Electronic Delivery of Notices to Broadcast Television Stations; Modernization of Media Regulation Initiative, 15999-16006 [2020-05478]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 85, Number 55 (Friday, March 20, 2020)]
[Rules and Regulations]
[Pages 15999-16006]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05478]


-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 74 and 76

[MB Docket Nos. 19-165, 17-105; FCC 20-8; FRS 16516]


Electronic Delivery of Notices to Broadcast Television Stations; 
Modernization of Media Regulation Initiative

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: In this document, the Federal Communications Commission (FCC 
or Commission) modernizes its rules regarding certain written notices 
that cable operators and direct broadcast satellite (DBS) providers are 
required to provide to broadcast television stations. Rather than 
continuing to require that cable and DBS providers deliver these 
notices on paper, the Commission is revising its rules to require that 
the notices be delivered to broadcast television stations 
electronically via email.

DATES: 
    Effective Date: April 20, 2020.
    Compliance Date: Compliance will not be required for 47 CFR 74.779, 
76.54(e), 76.64(k), 76.66(d)(1)(iv), (d)(2)(ii), (v), and (vi), 
(d)(3)(iv), (d)(5)(i), (f)(3) and (4), and (h)(5), 76.1600(e), 76.1607, 
76.1608, 76.1609, and 76.1617(a) and (c) until the Commission publishes 
a document in the Federal Register announcing the compliance date.

FOR FURTHER INFORMATION CONTACT: Christopher Clark, Industry Analysis 
Division, Media Bureau, at [email protected] or (202) 418-2609.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order, FCC 20-8, in MB Docket Nos. 19-165 and 17-105, adopted on 
January 30, 2020, and released on January 31, 2020. The complete text 
of this document is available electronically via the FCC's Electronic 
Document Management System (EDOCS) website at https://www.fcc.gov/document/fcc-modernizes-delivery-mvpd-notices-broadcast-tv-stations-0. 
Documents will be available electronically in ASCII, Microsoft Word, 
and/or Adobe Acrobat. The complete text of this document is also 
available for public inspection and copying during regular business 
hours in the FCC Reference Information Center, Federal Communications 
Commission, 445 12th Street SW, CY-A257, Washington, DC 20554. 
Alternative formats are available for people with disabilities 
(Braille, large print, electronic files, audio format) by sending an 
email to [email protected] or calling the Commission's Consumer and 
Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 
(TTY).

Synopsis

    1. We adopt the proposal to require electronic delivery of certain 
notices that cable operators are required to provide to broadcast 
television stations under our existing rules. To harmonize the rules 
applicable to cable operators and direct broadcast satellite (DBS) 
providers, we extend the same treatment to the notices that DBS 
providers are required to provide to broadcast television stations 
under our existing rules. We conclude that it will serve the public 
interest and enhance administrative efficiency to harmonize the 
notification rules discussed herein for cable operators and DBS 
providers with our modernized carriage election notice procedures for 
broadcast television stations.
    2. As proposed in the notice of proposed rulemaking (NPRM) (84 FR 
37979, August 5, 2019), we will require that cable operators use email 
to deliver notices to broadcast television stations in the following 
circumstances: informing local broadcast stations that a new cable 
system intends to commence service (Sec.  76.64(k)); sending required 
information to local broadcast stations when a new cable system is 
activated (Sec.  76.1617); notifying a television station about the 
deletion or repositioning of its signal (Sec.  76.1601); informing 
stations of a change in the designation of the principal headend of a 
cable operator (Sec.  76.1607); informing stations that a cable 
operator intends to integrate two cable systems, requiring a uniform 
carriage election (Sec.  76.1608); and notifying stations that a cable 
system serves 1,000 or more subscribers and is no longer exempt from 
the Commission's network non-duplication and syndicated exclusivity 
rules (Sec.  76.1609). To ensure that television stations continue to 
receive these important notices, we will require that cable operators 
deliver the notices to the email address that the station designates 
for carriage-related questions in accordance with the procedures 
adopted in the Carriage Election Notice Modernization proceeding. Under 
those procedures, commercial and noncommercial full-power and Class A 
television stations are already required to provide a current email 
address and phone number in their online public inspection file (OPIF) 
for carriage-related questions no later than July 31, 2020, and 
maintain up-to-date contact information at all times thereafter. 
Requiring cable operators to deliver notices to this email address will 
help ensure that notices are sent to the correct inbox without imposing 
any new obligations on these stations. Because the email address must 
be kept up-to-date, cable operators will easily be able to identify the 
email address that is current for purposes of sending notices to a 
television station. In addition, if questions arise pertaining to the 
notices, cable operators will be able to call the station at the phone 
number provided.
    3. We conclude that transitioning the notices from paper to 
electronic delivery will serve the public interest. As discussed above, 
the Commission has already taken similar steps with respect to various 
other notices and filings required by our rules. In doing so, the 
Commission found that the benefits of transitioning the notices from 
paper to electronic delivery include reducing the costs, administrative 
burdens, and environmental waste associated with paper notices. 
Consistent with these previous determinations, we conclude that 
requiring notices under Sec.  76.64(k) and subpart T to be delivered to 
broadcast television stations via email will reduce burdens on all 
parties and ensure that notices are still received in a timely manner, 
while reducing environmental waste.
    4. Perhaps not surprisingly, we find unanimous support in the 
record for transitioning these notices from paper to electronic 
delivery. Cable operators and broadcasters commenting in this 
proceeding agree that electronic delivery will reduce the time and 
money spent on the required notices, enable quicker, more effective 
communication of necessary information, and decrease the environmental 
waste generated by paper notices. As the National Cable and 
Telecommunications Association (NCTA) explains, electronic notices need 
not be printed, posted, or tracked to ensure they reach their 
destination, making them far less expensive and much less 
administratively burdensome than paper notices. Because email 
transmission is nearly instantaneous and paper delivery methods often 
take up to several days, transitioning from paper notices to email will 
also help ensure that broadcasters receive notices

