DTV Consumer Education Initiative, 15431-15458 [E8-5409]
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Federal Register / Vol. 73, No. 57 / Monday, March 24, 2008 / Rules and Regulations
Transfer and Advancement Act of 1995
(NTTAA), Public Law 104–113, section
12(d) (15 U.S.C. 272 note).
VII. Congressional Review Act
The Congressional Review Act, 5
U.S.C. 801 et seq., generally provides
that before a rule may take effect, the
agency promulgating the rule must
submit a rule report to each House of
the Congress and to the Comptroller
General of the United States. EPA will
submit a report containing this rule and
other required information to the U.S.
Senate, the U.S. House of
Representatives, and the Comptroller
General of the United States prior to
publication of this final rule in the
Federal Register. This final rule is not
a ‘‘major rule’’ as defined by 5 U.S.C.
804(2).
List of Subjects in 40 CFR Part 180
Environmental protection,
Administrative practice and procedure,
Agricultural commodities, Pesticides
and pests, Reporting and recordkeeping
requirements.
Dated: March 18, 2008.
Lois Rossi,
Director, Registration Division, Office of
Pesticide Programs.
Therefore, 40 CFR chapter I is
amended as follows:
I
PART 180—[AMENDED]
1. The authority citation for part 180
continues to read as follows:
I
Authority: 21 U.S.C. 321(q), 346a and 371.
2. Section 180.582 is amended in the
table in paragraph (a)(1) by revising the
tolerances for ‘‘barley, grain’’, ‘‘mango’’
and ‘‘papaya’’; removing the footnote;
and alphabetically adding new
commodities to read as follows:
I
180.582 Pyraclostrobin; tolerances for
residues.
(a)* * * (1)* * *
Parts per
million
Commodity
*
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Avocado ....................................
*
*
*
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*
Barley, grain .............................
*
*
*
*
*
Canistel .....................................
*
*
*
*
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*
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Mango .......................................
*
*
*
*
*
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Oat, grain ..................................
Oat, hay ....................................
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Parts per
million
Commodity
Oat, straw .................................
Papaya ......................................
*
*
*
*
15
0.6
*
Sapodilla ...................................
Sapote, black ............................
Sapote, mamey ........................
*
*
*
*
Star apple .................................
*
*
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*
0.6
0.6
0.6
*
0.6
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*
[FR Doc. E8–5893 Filed 3–21–08; 8:45 am]
BILLING CODE 6560–50–S
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Parts 15, 27, 54, 73, and 76
[CS Docket No. 07–148; FCC 08–56]
DTV Consumer Education Initiative
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
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 PRA@fcc.gov.
FOR FURTHER INFORMATION CONTACT: For
additional information on this
proceeding, please contact Lyle Elder,
Lyle.Elder@fcc.gov, or Eloise Gore,
Eloise.Gore@fcc.gov, of the Media
Bureau, Policy Division, (202) 418–
PO 00000
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15431
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 PRA@fcc.gov.
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 (https://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 fcc504@fcc.gov 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
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Federal Register / Vol. 73, No. 57 / Monday, March 24, 2008 / Rules and Regulations
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.
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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
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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.
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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 fullpower 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.
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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 fullpower 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
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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 fullpower 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
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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 fullpower 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
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Federal Register / Vol. 73, No. 57 / Monday, March 24, 2008 / Rules and Regulations
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.
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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
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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
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Federal Register / Vol. 73, No. 57 / Monday, March 24, 2008 / Rules and Regulations
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
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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
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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.’’
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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 fullpower transition, the Commission needs
to be able to monitor compliance with
and enforce those obligations in a way
that is not prohibitively cost- and timeconsuming. 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 fullpower 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
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responsibilities. Determining whether
the American public is adequately
informed and educated about the fullpower 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
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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 superimposed during programming content
that reminds viewers graphically there
are ‘‘x number of days’’ until the fullpower transition. They will be visually
instructed to call a toll-free number and/
or visit a Web site for details. The length
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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).
