[Federal Register Volume 78, Number 127 (Tuesday, July 2, 2013)]
[Proposed Rules]
[Pages 39691-39698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-15722]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 79
[MB Docket No. 11-154; FCC 13-84]
Closed Captioning of Internet Protocol-Delivered Video
Programming: Implementation of the Twenty-First Century Communications
and Video Accessibility Act of 2010
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
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SUMMARY: In this document, the Commission seeks comment on the
potential imposition of closed captioning synchronization requirements
for covered apparatus, and on how DVD and Blu-ray players can fulfill
the closed captioning requirements of the statute. These issues were
raised by petitions for reconsideration of the Report and Order, which
adopted rules governing the closed captioning requirements for the
owners, providers, and distributors of IP-delivered video programming
and rules governing the closed captioning capabilities of certain
apparatus on which consumers view video programming.
DATES: Comments are due on or before September 3, 2013; reply comments
are due on or before September 30, 2013.
ADDRESSES: You may submit comments, identified by MB Docket No. 11-154,
by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web site: http://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting
comments.
Mail: Filings can be sent by hand or messenger delivery,
by commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail. All filings must be addressed to the Commission's
Secretary, Office of the Secretary, Federal Communications Commission.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by email: [email protected] or phone: (202) 418-
0530 or TTY: (202) 418-0432.
FOR FURTHER INFORMATION CONTACT: Diana Sokolow, [email protected],
or Maria Mullarkey, [email protected], of the Policy Division,
Media Bureau, (202) 418-2120.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's
Further Notice of Proposed Rulemaking, FCC 13-84, adopted on June 13,
2013 and released on June 14, 2013. 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., Room CY-A257, Washington, DC 20554. This document
will also be available via ECFS at http://fjallfoss.fcc.gov/ecfs/.
Documents will be available electronically in ASCII, Microsoft Word,
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. Alternative formats are available for people with
disabilities (Braille, large print, electronic files, audio format), by
sending an email to [email protected] or calling 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 does not contain proposed information collection(s)
subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-
13. In addition, therefore, it does not contain any new or modified
``information collection burden for small business concerns with fewer
than 25 employees,'' pursuant to the Small Business Paperwork Relief
Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
Summary of the Further Notice of Proposed Rulemaking
I. Introduction
1. In the FNPRM, we seek further comment on the potential
imposition of closed captioning synchronization requirements for
covered apparatus, and on how DVD and Blu-ray players can fulfill the
closed captioning requirements of the statute. These issues were raised
by petitions for reconsideration of the Report and Order, which
implemented portions of sections 202 and 203 of the Twenty-First
Century Communications and Video Accessibility Act of 2010 (``CVAA'')
by adopting rules governing the closed captioning requirements for the
owners, providers, and distributors of video programming delivered via
Internet protocol (``IP'') and rules governing the closed captioning
capabilities of certain apparatus on which consumers view video
programming. Specifically, in response to the Petition for
Reconsideration of Consumer Groups, we issue an FNPRM to obtain further
information necessary to determine whether the Commission should impose
synchronization requirements on device manufacturers. Such
synchronization requirements could provide that all apparatus that
render closed captions must do so consistent with the timing data
included with the video programming the apparatus receives. Separately,
in response to issues raised by the Petition for Reconsideration of the
Consumer Electronics Association, the FNPRM seeks comment on how DVD
and Blu-ray players can fulfill the closed captioning requirements of
the statute.
2. Our goal in this proceeding remains to implement Congress's
intent to better enable individuals who are deaf or hard of hearing to
view video programming. In considering the requests made in the three
petitions for reconsideration received, we have evaluated the effect on
consumers who are deaf or hard of hearing as well as the cost of
compliance to affected entities.
II. Further Notice of Proposed Rulemaking
3. Apparatus synchronization requirements. We invite comment on
whether the Commission should require apparatus manufacturers to ensure
that their apparatus synchronize the appearance of closed captions with
the display of the corresponding video. In the Report and Order, the
Commission concluded that it would be inappropriate to impose
synchronization requirements on apparatus. Rather, the Commission
stated ``that ensuring that timing data is properly encoded and
maintained through the captioning interchange and delivery system is an
obligation of [s]ection 202 [video programming distributors and
providers], and not of device manufacturers.'' Consumer Groups argue
that the Commission should impose timing obligations on device
manufacturers pursuant to section 203 of the CVAA because apparatus may
cause captions to become out of synch with the corresponding video. We
need more information in the
[[Page 39692]]
record to address this issue because commenters disagree as to whether
synchronization problems can be caused by apparatus.\1\ Commenters also
disagree as to whether existing standards would enable manufacturers to
address caption synchronization.\2\ Another issue is whether video
programming owners, providers, and distributors are better suited than
manufacturers to ensure captioning quality, including captioning
synchronization. Based on the record information on synchronization in
response to the Consumer Groups Petition, it now appears that apparatus
may play a role in synchronization problems. We do not, however,
currently possess sufficient information to determine the nature or
extent to which apparatus are the cause of these problems, or whether
there is a workable manner in which to impose synchronization
requirements on apparatus. Accordingly, we invite comment on this
issue.
