[Federal Register Volume 84, Number 84 (Wednesday, May 1, 2019)]
[Rules and Regulations]
[Pages 18406-18409]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08756]



[[Page 18406]]

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 76

[MB Docket Nos. 18-92 and 17-105; FCC 19-33]


In the Matter of Channel Lineup Requirements; Modernization of 
Media Regulation Initiative

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this final rule document, we eliminate two unnecessary 
rules pertaining to cable operators' channel lineups. First, we 
eliminate the requirement that cable operators maintain at their local 
office a current listing of the cable television channels that each 
cable system delivers to its subscribers. Second, we eliminate the 
requirement that certain cable operators make their channel lineup 
available through their Commission-hosted online public inspection 
file. We conclude that these requirements are unnecessary as channel 
lineups are readily available to consumers through a variety of other 
means. Through this proceeding, we continue our efforts to modernize 
our regulations and reduce unnecessary requirements that can impede 
competition and innovation in the media marketplace.

DATES: Effective May 1, 2019.

FOR FURTHER INFORMATION CONTACT: Kim Matthews, Media Bureau, Policy 
Division, 202-418-2154, or email at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order, FCC 19-33, adopted on April 12, 2019 and released on April 
12, 2019. 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. 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 Report and Order eliminates, and thus does not contain new or 
revised, information collection requirements subject to the Paperwork 
Reduction Act of 1995 (PRA). In addition, therefore, it does not 
contain any new or modified ``information burden for small business 
concerns with fewer than 25 employees'' pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, 44 U.S.C. 3506(c)(4).

Summary of Report and Order

    1. As part of our Modernization of Media Regulation Initiative, 
last year we released a Notice of Proposed Rulemaking, Channel Lineup 
Requirements--Modernization of Media Regulation Initiative, Notice of 
Proposed Rulemaking, 83 FR 19033 (2018) (NPRM), tentatively concluding 
that the requirement in Sec.  76.1705 that cable operators maintain a 
channel lineup locally is outdated and unnecessary and should be 
eliminated. In response, nearly all commenters agree that it is no 
longer necessary for cable operators to maintain channel lineup 
information at their local offices. Specifically, NCTA, ACA, and ITTA 
maintain that channel lineups are now available in numerous places, 
making the requirement to maintain a lineup locally unnecessary. 
Commenters also generally agree with our observation in the NPRM that 
few, if any, consumers interested in channel lineup information are 
likely to access this information by visiting an operator's local 
office as other sources of channel lineup information can be viewed far 
more quickly and easily.
    2. We adopt our tentative conclusion and eliminate Sec.  76.1705. 
As discussed in the NPRM, this requirement was originally adopted 
nearly 50 years ago as part of the Commission's technical standard 
performance rules for cable. Among the Commission's goals in the 1972 
Cable Order was to ensure that the ``channels delivered to subscribers 
conform to the capability of the television broadcast receiver.'' While 
the Commission did not explain in its order exactly why it believed it 
was necessary for a system to maintain at its local office a list of 
the channels it delivers, it appears that the requirement was intended 
to help the Commission verify compliance with technical performance 
standards that applied to certain cable channels at that time.
    3. Regardless of the original purpose of the requirement to 
maintain a channel lineup locally, we conclude that the requirement is 
no longer necessary as information about the channel lineups of 
individual cable operators is available today through other sources 
including, in many cases, the operator's own website, on-screen 
electronic program guides, and paper guides. These sources are more 
readily and easily accessible to consumers and others than the 
operator's local office. In addition, as we noted in the NPRM, Sec.  
76.1602(b) of the Commission's rules separately requires cable 
operators to provide information to subscribers regarding the ``channel 
positions of programming carried on the system'' and ``products and 
services offered'' at the time of installation, at least annually, and 
at any time upon request. Thus, channel lineup information is actively 
sent to cable subscribers at least once a year and is required to be 
made available upon request at any time. Moreover, as several 
commenters point out, cable operators have strong economic incentives 
to ensure that channel lineup information reaches both existing and 
prospective customers so that they can better compete in the video 
marketplace. Commenters note that customers have a choice of MVPDs and 
not making this information easily available would almost certainly 
result in the loss of potential and existing customers.
    4. Thus, we conclude that because channel lineup information is 
available from many sources today and operators have an incentive to 
ensure that this information is widely disseminated, the burden imposed 
by Sec.  76.1705 is unnecessary, and it is appropriate to eliminate 
this regulation. In reaching this conclusion, we disagree with CCTV 
that cable operators should continue to be required to provide channel 
lineups at local offices because PEG channels and program details may 
not be included in cable operators' electronic program guides. First, 
we note that our rules do not require cable operators to provide 
``program details'' in their channel lineups, so our action today will 
have no impact on the dissemination of program details by operators. 
Moreover, there is no evidence in the record that the channel lineup 
information in an operator's local office would be different from that 
in an electronic program guide or that members of the public visit 
operators' local offices to obtain channel lineups in order to see 
which channels are PEG channels. Thus, retaining Sec.  76.1705

