In the Matter of Electronic Delivery of MVPD Communications; Modernization of Media Regulation Initiative, 22646-22652 [2020-07759]
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Federal Register / Vol. 85, No. 79 / Thursday, April 23, 2020 / Rules and Regulations
businesses through, among other things,
the many free resources the Commission
provides to potential auction
participants. Consistent with the past
practices in prior auctions, small
entities that are potential participants
will have access to detailed educational
information and Commission personnel
to help guide their participation in
Auction 105, which should alleviate any
need to hire professionals. More
specifically, small entities and other
auction participants may seek
clarification of or guidance on
complying with competitive bidding
rules and procedures, reporting
requirements, and using the bidding
system. Additionally, an FCC Auctions
Hotline will provide to small entities
one-on-one access to Commission staff
for information about the auction
process and procedures. Further, the
FCC Auctions Technical Support
Hotline is another resource that
provides technical assistance to
applicants, including small business
entities, on issues such as access to or
navigation within the electronic FCC
Form 175 and use of the bidding system.
Small entities and other would-be
participants will also be provided with
various materials on the pre-bidding
process in advance of the short-form
application filing window, which
includes step-by-step instructions on
how to complete FCC Form 175. In
addition, small entities will have access
to the web-based, interactive online
tutorials produced by Commission staff
to familiarize themselves with auction
procedures, filing requirements, bidding
procedures, and other matters related to
an auction.
229. Various databases and other
sources of information, including the
Auctions program websites and copies
of Commission decisions, are available
to the public without charge, providing
a low-cost mechanism for small
businesses to conduct research prior to
and throughout the auction. Prior to and
at the close of Auction 105, the
Commission will post public notices on
the Auctions website, which articulate
the procedures and deadlines for the
auction. The Commission will make this
information easily accessible and
without charge to benefit all Auction
105 applicants, including small entities,
thereby lowering their administrative
costs to comply with the Commission’s
competitive bidding rules.
230. Eligible bidders will be given an
opportunity to become familiar with
auction procedures and the bidding
system by participating in a mock
auction. Eligible bidders will have
access to a user guide for the bidding
system, bidding file formats, and an
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online bidding procedures tutorial in
advance of the mock auction. Further,
the Commission intends to conduct
Auction 105 electronically over the
internet using a web-based auction
system that eliminates the need for
small entities and other bidders to be
physically present in a specific location.
These mechanisms are made available
to facilitate participation in Auction 105
by all eligible bidders and may result in
significant cost savings for small entities
that use these alternatives. Moreover,
the adoption of bidding procedures in
advance of the auction, consistent with
statutory directive, is designed to ensure
that the auction will be administered
predictably and fairly for all
participants, including small
businesses.
231. Another step taken to minimize
the economic impact for small entities
participating in Auction 105 is the
Commission’s adoption of bidding
credits for small businesses. In
accordance with the service rules
applicable to the PALs to be offered in
Auction 105, bidding credit discounts
will be available to eligible small
businesses and small business
consortiums on the following basis: (1)
A bidder with attributed average annual
gross revenues that do not exceed $55
million for the preceding three years is
eligible to receive a 15% discount on its
winning bid or (2) a bidder with
attributed average annual gross revenues
that do not exceed $20 million for the
preceding three years is eligible to
receive a 25% discount on its winning
bid. Eligible applicants can receive only
one of the available bidding credits—not
both.
232. The total amount of bidding
credit discounts that may be awarded to
an eligible small business is capped at
$25 million. The Commission adopts a
$10 million cap on the overall amount
of bidding credits that any winning
small business bidder may apply to
winning licenses in counties located
within any PEA with a population of
500,000 or less. Based on the technical
characteristics of the 3550–3650 MHz
band and the Commissions analysis of
past auction data, the Commission
anticipates that the caps will allow the
majority of small businesses to take full
advantage of the bidding credit program,
thereby lowering the relative costs of
participation for small businesses.
233. These procedures for the conduct
of Auction 105 constitute the more
specific implementation of the
competitive bidding rules contemplated
by Parts 1 and 96 of the Commission’s
rules and the underlying rulemaking
orders, including the 2015 3.5 GHz
Report and Order and the 2018 3.5 GHz
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Report and Order, and relevant
competitive bidding orders, and are
fully consistent therewith.
234. Report to Congress. The
Commission will send a copy of the
Auction 105 Procedures Public Notice,
including the Supplemental FRFA, in a
report to Congress pursuant to the
Congressional Review Act. In addition,
the Commission will send a copy of the
Auction 105 Procedures Public Notice,
including the Supplemental FRFA to
the Chief Counsel for Advocacy of the
SBA. A copy of the Auction 105
Procedures Public Notice, and
Supplemental FRFA (or summaries
thereof), will also be published in the
Federal Register.
Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer.
[FR Doc. 2020–07584 Filed 4–22–20; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 76
[MB Docket Nos. 17–317 and 17–105; FCC
20–14; FRS 16589]
In the Matter of Electronic Delivery of
MVPD Communications; Modernization
of Media Regulation Initiative
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
In this final rule document,
we adopt proposals to modernize the
Commission’s carriage election notice
rules with respect to certain television
broadcast stations and open video
systems (OVS) operators. First, we
conclude that low power television
stations (LPTVs) that qualify for
mandatory carriage (qualified LPTVs)
must send notices to affected
multichannel video programming
distributors (MVPDs) by email when
changing their carriage election status in
the same manner as full power
television broadcast stations. However,
unlike the requirement for full power
television broadcast stations, qualified
LPTVs and noncommercial educational
(NCE) television translator stations that
qualify for must carry (qualified NCE
translators) will not be required to make
their carriage election statements
available for public inspection. Second,
we find that MVPDs with carriagerelated questions should be able to rely
on the contact information provided by
qualified LPTV and qualified NCE
translator stations in the Commission’s
Licensing and Management System
SUMMARY:
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(LMS) database. If an MVPD contacts
the phone number or email address
provided by the station regarding a
concern about carriage, those concerns
must be addressed as soon as is
reasonably possible. Third, we conclude
that, in the same manner as cable
operators, OVS operators must post
contact information for questions
regarding carriage election to the Cable
Operations and Licensing System
(COALS) database, accept email election
change notices, and timely respond to
carriage-related questions. Through this
Order, we continue our efforts to
modernize our rules.
DATES: Effective May 26, 2020, except
for amendatory instruction 2.b.
(§ 76.64(h)(5)) which shall become
effective after the Commission publishes
a document in the Federal Register
announcing the relevant effective date.
FOR FURTHER INFORMATION CONTACT: Kim
Matthews, Media Bureau, Policy
Division, 202–418–2154, or email at
kim.matthews@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Report
and Order, FCC 20–14, adopted on
February 25, 2020 and released on
February 25, 2020. The full text of this
document is available for public
inspection and copying during regular
business hours in the FCC Reference
Center, Federal Communications
Commission, 445 12th Street SW, Room
CY–A257, Washington, DC 20554. This
document will also be available via
ECFS at https://fjallfoss.fcc.gov/ecfs/.
Documents will be available
electronically in ASCII, Microsoft Word,
and/or Adobe Acrobat. Alternative
formats are available for people with
disabilities (Braille, large print,
electronic files, audio format), by
sending an email to fcc504@fcc.gov or
calling the Commission’s Consumer and
Governmental Affairs Bureau at (202)
418–0530 (voice), (202) 418–0432
(TTY).
Paperwork Reduction Act of 1995
Analysis
This Report and Order 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 will be 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
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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.
