Form 325 Data Collection; Modernization of Media Regulation Initiative, 61330-61335 [2018-25323]
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Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Rules and Regulations
States Court of Appeals for the
appropriate circuit by January 28, 2019.
Filing a petition for reconsideration by
the Administrator of this final rule does
not affect the finality of this action for
the purposes of judicial review nor does
it extend the time within which a
petition for judicial review may be filed,
and shall not postpone the effectiveness
of such rule or action. This action may
not be challenged later in proceedings to
enforce its requirements. (See section
307(b)(2)).
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, 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 13, 2018.
Peter D. Lopez,
Regional Administrator, Region 2.
For the reasons set forth in the
preamble, the Environmental Protection
Agency amends part 52 of chapter I, title
40 of the Code of Federal Regulations as
follows:
PART 52—APPROVAL AND
PROMULGATION OF
IMPLEMENTATION PLANS
[FR Doc. 2018–25888 Filed 11–28–18; 8:45 am]
1. The authority citation for part 52
continues to read as follows:
BILLING CODE 6560–50–P
■
Authority: 42 U.S.C. 7401 et seq.
FEDERAL COMMUNICATIONS
COMMISSION
Subpart BBB—Puerto Rico
2. Section 52.2730 is amended by
revising paragraphs (a)(1), (b)(1), and
(c)(1) to read as follows:
■
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§ 52.2730 Section 110(a)(2) infrastructure
requirements.
(a) 1997 8-hour ozone and the 1997
PM2.5 NAAQS—(1) Approval. Submittal
from Puerto Rico dated November 29,
2006 and supplemented February 1,
2016, to address the CAA infrastructure
requirements for the 1997 ozone and the
1997 PM2.5 NAAQS. This submittal
satisfies the 1997 ozone and the 1997
PM2.5 NAAQS requirements of the Clean
Air Act (CAA) 110(a)(2)(A), (B), (C)
(with the exception of program
requirements for PSD), (D)(i)(I), (D)(i)(II)
and (ii) (with the exception of program
requirements related to PSD), (E), (F),
(G), (H), (J) (with the exception of
program requirements related to PSD),
(K), (L), and (M).
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(b) 2008 ozone and the 2006 PM2.5
NAAQS—(1) Approval. Submittal from
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Puerto Rico dated January 22, 2013,
supplemented February 1, 2016 to
address the CAA infrastructure
requirements for the 2008 ozone
NAAQS and supplemented April 16,
2015 and February 1, 2016 to address
the CAA infrastructure requirements for
the 2006 PM2.5 NAAQS. This submittal
satisfies the 2008 ozone and the 2006
PM2.5 NAAQS requirements of the Clean
Air Act (CAA) 110(a)(2)(A), (B), (C)
(with the exception of program
requirements for PSD), (D)(i)(I), (D)(i)(II)
and (ii) (with the exception of program
requirements related to PSD), (E), (F),
(G), (H), (J) (with the exception of
program requirements related to PSD),
(K), (L), and (M).
*
*
*
*
*
(c) 2008 lead NAAQS—(1) Approval.
Submittal from Puerto Rico dated
January 31, 2013 and supplemented
February 1, 2016, to address the CAA
infrastructure requirements for the 2008
lead NAAQS. This submittal satisfies
the 2008 lead NAAQS requirements of
the Clean Air Act (CAA) 110(a)(2)(A),
(B), (C) (with the exception of program
requirements for PSD), (D)(i)(I), (D)(i)(II)
and (ii) (with the exception of program
requirements related to PSD), (E), (F),
(G), (H), (J) (with the exception of
program requirements related to PSD),
(K), (L), and (M).
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Jkt 247001
will advance the Commission’s goal of
reducing outdated regulations and
unnecessary regulatory burdens that can
impede competition and innovation in
media markets.
DATES: Effective November 29, 2018.
ADDRESSES: Federal Communications
Commission, 445 12th Street SW, Room
TW–C305, Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT:
Jamile Kadre, Jamile.Kadre@fcc.gov, or
202–418–2245.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Report
and Order, FCC 18–136, in MB Docket
No. 17–290, adopted on September 26,
2018, and released on September 26,
2018. The complete text of this
document is available electronically via
the search function on the FCC’s
Electronic Document Management
System (EDOCS) web page at https://
apps.fcc.gov/edocs_public/ (https://
apps.fcc.gov/edocs_public/). The
complete document is available for
inspection and copying in the FCC
Reference Information Center, 445 12th
Street SW, Room CY–A257,
Washington, DC 20554 (for hours of
operation, see https://www.fcc.gov/
general/fcc-reference-informationcenter). To request materials in
accessible formats for people with
disabilities (Braille, large print,
electronic files, audio format), send an
email to fcc504@fcc.gov (mail to:
fcc504@fcc.gov) or call the FCC’s
Consumer and Governmental Affairs
Bureau at (202) 418–0530 (voice), (202)
418–0432 (TTY).
Synopsis
47 CFR Parts 0, 1, and 76
I. Introduction
[MB Docket No. 17–290, FCC 18–136]
1. With this Report and Order, we
take another important step in our
efforts to modernize our media
regulations by eliminating the annual
FCC Form 325 filing requirement for
cable television systems. In November,
the Commission issued a Notice of
Proposed Rulemaking (NPRM)
proposing to streamline or eliminate
Form 325, Annual Report of Cable
Television Systems, which collects
operational information from cable
television systems nationwide. The
majority of commenters support
eliminating Form 325. We conclude that
eliminating Form 325 will advance the
Commission’s goal of reducing outdated
rules and unnecessary regulatory
burdens that can impede competition
and innovation in the media
marketplace. On balance, we find that
the utility of the form is limited and
ultimately outweighed by the burden
placed on cable operators to file, and on
Form 325 Data Collection;
Modernization of Media Regulation
Initiative
Federal Communications
Commission
ACTION: Final rule.
AGENCY:
In this document, the Federal
Communications Commission
eliminates the annual FCC Form 325
filing requirement for cable television
systems as part of its Modernization of
Media Regulation Initiative. As set forth
below, the Commission finds that
marketplace, operational, and
technological changes have overtaken
the utility of FCC Form 325, rendering
it increasingly obsolete, and that much
of the information collected by the form
can be obtained from alternative
sources. Thus, the Commission
concludes that eliminating Form 325
SUMMARY:
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the Commission to process, this
outmoded form.
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II. Background
2. Form 325 collects operational
information from various cable
television systems nationwide,
including data about subscriber
numbers, equipment information, plant
information, frequency and signal
distribution information, and
programming information. The form is
required to be filed annually by: (1) All
cable systems with 20,000 or more
subscribers (which account for the vast
majority of cable subscribers); and (2) a
random sampling of smaller cable
systems with fewer than 20,000
subscribers. Each December, the
Commission sends a notification to each
operator required to file Form 325 and
instructs the operator to file the form
electronically via the FCC’s Cable
Operations and Licensing System
(COALS) within 60 days from the date
of the letter.
3. In the NPRM, the Commission
sought comment on whether to
eliminate Form 325 or, in the
alternative, improve and streamline the
form. The Commission solicited input
on ‘‘the continued utility of collecting
Form 325 data’’ in light of the
substantial changes in the multichannel
video programming distributor (MVPD)
marketplace and in the operations of
cable television systems since the
Commission last examined the Form
325 data collection in 1999, on the costs
associated with completing Form 325,
on alternative sources for the
information collected by the form, and
on whether the benefits of the
information collected outweighed those
costs. The Commission also sought
comment on ways to improve the Form
325 data collection, if it were retained.