[[Page 18407]]

would not assure that information regarding PEG channels would be made 
available in a manner that would satisfy CCTV or produce any meaningful 
benefit.
    5. We also eliminate the requirement in Sec.  76.1700(a)(4) of our 
rules that cable operators make channel lineup information available 
for public inspection through the online public file hosted by the 
Commission. Similar to our determination with respect to Sec.  76.1705, 
we conclude that the requirement in Sec.  76.1700(a)(4) is unnecessary 
in light of the widespread availability of channel lineup information 
from other sources that are more likely to be accessed by customers and 
others seeking this information.
    6. As discussed in the NPRM, in 2016, the Commission expanded the 
list of entities required to maintain an online public file to include, 
among others, operators of cable systems with at least 1000 
subscribers. In the Expanded Online Public File Order, Expansion of 
Online Public File Obligations to Cable and Satellite TV Operators and 
Broadcast and Satellite Radio Licensees, Report and Order, 81 FR 10105 
(2016), the Commission required cable operators subject to the online 
file requirement to comply with Sec.  76.1700(a)(4) either by uploading 
to the online public file information regarding their current channel 
lineup, and keeping the information up-to-date, or by providing a link 
in the online file to the channel lineup maintained by the operator at 
another online location. In the NPRM in this proceeding, we invited 
comment on whether we should eliminate the requirement that cable 
operators make channel lineup information available via the online 
public file on the ground that consumers have multiple other sources of 
information about a cable system's current channel lineup. Commenters 
in favor of eliminating the rule argue generally that channel lineup 
information is available today from multiple other sources, making the 
rule unnecessary. Those opposed to eliminating the rule argue generally 
that it helps ensure that broadcasters and regulators as well as 
consumers have access to accurate and up-to-date channel lineup 
information.
    7. We agree with NCTA, ACA, and ITTA that, because it is now easy 
to access channel lineup information from company websites, on-screen 
electronic program guides, and paper guides, it is unnecessary to 
require cable operators to also make channel lineup information 
available via the online public file. We agree with these commenters 
that consumers seeking channel lineup information are more likely to 
look first to these alternate sources of information rather than the 
Commission's online public file database. It is most likely that 
current subscribers would first access their cable operator's 
electronic program guide or website to obtain channel lineup 
information. Prospective customers also are more likely to look first 
to a cable provider's website to determine what channels it delivers. 
In addition, as noted above, operators are also required to make 
channel lineup information available upon request. Moreover, we note 
that DBS providers are not currently required to post channel lineup 
information in their online files. Thus, eliminating Sec.  
76.1700(a)(4) will establish regulatory parity between cable operators 
and DBS providers with respect to channel lineup information. We note 
that no commenter argues that it is difficult to access channel lineup 
information for DBS providers or for cable systems with fewer than 
1,000 subscribers which are not required to maintain an online public 
file. Although we note that some commenters, including local 
regulators, broadcasters, and an organization representing PEG channels 
urge us to retain this online public file requirement, we find that 
channel lineup information can just as easily be accessed through other 
online means such as the cable operator's or a third-party website.
    8. We disagree with NAB that other sources of channel lineup 
information are not an adequate substitute for the requirement that 
channel lineups be placed in the online public file. As discussed 
above, we believe that channel lineup information is easily accessible 
to the public, broadcasters, and regulators via the cable operator's 
own website or a third-party site. We also disagree with those 
commenters who argue that alternate sources of channel lineup 
information are less likely to be up-to-date than the information in 
the online public file. In fact, many cable operators currently elect 
to include a link in the online file to the channel lineup they 
maintain online elsewhere. Thus, for these operators the information 
available via the operator's website or another website is the same as 
that in the online file. We also believe that all cable operators have 
a marketplace incentive to ensure that the channel lineup information 
they disseminate to the public is accurate, making a regulatory mandate 
unnecessary.
    9. Two commenters claim that channel lineups maintained online by 
cable operators do not provide accurate and complete listings with 
respect to PEG channels. Commenters further argue that cable operators 
commonly do not include information about PEG channels in electronic 
program guides. However, we have reviewed the weblinks provided by ACM 
and, like ACA, we did not detect any omissions of PEG channel listings. 
Moreover, we note there is no evidence in the record that the channel 
lineups maintained in operators' online public files differ from those 
on the operators' own websites, third-party websites, or in electronic 
program guides. With regard to the claim that PEG program information 
is lacking in the operators' websites or electronic program guides, as 
stated above, our rules do not require program information be included 
alongside the channel listings with regard to any channels. We agree 
with ACA that cable operators have an economic incentive to provide 
complete and accurate channel listings, including PEG channels. Cable 
operators incur costs related to carrying every channel and would have 
no incentive to fail to provide complete information regarding the 
channels they deliver.