Summary of Report and Order
1. Under the Communications Act of
1934, as amended (the Act), full power
television broadcast stations, and
certain low power stations and
translator stations, are entitled to
mandatory carriage of their signal (also
known as ‘‘must carry’’) on any cable
system located within their local
market. Alternatively, commercial
television broadcast stations with
carriage rights may elect
‘‘retransmission consent.’’ If the
broadcaster and MVPD cannot reach an
agreement under which the broadcaster
gives consent for retransmission of its
signal, the MVPD is prohibited from
carrying that signal. Thus, commercial
stations are presented with a carriage
choice—elect mandatory carriage and
forego compensation while assuring
carriage, or elect retransmission consent
and forego assured carriage while
retaining the possibility of
compensation for carriage. NCE stations
are entitled to must carry but cannot
elect retransmission consent.
2. As discussed more fully in the 2019
Report and Order in this proceeding, 84
FR 45659 (Aug. 30, 2019), when the
Commission implemented the statutory
provisions establishing the must carry/
retransmission consent regime, it
adopted a requirement that each
commercial television broadcast station
provide notice to every cable operator
every three years electing either
mandatory carriage or retransmission
consent. Prior to the adoption of the
2019 Report and Order, the rules
directed each commercial television
broadcast station to send a triennial
carriage election notice, via certified
mail, to each cable system or DBS
provider serving its market, and
directed each NCE station to send such
notices to DBS providers. The notice
must state whether the station has
elected mandatory carriage or
retransmission consent. In addition, the
rules generally also require stations to
place triennial carriage election
statements in their online public
inspection files, to the extent they
maintain such files.
3. The 2019 Report and Order
generally adopted an approach for
modernizing the carriage election notice
process that was jointly recommended
by the National Association of
Broadcasters (NAB) and NCTA—the
internet and Television Association
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(NCTA). The Commission’s revised
carriage election rules adopted therein
apply to all television broadcast stations
with mandatory carriage rights and to
all MVPDs responsible for that carriage,
except for the relatively few entities that
participate in the must carry regime but
do not use the online public file or
COALS (the Excluded Entities). Under
the new carriage election framework,
broadcast stations are required to make
their carriage elections by uploading
those elections to their online public
files and by providing a separate
electronic notice of those elections to
relevant MVPDs only when and if they
change their election from the previous
election period. Thus, only a limited
number of notices will need to be sent
to MVPDs and these will be sent via
email instead of via paper mail. In
addition, the 2019 Report and Order
requires broadcast stations and DBS
providers to upload to their online
public files both an email address and
a phone number for purposes of
carriage-related inquiries and requires
cable operators to upload the same
information in COALS.
4. The rules adopted in the 2019
Report and Order require use of the
Commission’s online public inspection
file and/or COALS. In the further notice
of proposed rulemaking (FNPRM), 84
FR 45703 (Aug. 30, 2019) (2019
FNPRM), accompanying the 2019 Report
and Order, we sought comment on
whether and how the modernized
framework adopted in the 2019 Report
and Order should extend to the
Excluded Entities, which are subject to
the must carry regime and do not use
these Commission databases. Among
other things, the Commission asked
whether we should require the
Excluded Entities to establish and
maintain a very narrow public file
solely for carriage-related information or
require them to post any required
information on a company website. We
also sought comment on whether we
should, alternatively, simply maintain
the status quo with respect to the small
number of Excluded Entities.
5. The Commission received only
three comments in response to the 2019
FNPRM. All agree that the Excluded
Entities should be transitioned to
modernized carriage election rules and
that any information these entities are
required to provide should be posted on
a Commission website or Commissionhosted database. All commenters
support placing carriage election
information in a centralized,
Commission-established location rather
than on company websites. NCTA
contends that many non-Class A LPTV
stations and qualified NCE translator
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stations do not maintain company
websites, and a centralized repository
would make it easier for MVPDs to
locate carriage information for these
entities. All commenters also agree that
the Excluded Entities should make
public contact information for use for
carriage-related communications, and
ACA Connects and NCTA also argue
that the Excluded Entities should
provide any required election
statements or notices to the Commission
to be made available on a Commission
website or database.
6. We adopt a carriage election
notification approach for the Excluded
Entities that is supported by the record
in this proceeding and that is, to the
greatest extent possible, consistent with
that adopted in the 2019 Report and
Order, while recognizing the specific
circumstances of these smaller entities.
Specifically, we will require qualified
LPTV stations to use the same process
as full power television stations to
notify MVPDs of any change in carriage
election status. Rather than imposing a
new public file obligation on qualified
LPTV and qualified NCE translator
stations, however, we require that they
send a single ‘‘baseline’’ notice via
email to MVPDs on which they will be
seeking or expecting carriage in the
2021–2023 carriage cycle, even if they
are making no change in their election
status. We disagree with NCTA’s and
ACA Connects’ contention that we
should require the Excluded Entities to
post election statements online each
cycle in addition to sending election
notices by email to MVPDs in the event
of an election change. Qualified LPTV
and qualified NCE translator stations are
not currently required to make their
election notices available to the public.
We believe that the better approach is to
maintain the status quo rather than
impose a new public posting obligation
that would increase burdens on these
entities. Specifically, we believe that the
creation of the proposed new database
would impose unnecessary costs and
inject unnecessary complexity into the
election notice process.
7. In addition, we find that MVPDs
with carriage-related questions must be
able to rely on the contact information
provided by these stations in LMS. We
also require both qualified LPTV and
qualified NCE translator stations to
respond as soon as is reasonably
possible to such questions. With respect
to OVS, we require that they accept
emailed election change notices, post
contact information in COALS, and
respond as soon as is reasonably
possible to carriage election
notifications and carriage-related
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questions, all in exactly the same
manner as cable systems.
8. We agree with NCTA that the
carriage election framework adopted in
the 2019 Report and Order ‘‘greatly
reduces administrative burdens’’ for
stations and MVPDs by, among other
changes, only requiring email notice of
changed elections and eliminating
redundant election notifications and
carriage requests. As we stated in the
2019 Report and Order, our goal is to
have a unified approach for carriage
election notices, to the extent possible,
to best serve the public interest and
enhance administrative efficiency.
Therefore, today we extend the benefits
of the new carriage election framework
to the Excluded Entities as well.
9. Consistent with our approach to
commercial television broadcast
stations, we require a qualified LPTV
station that changes its carriage election
to send an election change notice to
each affected MVPD’s carriage electionspecific email address by the carriage
election deadline. Such change notices
must include, with respect to each
station covered by the notice: The
station’s call sign, the station’s
community of license, the DMA where
the station is located, the specific
change being made in election status,
and an email address and phone
number for carriage-related questions.
Consistent with our approach with
respect to commercial full power
broadcast stations, LPTV notices to
cable operators need to identify specific
cable systems for which a carriage
election applies only if the broadcaster
changes its election for some systems of
the cable operator but not all. In
addition, the broadcaster must carbon
copy ElectionNotices@FCC.gov, the
Commission’s election notice
verification email inbox, when sending
its carriage elections to MVPDs. As
noted in the 2019 Report and Order, this
election notice verification email inbox
will provide a verification response to
assure broadcasters that the email has
been received.
10. As with commercial full power
broadcast stations, if an LPTV station
does not receive a response verifying
receipt of its change notice by the
MVPD, or gets an indication that the
message was not delivered, it must
contact the MVPD via the provided
phone number to confirm that the notice
was received or arrange for it to be
redelivered. If the email is timely and
properly sent to the MVPD’s listed
address, but the broadcast station
receives no verification and is unable to
reach anyone at the provided phone
number, the notice still will be
considered to have been properly
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delivered if it was properly copied to
the Commission’s election verification
notice email inbox.
