Modernization of Media Regulation Initiative: Revisions to Cable Television Rate Regulations, 60773-60776 [2018-25326]
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Federal Register / Vol. 83, No. 228 / Tuesday, November 27, 2018 / Rules and Regulations
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Carbon monoxide,
Incorporation by reference,
Intergovernmental relations, Lead,
Nitrogen dioxide, Ozone, Particulate
matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile
organic compounds.
Authority: 42 U.S.C. 7401 et seq.
Dated: November 2, 2018.
Chris Hladick,
Regional Administrator, Region 10.
Subpart C—Alaska
2. In § 52.70, the table in paragraph (e)
is amended by:
■ a. Revising entry III.II.D.; and
■ b. Adding entries ‘‘Infrastructure
Requirements—2012 PM2.5 NAAQS’’
and ‘‘Infrastructure Requirements—
1997, 2006, and 2012 PM2.5 NAAQS’’
after entry ‘‘Interstate Transport
Requirements—2010 SO2 NAAQS’’.
The revision and additions read as
follows:
■
For the reasons set forth in the
preamble, 40 CFR part 52 is amended as
follows:
PART 52—APPROVAL AND
PROMULGATION OF
IMPLEMENTATION PLANS
1. The authority citation for part 52
continues to read as follows:
■
§ 52.70
Authority: 42 U.S.C. 7401 et seq.
*
Identification of plan.
*
*
(e) * * *
*
*
EPA-APPROVED ALASKA NONREGULATORY PROVISIONS AND QUASI-REGULATORY MEASURES
Applicable
geographic or nonattainment area
Name of SIP
provision
*
*
State
submittal
date
*
EPA approval
date
*
Explanations
*
*
*
*
*
*
*
*
*
State of Alaska Air Quality Control Plan: Volume III. Appendices
Section II State Air Quality Control Program
*
*
*
III.II.D. CAA Section 110 Infra- Statewide ...............................
structure Certification Documentation and Supporting
Documents.
*
*
*
3/10/2016
*
*
11/27/2018, [Insert Federal
Register citation].
*
*
Infrastructure and Interstate Transport
*
*
*
*
*
Infrastructure Requirements—
2012 PM2.5 NAAQS.
Statewide ...............................
3/10/2016
11/27/2018, [Insert Federal
Register citation].
Infrastructure Requirements—
1997, 2006, and 2012
PM2.5 NAAQS.
Statewide ...............................
3/10/2016
11/27/2018, [Insert Federal
Register citation].
*
*
*
[FR Doc. 2018–25681 Filed 11–26–18; 8:45 am]
BILLING CODE 6560–50–P
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*
FEDERAL COMMUNICATIONS
COMMISSION
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47 CFR Part 76
[MB Docket Nos. 17–105, 02–144; MM
Docket Nos. 92–266, 93–215; CS Docket
Nos. 94–28, 96–157; FCC 18–148]
Modernization of Media Regulation
Initiative: Revisions to Cable
Television Rate Regulations
Federal Communications
Commission
AGENCY:
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Approves SIP for purposes of
CAA sections 110(a)(2)(A),
(B), (C), (D)(i)(II), (D)(ii),
(E), (F), (H), (J), (K), (L),
and (M) for the 2012 PM2.5
NAAQS.
Approves SIP for purposes of
CAA sections 110(a)(2)(G)
for the 1997, 2006, and
2012 PM2.5 NAAQS.
*
ACTION:
*
Final rule.
In this document, the Federal
Communications Commission
(Commission) eliminate or revise
expired and outdated cable rate
regulation rules and close a related
dormant docket.
DATES: Effective date: December 27,
2018.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
additional information on this
proceeding, contact Katie Costello,
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For
60774
Federal Register / Vol. 83, No. 228 / Tuesday, November 27, 2018 / Rules and Regulations
daltland on DSKBBV9HB2PROD with RULES
katie.costello@fcc.gov, of the Media
Bureau, (202) 418–2233.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Report
and Order, FCC 18–148, adopted and
released on October 23, 2018. The full
text of these documents 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 these documents
in accessible formats (computer
diskettes, large print, audio recording,
and Braille), send an email to fcc504@
fcc.gov or call the Commission’s
Consumer and Governmental Affairs
Bureau at (202) 418–0530 (voice), (202)
418–0432 (TTY).
