80_FR_16406 80 FR 16347 - Carriage of Digital Television Broadcast Signals

80 FR 16347 - Carriage of Digital Television Broadcast Signals

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 80, Issue 59 (March 27, 2015)

Page Range16347-16354
FR Document2015-06943

In this document, the Commission seeks comment on a Petition for Rulemaking filed by the American Cable Association (``ACA'') requesting, among other things, that the Commission extend for an additional three years the exemption from the requirement to carry high definition (``HD'') broadcast signals under the ``material degradation'' provisions of the Communications Act of 1934, as amended (``the Act'') that it granted to certain small cable systems in the 2012 Fifth Report and Order. This exemption is slated to expire on June 12, 2015 absent further action by the Commission. We tentatively conclude that the public interest would be served by extending the HD carriage exemption for three years, or until June 12, 2018.

Federal Register, Volume 80 Issue 59 (Friday, March 27, 2015)
[Federal Register Volume 80, Number 59 (Friday, March 27, 2015)]
[Proposed Rules]
[Pages 16347-16354]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-06943]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 76

[CS Docket No. 98-120; FCC 15-29]


Carriage of Digital Television Broadcast Signals

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Commission seeks comment on a Petition 
for Rulemaking filed by the American Cable Association (``ACA'') 
requesting, among other things, that the Commission extend for an 
additional three years the exemption from the requirement to carry high 
definition (``HD'') broadcast signals under the ``material 
degradation'' provisions of the Communications Act of 1934, as amended 
(``the Act'') that it granted to certain small cable systems in the 
2012

[[Page 16348]]

Fifth Report and Order. This exemption is slated to expire on June 12, 
2015 absent further action by the Commission. We tentatively conclude 
that the public interest would be served by extending the HD carriage 
exemption for three years, or until June 12, 2018.

DATES: Comments are due on or before April 16, 2015; reply comments are 
due on or before April 27, 2015. Written comments on the Paperwork 
Reduction Act potential information collection requirements must be 
submitted by the public, Office of Management and Budget (OMB), and 
other interested parties on or before May 26, 2015.

ADDRESSES: You may submit comments, identified by CS Docket No. 98-120, 
by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web site: http://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting 
comments.
     Mail: Filings can be sent by hand or messenger delivery, 
by commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail. All filings must be addressed to the Commission's 
Secretary, Office of the Secretary, Federal Communications Commission.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: [email protected] or phone: (202) 418-
0530 or TTY: (202) 418-0432.
    In addition to filing comments with the Secretary, a copy of any 
comments on the Paperwork Reduction Act potential information 
collection requirements contained herein should be submitted to the 
Federal Communications Commission via email to [email protected]. For 
detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Raelynn Remy of the Policy Division, 
Media Bureau at (202) 418-2120 or [email protected]. For additional 
information concerning the Paperwork Reduction Act information 
collection requirements contained in this document, send an email to 
[email protected] or contact Cathy Williams at (202) 418-2918.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Fifth 
Further Notice of Proposed Rulemaking (``Fifth FNPRM''), FCC 15-29, 
adopted on March 11, 2015 and released on March 12, 2015. 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 http://fjallfoss.fcc.gov/ecfs/. 
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 [email protected] or calling the Commission's Consumer 
and Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-
0432 (TTY).
    The Fifth FNPRM seeks comment on potential information collection 
requirements. If the Commission adopts any information collection 
requirements, the Commission will publish a notice in the Federal 
Register inviting the public to comment on the requirements, as 
required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 
U.S.C. 3501 through 3520). In addition, pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4), the Commission seeks specific comment on how it might 
``further reduce the information collection burden for small business 
concerns with fewer than 25 employees.'' The Commission, as part of its 
continuing effort to reduce paperwork burdens, invites the general 
public and the Office of Management and Budget (OMB) to comment on the 
information collection requirements contained in this document, as 
required by the Paperwork Reduction Act of 1995, Public Law 104-13. 
Public and agency comments are due May 26, 2015.

Synopsis

I. Introduction

    1. In this Fifth FNPRM, we seek comment on a Petition for 
Rulemaking filed by the American Cable Association (``ACA'') \1\ 
requesting, among other things, that the Commission extend for an 
additional three years the exemption from the requirement to carry high 
definition (``HD'') broadcast signals under the ``material 
degradation'' provisions of the Communications Act of 1934, as amended 
(``the Act'') \2\ that it granted to certain small cable systems in the 
Fifth Report and Order (``HD carriage exemption'').\3\ This exemption 
is slated to expire on June 12, 2015 absent further action by the 
Commission. As discussed below, we tentatively conclude that the public 
interest would be served by extending the HD carriage exemption for 
three years, or until June 12, 2018. We set forth below a brief history 
of the HD carriage exemption and a summary of ACA's arguments in 
support of its Petition, and seek comment on our tentative conclusion 
to grant ACA's proposal.
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    \1\ See American Cable Association Petition for Rulemaking, CS 
Docket No. 98-120 (filed Jan. 27, 2015) (``Petition'').
    \2\ See 47 U.S.C. 534(b)(4)(A), 535(g)(2) (material degradation 
requirements relating to signals of local commercial and 
noncommercial television stations, respectively).
    \3\ See Carriage of Digital Television Broadcast Signals: 
Amendment to Part 76 of the Commission's rules, Docket No. CS 98-
120, Fifth Report and Order, 77 FR 36178 (2012) (``Fifth Report and 
Order'').
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II. Background

    2. Sections 614(b)(4)(A) and 615(g)(2) of the Act require that 
cable operators carry signals of commercial and noncommercial broadcast 
television stations, respectively, ``without material degradation.'' 
\4\ In the context of the carriage of digital signals, the Commission 
has interpreted this requirement: (i) To prohibit cable operators from 
discriminating in their carriage between broadcast and non-broadcast 
signals; and (ii) to require cable operators to carry HD broadcast 
signals to their viewers in HD.\5\ In response to concerns from small 
cable operators about cost and technical capacity, the Commission, in 
the 2008 Fourth Report and Order, granted a three-year exemption from 
the HD carriage requirement to certain small cable systems.\6\ 
Specifically, the Commission exempted small cable systems with 2,500 or 
fewer subscribers that are not affiliated with a cable operator serving 
more than 10 percent of all MVPD subscribers, and those with an 
activated channel capacity of 552 MHz or less.
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    \4\ See section 614(b)(4)(A) of the Act (47 U.S.C. 
534(b)(4)(A)). See also Section 615(g)(2) of the Act. See 47 U.S.C. 
535(g)(2). See also 47 CFR 76.62(b) through (d), (h).
    \5\ See Carriage of Digital Television Broadcast Signals: 
Amendment to Part 76 of the Commission's rules, Docket No. CS 98-
120, Third Report and Order and Third Further Notice of Proposed 
Rulemaking, 73 FR 6043 (2007) (``Viewability Order'').
    \6\ See Carriage of Digital Television Broadcast Signals: 
Amendment to Part 76 of the Commission's rules, Docket No. CS 98-
120, Fourth Report and Order, 73 FR 61742 (2008) (``Fourth Report 
and Order'').

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[[Page 16349]]

    3. The exemption from this material degradation requirement permits 
such systems to carry broadcast signals in standard definition (``SD'') 
digital and/or analog format, even if the signals are broadcast in HD, 
so long as all subscribers can receive and view the signal.\7\ The 
Commission provided that the exemption would expire three years after 
the conclusion of the DTV transition, but stated that it would consider 
whether to extend the exemption in its final year.\8\ After conducting 
that review,\9\ the Commission, in the 2012 Fifth Report and Order, 
extended for an additional three years, or until June 12, 2015, the HD 
carriage exemption for certain small cable systems.\10\ The Commission 
stated that the exemption was not intended to be permanent and that its 
purpose was ``to provide small systems additional time to upgrade and, 
where necessary, expand their systems to come into full compliance with 
the material degradation provisions . . . by carrying HD versions of 
all HD broadcast signals without having to make relatively large 
expenditures over a short period of time.'' \11\
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    \7\ Id., para. 5. The Commission concluded that cable operators, 
regardless of system size, need not carry an SD digital version of a 
broadcast station's signal, in addition to the analog version, to 
satisfy the material degradation requirement, because both an SD 
digital version and an analog version of the digital broadcast 
signal received at the headend should have the same 480i resolution; 
thus, there should be no perceivable difference between the two 
versions of the signal. Id.
    \8\ See id., para. 11. See also Carriage of Digital Television 
Broadcast Signals: Amendment to Part 76 of the Commission's rules, 
Docket No. CS 98-120, Fourth Further Notice of Proposed Rulemaking 
and Declaratory Order, 77 FR 9187 (2012) (``Fourth Further 
Notice''). The exemption would have expired on February 17, 2012, if 
Congress had not delayed the DTV transition date from February 17, 
2009 until June 12, 2009. Id. In the 2012 Declaratory Order 
accompanying the Fourth Further Notice, the Commission clarified 
that the HD carriage exemption was effective until June 12, 2012 
because the HD exemption was intended to remain in effect for three 
full years from the DTV transition date. Id.
    \9\ See id., para. 3.
    \10\ See id. The Commission extended the exemption based on its 
finding that the same financial and capacity constraints that 
confronted small cable operators when it initially granted the 
exemption in 2008 continued to exist. Id., para. 21. In particular, 
the Commission found that the exemption ``remains necessary to 
protect the viability of small systems and their service to rural 
and smaller market consumers.'' Id.
    \11\ Id., para. 22. The Commission declined to restrict the 
exemption further by eliminating its application to systems that 
carry any signal in HD, as suggested by the National Association of 
Broadcasters (``NAB''). In so doing, the Commission reasoned that 
the exemption had already been crafted narrowly to excuse only a 
limited number of systems with certain capacity constraints or low 
subscribership, and that a small system's ability to offer some HD 
service did not necessarily render that system capable of offering 
additional HD service. Id., para. 23. The Commission also expressed 
concern that restricting the exemption further would create a 
disincentive for systems to offer more HD programming incrementally. 
Id.
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    4. On January 28, 2015, ACA filed its Petition requesting that the 
Commission: (i) Commence a rulemaking proceeding to extend for an 
additional three years the HD carriage exemption; and (ii) clarify that 
analog-only cable systems are not required, and have never been 
required, to transmit must-carry signals in HD.\12\ In general, ACA 
contends that the HD carriage exemption has worked as intended by 
providing eligible systems with additional time to provide must-carry 
signals in HD, but that the exemption is still needed to protect a 
small number of systems and their subscribers from the potential costs 
and service disruptions that would result from immediate compliance 
with an HD carriage requirement.\13\ In support of its request for an 
extension, ACA points to data from a recent survey \14\ that shows that 
roughly 6%, or 53 of its members, continue to rely on it.\15\
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    \12\ See Petition at 1-2, 18.
    \13\ Id. at 2.
    \14\ ACA conducted an online survey of its members from October 
2 through October 22, 2014 to determine the number of systems still 
relying on the HD carriage exemption. Id. at 4, n.8. ACA represents 
approximately 840 independent MVPDs that serve about 7.4 million 
video subscribers primarily in smaller markets and rural areas. 
ACA's members range from family-run operations that serve a single 
town to multiple system operators with small systems. The median 
number of video subscribers per ACA member is 1,060. Id. at 4, n.9.
    \15\ Id. at 4-5.
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    5. With respect to the category of small systems that have a 
capacity of 552 MHz or less, ACA reports that 42 respondents (that 
account for at least 117 systems serving a total of 35,758 subscribers, 
or an average of 306 subscribers per system) continue to rely on the HD 
carriage exemption.\16\ Similarly, with respect to the category of 
systems that serve 2,500 or fewer subscribers and that are not 
affiliated with an operator serving more than 10 percent of all MVPD 
subscribers, ACA reports that 53 respondents (that account for 143 
systems serving a total of 49,790 subscribers, or an average of 348 
subscribers per system) \17\ still rely on the exemption.\18\ The 
survey reveals further that these systems offer an average of 2.5 must-
carry stations in a ``down-converted'' format only.\19\ Given this 
data, ACA asserts, imposing an HD carriage requirement at this time 
would be as detrimental to small systems today as it was when the 
Commission initially granted the exemption.\20\
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    \16\ Id. at 5. ACA asserts that the survey further indicates 
that: (i) Those systems offer an average of 2.3 must-carry stations 
in a down-converted format only; (ii) only 20.5% of those systems 
offer some HD television services; and (iii) 38.5% of those systems 
offer broadband service. Id. and Table 1.
    \17\ ACA reports that all 117 of the systems with a capacity of 
552 MHz or less also have fewer than 2,500 subscribers, and that 
81.8% of the systems with fewer than 2,500 subscribers also have a 
capacity of 552 MHz or less. See Petition at 5-6 and Tables 1, 2.
    \18\ Id. at 6. ACA asserts that the survey further indicates 
that: (i) Those systems offer an average of 2.5 must-carry stations 
in a down-converted format only; (ii) only 25.9% of those systems 
offer some HD television services; and (iii) 54.4% of those systems 
offer broadband service. Id. and Table 2.
    \19\ Id. Although ACA does not define ``down-converted format,'' 
we assume this term refers to a cable system's conversion of a high 
definition broadcast signal to standard definition when 
retransmitting the signal to subscribers.
    \20\ Id. at 3.
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    6. ACA argues that applying the HD carriage exemption to cable 
systems with 552 MHz or less of channel capacity is still justified 
because such systems continue to face significant bandwidth constraints 
that affect their ability to provide must-carry signals in both analog 
and HD format.\21\ To support its assertion, ACA points to survey data 
demonstrating that for 81% of respondents with a capacity of 552 MHz or 
less, the amount of unused channel capacity that is available for new 
channels or services either has decreased \22\ or remained the same 
\23\ in the past three years. ACA asserts further that a substantial 
majority of survey respondents in this category report that they cannot 
deliver HD signals without changing existing channels or services, and 
that it would be burdensome for them to make available channel capacity 
for HD signals.\24\ ACA contends that imposing an HD carriage 
requirement at this time would harm subscribers of these systems by 
forcing such systems: (i) To drop channels; (ii) to continue providing 
signals only in a down-converted format, thereby risking Commission 
enforcement action; or (iii) to cease operations entirely.\25\
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    \21\ Id. at 7-8.
    \22\ Id. at 8 and Table 4. According to ACA, the decrease in 
unused channel capacity has resulted from the need of operators to 
accommodate non-broadcast programmers that demand carriage of 
additional channels in exchange for access to, or less drastic rate 
increases for, popular non-broadcast channels. Id. at 8-9. ACA also 
attributes this decrease in capacity to the need of operators to 
allocate capacity for broadband services. Id. at 9.
    \23\ ACA asserts that the most common reason reported for no 
change in channel capacity was that the system was channel locked 
three years ago and remains the same today due to a lack of 
financial resources for capacity expansion or the absence of a 
business case to support such expansion. Id.
    \24\ Id. and Table 5.
    \25\ Id. at 10. ACA reports that 45.2% of survey respondents in 
this category would shut down their systems; 14.3% would drop 
existing channels; and 19% would risk Commission enforcement action 
rather than comply with an HD carriage requirement. Id.
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    7. ACA contends that extending the HD carriage exemption to cable 
systems