11. Unlike commercial full power
broadcast stations, qualified LPTV
stations need not maintain a publicly
accessible copy of their carriage election
notices or statements. As noted above,
LPTV stations are not currently required
to maintain a public file with copies of
their carriage election notices, and we
decline to impose a new obligation in
that regard in this proceeding. Rather
than imposing a new public file
requirement, however, we require all
qualified LPTV stations, whether being
carried pursuant to must carry or
retransmission consent, to send an
email notice to all MVPDs that are or
will be carrying the station no later than
the next carriage election deadline of
October 1, 2020. Qualified LPTVs must
do so even if they are not changing their
carriage status from the current election
cycle. This one-time notification
requirement for all qualified LPTV
stations will give MVPDs baseline
information regarding qualified LPTV
stations without imposing a new
obligation on qualified LPTVs to make
their election status publicly available.
In addition, requiring a one-time filing
of ‘‘baseline information’’ does not
impose any greater burden on LPTV or
NCE translator stations given that, under
the current rules, such entities would be
required to file a paper copy of their
election notification with each affected
MVPD.
12. As noted above, qualified NCE
stations may only request mandatory
carriage and are not permitted to ‘‘elect’’
retransmission consent on any MVPD.
Once an NCE station requests
mandatory carriage from an MVPD, the
carriage request continues, absent a
change in circumstances. We therefore
do not require qualified NCE translator
stations to send election change
notifications. In addition, similar to our
approach herein with respect to
qualified LPTV stations, rather than
impose new public file obligations on
qualified NCE translator stations, we
require qualified NCE translator stations
to provide email notice to all MVPDs
that are or will be carrying the translator
no later than the next carriage election
deadline of October 1, 2020. As with
qualified LPTV stations, this one-time
notification requirement for all qualified
NCE translators will give MVPDs
baseline information regarding these
entities without imposing a new
obligation on them to make their
election status publicly available.
13. Each licensed broadcast station,
including LPTV and translator stations,
has a publicly-accessible entry in LMS
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with a field for contact information
which can be updated easily. Therefore,
in the absence of public file
requirements for qualified LPTV and
NCE translator stations, we find that
MVPDs with carriage-related concerns
must be able to rely upon the contact
information that the LPTV or NCE
translator station provides in LMS. As
all licensed stations already have
accounts in LMS, we conclude that it is
more efficient and less burdensome to
simply require that qualified LPTV and
NCE translator stations maintain current
contact information in LMS so that
MVPDs can contact the station regarding
carriage-related questions as necessary.
We require qualified LPTV stations and
encourage qualified NCE translator
stations to review and, if necessary,
provide contact information or update
the existing contact information in LMS
no later than July 31, 2020,
approximately 60 days prior to the 2020
carriage election deadline, and to ensure
that this information remains current
thereafter. We will not establish a
separate field in LMS for carriagespecific contact information for
qualified LPTV and NCE translator
stations, but require that these stations
ensure that the general contact
information in LMS can be used by
MVPDs as a point of contact for
carriage-related questions. If a station
has designated a third party as contact
representative or designates multiple
types of contact representatives in LMS,
questions should be directed to the
licensee’s email address rather than a
contact representative’s email address
(if different from the licensee’s email
address). Qualified LPTV and NCE
translator stations must ensure that, if
an MVPD contacts the station via the
licensee’s phone or email address
contained in LMS, that this carriagerelated concern is addressed as soon as
is reasonably possible.
14. In the 2019 FNPRM, we sought
comment on applying the revised
carriage election framework to MVPDs
that do not use COALS or OPIF,
identifying OVS specifically. OVS
providers, however, are in fact required
to establish and maintain an up-to-date
COALS account in the same manner as
cable operators. We therefore impose
requirements on OVS operators that are
identical to those in the 2019 Report
and Order for cable operators. OVS
operators must provide, via COALS, a
specific carriage election email address
where broadcasters will send election
change notices and a phone number for
broadcasters to use in the event of
questions as to whether the OVS
operator received the station’s election
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notice. OVS operators must post
carriage contact information to COALS
by July 31, 2020, and maintain up-todate contact information at all times
thereafter. Each OVS operator must have
a single email address and phone
number for carriage issues, regardless of
the number of markets served. Finally,
like other entities subject to the must
carry regime, OVS operators are
required to respond as soon as is
reasonably possible to carriage
questions from broadcasters.
15. Again like cable operators, OVS
operators must verify receipt of an
emailed election change notice, via
email sent back to the originating
address, as soon as is reasonably
possible. As we concluded in the 2019
Report and Order, this email response
will serve only as verification that the
notice email was received; it will not
constitute a statement that the
broadcaster has fully satisfied its notice
obligation. Although we anticipate that
these verification emails will be
generated automatically in most cases,
we require only that they be sent as
soon as is reasonably possible. A timely
and correct notice of a change in
election that is sent to the email address
provided by the OVS operator, carbon
copied to ElectionNotices@FCC.gov, and
placed in the station’s public file (if the
station has a public file obligation) must
be honored by the MVPD.
16. We find that requiring OVS
operators to use their existing COALS
accounts is the most efficient and least
burdensome way for OVS operators to
publicize their contact information for
this purpose. Maintaining contact
information for carriage-related
questions for all OVS operators in the
COALS database will also assist
broadcasters and others who need
information regarding all MVPDs
operating in a given geographic area for
carriage purposes. We also note that
§ 76.1506(l) of our rules provides that
the requirements in § 76.64 regarding
the delivery of must carry/
retransmission consent election
notifications apply to OVS operators.
The 2019 Report and Order revised
§ 76.64 of our rules to require cable
operators to provide an up-to-date email
address for carriage election notice
submissions no later than July 31, 2020,
to ensure that the information remains
up-to-date, and to respond to questions
from broadcasters as soon as is
reasonably possible. We conclude that
these existing requirements also apply
to OVS operators.
17. Similar to our approach in the
2019 Report and Order, we apply these
revised notification requirements to
LPTV and NCE translator stations and
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OVS operators beginning with the 2020
election for the 2021–2023 carriage
election cycle. Therefore, qualified
LPTV broadcasters must email required
notifications to MVPDs by October 1,
2020. Qualified LPTV and NCE
translator stations must also ensure that
the contact information for the station in
LMS is accurate no later than July 31,
2020, and OVS operators must ensure
that their carriage-related contact
information in COALS is up to date by
the same deadline.
Procedural Matters
A. Final Regulatory Flexibility Analysis
18. As required by the Regulatory
Flexibility Act of 1980 (RFA), an Initial
Regulatory Flexibility Certification was
incorporated into the 2019 FNPRM. The
Federal Communications Commission
(Commission) sought written public
comment on the proposals in the 2019
FNPRM including comment on the
IRFA. We received no comments
specifically directed toward the IRFA.
This Final Regulatory Flexibility
Analysis (FRFA) conforms to the RFA.
