As discussed above, the record indicates that a substantial 
number of households are at risk of losing television service after 
February 17, 2009. Approximately 22.5 million households rely solely on 
over-the-air broadcast television, and of those households only seven 
percent currently own a digital television set. Millions of households 
subscribing to an MVPD service have at least one set receiving over-
the-air television signals. The record indicates, however, that the 
majority of Americans remain unaware of the DTV transition. One recent 
survey reveals that 51.3% of Americans have no idea that the DTV 
transition is taking place, and only 19.8% are ``very much aware'' of 
the transition. The government thus has a substantial interest in 
ensuring that the public is fully informed about the DTV transition and 
the steps necessary to continue receiving over-the-air broadcast 
signals after the transition.
    63. The consumer education requirements we adopt today are narrowly 
tailored to advance these substantial governmental interests. Our rules 
are targeted at the specific industry groups that are best positioned 
to reach households most at risk of losing television service in 
February 2009. PSAs and crawls transmitted by the over-the-air 
broadcasters are, by definition, well-calculated to reach viewers of 
over-the-air television. But the record also shows that millions of 
MVPD customers use over-the-air broadcast as a secondary source of 
television service. Requiring MVPDs to provide information regarding 
the digital transition in their bill inserts serves to ensure that MVPD 
households with additional over-the-air analog televisions will be 
prepared for the digital transition. Likewise, telecommunications 
carrier participants in the Low Income Federal Universal Service 
Program are uniquely situated to reach low-income households--one of 
the consumer groups identified as most at risk of losing television 
service after the transition. And the steps we take with regard to 
manufacturers and retailers recognize the importance to consumers of 
information provided at the point-of-sale regarding the capabilities of 
the equipment that they are purchasing.
    64. Industry groups have acknowledged the significant role they 
must play in informing consumers about the transition. Thus, NAB 
reports that the broadcast industry has embarked on an ``unparalleled 
and unprecedented'' ``multi-faceted'' consumer education campaign 
designed to ``reach out to all demographics, all geographical areas, 
urban and rural communities, the young and the old'' that includes both 
PSAs and crawls. NCTA reports that the cable industry has launched a 
$200 million digital TV transition consumer education campaign which 
``seeks to reach all cable customers and millions of non-cable viewers 
with useful information about the transition to digital television'' 
that includes invoice messages on billing statements. DBS providers, 
the consumer electronics industry, retailers, and video and telephone 
service providers have all voluntarily committed to participate in 
efforts to educate the public about the DTV transition. Thus, to a 
large extent, the measures we adopt today do not impose an additional 
burden on the affected industries beyond their current voluntary 
efforts..
    65. Despite their stake in the successful completion of the digital 
transition, broadcasters nonetheless argue that mandated PSAs and 
crawls constitute compelled speech in violation of the First Amendment. 
We disagree. First, we note that a less rigorous standard of First 
Amendment scrutiny applies where broadcasting is at issue. Even if this 
were not the case, the government has broad powers to require the 
disclosure of ``factual and uncontroversial information'' where 
commercial speech is concerned, especially to ``dissipate the 
possibility of consumer confusion or deception,'' as long as such 
requirements are reasonably related to the government's regulatory 
goals. Here, the broadcaster PSAs and crawls we require are needed to 
eliminate any confusion stemming from the continuing public ignorance 
of the digital transition--in particular, they are necessary to ensure 
that over-the-air viewers are not misled into thinking that the analog 
signals that are now being transmitted will remain available after 
February 17, 2009. We also emphasize that the information we require 
about the digital transition is purely factual and not subject to 
dispute. And so far as the broadcasters are concerned, our requirements 
involve commercial speech, since they relate directly to the 
broadcasters' economic interest in ensuring that viewers maintain 
access to broadcast television and successfully transition to digital 
television.
    66. Similarly, we are not persuaded by the First Amendment 
objections raised by video service and telephone providers. Both 
industry groups have a direct link to viewers who will be affected by 
the transition, and through direct communication with their customers 
they are invaluable in ensuring that the American public is prepared 
for the transition. Requiring MVPDs and Low Income Federal Universal 
Service Program participants to send notices to their customers about 
the DTV transition is thus a reasonable means of ensuring that word 
gets out to all groups that will be affected by the transition. It is 
thus a narrowly tailored means of advancing the government's

[[Page 15443]]

substantial interests in ensuring a smooth and orderly transition.
    67. Nothing in the Supreme Court's plurality decision in Pacific 
Gas & Elec. Co. v. Public Utility Comm'n of Calif., 475 U.S. 1 (1986), 
is to the contrary. In that case, the State agency ordered a utility to 
include in its billing envelopes a third-party newsletter containing a 
message with which the company disagreed. The purpose of the agency 
order was, among other things, to assist groups * * * that challenge 
[the utility] in the Commission's ratemaking proceedings in raising 
funds.'' The agency order thus did ``not simply award access to the 
public at large; rather, it discriminate[d] on the basis of the 
viewpoints of the selected speakers.'' In this case, by contrast, the 
message we require is purely factual and noncontroversial--it must only 
describe when the transition will occur, the listing of how consumers 
can obtain additional information, a very basic explanation of 
potential impact on the consumer and actions the consumer may take. 
There is nothing in the required disclosure that could interfere with 
the provider's ability to communicate its own message, and indeed the 
MVPD or telephone provider may use the opportunity to market its own 
service. For this reason, the requirements fall comfortably within the 
government's power to order reasonable disclosures to serve the public 
interest, and will likewise empower consumers to take actions necessary 
to adjust to the digital transition.