[[Page 16350]]

with 2,500 or fewer subscribers (and that are not affiliated with an 
operator serving more than 10 percent of all MVPD subscribers) also 
remains justified because such systems still lack the financial 
resources necessary to purchase equipment needed to provide HD 
signals.\26\ To support its assertion, ACA points to survey data 
showing that an overwhelming number of systems in this category 
reported that their net income from video services has declined over 
the last three years.\27\ ACA contends, based on its survey, that many 
such systems would need to purchase additional equipment to offer must-
carry signals in HD, and that doing so would be financially burdensome 
for them.\28\ ACA argues that requiring these systems to transmit HD 
signals would force them to absorb the equipment costs or pass such 
costs on to subscribers, and that these harms far outweigh any benefits 
derived from an HD carriage mandate.\29\ ACA also highlights concerns 
about cost and compliance that may result from the upcoming broadcast 
spectrum incentive auction because the auction could result in fewer 
stations and/or channel sharing.\30\
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    \26\ Id. at 11-12.
    \27\ Id. at 12-13 and Table 6.
    \28\ Id. at 13-14.
    \29\ Id. at 14. ACA reports that 37.3% of cable systems in this 
category would shut down their systems rather than invest in the 
equipment needed to comply with an HD carriage requirement; 22% 
would risk Commission enforcement action; and 35.6% would absorb or 
pass along to their subscribers the cost of the requisite equipment. 
Id.
    \30\ Id. at 3, 15.
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    8. Moreover, ACA asserts that the number of cable systems relying 
on the HD carriage exemption is declining and will continue to decline 
over the next three years.\31\ In particular, ACA claims that more than 
200 fewer systems are using the HD exemption today than in 2012, and 
that by June 2018, only 73 of the 143 systems that are currently 
relying on the exemption are expected to still be in operation and meet 
the criteria for taking advantage of the exemption.\32\ ACA anticipates 
that this decline in the number of systems will result from system 
shutdowns or system upgrades to increase channel capacity.\33\ ACA 
argues that ``[g]iven . . . the trend of decreasing reliance . . . it 
is appropriate to extend the HD exemption for the relatively few 
remaining operators that continue to rely on the exemption.'' \34\
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    \31\ Id. at 15.
    \32\ Id. at 15-16. We note, however, that the number of ACA 
members reporting that they rely on the HD exemption has increased 
from 52 to 53. See Fifth Report and Order, 77 FR 36178 (2012).
    \33\ Petition at 15-16.
    \34\ Id. at 16.
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    9. Finally, ACA seeks a clarification that cable systems that offer 
video programming only in analog are not required, and have never been 
required, to transmit must-carry signals in HD because such carriage is 
not ``technically feasible'' within the meaning of section 614(b)(4)(A) 
of the Act and its implementing rules.\35\ In particular, ACA contends 
that:
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    \35\ As noted above, section 614(b)(4)(A) of the Act requires 
that cable operators transmit local broadcast signals ``without 
material degradation'' and directs the Commission to ``adopt 
carriage standards to ensure that, to the extent technically 
feasible, the quality of signal processing and carriage provided . . 
. will be no less than that provided . . . for the carriage of any 
other type of signal.'' See 47 U.S.C. 534(b)(4)(A) (emphasis added).

analog-only systems are unable to carry any HD signals. If an 
analog-only system had the capability of carrying an HD signal, 
which can only be done in digital format, the system would no longer 
be, by definition, an analog-only system. It would be a hybrid 
analog/digital system.\36\
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    \36\ See Petition at 17.

ACA claims that a small number of cable systems that rely on the HD 
carriage exemption would benefit from the requested clarification, and 
that this number is decreasing.\37\ Even so, ACA asserts, some analog-
only systems will remain in operation, and many of those systems 
provide the only available video service in rural areas where over-the-
air reception of broadcast signals is infeasible.\38\
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    \37\ Id.
    \38\ Id. ACA also asserts that in some cases, all-analog systems 
provide a locally operated, lower cost service that allows customers 
to receive basic cable programming without the need for set-top 
boxes. Id.
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III. Discussion

    10. We tentatively conclude that it would serve the public interest 
to extend the HD carriage exemption for an additional three years as 
requested by ACA. Based on the results of ACA's survey, we tentatively 
conclude that the exemption is still necessary to protect the 
subscribers of small cable systems from the costs and service 
disruptions that may result from requiring those systems to deliver HD 
signals in HD beginning in June 2015. We seek comment on this tentative 
conclusion. We also seek comment on whether we should retain or revise 
the definition of the category of small cable systems eligible for the 
exemption. The fact that small operators that continue to rely on the 
exemption have, on average, only 348 subscribers per system \39\ 
suggests that our current definition of ``small system'' is overly 
broad. To the extent parties assert that we should restrict further the 
category of small systems eligible for the exemption, what is the 
appropriate small system standard? What, if any, harms would accrue to 
small systems if we were to narrow further the category of systems 
eligible for the exemption? What, if any, benefits would result from 
narrowing the exemption?
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    \39\ Id. at 4-5.
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    11. We seek comment on whether any circumstances have changed since 
release of the Fifth Report and Order that weigh in favor of revisiting 
our decision not to eliminate the HD carriage exemption for systems 
carrying any signal in HD.\40\ As noted, ACA's data indicate that at 
least 20 percent of systems relying on the exemption are currently 
offering some HD digital television services.\41\ In particular, we 
request comment on whether there is any evidence that exempt systems 
that provide HD programming have discriminated unfairly against must-
carry HD signals in favor of other HD signals. We also request comment 
on whether systems that carry a significant amount of HD programming, 
such as ten HD channels, should continue to be able to qualify for the 
exemption.
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    \40\ As noted above, the Commission, in the Fifth Report and 
Order, declined to eliminate application of the HD carriage 
exemption to systems that carry any signal in HD on the grounds that 
a system's ability to offer some HD service did not refute an 
argument that offering additional HD service was burdensome, and 
that not allowing such systems to invoke the exemption would 
discourage them from taking incremental steps to offer more HD 
programming to subscribers.
    \41\ Petition at 5-6.
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    12. In addition, we seek comment on the costs and benefits of the 
exemption for broadcasters and cable subscribers. Commenters should 
quantify any asserted costs or benefits. We also request comment on 
whether any claimed benefits to small cable systems of extending the 
exemption for another three years would outweigh the costs to 
broadcasters and cable subscribers. How many, if any, small systems 
relying on the exemption have received complaints from subscribers 
about the absence or amount of HD programming available to them? ACA's 
data also reveal that some systems relying on the exemption currently 
provide broadband service.\42\ How many, if any, such systems would 
reduce or eliminate such service if required to carry HD signals in 
June 2015?
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    \42\ Id. at 5-7 and Tables 2, 3.
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    13. We also invite comment on whether an additional three years 
will provide adequate time for eligible systems to upgrade their 
facilities to

[[Page 16351]]

provide HD signals. Although ACA's data indicate that at least 200 
fewer cable systems are relying on the HD exemption today than did in 
2012, the data also indicate that the number of ACA cable operator 
members relying on the HD exemption has not changed significantly. 
Therefore, do these data points reflect actual progress of ACA members 
coming into compliance with the HD carriage requirement? For example, 
to what extent is the decrease in the number of systems relying on the 
exemption attributable to the fact that some operators have expanded 
system capacity to provide signals in HD (thus rendering them 
ineligible for the exemption), or the fact that systems have ceased 
operations? \43\ In addition, ACA estimates that more than 70 of the 
143 systems that currently invoke the exemption are expected to be 
eligible for the exemption in June 2018.\44\ To the extent some systems 
expect that they still will be unable to provide HD signals in three 
years, when would such systems likely be able to comply with an HD 
carriage requirement? That is, we invite comment on the plans of these 
small systems to upgrade to HD. We seek comment on whether there are 
any systems for which the costs of providing HD signals likely will 
outweigh the benefits for the indefinite future, and, if so, the 
projected number of such systems. We invite comment on any other issues 
that are relevant to our determination whether to extend the HD 
carriage exemption for small cable systems. We also seek comment on any 
other approach to this issue that would appropriately balance the 
interest of broadcast stations in being carried in HD and the technical 
and financial limitations some small cable operators face. In addition, 
we request comment on whether there is any merit to ACA's argument that 
requiring small systems to provide HD signals at this time would be 
inequitable given the uncertainty surrounding the broadcast spectrum 
incentive auction.
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    \43\ Although ACA states that ``some systems that relied on the 
HD exemption in the past no longer rely upon it because a business 
case materialized for an upgrade to occur,'' ACA also asserts that 
``system shutdowns [will be] the primary reason that there will be 
fewer systems relying on the HD exemption'' in the next three years. 
Petition at 16 and n.33. ACA thus contends that ``the benefit of the 
HD exemption is not only in avoiding the hastening of system 
closings, but in giving systems time to make upgrades possible.'' 
Id.
    \44\ Id. at 15-16.
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    14. We note that the HD exemption was not intended to be permanent 
and that, based on ACA's survey, a number of systems must make greater 
progress in complying with the HD carriage requirement. Assuming we 
were to adopt our tentative conclusion to extend the exemption for 
three more years, we seek comment on what steps we can take to 
facilitate such compliance within that time period. For example, should 
we require individual cable systems that rely on the exemption to file 
information with the Commission indicating such, so that we can better 
understand the particular technical and financial challenges faced by 
these systems and track each system's progress for coming into 
compliance with the HD carriage requirement?
    15. Finally, we seek comment on ACA's request for clarification 
that all-analog systems are not subject to the HD carriage requirement 
because such carriage is technically infeasible under Section 
614(b)(4)(A) of the Act and its implementing rules. How many cable 
systems that currently rely on the exemption are all-analog systems? To 
what extent are all-analog systems capable of passing the ATSC \45\ 
digital broadcast signal through to their customers for reception on 
digital televisions? What upgrades, if any, to an all-analog system's 
cable amplifiers and other equipment outside the headend would be 
required to support passing through the ATSC signal on a cable channel? 
What upgrades would be required in the headend?
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    \45\ Section 73.682(d) of the Commission's rules prescribes that 
digital broadcast television signals must comply with certain 
privately developed engineering protocols that the rule incorporates 
by reference. See 47 CFR 73.682(d). The channel identification data 
that a station transmits, for example, must comply with ``ATSC A/
65C: `ATSC Program and System Information Protocol for Terrestrial 
Broadcast and Cable, Revision C With Amendment No. 1 dated May 9, 
2006,' (January 2, 2006).'' Id.
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IV. Procedural Matters

A. Regulatory Flexibility Act

    16. As required by the Regulatory Flexibility Act of 1980, as 
amended (``RFA''),\46\ the Commission has prepared this Initial 
Regulatory Flexibility Act Analysis (``IRFA'') of the possible economic 
impact on a substantial number of small entities by the actions 
proposed in this Fifth FNPRM. Written public comments are requested on 
this IRFA. Comments must be identified as responses to the IRFA and 
must be filed by the deadlines for comments on the Fifth FNPRM as 
indicated on its first page. The Commission will send a copy of the 
Fifth FNPRM, including this IRFA, to the Chief Counsel for Advocacy of 
the Small Business Administration (``SBA'').\47\ In addition, the Fifth 
FNPRM and IRFA (or summaries thereof) will be published in the Federal 
Register.\48\
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    \46\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 through 612, 
has been amended by the Small Business Regulatory Enforcement 
Fairness Act of 1996 (``SBREFA''), Pub. L. 104-121, Title II, 110 
Stat. 857 (1996).
    \47\ See 5 U.S.C. 603(a).
    \48\ See id.
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1. Need for, and Objectives of, the Proposed Rule Changes
    17. In the accompanying Fifth FNPRM, the Commission seeks comment 
on, among other things, whether to extend for an additional three years 
the exemption from the requirement to carry high definition (``HD'') 
broadcast signals under the ``material degradation'' provisions of the 
Communications Act of 1934, as amended, that it granted to certain 
small cable systems in the 2012 Fifth Report and Order (``HD carriage 
exemption'').\49\ The Fifth FNPRM stems from a Petition for Rulemaking 
filed by the American Cable Association principally requesting that the 
Commission extend this exemption, which will expire on June 12, 2015 
without action by the Commission. In the Fifth FNPRM, the Commission 
tentatively concludes that the public interest would be served by 
extending the HD carriage exemption for three years, or until June 12, 
2018. In particular, the Commission tentatively concludes that the HD 
carriage exemption is still necessary to protect the subscribers of 
small cable systems from the costs and service disruptions that may 
result from requiring those systems to deliver HD signals in HD 
beginning in June 2015. The exemption applies to operators of cable 
systems with 2,500 or fewer subscribers that are not affiliated with a 
cable operator serving more than 10% of all MVPD subscribers, and to 
those with an activated channel capacity of 552 MHz or less.
---------------------------------------------------------------------------