1. Need for, and Objectives of, the
Report and Order
19. In this Report and Order, we
adopt proposals to modernize the
Commission’s carriage election notice
rules with respect to certain television
broadcast stations and open video
system (OVS) operators to enhance
administrative efficiency. In so doing,
we adopt requirements largely
consistent with those recently adopted
for full power television broadcast
stations. First, we conclude that low
power television stations (LPTVs) that
qualify for mandatory carriage (qualified
LPTVs) must send notices to affected
multichannel video programming
distributors (MVPDs) by email when
changing their carriage election status,
in the same manner as full power
television broadcast stations. However,
unlike the requirement for full power
television broadcast stations, qualified
LPTVs and noncommercial educational
(NCE) television translator stations that
qualify for must carry (qualified NCE
translators) will not be required to make
their carriage election statements
available for public inspection. Second,
we find that MVPDs with carriagerelated questions should be able to rely
on the contact information provided by
qualified LPTV and qualified NCE
translator stations in the Commission’s
Licensing and Management System
(LMS) database. If an MVPD contacts
the phone number or email address
provided by the station regarding a
concern about carriage, those concerns
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must be addressed as soon as is
reasonably possible. Third, we conclude
that, in the same manner as cable
operators, OVS operators must post
contact information for questions
regarding carriage election to the Cable
Operations and Licensing System
(COALS) database, accept email election
change notices, and timely respond to
carriage-related questions. Through this
Order, we continue our efforts to
modernize our rules.
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2. Summary of Significant Issues Raised
by Public Comments in Response to the
IRFA
20. No comments were filed in
response to the IRFA.
3. Description and Estimate of the
Number of Small Entities To Which the
Proposed Rules Will Apply
21. 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.
22. 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
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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.
23. 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 $38.5 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 $25 million
or less, 25 had annual receipts between
$25 million and $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
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Fmt 4700
Sfmt 4700
television broadcasters are small entities
under the applicable SBA size standard.
24. The Commission estimates that
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.
4. Description of Projected Reporting,
Recordkeeping, and Other Compliance
Requirements
25. The Commission anticipates that
the rule changes adopted in this Report
and Order will lead to an overall
immediate, long-term reduction in
reporting, recordkeeping, and other
compliance requirements for qualified
LPTV stations. Specifically, after the
2020 carriage election, qualified LPTV
stations will be required to send carriage
election notices only when they are
changing their election, will be
permitted to send these notices via
email, and will no longer need to
produce and mail several letters to
MVPDs, many of which are duplicative,
to ensure that they are received by the
MVPD. LPTV and NCE translator
stations are not currently required to
maintain a public file with a copy of
their carriage election notices, and the
Report and Order does not impose a
new obligation in that regard in this
proceeding. In the absence of public file
requirements for qualified LPTV and
NCE translator stations, the Report and
Order permits MVPDs with carriagerelated concerns to rely upon the
contact information provided by the
LPTV or NCE translator station in LMS.
We require qualified LPTV stations, and
encourage qualified NCE translator
stations, to review and, if necessary,
update this contact information in LMS
no later than July 31, 2020,
approximately 60 days prior to the 2020
carriage election deadline, and ensure
that this information remains current
thereafter. Qualified LPTV and NCE
translator stations must ensure that, if
an MVPD contacts the station via the
phone or email address they have
provided in LMS because it has
concerns regarding carriage, the station
will respond to those concerns as soon
as is reasonably possible.
26. With respect to OVS operators, the
Report and Order imposes no burdens
beyond those imposed in the 2019
Report and Order. As with cable
operators, broadcasters will send
carriage election notifications to OVS
operators via email rather than on
paper, which will ease the
administrative burden of reviewing
these notifications, which were
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lotter on DSKBCFDHB2PROD with RULES
previously in letter form and many of
which were previously duplicative. In
addition, OVS operators must use
COALS for purposes of providing a
designated carriage election email
address, where broadcasters will send
election change notices, and a phone
number for broadcasters to use in the
event of questions as to whether the
OVS operator received the station’s
election notice. This burden is de
minimis and is outweighed by the
benefits to OVS operators of the new
carriage election framework.
5. Steps Taken To Minimize Significant
Economic Impact on Small Entities and
Significant Alternatives Considered
27. 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.’’
28. The Commission considered
establishing a narrow online public file
for the purposes of publicizing carriagerelated contact information for qualified
LPTV and NCE translator stations, but
concluded that requiring qualified LPTV
stations and encouraging qualified NCE
translator stations to instead update
their existing contact information in
LMS as necessary would be more
efficient and less burdensome both for
stations and the Commission. In
addition, the Commission concluded
that requiring OVS operators use
COALS to provide contact information
for carriage election purposes, as
required by the rules adopted in the
2019 Report and Order, is the most
efficient and least burdensome way for
OVS operators to publicize their contact
information. The Commission also
considered retaining the paper-based
carriage election notice requirements for
qualified LPTV and qualified NCE
translator stations, as well as OVS
operators, but concluded it would be
preferable to allow these entities to
benefit from the new carriage election
framework and that to retain the
previous rules for these entities might
undermine our goal of reducing
regulatory burdens.
29. Overall, the Report and Order
appropriately balances the interests of
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17:13 Apr 22, 2020
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the public against the interests of the
entities who are subject to the rules,
including those that are small entities.
6. Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rule
30. None.
B. Paperwork Reduction Act Analysis
31. This Report and Order 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.
C. Congressional Review Act
32. 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 the Order to Congress
and the Government Accountability
Office pursuant to 5 U.S.C. 801(a)(1)(A).
Ordering Clauses
33. Accordingly, it is ordered that,
pursuant to the authority contained in
sections 1, 4(i), 4(j), 325, 338, 614, 615,
631, 632, and 653 of the
Communications Act of 1934, as
amended, 47 U.S.C. 151, 154(i), 154(j),
325, 338, 534, 535, 551, 552, and 573,
this Report and Order is adopted and
will become effective 30 days after
publication in the Federal Register.
34. It is further ordered that part 76
of the Commission’s Rules are amended
as set forth in the Final Rules effective
30 days after publication in the Federal
Register, except for § 76.64(h)(5), which
contains new or modified information
collection requirements that require
approval by the Office of Management
and Budget under the Paperwork
Reduction Act and shall become
effective after the Commission publishes
a document in the Federal Register
announcing such approval and the
relevant effective date.
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22651
35. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Report and Order, including the
Final Regulatory Flexibility Analyses, to
the Chief Counsel for Advocacy of the
Small Business Administration.
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).
List of Subjects in 47 CFR Part 76
Cable television, Recording and
recordkeeping requirements.
Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer.
Final Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR part 76 as
follows:
PART 76—MULTICHANNEL VIDEO
AND CABLE TELEVISION SERVICE
1. The authority citation for part 76
continues to read as follows:
■
Authority: 47 U.S.C. 151, 152, 153, 154,
301, 302, 302a, 303, 303a, 307, 308, 309, 312,
315, 317, 325, 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.
2. Amend § 76.64 by:
a. Revising paragraph (h)(1); and
b. Adding paragraph (h)(5).
The revision and addition read as
follows:
■
■
■
§ 76.64
Retransmission consent.
*
*
*
*
*
(h)(1) On or before each must carry/
retransmission consent election
deadline, each television broadcast
station shall place a copy of its election
statement, and copies of any election
change notices applying to the
upcoming carriage cycle, in the station’s
public file if the station is required to
maintain a public file.
*
*
*
*
*
(5) Low power television stations and
non-commercial educational translator
stations that are qualified under § 76.55
and retransmitted by a multichannel
video programming distributor shall,
beginning no later than July 31, 2020,
respond as soon as is reasonably
possible to messages or calls from
multichannel video programming
distributors that are received via the
email address or phone number the
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station provides in the Commission’s
Licensing and Management System.