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\1\ Consumer Groups argue that synchronization problems can be
caused by apparatus, and thus failure to place synchronization
obligations on apparatus may make timing requirements on video
programming distributors ineffective. To the contrary, Mitsubishi
Electric Visual Solutions America, Inc. (``MEVSA'') argues that it
is unaware of any caption display synchronization problems caused by
receivers, and CEA argues that decoders do not cause synchronization
problems.
\2\ CEA and MEVSA argue that existing standards would not enable
manufacturers to comply with a synchronization requirement. Consumer
Groups disagree, arguing that mainstream captioning standards such
as CEA-608, CEA-708, and the Society of Motion Picture and
Television Engineers (``SMPTE'') Timed Text Format (``SMPTE-TT'')
support synchronization.
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4. Specifically, we seek information on whether apparatus may cause
closed captioning synchronization problems, and if so, how. We
encourage commenters to provide specific evidence on this issue,
including for example a discussion of situations in which the same
video programming is displayed in the same manner (i.e., on the same
Web site or via the same application) on different apparatus, where one
apparatus displays the closed captioning with better synchronization
than the other. Are video programming owners, providers, and
distributors better suited than manufacturers to ensure caption
quality, including synchronization? If so, why? What are the costs and
benefits of imposing caption synchronization requirements on video
programming owners, providers, and distributors in lieu of imposing
such requirements on apparatus manufacturers?
5. To the extent that apparatus cause closed captioning
synchronization problems, we seek comment on what requirements we
should impose on apparatus to address this problem. Are there existing
standards that would enable manufacturers to address closed caption
synchronization, or is it possible for manufacturers to develop and
implement such standards? If not, by what means could apparatus comply
with a synchronization requirement? Do closed captioning standards
provide the necessary timing data for compliance with and enforcement
of a synchronization standard? If we impose a synchronization
requirement on apparatus, should we require apparatus to render closed
captions consistent with the data dictating the timing of captions that
is included with the video programming the apparatus receives? What are
the costs and benefits of imposing caption synchronization requirements
on apparatus manufacturers? What compliance deadline should we impose
on any apparatus synchronization requirements that we adopt? In an
enforcement proceeding, how could the Commission determine whether
synchronization problems are caused by the apparatus or by the video
programming owner, provider, or distributor?
6. Closed captioning requirements on DVD and Blu-ray players. As
explained in the Order on Reconsideration, adopted with the FNPRM and
published elsewhere in this publication, we provide manufacturers of
DVD players that do not render or pass through closed captions, and
manufacturers of Blu-ray players, with a temporary extension of the
compliance deadline, pending resolution of this FNPRM. The CVAA and our
rules require that apparatus ``be equipped with built-in closed caption
decoder circuitry or capability designed to display closed-captioned
video programming.'' Thus, we invite comment on the closed captioning
requirements that we should impose on DVD players that do not render or
pass through closed captions, and on Blu-ray players with regard to
Blu-ray discs and DVDs.\3\ Commenters should provide information on the
costs and benefits of imposing such requirements, including the
technical aspects of what would be required to make closed captioning
accessible on such devices.
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\3\ We understand that many, if not all, Blu-ray players are
``backward compatible'' with DVDs, that is, they are able to play
both Blu-ray discs and DVDs. We seek comment on this understanding.
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7. We seek comment on whether we should permit DVD players that do
not currently render or pass through closed captions to include an
analog output to pass through closed captions. As explained in the
Order on Reconsideration, the record demonstrates that the DVD player
market is declining. Accordingly, how would such a regulation on DVD
players impact the market? In the context of low-cost DVD players,
would there be sufficient consumer demand for manufacturers to continue
manufacturing such players if faced with the costs of rendering or
adding an analog output? Given that Blu-ray players are able to play
both Blu-ray discs and DVDs, should we consider Blu-ray players that do
not render closed captions but include an analog output to pass through
closed captions on DVDs to comply with the closed captioning
requirements of the CVAA? Is there a consumer expectation that
captioned DVDs should be viewable on a backward compatible Blu-ray
player? Should Blu-ray players that include an analog output that pass
through captions be granted a waiver of the Commission's
interconnection mechanism rule (as we have granted in the Order on
Reconsideration in the DVD context)? Alternatively, should we require
Blu-ray players to render captions from DVDs? We seek specific comment
on the costs and benefits of the approaches considered herein as well
as on the technical aspects of what would be required to effectuate
these requirements. For example, would manufacturers be required to
implement a software or hardware upgrade? Similarly, what are the costs
and benefits of requiring all DVD and Blu-ray players to include an
analog output, and what technical steps are necessary to achieve this?