[[Page 16000]]

much faster than they do currently. Further, as America's 
Communications Association (ACA) and NCTA attest, allowing the notices 
to be delivered via email is consistent with the way companies do 
business today. Public television broadcasters similarly support the 
use of email for notices to full-power noncommercial television 
stations, and the National Association of Broadcasters (NAB) suggests 
that email would be acceptable for delivering notices to low-power 
television (LPTV) stations. No commenter disputes our authority to 
require that cable operators deliver notices via email. And we 
conclude, consistent with our previous finding, that emailing 
television stations the information required by Sec.  76.64(k) and 
subpart T of our rules satisfies the ``written notice'' requirement in 
sections 614(b)(9) and 615(g)(3) of the Communications Act of 1934, as 
amended, because ``it is reasonable to interpret the term `written 
information' . . . to include information delivered by email.''
    5. Given the unanimous support in the record for transitioning from 
paper to electronic delivery of notices from cable operators to 
broadcast television stations, we see no reason to retain paper 
delivery as an option for the notices required by Sec.  76.64(k) and 
subpart T of our rules. Indeed, no commenter in this proceeding asserts 
that we should retain such an option. To the contrary, ACA cautions 
that exempting some broadcasters from receiving the notices 
electronically would substantially negate the benefits of our decision 
today to move to electronic distribution of the notices. We agree with 
ACA that requiring cable operators to deliver notices to some broadcast 
stations via email and other stations via paper delivery would 
introduce unnecessary complexity and additional costs, which could pose 
challenges, particularly for small cable operators with limited 
resources. Similarly, we believe that allowing some cable operators to 
continue using paper delivery to distribute the notices would impose 
unnecessary burdens and costs on broadcast television stations. To 
streamline delivery of the notices and reduce the associated costs and 
burdens for all parties, we adopt email as the required means for 
delivering notices to broadcast television stations under Sec.  
76.64(k) and subpart T of our rules. Accordingly, we will require that 
after July 31, 2020, cable operators must deliver to broadcast 
television stations electronically via email the notices required by 
the rules listed above.
    6. For LPTV stations that are entitled to notices but not required 
to maintain an OPIF, we will require that notices be delivered to the 
general email address listed for the licensee in our Licensing and 
Management System (LMS). Unlike full-power and Class A television 
stations, non-Class A LPTV stations are not subject to our OPIF rules 
and will therefore need to use alternative means other than the OPIF to 
publicize an email address and phone number for receiving notices from 
cable operators. We agree with commenters that cable operators should 
be able to consult a single Commission website or database to obtain 
contact information for delivering notices to non-Class A LPTV 
stations, rather than having to attempt to locate this information on 
each station's website. While some commenters suggest the Commission 
should establish a new means to collect and share such contact 
information, we find that the information such stations are already 
required to provide in LMS is sufficient for this purpose. When 
submitting a broadcast license application in LMS, an applicant is 
required to provide contact information, including an email address and 
phone number, for itself and any contact representatives listed on the 
form. Thus, each LPTV station that has filed a license application in 
LMS should already have an email address and phone number listed in 
LMS. LPTV stations may add or update this information easily by filing 
an Administrative Update for a LPTV/Translator Station Application in 
LMS. After submission, this contact information is publicly available 
in LMS via the Facility Details page, which may be accessed by doing a 
Facility Search and then clicking the relevant Facility ID Number in 
the Facility Search results.
    7. We conclude that notices to non-Class A LPTV stations should be 
delivered to the licensee's email address, rather than a contact 
representative's email address (if different from the licensee's email 
address), to ensure that all such notices are delivered consistently to 
the same inbox in cases where a station designates a third party as a 
contact representative or designates multiple types of contact 
representatives. Accordingly, we will require that after July 31, 2020, 
Sec.  76.64(k) and subpart T notices to LPTV stations that are entitled 
to such notices but that lack Class A status must be delivered to the 
email address listed for the licensee (not a contact representative, if 
different from the licensee) in LMS. Delivering notices to the email 
address listed for the contact representative is not sufficient to 
satisfy the notice requirements in Sec.  76.64(k) and subpart T. After 
July 31, 2020, non-Class A LPTV stations must be prepared to respond to 
carriage questions directed to the licensee's email address and phone 
number (not a contact representative's email address and phone number, 
if different) as displayed publicly in LMS and must ensure that this 
information is kept up-to-date in LMS. We conclude that relying on this 
existing information in LMS will ensure that cable operators are able 
to identify contact information easily for notices to non-Class A LPTV 
stations without imposing additional burdens on stations or the 
Commission. LPTV stations are responsible for the accuracy of this 
contact information, and cable operators may rely on its accuracy at 
any time after July 31, 2020, for purposes of delivering the notices 
required by Sec.  76.64(k) and subpart T of the Commission's rules.
    8. Similarly, with respect to qualified noncommercial educational 
(NCE) translator stations, we agree with the public broadcasting 
organizations that there is no need to adopt a new email posting 
requirement for such stations. Rather, we will require that after July 
31, 2020, Sec.  76.64(k) and subpart T notices to a qualified NCE 
translator station must be delivered to the email address listed for 
the licensee (not a contact representative, if different from the 
licensee) in LMS, or alternatively to the primary station's carriage-
related email address, if the translator station does not have its own 
email address listed in LMS. Like LPTV and other broadcast stations, 
qualified NCE translator stations are already required to provide 
general contact information, including an email address and phone 
number, when filing license applications in LMS. While it is possible 
that some qualified NCE translator stations have yet to submit a filing 
in LMS, we expect that by the end of the next cycle for television 
license renewal applications in 2023, all such stations will have 
submitted an application requiring them to provide an email address and 
phone number in LMS. We conclude that delivering relevant notices to 
the primary station's carriage-related email address is sufficient for 
providing electronic notices to qualified NCE translator stations that 
have no email address listed in LMS. Unlike an LPTV station, a 
qualified NCE translator station is associated with the primary station 
that authorizes the retransmission of its signal by the translator 
station. To the extent a qualified NCE translator station and its 
primary station are not owned by