Procedural Matters

A. Final Regulatory Flexibility Analysis

    10. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Notice of Proposed Rulemaking in this proceeding. 
The Federal Communications Commission (Commission) sought written 
public comment on the proposals in the NPRM, including comment on the 
IRFA. We received no comments specifically directed toward the IRFA. 
This Final Regulatory Flexibility Analysis (FRFA) conforms to the RFA.
1. Need for, and Objectives of, the Report and Order
    11. In this Report and Order, we eliminate our rules requiring 
cable operators to maintain copies of their channel lineups. First, we 
eliminate Sec.  76.1705, which requires cable operators to maintain at 
their local office a current listing of the cable television channels 
that each cable system delivers to its subscribers. Second, we 
eliminate the requirement in Sec.  76.1700(a)(4) that certain cable 
operators make their channel lineup available through their Commission-
hosted online public inspection file. We conclude that these 
requirements are unnecessary as channel lineups are readily available 
to consumers and others through a variety of other sources including, 
in many cases, the operator's

[[Page 18408]]

own website, third-party websites, on-screen electronic program guides, 
and paper guides. Through this proceeding, we continue our efforts to 
modernize our regulations and reduce unnecessary requirements that can 
impede competition and innovation in the media marketplace.
2. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA
    12. No comments were filed in response to the IRFA.
3. Description and Estimate of the Number of Small Entities To Which 
the Proposed Rules 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. The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A small business concern is one which: (1) Is independently owned 
and operated; (2) is not dominant in its field of operation; and (3) 
satisfies any additional criteria established by the SBA. Below, we 
provide a description of such small entities, as well as an estimate of 
the number of such small entities, where feasible.
    14. Cable Companies and Systems (Rate Regulation Standard). The 
Commission has 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 nine of the 4,600 cable 
operators active nationwide are small under the 400,000 subscriber size 
standard. In addition, under the Commission's rate regulation rules, a 
``small system'' is a cable system serving 15,000 or fewer subscribers. 
Of the 4,600 active cable systems nationwide, we estimate that 
approximately 3,900 percent have 15,000 or fewer subscribers, and 700 
have more than 15,000 subscribers. Thus, under this standard as well, 
we estimate that most cable systems are small entities.
    15. 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 
one 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.'' There are approximately 52,403,705 
cable video subscribers in the United States today. Accordingly, an 
operator serving fewer than 524,037 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, we find that all but nine incumbent 
cable operators are small entities under this 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. Although it seems certain that 
some of these cable systems operators are affiliated with entities 
whose gross annual revenues exceed $250 million, we are unable at this 
time to estimate with greater precision the number of cable system 
operators that would qualify as small cable operators under the 
definition in the Communications Act.
4. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements
    16. The Commission anticipates that the rule changes adopted in 
this Report and Order will lead to an immediate, long-term reduction in 
reporting, recordkeeping, and other compliance requirements for all 
cable operators, including small entities. Specifically, cable 
operators will no longer be required to maintain a listing of the 
channels delivered by the system at their local office, and systems 
with more than 1,000 subscribers will no longer be required to make 
their channel lineup available through their Commission-hosted online 
public inspection file.
5. Steps Taken To Minimize Significant Economic Impact on Small 
Entities and Significant Alternatives Considered