*
*
*
*
*
[FR Doc. 2020–07759 Filed 4–22–20; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 76
[MB Docket No. 20–61; DA 20–375; FRS
16638]
Implementation of the Truth-in-Billing
Provisions of the Television Viewer
Protection Act of 2019
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
In this document, the Media
Bureau, Federal Communications
Commission (Commission), grants a
blanket extension until December 20,
2020, of the effective date of new truthin-billing requirements in the Television
Viewer Protection Act of 2019.
DATES: This order is effective April 23,
2020.
FOR FURTHER INFORMATION CONTACT: For
additional information on this
proceeding, contact Raelynn Remy of
the Media Bureau, Policy Division, at
Raelynn.Remy@fcc.gov or (202) 418–
2120.
SUPPLEMENTARY INFORMATION: This is a
summary of the Media Bureau’s Order,
DA 20–375, adopted and released on
April 3, 2020. The full text is available
for public inspection and copying
during regular business hours in the
FCC Reference Center, Federal
Communications Commission, 445 12th
Street SW, Room CY–A257,
Washington, DC 20554. This document
will also be available via ECFS at
https://docs.fcc.gov/public/
attachments/DA-20-375A1.doc.
Documents will be available
electronically in ASCII, Microsoft Word,
and/or Adobe Acrobat. The complete
text may be purchased from the
Commission’s copy contractor, 445 12th
Street SW, Room CY–B402, Washington,
DC 20554. Alternative formats are
available for people with disabilities
(Braille, large print, electronic files,
audio format), by sending an email to
fcc504@fcc.gov or calling the
Commission’s Consumer and
Governmental Affairs Bureau at (202)
418–0530 (voice), (202) 418–0432
(TTY).
lotter on DSKBCFDHB2PROD with RULES
SUMMARY:
Synopsis
1. As the nation tackles the COVID–
19 pandemic, multichannel video
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programming distributors (MVPDs) and
providers of fixed broadband internet
access service are among the entities
that are integral to the Commission’s
ongoing, nationwide effort to keep
Americans informed and connected
during this national emergency. So that
these service providers may focus their
resources on this critical effort, we
provide appropriate flexibility for
MVPDs and providers of fixed
broadband internet access service to
fulfill their obligations under the
Television Viewer Protection Act of
2019 (TVPA). Specifically, by this
Order, we exercise our discretion under
the TVPA to grant a blanket extension
until December 20, 2020, of the effective
date of new truth-in-billing
requirements set forth in section 642 of
the Communications Act of 1934, as
amended (the Act), as added by section
1004 of the TVPA.
2. Section 642 of the Act requires
MVPDs to ‘‘give consumers a
breakdown of all charges related to the
MVPD’s video service’’ before entering
into a contract with a consumer for
service 1 and also provides consumers
24 hours in which to cancel such
service without penalty. In addition,
section 642 requires greater
transparency in electronic bills and
prohibits MVPDs and providers of fixed
broadband internet access service from
charging consumers for equipment they
do not provide. Section 642, as added
by the TVPA, becomes effective June 20,
2020, six months after the date of
enactment of the TVPA; however, the
Commission for ‘‘good cause’’ may
extend the effective date by six months.
On February 27, 2020, the Media Bureau
issued a Public Notice seeking comment
on whether good cause exists for
granting a blanket extension of section
642’s effective date by six months, until
December 20, 2020.2
3. Pursuant to section 1004(b) of the
TVPA, we find that good cause exists for
granting a blanket extension of section
642’s effective date until December 20,
2020. We note that on March 13, 2020,
approximately two weeks after issuance
of the Public Notice in this proceeding,
the President declared a national
emergency concerning the COVID–19
pandemic. In view of the evolving and
unpredictable nature of the pandemic,
and the additional demands it is placing
1 Section 642(a) of the Act, as added by section
1004(a) of the TVPA, indicates that information
about fees and other charges may be provided by
phone, in person, online, or by other reasonable
means, and that a copy of this information must be
sent to consumers by email, online link, or other
reasonably comparable means not later than 24
hours after entering into a contract.
2 85 FR 14869.
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on MVPDs and providers of fixed
broadband internet access service, we
find that extending section 642’s
effective date as specified above is both
reasonable and justified and will best
serve the public interest. Compliance
with the new truth-in-billing
requirements in section 642 may require
that subject entities make changes to
existing billing systems, provide
employee training, or take other
compliance measures, thereby requiring
providers to divert resources away from
other consumer demands brought on by
the pandemic. Indeed, we note that
these service providers are the entities
principally responsible for operating
and maintaining the infrastructure that
Americans increasingly depend on for
continued business and interpersonal
communications during the national
emergency. As such, we believe their
foremost obligation at this time is to
ensure continuity of service adequate to
meet the nation’s needs.3 We also
conclude, given the indefinite length of
time of the national emergency, that the
public interest would be served best by
affording subject entities until December
20, 2020—the maximum amount of time
permitted by the statute—to come into
compliance with the requirements of
section 642. Indeed, we note that
industry commenters claimed that an
extension was necessary even if the
pandemic had not occurred because six
months likely would not have provided
ample time for subject entities to take
the steps needed to implement the
relevant TVPA requirements.
4. Moreover, we find that the present
national emergency provides ‘‘good
cause’’ under the Administrative
Procedure Act (APA) for extending
section 642’s effective date without
prior notice and comment.4 As
explained above, we have already
independently determined that the
national emergency establishes good
cause under section 1004(b) of the
TVPA to issue a blanket extension of
3 We note that many MVPDs and providers of
fixed broadband internet access service recently
pledged to ensure connectivity for Americans
affected by pandemic-related disruptions. In
addition, the Commission has taken steps to ensure
that certain such providers have adequate capacity
to keep Americans connected during the national
emergency.
4 Given the fact that the TVPA expressly
anticipates the need for the Commission to grant an
additional six-month extension of the compliance
date, we believe our doing so for all affected entities
is the most efficient use of both agency and industry
resources given that all such entities face demands
brought on by the COVID–19 pandemic. Indeed,
issuing a blanket extension here achieves the same
result as granting multiple extensions to individual
providers in a more efficient manner, and thereby
avoids delay that could otherwise result in an
unnecessary diversion of industry and Commission
resources during this national crisis.
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Agencies
[Federal Register Volume 85, Number 79 (Thursday, April 23, 2020)]
[Rules and Regulations]
[Pages 22646-22652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07759]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 76
[MB Docket Nos. 17-317 and 17-105; FCC 20-14; FRS 16589]
In the Matter of Electronic Delivery of MVPD Communications;
Modernization of Media Regulation Initiative
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this final rule document, we adopt proposals to modernize
the Commission's carriage election notice rules with respect to certain
television broadcast stations and open video systems (OVS) operators.
First, we conclude that low power television stations (LPTVs) that
qualify for mandatory carriage (qualified LPTVs) must send notices to
affected multichannel video programming distributors (MVPDs) by email
when changing their carriage election status in the same manner as full
power television broadcast stations. However, unlike the requirement
for full power television broadcast stations, qualified LPTVs and
noncommercial educational (NCE) television translator stations that
qualify for must carry (qualified NCE translators) will not be required
to make their carriage election statements available for public
inspection. Second, we find that MVPDs with carriage-related questions
should be able to rely on the contact information provided by qualified
LPTV and qualified NCE translator stations in the Commission's
Licensing and Management System
[[Page 22647]]
(LMS) database. If an MVPD contacts the phone number or email address
provided by the station regarding a concern about carriage, those
concerns must be addressed as soon as is reasonably possible. Third, we
conclude that, in the same manner as cable operators, OVS operators
must post contact information for questions regarding carriage election
to the Cable Operations and Licensing System (COALS) database, accept
email election change notices, and timely respond to carriage-related
questions. Through this Order, we continue our efforts to modernize our
rules.