    \49\ See Fifth FNPRM at paras. 10-15.
---------------------------------------------------------------------------

2. Legal Basis
    18. The authority for the action proposed in this rulemaking is 
contained in sections 4, 303, 614, and 615 of the Communications Act of 
1934, as amended, 47 U.S.C. 154, 303, 534, and 535.
3. Description and Estimates of the Number of Small Entities to Which 
the Proposed Rules Will Apply
    19. The RFA directs the Commission to provide a description of and, 
where feasible, an estimate of the number of small entities that will 
be affected by the proposed actions if adopted.\50\ The RFA generally 
defines the term ``small entity'' as having the same meaning as

[[Page 16352]]

the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \51\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\52\ A ``small business concern'' is one 
which: (1) Is independently owned and operated; (2) is not dominant in 
its field of operation; and (3) satisfies any additional criteria 
established by the Small Business Administration (SBA).\53\ The action 
proposed herein will affect small cable system operators and small 
television broadcast stations. A description of these small entities, 
as well as an estimate of the number of such small entities, is 
provided below.
---------------------------------------------------------------------------

    \50\ 5 U.S.C. 603(b)(3).
    \51\ 5 U.S.C. 601(b).
    \52\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \53\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    20. Cable Companies and Systems. The Commission has developed its 
own small business size standards for the purpose of cable rate 
regulation. Under the Commission's rules, a ``small cable company'' is 
one serving 400,000 or fewer subscribers nationwide.\54\ Industry data 
indicate that there are currently 660 cable operators.\55\ Of this 
total, all but ten cable operators nationwide are small under this size 
standard.\56\ In addition, under the Commission's rate regulation 
rules, a ``small system'' is a cable system serving 15,000 or fewer 
subscribers.\57\ Current Commission records show 4,629 cable systems 
nationwide.\58\ Of this total, 4,057 cable systems have less than 
20,000 subscribers, and 572 systems have 20,000 or more subscribers, 
based on the same records. Thus, under this standard, we estimate that 
most cable systems are small entities.
---------------------------------------------------------------------------

    \54\ 47 CFR 76.901(e). The Commission determined that this size 
standard equates approximately to a size standard of $100 million or 
less in annual revenues.
    \55\ NCTA, Industry Data, Number of Cable Operators and Systems, 
http://www.ncta.com/Statistics.aspx (visited October 13, 2014). 
Depending upon the number of homes and the size of the geographic 
area served, cable operators use one or more cable systems to 
provide video service.
    \56\ See SNL Kagan, ``Top Cable MSOs--12/12 Q''; available at 
http://www.snl.com/InteractiveX/TopCableMSOs.aspx?period=2012Q4&sortcol=subscribersbasic&sortorder=desc.
    \57\ 47 CFR 76.901(c).
    \58\ The number of active, registered cable systems comes from 
the Commission's Cable Operations and Licensing System (COALS) 
database on October 10, 2014. A cable system is a physical system 
integrated to a principal headend.
---------------------------------------------------------------------------

    21. Cable System Operators (Telecom Act Standard). The 
Communications Act of 1934, as amended, also contains a size standard 
for small cable system operators, which is ``a cable operator that, 
directly or through an affiliate, serves in the aggregate fewer than 1 
percent of all subscribers in the United States and is not affiliated 
with any entity or entities whose gross annual revenues in the 
aggregate exceed $250,000,000.'' \59\ There are approximately 54 
million cable video subscribers in the United States today.\60\ 
Accordingly, an operator serving fewer than 540,000 subscribers shall 
be deemed a small operator if its annual revenues, when combined with 
the total annual revenues of all its affiliates, do not exceed $250 
million in the aggregate.\61\ Based on available data, we find that all 
but ten incumbent cable operators are small entities under this size 
standard.\62\ 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.\63\ Although 
it seems certain that some of these cable system operators are 
affiliated with entities whose gross annual revenues exceed 
$250,000,000, 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.
---------------------------------------------------------------------------

    \59\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
    \60\ See NCTA, Industry Data, Cable's Customer Base, http://www.ncta.com/industry-data (visited October 13, 2014).
    \61\ 47 CFR 76.901(f).
    \62\ See NCTA, Industry Data, Top 25 Multichannel Video Service 
Customers (2012), http://www.ncta.com/industry-data (visited Aug. 
30, 2013).
    \63\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's 
finding that the operator does not qualify as a small cable operator 
pursuant to Section 76.901(f) of the Commission's rules. See 47 CFR 
76.901(f).
---------------------------------------------------------------------------

    22. Open Video Systems. The open video system (OVS) framework was 
established in 1996, and is one of four statutorily recognized options 
for the provision of video programming services by local exchange 
carriers.\64\ The OVS framework provides opportunities for the 
distribution of video programming other than through cable systems. 
Because OVS operators provide subscription services,\65\ OVS falls 
within the SBA small business size standard covering cable services, 
which is ``Wired Telecommunications Carriers.'' \66\ The SBA has 
developed a small business size standard for this category, which is: 
All such businesses having 1,500 or fewer employees.\67\ Census data 
for 2007 shows that there were 3,188 firms that operated for that 
entire year.\68\ Of this total, 2,940 firms had fewer than 100 
employees, and 248 firms had 100 or more employees.\69\ Therefore, 
under this size standard, we estimate that the majority of these 
businesses can be considered small entities.
---------------------------------------------------------------------------

    \64\ 47 U.S.C. 571(a)(3) through (4).
    \65\ See 47 U.S.C. 573.
    \66\ See 13 CFR 121.201, 2012 NAICS code 517110. This category 
of Wired Telecommunications Carriers is defined in part as follows: 
``This industry comprises establishments primarily engaged in 
operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single 
technology or a combination of technologies. 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.'' U.S. Census Bureau, 2012 NAICS Definitions, ``517110 
Wired Telecommunications Carriers,'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \67\ 13 CFR 121.201; 2012 NAICS code 517110.
    \68\ U.S. Census Bureau, 2007 Economic Census. See U.S. Census 
Bureau, American FactFinder, ``Information: Subject Series--Estab 
and Firm Size: Employment Size of Establishments for the United 
States: 2007--2007 Economic Census,'' NAICS code 517110, Table 
EC0751SSSZ5; available at http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
    \69\ Id.
---------------------------------------------------------------------------

    23. Television Broadcasting. This economic Census category 
``comprises establishments primarily engaged in broadcasting images 
together with sound.'' \70\ The SBA has created the following small 
business size standard for such businesses: Those having $38.5 million 
or less in annual receipts.\71\ The 2007 U.S. Census indicates that 808 
firms in this category operated in that year. Of that number, 709 had 
annual receipts of $25,000,000 or less, and 99 had annual receipts of 
more than $25,000,000.\72\ Because the Census has no additional 
classifications that could serve as a basis for determining the number 
of stations whose receipts exceeded $38.5 million in that year, we 
conclude that the majority of television

[[Page 16353]]

broadcast stations were small under the applicable SBA size standard.
---------------------------------------------------------------------------

    \70\ U.S. Census Bureau, 2012 NAICS Definitions, ``515120 
Television Broadcasting,'' at http://www.census.gov./cgi-bin/sssd/
naics/naicsrch.
    \71\ 13 CFR 121.201; 2012 NAICS code 515120.
    \72\ U.S. Census Bureau, Table No. EC0751SSSZ4, Information: 
Subject Series--Establishment and Firm Size: Receipts Size of Firms 
for the United States: 2007 (515120), http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    24. Apart from the U.S. Census, the Commission has estimated the 
number of licensed commercial television stations to be 1,387 
stations.\73\ Of this total, 1,221 stations (or about 88 percent) had 
revenues of $38.5 million or less, according to Commission staff review 
of the BIA Kelsey Inc. Media Access Pro Television Database (BIA) on 
July 2, 2014. In addition, the Commission has estimated the number of 
licensed noncommercial educational (NCE) television stations to be 
395.\74\ NCE stations are non-profit, and therefore considered to be 
small entities.\75\ Based on these data, we estimate that the majority 
of television broadcast stations are small entities.
---------------------------------------------------------------------------

    \73\ See Broadcast Station Totals as of June 30, 2014, Press 
Release (MB rel. July 9, 2014) (Broadcast Station Totals) at https://apps.fcc.gov/edocs_public/attachmatch/DOC-328096A1.pdf.
    \74\ See Broadcast Station Totals, supra.
    \75\ See generally 5 U.S.C. 601(4), (6).
---------------------------------------------------------------------------

    25. We note, however, that in assessing whether a business concern 
qualifies as ``small'' under the above definition, business (control) 
affiliations \76\ must be included. Because we do not include or 
aggregate revenues from affiliated companies in determining whether an 
entity meets the revenue threshold noted above, our estimate of the 
number of small entities affected is likely overstated. In addition, we 
note that one element of the definition of ``small business'' is 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, our estimate of small television 
stations potentially affected by the proposed rules includes those that 
could be dominant in their field of operation. For this reason, such 
estimate likely is over-inclusive.
---------------------------------------------------------------------------

    \76\ ``[Business concerns] are affiliates of each other when one 
concern controls or has the power to control the other or a third 
party or parties controls or has the power to control both.'' 13 CFR 
21.103(a)(1).
---------------------------------------------------------------------------

4. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements
    26. The accompanying Fifth FNPRM seeks comment on, among other 
things, whether to extend for an additional three years the HD carriage 
exemption, which would affect small cable system operators and 
television broadcast stations. The exemption benefits small cable 
system operators by providing them with continued flexibility, and 
imposes no new regulatory compliance burdens on small television 
broadcast stations who need take no action as a result of the proposed 
extension.
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 or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities.\77\ We seek comment on the applicability of any of these 
alternatives to affected small entities.
---------------------------------------------------------------------------

    \77\ 5 U.S.C. 603(c)(1) through (c)(4).
---------------------------------------------------------------------------

    28. Extending the HD carriage exemption likely would not have an 
adverse economic impact on any small entities, and would have a 
positive economic impact on small cable system operators that choose to 
take advantage of the exemption. In addition, extending the exemption 
would not impose any significant burdens on small television stations. 
We invite small entities to submit comment on the impact of extending 
the HD carriage exemption, and on how the Commission could minimize any 
potential burdens on small entities.
6. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rule
    29. None.

B. Paperwork Reduction Act

    30. This document seeks comment on potential information collection 
requirements. The Commission, as part of its continuing effort to 
reduce paperwork burdens, invites the general public and the Office of 
Management and Budget (OMB) to comment on the potential information 
collection requirements contained in this document, as required by the 
Paperwork Reduction Act of 1995, Public Law 104-13.\78\ In addition, 
pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 
107-198, see 44 U.S.C. 3506(c)(4), we seek specific comment on how we 
might further reduce the potential information collection burden for 
small business concerns with fewer than 25 employees.\79\
---------------------------------------------------------------------------

    \78\ Paperwork Reduction Act of 1995 (``PRA''), Pub. L. 104-13, 
109 Stat 163 (1995) (codified in Chapter 35 of Title 44 U.S.C.).
    \79\ The Small Business Paperwork Relief Act of 2002 (SBPRA), 
Pub. L. 107-198, 116 Stat 729 (2002) (codified in Chapter 35 of 
title 44 U.S.C.); see 44 U.S.C. 3506(c)(4).
---------------------------------------------------------------------------

C. Ex Parte Rules

    31. The proceeding this document initiates shall be treated as a 
``permit-but-disclose'' proceeding in accordance with the Commission's 
ex parte rules.\80\ Persons making ex parte presentations must file a 
copy of any written presentation or a memorandum summarizing any oral 
presentation within two business days after the presentation (unless a 
different deadline applicable to the Sunshine period applies). Persons 
making oral ex parte presentations are reminded that memoranda 
summarizing the presentation must (1) list all persons attending or 
otherwise participating in the meeting at which the ex parte 
presentation was made, and (2) summarize all data presented and 
arguments made during the presentation. If the presentation consisted 
in whole or in part of the presentation of data or arguments already 
reflected in the presenter's written comments, memoranda or other 
filings in the proceeding, the presenter may provide citations to such 
data or arguments in his or her prior comments, memoranda, or other 
filings (specifying the relevant page and/or paragraph numbers where 
such data or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with rule 1.1206(b). In proceedings governed by 
rule 1.49(f) or for which the Commission has made available a method of 
electronic filing, written ex parte presentations and memoranda 
summarizing oral ex parte presentations, and all attachments thereto, 
must be filed through the electronic comment filing system available 
for that proceeding, and must be filed in their native format (e.g., 
.doc, .xml, .ppt, searchable .pdf). Participants in this proceeding 
should familiarize themselves with the Commission's ex parte rules.
---------------------------------------------------------------------------

    \80\ 47 CFR 1.1200 et seq.
---------------------------------------------------------------------------

D. Filing Requirements

    32. Pursuant to sections 1.415 and 1.419 of the Commission's 
rules,\81\ interested parties may file comments and reply comments on 
or before the dates indicated on the first page of this

[[Page 16354]]

document. Comments may be filed using the Commission's Electronic 
Comment Filing System (ECFS).
---------------------------------------------------------------------------

    \81\ See 47 CFR 1.415, 1419.
---------------------------------------------------------------------------

     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/.
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing. If more than one docket 
or rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number.
    33. Filings can be sent by hand or messenger delivery, by 
commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail. All filings must be addressed to the Commission's 
Secretary, Office of the Secretary, Federal Communications Commission.
     All hand-delivered or messenger-delivered paper filings 
for the Commission's Secretary must be delivered to FCC Headquarters at 
445 12th Street SW., Room TW-A325, Washington, DC 20554. The filing 
hours are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held 
together with rubber bands or fasteners. Any envelopes and boxes must 
be disposed of before entering the building.
     Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743.
     U.S. Postal Service first-class, Express, and Priority 
mail must be addressed to 445 12th Street SW., Washington DC 20554.
    34. People with Disabilities: To request materials in accessible 
formats for people with disabilities (braille, large print, electronic 
files, audio format), send an email to [email protected] or call the 
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
    35. Availability of Documents. Comments, reply comments, and ex 
parte submissions will be available for public inspection during 
regular business hours in the FCC Reference Center, Federal 
Communications Commission, 445 12th Street SW., CY-A257, Washington, DC 
20554. These documents will also be available via ECFS. Documents will 
be available electronically in ASCII, Microsoft Word, and/or Adobe 
Acrobat.
    36. For Additional Information: Contact Raelynn Remy of the Policy 
Division, Media Bureau, at [email protected] or (202) 418-2936.