[[Page 16001]]

the same party, we expect that the owner of the primary station will 
inform the translator station promptly upon receiving relevant notices. 
Because the Commission's rules prohibit a TV translator station from 
rebroadcasting the programs of a TV broadcast station without obtaining 
the TV broadcast station's prior consent, we anticipate that there will 
be an existing relationship between a qualified NCE translator station 
and its primary station even where the stations are not owned by the 
same party. Moreover, we believe that the primary station will have 
every incentive to inform its affiliated translator station of relevant 
notices quickly in order to maintain or expand the reach of its 
programming.
    9. To effectuate these changes, we add to Sec.  76.1600 of our 
rules a new subsection requiring that notices provided by cable 
operators to broadcast television stations under Sec.  76.64(k) and 
subpart T must be delivered via email as discussed herein. To avoid 
potential discrepancies with Sec.  76.1600 as revised herein, we also 
add language to Sec. Sec.  76.64(k), 76.1607, 76.1608, 76.1609, and 
76.1617 to reflect our decision to require that cable operators deliver 
the notices required by these rules electronically to broadcast 
television stations via email in accordance with revised Sec.  76.1600. 
In addition, we codify the requirements discussed above for LPTV and 
qualified NCE translator stations. Further, as proposed in the NPRM, we 
make a minor correction to our rules in part 74 by moving our existing 
channel sharing rule for LPTV and TV translator stations from subpart H 
(Low Power Auxiliary Stations) to subpart G (Low Power TV, TV 
Translator, and TV Booster Stations). Because the rules in subpart G 
apply to LPTV stations, TV translator stations, and TV booster 
stations, subpart G is a more appropriate location for Sec.  74.799 
than subpart H, which contains rules for low power auxiliary stations 
that transmit over distances of approximately 100 meters for uses such 
as wireless microphones, cue and control communications, and 
synchronization of TV camera signals.
    10. We adopt the same approach outlined above for the notices that 
DBS providers currently are required to provide to broadcast television 
stations pursuant to the following rules: Sec. Sec.  76.54(e) and 
76.66(d)(5) (intent to retransmit ``significantly viewed'' out-of-
market station); 76.66(d)(2) (intent to launch new local-into-local or 
HD carry-one, carry-all service); 76.66(d)(1)(vi) and (d)(3)(iv) 
(response to carriage requests); 76.66(f)(3) and (4) (location of local 
receive facility or intent to relocate such facility); and 76.66(h)(5) 
(deletion of duplicating signal or addition of formerly duplicating 
signal). DISH and DIRECTV support the NPRM's proposal to require that 
DBS providers deliver these notices electronically via email, and no 
commenter opposes such a requirement.
    11. No commenter disputes our authority to adopt rules requiring 
that DBS operators deliver these notices via email. We believe it will 
serve the public interest and enhance administrative efficiency to have 
a consistent approach for delivery of notices discussed herein. We 
agree with DISH and DIRECTV that, given our previous decision to 
require electronic delivery of carriage election notices, failure to 
allow email delivery of the notices required by Sec. Sec.  76.54(e) and 
76.66 will result in disproportionate burdens on DBS providers and 
broadcasters, and raise logistical and operational challenges. 
Accordingly, we require that after July 31, 2020, DBS providers must 
deliver to broadcast television stations electronically via email the 
notices required by the rules listed above. Such notices must be 
delivered to the same email address the station designates for 
carriage-related questions, as discussed above for the notices from 
cable operators. We revise our rules accordingly.
    12. Paperwork Reduction Act Analysis. This document contains new or 
modified information collection requirements subject to the Paperwork 
Reduction Act of 1995 (PRA), Public Law 104-13. The requirements will 
be submitted to the Office of Management and Budget (OMB) for review 
under section 3507(d) of the PRA. OMB, the general public, and other 
Federal agencies are invited to comment on the new or modified 
information collection requirements contained in this proceeding. In 
addition, we note that pursuant to the Small Business Paperwork Relief 
Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4), we 
previously sought specific comment on how the Commission might further 
reduce the information collection burden for small business concerns 
with fewer than 25 employees.
    13. Congressional Review Act. The Commission has determined, and 
the Administrator of the Office of Information and Regulatory Affairs, 
Office of Management and Budget, concurs that this rule is ``non-
major'' under the Congressional Review Act, 5 U.S.C. 804(2). The 
Commission will send a copy of this Report and Order to Congress and 
the Government Accountability Office pursuant to 5 U.S.C. 801(a)(1)(A).