III. Discussion
5. With this Report and Order, we
eliminate the Form 325 filing
requirement for cable television
systems. As the Commission noted in
the NPRM, Form 325 was first
developed over 50 years ago and the last
significant modification of the form was
nearly 20 years ago. We find that
marketplace, operational, and
technological changes have overtaken
Form 325 and rendered it increasingly
obsolete, as reflected by the
Commission’s limited use of Form 325
data. Moreover, much of the information
collected by the form can be obtained
from alternative sources without the
burden imposed on cable operators and
the Commission by the Form 325 filing
requirement. Therefore, we eliminate
the requirement set forth in 47 CFR
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76.403 of our rules that the operator of
every cable television system serving
20,000 or more subscribers and a
sampling of operators with systems
serving fewer than 20,000 subscribers
file Form 325 with the Commission.
Diminished Utility of Form 325
6. In light of substantial changes that
have taken place in the MVPD
marketplace and in the way that cable
systems operate, we find that the
information collected by Form 325 is far
less relevant today than it was when the
Commission last considered, and
elected to retain, the form in 1999. As
NCTA states, Form 325, with its
questions about analog operations and
system-based organization, does not
reflect the technical realities of presentday cable service where ‘‘individual
systems are no longer representative of
today’s cable network structure due to
the use of fiber interconnects and the
elimination of numerous standalone
headends.’’ Importantly, the last time
the Commission voted to retain Form
325 in 1999, the cable industry was less
than a decade removed from the passage
of the Telecommunications Act of 1996
(1996 Act) and the Cable Television
Consumer Protection and Competition
Act of 1992 (1992 Cable Act)—a time
during which the Commission had
recently implemented, or was still in the
process of implementing, the regulatory
mandates of those statutes. It was a time
when the MVPD industry—and the
prominence of cable operators as video
providers—looked very different than it
does today. Cable operators at the time
accounted for approximately 82 percent
of total MVPD subscribers (as compared
to roughly 55 percent today) and today’s
online video streaming services did not
yet exist. Accordingly, the Commission
noted at the time that Form 325 could
be useful for monitoring forthcoming
changes in the cable industry, including
the introduction of digital cable
services. Similarly, the Commission
believed that the form could prove
useful in collecting information
regarding the transition from analog to
digital television broadcast signals.
Now, the 1996 Act and the 1992 Cable
Act are more than 20 years behind us.
The digital television transition for fullpower broadcast stations occurred over
nine years ago and the transition from
analog to digital cable service is now
almost universal. According to one
recent estimate, approximately 97
percent of cable subscribers currently
have digital cable service. Therefore, it
is clear that many of the expected
changes to the cable industry that Form
325 was designed to monitor have
already taken place.
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7. While we acknowledge that Form
325 may have been useful at one time,
and that the data collected by the form
have been used by the Commission on
various occasions through the years, we
find that it has become progressively
less useful to, and less used by, the
Commission over time and has now
reached a point where its limited
usefulness can no longer justify its
retention. When the Commission
elected not to eliminate the form nearly
20 years ago, it envisioned various uses
for which the data collected by Form
325 might be useful to the Commission
in the future. Today, however, there is
little evidence that the information
collected by Form 325 continues to be
essential for the purposes it once served
or could have served. For instance, the
Commission found in 1999 that cable
modem and set-top box data collected
by Form 325 could be useful for
‘‘assess[ing] technical capabilities of
cable systems and the future of the
industry’’ and that information on
channel lineups could be used to
‘‘determine the impact of our must-carry
and retransmission consent’’ rules.
Similarly, Public Knowledge contends
that Form 325 provides information
useful to the Commission in fulfilling its
obligations under Section 629 to
promote the competitive availability of
navigation devices. However, recent
Commission rulemakings related to
Section 629 and retransmission consent
relied on third-party sources of data
rather than Form 325 to inform their
analysis.
8. Indeed, recent instances where the
Commission has cited Form 325 data in
rulemaking proceedings are extremely
limited, and in those instances where it
has been cited, it is not clear that the
data cited was critical to any major
decision or that it was available
exclusively via Form 325. For instance,
in the most recent example, the
Commission cited Form 325 data in a
single footnote of an order to estimate
the number of low power television
(LPTV) and Class A stations carried on
cable systems pursuant to mandatory
carriage—data which would continue to
be available in public inspection files—
and one party in that proceeding
directly questioned the accuracy of the
Commission’s estimate. In another
example, the Commission used
information collected via Form 325
about the number of deployed set-top
boxes to affirm a conclusion that
applying IP closed captioning rules only
to devices with built-in screens would
exclude a common means by which
consumers view programming. Beyond
these examples, the Commission has
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also, on occasion, used Form 325 data
to determine how many subscribers
could potentially be affected when
providing regulatory relief to systems
and operators or to craft exemptions on
the basis of number of subscribers
served. All of this, however, amounts to
just a handful of fairly minor uses over
the past six-plus years in instances
where such data could otherwise have
been obtained from information requests
or other inquiries.
9. In addition, although the
Commission has been statutorily
required to produce an annual report to
Congress on ‘‘the status of competition
in the market for the delivery of video
programming,’’ rather than use the data
from Form 325, the Commission has
routinely opened a dedicated
proceeding and issued a Public Notice
to solicit information to compile the
report. As Verizon notes, the two most
recent annual video competition reports
did not cite to Form 325 at all, relying
instead on third-party sources for such
statistics as subscribers to cable services
and the number of homes passed.
Indeed, when the Commission sought to
rely on the Form 325 data for more
substantial use in its 13th Video
Competition Report, it concluded that
the data were inadequate for assessing
whether the homes passed and
subscriber thresholds had been met
under the section 612(g) ‘‘70/70 test’’—
pursuant to which the Commission has
authority to promulgate any additional
rules necessary to provide diversity of
information sources ‘‘at such time as
cable systems with 36 or more activated
channels are available to 70 percent of
households within the United States
and are subscribed to by 70 percent of
the households to which such systems
are available.’’ Instead, the Commission
concluded that an industrywide
information collection would be
necessary to compile the requisite data.
Even for the more discrete use of Form
325 data in the 14th Video Competition
Report—to show the percentage of
households passed by incumbent cable
systems that subscribe to these systems
as well as the number of very small
cable systems surveyed that offer
neither internet access nor telephone
services—the report itself noted that
data from SNL Kagan could provide
similar information. Additionally,
although the Media Bureau’s annual
report on cable prices references Form
325 in a note to a table in the appendix,
Bureau staff today relies primarily on
other sources to compile the data
presented in the table. Moreover, there
is minimal public demand for the data
presently available; only a single party
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annually files a Freedom of Information
Act request for Form 325 data and no
commenters claim to currently use or
recently have used Form 325 data.
10. In addition to being little used
today, we note that the Form 325 data
are subject to certain inherent
constraints that render them less than
ideal and limit the purposes for which
they can be used, such as the fact that
Form 325 data do not correspond to
common geographic units such as
census blocks, counties, or DMAs and
the Commission ‘‘has no reliable
method for converting the geographic
area of a cable system to such units. As
noted above, Form 325 data have not
been collected universally across the
entire cable industry since the 1990s,
and Form 325 is not filed by many of
the smallest cable systems, a fact that
may render it somewhat less useful for
purposes of assessing the latter segment
of the cable industry in particular. For
example, in determining the carriage of
in-state broadcast stations on cable
systems for congressionally mandated
reports pursuant to the Satellite
Television Extension and Localism Act
of 2010 (STELA) and the STELA
Reauthorization Act of 2014 (STELAR),
the Commission noted that many rural
counties of interest for purposes of the
required reports may be served by cable
systems not subject to the Form 325
filing requirement. Given the
diminishing relevance of, and
alternative sources for, the Form 325
data, any attempt to expand the data
collection among the smallest cable
systems in order to make the collection
more comprehensive would likely entail
significant burdens for those systems
least able to bear them in exchange for
little, if any, offsetting benefit.