V. Ordering Clauses

    37. It is Ordered that, pursuant to the authority found in sections 
4, 303, 614, and 615 of the Communications Act of 1934, as amended, 47 
U.S.C. 154, 303, 534, and 535, this Fifth FNPRM is adopted.
    38. It is further ordered that the Consumer and Governmental 
Affairs Bureau, Reference Information Center, shall send a copy of this 
Fifth FNPRM, including the Initial Regulatory Flexibility Act Analysis, 
to the Chief Counsel for Advocacy of the Small Business Administration.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2015-06943 Filed 3-26-15; 8:45 am]
BILLING CODE 6712-01-P



                                                                                Federal Register / Vol. 80, No. 59 / Friday, March 27, 2015 / Proposed Rules                                                16347

                                                      under CAA section 107(d)(3)(E) for                      MVEBs for 2025 under 40 CFR                           application of those requirements would
                                                      redesignation from nonattainment to                     93.118(f)(1).                                         be inconsistent with the CAA; and
                                                      attainment for the 1997 Annual PM2.5                                                                             • Do not provide EPA with the
                                                                                                              XI. Statutory and Executive Order
                                                      NAAQS. On this basis, EPA is                                                                                  discretionary authority to address, as
                                                                                                              Reviews
                                                      proposing to approve Tennessee’s                                                                              appropriate, disproportionate human
                                                      redesignation request for the Tennessee                    Under the CAA, redesignation of an                 health or environmental effects, using
                                                      portion of the Chattanooga TN-GA-AL                     area to attainment and the                            practicable and legally permissible
                                                      Area.                                                   accompanying approval of a                            methods, under Executive Order 12898
                                                         Second, EPA is proposing to approve                  maintenance plan under section                        (59 FR 7629, February 16, 1994).
                                                      the maintenance plan for the Tennessee                  107(d)(3)(E) are actions that affect the                 In addition, the SIP is not approved
                                                      portion of the Chattanooga TN-GA-AL                     status of a geographical area and do not              to apply on any Indian reservation land
                                                      Area, including the PM2.5 and NOX                       impose any additional regulatory                      or in any other area where EPA or an
                                                      MVEBs for 2025 submitted by                             requirements on sources beyond those                  Indian tribe has demonstrated that a
                                                      Tennessee into the State’s SIP (under                   imposed by state law. A redesignation to              tribe has jurisdiction. In those areas of
                                                      section 175A). The maintenance plan                     attainment does not in and of itself                  Indian country, the rule does not have
                                                      demonstrates that the Area will                         create any new requirements, but rather               tribal implications as specified by
                                                      continue to maintain the 1997 Annual                    results in the applicability of                       Executive Order 13175 (65 FR 67249,
                                                      PM2.5 NAAQS, and the budgets meet all                   requirements contained in the CAA for                 November 9, 2000), nor will it impose
                                                      of the adequacy criteria contained in 40                areas that have been redesignated to                  substantial direct costs on tribal
                                                      CFR 93.118(e)(4) and (5). Further, as                   attainment. Moreover, the Administrator               governments or preempt tribal law.
                                                      part of today’s action, EPA is describing               is required to approve a SIP submission
                                                      the status of its adequacy determination                that complies with the provisions of the              List of Subjects
                                                      for transportation conformity purposes                  Act and applicable Federal regulations.               40 CFR Part 52
                                                      for the PM2.5 and NOX MVEBs for 2025                    42 U.S.C. 7410(k); 40 CFR 52.02(a).
                                                      under 40 CFR 93.118(f)(1). Within 24                                                                            Environmental protection, Air
                                                                                                              Thus, in reviewing SIP submissions,
                                                      months from the effective date of EPA’s                                                                       pollution control, Incorporation by
                                                                                                              EPA’s role is to approve state choices,
                                                      adequacy determination for the MVEBs                                                                          reference, Intergovernmental relations,
                                                                                                              provided that they meet the criteria of
                                                      or the effective date for the final rule                                                                      Particulate matter, Reporting and
                                                                                                              the CAA. Accordingly, these proposed
                                                      approving the MVEBs into the                                                                                  recordkeeping requirements, Sulfur
                                                                                                              actions merely approve state law as
                                                      Tennessee SIP, whichever is earlier, the                                                                      oxides, Volatile organic compounds.
                                                                                                              meeting federal requirements and do not
                                                      transportation partners will need to                    impose additional requirements beyond                 40 CFR Part 81
                                                      demonstrate conformity to the new NOX                   those imposed by state law. For that
                                                      and PM2.5 MVEBs pursuant to 40 CFR                                                                              Environmental protection, Air
                                                                                                              reason, these proposed actions:                       pollution control.
                                                      93.104(e).                                                 • Is not a significant regulatory action
                                                         If finalized, approval of the                                                                                Authority: 42 U.S.C. 7401 et seq.
                                                                                                              subject to review by the Office of
                                                      redesignation request would change the                                                                          Dated: March 11, 2015.
                                                                                                              Management and Budget under
                                                      official designation of Tennessee
                                                                                                              Executive Orders 12866 (58 FR 51735,                  Heather McTeer Toney,
                                                      portion of the Chattanooga TN-GA-AL
                                                                                                              October 4, 1993) and 13563 (76 FR 3821,               Regional Administrator, Region 4.
                                                      Area for the 1997 Annual PM2.5
                                                                                                              January 21, 2011);                                    [FR Doc. 2015–06963 Filed 3–26–15; 8:45 am]
                                                      NAAQS, found at 40 CFR part 81 from
                                                      nonattainment to attainment.                               • Do not impose an information                     BILLING CODE 6560–50–P
                                                                                                              collection burden under the provisions
                                                      X. What is the effect of EPA’s proposed                 of the Paperwork Reduction Act (44
                                                      actions?                                                U.S.C. 3501 et seq.);
                                                                                                                                                                    FEDERAL COMMUNICATIONS
                                                         EPA’s proposed actions establish the                    • Are certified as not having a
                                                                                                                                                                    COMMISSION
                                                      basis upon which EPA may take final                     significant economic impact on a
                                                      action on the issues being proposed for                 substantial number of small entities                  47 CFR Part 76
                                                      approval today. Approval of                             under the Regulatory Flexibility Act (5
                                                      Tennessee’s redesignation request                       U.S.C. 601 et seq.);                                  [CS Docket No. 98–120; FCC 15–29]
                                                      would change the legal designation of                      • Do not contain any unfunded
                                                                                                              mandate or significantly or uniquely                  Carriage of Digital Television
                                                      Hamilton County in Tennessee for the
                                                                                                              affect small governments, as described                Broadcast Signals
                                                      1997 Annual PM2.5 NAAQS, found at 40
                                                      CFR part 81, from nonattainment to                      in the Unfunded Mandates Reform Act                   AGENCY:  Federal Communications
                                                      attainment. Approval of TDEC’s request                  of 1995 (Pub. L. 104–4);                              Commission.
                                                      would also incorporate a plan for                          • Do not have Federalism                           ACTION: Proposed rule.
                                                      maintaining the 1997 Annual PM2.5                       implications as specified in Executive
                                                      NAAQS in the Chattanooga TN-GA-AL                       Order 13132 (64 FR 43255, August 10,                  SUMMARY:   In this document, the
                                                      Area through 2025 into the Tennessee                    1999);                                                Commission seeks comment on a
                                                      SIP. The maintenance plan includes                         • Are not economically significant                 Petition for Rulemaking filed by the
                                                      contingency measures to remedy any                      regulatory actions based on health or                 American Cable Association (‘‘ACA’’)
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      future violations of the 1997 Annual                    safety risks subject to Executive Order               requesting, among other things, that the
                                                      PM2.5 NAAQS and procedures for                          13045 (62 FR 19885, April 23, 1997);                  Commission extend for an additional
                                                      evaluation of potential violations. The                    • Are not significant regulatory                   three years the exemption from the
                                                      maintenance plan also includes NOX                      actions subject to Executive Order                    requirement to carry high definition
                                                      and PM2.5 MVEBs for the Tennessee                       13211 (66 FR 28355, May 22, 2001);                    (‘‘HD’’) broadcast signals under the
                                                      portion of the Chattanooga TN-GA-AL                        • Are not subject to requirements of               ‘‘material degradation’’ provisions of the
                                                      Area. Additionally, EPA is notifying the                Section 12(d) of the National                         Communications Act of 1934, as
                                                      public of the status of its adequacy                    Technology Transfer and Advancement                   amended (‘‘the Act’’) that it granted to
                                                      determination for the NOX and PM2.5                     Act of 1995 (15 U.S.C. 272 note) because              certain small cable systems in the 2012


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                                                      16348                     Federal Register / Vol. 80, No. 59 / Friday, March 27, 2015 / Proposed Rules

                                                      Fifth Report and Order. This exemption                  on March 11, 2015 and released on                     of 1934, as amended (‘‘the Act’’) 2 that
                                                      is slated to expire on June 12, 2015                    March 12, 2015. The full text is                      it granted to certain small cable systems
                                                      absent further action by the                            available for public inspection and                   in the Fifth Report and Order (‘‘HD
                                                      Commission. We tentatively conclude                     copying during regular business hours                 carriage exemption’’).3 This exemption
                                                      that the public interest would be served                in the FCC Reference Center, Federal                  is slated to expire on June 12, 2015
                                                      by extending the HD carriage exemption                  Communications Commission, 445 12th                   absent further action by the
                                                      for three years, or until June 12, 2018.                Street SW., Room CY–A257,                             Commission. As discussed below, we
                                                      DATES: Comments are due on or before                    Washington, DC 20554. This document                   tentatively conclude that the public
                                                      April 16, 2015; reply comments are due                  will also be available via ECFS at                    interest would be served by extending
                                                      on or before April 27, 2015. Written                    http://fjallfoss.fcc.gov/ecfs/. Documents             the HD carriage exemption for three
                                                      comments on the Paperwork Reduction                     will be available electronically in ASCII,            years, or until June 12, 2018. We set
                                                      Act potential information collection                    Microsoft Word, and/or Adobe Acrobat.                 forth below a brief history of the HD
                                                      requirements must be submitted by the                   The complete text may be purchased                    carriage exemption and a summary of
                                                      public, Office of Management and                        from the Commission’s copy contractor,                ACA’s arguments in support of its
                                                      Budget (OMB), and other interested                      445 12th Street SW., Room CY–B402,                    Petition, and seek comment on our
                                                      parties on or before May 26, 2015.                      Washington, DC 20554. Alternative                     tentative conclusion to grant ACA’s
                                                      ADDRESSES: You may submit comments,
                                                                                                              formats are available for people with                 proposal.
                                                      identified by CS Docket No. 98–120, by                  disabilities (Braille, large print,
                                                                                                              electronic files, audio format), by                   II. Background
                                                      any of the following methods:
                                                         • Federal eRulemaking Portal: http://                sending an email to fcc504@fcc.gov or
                                                                                                                                                                      2. Sections 614(b)(4)(A) and 615(g)(2)
                                                      www.regulations.gov. Follow the                         calling the Commission’s Consumer and
                                                                                                                                                                    of the Act require that cable operators
                                                      instructions for submitting comments.                   Governmental Affairs Bureau at (202)
                                                                                                                                                                    carry signals of commercial and
                                                         • Federal Communications                             418–0530 (voice), (202) 418–0432
                                                                                                                                                                    noncommercial broadcast television
                                                      Commission’s Web site: http://                          (TTY).
                                                                                                                 The Fifth FNPRM seeks comment on                   stations, respectively, ‘‘without material
                                                      fjallfoss.fcc.gov/ecfs2/. Follow the                                                                          degradation.’’ 4 In the context of the
                                                      instructions for submitting comments.                   potential information collection
                                                                                                              requirements. If the Commission adopts                carriage of digital signals, the
                                                         • Mail: Filings can be sent by hand or                                                                     Commission has interpreted this
                                                      messenger delivery, by commercial                       any information collection
                                                                                                              requirements, the Commission will                     requirement: (i) To prohibit cable
                                                      overnight courier, or by first-class or                                                                       operators from discriminating in their
                                                      overnight U.S. Postal Service mail. All                 publish a notice in the Federal Register
                                                                                                              inviting the public to comment on the                 carriage between broadcast and non-
                                                      filings must be addressed to the                                                                              broadcast signals; and (ii) to require
                                                      Commission’s Secretary, Office of the                   requirements, as required by the
                                                                                                              Paperwork Reduction Act of 1995,                      cable operators to carry HD broadcast
                                                      Secretary, Federal Communications                                                                             signals to their viewers in HD.5 In
                                                      Commission.                                             Public Law 104–13 (44 U.S.C. 3501
                                                                                                              through 3520). In addition, pursuant to               response to concerns from small cable
                                                         • People with Disabilities: Contact the                                                                    operators about cost and technical
                                                      FCC to request reasonable                               the Small Business Paperwork Relief
                                                                                                              Act of 2002, Public Law 107–198, see 44               capacity, the Commission, in the 2008
                                                      accommodations (accessible format                                                                             Fourth Report and Order, granted a
                                                      documents, sign language interpreters,                  U.S.C. 3506(c)(4), the Commission seeks
                                                                                                              specific comment on how it might                      three-year exemption from the HD
                                                      CART, etc.) by email: FCC504@fcc.gov                                                                          carriage requirement to certain small
                                                      or phone: (202) 418–0530 or TTY: (202)                  ‘‘further reduce the information
                                                                                                              collection burden for small business                  cable systems.6 Specifically, the
                                                      418–0432.                                                                                                     Commission exempted small cable
                                                         In addition to filing comments with                  concerns with fewer than 25
                                                                                                              employees.’’ The Commission, as part of               systems with 2,500 or fewer subscribers
                                                      the Secretary, a copy of any comments                                                                         that are not affiliated with a cable
                                                      on the Paperwork Reduction Act                          its continuing effort to reduce
                                                                                                              paperwork burdens, invites the general                operator serving more than 10 percent of
                                                      potential information collection                                                                              all MVPD subscribers, and those with an
                                                      requirements contained herein should                    public and the Office of Management
                                                                                                              and Budget (OMB) to comment on the                    activated channel capacity of 552 MHz
                                                      be submitted to the Federal                                                                                   or less.
                                                      Communications Commission via email                     information collection requirements
                                                      to PRA@fcc.gov. For detailed                            contained in this document, as required
                                                      instructions for submitting comments                    by the Paperwork Reduction Act of                       2 See 47 U.S.C. 534(b)(4)(A), 535(g)(2) (material