Final Regulatory Flexibility Analysis

    14. 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 (NPRM) in MB Docket 
No. 19-165. 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. The present Final Regulatory Flexibility 
Analysis (FRFA) conforms to the RFA.
    15. Need for, and Objectives of, the Report and Order. In the 
Report and Order, the Commission takes additional steps to modernize 
certain notice provisions in part 76 of the Commission's rules 
governing multichannel video and cable television service. Currently, 
these rules require that cable operators and other multichannel video 
programming distributors (MVPDs) provide certain written notices to 
broadcast stations by paper delivery, such as mail, certified mail, or, 
in some instances, hand delivery. Section 76.64(k) and subpart T of the 
Commission's rules contain written notification requirements for cable 
operators, and Sec. Sec.  76.54(e) and 76.66 of the Commission's rules 
contain written notification requirements for direct broadcast 
satellite (DBS) providers. The rules require written notice to a local 
broadcast television station prior to deleting or repositioning the 
station, changing the location of the principal headend or local 
receive facility, or commencing service in a market, among other 
things.
    16. The Report and Order revises the Commission's rules to require 
that cable operators deliver notices electronically to broadcast 
television stations in the following circumstances: Informing local 
broadcast stations that a new cable system intends to commence service 
(Sec.  76.64(k)); sending required information to local broadcast 
stations when a new cable system is activated (Sec.  76.1617); 
notifying a television station about the deletion or repositioning of 
its signal (Sec.  76.1601); informing stations of a change in the 
designation of the principal headend of a cable operator (Sec.  
76.1607); informing stations that a cable operator intends to integrate 
two cable systems, requiring a uniform carriage election (Sec.  
76.1608); and notifying stations that a cable system serves 1,000 or 
more subscribers and is no longer exempt from the Commission's network 
non-duplication and syndicated exclusivity rules (Sec.  76.1609). After 
July 31, 2020, cable operators must deliver required notices

[[Page 16002]]

to full-power and Class A television stations electronically via email 
to the inbox that the station designates for carriage-related questions 
in its online public inspection file (OPIF). Similarly, notices to LPTV 
stations must be delivered to the email address listed for the licensee 
(not a contact representative, if different from the licensee) in the 
Commission's Licensing and Management System (LMS), and notices to 
qualified noncommercial educational (NCE) translator stations must be 
delivered to the email address listed for the licensee in LMS (not a 
contact representative, if different from the licensee) or 
alternatively the primary station's carriage-related email address, if 
the translator station does not have its own email address listed in 
LMS.
    17. The Report and Order also requires that DBS providers similarly 
use email to deliver to broadcast television stations the notices 
required by the following rules: Sec. Sec.  76.54(e) and 76.66(d)(5) 
(intent to retransmit ``significantly viewed'' out-of-market station); 
76.66(d)(2) (intent to launch new local-into-local or HD carry-one, 
carry-all service); 76.66(d)(1)(vi) and (d)(3)(iv) (response to 
carriage requests); 76.66(f)(3) and (4) (location of local receive 
facility or intent to relocate such facility); and 76.66(h)(5) 
(deletion of duplicating signal or addition of formerly duplicating 
signal). Through this Report and Order, the Commission continues its 
efforts to update its rules and eliminate outdated requirements.
    18. Summary of Significant Issues Raised by Public Comments in 
Response to the IRFA. No comments were filed in direct response to the 
IRFA.
    19. Response to Comments by the Chief Counsel for Advocacy of the 
Small Business Administration. 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.
    20. Description and Estimate of the Number of Small Entities To 
Which 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 proposed rules, if adopted. The 
RFA generally defines the term ``small entity'' as having the same 
meaning as the terms ``small business,'' ``small organization,'' and 
``small governmental jurisdiction.'' In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act. A small business concern is one which: 
(1) Is independently owned and operated; (2) is not dominant in its 
field of operation; and (3) satisfies any additional criteria 
established by the SBA. Below, we provide a description of such small 
entities, as well as an estimate of the number of such small entities, 
where feasible.
    21. Cable Companies and Systems (Rate Regulation Standard). The 
Commission has also developed its own small business size standards, 
for the purpose of cable rate regulation. Under the Commission's rules, 
a ``small cable company'' is one serving 400,000 or fewer subscribers 
nationwide. The Commission determined that this size standard equates 
approximately to a size standard of $100 million or less in annual 
revenues. In addition, under the Commission's 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. Thus, we 
estimate that most cable systems are small entities.
    22. Cable System Operators (Telecommunications Act Standard). The 
Act also contains a size standard for a small cable system operator, 
which is ``a cable operator that, directly or through an affiliate, 
serves in the aggregate fewer than 1 percent of all subscribers in the 
United States and is not affiliated with any entity or entities whose 
gross annual revenues in the aggregate exceed $250,000,000.'' There are 
approximately 49,011,210 cable video subscribers in the United States 
today. Accordingly, an operator serving fewer than 490,112 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 five 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.
    23. We also note that there currently are 182 cable antenna relay 
service (CARS) licensees. The Commission, however, neither requests nor 
collects information on whether CARS licensees are affiliated with 
entities whose gross annual revenues exceed $250 million. Although some 
CARS licensees may be affiliated with entities whose gross annual 
revenues exceed $250 million, we are unable at this time to estimate 
with greater precision the number of CARS licensees that would qualify 
as small cable operators under the definition in the Communications 
Act.
    24. Direct Broadcast Satellite (DBS) Service. DBS service is a 
nationally distributed subscription service that delivers video and 
audio programming via satellite to a small parabolic dish antenna at 
the subscriber's location. DBS is now included in SBA's economic census 
category ``Wired Telecommunications Carriers.'' The Wired 
Telecommunications Carriers industry comprises establishments primarily 
engaged in operating and/or providing access to transmission facilities 
and infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single technology 
or combination of technologies. Establishments in this industry use the 
wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services, wired (cable) audio and video programming 
distribution; and wired broadband internet services. By exception, 
establishments providing satellite television distribution services 
using facilities and infrastructure that they operate are included in 
this industry. The SBA determines that a wireline business is small if 
it has fewer than 1,500 employees. Economic census data for 2012 
indicate that 3,117 wireline companies were operational during that 
year. Of that number, 3,083 operated with fewer than 1,000 employees. 
Based on that data, we conclude that the majority of wireline firms are 
small under the applicable standard. Currently, however, only two 
entities provide DBS service, which requires a great deal of capital 
for operation: DIRECTV (owned by AT&T) and DISH Network. DIRECTV and 
DISH Network each report annual revenues that are in excess of the 
threshold for a small business. Accordingly, we conclude that, in 
general, DBS service is provided only by large firms.