Moreover, in addition to not being filed
by many of the smallest cable systems,
Form 325 is not filed by non-cable video
providers either (e.g., DBS operators),
further limiting its ability to shed light
on the overall video marketplace.
Alternative Sources for Information
Currently Collected by Form 325
11. As mentioned above, the
Commission has increasingly been
turning to public and third-party
sources of data to help guide its
policymaking. In this regard, we note
that information on subscribers,
equipment, physical plant, frequency
and signal distribution, or programming,
such as that currently collected via
Form 325, is available through
alternative sources. For instance,
although Public Knowledge asserts that
the data collected via Form 325 provide
valuable information on the broadband
industry, the Commission noted in the
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NPRM that the cable modem and
telephony subscriber data collected by
Form 325 are similar, and likely
inferior, to data collected via Form
477—the Commission’s primary vehicle
for collecting information about the
broadband industry. In addition to Form
477, other sources of cable industry data
include: Information collected via FCC
Forms 320, 322, 324, 327, and 333;
information provided pursuant to
section 76.1205 and section 76.1709;
other governmental filings, such as
Securities and Exchange Commission
(SEC) filings and Copyright Office
Statements of Account; information
released by industry groups such as
ACA and NCTA; and information
available through commercial sources
such as SNL Kagan and S&P Global
Market Intelligence (S&P Global), BIA/
Kelsey (BIA Advisory Services), The
Nielsen Company, and Television and
Cable Factbook (Warren
Communications). In particular, as
noted in the NPRM, channel lineup
information, such as that collected by
Form 325, is widely available from
public sources that include cable
operator websites and third-party guide
services. Additionally, information
related to the carriage of leased access
programming, the availability of which
was once a concern underpinning the
collection of channel lineup
information, is now available through at
least one commercial source, and the
Commission also provides information
on the average number of leased access
channels in its Cable Price Survey
Report. We believe that these other
sources available to the Commission
generally offer the accuracy, timeliness,
and ongoing availability that the
Commission once looked to Form 325 to
provide, as evidenced by the fact that
both the Commission and industry
stakeholders regularly rely upon such
sources, not Form 325, for various
purposes. Specifically, we find that
other sources besides Form 325 also
provide voluminous, standardized
information that can be used to conduct
year-over-year comparisons, as the
Commission routinely does.
12. Of course, even after eliminating
the Form 325 filing requirement, the
Commission retains the ability to obtain
data on an as-needed basis. For
example, the Commission regularly
seeks detailed market-by-market
information from applicants in
transactions involving MVPDs or
internet service providers regarding
homes passed, numbers of subscribers,
services provided, and competitors
faced, among other things. The
Commission often seeks similar
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information from third-party
competitors as well. This is ultimately
a more cost-effective and targeted
approach than trying to collect data
through an industrywide mechanism
such as Form 325. In addition, the
Commission also retains the ability to
collect information and data through
rulemakings, inquiries, and other
collections, which may yield more
current data than Form 325.
13. In short, we believe the
information available through all of
these alternative sources is sufficiently
reliable that we can confidently
eliminate Form 325. We therefore
disagree with Public Knowledge’s
assertions that information collected in
rulemakings and other proceedings
cannot be considered a sufficiently
reliable alternative to Form 325 data
because firms are not compelled to
disclose the information and are not
subject to a certification of accuracy.
First, we note that there is an
expectation that parties submitting
comments or data in Commission
proceedings will not provide false or
misleading information to the
Commission, and even if a party
provides information that arguably
could be seen as biased or one-sided in
some way, respondents in Commission
proceedings have an opportunity to set
the record straight by highlighting such
bias for the Commission or submitting
their own contrary analyses. Moreover,
we note that making false statements to
the United States government is
punishable by law; therefore, many of
the other federal filings mentioned
above likely would be at least as reliable
and accurate as Form 325 filings, and
thus could serve a cross-check function
similar to that which Public Knowledge
asserts Form 325 data fulfill.
14. In addition, we find that other
publicly available sources, including
those mentioned above, are likely to be
more useful than the information
collected by Form 325 in keeping the
public informed about the cable
industry. Such sources generally present
a more up-to-date picture of the
industry than Form 325 data, which are
currently withheld from the public for
three years due to competitive concerns.
Furthermore, we note that no
commenters in this proceeding state that
they are currently using, or have
recently used, the Form 325 data for any
purpose, which is not surprising given
the datedness of the information and the
abundance of other sources available.
Lastly, although Public Knowledge
correctly notes that proprietary
information from commercial sources
can be expensive and subject to
restrictive licensing terms, the
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Commission analyzes such sources in
producing video competition reports
and other documents available to the
public, and many alternatives to Form
325 data are available to and have been
used by commenters in Commission
proceedings.
15. While we agree with Public
Knowledge that the Commission has a
responsibility—and Congress and the
public have an interest—in remaining
informed about the nature and evolution
of the cable industry, we find today that
Form 325 does not remain necessary to
fulfilling that responsibility.
Burdens Imposed by Form 325 Data
Collection
16. According to commenters, Form
325 is a significant burden to cable
operators. ACA, NCTA, and Verizon
report substantial time spent on these
forms, in excess of Commission
estimates. According to NCTA, even if
the Commission’s two-hour estimate for
completion of a Form 325 reflected
operators’ experience, larger operators
‘‘would still need to devote 10 weeks’
worth of employee time’’ to complete
the required forms. ACA points to
‘‘several reasons for this lengthy
timeframe,’’ including that the form
requires gathering of information that is
not used in the typical course of
business and collaboration among
employees who do not typically
interface. According to ACA, such a
burden is particularly challenging for
smaller operators with fewer resources
at their disposal. NCTA also asserts that,
‘‘[d]epending on internal workload and
resources, some operators must hire
contract workers to input data.’’ In
addition, both NCTA and ACA point to
the need for operators to retain outside
counsel ‘‘to ensure that sensitive Form
325 data is provided confidential
treatment.’’ While commenters did not
provide estimates of the monetary costs
associated with completing and filing
Form 325, the limited utility of the data
collected therein cannot justify the
number of hours expended by operators
with limited resources in completing
Form 325. Further, even the
Commission’s lower estimate of two
hours to complete a Form 325 for each
PSID represents a burden that likely
outweighs the limited usefulness of
Form 325 data today. Finally, we note
that the Form 325 data collection also
places significant burdens on
Commission staff to collect, compile,
and maintain the data.
17. In the NPRM, the Commission
sought comment on ways to improve
Form 325, if it were retained. In
response, Public Knowledge suggests
that rather than eliminate Form 325, the
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61333
Commission should improve it and
make better use of the data collected.
However, we find that any attempt to
overhaul Form 325 to make it more upto-date and useful would be substantial
and would likely result in creating a
form that would duplicate other
similarly up-to-date and useful sources
that already exist. At the same time, we
note that our action today does not
obviate the need or legal obligation to
file other data with the Commission, nor
does it preclude future collection of
relevant cable system information by the
Office of Economics and Analytics once
it is up and running.
18. In sum, we find that the Form 325
is outdated and imposes significant
burdens on both cable operators and
Commission staff. Because this filing
requirement no longer provides
sufficient offsetting benefits to justify its
retention, we find that its elimination is
in the public interest.