Synopsis
In the Report and Order, we eliminate
and revise rules that have become
obsolete due to the sunset of rate
regulation for cable programming
service tiers, are unnecessary given
changes in industry practices, or have
become obsolete due to changes in
Commission policy. For the reasons
stated below, we find good cause to
modify § 76.923(i) without notice and
comment because the modification in
question merely codifies an existing
uncodified rule. We also eliminate the
hard copies of Forms 328 and 329
located at the end of § 76.985 of our
rules. We are not changing the text of
§ 76.985 by deleting these hard copies,
and they are unnecessary because Form
329 is no longer in use and Form 328
is available electronically. Finally, we
eliminate §§ 76.986, 76.987, 76.922(g)(7)
and 76.922(n) of the rules and close
proceedings related to uniform regional
rate structures, which are moot due to
the sunset of cable programming service
tier (CPST) regulation.
A la Carte Packages and New Product
Tiers. We eliminate §§ 76.986 and
76.987 because they are vestiges of
CPST regulation. These rule sections
address ‘‘a la carte’’ packages and ‘‘new
product tiers,’’ both of which are types
of CPSTs. Therefore, because of the
sunset of CPST regulation we remove
these two sections from our rules.
Equipment Leasing. We modify
§ 76.923(i) to codify our previously
adopted uncodified rule that, where an
operator offers its equipment for sale as
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well as for lease, the sales price is
unregulated. The lease price offers the
safety of a cost-based regulated rate to
subscribers and the operator’s sales
price for the same equipment is
regulated by the market.
Single Tier Small System Headend
Upgrades. We remove § 76.922(g)(7) to
reflect the sunset of the opportunity for
single tier small systems to make
headend upgrade adjustments. The time
period for taking this rate increase,
January 1, 1995 to December 31, 1997,
has expired, and we see no continued
need for this rule section.
Uniform Regional Rate Structures.
The Notice of Proposed Rulemaking in
the Cable Pricing Flexibility Order, 61
FR 45387, and our interpretation in the
Uniform Rate Order, 62 FR 15121, of
§ 76.922(n) of our rules are both moot
due to the deregulation of the CPST. In
the Cable Pricing Flexibility Order, we
proposed exceptions to the CPST rate
rules to allow operators to reduce BST
prices and offset those reductions with
increased CPST rates. Section 76.922(n)
permits similar offsets for CPST rates in
order to permit cable operators to
establish uniform rates across multiple
franchise areas. Now that CPST rates are
no longer regulated, an operator may
increase CPST rates without
Commission approval so the exceptions
to the CPST rate rules are no longer
needed. Accordingly, we terminate CS
Docket No. 96–157 and remove
§ 76.922(n) from our rules.
Forms 328 and 329. Two hard copy
FCC forms are located at the end of
§ 76.985 of our rules in the Code of
Federal Regulations. Form 329 is an
obsolete CPST complaint form. Form
328 is now available electronically. We
delete these hard copy forms, including
instructions, from § 76.985 and modify
§ 76.910 to direct interested parties to
the electronic Form 328 and
instructions.
Paperwork Reduction Act.—The
Report and Order eliminates, and thus
does not contain new or revised,
information collection requirements
subject to the Paperwork Reduction Act
of 1995, Public Law 104–13 (44 U.S.C.
3501–3520). In addition, therefore, it
does not contain any new or modified
‘‘information burden for small business
concerns with fewer than 25
employees’’ pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, 44 U.S.C.
3506(c)(4).
Final Regulatory Flexibility Analysis.
As required by the Regulatory
Flexibility Act of 1980, as amended
(‘‘RFA’’), an Initial Regulatory
Flexibility Analysis (‘‘IRFA’’) was
incorporated in the Notice of Proposed
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Rulemaking and Order, Revisions to
Cable Television Rate Regulations
(‘‘NPRM’’). The Commission sought
written public comment on the
proposals in the NPRM, including
comment on the IRFA. No comments on
the IRFA were received. This present
Final Regulatory Flexibility Analysis
(‘‘FRFA’’) conforms to the RFA.
Need for, and Objectives of, the
Revised Rules. In the past, the
Commission developed rules and forms
for the regulation of cable television
rates when both the basic service tier
(‘‘BST’’) and the cable programming
service tiers (‘‘CPST’’) were subject to
rate regulation. In this Report and
Order, the Commission updates some of
these regulations. Updating is needed so
that the rules and rate forms will reflect
the March 1999 sunset of cable
programming services tier (‘‘CPST’’) rate
regulation pursuant to the
Telecommunications Act of 1996.
Finally, updating is required to address
issues which have arisen over time. This
Report and Order makes changes to
remove rule sections that are obsolete
due to the sunset of upper tier
regulation. For cable systems in general,
including small cable systems, in this
Report and Order the Commission
deletes or modifies rules relating solely
to CPST regulation and modifies a rule
to codify existing policy. All of these
changes have the effect of eliminating or
reducing regulatory burdens.