[[Page 16003]]

    25. Open Video Services. Open Video Service (OVS) systems provide 
subscription services. The open video system framework was established 
in 1996, and is one of four statutorily recognized options for the 
provision of video programming services by local exchange carriers. The 
OVS framework provides opportunities for the distribution of video 
programming other than through cable systems. Because OVS operators 
provide subscription services, OVS falls within the SBA small business 
size standard covering cable services, which is ``Wired 
Telecommunications Carriers.'' The SBA has developed a small business 
size standard for this category, which is: All such firms having 1,500 
or fewer employees. To gauge small business prevalence for the OVS 
service, the Commission relies on data currently available from the 
U.S. Census for the year 2012. According to that source, there were 
3,117 firms that in 2012 were Wired Telecommunications Carriers. Of 
these, 3,059 operated with less than 1,000 employees. Based on this 
data, the majority of these firms can be considered small. In addition, 
we note that the Commission has certified some OVS operators, with some 
now providing service. Broadband service providers (BSPs) are currently 
the only significant holders of OVS certifications or local OVS 
franchises. The Commission does not have financial or employment 
information regarding the entities authorized to provide OVS, some of 
which may not yet be operational. Thus, at least some of the OVS 
operators may qualify as small entities. The Commission further notes 
that it has certified approximately 45 OVS operators to serve 116 
areas, and some of these are currently providing service. Affiliates of 
Residential Communications Network, Inc. (RCN) received approval to 
operate OVS systems in New York City, Boston, Washington, DC, and other 
areas. RCN has sufficient revenues to assure that they do not qualify 
as a small business entity. Little financial information is available 
for the other entities that are authorized to provide OVS and are not 
yet operational. Given that some entities authorized to provide OVS 
service have not yet begun to generate revenues, the Commission 
concludes that up to 44 OVS operators (those remaining) might qualify 
as small businesses that may be affected by the rules and policies 
adopted herein.
    26. Satellite Master Antenna Television (SMATV) Systems, also known 
as Private Cable Operators (PCOs). SMATV systems or PCOs are video 
distribution facilities that use closed transmission paths without 
using any public right-of-way. They acquire video programming and 
distribute it via terrestrial wiring in urban and suburban multiple 
dwelling units such as apartments and condominiums, and commercial 
multiple tenant units such as hotels and office buildings. SMATV 
systems or PCOs are now included in the SBA's broad economic census 
category, ``Wired Telecommunications Carriers,'' which was developed 
for small wireline firms. Under this category, the SBA deems a wireline 
business to be small if it has 1,500 or fewer employees. Census data 
for 2012 indicate that in that year there were 3,117 firms operating 
businesses as wired telecommunications carriers. Of that 3,117, 3,059 
operated with 999 or fewer employees. Based on this data, we estimate 
that a majority of operators of SMATV/PCO companies were small under 
the applicable SBA size standard.
    27. Television Broadcasting. This Economic Census category 
``comprises establishments primarily engaged in broadcasting images 
together with sound.'' These establishments operate television 
broadcast studios and facilities for the programming and transmission 
of programs to the public. These establishments also produce or 
transmit visual programming to affiliated broadcast television 
stations, which in turn broadcast the programs to the public on a 
predetermined schedule. Programming may originate in their own studio, 
from an affiliated network, or from external sources. The SBA has 
created the following small business size standard for such businesses: 
Those having $41.5 million or less in annual receipts. The 2012 
Economic Census reports that 751 firms in this category operated in 
that year. Of this number, 656 had annual receipts of less than $25 
million, 25 had annual receipts ranging from $25 million to 
$49,999,999, and 70 had annual receipts of $50 million or more. Based 
on this data we therefore estimate that the majority of commercial 
television broadcasters are small entities under the applicable SBA 
size standard.
    28. Additionally, the Commission has estimated the number of 
licensed commercial television stations to be 1,380. Of this total, 
1,267 stations (or 91.8%) had revenues of $41.5 million or less in 
2018, according to Commission staff review of the BIA Kelsey Inc. Media 
Access Pro Television Database (BIA) on December 9, 2019, and therefore 
these licensees qualify as small entities under the SBA definition. In 
addition, the Commission estimates the number of licensed noncommercial 
educational (NCE) television stations to be 380. The Commission does 
not compile and does not have access to information on the revenue of 
NCE stations that would permit it to determine how many such stations 
would qualify as small entities.
    29. We note, however, that in assessing whether a business concern 
qualifies as ``small'' under the above definition, business (control) 
affiliations must be included. Our estimate, therefore, likely 
overstates the number of small entities that might be affected by our 
action, because the revenue figure on which it is based does not 
include or aggregate revenues from affiliated companies. In addition, 
another element of the definition of ``small business'' requires that 
an entity not be dominant in its field of operation. We are unable at 
this time to define or quantify the criteria that would establish 
whether a specific television broadcast station is dominant in its 
field of operation. Accordingly, the estimate of small businesses to 
which rules may apply does not exclude any television station from the 
definition of a small business on this basis and is therefore possibly 
over-inclusive.
    30. There are also 387 Class A stations. Given the nature of these 
services, the Commission presumes that all of these stations qualify as 
small entities under the applicable SBA size standard. In addition, 
there are 1,900 LPTV stations and 3,631 TV translator stations. Given 
the nature of these services as secondary and in some cases purely a 
``fill-in'' service, we will presume that all of these entities qualify 
as small entities under the above SBA small business size standard.
    31. Description of Reporting, Recordkeeping, and Other Compliance 
Requirements for Small Entities. As discussed above, this Report and 
Order takes additional steps to update certain notice provisions in 
part 76 of the Commission's rules governing multichannel video and 
cable television service. The existing rules require that cable 
operators and other MVPDs provide certain written notices to broadcast 
stations by paper delivery, such as mail, certified mail, or, in some 
instances, hand delivery. The Report and Order revises the Commission's 
rules to require that cable operators and DBS providers distribute 
these notices to broadcast television stations electronically via 
email. After July 31, 2020, cable operators and DBS providers must 
deliver required notices to full-power and Class A television stations 
electronically via email to the inbox that the station designates for 
carriage-related questions in its OPIF. Similarly, notices to LPTV 
stations must be