IV. Procedural Matters
19. Paperwork Reduction Analysis.
This document eliminates, and thus
does not contain new or revised,
information collection requirements
subject to the Paperwork Reduction Act
of 1995 (PRA), Public Law 104–13, 44
U.S.C. 3501–3520. In addition,
therefore, it does not contain any new
or modified ‘‘information burden for
small business concerns with fewer than
25 employees’’ pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, 44 U.S.C.
3506(c)(4).
Final Regulatory Flexibility Analysis
20. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA), an Initial Regulatory Flexibility
Analysis (IRFA) was incorporated in the
NPRM in MB Docket 17–290. The
Commission sought written public
comments on proposals in the NPRM,
including comment on the IRFA. The
Commission received no direct
comments on the IRFA, although some
commenters discussed the effect of the
proposals on smaller entities, as
discussed below. The present Final
Regulatory Flexibility Analysis (FRFA)
conforms to the RFA.
Need for, and Objectives of, the Report
and Order
21. The Report and Order arises from
a Public Notice issued by the
Commission in May 2017, launching an
initiative to modernize the
Commission’s media regulations. The
Report and Order finds that
marketplace, operational, and
technological changes have overtaken
Form 325 and rendered it increasingly
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obsolete, as reflected by the
Commission’s limited use of Form 325
data and reliance on alternative sources
of data that offer the accuracy,
timeliness, and ongoing availability that
the Commission once looked to Form
325 to provide. In addition, the Report
and Order finds that efforts to make
Form 325 more up-to-date and useful
would be substantial and would likely
result in creating a form that would
duplicate other similarly up-to-date and
useful sources that already exist. The
Report and Order concludes that the
Form 325 data collection represents a
significant burden on cable operators, as
well as on Commission staff, and that
this burden outweighs the limited
usefulness of Form 325 data.
Accordingly, the Report and Order
adopts the NPRM’s proposal to
eliminate Form 325. Specifically, the
Report and Order eliminates: (i) The
requirement that the operator of every
operational cable television system that
serves 20,000 or more file with the
Commission a Form 325 soliciting
general information and frequency and
signal distribution information on a
Physical System Identification Number
(‘‘PSID’’) basis; and (ii) the requirement
that Form 325 be filed by any cable
operator with less than 20,000
subscribers selected by random
sampling.
Summary of Significant Issues Raised by
Public Comments in Response to the
IRFA
22. No comments were filed in direct
response to the IRFA.
khammond on DSK30JT082PROD with RULES
Response to Comments by the Chief
Counsel for Advocacy of the Small
Business Administration
23. Pursuant to the Small Business
Jobs Act of 2010, which amended the
RFA, the Commission is required to
respond to any comments filed by the
Chief Counsel for Advocacy of the SBA
and to provide a detailed statement of
any change made to the proposed rules
as a result of those comments. The Chief
Counsel did not file any comments in
response to this proceeding.
Description and Estimate of the Number
of Small Entities to Which Rules Will
Apply
24. The RFA directs agencies to
provide a description of and, where
feasible, an estimate of the number of
small entities that will be affected by the
rules adopted. The RFA generally
defines the term ‘‘small entity’’ as
having the same meaning as the terms
‘‘small business,’’ ‘‘small organization,’’
and ‘‘small governmental jurisdiction.’’
In addition, the term ‘‘small business’’
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15:46 Nov 28, 2018
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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 final rules
adopted herein affect small television
and radio broadcast stations and small
entities that operate daily newspapers.
A description of these small entities, as
well as an estimate of the number of
such small entities, is provided below.
25. Cable Companies and Systems
(Rate Regulation). The Commission has
developed its own small business size
standards for the purpose of cable rate
regulation. Under the Commission’s
rules, a ‘‘small cable company’’ is one
serving 400,000 or fewer subscribers
nationwide. In addition, under the
Commission’s rate regulation rules, a
‘‘small system’’ is a cable system serving
15,000 or fewer subscribers. Industry
data indicate that there are currently
4,300 active cable systems in the United
States. Of this total, 3,550 cable systems
have fewer than 15,000 subscribers, and
750 systems have 15,000 or more
subscribers. Thus, we estimate that most
cable systems are small entities.
26. 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
million.’’ There are approximately
51,859,070 cable video subscribers in
the United States today. Accordingly, an
operator serving fewer than 518,590
subscribers shall be deemed a small
operator if its annual revenues, when
combined with the total annual
revenues of all its affiliates, do not
exceed $250 million in the aggregate.
Based on available data, we find that all
but six incumbent cable operators are
small entities under this size standard.
We note that the Commission neither
requests nor collects information on
whether cable system operators are
affiliated with entities whose gross
annual revenues exceed $250 million.
Although it seems certain that some of
these cable system operators are
affiliated with entities whose gross
annual revenues exceed $250 million,
we are unable at this time to estimate
with greater precision the number of
cable system operators that would
qualify as small cable operators under
PO 00000
Frm 00026
Fmt 4700
Sfmt 4700
the definition in the Communications
Act.
Description of Reporting,
Recordkeeping, and Other Compliance
Requirements for Small Entities
27. The Report and Order eliminates
the rule requiring cable system
operators to complete Form 325.
Accordingly, the Report and Order does
not impose any new reporting,
recordkeeping, or compliance
requirements for small entities. The
Report and Order thus will not impose
additional obligations or expenditure of
resources on small businesses.
Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
28. The RFA requires an agency to
describe any significant 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 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.
29. In this proceeding, the
Commission has three chief alternatives
available for Form 325—eliminate the
form, modernize and streamline it, or
retain it. The Commission finds that
marketplace, operational, and
technological changes have overtaken
Form 325 and rendered it increasingly
obsolete, as reflected by the
Commission’s limited use of Form 325
data and reliance on alternative sources
of data that offer the accuracy,
timeliness, and ongoing availability that
the Commission once looked to Form
325 to provide. The Commission finds
further that eliminating the form will
benefit small entities by reducing the
burden and costs of compliance. Thus,
the Report and Order eliminates the
obligation for cable systems to file Form
325. Eliminating this requirement is
intended to modernize the
Commission’s regulations and reduce
costs and recordkeeping burdens for
affected entities, including small
entities. According to commenters,
small entities spend as many as ten
hours completing Form 325. Under the
revised rules, affected entities no longer
will need to expend time and resources
collecting, maintaining, and organizing
the information requested in the form or
E:\FR\FM\29NOR1.SGM
29NOR1
Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Rules and Regulations
completing the form. Therefore,
removing this information collection
requirement will help small entities in
particular to cut unnecessary costs
related to gathering the information
requested in Form 325 and completing
the form. Thus, we anticipate that
affected small entities will benefit from
these revisions.
Report to Congress
30. 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.
Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rule
31. None.
V. Ordering Clauses
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32. Accordingly, it is ordered that,
pursuant to the authority found in
sections 1, 4(i), 4(j), and 303 of the
Communications Act of 1934, as
amended, 47 U.S.C. 151, 154(i), 154(j),
and 303, this Order is adopted.
33. It is further ordered that, pursuant
to the authority found in sections 1, 4(i),
4(j), and 303 of the Communications Act
of 1934, as amended, 47 U.S.C. 151,
154(i), 154(j), and 303, the
Commission’s rules ARE AMENDED as
set forth in Appendix A, effective as of
the date of publication of a summary in
the Federal Register.
34. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
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15:46 Nov 28, 2018
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Information Center, shall send a copy of
this Order, including the Final
Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the Small
Business Administration.
35. It is further ordered that, pursuant
to Section 801(a)(1)(A) of the
Congressional Review Act, 5 U.S.C.