IV. Procedural Matters

A. Final Regulatory Flexibility Analysis

    68. As required by the Regulatory Flexibility Act of 1980 
(``RFA''), the Commission has prepared a Final Regulatory Flexibility 
Analysis (``FRFA'') relating to the Report and Order (FCC 08-56). The 
FRFA, which was contained in Appendix A of the Report and Order, is set 
forth below.
    69. As required by the RFA, an Initial Regulatory Flexibility 
Analysis (IRFA) was incorporated into the Notice of Proposed Rulemaking 
(Notice). The Commission sought written public comment on the proposals 
in the Notice, including comment on the IRFA. The comments responsive 
to the IRFA are discussed below. This present Final Regulatory 
Flexibility Analysis (FRFA) conforms to the RFA.
1. Need for, and Objectives of, the Report and Order
    70. This Report and Order adopts rules requiring industry to 
participate in a coordinated, nationwide, consumer outreach campaign. 
Despite extensive consumer outreach efforts by the Commission and 
others, a large percentage of the public is not sufficiently informed 
about the DTV transition. This is a serious concern because the many 
benefits of the transition could be severely limited by insufficient 
consumer awareness. Therefore, this Report and Order adopts a number of 
proposals based on specific potential Commission initiatives raised by 
Congressmen Dingell and Markey. Our goals in doing so are to further 
educate consumers about the digital television transition; to engage 
all sectors of the television industry in support of that transition; 
and, in so doing, to facilitate the nation's transition to digital 
broadcast television.
    71. First, the rules require all full-power television broadcasters 
to provide on-air transition education to their viewers. Broadcasters 
must comply with one of three alternative sets of rules in providing 
such information to their viewers and must report these consumer 
education and outreach efforts to the Commission and the public. 
Second, MVPDs must provide monthly notices about the DTV transition in 
their customer billing statements. Third, manufacturers of television 
receivers and related devices must provide notice to consumers of the 
transition's impact on that equipment. Fourth, DTV.gov Partners must 
provide the Commission with regular updates on their consumer education 
efforts. Fifth, companies participating in the Low Income Federal 
Universal Service Program must provide notice of the transition to 
their low income customers and potential customers. Sixth, the winners 
of the 700 MHz spectrum auction must report their consumer education 
efforts to the Commission and the public.
2. Summary of Issues Raised by Public Comments in Response to the IRFA
    72. We received one comment in response to the IRFA. The Reply 
Comments of the National Telecommunications Cooperative Association and 
the Organization for the Promotion and Advancement of Small 
Telecommunications Companies (Collectively, NTCA/OPASTCO) filed 
comments expressing concern about the lack of reference to local 
exchange carriers (LECs) in Section C of the IRFA. NTCA/OPASTCO argued 
that the absence of LECs from the IRFA constituted a failure to 
consider those operators, thus rendering the IRFA deficient as to small 
telephone providers. We disagree, and find that sufficient notice was 
clearly provided to LECs and their representatives, as demonstrated by 
the comments and replies filed in this docket. We find that the 
interests of small operators, like NTCA/OPASTCO's members, have been 
considered throughout the rulemaking process.
3. Description and Estimate of the Number of Small Entities to Which 
the Report and Order Will Apply
    73. 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 defines the term 
``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small business concern'' 
under Section 3 of the Small Business Act. 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). The rules adopted herein will directly affect 
small television broadcast stations, small MVPDs (cable operators and 
satellite carriers) and other small entities, such as LECs, consumer 
electronics (CE) retailers and CE manufacturers. A description of these 
small entities, as well as an estimate of the number of such small 
entities, is provided below.
    74. Television Broadcasting. The SBA defines a television 
broadcasting station as a small business if such station has no more 
than $13.0 million in annual receipts. Business concerns included in 
this industry are those ``primarily engaged in broadcasting images 
together with sound.'' The Commission has estimated the number of 
licensed commercial television stations to be 1,376. According to 
Commission staff review of the BIA Publications, Inc. Master Access 
Television Analyzer Database (BIA) on March 30, 2007, about 986 of an 
estimated 1,374 commercial television stations (or approximately 72 
percent) have revenues of $13.0 million or less and thus qualify as 
small entities under the SBA definition. We note, however, that, in 
assessing whether a business concern qualifies as small under the above 
definition, business (control) affiliations must be included. Our 
estimate, therefore, likely overstates the number of small entities 
that might be affected by our action, because the revenue figure on 
which it is based does not include or aggregate revenues from 
affiliated companies. The Commission has estimated the number of 
licensed noncommercial educational (NCE) television stations to be 380. 
The

[[Page 15444]]

Commission does not compile and otherwise does not have access to 
information on the revenue of NCE stations that would permit it to 
determine how many such stations would qualify as small entities.
    75. In addition, an element of the definition of ``small business'' 
is that the entity not be dominant in its field of operation. We are 
unable at this time to define or quantify the criteria that would 
establish whether a specific television station is dominant in its 
field of operation. Accordingly, the estimate of small businesses to 
which rules may apply do not exclude any television station from the 
definition of a small business on this basis and are therefore over-
inclusive to that extent. Also as noted, an additional element of the 
definition of ``small business'' is that the entity must be 
independently owned and operated. We note that it is difficult at times 
to assess these criteria in the context of media entities and our 
estimates of small businesses to which they apply may be over-inclusive 
to this extent.
    76. Class A TV, LPTV, and TV translator stations. The rules adopted 
herein may also apply to licensees of Class A TV stations, low power 
television (LPTV) stations, and TV translator stations, as well as to 
potential licensees in these television services. The same SBA 
definition that applies to television broadcast licensees would apply 
to these stations. The SBA defines a television broadcast station as a 
small business if such station has no more than $13.0 million in annual 
receipts. Currently, there are approximately 567 licensed Class A 
stations, 2,227 licensed LPTV stations, 4,518 licensed TV translators 
and 11 TV booster stations. Given the nature of these services, we will 
presume that all of these licensees qualify as small entities under the 
SBA definition. We note, however, that under the SBA's definition, 
revenue of affiliates that are not LPTV stations should be aggregated 
with the LPTV station revenues in determining whether a concern is 
small. Our estimate may thus overstate the number of small entities 
since the revenue figure on which it is based does not include or 
aggregate revenues from non-LPTV affiliated companies. We do not have 
data on revenues of TV translator or TV booster stations, but virtually 
all of these entities are also likely to have revenues of less than 
$13.0 million and thus may be categorized as small, except to the 
extent that revenues of affiliated non-translator or booster entities 
should be considered.
    77. Cable and Other Subscription Programming. The SBA has developed 
a small business size standard for cable and other subscription 
programming, which includes all such companies generating $13.5 million 
or less in revenue annually. This category includes, among others, 
cable operators, direct broadcast satellite services, fixed-satellite 
services, home satellite dish services, multipoint distribution 
services, multichannel multipoint distribution service, instructional 
television fixed service, local multipoint distribution service, 
satellite master antenna television systems, and open video systems. 
According to 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. Consequently, the 
Commission estimates that the majority of providers in this service 
category are small businesses that may be affected by the rules adopted 
herein. We address below each service individually to provide a more 
precise estimate of small entities.
    78. Cable Television Distribution Services. Since 2007, these 
services have been defined within the broad economic census category of 
Wired Telecommunications Carriers; that category is defined as follows: 
``This industry comprises establishments primarily engaged in operating 
and/or providing access to transmission facilities and infrastructure 
that they own and/or lease for the transmission of voice, data, text, 
sound, and video using wired telecommunications networks. Transmission 
facilities may be based on a single technology or a combination of 
technologies.'' The SBA has developed a small business size standard 
for this category, which is: All such firms having 1,500 or fewer 
employees. To gauge small business prevalence for these cable services 
we must, however, use current census data that are based on the 
previous category of Cable and Other Program Distribution and its 
associated size standard; that size standard was: all such firms having 
$13.5 million or less in annual receipts. According to Census Bureau 
data for 2002, there were a total of 1,191 firms in this previous 
category that operated for the entire year. Of this total, 1,087 firms 
had annual receipts of under $10 million, and 43 firms had receipts of 
$10 million or more but less than $25 million. Thus, the majority of 
these firms can be considered small.
    79. Cable System Operators (Rate Regulation Standard). The 
Commission has developed its own small business size standard for cable 
system operators, for purposes of rate regulation. Under the 
Commission's rules, a ``small cable company'' is one serving fewer than 
400,000 subscribers nationwide. The most recent estimates indicate that 
there were 1,439 cable operators who qualified as small cable system 
operators at the end of 1995. Since then, some of those companies may 
have grown to serve more than 400,000 subscribers, and others may have 
been involved in transactions that caused them to be combined with 
other cable operators. Consequently, the Commission estimates that 
there are now fewer than 1,439 small entity cable system operators that 
may be affected by the rules and policies adopted herein.
    80. Cable System Operators (Telecom Act Standard). The 
Communications Act of 1934, as amended, also contains a size standard 
for small cable system operators, which is ``a cable operator that, 
directly or through an affiliate, serves in the aggregate fewer than 1 
percent 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 67,700,000 subscribers in the United States. Therefore, an 
operator serving fewer than 677,000 subscribers shall be deemed a small 
operator, if its annual revenues, when combined with the total annual 
revenues of all its affiliates, do not exceed $250 million in the 
aggregate. Based on available data, the Commission estimates that the 
number of cable operators serving 677,000 subscribers or fewer, totals 
1,450. The Commission neither requests nor collects information on 
whether cable system operators are affiliated with entities whose gross 
annual revenues exceed $250 million, and therefore is unable, at this 
time, to estimate more accurately the number of cable system operators 
that would qualify as small cable operators under the size standard 
contained in the Communications Act of 1934.
    81. Satellite Carriers. The term ``satellite carrier'' includes 
entities providing services as described in 17 U.S.C. 119(d)(6) using 
the facilities of a satellite or satellite service licensed under Part 
25 of the Commission's rules to operate in Direct Broadcast Satellite 
(DBS) or Fixed-Satellite Service (FSS) frequencies. As a general 
practice, not mandated by any regulation, DBS licensees usually own and 
operate their own satellite facilities as well as package the 
programming they offer to their subscribers. In contrast, satellite 
carriers using FSS facilities often lease capacity from another entity 
that is