DATES: Effective May 26, 2020, except for amendatory instruction 2.b.
(Sec. 76.64(h)(5)) which shall become effective after the Commission
publishes a document in the Federal Register announcing the relevant
effective date.
FOR FURTHER INFORMATION CONTACT: Kim Matthews, Media Bureau, Policy
Division, 202-418-2154, or email at [email protected].
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order, FCC 20-14, adopted on February 25, 2020 and released on
February 25, 2020. The full text of this document is available for
public inspection and copying during regular business hours in the FCC
Reference Center, Federal Communications Commission, 445 12th Street
SW, Room CY-A257, Washington, DC 20554. This document will also be
available via ECFS at https://fjallfoss.fcc.gov/ecfs/. Documents will be
available electronically in ASCII, Microsoft Word, and/or Adobe
Acrobat. Alternative formats are available for people with disabilities
(Braille, large print, electronic files, audio format), by sending an
email to [email protected] or calling the Commission's Consumer and
Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432
(TTY).
Paperwork Reduction Act of 1995 Analysis
This Report and Order 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 will be
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.
Summary of Report and Order
1. Under the Communications Act of 1934, as amended (the Act), full
power television broadcast stations, and certain low power stations and
translator stations, are entitled to mandatory carriage of their signal
(also known as ``must carry'') on any cable system located within their
local market. Alternatively, commercial television broadcast stations
with carriage rights may elect ``retransmission consent.'' If the
broadcaster and MVPD cannot reach an agreement under which the
broadcaster gives consent for retransmission of its signal, the MVPD is
prohibited from carrying that signal. Thus, commercial stations are
presented with a carriage choice--elect mandatory carriage and forego
compensation while assuring carriage, or elect retransmission consent
and forego assured carriage while retaining the possibility of
compensation for carriage. NCE stations are entitled to must carry but
cannot elect retransmission consent.
2. As discussed more fully in the 2019 Report and Order in this
proceeding, 84 FR 45659 (Aug. 30, 2019), when the Commission
implemented the statutory provisions establishing the must carry/
retransmission consent regime, it adopted a requirement that each
commercial television broadcast station provide notice to every cable
operator every three years electing either mandatory carriage or
retransmission consent. Prior to the adoption of the 2019 Report and
Order, the rules directed each commercial television broadcast station
to send a triennial carriage election notice, via certified mail, to
each cable system or DBS provider serving its market, and directed each
NCE station to send such notices to DBS providers. The notice must
state whether the station has elected mandatory carriage or
retransmission consent. In addition, the rules generally also require
stations to place triennial carriage election statements in their
online public inspection files, to the extent they maintain such files.
3. The 2019 Report and Order generally adopted an approach for
modernizing the carriage election notice process that was jointly
recommended by the National Association of Broadcasters (NAB) and
NCTA--the internet and Television Association (NCTA). The Commission's
revised carriage election rules adopted therein apply to all television
broadcast stations with mandatory carriage rights and to all MVPDs
responsible for that carriage, except for the relatively few entities
that participate in the must carry regime but do not use the online
public file or COALS (the Excluded Entities). Under the new carriage
election framework, broadcast stations are required to make their
carriage elections by uploading those elections to their online public
files and by providing a separate electronic notice of those elections
to relevant MVPDs only when and if they change their election from the
previous election period. Thus, only a limited number of notices will
need to be sent to MVPDs and these will be sent via email instead of
via paper mail. In addition, the 2019 Report and Order requires
broadcast stations and DBS providers to upload to their online public
files both an email address and a phone number for purposes of
carriage-related inquiries and requires cable operators to upload the
same information in COALS.
4. The rules adopted in the 2019 Report and Order require use of
the Commission's online public inspection file and/or COALS. In the
further notice of proposed rulemaking (FNPRM), 84 FR 45703 (Aug. 30,
2019) (2019 FNPRM), accompanying the 2019 Report and Order, we sought
comment on whether and how the modernized framework adopted in the 2019
Report and Order should extend to the Excluded Entities, which are
subject to the must carry regime and do not use these Commission
databases. Among other things, the Commission asked whether we should
require the Excluded Entities to establish and maintain a very narrow
public file solely for carriage-related information or require them to
post any required information on a company website. We also sought
comment on whether we should, alternatively, simply maintain the status
quo with respect to the small number of Excluded Entities.
5. The Commission received only three comments in response to the
2019 FNPRM. All agree that the Excluded Entities should be transitioned
to modernized carriage election rules and that any information these
entities are required to provide should be posted on a Commission
website or Commission-hosted database. All commenters support placing
carriage election information in a centralized, Commission-established
location rather than on company websites. NCTA contends that many non-
Class A LPTV stations and qualified NCE translator
[[Page 22648]]
stations do not maintain company websites, and a centralized repository
would make it easier for MVPDs to locate carriage information for these
entities. All commenters also agree that the Excluded Entities should
make public contact information for use for carriage-related
communications, and ACA Connects and NCTA also argue that the Excluded
Entities should provide any required election statements or notices to
the Commission to be made available on a Commission website or
database.
6. We adopt a carriage election notification approach for the
Excluded Entities that is supported by the record in this proceeding
and that is, to the greatest extent possible, consistent with that
adopted in the 2019 Report and Order, while recognizing the specific
circumstances of these smaller entities. Specifically, we will require
qualified LPTV stations to use the same process as full power
television stations to notify MVPDs of any change in carriage election
status. Rather than imposing a new public file obligation on qualified
LPTV and qualified NCE translator stations, however, we require that
they send a single ``baseline'' notice via email to MVPDs on which they
will be seeking or expecting carriage in the 2021-2023 carriage cycle,
even if they are making no change in their election status. We disagree
with NCTA's and ACA Connects' contention that we should require the
Excluded Entities to post election statements online each cycle in
addition to sending election notices by email to MVPDs in the event of
an election change. Qualified LPTV and qualified NCE translator
stations are not currently required to make their election notices
available to the public. We believe that the better approach is to
maintain the status quo rather than impose a new public posting
obligation that would increase burdens on these entities. Specifically,
we believe that the creation of the proposed new database would impose
unnecessary costs and inject unnecessary complexity into the election
notice process.
7. In addition, we find that MVPDs with carriage-related questions
must be able to rely on the contact information provided by these
stations in LMS. We also require both qualified LPTV and qualified NCE
translator stations to respond as soon as is reasonably possible to
such questions. With respect to OVS, we require that they accept
emailed election change notices, post contact information in COALS, and
respond as soon as is reasonably possible to carriage election
notifications and carriage-related questions, all in exactly the same
manner as cable systems.
8. We agree with NCTA that the carriage election framework adopted
in the 2019 Report and Order ``greatly reduces administrative burdens''
for stations and MVPDs by, among other changes, only requiring email
notice of changed elections and eliminating redundant election
notifications and carriage requests. As we stated in the 2019 Report
and Order, our goal is to have a unified approach for carriage election
notices, to the extent possible, to best serve the public interest and
enhance administrative efficiency. Therefore, today we extend the
benefits of the new carriage election framework to the Excluded
Entities as well.