801(a)(1)(A), the Commission shall send
a copy of the Order to Congress and to
the Government Accountability Office.
36. It is further ordered that, should
no petitions for reconsideration or
petitions for judicial review be timely
filed, MB Docket No. 17–290 shall be
terminated and its docket closed.
Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer, Office of the
Secretary.
Final Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR parts 0, 1,
and 76 of title 47 as follows:
PART 0—COMMISSION OPERATIONS
61335
Authority: 47 U.S.C. 151, 154(i), 155, 157,
160, 201, 225, 227, 303, 309, 332, 1403, 1404,
1451, 1452, and 1455, unless otherwise
noted.
4. Amend § 1.1703 by revising
paragraph (e) to read as follows:
■
§ 1.1703
Definitions.
*
*
*
*
*
(e) Filings. Any application,
notification, registration statement, or
report in plain text, or, when as
prescribed, on FCC Forms, 320, 321,
322, 324, or 327, whether filed in paper
form or electronically.
*
*
*
*
*
§ 1.1705
[Amended]
5. Amend § 1.1705 by removing and
reserving paragraph (a)(5) and by
removing ‘‘325,’’ from paragraph (b)
introductory text and from paragraph
(c)(1).
■
PART 76—MULTICHANNEL VIDEO
AND CABLE TELEVISION SERVICE
■
1. The authority citation for part 0
continues to read as follows:
■
Authority: Sec. 5, 48 Stat. 1068, as
amended; 47 U.S.C. 155, 225, unless
otherwise noted.
Authority: 47 U.S.C. 151, 152, 153, 154,
301, 302, 302a, 303, 303a, 307, 308, 309, 312,
315, 317, 325, 338, 339, 340, 341, 503, 521,
522, 531, 532, 534, 535, 536, 537, 543, 544,
544a, 545, 548, 549, 552, 554, 556, 558, 560,
561, 571, 572, 573.
§ 0.408
[Amended]
2. Amend § 0.408 in the table in
paragraph (b) by removing the entry for
‘‘3060–0061, FCC 325, 01/31/20’’.
■
PART 1—PRACTICE AND
PROCEDURE
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Frm 00027
Fmt 4700
Sfmt 9990
Subpart I—[Removed and Reserved]
7. Remove and reserve subpart I,
consisting of § 76.403.
■
3. The authority citation for part 1
continues to read as follows:
■
6. The authority citation for part 76
continues to read as follows:
[FR Doc. 2018–25323 Filed 11–28–18; 8:45 am]
BILLING CODE 6712–01–P
E:\FR\FM\29NOR1.SGM
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Agencies
[Federal Register Volume 83, Number 230 (Thursday, November 29, 2018)]
[Rules and Regulations]
[Pages 61330-61335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25323]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 0, 1, and 76
[MB Docket No. 17-290, FCC 18-136]
Form 325 Data Collection; Modernization of Media Regulation
Initiative
AGENCY: Federal Communications Commission
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
eliminates the annual FCC Form 325 filing requirement for cable
television systems as part of its Modernization of Media Regulation
Initiative. As set forth below, the Commission finds that marketplace,
operational, and technological changes have overtaken the utility of
FCC Form 325, rendering it increasingly obsolete, and that much of the
information collected by the form can be obtained from alternative
sources. Thus, the Commission concludes that eliminating Form 325 will
advance the Commission's goal of reducing outdated regulations and
unnecessary regulatory burdens that can impede competition and
innovation in media markets.
DATES: Effective November 29, 2018.
ADDRESSES: Federal Communications Commission, 445 12th Street SW, Room
TW-C305, Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT: Jamile Kadre, [email protected], or
202-418-2245.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order, FCC 18-136, in MB Docket No. 17-290, adopted on September
26, 2018, and released on September 26, 2018. The complete text of this
document is available electronically via the search function on the
FCC's Electronic Document Management System (EDOCS) web page at https://apps.fcc.gov/edocs_public/ (https://apps.fcc.gov/edocs_public/). The
complete document is available for inspection and copying in the FCC
Reference Information Center, 445 12th Street SW, Room CY-A257,
Washington, DC 20554 (for hours of operation, see https://www.fcc.gov/general/fcc-reference-information-center). To request materials in
accessible formats for people with disabilities (Braille, large print,
electronic files, audio format), send an email to [email protected] (mail
to: [email protected]) or call the FCC's Consumer and Governmental Affairs
Bureau at (202) 418-0530 (voice), (202) 418-0432 (TTY).
Synopsis
I. Introduction
1. With this Report and Order, we take another important step in
our efforts to modernize our media regulations by eliminating the
annual FCC Form 325 filing requirement for cable television systems. In
November, the Commission issued a Notice of Proposed Rulemaking (NPRM)
proposing to streamline or eliminate Form 325, Annual Report of Cable
Television Systems, which collects operational information from cable
television systems nationwide. The majority of commenters support
eliminating Form 325. We conclude that eliminating Form 325 will
advance the Commission's goal of reducing outdated rules and
unnecessary regulatory burdens that can impede competition and
innovation in the media marketplace. On balance, we find that the
utility of the form is limited and ultimately outweighed by the burden
placed on cable operators to file, and on
[[Page 61331]]
the Commission to process, this outmoded form.
II. Background
2. Form 325 collects operational information from various cable
television systems nationwide, including data about subscriber numbers,
equipment information, plant information, frequency and signal
distribution information, and programming information. The form is
required to be filed annually by: (1) All cable systems with 20,000 or
more subscribers (which account for the vast majority of cable
subscribers); and (2) a random sampling of smaller cable systems with
fewer than 20,000 subscribers. Each December, the Commission sends a
notification to each operator required to file Form 325 and instructs
the operator to file the form electronically via the FCC's Cable
Operations and Licensing System (COALS) within 60 days from the date of
the letter.
3. In the NPRM, the Commission sought comment on whether to
eliminate Form 325 or, in the alternative, improve and streamline the
form. The Commission solicited input on ``the continued utility of
collecting Form 325 data'' in light of the substantial changes in the
multichannel video programming distributor (MVPD) marketplace and in
the operations of cable television systems since the Commission last
examined the Form 325 data collection in 1999, on the costs associated
with completing Form 325, on alternative sources for the information
collected by the form, and on whether the benefits of the information
collected outweighed those costs. The Commission also sought comment on
ways to improve the Form 325 data collection, if it were retained.
III. Discussion
5. With this Report and Order, we eliminate the Form 325 filing
requirement for cable television systems. As the Commission noted in
the NPRM, Form 325 was first developed over 50 years ago and the last
significant modification of the form was nearly 20 years ago. We find
that marketplace, operational, and technological changes have overtaken
Form 325 and rendered it increasingly obsolete, as reflected by the
Commission's limited use of Form 325 data. Moreover, much of the
information collected by the form can be obtained from alternative
sources without the burden imposed on cable operators and the
Commission by the Form 325 filing requirement. Therefore, we eliminate
the requirement set forth in 47 CFR 76.403 of our rules that the
operator of every cable television system serving 20,000 or more
subscribers and a sampling of operators with systems serving fewer than
20,000 subscribers file Form 325 with the Commission.