[[Page 15445]]

licensed to operate the satellite used to provide service to 
subscribers. These entities package their own programming and may or 
may not be Commission licensees themselves. In addition, a third 
situation may include an entity using a non-U.S. licensed satellite to 
provide programming to subscribers in the United States pursuant to a 
blanket earth station license.
    82. Direct Broadcast Satellite (DBS) Service. DBS service is a 
nationally distributed subscription service that delivers video and 
audio programming via satellite to a small parabolic ``dish'' antenna 
at the subscriber's location. Because DBS provides subscription 
services, DBS falls within the SBA-recognized definition of Cable and 
Other Subscription Programming. This definition provides that a small 
entity is one with $13.5 million or less in annual receipts. Currently, 
only two operators--DirecTV and EchoStar Communications Corporation 
(``EchoStar'')--hold licenses to provide DBS service, which requires a 
great investment of capital for operation. Both currently offer 
subscription services and report annual revenues that are in excess of 
the threshold for a small business. Because DBS service requires 
significant capital, we believe it is unlikely that a small entity as 
defined by the SBA would have the financial wherewithal to become a DBS 
licensee. Nevertheless, given the absence of specific data on this 
point, we acknowledge the possibility that there are entrants in this 
field that may not yet have generated $13.5 million in annual receipts, 
and therefore may be categorized as a small business, if independently 
owned and operated.
    83. Fixed-Satellite Service (``FSS''). The FSS is a 
radiocommunication service between earth stations at a specified fixed 
point or between any fixed point within specified areas and one or more 
satellites. The FSS, which utilizes many earth stations that 
communicate with one or more space stations, may be used to provide 
subscription video service. Therefore, to the extent FSS frequencies 
are used to provide subscription services, FSS falls within the SBA-
recognized definition of Cable and Other Subscription Programming, 
which includes all such companies generating $13.5 million or less in 
revenue annually. Although a number of entities are licensed in the 
FSS, not all such licensees use FSS frequencies to provide subscription 
services. Both of the DBS licensees (EchoStar and DirecTV) have 
indicated interest in using FSS frequencies to broadcast signals to 
subscribers. It is possible that other entities could similarly use FSS 
frequencies, although we are not aware of any entities that might do 
so.
    84. Private Cable Operators (PCOs) also known as Satellite Master 
Antenna Television (SMATV) Systems. PCOs, also known as SMATV systems 
or private communication operators, are video distribution facilities 
that use closed transmission paths without using any public right-of-
way. PCOs acquire video programming and distribute it via terrestrial 
wiring in urban and suburban multiple dwelling units such as apartments 
and condominiums, and commercial multiple tenant units such as hotels 
and office buildings. The SBA definition of small entities for Cable 
and Other Subscription Programming includes PCOs and, thus, small 
entities are defined as all such companies generating $13.5 million or 
less in annual receipts. Currently, there are more than 150 members in 
the Independent Multi-Family Communications Council (IMCC), the trade 
association that represents PCOs. Individual PCOs often serve 
approximately 3,000-4,000 subscribers, but the larger operations serve 
as many as 15,000-55,000 subscribers. In total, PCOs currently serve 
approximately one million subscribers. 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 PCOs, we believe that a substantial number of PCOs qualify 
as small entities.
    85. Home Satellite Dish (HSD) Service. Because HSD provides 
subscription services, HSD falls within the SBA-recognized definition 
of Cable and Other Subscription Programming, which includes all such 
companies generating $13.5 million or less in revenue annually. HSD or 
the large dish segment of the satellite industry is the original 
satellite-to-home service offered to consumers, and involves the home 
reception of signals transmitted by satellites operating generally in 
the C-band frequency. Unlike DBS, which uses small dishes, HSD antennas 
are between four and eight feet in diameter and can receive a wide 
range of unscrambled (free) programming and scrambled programming 
purchased from program packagers that are licensed to facilitate 
subscribers' receipt of video programming. There are approximately 30 
satellites operating in the C-band, which carry more than 500 channels 
of programming combined; approximately 350 channels are available free 
of charge and 150 are scrambled and require a subscription. HSD is 
difficult to quantify in terms of annual revenue. HSD owners have 
access to program channels placed on C-band satellites by programmers 
for receipt and distribution by MVPDs. Commission data show that, as of 
June 2005, there were 206,358 households authorized to receive HSD 
service. The Commission has no information regarding the annual revenue 
of the four C-Band distributors.
    86. Open Video Systems (OVS). The OVS framework provides 
opportunities for the distribution of video programming other than 
through cable systems. Because OVS operators provide subscription 
services, OVS falls within the SBA-recognized definition of Cable and 
Other Subscription Programming, which provides that a small entity is 
one with $13.5 million or less in annual receipts. The Commission has 
certified 25 OVS operators with some now providing service. Broadband 
service providers (BSPs) are currently the only significant holders of 
OVS certifications or local OVS franchises, even though OVS is one of 
four statutorily-recognized options for local exchange carriers (LECs) 
to offer video programming services. As of June 2005, BSPs served 
approximately 1.4 million subscribers, representing 1.5 percent of all 
MVPD households. Affiliates of Residential Communications Network, Inc. 
(``RCN''), which serves about 371,000 subscribers as of June 2005, is 
currently the largest BSP and 14th largest MVPD. RCN received approval 
to operate OVS systems in New York City, Boston, Washington, DC and 
other areas. The Commission does not have financial information 
regarding the entities authorized to provide OVS, some of which may not 
yet be operational. We thus believe that at least some of the OVS 
operators may qualify as small entities.
    87. Wireless Cable Systems. Wireless cable systems use the 
Broadband Radio Service (``BRS''), formerly Multipoint Distribution 
Service (``MDS''), and Educational Broadband Service (``EBS''), 
formerly Instructional Television Fixed Service (``ITFS''), frequencies 
in the 2 GHz band to transmit video programming and provide broadband 
services to residential subscribers. These services were originally 
designed for the delivery of multichannel video programming, similar to 
that of traditional cable systems, but over the past several years 
licensees have focused their operations instead on providing two-way 
high-speed Internet access services. We estimate that the number of 
wireless cable subscribers is