9. Consistent with our approach to commercial television broadcast
stations, we require a qualified LPTV station that changes its carriage
election to send an election change notice to each affected MVPD's
carriage election-specific email address by the carriage election
deadline. Such change notices must include, with respect to each
station covered by the notice: The station's call sign, the station's
community of license, the DMA where the station is located, the
specific change being made in election status, and an email address and
phone number for carriage-related questions. Consistent with our
approach with respect to commercial full power broadcast stations, LPTV
notices to cable operators need to identify specific cable systems for
which a carriage election applies only if the broadcaster changes its
election for some systems of the cable operator but not all. In
addition, the broadcaster must carbon copy [email protected], the
Commission's election notice verification email inbox, when sending its
carriage elections to MVPDs. As noted in the 2019 Report and Order,
this election notice verification email inbox will provide a
verification response to assure broadcasters that the email has been
received.
10. As with commercial full power broadcast stations, if an LPTV
station does not receive a response verifying receipt of its change
notice by the MVPD, or gets an indication that the message was not
delivered, it must contact the MVPD via the provided phone number to
confirm that the notice was received or arrange for it to be
redelivered. If the email is timely and properly sent to the MVPD's
listed address, but the broadcast station receives no verification and
is unable to reach anyone at the provided phone number, the notice
still will be considered to have been properly delivered if it was
properly copied to the Commission's election verification notice email
inbox.
11. Unlike commercial full power broadcast stations, qualified LPTV
stations need not maintain a publicly accessible copy of their carriage
election notices or statements. As noted above, LPTV stations are not
currently required to maintain a public file with copies of their
carriage election notices, and we decline to impose a new obligation in
that regard in this proceeding. Rather than imposing a new public file
requirement, however, we require all qualified LPTV stations, whether
being carried pursuant to must carry or retransmission consent, to send
an email notice to all MVPDs that are or will be carrying the station
no later than the next carriage election deadline of October 1, 2020.
Qualified LPTVs must do so even if they are not changing their carriage
status from the current election cycle. This one-time notification
requirement for all qualified LPTV stations will give MVPDs baseline
information regarding qualified LPTV stations without imposing a new
obligation on qualified LPTVs to make their election status publicly
available. In addition, requiring a one-time filing of ``baseline
information'' does not impose any greater burden on LPTV or NCE
translator stations given that, under the current rules, such entities
would be required to file a paper copy of their election notification
with each affected MVPD.
12. As noted above, qualified NCE stations may only request
mandatory carriage and are not permitted to ``elect'' retransmission
consent on any MVPD. Once an NCE station requests mandatory carriage
from an MVPD, the carriage request continues, absent a change in
circumstances. We therefore do not require qualified NCE translator
stations to send election change notifications. In addition, similar to
our approach herein with respect to qualified LPTV stations, rather
than impose new public file obligations on qualified NCE translator
stations, we require qualified NCE translator stations to provide email
notice to all MVPDs that are or will be carrying the translator no
later than the next carriage election deadline of October 1, 2020. As
with qualified LPTV stations, this one-time notification requirement
for all qualified NCE translators will give MVPDs baseline information
regarding these entities without imposing a new obligation on them to
make their election status publicly available.
13. Each licensed broadcast station, including LPTV and translator
stations, has a publicly-accessible entry in LMS
[[Page 22649]]
with a field for contact information which can be updated easily.
Therefore, in the absence of public file requirements for qualified
LPTV and NCE translator stations, we find that MVPDs with carriage-
related concerns must be able to rely upon the contact information that
the LPTV or NCE translator station provides in LMS. As all licensed
stations already have accounts in LMS, we conclude that it is more
efficient and less burdensome to simply require that qualified LPTV and
NCE translator stations maintain current contact information in LMS so
that MVPDs can contact the station regarding carriage-related questions
as necessary. We require qualified LPTV stations and encourage
qualified NCE translator stations to review and, if necessary, provide
contact information or update the existing contact information in LMS
no later than July 31, 2020, approximately 60 days prior to the 2020
carriage election deadline, and to ensure that this information remains
current thereafter. We will not establish a separate field in LMS for
carriage-specific contact information for qualified LPTV and NCE
translator stations, but require that these stations ensure that the
general contact information in LMS can be used by MVPDs as a point of
contact for carriage-related questions. If a station has designated a
third party as contact representative or designates multiple types of
contact representatives in LMS, questions should be directed to the
licensee's email address rather than a contact representative's email
address (if different from the licensee's email address). Qualified
LPTV and NCE translator stations must ensure that, if an MVPD contacts
the station via the licensee's phone or email address contained in LMS,
that this carriage-related concern is addressed as soon as is
reasonably possible.
14. In the 2019 FNPRM, we sought comment on applying the revised
carriage election framework to MVPDs that do not use COALS or OPIF,
identifying OVS specifically. OVS providers, however, are in fact
required to establish and maintain an up-to-date COALS account in the
same manner as cable operators. We therefore impose requirements on OVS
operators that are identical to those in the 2019 Report and Order for
cable operators. OVS operators must provide, via COALS, a specific
carriage election email address where broadcasters will send election
change notices and a phone number for broadcasters to use in the event
of questions as to whether the OVS operator received the station's
election notice. OVS operators must post carriage contact information
to COALS by July 31, 2020, and maintain up-to-date contact information
at all times thereafter. Each OVS operator must have a single email
address and phone number for carriage issues, regardless of the number
of markets served. Finally, like other entities subject to the must
carry regime, OVS operators are required to respond as soon as is
reasonably possible to carriage questions from broadcasters.
15. Again like cable operators, OVS operators must verify receipt
of an emailed election change notice, via email sent back to the
originating address, as soon as is reasonably possible. As we concluded
in the 2019 Report and Order, this email response will serve only as
verification that the notice email was received; it will not constitute
a statement that the broadcaster has fully satisfied its notice
obligation. Although we anticipate that these verification emails will
be generated automatically in most cases, we require only that they be
sent as soon as is reasonably possible. A timely and correct notice of
a change in election that is sent to the email address provided by the
OVS operator, carbon copied to [email protected], and placed in
the station's public file (if the station has a public file obligation)
must be honored by the MVPD.
16. We find that requiring OVS operators to use their existing
COALS accounts is the most efficient and least burdensome way for OVS
operators to publicize their contact information for this purpose.
Maintaining contact information for carriage-related questions for all
OVS operators in the COALS database will also assist broadcasters and
others who need information regarding all MVPDs operating in a given
geographic area for carriage purposes. We also note that Sec.
76.1506(l) of our rules provides that the requirements in Sec. 76.64
regarding the delivery of must carry/retransmission consent election
notifications apply to OVS operators. The 2019 Report and Order revised
Sec. 76.64 of our rules to require cable operators to provide an up-
to-date email address for carriage election notice submissions no later
than July 31, 2020, to ensure that the information remains up-to-date,
and to respond to questions from broadcasters as soon as is reasonably
possible. We conclude that these existing requirements also apply to
OVS operators.
17. Similar to our approach in the 2019 Report and Order, we apply
these revised notification requirements to LPTV and NCE translator
stations and OVS operators beginning with the 2020 election for the
2021-2023 carriage election cycle. Therefore, qualified LPTV
broadcasters must email required notifications to MVPDs by October 1,
2020. Qualified LPTV and NCE translator stations must also ensure that
the contact information for the station in LMS is accurate no later
than July 31, 2020, and OVS operators must ensure that their carriage-
related contact information in COALS is up to date by the same
deadline.