In addition, what would be an appropriate deadline for compliance with
the closed captioning requirements for DVD players that do not render
or pass through captions and for Blu-ray players?
8. With regard to Blu-ray players playing Blu-ray discs, as we
noted above, there is not currently an industry-wide standard for
closed captioning on Blu-ray discs. Thus, Blu-ray discs do not
currently contain captions. Does this fact make it more important that
Blu-ray player manufacturers take steps to ensure that captions from
DVDs can be rendered or passed through? Should we require Blu-ray
players to render or pass through captions from Blu-ray discs within a
certain period of time with the expectation that doing so would spur
the industry to prioritize developing a standard for discs and include
captions on Blu-ray discs? Alternatively, given that Blu-ray discs as
well as DVDs
[[Page 39693]]
currently include subtitles,\4\ we seek comment on whether, as a legal
matter, rendering or passing through subtitles could satisfy section
303(u)'s requirement that the Blu-ray players and DVD players ``be
equipped with built-in closed caption decoder circuitry or capability
designed to display closed-captioned video programming.'' Could the
rendering or passing through subtitles be considered an ``alternate
means'' of compliance with our rules? \5\ Or, should subtitles or SDH
only be considered an alternative means of compliance to the extent
that they can be made compatible with the technical capabilities set
forth in our apparatus closed captioning rules (for example, the
ability to change text font and size)? We seek specific comment on what
steps the industry, including content providers, must take to provide
this type of ``enhanced'' subtitles or SDH. For example, what technical
steps can manufacturers take in this regard?
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\4\ Subtitles for the deaf and hard of hearing (``SDH'') do not
provide all of the features available with closed captions.
\5\ See Public Law 111-260, section 203(e) (``An entity may meet
the requirements of sections 303(u), 303(z), and 330(b) of the
Communications Act of 1934 through alternate means than those
prescribed by regulations pursuant to subsection (d) if the
requirements of those sections are met, as determined by the
Commission.''). In the Report and Order, the Commission recognized
that SDH does not offer the same user control features as closed
captioning.
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III. Procedural Matters
A. Initial Regulatory Flexibility Analysis
9. As required by the Regulatory Flexibility Act of 1980, as
amended (``RFA''),\6\ the Commission has prepared this present Initial
Regulatory Flexibility Analysis (``IRFA'') concerning the possible
significant economic impact on small entities by the policies and rules
proposed in the Further Notice of Proposed Rulemaking (``FNPRM'').
Written public comments are requested on this IRFA. Comments must be
identified as responses to the IRFA and must be filed by the deadlines
for comments provided on the first page of the item. The Commission
will send a copy of the FNPRM, including this IRFA, to the Chief
Counsel for Advocacy of the Small Business Administration (``SBA'').\7\
In addition, the FNPRM and IRFA (or summaries thereof) will be
published in the Federal Register.\8\
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\6\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601--612, has been
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 857 (1996).
\7\ See 5 U.S.C. 603(a).
\8\ See id.
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1. Need for, and Objectives of, the Proposed Rule Changes
10. In the FNPRM, we seek further comment on the potential
imposition of closed captioning synchronization requirements for
covered apparatus, and on how DVD and Blu-ray players can fulfill the
closed captioning requirements of the statute. These issues were raised
by petitions for reconsideration of the Report and Order, which
implemented portions of sections 202 and 203 of the Twenty-First
Century Communications and Video Accessibility Act of 2010 (``CVAA'')
by adopting rules governing the closed captioning requirements for the
owners, providers, and distributors of video programming delivered via
Internet protocol (``IP'') and rules governing the closed captioning
capabilities of certain apparatus on which consumers view video
programming. Specifically, in response to the Petition for
Reconsideration of Consumer Groups, we issue an FNPRM to obtain further
information necessary to determine whether the Commission should impose
synchronization requirements on device manufacturers. Such
synchronization requirements could provide that all apparatus that
render closed captions must do so consistent with the timing data
included with the video programming the apparatus receives. Separately,
in response to issues raised by the Petition for Reconsideration of the
Consumer Electronics Association, the FNPRM seeks comment on how DVD
and Blu-ray players can fulfill the closed captioning requirements of
the statute.
11. Our goal in this proceeding remains to implement Congress's
intent to better enable individuals who are deaf or hard of hearing to
view video programming. In considering the requests made in the three
petitions for reconsideration received, we have evaluated the effect on
consumers who are deaf or hard of hearing as well as the cost of
compliance to affected entities.
2. Legal Basis
12. The proposed action is authorized pursuant to the Twenty-First
Century Communications and Video Accessibility Act of 2010, Pub. L.
111-260, 124 Stat. 2751, and the authority found in sections 4(i),
4(j), 303, 330(b), 713, and 716 of the Communications Act of 1934, as
amended, 47 U.S.C. 154(i), 154(j), 303, 330(b), 613, and 617.