[[Page 16004]]

delivered to the email address listed for the licensee (not a contact 
representative, if different from the licensee) in LMS, and notices to 
qualified NCE translator stations must be delivered to the email 
address listed for the licensee (not a contact representative, if 
different from the licensee) in LMS or alternatively the primary 
station's carriage-related email address, if the translator station 
does not have its own email address listed in LMS.
    32. Steps Taken To Minimize Significant Economic Impact on Small 
Entities and Significant Alternatives Considered. The RFA requires an 
agency to describe any significant alternatives that it has considered 
in reaching its proposed approach, which may include the following four 
alternatives (among others): (1) The establishment of differing 
compliance or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance and 
reporting requirements under the rule for such small entities; (3) the 
use of performance, rather than design standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    33. Through this Report and Order, the Commission takes steps to 
minimize the administrative burden on MVPDs, including small entities, 
by transitioning from paper to electronic delivery of certain notices 
to broadcast television stations, which will reduce the costs and 
burdens of providing such notices. The Commission has found that 
electronic delivery of notices would greatly ease the burden of 
complying with notification requirements for cable operators and DBS 
providers, including small entities. The Commission previously sought 
comment on other potential alternative means of delivering notices that 
might better serve the needs of broadcasters and MVPDs, including small 
entities, but still be less burdensome than sending notices by paper 
delivery, such as mail, certified mail, or, in some instances, hand 
delivery. Commenters, including those representing smaller entities, 
unanimously support transitioning the notices from paper to electronic 
delivery.

Ordering Clauses

    34. Accordingly, it is ordered that, pursuant to the authority 
found in sections 1, 4(i), 4(j), 303(r), 338, 340, 614, 615, and 653 of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 
154(j), 303(r), 338, 340, 534, 535, and 573, this Report and Order is 
adopted.
    35. It is further ordered that, pursuant to the authority found in 
sections 1, 4(i), 4(j), 303(r), 338, 340, 614, 615, and 653 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 
303(r), 338, 340, 534, 535, and 573, the Commission's rules are amended 
as set forth in the Final Rules. These rules contain new or modified 
information collection requirements that require approval by the Office 
of Management and Budget (OMB) under the Paperwork Reduction Act and 
will become effective April 20, 2020. Compliance will not be required 
until after the Commission publishes a document in the Federal Register 
announcing OMB approval and the relevant compliance date.
    36. 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).
    37. It is further ordered that, should no petitions for 
reconsideration or petitions for judicial review be timely filed, MB 
Docket No. 19-165 shall be terminated and its docket closed.

List of Subjects

47 CFR Part 74

    Communications equipment, Education, radio, Reporting and 
recordkeeping requirements, Research, Television.

47 CFR Part 76

    Administrative practice and procedure, Cable television, 
Communications, Equal employment opportunity, Internet, Political 
candidates, Reporting and recordkeeping requirements, 
Telecommunications.

Federal Communications Commission.
Marlene Dortch,
Secretary.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR parts 74 and 76 as follows:

PART 74--EXPERIMENTAL RADIO, AUXILIARY, SPECIAL BROADCAST AND OTHER 
PROGRAM DISTRIBUTIONAL SERVICES

0
1. The authority for part 74 continues to read as follows:

    Authority: 47 U.S.C. 154, 302a, 303, 307, 309, 310, 336 and 554.


0
2. Add Sec.  74.779 to read as follows:


Sec.  74.779  Electronic delivery of notices to LPTV stations.