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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
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Jkt 214001
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
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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,
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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 https://
www.DTV.gov or calling the MVPD at a
number provided, and more information
about the converter box program by
going to https://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
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Jkt 214001
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 fullpower 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 fullpower 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
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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
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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 DTVeducated consumer accelerate the
spread of knowledge about the fullpower 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
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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 contentrelated 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
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15439
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 fullpower 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 prerecorded movies, or playing video
games). For more information, please
call [the manufacturer], go to https://
www.DTV.gov, or, for converter box
information, go to https://
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
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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
dtvreporting@fcc.gov. 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,
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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
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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 LowIncome 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/LinkUp 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, fullpower 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
https://www.DTV.gov, and more
information about the converter box
program by going to https://
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
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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
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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-
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15441
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-
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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 fullpower 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
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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
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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
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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
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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
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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 fullpower 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
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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
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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 nontranslator or booster entities should be
considered.
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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, fixedsatellite 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,
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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
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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 SBArecognized 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
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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 Cband 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
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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 statutorilyrecognized 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
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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
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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
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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.
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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
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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
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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.
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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, Lyle.Elder@fcc.gov, or Eloise
Gore, Eloise.Gore@fcc.gov, of the Media
Bureau, Policy Division, (202) 418–
2120.
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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
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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
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR parts 15,
27, 54, 73, and 76 as follows:
I
§ 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-topboxes, 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 https://
www.DTV.gov or this manufacturer at
[telephone number], and from https://
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
1. The authority citation for part 27
continues to read as follows:
I
PART 15—RADIO FREQUENCY
DEVICES
Authority: 47 U.S.C. 154, 301, 302, 303,
307, 309, 332, 336, and 337 unless otherwise
noted.
1. The authority citation for part 15
continues to read as follows:
I
I
Authority: 47 U.S.C. 154, 302a, 303, 304,
307, 336, and 544a.
2. Section 15.124 is added to read as
follows:
I
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2. Section 27.20 is added to read as
follows:
§ 27.20 Digital Television Transition
Education Reports.
(a) The requirements of this section
shall apply only with regard to WCS
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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
1. The authority citation for part 54
continues to read as follows:
I
Authority: 47 U.S.C. 151, 154(i), 201, 205,
214, and 254 unless otherwise noted.
2. Section 54.418 is added to read as
follows:
I
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 https://
www.DTV.gov, and from https://
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
1. The authority citation for part 73
continues to read as follows:
I
Authority: 47 U.S.C. 154, 303, 334, 336.
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§ 54.418 Digital Television Transition
Notices by Eligible Telecommunications
Carriers.
I
(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-theair 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
§ 73.674 Digital Television Transition
Notices by Broadcasters.
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2. Section 73.674 is added to read as
follows:
(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
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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 §§ 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 closedcaptioned, notwithstanding § 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 transitionrelated 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-
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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 overthe-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 30second PSA qualifies as a single PSA,
and two 15-second PSAs count as a
single PSA.
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Jkt 214001
(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 superimposed 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,
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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.
I 3. Section 73.3526 is amended by
adding paragraph (e)(11)(iv) to read as
follows:
§ 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.
I 4. Section 73.3527 is amended by
adding paragraph (e)(13) to read as
follows:
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§ 73.3527 Local public inspection file of
noncommercial educational stations.
§ 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 https://
www.DTV.gov or this MVPD at
[telephone number and Web site if
available], and from https://
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.
*
*
*
*
(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 § 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
1. The authority citation for part 76
continues to read as follows:
I
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.
2. Section 76.1630 is added to read as
follows:
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(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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15458
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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 https://
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 https://
hraunfoss.fcc.gov/edocs_public/attachmatch/
FCC–08–56A8.pdf.
[FR Doc. E8–5409 Filed 3–21–08; 8:45 am]
BILLING CODE 6712–01–C
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 679
[Docket No. 071106673–8011–02]
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RIN 0648–XG59
Fisheries of the Exclusive Economic
Zone Off Alaska; Pacific Ocean Perch
for Vessels in the Bering Sea and
Aleutian Islands Trawl Limited Access
Fishery in the Eastern Aleutian District
of the Bering Sea and Aleutian Islands
Management Area
National Marine Fisheries
Service (NMFS), National Oceanic and
AGENCY:
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Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; closure.