3. Description and Estimate of the Number of Small Entities to Which
the Proposals Will Apply
13. The RFA directs agencies to provide a description of and, where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules, if adopted.\9\ The RFA generally
defines the term ``small entity'' as having the same meaning as the
terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \10\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\11\ 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 SBA.\12\ Below, we provide a description of such
small entities, as well as an estimate of the number of such small
entities, where feasible.
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\9\ 5 U.S.C. 603(b)(3).
\10\ 5 U.S.C. 601(6).
\11\ 5 U.S.C. 601(3) (incorporating by reference the definition
of ``small business concern'' in 15 U.S.C. 632). Pursuant to 5
U.S.C. 601(3), the statutory definition of a small business applies
``unless an agency, after consultation with the Office of Advocacy
of the Small Business Administration and after opportunity for
public comment, establishes one or more definitions of such term
which are appropriate to the activities of the agency and publishes
such definition(s) in the Federal Register.'' 5 U.S.C. 601(3).
\12\ 15 U.S.C. 632. Application of the statutory criteria of
dominance in its field of operation and independence are sometimes
difficult to apply in the context of broadcast television.
Accordingly, the Commission's statistical account of television
stations may be over-inclusive.
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14. Small Businesses, Small Organizations, and Small Governmental
Jurisdictions. Our action may, over time, affect small entities that
are not easily categorized at present. We therefore describe here, at
the outset, three comprehensive, statutory small entity size standards.
First, nationwide, there are a total of approximately 27.5 million
small businesses, according to the SBA. In addition, a ``small
organization'' is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
Nationwide, as of 2007, there were approximately 1,621,315 small
organizations. Finally, the term ``small governmental jurisdiction'' is
defined generally as ``governments of cities, towns, townships,
villages, school districts, or special districts, with a population of
less than fifty thousand.'' Census Bureau data for 2011 indicate that
there were 89,476 local governmental jurisdictions in the United
States. We estimate that, of this total, as many as 88,506 entities may
[[Page 39694]]
qualify as ``small governmental jurisdictions.'' Thus, we estimate that
most governmental jurisdictions are small.
15. 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. Census data for 2007 shows that there were 1,906 firms that
operated that year. Of those 1,906, 1,880 had fewer than 1000
employees, and 26 firms had more than 1000 employees. Thus under this
category and the associated small business size standard, the majority
of such firms can be considered small.
16. Cable Companies and Systems. The Commission has also developed
its own small business size standards, for the purpose of cable rate
regulation. Under the Commission's rules, a ``small cable company'' is
one serving 400,000 or fewer subscribers nationwide. Industry data
indicate that all but ten cable operators nationwide are small under
this size standard. In addition, under the Commission's rules, a
``small system'' is a cable system serving 15,000 or fewer subscribers.
Industry data indicate that, of 6,101 systems nationwide, 4,410 systems
have under 10,000 subscribers, and an additional 258 systems have
10,000-19,999 subscribers. Thus, under this standard, most cable
systems are small.
17. Cable System Operators. 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 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. Industry
data indicate that all but nine cable operators nationwide are small
under this subscriber size standard. We note that 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 we are unable to estimate more
accurately the number of cable system operators that would qualify as
small under this size standard.
18. 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. DBS, by exception, is now included in the
SBA's broad economic census category, ``Wired Telecommunications
Carriers,'' which was developed for small wireline firms. Under this
category, the SBA deems a wireline business to be small if it has 1,500
or fewer employees. Census data for 2007 shows that there were 31,996
establishments that operated that year. Of those 31,996, 1,818 operated
with more than 100 employees, and 30,178 operated with fewer than 100
employees. Thus, under this category and the associated small business
size standard, the majority of such firms can be considered small.
Currently, only two entities provide DBS service, which requires a
great investment of capital for operation: DIRECTV and EchoStar
Communications Corporation (``EchoStar'') (marketed as the DISH
Network). Each currently offers subscription services. DIRECTV and
EchoStar each 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
service provider.
19. Satellite Telecommunications Providers. Two economic census
categories address the satellite industry. The first category has a
small business size standard of $15 million or less in average annual
receipts, under SBA rules. The second has a size standard of $25
million or less in annual receipts.
20. The category of ``Satellite Telecommunications'' ``comprises
establishments primarily engaged in providing telecommunications
services to other establishments in the telecommunications and
broadcasting industries by forwarding and receiving communications
signals via a system of satellites or reselling satellite
telecommunications.'' Census Bureau data for 2007 show that 607
Satellite Telecommunications establishments operated for that entire
year. Of this total, 533 establishments had annual receipts of under
$10 million or less, and 74 establishments had receipts of $10 million
or more. Consequently, the Commission estimates that the majority of
Satellite Telecommunications firms are small entities that might be
affected by our action.