    17. 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 and reporting requirements under the rule for such 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.''
    18. The Commission considered but ultimately declined to impose new 
public file requirements on cable systems with fewer than 1,000 
subscribers. Such systems have always been exempt from online public 
file requirements but must maintain local public inspection files. In 
addition, these smaller cable operators are currently subject to the 
requirement in Sec.  76.1705, being eliminated in this Report and 
Order, that they maintain a copy of their current channel lineup 
locally. In the NPRM, we asked whether, if we eliminate Sec.  76.1705, 
there will continue to be adequate access to information about the 
channels delivered by smaller cable systems and whether we should 
require them to continue to make channel lineup information available 
locally or make it available online. Consistent with our conclusions 
regarding larger cable systems, the Commission concluded in the Report 
and Order that operators of smaller systems also routinely make their 
channel lineups available through other sources and have an economic 
incentive to ensure that information about their channel lineups is 
accurate, complete, and widely disseminated. Accordingly, the 
Commission concludes that no new regulatory mandates with respect to 
channel lineup information are necessary to ensure that adequate 
information is available regarding the channels delivered by these 
smaller cable systems.
    19. Overall, we believe the Report and Order appropriately balances 
the interests of the public against the interests of the entities who 
are subject to the rules, including those that are small entities.
6. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rule
    20. None.

B. Paperwork Reduction Act Analysis

    21. This document eliminates, and thus does not contain new or 
revised, information collection requirements subject to the Paperwork 
Reduction Act of 1995 (PRA), Public Law 104-13, 44 U.S.C. 3501-3520. In 
addition, therefore, it does not contain any new or modified 
``information burden for small business concerns with fewer than 25 
employees'' pursuant to the Small Business Paperwork Relief Act of 
2002, Public Law 107-198, 44 U.S.C. 3506(c)(4).

[[Page 18409]]

C. Congressional Review Act

    22. The Commission will send a copy of this Order in a report to 
Congress and the Government Accountability Office pursuant to the 
Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).

Ordering Clauses

    23. Accordingly, It is ordered that, pursuant to the authority 
contained in Sections 1, 4(i), 4(j), 303(r), 601, and 624(e) of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 
303(r), 521, and 544(e), the Report and order is adopted.
    24. It is further ordered that the Commission's rules are hereby 
amended as set forth in the Final Rules, effective as of the date of 
publication of a summary in the Federal Register.
    25. 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 Analysis, to the Chief Counsel for Advocacy of the Small 
Business Administration
    26. It is further ordered that the Commission will send a copy of 
the Report and Order in a report to Congress and the Government 
Accountability Office pursuant to the Congressional Review Act (CRA).
    27. It is further ordered that should no petitions for 
reconsideration or petitions for judicial review be timely filed, MB 
Docket No. 18-92 shall be terminated and its docket closed.

List of Subjects in 47 CFR Part 76

    Cable television, Recording and recordkeeping requirements.

Federal Communications Commission.

Marlene Dortch,
Secretary.

Final Rules

    For reasons set forth in the preamble, the Federal Communications 
Commission amends 47 CFR part 76 to read as follows:

PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE

0
1. The authority citation for part 76 continues to read as follows:

    Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 302a, 303, 
303a, 307, 308, 309, 312, 315, 317, 325, 338, 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.


Sec.  76.1700   [Amended]

0
2. Amend Sec.  76.1700 by removing and reserving paragraph (a)(4).


Sec.  76.1705  [Removed and Reserved]

0
3. Remove and reserve Sec.  76.1705.

[FR Doc. 2019-08756 Filed 4-30-19; 8:45 am]
 BILLING CODE 6712-01-P