Diminished Utility of Form 325
6. In light of substantial changes that have taken place in the
MVPD marketplace and in the way that cable systems operate, we find
that the information collected by Form 325 is far less relevant today
than it was when the Commission last considered, and elected to retain,
the form in 1999. As NCTA states, Form 325, with its questions about
analog operations and system-based organization, does not reflect the
technical realities of present-day cable service where ``individual
systems are no longer representative of today's cable network structure
due to the use of fiber interconnects and the elimination of numerous
standalone headends.'' Importantly, the last time the Commission voted
to retain Form 325 in 1999, the cable industry was less than a decade
removed from the passage of the Telecommunications Act of 1996 (1996
Act) and the Cable Television Consumer Protection and Competition Act
of 1992 (1992 Cable Act)--a time during which the Commission had
recently implemented, or was still in the process of implementing, the
regulatory mandates of those statutes. It was a time when the MVPD
industry--and the prominence of cable operators as video providers--
looked very different than it does today. Cable operators at the time
accounted for approximately 82 percent of total MVPD subscribers (as
compared to roughly 55 percent today) and today's online video
streaming services did not yet exist. Accordingly, the Commission noted
at the time that Form 325 could be useful for monitoring forthcoming
changes in the cable industry, including the introduction of digital
cable services. Similarly, the Commission believed that the form could
prove useful in collecting information regarding the transition from
analog to digital television broadcast signals. Now, the 1996 Act and
the 1992 Cable Act are more than 20 years behind us. The digital
television transition for full-power broadcast stations occurred over
nine years ago and the transition from analog to digital cable service
is now almost universal. According to one recent estimate,
approximately 97 percent of cable subscribers currently have digital
cable service. Therefore, it is clear that many of the expected changes
to the cable industry that Form 325 was designed to monitor have
already taken place.
7. While we acknowledge that Form 325 may have been useful at one
time, and that the data collected by the form have been used by the
Commission on various occasions through the years, we find that it has
become progressively less useful to, and less used by, the Commission
over time and has now reached a point where its limited usefulness can
no longer justify its retention. When the Commission elected not to
eliminate the form nearly 20 years ago, it envisioned various uses for
which the data collected by Form 325 might be useful to the Commission
in the future. Today, however, there is little evidence that the
information collected by Form 325 continues to be essential for the
purposes it once served or could have served. For instance, the
Commission found in 1999 that cable modem and set-top box data
collected by Form 325 could be useful for ``assess[ing] technical
capabilities of cable systems and the future of the industry'' and that
information on channel lineups could be used to ``determine the impact
of our must-carry and retransmission consent'' rules. Similarly, Public
Knowledge contends that Form 325 provides information useful to the
Commission in fulfilling its obligations under Section 629 to promote
the competitive availability of navigation devices. However, recent
Commission rulemakings related to Section 629 and retransmission
consent relied on third-party sources of data rather than Form 325 to
inform their analysis.
8. Indeed, recent instances where the Commission has cited Form 325
data in rulemaking proceedings are extremely limited, and in those
instances where it has been cited, it is not clear that the data cited
was critical to any major decision or that it was available exclusively
via Form 325. For instance, in the most recent example, the Commission
cited Form 325 data in a single footnote of an order to estimate the
number of low power television (LPTV) and Class A stations carried on
cable systems pursuant to mandatory carriage--data which would continue
to be available in public inspection files--and one party in that
proceeding directly questioned the accuracy of the Commission's
estimate. In another example, the Commission used information collected
via Form 325 about the number of deployed set-top boxes to affirm a
conclusion that applying IP closed captioning rules only to devices
with built-in screens would exclude a common means by which consumers
view programming. Beyond these examples, the Commission has
[[Page 61332]]
also, on occasion, used Form 325 data to determine how many subscribers
could potentially be affected when providing regulatory relief to
systems and operators or to craft exemptions on the basis of number of
subscribers served. All of this, however, amounts to just a handful of
fairly minor uses over the past six-plus years in instances where such
data could otherwise have been obtained from information requests or
other inquiries.
9. In addition, although the Commission has been statutorily
required to produce an annual report to Congress on ``the status of
competition in the market for the delivery of video programming,''
rather than use the data from Form 325, the Commission has routinely
opened a dedicated proceeding and issued a Public Notice to solicit
information to compile the report. As Verizon notes, the two most
recent annual video competition reports did not cite to Form 325 at
all, relying instead on third-party sources for such statistics as
subscribers to cable services and the number of homes passed. Indeed,
when the Commission sought to rely on the Form 325 data for more
substantial use in its 13th Video Competition Report, it concluded that
the data were inadequate for assessing whether the homes passed and
subscriber thresholds had been met under the section 612(g) ``70/70
test''--pursuant to which the Commission has authority to promulgate
any additional rules necessary to provide diversity of information
sources ``at such time as cable systems with 36 or more activated
channels are available to 70 percent of households within the United
States and are subscribed to by 70 percent of the households to which
such systems are available.'' Instead, the Commission concluded that an
industrywide information collection would be necessary to compile the
requisite data. Even for the more discrete use of Form 325 data in the
14th Video Competition Report--to show the percentage of households
passed by incumbent cable systems that subscribe to these systems as
well as the number of very small cable systems surveyed that offer
neither internet access nor telephone services--the report itself noted
that data from SNL Kagan could provide similar information.
Additionally, although the Media Bureau's annual report on cable prices
references Form 325 in a note to a table in the appendix, Bureau staff
today relies primarily on other sources to compile the data presented
in the table. Moreover, there is minimal public demand for the data
presently available; only a single party annually files a Freedom of
Information Act request for Form 325 data and no commenters claim to
currently use or recently have used Form 325 data.
10. In addition to being little used today, we note that the Form
325 data are subject to certain inherent constraints that render them
less than ideal and limit the purposes for which they can be used, such
as the fact that Form 325 data do not correspond to common geographic
units such as census blocks, counties, or DMAs and the Commission ``has
no reliable method for converting the geographic area of a cable system
to such units. As noted above, Form 325 data have not been collected
universally across the entire cable industry since the 1990s, and Form
325 is not filed by many of the smallest cable systems, a fact that may
render it somewhat less useful for purposes of assessing the latter
segment of the cable industry in particular. For example, in
determining the carriage of in-state broadcast stations on cable
systems for congressionally mandated reports pursuant to the Satellite
Television Extension and Localism Act of 2010 (STELA) and the STELA
Reauthorization Act of 2014 (STELAR), the Commission noted that many
rural counties of interest for purposes of the required reports may be
served by cable systems not subject to the Form 325 filing requirement.
Given the diminishing relevance of, and alternative sources for, the
Form 325 data, any attempt to expand the data collection among the
smallest cable systems in order to make the collection more
comprehensive would likely entail significant burdens for those systems
least able to bear them in exchange for little, if any, offsetting
benefit. Moreover, in addition to not being filed by many of the
smallest cable systems, Form 325 is not filed by non-cable video
providers either (e.g., DBS operators), further limiting its ability to
shed light on the overall video marketplace.