21. The second category, i.e., ``All Other Telecommunications,''
comprises ``establishments primarily engaged in providing specialized
telecommunications services, such as satellite tracking, communications
telemetry, and radar station operation. This industry also includes
establishments primarily engaged in providing satellite terminal
stations and associated facilities connected with one or more
terrestrial systems and capable of transmitting telecommunications to,
and receiving telecommunications from, satellite systems.
Establishments providing Internet services or voice over Internet
protocol (VoIP) services via client-supplied telecommunications
connections are also included in this industry.'' For this category,
Census Bureau data for 2007 shows that there were a total of 2,623
establishments that operated for the entire year. Of this total, 2,478
establishments had annual receipts of under $10 million and 145
establishments had annual receipts of $10 million or more.
Consequently, the Commission estimates that the majority of All Other
Telecommunications firms are small entities that might be affected by
our action.
22. Television Broadcasting. This Economic Census category
``comprises establishments primarily engaged in broadcasting images
together with sound. These establishments operate television
broadcasting studios and facilities for the programming and
transmission of programs to the public.'' The SBA has created the
following small business size standard for Television Broadcasting
firms: Those having $14 million or less in annual receipts. The
Commission has estimated the number of licensed commercial television
stations to be 1,387. In addition, according to Commission staff review
of the BIA Advisory Services, LLC's Media Access Pro Television
Database on March 28, 2012, about 950 of an estimated 1,300 commercial
television stations (or approximately 73 percent) had revenues of $14
million or less. We therefore estimate that the majority of commercial
television broadcasters are small entities.
23. We note, however, that in assessing whether a business concern
qualifies as small under the above definition, business (control)
affiliations
[[Page 39695]]
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. 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 does not
exclude any television station from the definition of a small business
on this basis and is therefore possibly over-inclusive to that extent.
24. In addition, the Commission has estimated the number of
licensed noncommercial educational (NCE) television stations to be 396.
These stations are non-profit, and therefore considered to be small
entities.
25. Open Video Systems. The open video system (``OVS'') framework
was established in 1996, and is one of four statutorily recognized
options for the provision of video programming services by local
exchange carriers. 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 small business size standard covering cable services, which is
``Wired Telecommunications Carriers.'' The SBA has developed a small
business size standard for this category, which is: all such firms
having 1,500 or fewer employees. Census data for 2007 shows that there
were 31,996 establishments that operated that year. Of those 31,996,
1,818 operated with more than 100 employees, and 30,178 operated with
fewer than 100 employees. Thus, under this category and the associated
small business size standard, the majority of such firms can be
considered small. In addition, we note that the Commission has
certified some OVS operators, with some now providing service.
Broadband service providers (``BSPs'') are currently the only
significant holders of OVS certifications or local OVS franchises. The
Commission does not have financial or employment information regarding
the entities authorized to provide OVS, some of which may not yet be
operational. Thus, at least some of the OVS operators may qualify as
small entities.
26. Cable and Other Subscription Programming. The Census Bureau
defines this category as follows: ``This industry comprises
establishments primarily engaged in operating studios and facilities
for the broadcasting of programs on a subscription or fee basis. These
establishments produce programming in their own facilities or acquire
programming from external sources. The programming material is usually
delivered to a third party, such as cable systems or direct-to-home
satellite systems, for transmission to viewers.'' The SBA has developed
a small business size standard for this category, which is: all such
firms having $15 million dollars or less in annual revenues. To gauge
small business prevalence in the Cable and Other Subscription
Programming industries, the Commission relies on data currently
available from the U.S. Census for the year 2007. Census Bureau data
for 2007 show that there were 659 establishments in this category that
operated for the entire year. Of that number, 462 operated with annual
revenues of $9,999,999 million dollars or less, and 197 operated with
annual revenues of 10 million or more. Thus, under this category and
associated small business size standard, the majority of firms can be
considered small.
27. Motion Picture and Video Production. The Census Bureau defines
this category as follows: ``This industry comprises establishments
primarily engaged in producing, or producing and distributing motion
pictures, videos, television programs, or television commercials.'' We
note that firms in this category may be engaged in various industries,
including cable programming. Specific figures are not available
regarding how many of these firms produce and/or distribute programming
for cable television. The SBA has developed a small business size
standard for this category, which is: all such firms having $29.5
million dollars or less in annual revenues. To gauge small business
prevalence in the Motion Picture and Video Production industries, the
Commission relies on data currently available from the U.S. Census for
the year 2007. Census Bureau data for 2007, which now supersede data
from the 2002 Census, show that there were 9,095 firms in this category
that operated for the entire year. Of these, 8,995 had annual receipts
of $24,999,999 or less, and 100 had annual receipts ranging from not
less than $25,000,000 to $100,000,000 or more. Thus, under this
category and associated small business size standard, the majority of
firms can be considered small.