                                                                                                              1995, Public Law 104–13. Public and                   degradation requirements relating to signals of local
                                                      and additional information on the                                                                             commercial and noncommercial television stations,
                                                      rulemaking process, see the                             agency comments are due May 26, 2015.                 respectively).
                                                                                                                                                                      3 See Carriage of Digital Television Broadcast
                                                      SUPPLEMENTARY INFORMATION section of                    Synopsis
                                                                                                                                                                    Signals: Amendment to Part 76 of the Commission’s
                                                      this document.                                          I. Introduction                                       rules, Docket No. CS 98–120, Fifth Report and
                                                      FOR FURTHER INFORMATION CONTACT:                                                                              Order, 77 FR 36178 (2012) (‘‘Fifth Report and
                                                      Raelynn Remy of the Policy Division,                       1. In this Fifth FNPRM, we seek                    Order’’).
                                                      Media Bureau at (202) 418–2120 or                       comment on a Petition for Rulemaking                    4 See section 614(b)(4)(A) of the Act (47 U.S.C.


                                                      Raelynn.Remy@fcc.gov. For additional                    filed by the American Cable Association               534(b)(4)(A)). See also Section 615(g)(2) of the Act.
                                                                                                              (‘‘ACA’’) 1 requesting, among other                   See 47 U.S.C. 535(g)(2). See also 47 CFR 76.62(b)
                                                      information concerning the Paperwork                                                                          through (d), (h).
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                                                      Reduction Act information collection                    things, that the Commission extend for                  5 See Carriage of Digital Television Broadcast

                                                      requirements contained in this                          an additional three years the exemption               Signals: Amendment to Part 76 of the Commission’s
                                                      document, send an email to PRA@                         from the requirement to carry high                    rules, Docket No. CS 98–120, Third Report and
                                                                                                              definition (‘‘HD’’) broadcast signals                 Order and Third Further Notice of Proposed
                                                      fcc.gov or contact Cathy Williams at                                                                          Rulemaking, 73 FR 6043 (2007) (‘‘Viewability
                                                      (202) 418–2918.                                         under the ‘‘material degradation’’                    Order’’).
                                                                                                              provisions of the Communications Act                    6 See Carriage of Digital Television Broadcast
                                                      SUPPLEMENTARY INFORMATION: This is a
                                                                                                                                                                    Signals: Amendment to Part 76 of the Commission’s
                                                      summary of the Commission’s Fifth                         1 See American Cable Association Petition for       rules, Docket No. CS 98–120, Fourth Report and
                                                      Further Notice of Proposed Rulemaking                   Rulemaking, CS Docket No. 98–120 (filed Jan. 27,      Order, 73 FR 61742 (2008) (‘‘Fourth Report and
                                                      (‘‘Fifth FNPRM’’), FCC 15–29, adopted                   2015) (‘‘Petition’’).                                 Order’’).



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                                                                                Federal Register / Vol. 80, No. 59 / Friday, March 27, 2015 / Proposed Rules                                                       16349

                                                         3. The exemption from this material                      4. On January 28, 2015, ACA filed its                further that these systems offer an
                                                      degradation requirement permits such                     Petition requesting that the                            average of 2.5 must-carry stations in a
                                                      systems to carry broadcast signals in                    Commission: (i) Commence a                              ‘‘down-converted’’ format only.19 Given
                                                      standard definition (‘‘SD’’) digital and/                rulemaking proceeding to extend for an                  this data, ACA asserts, imposing an HD
                                                      or analog format, even if the signals are                additional three years the HD carriage                  carriage requirement at this time would
                                                      broadcast in HD, so long as all                          exemption; and (ii) clarify that analog-                be as detrimental to small systems today
                                                      subscribers can receive and view the                     only cable systems are not required, and                as it was when the Commission initially
                                                      signal.7 The Commission provided that                    have never been required, to transmit                   granted the exemption.20
                                                      the exemption would expire three years                   must-carry signals in HD.12 In general,                    6. ACA argues that applying the HD
                                                      after the conclusion of the DTV                          ACA contends that the HD carriage                       carriage exemption to cable systems
                                                      transition, but stated that it would                     exemption has worked as intended by                     with 552 MHz or less of channel
                                                      consider whether to extend the                           providing eligible systems with                         capacity is still justified because such
                                                      exemption in its final year.8 After                      additional time to provide must-carry                   systems continue to face significant
                                                      conducting that review,9 the                             signals in HD, but that the exemption is                bandwidth constraints that affect their
                                                      Commission, in the 2012 Fifth Report                     still needed to protect a small number                  ability to provide must-carry signals in
                                                      and Order, extended for an additional                    of systems and their subscribers from                   both analog and HD format.21 To
                                                      three years, or until June 12, 2015, the                 the potential costs and service                         support its assertion, ACA points to
                                                      HD carriage exemption for certain small                  disruptions that would result from                      survey data demonstrating that for 81%
                                                      cable systems.10 The Commission stated                   immediate compliance with an HD                         of respondents with a capacity of 552
                                                      that the exemption was not intended to                   carriage requirement.13 In support of its               MHz or less, the amount of unused
                                                      be permanent and that its purpose was                    request for an extension, ACA points to                 channel capacity that is available for
                                                      ‘‘to provide small systems additional                    data from a recent survey 14 that shows                 new channels or services either has
                                                      time to upgrade and, where necessary,                    that roughly 6%, or 53 of its members,                  decreased 22 or remained the same 23 in
                                                      expand their systems to come into full                   continue to rely on it.15                               the past three years. ACA asserts further
                                                      compliance with the material                                5. With respect to the category of                   that a substantial majority of survey
                                                      degradation provisions . . . by carrying                 small systems that have a capacity of                   respondents in this category report that
                                                      HD versions of all HD broadcast signals                  552 MHz or less, ACA reports that 42                    they cannot deliver HD signals without
                                                      without having to make relatively large                  respondents (that account for at least                  changing existing channels or services,
                                                      expenditures over a short period of                      117 systems serving a total of 35,758                   and that it would be burdensome for
                                                      time.’’ 11                                               subscribers, or an average of 306                       them to make available channel capacity
                                                                                                               subscribers per system) continue to rely                for HD signals.24 ACA contends that
                                                         7 Id., para. 5. The Commission concluded that         on the HD carriage exemption.16                         imposing an HD carriage requirement at
                                                      cable operators, regardless of system size, need not     Similarly, with respect to the category of              this time would harm subscribers of
                                                      carry an SD digital version of a broadcast station’s     systems that serve 2,500 or fewer                       these systems by forcing such systems:
                                                      signal, in addition to the analog version, to satisfy
                                                      the material degradation requirement, because both
                                                                                                               subscribers and that are not affiliated                 (i) To drop channels; (ii) to continue
                                                      an SD digital version and an analog version of the       with an operator serving more than 10                   providing signals only in a down-
                                                      digital broadcast signal received at the headend         percent of all MVPD subscribers, ACA                    converted format, thereby risking
                                                      should have the same 480i resolution; thus, there        reports that 53 respondents (that                       Commission enforcement action; or (iii)
                                                      should be no perceivable difference between the
                                                      two versions of the signal. Id.
                                                                                                               account for 143 systems serving a total                 to cease operations entirely.25
                                                         8 See id., para. 11. See also Carriage of Digital     of 49,790 subscribers, or an average of                    7. ACA contends that extending the
                                                      Television Broadcast Signals: Amendment to Part          348 subscribers per system) 17 still rely               HD carriage exemption to cable systems
                                                      76 of the Commission’s rules, Docket No. CS 98–          on the exemption.18 The survey reveals
                                                      120, Fourth Further Notice of Proposed Rulemaking                                                                2.5 must-carry stations in a down-converted format
                                                      and Declaratory Order, 77 FR 9187 (2012) (‘‘Fourth                                                               only; (ii) only 25.9% of those systems offer some
                                                                                                               expressed concern that restricting the exemption
                                                      Further Notice’’). The exemption would have                                                                      HD television services; and (iii) 54.4% of those
                                                                                                               further would create a disincentive for systems to
                                                      expired on February 17, 2012, if Congress had not                                                                systems offer broadband service. Id. and Table 2.
                                                                                                               offer more HD programming incrementally. Id.
                                                      delayed the DTV transition date from February 17,          12 See Petition at 1–2, 18.
                                                                                                                                                                          19 Id. Although ACA does not define ‘‘down-
                                                      2009 until June 12, 2009. Id. In the 2012 Declaratory                                                            converted format,’’ we assume this term refers to a
                                                                                                                 13 Id. at 2.
                                                      Order accompanying the Fourth Further Notice, the                                                                cable system’s conversion of a high definition
                                                                                                                 14 ACA conducted an online survey of its
                                                      Commission clarified that the HD carriage                                                                        broadcast signal to standard definition when
                                                      exemption was effective until June 12, 2012 because      members from October 2 through October 22, 2014         retransmitting the signal to subscribers.
                                                      the HD exemption was intended to remain in effect        to determine the number of systems still relying on        20 Id. at 3.
                                                      for three full years from the DTV transition date. Id.   the HD carriage exemption. Id. at 4, n.8. ACA              21 Id. at 7–8.
                                                         9 See id., para. 3.                                   represents approximately 840 independent MVPDs             22 Id. at 8 and Table 4. According to ACA, the
                                                         10 See id. The Commission extended the                that serve about 7.4 million video subscribers
                                                                                                                                                                       decrease in unused channel capacity has resulted
                                                      exemption based on its finding that the same             primarily in smaller markets and rural areas. ACA’s     from the need of operators to accommodate non-
                                                      financial and capacity constraints that confronted       members range from family-run operations that           broadcast programmers that demand carriage of
                                                      small cable operators when it initially granted the      serve a single town to multiple system operators        additional channels in exchange for access to, or
                                                      exemption in 2008 continued to exist. Id., para. 21.     with small systems. The median number of video          less drastic rate increases for, popular non-
                                                      In particular, the Commission found that the             subscribers per ACA member is 1,060. Id. at 4, n.9.     broadcast channels. Id. at 8–9. ACA also attributes
                                                                                                                 15 Id. at 4–5.
                                                      exemption ‘‘remains necessary to protect the                                                                     this decrease in capacity to the need of operators
                                                                                                                 16 Id. at 5. ACA asserts that the survey further      to allocate capacity for broadband services. Id. at 9.
                                                      viability of small systems and their service to rural
                                                      and smaller market consumers.’’ Id.                      indicates that: (i) Those systems offer an average of      23 ACA asserts that the most common reason
                                                                                                               2.3 must-carry stations in a down-converted format
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                                                         11 Id., para. 22. The Commission declined to                                                                  reported for no change in channel capacity was that
                                                      restrict the exemption further by eliminating its        only; (ii) only 20.5% of those systems offer some       the system was channel locked three years ago and
                                                      application to systems that carry any signal in HD,      HD television services; and (iii) 38.5% of those        remains the same today due to a lack of financial
                                                      as suggested by the National Association of              systems offer broadband service. Id. and Table 1.       resources for capacity expansion or the absence of
                                                      Broadcasters (‘‘NAB’’). In so doing, the Commission        17 ACA reports that all 117 of the systems with       a business case to support such expansion. Id.
                                                      reasoned that the exemption had already been             a capacity of 552 MHz or less also have fewer than         24 Id. and Table 5.

                                                      crafted narrowly to excuse only a limited number         2,500 subscribers, and that 81.8% of the systems           25 Id. at 10. ACA reports that 45.2% of survey

                                                      of systems with certain capacity constraints or low      with fewer than 2,500 subscribers also have a           respondents in this category would shut down their
                                                      subscribership, and that a small system’s ability to     capacity of 552 MHz or less. See Petition at 5–6 and    systems; 14.3% would drop existing channels; and
                                                      offer some HD service did not necessarily render         Tables 1, 2.                                            19% would risk Commission enforcement action
                                                      that system capable of offering additional HD              18 Id. at 6. ACA asserts that the survey further      rather than comply with an HD carriage
                                                      service. Id., para. 23. The Commission also              indicates that: (i) Those systems offer an average of   requirement. Id.