[[Page 15446]]

approximately 100,000, as of March 2005. Id. Local Multipoint 
Distribution Service (``LMDS'') is a fixed broadband point-to-
multipoint microwave service that provides for two-way video 
telecommunications. As previously noted, the SBA definition of small 
entities for Cable and Other Subscription Programming, which provides 
that a small entity is one with $13.5 million or less in annual 
receipts, appears applicable to MDS, ITFS and LMDS.
    88. Wireless Cable Systems (Commission Auction Standard). The 
Commission has defined small MDS (now BRS) and LMDS entities in the 
context of Commission license auctions. In the 1996 MDS auction, the 
Commission defined a small business as an entity 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. In the MDS auction, 67 bidders 
won 493 licenses. Of the 67 auction winners, 61 claimed status as a 
small business. At this time, the Commission estimates that of the 61 
small business MDS auction winners, 48 remain small business licensees. 
In addition to the 48 small businesses that hold BTA authorizations, 
there are approximately 392 incumbent MDS licensees that have gross 
revenues that are not more than $40 million and are thus considered 
small entities. MDS licensees and wireless cable operators that did not 
participate in the MDS auction must rely on the SBA definition of small 
entities for Cable and Other Subscription Programming. Information 
available to us indicates that there are approximately 850 of these 
licensees and operators that do not generate revenue in excess of $13.5 
million annually. Therefore, we estimate that there are approximately 
850 small MDS (or BRS) providers as defined by the SBA and the 
Commission's auction rules.
    89. Educational institutions are included in this analysis as small 
entities; however, the Commission has not defined a small business size 
standard for ITFS (now EBS). We estimate that there are currently 2,032 
ITFS (or EBS) licensees, and all but 100 of these licenses are held by 
educational institutions. Thus, the Commission estimates that at least 
1,932 ITFS licensees are small businesses.
    90. In the 1998 and 1999 LMDS auctions, the Commission defined a 
small business as an entity that had annual average gross revenues of 
less than $40 million in the previous three calendar years. Moreover, 
the Commission added an additional classification for a ``very small 
business,'' which was defined as an entity that had annual average 
gross revenues of less than $15 million in the previous three calendar 
years. These definitions of ``small business'' and ``very small 
business'' in the context of the LMDS auctions have been approved by 
the SBA. In the first LMDS auction, 104 bidders won 864 licenses. Of 
the 104 auction winners, 93 claimed status as small or very small 
businesses. In the LMDS re-auction, 40 bidders won 161 licenses. Based 
on this information, we believe 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.
    91. Incumbent Local Exchange Carriers (LECs). Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for incumbent local exchange services. The appropriate 
size standard under SBA rules is for the category Wired 
Telecommunications Carriers. Under that size standard, such a business 
is small if it has 1,500 or fewer employees. According to Commission 
data, 1,307 carriers have reported that they are engaged in the 
provision of incumbent local exchange services. Of these 1,307 
carriers, an estimated 1,019 have 1,500 or fewer employees and 288 have 
more than 1,500 employees. Consequently, the Commission estimates that 
most providers of incumbent local exchange service are small 
businesses.
    92. Competitive Local Exchange Carriers, Competitive Access 
Providers (CAPs), ``Shared-Tenant Service Providers,'' and ``Other 
Local Service Providers.'' Neither the Commission nor the SBA has 
developed a small business size standard specifically for these service 
providers. The appropriate size standard under SBA rules is for the 
category Wired Telecommunications Carriers. Under that size standard, 
such a business is small if it has 1,500 or fewer employees. According 
to Commission data, 859 carriers have reported that they are engaged in 
the provision of either competitive access provider services or 
competitive local exchange carrier services. Of these 859 carriers, an 
estimated 741 have 1,500 or fewer employees and 118 have more than 
1,500 employees. In addition, 16 carriers have reported that they are 
``Shared-Tenant Service Providers,'' and all 16 are estimated to have 
1,500 or fewer employees. In addition, 44 carriers have reported that 
they are ``Other Local Service Providers.'' Of the 44, an estimated 43 
have 1,500 or fewer employees and one has more than 1,500 employees. 
Consequently, the Commission estimates that most providers of 
competitive local exchange service, competitive access providers, 
``Shared-Tenant Service Providers,'' and ``Other Local Service 
Providers'' are small entities.
    93. Retailers. The rules adopted herein will apply only to 
retailers that choose to participate in the converter box coupon 
program. The SBA has developed a small business size standard for 
Radio, Television, and Other Electronics Stores, which is: All such 
firms having $8 million or less in annual receipts. The list of 
retailers who will be participating will not be finalized until March 
2008, but they will likely include dedicated consumer electronics 
stores and internet-based stores.
    94. Radio, Television, and Other Electronics Stores. The Census 
Bureau defines this economic census category as follows: ``This U.S. 
industry comprises: (1) Establishments known as consumer electronics 
stores primarily engaged in retailing a general line of new consumer-
type electronic products; (2) establishments specializing in retailing 
a single line of consumer-type electronic products (except computers); 
or (3) establishments primarily engaged in retailing these new 
electronic products in combination with repair services.'' The SBA has 
developed a small business size standard for Radio, Television, and 
Other Electronics Stores, which is: All such firms having $8 million or 
less in annual receipts. According to Census Bureau data for 2002, 
there were 10,380 firms in this category that operated for the entire 
year. Of this total, 10,080 firms had annual sales of under $5 million, 
and 177 firms had sales of $5 million or more but less than $10 
million. Thus, the majority of firms in this category can be considered 
small.
    95. Electronic Shopping. According to the Census Bureau, this 
economic census category ``comprises establishments engaged in 
retailing all types of merchandise using the Internet.'' The SBA has 
developed a small business size standard for Electronic Shopping, which 
is: All such entities having $23 million or less in annual receipts. 
According to Census Bureau data for 2002, there were 4,959 firms in 
this category that operated for the entire year. Of this total, 4,742 
firms had annual sales of under $10 million, and an additional 133 had 
sales of $10 million to $24,999,999. Thus, the majority of firms in 
this category can be considered small.