Procedural Matters
A. Final Regulatory Flexibility Analysis
18. As required by the Regulatory Flexibility Act of 1980 (RFA), an
Initial Regulatory Flexibility Certification was incorporated into the
2019 FNPRM. The Federal Communications Commission (Commission) sought
written public comment on the proposals in the 2019 FNPRM including
comment on the IRFA. We received no comments specifically directed
toward the IRFA. This Final Regulatory Flexibility Analysis (FRFA)
conforms to the RFA.
1. Need for, and Objectives of, the Report and Order
19. In this Report and Order, we adopt proposals to modernize the
Commission's carriage election notice rules with respect to certain
television broadcast stations and open video system (OVS) operators to
enhance administrative efficiency. In so doing, we adopt requirements
largely consistent with those recently adopted for full power
television broadcast stations. First, we conclude that low power
television stations (LPTVs) that qualify for mandatory carriage
(qualified LPTVs) must send notices to affected multichannel video
programming distributors (MVPDs) by email when changing their carriage
election status, in the same manner as full power television broadcast
stations. However, unlike the requirement for full power television
broadcast stations, qualified LPTVs and noncommercial educational (NCE)
television translator stations that qualify for must carry (qualified
NCE translators) will not be required to make their carriage election
statements available for public inspection. Second, we find that MVPDs
with carriage-related questions should be able to rely on the contact
information provided by qualified LPTV and qualified NCE translator
stations in the Commission's Licensing and Management System (LMS)
database. If an MVPD contacts the phone number or email address
provided by the station regarding a concern about carriage, those
concerns
[[Page 22650]]
must be addressed as soon as is reasonably possible. Third, we conclude
that, in the same manner as cable operators, OVS operators must post
contact information for questions regarding carriage election to the
Cable Operations and Licensing System (COALS) database, accept email
election change notices, and timely respond to carriage-related
questions. Through this Order, we continue our efforts to modernize our
rules.
2. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA
20. No comments were filed in response to the IRFA.
3. Description and Estimate of the Number of Small Entities To Which
the Proposed Rules Will Apply
21. 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.
22. 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.
23. 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 $38.5 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 $25 million or
less, 25 had annual receipts between $25 million and $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.
24. The Commission estimates that 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.
4. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements
25. The Commission anticipates that the rule changes adopted in
this Report and Order will lead to an overall immediate, long-term
reduction in reporting, recordkeeping, and other compliance
requirements for qualified LPTV stations. Specifically, after the 2020
carriage election, qualified LPTV stations will be required to send
carriage election notices only when they are changing their election,
will be permitted to send these notices via email, and will no longer
need to produce and mail several letters to MVPDs, many of which are
duplicative, to ensure that they are received by the MVPD. LPTV and NCE
translator stations are not currently required to maintain a public
file with a copy of their carriage election notices, and the Report and
Order does not impose a new obligation in that regard in this
proceeding. In the absence of public file requirements for qualified
LPTV and NCE translator stations, the Report and Order permits MVPDs
with carriage-related concerns to rely upon the contact information
provided by the LPTV or NCE translator station in LMS. We require
qualified LPTV stations, and encourage qualified NCE translator
stations, to review and, if necessary, update this contact information
in LMS no later than July 31, 2020, approximately 60 days prior to the
2020 carriage election deadline, and ensure that this information
remains current thereafter. Qualified LPTV and NCE translator stations
must ensure that, if an MVPD contacts the station via the phone or
email address they have provided in LMS because it has concerns
regarding carriage, the station will respond to those concerns as soon
as is reasonably possible.
26. With respect to OVS operators, the Report and Order imposes no
burdens beyond those imposed in the 2019 Report and Order. As with
cable operators, broadcasters will send carriage election notifications
to OVS operators via email rather than on paper, which will ease the
administrative burden of reviewing these notifications, which were
[[Page 22651]]
previously in letter form and many of which were previously
duplicative. In addition, OVS operators must use COALS for purposes of
providing a designated carriage election email address, where
broadcasters will send election change notices, and a phone number for
broadcasters to use in the event of questions as to whether the OVS
operator received the station's election notice. This burden is de
minimis and is outweighed by the benefits to OVS operators of the new
carriage election framework.
5. Steps Taken To Minimize Significant Economic Impact on Small
Entities and Significant Alternatives Considered
27. 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.''
28. The Commission considered establishing a narrow online public
file for the purposes of publicizing carriage-related contact
information for qualified LPTV and NCE translator stations, but
concluded that requiring qualified LPTV stations and encouraging
qualified NCE translator stations to instead update their existing
contact information in LMS as necessary would be more efficient and
less burdensome both for stations and the Commission. In addition, the
Commission concluded that requiring OVS operators use COALS to provide
contact information for carriage election purposes, as required by the
rules adopted in the 2019 Report and Order, is the most efficient and
least burdensome way for OVS operators to publicize their contact
information. The Commission also considered retaining the paper-based
carriage election notice requirements for qualified LPTV and qualified
NCE translator stations, as well as OVS operators, but concluded it
would be preferable to allow these entities to benefit from the new
carriage election framework and that to retain the previous rules for
these entities might undermine our goal of reducing regulatory burdens.
29. Overall, the Report and Order appropriately balances the
interests of the public against the interests of the entities who are
subject to the rules, including those that are small entities.
6. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rule
30. None.
B. Paperwork Reduction Act Analysis
31. This Report and Order 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.
C. Congressional Review Act
32. 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 the
Order to Congress and the Government Accountability Office pursuant to
5 U.S.C. 801(a)(1)(A).
Ordering Clauses
33. Accordingly, it is ordered that, pursuant to the authority
contained in sections 1, 4(i), 4(j), 325, 338, 614, 615, 631, 632, and
653 of the Communications Act of 1934, as amended, 47 U.S.C. 151,
154(i), 154(j), 325, 338, 534, 535, 551, 552, and 573, this Report and
Order is adopted and will become effective 30 days after publication in
the Federal Register.
34. It is further ordered that part 76 of the Commission's Rules
are amended as set forth in the Final Rules effective 30 days after
publication in the Federal Register, except for Sec. 76.64(h)(5),
which contains new or modified information collection requirements that
require approval by the Office of Management and Budget under the
Paperwork Reduction Act and shall become effective after the Commission
publishes a document in the Federal Register announcing such approval
and the relevant effective date.
35. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Report and Order, including the Final Regulatory
Flexibility Analyses, to the Chief Counsel for Advocacy of the Small
Business Administration.
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).
List of Subjects in 47 CFR Part 76
Cable television, Recording and recordkeeping requirements.
Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 76 as follows:
PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE
0
1. The authority citation for part 76 continues to read as follows:
Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 302a, 303,
303a, 307, 308, 309, 312, 315, 317, 325, 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
2. Amend Sec. 76.64 by:
0
a. Revising paragraph (h)(1); and
0
b. Adding paragraph (h)(5).
The revision and addition read as follows:
Sec. 76.64 Retransmission consent.
* * * * *
(h)(1) On or before each must carry/retransmission consent election
deadline, each television broadcast station shall place a copy of its
election statement, and copies of any election change notices applying
to the upcoming carriage cycle, in the station's public file if the
station is required to maintain a public file.
* * * * *
(5) Low power television stations and non-commercial educational
translator stations that are qualified under Sec. 76.55 and
retransmitted by a multichannel video programming distributor shall,
beginning no later than July 31, 2020, respond as soon as is reasonably
possible to messages or calls from multichannel video programming
distributors that are received via the email address or phone number
the
[[Page 22652]]
station provides in the Commission's Licensing and Management System.
* * * * *
[FR Doc. 2020-07759 Filed 4-22-20; 8:45 am]
BILLING CODE 6712-01-P