Legal Basis. The authority for this
action is contained in sections 1, 2(a), 3,
4(i), 4(j), 303(r), 601(3), 602, and 623 of
the Communications Act of 1934, as
amended, 47 U.S.C. 151, 152(a), 153,
154(i), 154(j), 303(r), 521, 522, and 543.
Description and Estimate of the
Number of Small Entities to Which the
Proposed Rules Will Apply. The RFA
directs agencies to provide a description
of, and where feasible, an estimate of
the number of small entities that may be
affected by the modified rules. The RFA
generally defines the term ‘‘small
entity’’ as having the same meaning as
the terms ‘‘small business,’’ ‘‘small
organization,’’ and ‘‘small governmental
jurisdiction.’’ In addition, the term
‘‘small business’’ has the same meaning
as the term ‘‘small business concern’’
under the Small Business Act. A ‘‘small
business concern’’ is one which: (1) Is
independently owned and operated; (2)
is not dominant in its field of operation;
and (3) satisfies any additional criteria
established by the SBA.
The SBA has developed a small
business size standard for Cable and
Other Program Distribution, which
consists of all such firms having $12.5
million or less in annual receipts. This
category includes, among others, cable
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Federal Register / Vol. 83, No. 228 / Tuesday, November 27, 2018 / Rules and Regulations
operators, closed circuit television
services, direct broadcast satellite
services, multipoint distribution
services, open video systems, satellite
master antenna television systems, and
subscription television services.
According to Census Bureau data for
1997, in this category, there was a total
of 1,311 firms that operated for the
entire year, of which 1180 have less
than $10 million in revenue and an
additional 52 firms had revenue of $10
million or more but less than $25
million. Thus, under this size standard,
the majority of firms can be considered
small. In this category, only cable
system operators are affected by this
Report and Order and we address them
below to provide a more precise
estimate of the affected small entities.
Cable Systems. The Commission has
developed its own small business size
standard for a small cable operator for
the purposes of rate regulation. Under
the Commission’s rules, a ‘‘small cable
company’’ is one serving fewer than
400,000 subscribers nationwide. Based
on our most recent information, we
estimate that there were 1,439 cable
operators that qualified as small cable
companies at the end of 1995. Since
then, some of those companies may
have grown to serve over 400,000
subscribers, and others may have been
involved in transactions that caused
them to be combined with other cable
operators. Consequently, we estimate
that there are fewer than 1,439 small
cable companies that may be affected by
the proposed rules. A ‘‘small system’’
under the Commission’s rules, is one
serving ‘‘15,000 or fewer subscribers.
The service area of a small system shall
be determined by the number of
subscribers that are served by the
system’s principal headend, including
any other headends or microwave
receive sites that are technically
integrated to the principal headend.’’
The Communications Act of 1934, as
amended, also contains a size standard
for a ‘‘small cable operator,’’ which is ‘‘a
cable operator that, directly or through
an affiliate, serves in the aggregate fewer
than one percent of all subscribers in
the United States and is not affiliated
with any entity or entities whose gross
annual revenues in the aggregate exceed
$250,000,000.’’ The Commission has
determined that there are 67,700,000
cable 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 of its affiliates, do
not exceed $250 million in the
aggregate. Based on this available data,
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we estimate that the number of cable
operators serving 677,000 subscribers or
less totals approximately 1,450. We do
not request or collect information on
whether cable operators are affiliated
with entities whose gross annual
revenues exceed $250,000,000, and
therefore are unable to estimate
accurately the number of cable system
operators that would qualify as small
cable operators under the definition in
the Communications Act.
Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements for Small Entities. No
increase in the regulatory burden on
small systems or small governmental
entities is expected to result from this
proceeding.
Steps Taken to Minimize Significant
Impact on Small Entities and
Significant Alternatives Considered. The
RFA requires an agency to describe any
significant, specifically small business,
alternatives that it has considered in
reaching its approach, which may
include the following four alternatives
(among others): ‘‘(1) The establishment
of differing compliance or reporting
requirements or timetables that take into
account the resources available to small
entities; (2) the clarification,
consolidation, or simplification of
compliance and reporting requirements
under the rule for such small entities;
(3) the use of performance rather than
design standards; and (4) an exemption
from coverage of the rule, or any part
thereof, for such small entities.’’ In
general, this item does not impose any
new regulatory burdens on large or
small entities. Rather, it serves to
streamline and update rules, thereby
relieving burdens in general. Although
the Commission requested comment on
any changes in the rate rules that might
address continuing difficulties faced by
operators of small systems, such as the
problems associated with the
simultaneous growth in competition
and the need for additional investment
to upgrade facilities, no comments were
received. The changes do not increase
the regulatory burden small systems
face as a result of rate regulation and
may lessen it by reducing the amount of
information required to be reported.