[[Page 15447]]

    96. Electronics Equipment Manufacturers. The rules adopted herein 
will apply to manufacturers of television 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 
are 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 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.
4. Description of Projected Reporting, Record Keeping, and Other 
Compliance Requirements for Small Entities
    97. The rules adopted by this Report and Order impose reporting, 
recordkeeping and other compliance requirements on small entities. The 
Report and Order establishes rules requiring industry to participate in 
a coordinated, nationwide, consumer outreach campaign, and does not 
create alternative requirements for small entities. Some elements of 
the Report and Order are voluntary, applying, for instance, only to 
DTV.gov Transition Partners or participants in the NTIA Converter Box 
Coupon Program. The mandatory requirements vary for different sectors 
of the telecommunications industry.
5. Steps Taken To Minimize Significant Impact on Small Entities, and 
Significant Alternatives Considered
    98. 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.
    99. The National Association of Broadcasters has expressed its 
intention to make informative PSAs available to all broadcasters, even 
non-members, which will reduce the cost burden of the requirement to 
air them. Also, the mandatory broadcaster filing does not require a 
specialized form or extensive information gathering. Most importantly, 
although these requirements will impose some costs on small 
broadcasters, they will also ensure that small broadcasters continue to 
retain their audiences after the transition by fully informing viewers 
of the steps necessary to keep watching. Small broadcasters rely 
completely on their viewing audience for their revenue stream, so this 
benefit should far outweigh any costs for this temporary requirement.
    100. Small MVPDs will have costs for printing ``bill stuffer'' 
transition notices to include with their bills and bill notices. These 
costs can be somewhat ameliorated by the use of electronic and 
automatic billing, and the transition education campaign could 
potentially result in an increase of MVPD subscriptions from over-the-
air subscribers and increased equipment rentals from current 
subscribers who wish to extend service to all of their televisions 
prior to the transition. Furthermore, MVPDs will have an additional 30 
days to prepare for notice distribution. The costs for small MVPDs will 
therefore, likely not be significant.
    101. The costs of reporting outreach efforts to the Commission by 
the winners of the 700 MHz auction will be de minimis, consisting 
solely of narrative reports in a flexible format describing outreach 
efforts the winner has chosen to make. On the other hand, small 
manufacturers of television receivers and related equipment, and small 
providers of telecommunications services to low-income households, will 
have costs to produce and distribute transition notices to their 
customers and subscribers, although ETCs will have an additional 30 
days to prepare for notice distribution. These costs will not be any 
greater for small than for large companies, however. The very limited 
nature of the notification requirements for both groups mean that no 
lighter burden could be placed on small entities without essentially 
eliminating the benefit to consumers of a comprehensive transition 
education campaign.
6. Report to Congress
    102. The Commission will send a copy of the Report and 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 Report and Order, including this FRFA, to the Chief Counsel for 
Advocacy of the SBA. A copy of the Report and Order and FRFA (or 
summaries thereof) will also be published in the Federal Register.

B. Paperwork Reduction Act Analysis

    103. The Paperwork Reduction Act Analysis, which was contained in 
Section IV. of the Report and Order (FCC 08-56), is set forth at the 
beginning of this document in the Supplementary Information.

[[Page 15448]]

C. Congressional Review Act

    104. The Commission will send a copy of this Report and Order in a 
report to be sent to Congress and the Government Accountability Office, 
pursuant to the Congressional Review Act.

D. Additional Information

    105. For more information on this Report and Order, please contact 
Lyle Elder, [email protected], or Eloise Gore, [email protected], of 
the Media Bureau, Policy Division, (202) 418-2120.

V. Ordering Clauses

    106. It is ordered that, pursuant to the authority contained in 
Sections 4, 303, 614, and 615 of the Communications Act of 1934, as 
amended, 47 U.S.C. 154, 303, 534, and 535, this Report and Order is 
adopted and the Commission's rules are hereby amended as set forth in 
Appendix B. We find good cause for the rules, forms and procedures 
adopted in this Report and Order to be effective upon publication of 
the summary of the Report and Order in the Federal Register to ensure 
that consumers are informed about the digital television transition on 
February 17, 2009, the statutory deadline for all full power television 
broadcasters to transition to all digital service, provided, however, 
that the rules, forms and requirements contain information collection 
requirements subject to the PRA and are not effective until approved by 
the OMB. As described in this Order, the Commission has found that the 
public must be better informed regarding the digital television 
transition prior to its conclusion on February 17, 2009. Because of the 
limited period of time remaining prior to that date, we believe it is 
essential that coordinated, nationwide education efforts begin as soon 
as possible. Without sufficient accurate information to guide 
decisionmaking, consumers may be unprepared for the digital transition 
when it arrives, and may be unable to obtain critical information in 
emergencies after the transition. In such instances, consumers would be 
financially harmed and deprived of service at a critical time. Because 
delay can result in such harms to consumers and because affected 
parties will be afforded a reasonable opportunity to comply with the 
rule, we find that there is good cause to expedite the effective date 
of this rule. For these reasons, we are also requesting emergency PRA 
approval from OMB. The Commission will publish a notice in the Federal 
Register announcing when OMB approval for these rule sections has been 
received and thus when these rules will take effect.
    107. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Report and Order, including the Final Regulatory 
Flexibility Analyses, to the Chief Counsel for Advocacy of the Small 
Business Administration.
    108. It is further ordered that the Commission shall send a copy of 
this Report and Order in a report to be sent to Congress and the 
General Accounting Office pursuant to the Congressional Review Act, see 
5 U.S.C. 801(a)(1)(A).

List of Subjects

47 CFR Part 15

    Communications equipment, Digital Television, Digital Television 
Equipment, Labeling, Radio, Reporting and recordkeeping requirements.

47 CFR Part 27

    Communications common carriers, Digital Television, Radio, 
Reporting and recordkeeping requirements, Wireless Communications.

47 CFR Part 54

    Communications common carriers, Digital Television, Reporting and 
recordkeeping requirements, Telecommunications, Telephone.

47 CFR Part 73

    Communications equipment, Digital Television, Radio, Reporting and 
recordkeeping requirements, Television.