28. Motion Picture and Video Distribution. The Census Bureau
defines this category as follows: ``This industry comprises
establishments primarily engaged in acquiring distribution rights and
distributing film and video productions to motion picture theaters,
television networks and stations, and exhibitors.'' We note that firms
in this category may be engaged in various industries, including cable
programming. Specific figures are not available regarding how many of
these firms produce and/or distribute programming for cable television.
The SBA has developed a small business size standard for this category,
which is: all such firms having $29.5 million dollars or less in annual
revenues. To gauge small business prevalence in the Motion Picture and
Video Distribution industries, the Commission relies on data currently
available from the U.S. Census for the year 2007. Census Bureau data
for 2007, which now supersede data from the 2002 Census, show that
there were 450 firms in this category that operated for the entire
year. Of these, 434 had annual receipts of $24,999,999 or less, and 16
had annual receipts ranging from not less than $25,000,000 to
$100,000,000 or more. Thus, under this category and associated small
business size standard, the majority of firms can be considered small.
29. Small Incumbent Local Exchange Carriers. We have included small
incumbent local exchange carriers in this present RFA analysis. A
``small business'' under the RFA is one that, inter alia, meets the
pertinent small business size standard (e.g., a telephone
communications business having 1,500 or fewer employees), and ``is not
dominant in its field of operation.'' The SBA's Office of Advocacy
contends that, for RFA purposes, small incumbent local exchange
carriers are not dominant in their field of operation because any such
dominance is not ``national'' in scope. We have therefore included
small incumbent local exchange carriers in this RFA analysis, although
we emphasize that this RFA action has no effect on Commission analyses
and determinations in other, non-RFA contexts.
30. 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. Census data for
2007 shows that there were 31,996 establishments that operated that
year. Of those 31,996, 1,818 operated with more than 100 employees, and
30,178
[[Page 39696]]
operated with fewer than 100 employees. Thus, under this category and
the associated small business size standard, the majority of such firms
can be considered small.
31. 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.
Census data for 2007 shows that there were 31,996 establishments that
operated that year. Of those 31,996, 1,818 operated with more than 100
employees, and 30,178 operated with fewer than 100 employees. Thus,
under this category and the associated small business size standard,
the majority of such firms can be considered small. 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.
32. Radio and Television Broadcasting and Wireless Communications
Equipment Manufacturing. The Census Bureau defines this category as
follows: ``This industry comprises establishments primarily engaged in
manufacturing radio and television broadcast and wireless
communications equipment. Examples of products made by these
establishments are: transmitting and receiving antennas, cable
television equipment, GPS equipment, pagers, cellular phones, mobile
communications equipment, and radio and television studio and
broadcasting equipment.'' The SBA has developed a small business size
standard for ``Radio and Television Broadcasting and Wireless
Communications Equipment Manufacturing,'' which is: all such firms
having 750 or fewer employees. According to Census Bureau data for
2007, there were 919 establishments that operated for part or all of
the entire year. Of those 919 establishments, 771 operated with 99 or
fewer employees, and 148 operated with 100 or more employees. Thus,
under that size standard, the majority of establishments can be
considered small.
33. Audio and Video Equipment Manufacturing. The SBA has classified
the manufacturing of audio and video equipment under in NAICS Codes
classification scheme as an industry in which a manufacturer is small
if it has less than 750 employees. Data contained in the 2007 Economic
Census indicate that 491 establishments in this category operated for
part or all of the entire year. Of those 491 establishments, 456
operated with 99 or fewer employees, and 35 operated with 100 or more
employees. Thus, under the applicable size standard, a majority of
manufacturers of audio and video equipment may be considered small.
34. Internet Publishing and Broadcasting and Web Search Portals.
The Census Bureau defines this category to include ``. . .
establishments primarily engaged in 1) publishing and/or broadcasting
content on the Internet exclusively or 2) operating Web sites that use
a search engine to generate and maintain extensive databases of
Internet addresses and content in an easily searchable format (and
known as Web search portals). The publishing and broadcasting
establishments in this industry do not provide traditional (non-
Internet) versions of the content that they publish or broadcast. They
provide textual, audio, and/or video content of general or specific
interest on the Internet exclusively. Establishments known as Web
search portals often provide additional Internet services, such as
email, connections to other Web sites, auctions, news, and other
limited content, and serve as a home base for Internet users.''
35. In this category, the SBA has deemed an Internet publisher or
Internet broadcaster or the provider of a web search portal on the
Internet to be small if it has fewer than 500 employees. For this
category of manufacturers, Census data for 2007, which supersede
similar data from the 2002 Census, show that there were 2,705 such
firms that operated that year. Of those 2,705 firms, 2,682
(approximately 99%) had fewer than 500 employees and, thus, would be
deemed small under the applicable SBA size standard. Accordingly, the
majority of establishments in this category can be considered small
under that standard.