    In accordance with Sec.  76.1600 of this title, beginning July 31, 
2020, each licensee of a low power television station or noncommercial 
educational translator station that is entitled to notices under Sec.  
76.64(k), Sec.  76.1601, Sec.  76.1607, or Sec.  76.1617 of this title 
shall receive such notices via email to the licensee's email address 
(not a contact representative's email address, if different from the 
licensee's email address) as displayed publicly in the Commission's 
Licensing and Management System (LMS), or the primary station's 
carriage-related email address if the noncommercial educational 
translator station does not have its own email address listed in LMS. 
Licensees are responsible for the continuing accuracy and completeness 
of this information.


Sec.  74.799  [Transferred from Subpart H to Subpart G]

0
3. Transfer Sec.  74.799 from subpart H to subpart G.

PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE

0
4. The authority 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.


0
5. Amend Sec.  76.54 by revising paragraph (e) to read as follows:


Sec.  76.54  Significantly viewed signals; method to be followed for 
special showings.

* * * * *
    (e) Satellite carriers that intend to retransmit the signal of a 
significantly viewed television broadcast station to a subscriber 
located outside such station's local market, as defined by Sec.  
76.55(e), must provide written notice to all television broadcast 
stations that are assigned to the same local market as the intended 
subscriber at least 60 days before commencing retransmission of the 
significantly viewed station. Such satellite carriers must also provide 
the notifications described in Sec.  76.66(d)(5)(i). Except as provided 
in this paragraph (e), such written notice must be sent via certified 
mail, return receipt requested, to the address for such station(s) as 
listed in the consolidated database maintained by the Federal 
Communications Commission. After July 31, 2020, such written notice 
must be delivered to

[[Page 16005]]

stations electronically in accordance with Sec.  76.66(d)(2)(ii).
* * * * *

0
6. Amend Sec.  76.64 by revising paragraph (k) to read as follows:


Sec.  76.64  Retransmission consent.

* * * * *
    (k) A cable system commencing new operation is required to notify 
all local commercial and noncommercial broadcast stations of its intent 
to commence service. The cable operator must send such notification, by 
certified mail except as provided in this paragraph (k), at least 60 
days prior to commencing cable service. After July 31, 2020, the cable 
operator must send such notification by electronic delivery in 
accordance with Sec.  76.1600. Commercial broadcast stations must 
notify the cable system within 30 days of the receipt of such notice of 
their election for either must-carry or retransmission consent with 
respect to such new cable system. If the commercial broadcast station 
elects must-carry, it must also indicate its channel position in its 
election statement to the cable system. Such election shall remain 
valid for the remainder of any three-year election interval, as 
established in paragraph (f)(2) of this section. Noncommercial 
educational broadcast stations should notify the cable operator of 
their request for carriage and their channel position. The new cable 
system must notify each station if its signal quality does not meet the 
standards for carriage and if any copyright liability would be incurred 
for the carriage of such signal. Pursuant to Sec.  76.57(e), a 
commercial broadcast station which fails to respond to such a notice 
shall be deemed to be a must-carry station for the remainder of the 
current three-year election period.
* * * * *

0
7. Amend Sec.  76.66 by revising paragraphs (d)(1)(vi) introductory 
text and (d)(2)(ii), (v), and (vi), (d)(3)(iv), (d)(5)(i) introductory 
text, (f)(3) and (4), and (h)(5) to read as follows:


Sec.  76.66  Satellite broadcast signal carriage.

* * * * *
    (d) * * *
    (1) * * *
    (vi) Within 30 days of receiving a television station's carriage 
request, and subject to paragraph (d)(2)(ii) of this section, a 
satellite carrier shall notify in writing:
* * * * *
    (2) * * *
    (ii) Except as provided in this paragraph (d)(2)(ii), satellite 
carriers shall transmit the notices required by paragraph (d)(2)(i) of 
this section via certified mail to the address for such television 
station licensee listed in the consolidated database system maintained 
by the Commission. After July 31, 2020, the written notices required by 
paragraphs (d)(1)(vi), (d)(2)(i), (v), and (vi), (d)(3)(iv), (d)(5)(i), 
(f)(3) and (4), and (h)(5) of this section shall be delivered 
electronically via email to the email address for carriage-related 
questions that the station lists in its public file in accordance with 
Sec. Sec.  73.3526 and 73.3527 of this title.
* * * * *
    (v) Within 30 days of receiving a local television station's 
election of mandatory carriage in a new television market, a satellite 
carrier shall notify in writing those local television stations it will 
not carry, along with the reasons for such decision, and those local 
television stations it intends to carry. After July 31, 2020, the 
written notices required by this paragraph (d)(2)(v) shall be delivered 
to stations electronically in accordance with paragraph (d)(2)(ii) of 
this section.
    (vi) Satellite carriers shall notify all local stations in a market 
of their intent to launch HD carry-one, carry-all in that market at 
least 60 days before commencing such carriage. After July 31, 2020, the 
written notices required by this paragraph (d)(2)(vi) shall be 
delivered to stations electronically in accordance with paragraph 
(d)(2)(ii) of this section.
* * * * *
    (3) * * *
    (iv) Within 30 days of receiving a new television station's 
election of mandatory carriage, a satellite carrier shall notify the 
station in writing that it will not carry the station, along with the 
reasons for such decision, or that it intends to carry the station. 
After July 31, 2020, the written notices required by this paragraph 
(d)(3)(iv) shall be delivered to stations electronically in accordance 
with paragraph (d)(2)(ii) of this section.
    (5) * * *
    (i) Beginning with the election cycle described in paragraph (c)(2) 
of this section, the retransmission of significantly viewed signals 
pursuant to Sec.  76.54 by a satellite carrier that provides local-
into-local service is subject to providing the notifications to 
stations in the market pursuant to paragraphs (d)(5)(i)(A) and (B) of 
this section, unless the satellite carrier was retransmitting such 
signals as of the date these notifications were due. After July 31, 
2020, the written notices required by this paragraph (d)(5)(i) shall be 
delivered to stations electronically in accordance with paragraph 
(d)(2)(ii) of this section.
* * * * *
    (f) * * *
    (3) Except as provided in paragraph (d)(2) of this section, a 
satellite carrier providing local-into-local service must notify local 
television stations of the location of the receive facility by June 1, 
2001 for the first election cycle and at least 120 days prior to the 
commencement of all election cycles thereafter. After July 31, 2020, 
the written notices required by this paragraph (f)(3) shall be 
delivered to stations electronically in accordance with paragraph 
(d)(2)(ii) of this section.
    (4) A satellite carrier may relocate its local receive facility at 
the commencement of each election cycle. A satellite carrier is also 
permitted to relocate its local receive facility during the course of 
an election cycle, if it bears the signal delivery costs of the 
television stations affected by such a move. A satellite carrier 
relocating its local receive facility must provide 60 days notice to 
all local television stations carried in the affected television 
market. After July 31, 2020, the written notices required by this 
paragraph (f)(4) shall be delivered to stations electronically in 
accordance with paragraph (d)(2)(ii) of this section.
* * * * *
    (h) * * *
    (5) A satellite carrier shall provide notice to its subscribers, 
and to the affected television station, whenever it adds or deletes a 
station's signal in a particular local market pursuant to this 
paragraph (h)(5). After July 31, 2020, the required notice to the 
affected television station shall be delivered to the station 
electronically in accordance with paragraph (d)(2)(ii) of this section.
* * * * *