47 CFR Part 76

    Cable Television, Digital Television, Multichannel Video 
Programming Distributors, Reporting and recordkeeping requirements.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

0
For the reasons discussed in the preamble, the Federal Communications 
Commission amends 47 CFR parts 15, 27, 54, 73, and 76 as follows:

PART 15--RADIO FREQUENCY DEVICES

0
1. The authority citation for part 15 continues to read as follows:

    Authority: 47 U.S.C. 154, 302a, 303, 304, 307, 336, and 544a.


0
2. Section 15.124 is added to read as follows:


Sec.  15.124  DTV Transition Notices by Manufacturers of Televisions 
and Related Devices.

    (a) The requirements of this section shall apply to television 
receivers and related devices. Related devices are electronic devices 
that are designed to be connected to, and operate with, television 
receivers, and which include, but are not limited to, DVD players and 
recorders, VCRs, and monitors, set-top-boxes, and personal video 
recorders. (b) Television receivers and related devices shipped between 
March 27, 2008 and March 31, 2009 must include notices about the 
digital television (DTV) transition. These notices must:
    (1) Be in clear and conspicuous print;
    (2) Convey at least the following information about the DTV 
transition:
    (i) After February 17, 2009, a television receiver with only an 
analog broadcast tuner will require a converter box to receive full 
power over-the-air broadcasts with an antenna because of the Nation's 
transition to digital broadcasting. Analog-only TVs should continue to 
work as before to receive low power, Class A or translator television 
stations and with cable and satellite TV services, gaming consoles, 
VCRs, DVD players, and similar products.
    (ii) Information about the DTV transition is available from http://www.DTV.gov or this manufacturer at [telephone number], and from http://www.dtv2009.gov or 1-888-DTV-2009 for information about subsidized 
coupons for digital-to-analog converter boxes; and
    (3) Explain clearly what effect, if any, the DTV transition will 
have on the use of the receiver or related device, including any 
limitations or requirements associated with connecting a related device 
to a DTV receiver.
    (c) Parties that manufacture, import, or ship interstate television 
receivers and related devices are responsible for inclusion of these 
notices.

PART 27--MISCELLANEOUS WIRELESS COMMUNICATIONS SERVICES

0
1. The authority citation for part 27 continues to read as follows:

    Authority: 47 U.S.C. 154, 301, 302, 303, 307, 309, 332, 336, and 
337 unless otherwise noted.


0
2. Section 27.20 is added to read as follows:


Sec.  27.20  Digital Television Transition Education Reports.

    (a) The requirements of this section shall apply only with regard 
to WCS

[[Page 15449]]

license authorizations in Block A in the 698-704 MHz and 728-734 MHz 
bands, Block B in the 704-710 MHz and 734-740 MHz bands, Block E in the 
722-728 MHz band, Block C, C1, or C2 in the 746-757 MHz and 776-787 MHz 
bands, and Block D in the 758-763 MHz and 788-793 MHz bands.
    (b) By the tenth day of the first calendar quarter after the 
initial grant of a WCS license authorization subject to the 
requirements of this section--and on a quarterly basis thereafter as 
specified in paragraph (c) of this section--the licensee holding such 
authorization must file a report with the Commission indicating 
whether, in the previous quarter, it has taken any outreach efforts to 
educate consumers about the transition from analog broadcast television 
service to digital broadcast television service (DTV) and, if so, what 
specific efforts were undertaken. Thus, for example, if the license 
authorization is granted during the April-June quarter of 2008, the 
licensee must file its first report by July 10, 2008. Each quarterly 
report, either paper or electronic, must be filed with the Commission 
in Docket Number 07-148. If the quarterly report is a paper filing, the 
cover sheet must clearly state ``Report,'' whereas if the report is 
filed electronically using the Commission's Electronic Comment File 
System (ECFS), the ``Document Type'' on the cover sheet should indicate 
``REPORT.''
    (c) The reporting requirements under this section cover the 
remaining period of the DTV transition. Accordingly, once the licensee 
files its quarterly report covering the first quarter of 2009, the 
requirements of this section terminate.

PART 54--UNIVERSAL SERVICE

0
1. The authority citation for part 54 continues to read as follows:

    Authority: 47 U.S.C. 151, 154(i), 201, 205, 214, and 254 unless 
otherwise noted.


0
2. Section 54.418 is added to read as follows:


Sec.  54.418  Digital Television Transition Notices by Eligible 
Telecommunications Carriers.

    (a) Eligible telecommunications carriers (ETCs) that receive 
federal universal service funds shall provide their Lifeline or Link-Up 
customers with notices about the transition for over-the-air full power 
broadcasting from analog to digital service (the ``DTV Transition'') in 
the monthly bills or bill notices received by such customers beginning 
April 26, 2008 and concluding in March 2009.
    (b) The notice must be provided as part of an information section 
on the bill or bill notice itself or on a secondary document mailed 
with the bill or bill notice, in the same language or languages as the 
bill or bill notice. These notices must:
    (1) Be in clear and conspicuous print;
    (2) Convey at least the following information about the DTV 
transition:
    (i) After February 17, 2009, a television receiver with only an 
analog broadcast tuner will require a converter box to receive full 
power over-the-air broadcasts with an antenna because of the Nation's 
transition to digital broadcasting. Analog-only TVs should continue to 
work as before to receive low power, Class A or translator television 
stations and with cable and satellite TV services, gaming consoles, 
VCRs, DVD players, and similar products.
    (ii) Information about the DTV transition is available from http://www.DTV.gov, and from http://www.dtv2009.gov or 1-888-DTV-2009 for 
information about subsidized coupons for digital-to-analog converter 
boxes;
    (c) If an ETC's Lifeline or Link-Up customer does not receive paper 
versions of either a bill or a notice of billing, then that customer 
must be provided with equivalent monthly notices in whatever medium 
they receive information about their monthly bill.
    (d) ETCs that receive federal universal service funds shall provide 
information on the DTV Transition that is equivalent to the information 
provided pursuant to paragraph (b)(2) of this section as part of any 
Lifeline or Link-Up publicity campaigns conducted by the ETC between 
March 27, 2008 and March 31, 2009.

PART 73--RADIO BROADCAST SERVICES

0
1. The authority citation for part 73 continues to read as follows:

    Authority: 47 U.S.C. 154, 303, 334, 336.


0
2. Section 73.674 is added to read as follows:


Sec.  73.674  Digital Television Transition Notices by Broadcasters.