Federal Rules Which Duplicate,
Overlap, or Conflict with the
Commission’s Rules. None.
For the reasons stated above, IT IS
ORDERED that, pursuant to the
authority found in sections 1, 2(a), 3,
4(i), 4(j), 303(r), 601(3), 602, and 623 of
the Communications Act of 1934, as
amended, 47 U.S.C. 151, 152(a), 153,
154(i), 154(j), 303(r), 521, 522, 543, this
Report and Order IS ADOPTED. IT IS
FURTHER ORDERED that, pursuant to
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60775
the authority found in sections 1, 2(a),
3, 4(i), 4(j), 303(r), 601(3), 602, and 623
of the Communications Act of 1934, as
amended, 47 U.S.C. 151, 152(a), 153,
154(i), 154(j), 303(r), 521, 522, 543, the
Commission’s rules ARE AMENDED as
set forth below. IT IS FURTHER
ORDERED that CS Docket No. 96–157 IS
TERMINATED. 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. 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 Government
Accountability Office pursuant to the
Congressional Review Act, see 5 U.S.C.
801(a)(1)(A).
List of Subjects in 47 CFR Part 76
Cable television, Reporting and
recordkeeping requirements.
Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer, Office of the
Secretary.
Final Rules
For the reasons set forth in the
preamble, the Federal Communications
Commission amends 47 CFR part 76 as
follows:
PART 76—MULTICHANNEL VIDEO
AND CABLE TELEVISION SERVICE
1. The authority citation for part 76
continues to read as follows:
■
Authority: 47 U.S.C. 151, 152, 153, 154,
301, 302, 302a, 303, 303a, 307, 308, 309, 312,
315, 317, 325, 339, 340, 341, 503, 521, 522,
531, 532, 534, 535, 536, 537, 543, 544, 544a,
545, 548, 549, 552, 554, 556, 558, 560, 561,
571, 572, 573.
2. Amend § 76.901 by removing
paragraph (d), redesignating paragraphs
(e) and (f) as paragraphs (d) and (e), and
revising the newly designated paragraph
(e) to read as follows:
■
§ 76.901
Definitions.
*
*
*
*
*
(e) Small cable operator. A small
cable operator is an 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. For
purposes of this definition, an operator
shall be deemed affiliated with another
entity if that entity holds a 20 percent
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Federal Register / Vol. 83, No. 228 / Tuesday, November 27, 2018 / Rules and Regulations
or greater equity interest (not including
truly passive investment) in the operator
or exercises de jure or de facto control
over the operator.
(1) Using the most reliable sources
publicly available, the Commission
periodically will determine and give
public notice of the subscriber count
that will serve as the 1 percent
threshold until a new number is
calculated.
(2) For a discussion of passive
interests with respect to small cable
operators, see Implementation of Cable
Act Reform Provisions of the
Telecommunications Act of 1996,
Report and Order in CS Docket No. 96–
85, FCC 99–57 (released March 29,
1999).
(3) If two or more entities unaffiliated
with each other each hold an equity
interest in the small cable operator, the
equity interests of the unaffiliated
entities will not be aggregated with each
other for the purpose of determining
whether an entity meets or passes the 20
percent affiliation threshold.
■ 3. Amend § 76.910 by revising the first
sentence and adding a second sentence
to paragraph (c) to read as follows:
§ 76.910 Franchising authority
certification.
*
*
*
*
*
(c) The written certification described
in paragraph (b) of this section shall be
made by completing and filing FCC
Form 328. FCC Form 328 can be
obtained from the internet at https://
www.fcc.gov/Forms/Form328/328.pdf or
by calling the FCC Forms Distribution
Center at 1–800–418–3676. * * *
*
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*
*
§ 76.922
[Amended]
4. Amend § 76.922 by removing and
reserving paragraph (g)(7) and removing
paragraph (n).
■ 5. Amend § 76.923 by adding a final
sentence to paragraph (i) to read as
follows:
■
§ 76.923 Rates for equipment and
installation used to receive the basic
service tier.
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[Amended]
6. Amend § 76.985(c) by removing
forms entitled ‘‘FCC329’’,
‘‘INSTRUCTIONS FOR FCC 328’’ and
‘‘FCC328’’.
■
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■
[Removed]
7. Remove §§ 76.986 and 76.987.
[FR Doc. 2018–25326 Filed 11–26–18; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 635
[Docket No. 150413357–5999–02]
RIN 0648–XG647
Atlantic Highly Migratory Species;
Commercial Blacktip Sharks in the
Eastern Gulf of Mexico Sub-Region;
Closure
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; closure.