Alternative Sources for Information Currently Collected by Form 325
11. As mentioned above, the Commission has increasingly been
turning to public and third-party sources of data to help guide its
policymaking. In this regard, we note that information on subscribers,
equipment, physical plant, frequency and signal distribution, or
programming, such as that currently collected via Form 325, is
available through alternative sources. For instance, although Public
Knowledge asserts that the data collected via Form 325 provide valuable
information on the broadband industry, the Commission noted in the NPRM
that the cable modem and telephony subscriber data collected by Form
325 are similar, and likely inferior, to data collected via Form 477--
the Commission's primary vehicle for collecting information about the
broadband industry. In addition to Form 477, other sources of cable
industry data include: Information collected via FCC Forms 320, 322,
324, 327, and 333; information provided pursuant to section 76.1205 and
section 76.1709; other governmental filings, such as Securities and
Exchange Commission (SEC) filings and Copyright Office Statements of
Account; information released by industry groups such as ACA and NCTA;
and information available through commercial sources such as SNL Kagan
and S&P Global Market Intelligence (S&P Global), BIA/Kelsey (BIA
Advisory Services), The Nielsen Company, and Television and Cable
Factbook (Warren Communications). In particular, as noted in the NPRM,
channel lineup information, such as that collected by Form 325, is
widely available from public sources that include cable operator
websites and third-party guide services. Additionally, information
related to the carriage of leased access programming, the availability
of which was once a concern underpinning the collection of channel
lineup information, is now available through at least one commercial
source, and the Commission also provides information on the average
number of leased access channels in its Cable Price Survey Report. We
believe that these other sources available to the Commission generally
offer the accuracy, timeliness, and ongoing availability that the
Commission once looked to Form 325 to provide, as evidenced by the fact
that both the Commission and industry stakeholders regularly rely upon
such sources, not Form 325, for various purposes. Specifically, we find
that other sources besides Form 325 also provide voluminous,
standardized information that can be used to conduct year-over-year
comparisons, as the Commission routinely does.
12. Of course, even after eliminating the Form 325 filing
requirement, the Commission retains the ability to obtain data on an
as-needed basis. For example, the Commission regularly seeks detailed
market-by-market information from applicants in transactions involving
MVPDs or internet service providers regarding homes passed, numbers of
subscribers, services provided, and competitors faced, among other
things. The Commission often seeks similar
[[Page 61333]]
information from third-party competitors as well. This is ultimately a
more cost-effective and targeted approach than trying to collect data
through an industrywide mechanism such as Form 325. In addition, the
Commission also retains the ability to collect information and data
through rulemakings, inquiries, and other collections, which may yield
more current data than Form 325.
13. In short, we believe the information available through all of
these alternative sources is sufficiently reliable that we can
confidently eliminate Form 325. We therefore disagree with Public
Knowledge's assertions that information collected in rulemakings and
other proceedings cannot be considered a sufficiently reliable
alternative to Form 325 data because firms are not compelled to
disclose the information and are not subject to a certification of
accuracy. First, we note that there is an expectation that parties
submitting comments or data in Commission proceedings will not provide
false or misleading information to the Commission, and even if a party
provides information that arguably could be seen as biased or one-sided
in some way, respondents in Commission proceedings have an opportunity
to set the record straight by highlighting such bias for the Commission
or submitting their own contrary analyses. Moreover, we note that
making false statements to the United States government is punishable
by law; therefore, many of the other federal filings mentioned above
likely would be at least as reliable and accurate as Form 325 filings,
and thus could serve a cross-check function similar to that which
Public Knowledge asserts Form 325 data fulfill.
14. In addition, we find that other publicly available sources,
including those mentioned above, are likely to be more useful than the
information collected by Form 325 in keeping the public informed about
the cable industry. Such sources generally present a more up-to-date
picture of the industry than Form 325 data, which are currently
withheld from the public for three years due to competitive concerns.
Furthermore, we note that no commenters in this proceeding state that
they are currently using, or have recently used, the Form 325 data for
any purpose, which is not surprising given the datedness of the
information and the abundance of other sources available. Lastly,
although Public Knowledge correctly notes that proprietary information
from commercial sources can be expensive and subject to restrictive
licensing terms, the Commission analyzes such sources in producing
video competition reports and other documents available to the public,
and many alternatives to Form 325 data are available to and have been
used by commenters in Commission proceedings.
15. While we agree with Public Knowledge that the Commission has a
responsibility--and Congress and the public have an interest--in
remaining informed about the nature and evolution of the cable
industry, we find today that Form 325 does not remain necessary to
fulfilling that responsibility.
Burdens Imposed by Form 325 Data Collection
16. According to commenters, Form 325 is a significant burden to
cable operators. ACA, NCTA, and Verizon report substantial time spent
on these forms, in excess of Commission estimates. According to NCTA,
even if the Commission's two-hour estimate for completion of a Form 325
reflected operators' experience, larger operators ``would still need to
devote 10 weeks' worth of employee time'' to complete the required
forms. ACA points to ``several reasons for this lengthy timeframe,''
including that the form requires gathering of information that is not
used in the typical course of business and collaboration among
employees who do not typically interface. According to ACA, such a
burden is particularly challenging for smaller operators with fewer
resources at their disposal. NCTA also asserts that, ``[d]epending on
internal workload and resources, some operators must hire contract
workers to input data.'' In addition, both NCTA and ACA point to the
need for operators to retain outside counsel ``to ensure that sensitive
Form 325 data is provided confidential treatment.'' While commenters
did not provide estimates of the monetary costs associated with
completing and filing Form 325, the limited utility of the data
collected therein cannot justify the number of hours expended by
operators with limited resources in completing Form 325. Further, even
the Commission's lower estimate of two hours to complete a Form 325 for
each PSID represents a burden that likely outweighs the limited
usefulness of Form 325 data today. Finally, we note that the Form 325
data collection also places significant burdens on Commission staff to
collect, compile, and maintain the data.
17. In the NPRM, the Commission sought comment on ways to improve
Form 325, if it were retained. In response, Public Knowledge suggests
that rather than eliminate Form 325, the Commission should improve it
and make better use of the data collected. However, we find that any
attempt to overhaul Form 325 to make it more up-to-date and useful
would be substantial and would likely result in creating a form that
would duplicate other similarly up-to-date and useful sources that
already exist. At the same time, we note that our action today does not
obviate the need or legal obligation to file other data with the
Commission, nor does it preclude future collection of relevant cable
system information by the Office of Economics and Analytics once it is
up and running.
18. In sum, we find that the Form 325 is outdated and imposes
significant burdens on both cable operators and Commission staff.
Because this filing requirement no longer provides sufficient
offsetting benefits to justify its retention, we find that its
elimination is in the public interest.
IV. Procedural Matters
19. Paperwork Reduction Analysis. This document eliminates, and
thus does not contain new or revised, information collection
requirements subject to the Paperwork Reduction Act of 1995 (PRA),
Public Law 104-13, 44 U.S.C. 3501-3520. In addition, therefore, it does
not contain any new or modified ``information burden for small business
concerns with fewer than 25 employees'' pursuant to the Small Business
Paperwork Relief Act of 2002, Public Law 107-198, 44 U.S.C. 3506(c)(4).
Final Regulatory Flexibility Analysis
20. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was
incorporated in the NPRM in MB Docket 17-290. The Commission sought
written public comments on proposals in the NPRM, including comment on
the IRFA. The Commission received no direct comments on the IRFA,
although some commenters discussed the effect of the proposals on
smaller entities, as discussed below. The present Final Regulatory
Flexibility Analysis (FRFA) conforms to the RFA.
Need for, and Objectives of, the Report and Order
21. The Report and Order arises from a Public Notice issued by the
Commission in May 2017, launching an initiative to modernize the
Commission's media regulations. The Report and Order finds that
marketplace, operational, and technological changes have overtaken Form
325 and rendered it increasingly
[[Page 61334]]
obsolete, as reflected by the Commission's limited use of Form 325 data
and reliance on alternative sources of data that offer the accuracy,
timeliness, and ongoing availability that the Commission once looked to
Form 325 to provide. In addition, the Report and Order finds that
efforts to make Form 325 more up-to-date and useful would be
substantial and would likely result in creating a form that would
duplicate other similarly up-to-date and useful sources that already
exist. The Report and Order concludes that the Form 325 data collection
represents a significant burden on cable operators, as well as on
Commission staff, and that this burden outweighs the limited usefulness
of Form 325 data. Accordingly, the Report and Order adopts the NPRM's
proposal to eliminate Form 325. Specifically, the Report and Order
eliminates: (i) The requirement that the operator of every operational
cable television system that serves 20,000 or more file with the
Commission a Form 325 soliciting general information and frequency and
signal distribution information on a Physical System Identification
Number (``PSID'') basis; and (ii) the requirement that Form 325 be
filed by any cable operator with less than 20,000 subscribers selected
by random sampling.