36. Closed Captioning Services. These entities would be indirectly
affected by our proposed action. The SBA has developed two small
business size standards that may be used for closed captioning
services. The two size standards track the economic census categories,
``Teleproduction and Other Postproduction Services'' and ``Court
Reporting and Stenotype Services.''
37. The first category of Teleproduction and Other Postproduction
Services ``comprises establishments primarily engaged in providing
specialized motion picture or video postproduction services, such as
editing, film/tape transfers, subtitling, credits, closed captioning,
and animation and special effects.'' The relevant size standard for
small businesses in these services is an annual revenue of less than
$29.5 million. For this category, Census Bureau Data for 2007 indicate
that there were 1,605 firms that operated in this category for the
entire year. Of that number, 1,597 had receipts totaling less than
$29,500,000. Consequently we estimate that the majority of
Teleproduction and Other Postproduction Services firms are small
entities that might be affected by our proposed actions.
38. The second category of Court Reporting and Stenotype Services
``comprises establishments primarily engaged in providing verbatim
reporting and stenotype recording of live legal proceedings and
transcribing subsequent recorded materials.'' The size standard for
small businesses in these services is an annual revenue of less than $7
million. For this category, Census Bureau data for 2007 show that there
were 2,706 firms that operated for the entire year. Of this total,
2,590 had annual receipts of under $5 million, and 19 firms had
receipts of $5 million to $9,999,999. Consequently, we estimate that
the majority of Court Reporting and Stenotype Services firms are small
entities that might be affected by our proposed action.
4. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements for Small Entities
39. The FNPRM invites comment on whether the Commission should
impose closed captioning synchronization requirements on apparatus.
Such synchronization requirements could provide that all apparatus that
render closed captions must do so consistent with the timing data
included with the video programming the apparatus receives. The FNPRM
invites comment on the extent to which apparatus are the cause of
synchronization problems, and on the means by which manufacturers could
address closed caption synchronization. The FNPRM also asks whether
video programming owners, providers, and distributors are better suited
than manufacturers to ensure caption quality, including
synchronization, and it asks about the costs and benefits of imposing
caption synchronization requirements on apparatus manufacturers.
Separately, the FNPRM seeks comment on what closed captioning
requirements we should impose on manufacturers of DVD players that do
not render or pass through closed captions, and on manufacturers of
Blu-ray players with
[[Page 39697]]
regard to Blu-ray players playing Blu-ray discs and playing DVDs,
including specific questions about the rendering or pass through of
closed captions. The FNPRM also seeks comment on the costs and benefits
of imposing such requirements. Information received in response to the
FNPRM will enable the Commission to consider the costs that would be
incurred by affected entities, including smaller entities.
5. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
40. 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.\13\
---------------------------------------------------------------------------
\13\ 5 U.S.C. 603(c)(1)-(c)(4).
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41. We note that, pursuant to rules and policies previously adopted
in the Report and Order in this proceeding, the Commission may grant
exemptions to the IP closed captioning rules adopted pursuant to
section 202 of the CVAA where a petitioner has shown that compliance
would present an economic burden (i.e., a significant difficulty or
expense), and may grant exemptions to the apparatus rules adopted
pursuant to section 203 of the CVAA where a petitioner has shown that
compliance is not achievable (i.e., cannot be accomplished with
reasonable effort or expense) or is not technically feasible. This
exemption process enables the Commission to address the impact of the
rules on individual entities, including smaller entities, and to modify
the application of the rules to accommodate individual circumstances.
Further, a video programming provider's or owner's de minimis failure
to comply with the IP closed captioning rules shall not be treated as a
violation, and parties may use alternate means of compliance to the
rules adopted pursuant to either section 202 or section 203 of the
CVAA. Individual entities, including smaller entities, may benefit from
these provisions.
42. Regarding the specific issue of synchronization requirements as
discussed in the FNPRM, the Commission seeks comment on whether video
programming owners, providers, and distributors are better suited than
manufacturers to ensure caption quality, including synchronization. The
Commission also seeks comment on what requirements it should impose on
apparatus, to the extent that apparatus cause closed captioning
synchronization problems. Accordingly, the Commission seeks to allocate
responsibilities appropriately.
43. Regarding the specific issue of DVD players that do not render
or pass through closed captions and Blu-ray players as discussed in the
FNPRM, the Commission seeks comment on the costs and benefits of
imposing closed captioning requirements, including the technical
aspects of what would be required to make closed captioning accessible
on such devices. Accordingly, the Commission seeks to balance the costs
and benefits appropriately in crafting a final rule.
6. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
44. None.
B. Paperwork Reduction Act
45. The FNPRM does not contain proposed information collection(s)
subject to the PRA, Public Law 104-13. In addition, therefore, it does
not contain any new or modified ``information collection burden for
small business concerns with fewer than 25 employees,'' pursuant to the
Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44
U.S.C. 3506(c)(4).