AGENCY:
NMFS is closing the
commercial fishery for blacktip sharks
in the eastern Gulf of Mexico subregion. This action is necessary because,
as of reports received by November 16,
2018, the commercial landings of
blacktip sharks in the eastern Gulf of
Mexico sub-region for the 2018 fishing
season have reached 97 percent of the
available commercial quota. Therefore,
NMFS is closing the blacktip shark
fishery in the eastern Gulf of Mexico
sub-region. This closure will affect
anyone commercially fishing for
blacktip sharks in the eastern Gulf of
Mexico sub-region.
DATES: The commercial fishery for
blacktip sharks in the eastern Gulf of
Mexico sub-region is closed effective
11:30 p.m. local time November 25,
2018, until the end of the 2018 fishing
season on December 31, 2018, or until
and if NMFS announces via a notice in
the Federal Register that additional
quota is available and the season is
reopened.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
*
*
*
*
(i) * * * Equipment sales by an
operator will be unregulated where the
operator offers subscribers the same
equipment under regulated leased rates.
*
*
*
*
*
§ 76.985
§§ 76.986 and 76.987
Lauren Latchford or Karyl BrewsterGeisz 301–427–8503; fax 301–713–1917.
SUPPLEMENTARY INFORMATION: The
Atlantic shark fisheries are managed
under the 2006 Consolidated Highly
Migratory Species (HMS) Fishery
Management Plan (FMP), its
amendments, and implementing
regulations (50 CFR part 635) issued
under authority of the MagnusonStevens Fishery Conservation and
Management Act (16 U.S.C. 1801 et
seq.).
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Under § 635.5(b)(1), dealers must
electronically submit reports on sharks
that are first received from a vessel on
a weekly basis through a NMFSapproved electronic reporting system.
Reports must be received by no later
than midnight, local time, of the first
Tuesday following the end of the
reporting week unless the dealer is
otherwise notified by NMFS.
Under § 635.28(b)(2), when NMFS
calculates that the landings for any
species and/or management group that
has a non-linked quota has reached or
is projected to reach a threshold of 80
percent of the available quota, NMFS
will file for publication, with the Office
of the Federal Register, a notice of
closure for that species and/or
management group that will be effective
no fewer than four days from date of
filing.
From the effective date and time of
the closure until and if NMFS
announces, via a notice in the Federal
Register, that additional quota is
available and the season is reopened,
the fisheries for all linked species and/
or management groups and specified
non-linked species and/or management
groups are closed, even across fishing
years.
On November 22, 2017 (82 FR 55512),
NMFS announced that for 2018, the
commercial eastern Gulf of Mexico
blacktip shark sub-regional quota was
37.7 metric tons (mt) dressed weight
(dw) (83,158 lb dw). Dealer reports
received through November 16, 2018,
indicate that 97 percent (36.7 mt dw) of
the available eastern Gulf of Mexico
blacktip shark sub-regional quota has
been landed. Based on these dealer
reports, landings have exceeded 80
percent of the eastern Gulf of Mexico
blacktip shark sub-regional quota.
Therefore, the blacktip shark fishery
meets the closure threshold.
Accordingly, NMFS is closing the
blacktip shark fishery in the eastern
Gulf of Mexico sub-region as of 11:30
p.m. local time November 25, 2018.
All other shark species or
management groups in the eastern Gulf
of Mexico sub-region that are currently
open will remain open, including the
commercial eastern Gulf of Mexico
aggregated LCS, eastern Gulf of Mexico
hammerhead sharks, Gulf of Mexico
non-blacknose small coastal sharks, blue
sharks, smoothhound sharks, and
pelagic sharks other than porbeagle or
blue sharks.
The boundary between the Gulf of
Mexico region and the Atlantic region is
defined at § 635.27(b)(1) as a line
beginning on the East Coast of Florida
at the mainland at 25°20.4′ N lat,
proceeding due east. Any water and
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]]>Agencies
[Federal Register Volume 83, Number 228 (Tuesday, November 27, 2018)]
[Rules and Regulations]
[Pages 60773-60776]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25326]
=======================================================================
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 76
[MB Docket Nos. 17-105, 02-144; MM Docket Nos. 92-266, 93-215; CS
Docket Nos. 94-28, 96-157; FCC 18-148]
Modernization of Media Regulation Initiative: Revisions to Cable
Television Rate Regulations
AGENCY: Federal Communications Commission
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) eliminate or revise expired and outdated cable rate
regulation rules and close a related dormant docket.
DATES: Effective date: December 27, 2018.