Summary of Significant Issues Raised by Public Comments in Response to
the IRFA
22. No comments were filed in direct response to the IRFA.
Response to Comments by the Chief Counsel for Advocacy of the Small
Business Administration
23. Pursuant to the Small Business Jobs Act of 2010, which amended
the RFA, the Commission is required to respond to any comments filed by
the Chief Counsel for Advocacy of the SBA and to provide a detailed
statement of any change made to the proposed rules as a result of those
comments. The Chief Counsel did not file any comments in response to
this proceeding.
Description and Estimate of the Number of Small Entities to Which Rules
Will Apply
24. The RFA directs agencies to provide a description of and, where
feasible, an estimate of the number of small entities that will be
affected by the rules adopted. The RFA generally defines the term
``small entity'' as having the same meaning as the terms ``small
business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act. A ``small business concern'' is one which: (1) Is independently
owned and operated; (2) is not dominant in its field of operation; and
(3) satisfies any additional criteria established by the SBA. The final
rules adopted herein affect small television and radio broadcast
stations and small entities that operate daily newspapers. A
description of these small entities, as well as an estimate of the
number of such small entities, is provided below.
25. Cable Companies and Systems (Rate Regulation). The Commission
has developed its own small business size standards for the purpose of
cable rate regulation. Under the Commission's rules, a ``small cable
company'' is one serving 400,000 or fewer subscribers nationwide. In
addition, under the Commission's rate regulation rules, a ``small
system'' is a cable system serving 15,000 or fewer subscribers.
Industry data indicate that there are currently 4,300 active cable
systems in the United States. Of this total, 3,550 cable systems have
fewer than 15,000 subscribers, and 750 systems have 15,000 or more
subscribers. Thus, we estimate that most cable systems are small
entities.
26. 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 million.'' There are approximately 51,859,070
cable video subscribers in the United States today. Accordingly, an
operator serving fewer than 518,590 subscribers shall be deemed a small
operator if its annual revenues, when combined with the total annual
revenues of all its affiliates, do not exceed $250 million in the
aggregate. Based on available data, we find that all but six incumbent
cable operators are small entities under this size standard. We note
that the Commission neither requests nor collects information on
whether cable system operators are affiliated with entities whose gross
annual revenues exceed $250 million. Although it seems certain that
some of these cable system operators are affiliated with entities whose
gross annual revenues exceed $250 million, we are unable at this time
to estimate with greater precision the number of cable system operators
that would qualify as small cable operators under the definition in the
Communications Act.
Description of Reporting, Recordkeeping, and Other Compliance
Requirements for Small Entities
27. The Report and Order eliminates the rule requiring cable system
operators to complete Form 325. Accordingly, the Report and Order does
not impose any new reporting, recordkeeping, or compliance requirements
for small entities. The Report and Order thus will not impose
additional obligations or expenditure of resources on small businesses.
Steps Taken To Minimize Significant Economic Impact on Small Entities,
and Significant Alternatives Considered
28. The RFA requires an agency to describe any significant
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 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.
29. In this proceeding, the Commission has three chief alternatives
available for Form 325--eliminate the form, modernize and streamline
it, or retain it. The Commission finds that marketplace, operational,
and technological changes have overtaken Form 325 and rendered it
increasingly obsolete, as reflected by the Commission's limited use of
Form 325 data and reliance on alternative sources of data that offer
the accuracy, timeliness, and ongoing availability that the Commission
once looked to Form 325 to provide. The Commission finds further that
eliminating the form will benefit small entities by reducing the burden
and costs of compliance. Thus, the Report and Order eliminates the
obligation for cable systems to file Form 325. Eliminating this
requirement is intended to modernize the Commission's regulations and
reduce costs and recordkeeping burdens for affected entities, including
small entities. According to commenters, small entities spend as many
as ten hours completing Form 325. Under the revised rules, affected
entities no longer will need to expend time and resources collecting,
maintaining, and organizing the information requested in the form or
[[Page 61335]]
completing the form. Therefore, removing this information collection
requirement will help small entities in particular to cut unnecessary
costs related to gathering the information requested in Form 325 and
completing the form. Thus, we anticipate that affected small entities
will benefit from these revisions.
Report to Congress
30. 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.
Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rule
31. None.
V. Ordering Clauses
32. Accordingly, it is ordered that, pursuant to the authority
found in sections 1, 4(i), 4(j), and 303 of the Communications Act of
1934, as amended, 47 U.S.C. 151, 154(i), 154(j), and 303, this Order is
adopted.
33. It is further ordered that, pursuant to the authority found in
sections 1, 4(i), 4(j), and 303 of the Communications Act of 1934, as
amended, 47 U.S.C. 151, 154(i), 154(j), and 303, the Commission's rules
ARE AMENDED as set forth in Appendix A, effective as of the date of
publication of a summary in the Federal Register.
34. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Order, including the Final Regulatory Flexibility
Analysis, to the Chief Counsel for Advocacy of the Small Business
Administration.
35. It is further ordered that, pursuant to Section 801(a)(1)(A) of
the Congressional Review Act, 5 U.S.C. 801(a)(1)(A), the Commission
shall send a copy of the Order to Congress and to the Government
Accountability Office.
36. It is further ordered that, should no petitions for
reconsideration or petitions for judicial review be timely filed, MB
Docket No. 17-290 shall be terminated and its docket closed.
Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer, Office of the Secretary.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR parts 0, 1, and 76 of title 47
as follows:
PART 0--COMMISSION OPERATIONS
0
1. The authority citation for part 0 continues to read as follows:
Authority: Sec. 5, 48 Stat. 1068, as amended; 47 U.S.C. 155,
225, unless otherwise noted.
Sec. 0.408 [Amended]
0
2. Amend Sec. 0.408 in the table in paragraph (b) by removing the
entry for ``3060-0061, FCC 325, 01/31/20''.
PART 1--PRACTICE AND PROCEDURE
0
3. The authority citation for part 1 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 155, 157, 160, 201, 225, 227,
303, 309, 332, 1403, 1404, 1451, 1452, and 1455, unless otherwise
noted.
0
4. Amend Sec. 1.1703 by revising paragraph (e) to read as follows:
Sec. 1.1703 Definitions.
* * * * *
(e) Filings. Any application, notification, registration statement,
or report in plain text, or, when as prescribed, on FCC Forms, 320,
321, 322, 324, or 327, whether filed in paper form or electronically.
* * * * *
Sec. 1.1705 [Amended]
0
5. Amend Sec. 1.1705 by removing and reserving paragraph (a)(5) and by
removing ``325,'' from paragraph (b) introductory text and from
paragraph (c)(1).
PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE
0
6. The authority citation for part 76 continues to read as follows:
Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 302a, 303,
303a, 307, 308, 309, 312, 315, 317, 325, 338, 339, 340, 341, 503,
521, 522, 531, 532, 534, 535, 536, 537, 543, 544, 544a, 545, 548,
549, 552, 554, 556, 558, 560, 561, 571, 572, 573.
Subpart I--[Removed and Reserved]
0
7. Remove and reserve subpart I, consisting of Sec. 76.403.
[FR Doc. 2018-25323 Filed 11-28-18; 8:45 am]
BILLING CODE 6712-01-P