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                                                      16350                     Federal Register / Vol. 80, No. 59 / Friday, March 27, 2015 / Proposed Rules

                                                      with 2,500 or fewer subscribers (and                    operators that continue to rely on the                  that our current definition of ‘‘small
                                                      that are not affiliated with an operator                exemption.’’ 34                                         system’’ is overly broad. To the extent
                                                      serving more than 10 percent of all                        9. Finally, ACA seeks a clarification                parties assert that we should restrict
                                                      MVPD subscribers) also remains                          that cable systems that offer video                     further the category of small systems
                                                      justified because such systems still lack               programming only in analog are not                      eligible for the exemption, what is the
                                                      the financial resources necessary to                    required, and have never been required,                 appropriate small system standard?
                                                      purchase equipment needed to provide                    to transmit must-carry signals in HD                    What, if any, harms would accrue to
                                                      HD signals.26 To support its assertion,                 because such carriage is not                            small systems if we were to narrow
                                                      ACA points to survey data showing that                  ‘‘technically feasible’’ within the                     further the category of systems eligible
                                                      an overwhelming number of systems in                    meaning of section 614(b)(4)(A) of the                  for the exemption? What, if any, benefits
                                                                                                              Act and its implementing rules.35 In                    would result from narrowing the
                                                      this category reported that their net
                                                                                                              particular, ACA contends that:                          exemption?
                                                      income from video services has
                                                                                                              analog-only systems are unable to carry any                11. We seek comment on whether any
                                                      declined over the last three years.27                                                                           circumstances have changed since
                                                                                                              HD signals. If an analog-only system had the
                                                      ACA contends, based on its survey, that                                                                         release of the Fifth Report and Order
                                                                                                              capability of carrying an HD signal, which
                                                      many such systems would need to                         can only be done in digital format, the system          that weigh in favor of revisiting our
                                                      purchase additional equipment to offer                  would no longer be, by definition, an analog-           decision not to eliminate the HD
                                                      must-carry signals in HD, and that doing                only system. It would be a hybrid analog/               carriage exemption for systems carrying
                                                      so would be financially burdensome for                  digital system.36                                       any signal in HD.40 As noted, ACA’s
                                                      them.28 ACA argues that requiring these                 ACA claims that a small number of                       data indicate that at least 20 percent of
                                                      systems to transmit HD signals would                    cable systems that rely on the HD                       systems relying on the exemption are
                                                      force them to absorb the equipment                      carriage exemption would benefit from                   currently offering some HD digital
                                                      costs or pass such costs on to                          the requested clarification, and that this              television services.41 In particular, we
                                                      subscribers, and that these harms far                   number is decreasing.37 Even so, ACA                    request comment on whether there is
                                                      outweigh any benefits derived from an                   asserts, some analog-only systems will                  any evidence that exempt systems that
                                                      HD carriage mandate.29 ACA also                         remain in operation, and many of those                  provide HD programming have
                                                      highlights concerns about cost and                      systems provide the only available                      discriminated unfairly against must-
                                                      compliance that may result from the                     video service in rural areas where over-                carry HD signals in favor of other HD
                                                      upcoming broadcast spectrum incentive                   the-air reception of broadcast signals is               signals. We also request comment on
                                                      auction because the auction could result                infeasible.38                                           whether systems that carry a significant
                                                      in fewer stations and/or channel                        III. Discussion                                         amount of HD programming, such as ten
                                                      sharing.30                                                                                                      HD channels, should continue to be able
                                                                                                                 10. We tentatively conclude that it                  to qualify for the exemption.
                                                        8. Moreover, ACA asserts that the                     would serve the public interest to                         12. In addition, we seek comment on
                                                      number of cable systems relying on the                  extend the HD carriage exemption for an                 the costs and benefits of the exemption
                                                      HD carriage exemption is declining and                  additional three years as requested by                  for broadcasters and cable subscribers.
                                                      will continue to decline over the next                  ACA. Based on the results of ACA’s                      Commenters should quantify any
                                                      three years.31 In particular, ACA claims                survey, we tentatively conclude that the                asserted costs or benefits. We also
                                                      that more than 200 fewer systems are                    exemption is still necessary to protect                 request comment on whether any
                                                      using the HD exemption today than in                    the subscribers of small cable systems                  claimed benefits to small cable systems
                                                      2012, and that by June 2018, only 73 of                 from the costs and service disruptions                  of extending the exemption for another
                                                      the 143 systems that are currently                      that may result from requiring those                    three years would outweigh the costs to
                                                      relying on the exemption are expected                   systems to deliver HD signals in HD                     broadcasters and cable subscribers. How
                                                      to still be in operation and meet the                   beginning in June 2015. We seek                         many, if any, small systems relying on
                                                      criteria for taking advantage of the                    comment on this tentative conclusion.                   the exemption have received complaints
                                                      exemption.32 ACA anticipates that this                  We also seek comment on whether we                      from subscribers about the absence or
                                                      decline in the number of systems will                   should retain or revise the definition of               amount of HD programming available to
                                                      result from system shutdowns or system                  the category of small cable systems                     them? ACA’s data also reveal that some
                                                      upgrades to increase channel capacity.33                eligible for the exemption. The fact that               systems relying on the exemption
                                                      ACA argues that ‘‘[g]iven . . . the trend               small operators that continue to rely on                currently provide broadband service.42
                                                      of decreasing reliance . . . it is                      the exemption have, on average, only                    How many, if any, such systems would
                                                      appropriate to extend the HD exemption                  348 subscribers per system 39 suggests                  reduce or eliminate such service if
                                                      for the relatively few remaining                                                                                required to carry HD signals in June
                                                                                                                34 Id. at 16.                                         2015?
                                                        26 Id. at 11–12.
                                                                                                                35 As  noted above, section 614(b)(4)(A) of the Act      13. We also invite comment on
                                                                                                              requires that cable operators transmit local            whether an additional three years will
                                                        27 Id. at 12–13 and Table 6.
                                                                                                              broadcast signals ‘‘without material degradation’’
                                                        28 Id. at 13–14.
                                                                                                              and directs the Commission to ‘‘adopt carriage          provide adequate time for eligible
                                                        29 Id. at 14. ACA reports that 37.3% of cable         standards to ensure that, to the extent technically     systems to upgrade their facilities to
                                                      systems in this category would shut down their          feasible, the quality of signal processing and
                                                      systems rather than invest in the equipment needed      carriage provided . . . will be no less than that         40 As noted above, the Commission, in the Fifth
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                                                      to comply with an HD carriage requirement; 22%          provided . . . for the carriage of any other type of    Report and Order, declined to eliminate application
                                                      would risk Commission enforcement action; and           signal.’’ See 47 U.S.C. 534(b)(4)(A) (emphasis          of the HD carriage exemption to systems that carry
                                                      35.6% would absorb or pass along to their               added).                                                 any signal in HD on the grounds that a system’s
                                                      subscribers the cost of the requisite equipment. Id.      36 See Petition at 17.
                                                                                                                                                                      ability to offer some HD service did not refute an
                                                        30 Id. at 3, 15.                                        37 Id.                                                argument that offering additional HD service was
                                                        31 Id. at 15.                                           38 Id. ACA also asserts that in some cases, all-      burdensome, and that not allowing such systems to
                                                        32 Id. at 15–16. We note, however, that the           analog systems provide a locally operated, lower        invoke the exemption would discourage them from
                                                      number of ACA members reporting that they rely          cost service that allows customers to receive basic     taking incremental steps to offer more HD
                                                      on the HD exemption has increased from 52 to 53.        cable programming without the need for set-top          programming to subscribers.
                                                      See Fifth Report and Order, 77 FR 36178 (2012).         boxes. Id.                                                41 Petition at 5–6.
                                                        33 Petition at 15–16.                                   39 Id. at 4–5.                                          42 Id. at 5–7 and Tables 2, 3.




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                                                                                Federal Register / Vol. 80, No. 59 / Friday, March 27, 2015 / Proposed Rules                                                16351

                                                      provide HD signals. Although ACA’s                      adopt our tentative conclusion to extend               Small Business Administration
                                                      data indicate that at least 200 fewer                   the exemption for three more years, we                 (‘‘SBA’’).47 In addition, the Fifth FNPRM
                                                      cable systems are relying on the HD                     seek comment on what steps we can                      and IRFA (or summaries thereof) will be
                                                      exemption today than did in 2012, the                   take to facilitate such compliance                     published in the Federal Register.48
                                                      data also indicate that the number of                   within that time period. For example,
                                                      ACA cable operator members relying on                   should we require individual cable                     1. Need for, and Objectives of, the
                                                      the HD exemption has not changed                        systems that rely on the exemption to                  Proposed Rule Changes
                                                      significantly. Therefore, do these data                 file information with the Commission                      17. In the accompanying Fifth
                                                      points reflect actual progress of ACA                   indicating such, so that we can better                 FNPRM, the Commission seeks
                                                      members coming into compliance with                     understand the particular technical and                comment on, among other things,
                                                      the HD carriage requirement? For                        financial challenges faced by these                    whether to extend for an additional
                                                      example, to what extent is the decrease                 systems and track each system’s                        three years the exemption from the
                                                      in the number of systems relying on the                 progress for coming into compliance                    requirement to carry high definition
                                                      exemption attributable to the fact that                 with the HD carriage requirement?                      (‘‘HD’’) broadcast signals under the
                                                      some operators have expanded system                        15. Finally, we seek comment on                     ‘‘material degradation’’ provisions of the
                                                      capacity to provide signals in HD (thus                 ACA’s request for clarification that all-              Communications Act of 1934, as
                                                      rendering them ineligible for the                       analog systems are not subject to the HD               amended, that it granted to certain small
                                                      exemption), or the fact that systems                    carriage requirement because such                      cable systems in the 2012 Fifth Report
                                                      have ceased operations? 43 In addition,                 carriage is technically infeasible under               and Order (‘‘HD carriage exemption’’).49
                                                      ACA estimates that more than 70 of the                  Section 614(b)(4)(A) of the Act and its                The Fifth FNPRM stems from a Petition
                                                      143 systems that currently invoke the                   implementing rules. How many cable                     for Rulemaking filed by the American
                                                      exemption are expected to be eligible for               systems that currently rely on the                     Cable Association principally requesting
                                                      the exemption in June 2018.44 To the                    exemption are all-analog systems? To                   that the Commission extend this
                                                      extent some systems expect that they                    what extent are all-analog systems                     exemption, which will expire on June
                                                      still will be unable to provide HD                      capable of passing the ATSC 45 digital                 12, 2015 without action by the
                                                      signals in three years, when would such                 broadcast signal through to their                      Commission. In the Fifth FNPRM, the
                                                      systems likely be able to comply with an                customers for reception on digital                     Commission tentatively concludes that
                                                      HD carriage requirement? That is, we                    televisions? What upgrades, if any, to an              the public interest would be served by
                                                      invite comment on the plans of these                    all-analog system’s cable amplifiers and               extending the HD carriage exemption for
                                                      small systems to upgrade to HD. We                      other equipment outside the headend                    three years, or until June 12, 2018. In
                                                      seek comment on whether there are any                   would be required to support passing                   particular, the Commission tentatively
                                                      systems for which the costs of providing                through the ATSC signal on a cable                     concludes that the HD carriage
                                                      HD signals likely will outweigh the                     channel? What upgrades would be                        exemption is still necessary to protect
                                                      benefits for the indefinite future, and, if             required in the headend?                               the subscribers of small cable systems
                                                      so, the projected number of such                                                                               from the costs and service disruptions
                                                      systems. We invite comment on any                       IV. Procedural Matters
                                                                                                                                                                     that may result from requiring those
                                                      other issues that are relevant to our                   A. Regulatory Flexibility Act                          systems to deliver HD signals in HD
                                                      determination whether to extend the HD                                                                         beginning in June 2015. The exemption
                                                                                                                 16. As required by the Regulatory
                                                      carriage exemption for small cable                                                                             applies to operators of cable systems
                                                                                                              Flexibility Act of 1980, as amended
                                                      systems. We also seek comment on any                                                                           with 2,500 or fewer subscribers that are
                                                                                                              (‘‘RFA’’),46 the Commission has
                                                      other approach to this issue that would                                                                        not affiliated with a cable operator
                                                      appropriately balance the interest of                   prepared this Initial Regulatory
                                                                                                              Flexibility Act Analysis (‘‘IRFA’’) of the             serving more than 10% of all MVPD
                                                      broadcast stations in being carried in                                                                         subscribers, and to those with an
                                                      HD and the technical and financial                      possible economic impact on a
                                                                                                              substantial number of small entities by                activated channel capacity of 552 MHz
                                                      limitations some small cable operators                                                                         or less.
                                                      face. In addition, we request comment                   the actions proposed in this Fifth
                                                      on whether there is any merit to ACA’s                  FNPRM. Written public comments are                     2. Legal Basis
                                                      argument that requiring small systems                   requested on this IRFA. Comments must
                                                                                                                                                                        18. The authority for the action
                                                      to provide HD signals at this time would                be identified as responses to the IRFA
                                                                                                                                                                     proposed in this rulemaking is
                                                      be inequitable given the uncertainty                    and must be filed by the deadlines for
                                                                                                                                                                     contained in sections 4, 303, 614, and
                                                      surrounding the broadcast spectrum                      comments on the Fifth FNPRM as
                                                                                                                                                                     615 of the Communications Act of 1934,
                                                      incentive auction.                                      indicated on its first page. The
                                                                                                                                                                     as amended, 47 U.S.C. 154, 303, 534,
                                                         14. We note that the HD exemption                    Commission will send a copy of the
                                                                                                                                                                     and 535.
                                                      was not intended to be permanent and                    Fifth FNPRM, including this IRFA, to
                                                      that, based on ACA’s survey, a number                   the Chief Counsel for Advocacy of the                  3. Description and Estimates of the
                                                      of systems must make greater progress                                                                          Number of Small Entities to Which the
                                                      in complying with the HD carriage
                                                                                                                45 Section 73.682(d) of the Commission’s rules
                                                                                                                                                                     Proposed Rules Will Apply
                                                                                                              prescribes that digital broadcast television signals
                                                      requirement. Assuming we were to                        must comply with certain privately developed              19. The RFA directs the Commission
                                                                                                              engineering protocols that the rule incorporates by    to provide a description of and, where
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                                                         43 Although ACA states that ‘‘some systems that      reference. See 47 CFR 73.682(d). The channel           feasible, an estimate of the number of
                                                      relied on the HD exemption in the past no longer        identification data that a station transmits, for
                                                      rely upon it because a business case materialized       example, must comply with ‘‘ATSC A/65C: ‘ATSC          small entities that will be affected by the
                                                      for an upgrade to occur,’’ ACA also asserts that        Program and System Information Protocol for            proposed actions if adopted.50 The RFA
                                                      ‘‘system shutdowns [will be] the primary reason         Terrestrial Broadcast and Cable, Revision C With       generally defines the term ‘‘small
                                                      that there will be fewer systems relying on the HD      Amendment No. 1 dated May 9, 2006,’ (January 2,        entity’’ as having the same meaning as
                                                      exemption’’ in the next three years. Petition at 16     2006).’’ Id.
                                                      and n.33. ACA thus contends that ‘‘the benefit of         46 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601
                                                                                                                                                                      47 See 5 U.S.C. 603(a).
                                                      the HD exemption is not only in avoiding the            through 612, has been amended by the Small
                                                                                                                                                                      48 See id.
                                                      hastening of system closings, but in giving systems     Business Regulatory Enforcement Fairness Act of
                                                      time to make upgrades possible.’’ Id.                                                                           49 See Fifth FNPRM at paras. 10–15.
                                                                                                              1996 (‘‘SBREFA’’), Pub. L. 104–121, Title II, 110
                                                         44 Id. at 15–16.                                     Stat. 857 (1996).                                       50 5 U.S.C. 603(b)(3).