FOR FURTHER INFORMATION CONTACT: For additional information on this
proceeding, contact Katie Costello,
[[Page 60774]]
[email protected], of the Media Bureau, (202) 418-2233.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order, FCC 18-148, adopted and released on October 23, 2018. The
full text of these documents 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 these
documents in accessible formats (computer diskettes, large print, audio
recording, and Braille), send an email to [email protected] or call the
Commission's Consumer and Governmental Affairs Bureau at (202) 418-0530
(voice), (202) 418-0432 (TTY).
Synopsis
In the Report and Order, we eliminate and revise rules that have
become obsolete due to the sunset of rate regulation for cable
programming service tiers, are unnecessary given changes in industry
practices, or have become obsolete due to changes in Commission policy.
For the reasons stated below, we find good cause to modify Sec.
76.923(i) without notice and comment because the modification in
question merely codifies an existing uncodified rule. We also eliminate
the hard copies of Forms 328 and 329 located at the end of Sec. 76.985
of our rules. We are not changing the text of Sec. 76.985 by deleting
these hard copies, and they are unnecessary because Form 329 is no
longer in use and Form 328 is available electronically. Finally, we
eliminate Sec. Sec. 76.986, 76.987, 76.922(g)(7) and 76.922(n) of the
rules and close proceedings related to uniform regional rate
structures, which are moot due to the sunset of cable programming
service tier (CPST) regulation.
A la Carte Packages and New Product Tiers. We eliminate Sec. Sec.
76.986 and 76.987 because they are vestiges of CPST regulation. These
rule sections address ``a la carte'' packages and ``new product
tiers,'' both of which are types of CPSTs. Therefore, because of the
sunset of CPST regulation we remove these two sections from our rules.
Equipment Leasing. We modify Sec. 76.923(i) to codify our
previously adopted uncodified rule that, where an operator offers its
equipment for sale as well as for lease, the sales price is
unregulated. The lease price offers the safety of a cost-based
regulated rate to subscribers and the operator's sales price for the
same equipment is regulated by the market.
Single Tier Small System Headend Upgrades. We remove Sec.
76.922(g)(7) to reflect the sunset of the opportunity for single tier
small systems to make headend upgrade adjustments. The time period for
taking this rate increase, January 1, 1995 to December 31, 1997, has
expired, and we see no continued need for this rule section.
Uniform Regional Rate Structures. The Notice of Proposed Rulemaking
in the Cable Pricing Flexibility Order, 61 FR 45387, and our
interpretation in the Uniform Rate Order, 62 FR 15121, of Sec.
76.922(n) of our rules are both moot due to the deregulation of the
CPST. In the Cable Pricing Flexibility Order, we proposed exceptions to
the CPST rate rules to allow operators to reduce BST prices and offset
those reductions with increased CPST rates. Section 76.922(n) permits
similar offsets for CPST rates in order to permit cable operators to
establish uniform rates across multiple franchise areas. Now that CPST
rates are no longer regulated, an operator may increase CPST rates
without Commission approval so the exceptions to the CPST rate rules
are no longer needed. Accordingly, we terminate CS Docket No. 96-157
and remove Sec. 76.922(n) from our rules.
Forms 328 and 329. Two hard copy FCC forms are located at the end
of Sec. 76.985 of our rules in the Code of Federal Regulations. Form
329 is an obsolete CPST complaint form. Form 328 is now available
electronically. We delete these hard copy forms, including
instructions, from Sec. 76.985 and modify Sec. 76.910 to direct
interested parties to the electronic Form 328 and instructions.
Paperwork Reduction Act.--The Report and Order eliminates, and thus
does not contain new or revised, information collection requirements
subject to the Paperwork Reduction Act of 1995, Public Law 104-13 (44
U.S.C. 3501-3520). In addition, therefore, it does not contain any new
or modified ``information burden for small business concerns with fewer
than 25 employees'' pursuant to the Small Business Paperwork Relief Act
of 2002, Public Law 107-198, 44 U.S.C. 3506(c)(4).
Final Regulatory Flexibility Analysis. As required by the
Regulatory Flexibility Act of 1980, as amended (``RFA''), an Initial
Regulatory Flexibility Analysis (``IRFA'') was incorporated in the
Notice of Proposed Rulemaking and Order, Revisions to Cable Television
Rate Regulations (``NPRM''). The Commission sought written public
comment on the proposals in the NPRM, including comment on the IRFA. No
comments on the IRFA were received. This present Final Regulatory
Flexibility Analysis (``FRFA'') conforms to the RFA.