0
8. Amend Sec.  76.1600 by adding paragraph (e) to read as follows:


Sec.  76.1600  Electronic delivery of notices.

* * * * *
    (e) After July 31, 2020, written information provided by cable 
operators to broadcast stations pursuant to Sec. Sec.  76.64(k), 
76.1601, 76.1607, 76.1608, 76.1609, and 76.1617 must be delivered 
electronically to full-power and Class A television stations via email 
to the email address for carriage-related questions that the station 
lists in its public file in accordance with Sec. Sec.  73.3526 and 
73.3527 of this title, or in the case of low power television stations 
and noncommercial educational translator stations that are entitled to 
such notices, to the licensee's email address (not a contact 
representative's email address, if

[[Page 16006]]

different from the licensee's email address) as displayed publicly in 
the Licensing and Management System (LMS) or the primary station's 
carriage-related email address if the noncommercial educational 
translator station does not have its own email address listed in LMS.

0
9. Revise Sec.  76.1607 to read as follows:


Sec.  76.1607  Principal headend.

    A cable operator shall provide written notice to all stations 
carried on its system pursuant to the must-carry rules in this subpart 
at least 60 days prior to any change in the designation of its 
principal headend. Such written notice shall be provided by certified 
mail, except that after July 31, 2020, notice shall be provided to 
stations by electronic delivery in accordance with Sec.  76.1600.

0
10. Revise Sec.  76.1608 to read as follows:


Sec.  76.1608  System technical integration requiring uniform election 
of must-carry or retransmission consent status.

    A cable system that changes its technical configuration in such a 
way as to integrate two formerly separate cable systems must give 90 
days notice of its intention to do so to any television broadcast 
stations that have elected must-carry status with respect to one system 
and retransmission consent status with respect to the other. After July 
31, 2020, such notice shall be delivered to stations electronically in 
accordance with Sec.  76.1600. If the system and the station do not 
agree on a uniform election 45 days prior to integration, the cable 
system may require the station to make such a uniform election 30 days 
prior to integration.

0
11. Revise Sec.  76.1609 to read as follows:


Sec.  76.1609  Non-duplication and syndicated exclusivity.

    Within 60 days following the provision of service to 1,000 
subscribers, the operator of each such system shall file a notice to 
that effect with the Commission, and serve a copy of that notice on 
every television station that would be entitled to exercise network 
non-duplication protection or syndicated exclusivity protection against 
it. After July 31, 2020, in lieu of serving paper copies on stations, 
the operator shall provide the required copies to stations by 
electronic delivery in accordance with Sec.  76.1600.

0
12. Amend Sec.  76.1617 by revising paragraphs (a) and (c) to read as 
follows:


Sec.  76.1617   Initial must-carry notice.

    (a) Within 60 days of activation of a cable system, a cable 
operator must notify all qualified NCE stations of its designated 
principal headend by certified mail, except that after July 31, 2020, 
notice shall be provided by electronic delivery in accordance with 
Sec.  76.1600.
* * * * *
    (c) Within 60 days of activation of a cable system, a cable 
operator must send a copy of a list of all broadcast television 
stations carried by its system and their channel positions to all local 
commercial and noncommercial television stations, including those not 
designated as must-carry stations and those not carried on the system. 
Such written information shall be provided by certified mail, except 
that after July 31, 2020, such information shall be provided by 
electronic delivery in accordance with Sec.  76.1600.

[FR Doc. 2020-05478 Filed 3-19-20; 8:45 am]
BILLING CODE 6712-01-P