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                                                      16352                     Federal Register / Vol. 80, No. 59 / Friday, March 27, 2015 / Proposed Rules

                                                      the terms ‘‘small business,’’ ‘‘small                   standard, we estimate that most cable                    is ‘‘Wired Telecommunications
                                                      organization,’’ and ‘‘small governmental                systems are small entities.                              Carriers.’’ 66 The SBA has developed a
                                                      jurisdiction.’’ 51 In addition, the term                   21. Cable System Operators (Telecom                   small business size standard for this
                                                      ‘‘small business’’ has the same meaning                 Act Standard). The Communications                        category, which is: All such businesses
                                                      as the term ‘‘small business concern’’                  Act of 1934, as amended, also contains                   having 1,500 or fewer employees.67
                                                      under the Small Business Act.52 A                       a size standard for small cable system                   Census data for 2007 shows that there
                                                      ‘‘small business concern’’ is one which:                operators, which is ‘‘a cable operator                   were 3,188 firms that operated for that
                                                      (1) Is independently owned and                          that, directly or through an affiliate,                  entire year.68 Of this total, 2,940 firms
                                                      operated; (2) is not dominant in its field              serves in the aggregate fewer than 1                     had fewer than 100 employees, and 248
                                                      of operation; and (3) satisfies any                     percent of all subscribers in the United                 firms had 100 or more employees.69
                                                      additional criteria established by the                  States and is not affiliated with any                    Therefore, under this size standard, we
                                                      Small Business Administration (SBA).53                  entity or entities whose gross annual                    estimate that the majority of these
                                                      The action proposed herein will affect                  revenues in the aggregate exceed                         businesses can be considered small
                                                      small cable system operators and small                  $250,000,000.’’ 59 There are                             entities.
                                                                                                              approximately 54 million cable video
                                                      television broadcast stations. A                                                                                    23. Television Broadcasting. This
                                                                                                              subscribers in the United States today.60
                                                      description of these small entities, as                                                                          economic Census category ‘‘comprises
                                                                                                              Accordingly, an operator serving fewer
                                                      well as an estimate of the number of                                                                             establishments primarily engaged in
                                                                                                              than 540,000 subscribers shall be
                                                      such small entities, is provided below.                                                                          broadcasting images together with
                                                                                                              deemed a small operator if its annual
                                                         20. Cable Companies and Systems.                     revenues, when combined with the total                   sound.’’ 70 The SBA has created the
                                                      The Commission has developed its own                    annual revenues of all its affiliates, do                following small business size standard
                                                      small business size standards for the                   not exceed $250 million in the                           for such businesses: Those having $38.5
                                                      purpose of cable rate regulation. Under                 aggregate.61 Based on available data, we                 million or less in annual receipts.71 The
                                                      the Commission’s rules, a ‘‘small cable                 find that all but ten incumbent cable                    2007 U.S. Census indicates that 808
                                                      company’’ is one serving 400,000 or                     operators are small entities under this                  firms in this category operated in that
                                                      fewer subscribers nationwide.54                         size standard.62 We note that the                        year. Of that number, 709 had annual
                                                      Industry data indicate that there are                   Commission neither requests nor                          receipts of $25,000,000 or less, and 99
                                                      currently 660 cable operators.55 Of this                collects information on whether cable                    had annual receipts of more than
                                                      total, all but ten cable operators                      system operators are affiliated with                     $25,000,000.72 Because the Census has
                                                      nationwide are small under this size                    entities whose gross annual revenues                     no additional classifications that could
                                                      standard.56 In addition, under the                      exceed $250 million.63 Although it                       serve as a basis for determining the
                                                      Commission’s rate regulation rules, a                   seems certain that some of these cable                   number of stations whose receipts
                                                      ‘‘small system’’ is a cable system serving              system operators are affiliated with                     exceeded $38.5 million in that year, we
                                                      15,000 or fewer subscribers.57 Current                  entities whose gross annual revenues                     conclude that the majority of television
                                                      Commission records show 4,629 cable                     exceed $250,000,000, we are unable at
                                                      systems nationwide.58 Of this total,                    this time to estimate with greater                          66 See 13 CFR 121.201, 2012 NAICS code 517110.

                                                                                                              precision the number of cable system                     This category of Wired Telecommunications
                                                      4,057 cable systems have less than                                                                               Carriers is defined in part as follows: ‘‘This industry
                                                      20,000 subscribers, and 572 systems                     operators that would qualify as small                    comprises establishments primarily engaged in
                                                      have 20,000 or more subscribers, based                  cable operators under the definition in                  operating and/or providing access to transmission
                                                      on the same records. Thus, under this                   the Communications Act.                                  facilities and infrastructure that they own and/or
                                                                                                                 22. Open Video Systems. The open                      lease for the transmission of voice, data, text,
                                                                                                              video system (OVS) framework was                         sound, and video using wired telecommunications
                                                        51 5 U.S.C. 601(b).                                                                                            networks. Transmission facilities may be based on
                                                        52 5 U.S.C. 601(3) (incorporating by reference the
                                                                                                              established in 1996, and is one of four                  a single technology or a combination of
                                                      definition of ‘‘small-business concern’’ in the Small   statutorily recognized options for the                   technologies. Establishments in this industry use
                                                      Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C.      provision of video programming                           the wired telecommunications network facilities
                                                      601(3), the statutory definition of a small business    services by local exchange carriers.64                   that they operate to provide a variety of services,
                                                      applies ‘‘unless an agency, after consultation with                                                              such as wired telephony services, including VoIP
                                                      the Office of Advocacy of the Small Business
                                                                                                              The OVS framework provides                               services; wired (cable) audio and video
                                                      Administration and after opportunity for public         opportunities for the distribution of                    programming distribution; and wired broadband
                                                      comment, establishes one or more definitions of         video programming other than through                     Internet services.’’ U.S. Census Bureau, 2012 NAICS
                                                      such term which are appropriate to the activities of    cable systems. Because OVS operators                     Definitions, ‘‘517110 Wired Telecommunications
                                                      the agency and publishes such definition(s) in the                                                               Carriers,’’ at http://www.census.gov/cgi-bin/sssd/
                                                      Federal Register.’’
                                                                                                              provide subscription services,65 OVS                     naics/naicsrch.
                                                        53 15 U.S.C. 632.                                     falls within the SBA small business size                    67 13 CFR 121.201; 2012 NAICS code 517110.
                                                        54 47 CFR 76.901(e). The Commission determined        standard covering cable services, which                     68 U.S. Census Bureau, 2007 Economic Census.

                                                      that this size standard equates approximately to a                                                               See U.S. Census Bureau, American FactFinder,
                                                      size standard of $100 million or less in annual           59 47   U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn.   ‘‘Information: Subject Series—Estab and Firm Size:
                                                      revenues.                                               1–3.                                                     Employment Size of Establishments for the United
                                                        55 NCTA, Industry Data, Number of Cable                  60 See NCTA, Industry Data, Cable’s Customer          States: 2007—2007 Economic Census,’’ NAICS code
                                                      Operators and Systems, http://www.ncta.com/             Base, http://www.ncta.com/industry-data (visited         517110, Table EC0751SSSZ5; available at http://
                                                      Statistics.aspx (visited October 13, 2014).             October 13, 2014).                                       factfinder2.census.gov/faces/tableservices/jsf/
                                                      Depending upon the number of homes and the size            61 47 CFR 76.901(f).                                  pages/productview.xhtml?pid=ECN_2007_US_
                                                      of the geographic area served, cable operators use         62 See NCTA, Industry Data, Top 25 Multichannel       51SSSZ5&prodType=table.
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                                                      one or more cable systems to provide video service.     Video Service Customers (2012), http://                     69 Id.
                                                        56 See SNL Kagan, ‘‘Top Cable MSOs—12/12 Q’’;         www.ncta.com/industry-data (visited Aug. 30,                70 U.S. Census Bureau, 2012 NAICS Definitions,

                                                      available at http://www.snl.com/InteractiveX/           2013).                                                   ‘‘515120 Television Broadcasting,’’ at http://
                                                      TopCableMSOs.aspx?period=2012Q4&sort                       63 The Commission does receive such information       www.census.gov./cgi-bin/sssd/naics/naicsrch.
                                                      col=subscribersbasic&sortorder=desc.                    on a case-by-case basis if a cable operator appeals         71 13 CFR 121.201; 2012 NAICS code 515120.
                                                        57 47 CFR 76.901(c).                                  a local franchise authority’s finding that the              72 U.S. Census Bureau, Table No. EC0751SSSZ4,
                                                        58 The number of active, registered cable systems     operator does not qualify as a small cable operator      Information: Subject Series—Establishment and
                                                      comes from the Commission’s Cable Operations and        pursuant to Section 76.901(f) of the Commission’s        Firm Size: Receipts Size of Firms for the United
                                                      Licensing System (COALS) database on October 10,        rules. See 47 CFR 76.901(f).                             States: 2007 (515120), http://factfinder2.census.gov/
                                                                                                                 64 47 U.S.C. 571(a)(3) through (4).
                                                      2014. A cable system is a physical system integrated                                                             faces/tableservices/jsf/pages/productview.xhtml?
                                                      to a principal headend.                                    65 See 47 U.S.C. 573.                                 pid=ECN_2007_US_51SSSZ4&prodType=table.



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                                                                                 Federal Register / Vol. 80, No. 59 / Friday, March 27, 2015 / Proposed Rules                                                  16353