Need for, and Objectives of, the Revised Rules. In the past, the
Commission developed rules and forms for the regulation of cable
television rates when both the basic service tier (``BST'') and the
cable programming service tiers (``CPST'') were subject to rate
regulation. In this Report and Order, the Commission updates some of
these regulations. Updating is needed so that the rules and rate forms
will reflect the March 1999 sunset of cable programming services tier
(``CPST'') rate regulation pursuant to the Telecommunications Act of
1996. Finally, updating is required to address issues which have arisen
over time. This Report and Order makes changes to remove rule sections
that are obsolete due to the sunset of upper tier regulation. For cable
systems in general, including small cable systems, in this Report and
Order the Commission deletes or modifies rules relating solely to CPST
regulation and modifies a rule to codify existing policy. All of these
changes have the effect of eliminating or reducing regulatory burdens.
Legal Basis. The authority for this action is contained in sections
1, 2(a), 3, 4(i), 4(j), 303(r), 601(3), 602, and 623 of the
Communications Act of 1934, as amended, 47 U.S.C. 151, 152(a), 153,
154(i), 154(j), 303(r), 521, 522, and 543.
Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply. The RFA directs agencies to provide a
description of, and where feasible, an estimate of the number of small
entities that may be affected by the modified rules. The RFA generally
defines the term ``small entity'' as having the same meaning as the
terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' In addition, the term ``small business''
has the same meaning as the term ``small business concern'' under the
Small Business Act. A ``small business concern'' is one which: (1) Is
independently owned and operated; (2) is not dominant in its field of
operation; and (3) satisfies any additional criteria established by the
SBA.
The SBA has developed a small business size standard for Cable and
Other Program Distribution, which consists of all such firms having
$12.5 million or less in annual receipts. This category includes, among
others, cable
[[Page 60775]]
operators, closed circuit television services, direct broadcast
satellite services, multipoint distribution services, open video
systems, satellite master antenna television systems, and subscription
television services. According to Census Bureau data for 1997, in this
category, there was a total of 1,311 firms that operated for the entire
year, of which 1180 have less than $10 million in revenue and an
additional 52 firms had revenue of $10 million or more but less than
$25 million. Thus, under this size standard, the majority of firms can
be considered small. In this category, only cable system operators are
affected by this Report and Order and we address them below to provide
a more precise estimate of the affected small entities.
Cable Systems. The Commission has developed its own small business
size standard for a small cable operator for the purposes of rate
regulation. Under the Commission's rules, a ``small cable company'' is
one serving fewer than 400,000 subscribers nationwide. Based on our
most recent information, we estimate that there were 1,439 cable
operators that qualified as small cable companies at the end of 1995.
Since then, some of those companies may have grown to serve over
400,000 subscribers, and others may have been involved in transactions
that caused them to be combined with other cable operators.
Consequently, we estimate that there are fewer than 1,439 small cable
companies that may be affected by the proposed rules. A ``small
system'' under the Commission's rules, is one serving ``15,000 or fewer
subscribers. The service area of a small system shall be determined by
the number of subscribers that are served by the system's principal
headend, including any other headends or microwave receive sites that
are technically integrated to the principal headend.'' The
Communications Act of 1934, as amended, also contains a size standard
for a ``small cable operator,'' which is ``a cable operator that,
directly or through an affiliate, serves in the aggregate fewer than
one percent of all subscribers in the United States and is not
affiliated with any entity or entities whose gross annual revenues in
the aggregate exceed $250,000,000.'' The Commission has determined that
there are 67,700,000 cable 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 of its affiliates, do not exceed $250 million in
the aggregate. Based on this available data, we estimate that the
number of cable operators serving 677,000 subscribers or less totals
approximately 1,450. We do not request or collect information on
whether cable operators are affiliated with entities whose gross annual
revenues exceed $250,000,000, and therefore are unable to estimate
accurately the number of cable system operators that would qualify as
small cable operators under the definition in the Communications Act.
Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements for Small Entities. No increase in the
regulatory burden on small systems or small governmental entities is
expected to result from this proceeding.
Steps Taken to Minimize Significant Impact on Small Entities and
Significant Alternatives Considered. The RFA requires an agency to
describe any significant, specifically small business, alternatives
that it has considered in reaching its approach, which may include the
following four alternatives (among others): ``(1) The establishment of
differing compliance or reporting requirements or timetables that take
into account the resources available to small entities; (2) the
clarification, consolidation, or simplification of compliance and
reporting requirements under the rule for such small entities; (3) the
use of performance rather than design standards; and (4) an exemption
from coverage of the rule, or any part thereof, for such small
entities.'' In general, this item does not impose any new regulatory
burdens on large or small entities. Rather, it serves to streamline and
update rules, thereby relieving burdens in general. Although the
Commission requested comment on any changes in the rate rules that
might address continuing difficulties faced by operators of small
systems, such as the problems associated with the simultaneous growth
in competition and the need for additional investment to upgrade
facilities, no comments were received. The changes do not increase the
regulatory burden small systems face as a result of rate regulation and
may lessen it by reducing the amount of information required to be
reported.