C. Ex Parte Rules
46. Permit-But-Disclose. This proceeding shall be treated as a
``permit-but-disclose'' proceeding in accordance with the Commission's
ex parte rules. Persons making ex parte presentations must file a copy
of any written presentation or a memorandum summarizing any oral
presentation within two business days after the presentation (unless a
different deadline applicable to the Sunshine period applies). Persons
making oral ex parte presentations are reminded that memoranda
summarizing the presentation must (1) list all persons attending or
otherwise participating in the meeting at which the ex parte
presentation was made, and (2) summarize all data presented and
arguments made during the presentation. If the presentation consisted
in whole or in part of the presentation of data or arguments already
reflected in the presenter's written comments, memoranda or other
filings in the proceeding, the presenter may provide citations to such
data or arguments in his or her prior comments, memoranda, or other
filings (specifying the relevant page and/or paragraph numbers where
such data or arguments can be found) in lieu of summarizing them in the
memorandum. Documents shown or given to Commission staff during ex
parte meetings are deemed to be written ex parte presentations and must
be filed consistent with rule Sec. 1.1206(b). In proceedings governed
by Sec. 1.49(f) or for which the Commission has made available a
method of electronic filing, written ex parte presentations and
memoranda summarizing oral ex parte presentations, and all attachments
thereto, must be filed through the electronic comment filing system
available for that proceeding, and must be filed in their native format
(e.g., .doc, .xml, .ppt, searchable .pdf). Participants in this
proceeding should familiarize themselves with the Commission's ex parte
rules.
D. Filing Requirements
47. Comments and Replies. Pursuant to Sec. Sec. 1.415 and 1.419 of
the Commission's rules, 47 CFR 1.415, 1.419, interested parties may
file comments and reply comments on or before the dates indicated on
the first page of this document. Comments may be filed using the
Commission's Electronic Comment Filing System (ECFS). See Electronic
Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (1998).
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/.
Paper Filers: Parties who choose to file by paper must
file an original and one copy of each filing. If more than one docket
or rulemaking number appears in the caption of this proceeding, filers
must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail. All filings must be addressed to the Commission's Secretary,
Office of the Secretary, Federal Communications Commission.
All hand-delivered or messenger-delivered paper filings
for the Commission's Secretary must be delivered to FCC Headquarters at
445 12th St. SW., Room TW-A325, Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand
[[Page 39698]]
deliveries must be held together with rubber bands or fasteners. Any
envelopes and boxes must be disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail must be addressed to 445 12th Street SW., Washington, DC 20554.
48. Availability of Documents. Comments, reply comments, and ex
parte submissions will be available for public inspection 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. Documents
will be available electronically in ASCII, Microsoft Word, and/or Adobe
Acrobat.
49. People with Disabilities. To request materials in accessible
formats for people with disabilities (Braille, large print, electronic
files, audio format), send an email to [email protected] or call the FCC's
Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice),
(202) 418-0432 (TTY).
E. Additional Information
50. For additional information on this proceeding, contact Diana
Sokolow, [email protected], or Maria Mullarkey,
[email protected], of the Media Bureau, Policy Division, (202)
418-2120.
IV. Ordering Clauses
51. Accordingly, it is ordered that pursuant to the Twenty-First
Century Communications and Video Accessibility Act of 2010, Public Law
111-260, 124 Stat. 2751, and the authority found in sections 4(i),
4(j), 303, 330(b), 713, and 716 of the Communications Act of 1934, as
amended, 47 U.S.C. 154(i), 154(j), 303, 330(b), 613, and 617, this
Further Notice of Proposed Rulemaking is adopted, effective thirty (30)
days after the date of publication in the Federal Register.
52. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Further Notice of Proposed Rulemaking in MB Docket No. 11-
154, including the Initial Regulatory Flexibility Act Analysis, to the
Chief Counsel for Advocacy of the Small Business Administration.
List of Subjects in 47 CFR Part 79
Cable television operators, Communications equipment, Multichannel
video programming distributors (MVPDs), Satellite television service
providers, Television broadcasters.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Proposed Rules
For the reasons discussed in the preamble, the Federal
Communications Commission proposes to amend 47 CFR part 79 as follows:
PART 79--CLOSED CAPTIONING AND VIDEO DESCRIPTION OF VIDEO
PROGRAMMING
0
1. The authority citation for Part 79 continues to read as follows:
Authority: 47 U.S.C. 151, 152(a), 154(i), 303, 307, 309, 310,
330, 544a, 613, 617.
0
2. Amend Sec. 79.103 to add paragraph (c)(12) to read as follows:
Sec. 79.103 Closed caption decoder requirements for all apparatus.
* * * * *
(c) * * *
(12) Synchronization. All apparatus that render closed captions
must do so consistent with the timing data included with the video
programming the apparatus receives.
* * * * *
[FR Doc. 2013-15722 Filed 7-1-13; 8:45 am]
BILLING CODE 6712-01-P