SUMMARY: NMFS is prohibiting directed
fishing for Pacific ocean perch for
vessels participating in the Bering Sea
and Aleutian Islands (BSAI) trawl
limited access fishery in the Eastern
Aleutian District of the BSAI. This
action is necessary to prevent exceeding
the 2008 Pacific ocean perch allowable
catch (TAC) specified for vessels
participating in the BSAI trawl limited
access fishery in the Eastern Aleutian
District of the BSAI.
DATES: Effective 1200 hrs, Alaska local
time (A.l.t.), March 19, 2008, through
1200 hrs, A.l.t., September 1, 2008.
FOR FURTHER INFORMATION CONTACT:
Jennifer Hogan, 907–586–7228.
SUPPLEMENTARY INFORMATION: NMFS
manages the groundfish fishery in the
BSAI exclusive economic zone
according to the Fishery Management
Plan for Groundfish of the Bering Sea
and Aleutian Islands Management Area
(FMP) prepared by the North Pacific
Fishery Management Council under
authority of the Magnuson-Stevens
Fishery Conservation and Management
Act. Regulations governing fishing by
U.S. vessels in accordance with the FMP
appear at subpart H of 50 CFR part 600
and 50 CFR part 679.
The 2008 Pacific ocean perch TAC
allocated as a directed fishing allowance
to vessels participating in the BSAI
trawl limited access fishery in the
Eastern Aleutian District of the BSAI is
214 metric tons (mt) as established by
the 2008 and 2009 final harvest
specifications for groundfish in the
BSAI (73 FR 10160, February 26, 2008).
In accordance with § 679.20(d)(1)(iii),
the Administrator, Alaska Region,
NMFS (Regional Administrator), has
determined that the 2008 Pacific ocean
perch TAC allocated to vessels
participating in the BSAI trawl limited
access fishery in the Eastern Aleutian
District of the BSAI will soon be
reached. Consequently, NMFS is
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prohibiting directed fishing for Pacific
ocean perch by vessels participating in
the BSAI trawl limited access fishery in
the Eastern Aleutian District of the
BSAI.
After the effective date of this closure
the maximum retainable amounts at
§ 679.20(e) and (f) apply at any time
during a trip.
Classification
This action responds to the best
available information recently obtained
from the fishery. The Assistant
Administrator for Fisheries, NOAA,
(AA), finds good cause to waive the
requirement to provide prior notice and
opportunity for public comment
pursuant to the authority set forth at 5
U.S.C. 553(b)(B) as such requirement is
impracticable and contrary to the public
interest. This requirement is
impracticable and contrary to the public
interest as it would prevent NMFS from
responding to the most recent fisheries
data in a timely fashion and would
delay the closure of Pacific ocean perch
by vessels participating in the BSAI
trawl limited access fishery in the
Eastern Aleutian District of the BSAI.
NMFS was unable to publish a notice
providing time for public comment
because the most recent, relevant data
only became available as of March 18,
2008.
The AA also finds good cause to
waive the 30-day delay in the effective
date of this action under 5 U.S.C.
553(d)(3). This finding is based upon
the reasons provided above for waiver of
prior notice and opportunity for public
comment.
This action is required by § 679.20
and § 679.91 and is exempt from review
under Executive Order 12866.
Authority: 16 U.S.C. 1801 et seq.
Dated: March 19, 2008.
Emily H. Menashes
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 08–1066 Filed 3–19–08; 1:57pm]
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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.]
Agencies
[Federal Register Volume 73, Number 57 (Monday, March 24, 2008)]
[Rules and Regulations]
[Pages 15431-15458]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-5409]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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
PRA@fcc.gov.
FOR FURTHER INFORMATION CONTACT: For additional information on this
proceeding, please contact Lyle Elder, Lyle.Elder@fcc.gov, or Eloise
Gore, Eloise.Gore@fcc.gov, 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
PRA@fcc.gov.
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
(https://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 fcc504@fcc.gov 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 https://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 https://www.DTV.gov, or, for converter box
information, go to https://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 th