    (a) Each full-power commercial and noncommercial educational 
television broadcast station licensee or permittee must air an 
educational campaign about the transition from analog broadcasting to 
digital television (DTV). For each such commercial station, a licensee 
or permittee must elect, by March 27, 2008 to comply with either 
paragraph (c) or (d) of this section. For each such noncommercial 
station, a licensee or permittee must elect March 27, 2008 to comply 
with paragraph (c), (d), or (e) of this section. A licensee or 
permittee must note their election via the filing of Form 388 as 
required by Sec. Sec.  73.3526 and 73.3527.
    (b) The following requirements apply to paragraphs (c), (d), and 
(e) of this section:
    (1) The station must comply with the requirements of the paragraph 
it elects with respect to its analog channel and its primary digital 
stream.
    (2) Any Public Service Announcement aired to comply with these 
requirements must be closed-captioned, notwithstanding Sec.  79.1(d)(6) 
of this chapter.
    (3) The campaign must begin no later than March 27, 2008 and 
continue at least through March 31, 2009. After March 31, 2009, any 
station that has filed a request for an extension to serve its full 
operating area or is operating under such an extension must continue 
its education campaign until the request is withdrawn or denied or, if 
granted, until it expires.
    (c) Consumer Education Campaign Option One:
    (1) From March 27, 2008 through March 31, 2008, a licensee or 
permittee must, at a minimum, air one transition-related public service 
announcement (PSA), and one transition-related informative text crawl, 
in every quarter of every broadcast day. This minimum will increase to 
two of each, per quarter, from April 1, 2008 through September 30, 
2008, and to three of each, per quarter, from October 1, 2008 through 
the conclusion of the campaign. At least one PSA and one informative 
text crawl per day must be aired between 8 p.m. and 11 p.m. in the 
Eastern and Pacific time zones, and between 7 p.m. and 10 p.m. in the 
Mountain and Central time zones.
    (2) For the purposes of this section, each broadcast day consists 
of four quarters; 6:01 a.m. to 12 p.m., 12:01 p.m. to 6 p.m., 6:01 p.m. 
to 12 a.m., and 12:01 a.m. to 6 a.m.
    (3) Informative text crawls must:
    (i) Air during programming;
    (ii) Air for no fewer than 60 consecutive seconds;
    (iii) Be displayed so that the text travels across the bottom or 
top of the viewing area at the same speed used for other informative 
text crawls concerning news, sports, and entertainment information;
    (iv) Be presented in the same language as a majority of the 
programming carried by the station;
    (v) Be displayed so that they do not block and are not blocked by 
closed-

[[Page 15450]]

captioning or emergency information; and
    (vi) Contain at least the following information, but may contain 
more, provided they contain no misleading or inaccurate statements:
    (A) After February 17, 2009, a television receiver with only an 
analog broadcast tuner will require a converter box to receive full 
power over-the-air broadcasts with an antenna because of the Nation's 
transition to digital broadcasting. Analog-only TVs should continue to 
work as before to receive low power, Class A or translator television 
stations and with cable and satellite TV services, gaming consoles, 
VCRs, DVD players, and similar products.
    (B) More information is available by phone and online, and provide 
appropriate contact information, including means of contacting the 
station or the network.
    (4) Public service announcements must have a duration of no fewer 
than 15 consecutive seconds, and contain, at a minimum, the information 
described in paragraph (c)(3)(vi) of this section. They must also 
address the following topics at least once each during every calendar 
week:
    (i) The steps necessary for an over-the-air viewer or a subscriber 
to a multichannel video programming distributor to continue viewing the 
station after the transition;
    (ii) Changes in the geographic area or population served by the 
station during or after the transition;
    (iii) The channel on which the station can be viewed after the 
transition;
    (iv) Whether the station will be providing multiple streams of free 
video programming during or after the transition;
    (v) Whether the station will be providing a High Definition signal 
during or after the transition;
    (vi) The exact date and time that the station will cease analog 
broadcasting, if it has not already done so; and
    (vii) The exact date and time that the station will begin digital 
broadcasting on its post-transition channel, if it has not already done 
so.
    (d) Consumer Education Campaign Option Two:
    (1) A licensee or permittee must, at a minimum, air an average of 
sixteen transition-related PSAs per week, and an average of sixteen 
transition-related crawls, snipes, and/or tickers per week, over a 
calendar quarter.
    (2) For the purposes of calculating the average number of PSAs 
aired, a 30-second PSA qualifies as a single PSA, and two 15-second 
PSAs count as a single PSA.
    (3) PSAs, crawls, snipes, and/or tickers aired between the hours of 
1 a.m. and 5 a.m. do not conform to the requirements of this section 
and will not count toward calculating the average number of transition-
related education pieces aired.
    (4) Over the course of each calendar quarter, 25 percent of all 
PSAs, and 25 percent of all crawls, snipes, and/or tickers, must air 
between 6 p.m. and 11:35 p.m. (Eastern and Pacific time zones) or 
between 5 p.m. and 10:35 p.m. (Central and Mountain time zones).
    (5) Stations must also air a 30-minute informational program on the 
digital television (DTV) transition between 8 a.m.-11:35 p.m. on at 
least one day prior to February 17, 2009.
    (6) Beginning on November 10, 2008, all stations will begin a 100-
Day Countdown to the transition. During this period, each station must 
air at least one of the following per day:
    (i) Graphic display. A graphic super-imposed during programming 
content that reminds viewers graphically there are ``x number of days'' 
until the transition. They will be visually instructed to call a toll-
free number and/or visit a Web site for details. The length of time 
will vary from 5 to 15 seconds, at the discretion of the station.
    (ii) Animated graphic. A moving or animated graphic that ends up as 
a countdown reminder. It would remind viewers that there are ``x number 
of days'' until the transition. They will be visually instructed to 
call a toll-free number and/or visit a Web site for details. The length 
of time will vary from 5 to 15 seconds, at the discretion of the 
station.
    (iii) Graphic and audio display. Option 1 or option 
2 with an added audio component. The length of time will vary 
from 5 to 15 seconds, at the discretion of the station.
    (iv) Longer form reminders. Stations can choose from a variety of 
longer form options to communicate the countdown message. Examples 
might include an ``Ask the Expert'' segment where viewers can call in 
to a phone bank and ask knowledgeable people their questions about the 
transition. The length of these segments will vary from 2 minutes to 5 
minutes, at the discretion of the station (some stations may also 
choose to include during newscasts DTV ``experts'' who may be asked 
questions by the anchor or reporter about the impending February 17, 
2009 deadline).
    (e) Consumer Education Campaign Option Three:
    (1) Only a licensee or permittee of a noncommercial television 
station may elect this option. Under this option, from March 27, 2008 
through April 30, 2008, a noncommercial broadcaster must, at a minimum, 
air 60 seconds per day of transition-related education (PSAs), in 
variable timeslots, including at least 7.5 minutes per month between 6 
p.m. and 12 a.m. From May 1, 2008, through October 31, 2008, a 
broadcaster must, at a minimum, air 120 seconds per day of transition-
related education (PSAs), in variable timeslots, including at least 15 
minutes per month between 6 p.m. and 12 a.m. From November 1, 2008, 
through March 31, 2009, a broadcaster must, at a minimum, air 180 
seconds per day of transition-related education (PSAs), in variable 
timeslots, including at least 22.5 minutes per month between 6 p.m. and 
midnight.
    (2) Noncommercial stations must also air a 30-minute informational 
program on the digital television (DTV) transition between 8 a.m.-11:35 
p.m. on at least one day prior to February 17, 2009.