                                                      broadcast stations were small under the                   burdens on small television broadcast                for small business concerns with fewer
                                                      applicable SBA size standard.                             stations who need take no action as a                than 25 employees.79
                                                         24. Apart from the U.S. Census, the                    result of the proposed extension.
                                                      Commission has estimated the number                                                                            C. Ex Parte Rules
                                                      of licensed commercial television                         5. Steps Taken To Minimize Significant                  31. The proceeding this document
                                                      stations to be 1,387 stations.73 Of this                  Economic Impact on Small Entities, and               initiates shall be treated as a ‘‘permit-
                                                      total, 1,221 stations (or about 88                        Significant Alternatives Considered                  but-disclose’’ proceeding in accordance
                                                      percent) had revenues of $38.5 million                       27. The RFA requires an agency to                 with the Commission’s ex parte rules.80
                                                      or less, according to Commission staff                    describe any significant alternatives that           Persons making ex parte presentations
                                                      review of the BIA Kelsey Inc. Media                       it has considered in reaching its                    must file a copy of any written
                                                      Access Pro Television Database (BIA) on                   proposed approach, which may include                 presentation or a memorandum
                                                      July 2, 2014. In addition, the                            the following four alternatives (among               summarizing any oral presentation
                                                      Commission has estimated the number                       others): (1) The establishment of                    within two business days after the
                                                      of licensed noncommercial educational                     differing compliance or reporting                    presentation (unless a different deadline
                                                      (NCE) television stations to be 395.74                    requirements or timetables that take into            applicable to the Sunshine period
                                                      NCE stations are non-profit, and                          account the resources available to small             applies). Persons making oral ex parte
                                                      therefore considered to be small                          entities; (2) the clarification,                     presentations are reminded that
                                                      entities.75 Based on these data, we                       consolidation, or simplification of                  memoranda summarizing the
                                                      estimate that the majority of television                  compliance or reporting requirements                 presentation must (1) list all persons
                                                      broadcast stations are small entities.                    under the rule for small entities; (3) the           attending or otherwise participating in
                                                         25. We note, however, that in                          use of performance, rather than design,              the meeting at which the ex parte
                                                      assessing whether a business concern                      standards; and (4) an exemption from                 presentation was made, and (2)
                                                      qualifies as ‘‘small’’ under the above                    coverage of the rule, or any part thereof,           summarize all data presented and
                                                      definition, business (control)                            for small entities.77 We seek comment                arguments made during the
                                                      affiliations 76 must be included. Because                 on the applicability of any of these                 presentation. If the presentation
                                                      we do not include or aggregate revenues                   alternatives to affected small entities.             consisted in whole or in part of the
                                                      from affiliated companies in                                 28. Extending the HD carriage                     presentation of data or arguments
                                                      determining whether an entity meets the                   exemption likely would not have an                   already reflected in the presenter’s
                                                      revenue threshold noted above, our                        adverse economic impact on any small                 written comments, memoranda or other
                                                      estimate of the number of small entities                  entities, and would have a positive                  filings in the proceeding, the presenter
                                                      affected is likely overstated. In addition,               economic impact on small cable system                may provide citations to such data or
                                                      we note that one element of the                           operators that choose to take advantage              arguments in his or her prior comments,
                                                      definition of ‘‘small business’’ is that an               of the exemption. In addition, extending             memoranda, or other filings (specifying
                                                      entity not be dominant in its field of                    the exemption would not impose any                   the relevant page and/or paragraph
                                                      operation. We are unable at this time to                  significant burdens on small television              numbers where such data or arguments
                                                      define or quantify the criteria that                      stations. We invite small entities to                can be found) in lieu of summarizing
                                                      would establish whether a specific                        submit comment on the impact of                      them in the memorandum. Documents
                                                      television broadcast station is dominant                  extending the HD carriage exemption,                 shown or given to Commission staff
                                                      in its field of operation. Accordingly,                   and on how the Commission could                      during ex parte meetings are deemed to
                                                      our estimate of small television stations                 minimize any potential burdens on                    be written ex parte presentations and
                                                      potentially affected by the proposed                      small entities.                                      must be filed consistent with rule
                                                      rules includes those that could be                        6. Federal Rules That May Duplicate,                 1.1206(b). In proceedings governed by
                                                      dominant in their field of operation. For                 Overlap, or Conflict With the Proposed               rule 1.49(f) or for which the
                                                      this reason, such estimate likely is over-                Rule                                                 Commission has made available a
                                                      inclusive.                                                                                                     method of electronic filing, written ex
                                                                                                                   29. None.                                         parte presentations and memoranda
                                                      4. Description of Projected Reporting,
                                                                                                                B. Paperwork Reduction Act                           summarizing oral ex parte
                                                      Recordkeeping, and Other Compliance
                                                                                                                                                                     presentations, and all attachments
                                                      Requirements                                                30. This document seeks comment on                 thereto, must be filed through the
                                                         26. The accompanying Fifth FNPRM                       potential information collection                     electronic comment filing system
                                                      seeks comment on, among other things,                     requirements. The Commission, as part                available for that proceeding, and must
                                                      whether to extend for an additional                       of its continuing effort to reduce                   be filed in their native format (e.g., .doc,
                                                      three years the HD carriage exemption,                    paperwork burdens, invites the general               .xml, .ppt, searchable .pdf). Participants
                                                      which would affect small cable system                     public and the Office of Management                  in this proceeding should familiarize
                                                      operators and television broadcast                        and Budget (OMB) to comment on the                   themselves with the Commission’s ex
                                                      stations. The exemption benefits small                    potential information collection                     parte rules.
                                                      cable system operators by providing                       requirements contained in this
                                                      them with continued flexibility, and                      document, as required by the Paperwork               D. Filing Requirements
                                                      imposes no new regulatory compliance                      Reduction Act of 1995, Public Law 104–                 32. Pursuant to sections 1.415 and
                                                                                                                13.78 In addition, pursuant to the Small             1.419 of the Commission’s rules,81
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                                                        73 See Broadcast Station Totals as of June 30,          Business Paperwork Relief Act of 2002,               interested parties may file comments
                                                      2014, Press Release (MB rel. July 9, 2014)                Public Law 107–198, see 44 U.S.C.                    and reply comments on or before the
                                                      (Broadcast Station Totals) at https://apps.fcc.gov/       3506(c)(4), we seek specific comment on
                                                      edocs_public/attachmatch/DOC–328096A1.pdf.                                                                     dates indicated on the first page of this
                                                        74 See Broadcast Station Totals, supra.
                                                                                                                how we might further reduce the
                                                        75 See generally 5 U.S.C. 601(4), (6).                  potential information collection burden                79 The Small Business Paperwork Relief Act of

                                                        76 ‘‘[Business concerns] are affiliates of each other                                                        2002 (SBPRA), Pub. L. 107–198, 116 Stat 729 (2002)
                                                      when one concern controls or has the power to               77 5U.S.C. 603(c)(1) through (c)(4).               (codified in Chapter 35 of title 44 U.S.C.); see 44
                                                      control the other or a third party or parties controls      78 Paperwork  Reduction Act of 1995 (‘‘PRA’’),     U.S.C. 3506(c)(4).
                                                                                                                                                                       80 47 CFR 1.1200 et seq.
                                                      or has the power to control both.’’ 13 CFR                Pub. L. 104–13, 109 Stat 163 (1995) (codified in
                                                      21.103(a)(1).                                             Chapter 35 of Title 44 U.S.C.).                        81 See 47 CFR 1.415, 1419.




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                                                      16354                     Federal Register / Vol. 80, No. 59 / Friday, March 27, 2015 / Proposed Rules

                                                      document. Comments may be filed                         V. Ordering Clauses                                   be transcribed and placed in the docket
                                                      using the Commission’s Electronic                         37. It is Ordered that, pursuant to the             referenced above for FMCSA’s
                                                      Comment Filing System (ECFS).                           authority found in sections 4, 303, 614,              consideration. The entire proceeding
                                                         • Electronic Filers: Comments may be                 and 615 of the Communications Act of                  will be webcast.
                                                      filed electronically using the Internet by              1934, as amended, 47 U.S.C. 154, 303,                 DATES: The listening session will be
                                                      accessing the ECFS: http://                             534, and 535, this Fifth FNPRM is                     held on Tuesday, April 14, 2015, from
                                                      fjallfoss.fcc.gov/ecfs2/.                               adopted.                                              3:30 p.m. to 6 p.m., Local Time.
                                                         • Paper Filers: Parties who choose to                  38. It is further ordered that the                  ADDRESSES: The listening session will
                                                      file by paper must file an original and                 Consumer and Governmental Affairs                     be held at the Hyatt Regency
                                                      one copy of each filing. If more than one               Bureau, Reference Information Center,                 Jacksonville Riverfront, 225 East
                                                      docket or rulemaking number appears in                  shall send a copy of this Fifth FNPRM,                Coastline Drive, Jacksonville, FL 32202,
                                                      the caption of this proceeding, filers                  including the Initial Regulatory                      in the Clearwater Ballroom. In addition
                                                      must submit two additional copies for                   Flexibility Act Analysis, to the Chief                to attending the session in person, the
                                                      each additional docket or rulemaking                    Counsel for Advocacy of the Small                     Agency offers several ways to provide
                                                      number.                                                 Business Administration.                              comments, as enumerated below.
                                                         33. Filings can be sent by hand or                   Federal Communications Commission.                       Internet Address for Live Webcast.
                                                      messenger delivery, by commercial                                                                             FMCSA will post specific information
                                                                                                              Marlene H. Dortch,
                                                      overnight courier, or by first-class or                                                                       on how to participate via the Internet on
                                                      overnight U.S. Postal Service mail. All                 Secretary.
                                                                                                              [FR Doc. 2015–06943 Filed 3–26–15; 8:45 am]
                                                                                                                                                                    the FMCSA Web site at
                                                      filings must be addressed to the                                                                              www.fmcsa.dot.gov in advance of the
                                                      Commission’s Secretary, Office of the                   BILLING CODE 6712–01–P
                                                                                                                                                                    listening sessions.
                                                      Secretary, Federal Communications                                                                                You may submit comments identified
                                                      Commission.                                                                                                   by Docket Number FMCSA–2014–0470
                                                         • All hand-delivered or messenger-                   DEPARTMENT OF TRANSPORTATION                          using any of the following methods:
                                                      delivered paper filings for the
                                                                                                              Federal Motor Carrier Safety                             • Federal eRulemaking Portal: http://
                                                      Commission’s Secretary must be                                                                                www.regulations.gov. Follow the online
                                                      delivered to FCC Headquarters at 445                    Administration
                                                                                                                                                                    instructions for submitting comments.
                                                      12th Street SW., Room TW–A325,
                                                                                                              49 CFR Part 350                                          • Mail: Docket Management Facility,
                                                      Washington, DC 20554. The filing hours                                                                        U.S. Department of Transportation, 1200
                                                      are 8:00 a.m. to 7:00 p.m. All hand                     [Docket No. FMCSA–2014–0470]                          New Jersey Avenue SE., West Building,
                                                      deliveries must be held together with                                                                         Ground Floor, Room W12–140,
                                                      rubber bands or fasteners. Any                          State Inspection Programs for                         Washington, DC 20590–0001.
                                                      envelopes and boxes must be disposed                    Passenger-Carrying Vehicles;                             • Hand Delivery or Courier: West
                                                      of before entering the building.                        Listening Session                                     Building, Ground Floor, Room W12–
                                                         • Commercial overnight mail (other                   AGENCY:  Federal Motor Carrier Safety                 140, 1200 New Jersey Avenue SE.,
                                                      than U.S. Postal Service Express Mail                   Administration (FMCSA), DOT.                          Washington, DC, between 9 a.m. and 5
                                                      and Priority Mail) must be sent to 9300                 ACTION: Notice of public listening                    p.m., Monday through Friday, except
                                                      East Hampton Drive, Capitol Heights,                    session.                                              Federal holidays.
                                                      MD 20743.                                                                                                        • Fax: 202–493–2251.
                                                         • U.S. Postal Service first-class,                   SUMMARY:   FMCSA announces that it will                  Each submission must include the
                                                      Express, and Priority mail must be                      hold a public listening session on April              Agency name and the docket number for
                                                      addressed to 445 12th Street SW.,                       14, 2015, to solicit information                      this notice. Note that DOT posts all
                                                      Washington DC 20554.                                    concerning section 32710 of the Moving                comments received, without change, to
                                                         34. People with Disabilities: To                     Ahead for Progress in the 21st Century                www.regulations.gov, including any
                                                      request materials in accessible formats                 Act (MAP–21). This provision requires                 personal information included in a
                                                      for people with disabilities (braille,                  FMCSA to complete a rulemaking                        comment. Please see the Privacy Act
                                                      large print, electronic files, audio                    proceeding to consider requiring States               heading below. To avoid duplication,
                                                      format), send an email to fcc504@fcc.gov                to establish a program for annual                     please use only one of these four
                                                      or call the Consumer & Governmental                     inspections of commercial motor                       methods. See the ‘‘Public Participation
                                                      Affairs Bureau at 202–418–0530 (voice),                 vehicles (CMVs) designed or used to                   and Request for Comments’’ portion of
                                                      202–418–0432 (tty).                                     transport passengers. Additionally,                   the SUPPLEMENTARY INFORMATION section
                                                         35. Availability of Documents.                       under MAP–21, FMCSA must assess the                   for instructions on submitting
                                                      Comments, reply comments, and ex                        risks associated with improperly                      comments.
                                                      parte submissions will be available for                 maintained or inspected CMVs designed                    • Docket: For access to the docket to
                                                      public inspection during regular                        or used to transport passengers; the                  read background documents or
                                                      business hours in the FCC Reference                     effectiveness of existing Federal                     comments, go to www.regulations.gov at
                                                      Center, Federal Communications                          standards for the inspection of such                  any time or visit Room W12–140 on the
                                                      Commission, 445 12th Street SW., CY–                    vehicles in mitigating the risks                      ground level of the West Building, 1200
                                                      A257, Washington, DC 20554. These                       associated with improperly maintained                 New Jersey Avenue SE., Washington,
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      documents will also be available via                    vehicles and ensuring the safe and                    DC, between 9 a.m. and 5 p.m., ET,
                                                      ECFS. Documents will be available                       proper operation condition of such                    Monday through Friday, except Federal
                                                      electronically in ASCII, Microsoft Word,                vehicles; and the costs and benefits of               holidays. The online Federal document
                                                      and/or Adobe Acrobat.                                   a mandatory inspection program. Any                   management system is available 24
                                                         36. For Additional Information:                      data regarding this topic would be                    hours each day, 365 days each year. If
                                                      Contact Raelynn Remy of the Policy                      appreciated. The session will be held at              you would like acknowledgment that
                                                      Division, Media Bureau, at                              the Commercial Vehicle Safety                         the Agency received your comments,
                                                      raelynn.remy@fcc.gov or (202) 418–                      Alliance’s (CVSA) workshop in                         please include a self-addressed,
                                                      2936.                                                   Jacksonville, Florida. All comments will              stamped envelope or postcard or print


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Document Created: 2015-12-18 11:36:39
Document Modified: 2015-12-18 11:36:39
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments are due on or before April 16, 2015; reply comments are due on or before April 27, 2015. Written comments on the Paperwork Reduction Act potential information collection requirements must be submitted by the public, Office of Management and Budget (OMB), and other interested parties on or before May 26, 2015.
ContactRaelynn Remy of the Policy Division, Media Bureau at (202) 418-2120 or [email protected] For additional information concerning the Paperwork Reduction Act information collection requirements contained in this document, send an email to [email protected] or contact Cathy Williams at (202) 418-2918.
FR Citation80 FR 16347 

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