Federal Rules Which Duplicate, Overlap, or Conflict with the
Commission's Rules. None.
For the reasons stated above, IT IS ORDERED that, pursuant to the
authority found in sections 1, 2(a), 3, 4(i), 4(j), 303(r), 601(3),
602, and 623 of the Communications Act of 1934, as amended, 47 U.S.C.
151, 152(a), 153, 154(i), 154(j), 303(r), 521, 522, 543, this Report
and Order IS ADOPTED. IT IS FURTHER ORDERED that, pursuant to the
authority found in sections 1, 2(a), 3, 4(i), 4(j), 303(r), 601(3),
602, and 623 of the Communications Act of 1934, as amended, 47 U.S.C.
151, 152(a), 153, 154(i), 154(j), 303(r), 521, 522, 543, the
Commission's rules ARE AMENDED as set forth below. IT IS FURTHER
ORDERED that CS Docket No. 96-157 IS TERMINATED. 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. 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 Government
Accountability Office pursuant to the Congressional Review Act, see 5
U.S.C. 801(a)(1)(A).
List of Subjects in 47 CFR Part 76
Cable television, Reporting and recordkeeping requirements.
Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer, Office of the Secretary.
Final Rules
For the reasons set forth in the preamble, the Federal
Communications Commission amends 47 CFR part 76 as follows:
PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE
0
1. The authority citation for part 76 continues to read as follows:
Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 302a, 303,
303a, 307, 308, 309, 312, 315, 317, 325, 339, 340, 341, 503, 521,
522, 531, 532, 534, 535, 536, 537, 543, 544, 544a, 545, 548, 549,
552, 554, 556, 558, 560, 561, 571, 572, 573.
0
2. Amend Sec. 76.901 by removing paragraph (d), redesignating
paragraphs (e) and (f) as paragraphs (d) and (e), and revising the
newly designated paragraph (e) to read as follows:
Sec. 76.901 Definitions.
* * * * *
(e) Small cable operator. A small cable operator is an 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. For purposes of this definition, an
operator shall be deemed affiliated with another entity if that entity
holds a 20 percent
[[Page 60776]]
or greater equity interest (not including truly passive investment) in
the operator or exercises de jure or de facto control over the
operator.
(1) Using the most reliable sources publicly available, the
Commission periodically will determine and give public notice of the
subscriber count that will serve as the 1 percent threshold until a new
number is calculated.
(2) For a discussion of passive interests with respect to small
cable operators, see Implementation of Cable Act Reform Provisions of
the Telecommunications Act of 1996, Report and Order in CS Docket No.
96-85, FCC 99-57 (released March 29, 1999).
(3) If two or more entities unaffiliated with each other each hold
an equity interest in the small cable operator, the equity interests of
the unaffiliated entities will not be aggregated with each other for
the purpose of determining whether an entity meets or passes the 20
percent affiliation threshold.
0
3. Amend Sec. 76.910 by revising the first sentence and adding a
second sentence to paragraph (c) to read as follows:
Sec. 76.910 Franchising authority certification.
* * * * *
(c) The written certification described in paragraph (b) of this
section shall be made by completing and filing FCC Form 328. FCC Form
328 can be obtained from the internet at https://www.fcc.gov/Forms/Form328/328.pdf or by calling the FCC Forms Distribution Center at 1-
800-418-3676. * * *
* * * * *
Sec. 76.922 [Amended]
0
4. Amend Sec. 76.922 by removing and reserving paragraph (g)(7) and
removing paragraph (n).
0
5. Amend Sec. 76.923 by adding a final sentence to paragraph (i) to
read as follows:
Sec. 76.923 Rates for equipment and installation used to receive the
basic service tier.
* * * * *
(i) * * * Equipment sales by an operator will be unregulated where
the operator offers subscribers the same equipment under regulated
leased rates.
* * * * *
Sec. 76.985 [Amended]
0
6. Amend Sec. 76.985(c) by removing forms entitled ``FCC329'',
``INSTRUCTIONS FOR FCC 328'' and ``FCC328''.
Sec. Sec. 76.986 and 76.987 [Removed]
0
7. Remove Sec. Sec. 76.986 and 76.987.
[FR Doc. 2018-25326 Filed 11-26-18; 8:45 am]
BILLING CODE 6712-01-P