0
3. Section 73.3526 is amended by adding paragraph (e)(11)(iv) to read 
as follows:


Sec.  73.3526  Local public inspection file of commercial stations.

* * * * *
    (e) * * *
    (11) * * *
    (iv) DTV transition education reports. For full-power commercial TV 
broadcast stations, both analog and digital, on a quarterly basis, a 
completed Form 388, DTV Consumer Education Quarterly Activity Report. 
The Report for each quarter is to be placed in the public inspection 
file by the tenth day of the succeeding calendar quarter. By this date, 
a copy of the Report for each quarter must be filed electronically with 
the Commission in Docket Number 07-148 using the Commission's 
Electronic Comment File System (ECFS). The ``Document Type'' on the 
cover sheet must indicate ``REPORT.'' Stations electing to conform to 
the requirements of Section 73.674(b) must also provide the form on the 
station's public Web site, if such exists. The Report shall be 
separated from other materials in the public inspection file. The first 
Report, covering the first quarter of 2008, must be filed no later than 
April 10, 2008. The Reports must continue to be included up to and 
including the quarter in which a station concludes its education 
campaign. These Reports shall be retained in the public inspection file 
for one year. Licensees and permittees shall publicize in an 
appropriate manner the existence and location of these Reports.

0
4. Section 73.3527 is amended by adding paragraph (e)(13) to read as 
follows:

[[Page 15451]]

Sec.  73.3527  Local public inspection file of noncommercial 
educational stations.

* * * * *
    (e) * * *
    (13) DTV transition education reports. For full-power noncommercial 
educational TV broadcast stations, both analog and digital, on a 
quarterly basis, a completed Form 388, DTV Consumer Education Quarterly 
Activity Report. The Report for each quarter is to be placed in the 
public inspection file by the tenth day of the succeeding calendar 
quarter. By this date, a copy of the Report for each quarter must be 
filed electronically with the Commission in Docket Number 07-148 using 
the Commission's Electronic Comment File System (ECFS). The ``Document 
Type'' on the cover sheet must indicate ``REPORT.'' Stations electing 
to conform to the requirements of Sec.  73.674(b) must also provide the 
form on the station's public Web site, if such exists. The Report shall 
be separated from other materials in the public inspection file. The 
first Report, covering the first quarter of 2008, must be filed no 
later than April 10, 2008. The Reports must continue to be included up 
to and including the quarter in which a station concludes its education 
campaign. These Reports shall be retained in the public inspection file 
for one year. Licensees and permittees shall publicize in an 
appropriate manner the existence and location of these Reports.

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, 302a, 303, 
303a, 307, 308, 309, 312, 315, 317, 325, 339, 340, 341, 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 76.1630 is added to read as follows:


Sec.  76.1630  MVPD digital television transition notices.

    (a) Multichannel video programming distributors (MVPDs) shall 
provide subscribers with notices about the transition for over-the-air 
full power broadcasting from analog to digital service (the ``DTV 
Transition'') in the monthly bills or bill notices received by 
subscribers beginning April 26, 2008 and concluding in March, 2009.
    (b) The notice must be provided as part of an information section 
on the bill or bill notice itself or on a secondary document mailed 
with the bill or bill notice, in the same language or languages as the 
bill or bill notice. These notices must:
    (1) Be in clear and conspicuous print;
    (2) Convey at least the following information about the DTV 
transition:
    (i) After February 17, 2009, a television receiver with only an 
analog broadcast tuner will require a converter box to receive full 
power over-the-air broadcasts with an antenna because of the Nation's 
transition to digital broadcasting. Analog-only TVs should continue to 
work as before to receive low power, Class A or translator television 
stations and with cable and satellite TV services, gaming consoles, 
VCRs, DVD players, and similar products.
    (ii) Information about the DTV transition is available from http://www.DTV.gov or this MVPD at [telephone number and Web site if 
available], and from http://www.dtv2009.gov or 1-888-DTV-2009 for 
information about subsidized coupons for digital-to-analog converter 
boxes;
    (3) And explain clearly what effect, if any, the DTV Transition 
will have on the subscriber's access to MVPD service. It must also note 
that analog sets not connected to an MVPD service may need additional 
equipment (i.e., converter box) or may have to be replaced.
    (c) To the extent that a given customer does not receive paper 
versions of either a bill or a notice of billing, that customer must be 
provided with equivalent monthly notices in whatever medium they 
receive information about their monthly bill.

    Note: The following appendices will not appear in the Code of 
Federal Regulations.

Appendix A: Final Regulatory Flexibility Act Analysis [Reserved.]

    Note: The Final Regulatory Flexibility Act Analysis, which was 
contained in Appendix A of the Report and Order (FCC 08-56), is set 
forth in Section IV.A. of the Supplementary Information, above.

Appendix B: Rule Changes [Reserved.]

    Note: The rules codified in the Report and Order (FCC 08-56), 
which were contained in Appendix B of the Report and Order, are set 
forth following the signature block of this document.

Appendix C: Broadcaster Reporting Form

DTV Consumer Education Quarterly Activity Report

Instructions

    This form should be used to provide the Federal Communications 
Commission (FCC) with information pertaining to all station activity 
to educate consumers on the transition to digital television (DTV). 
All stations should log DTV Transition-Related Public Service 
Announcements (PSAs) and other DTV activities using the appropriate 
house (identification) numbers. These logs or records should include 
the date and time that each DTV activity occurred. This form must be 
filed in Docket Number 07-148 as Document Type: REPORT, and placed 
in the station's Public Inspection File. This form must continue to 
be filed for each quarter in which a station has DTV Transition 
education obligations.
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Appendix D: Letter from the Honorable John D. Dingell, Chairman of the 
Committee on Energy and Commerce, and the Honorable Edward J. Markey, 
Chairman of the Subcommittee on Telecommunications and the Internet, 
U.S. House of Representatives [Reserved.]

    Note: The full text of this Appendix, which was contained in 
Appendix D of the Report and Order (FCC 08-56), can be obtained as 
described in the beginning of the Supplementary Information, above. 
It is also available on the FCC's Web site at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-56A7.pdf.

Appendix E: Reply from the Honorable Kevin J. Martin, Chairman, Federal 
Communications Commission [Reserved.]

    Note: The full text of this Appendix, which was contained in 
Appendix E of the Report and Order (FCC 08-56), can be obtained as 
described in the beginning of the Supplementary Information, above. 
It is also available on the FCC's Web site at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-56A8.pdf.

 [FR Doc. E8-5409 Filed 3-21-08; 8:45 am]
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