80_FR_19664 80 FR 19594 - Television Market Modification; Statutory Implementation

80 FR 19594 - Television Market Modification; Statutory Implementation

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 80, Issue 70 (April 13, 2015)

Page Range19594-19611
FR Document2015-08435

In this document, the Commission proposes satellite television market modification rules to implement section 102 of the Satellite Television Extension and Localism Act (STELA) Reauthorization Act of 2014 (``STELAR''). The STELAR amended the Communications Act and the Copyright Act to give the Commission authority to modify a commercial television broadcast station's local television market for purposes of satellite carriage rights. In this document, the Commission proposes to revise the current cable market modification rule to apply also to satellite carriage, while adding provisions to address the unique nature of satellite television service. The document also proposes to make conforming changes to the cable market modification rules and considers whether to make any other changes to the current market modification rules.

Federal Register, Volume 80 Issue 70 (Monday, April 13, 2015)
[Federal Register Volume 80, Number 70 (Monday, April 13, 2015)]
[Proposed Rules]
[Pages 19594-19611]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-08435]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 76

[MB Docket No. 15-71; FCC 15-34]


Television Market Modification; Statutory Implementation

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Commission proposes satellite television 
market modification rules to implement section 102 of the Satellite 
Television Extension and Localism Act (STELA) Reauthorization Act of 
2014 (``STELAR''). The STELAR amended the Communications Act and the 
Copyright Act to give the Commission authority to modify a commercial 
television broadcast station's local television market for purposes of 
satellite carriage rights. In this document, the Commission proposes to 
revise the current cable market modification rule to apply also to 
satellite carriage, while adding provisions to address the unique 
nature of satellite television service. The document also proposes to 
make conforming changes to the cable market modification rules and 
considers whether to make any other changes to the current market 
modification rules.

DATES: Comments are due on or before May 13, 2015; reply comments are 
due on or before May 28, 2015. Written comments on the Paperwork 
Reduction Act proposed information collection requirements must be 
submitted by the public, Office of Management and Budget (OMB), and 
other interested parties on or before June 12, 2015.

ADDRESSES: Interested parties may submit comments, identified by MB 
Docket No. 15-71, by any of the following methods:
     Federal Communications Commission (FCC) Electronic Comment 
Filing System (ECFS) Web site: http://fjallfoss.fcc.gov/ecfs2/. Follow 
the instructions for submitting comments.
     Mail: U.S. Postal Service first-class, Express, and 
Priority mail must be addressed to the FCC Secretary, Office of the 
Secretary, Federal Communications Commission, 445 12th Street SW., 
Washington, DC 20554. 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.
     Hand or Messenger Delivery: All hand-delivered or 
messenger-delivered paper filings for the FCC Secretary must be 
delivered to FCC Headquarters at 445 12th Street SW., Room TW-A325, 
Washington, DC 20554.
     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.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the section IV. ``PROCEDURAL 
MATTERS'' heading of the SUPPLEMENTARY INFORMATION section of this 
document. In addition to filing comments with the Secretary, a copy of 
any comments on the Paperwork Reduction Act information collection 
requirements contained herein should be submitted to the Federal 
Communications Commission via email to [email protected] and to Nicholas A. 
Fraser, Office of Management and Budget, via email to Nicholas_A._

[[Page 19595]]

[email protected] or via fax at 202-395-5167.

FOR FURTHER INFORMATION CONTACT: For additional information on this 
proceeding, contact Evan Baranoff, [email protected], of the Media 
Bureau, Policy Division, (202) 418-2120. 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 Notice 
of Proposed Rulemaking (NPRM), FCC 15-34, adopted and released on March 
26, 2015. The full text of this document is available electronically 
via the FCC's Electronic Comment Filing System (ECFS) Web site at 
http://fjallfoss.fcc.gov/ecfs2/ or via the FCC's Electronic Document 
Management System (EDOCS) Web site at http://fjallfoss.fcc.gov/edocs_public/. (Documents will be available electronically in ASCII, 
Microsoft Word, and/or Adobe Acrobat.) This document is also available 
for public inspection and copying during regular business hours in the 
FCC Reference Information Center, Federal Communications Commission, 
445 12th Street SW., CY-A257, Washington, DC 20554. 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).

Document Summary

I. Introduction

    1. In this Notice of Proposed Rulemaking (NPRM), we propose 
satellite television ``market modification'' rules to implement section 
102 of the Satellite Television Extension and Localism Act (STELA) 
Reauthorization Act of 2014 (``STELA Reauthorization Act'' or 
``STELAR'').\1\ The STELAR amended the Communications Act 
(``Communications Act'' or ``Act'') and the Copyright Act to give the 
Commission authority to modify a commercial television broadcast 
station's local television market for purposes of satellite carriage 
rights.\2\ The Commission previously had such authority to modify 
markets only in the cable carriage context.\3\ With section 102 of the 
STELAR, Congress provides regulatory parity in this regard in order to 
promote consumer access to in-state and other relevant television 
programming.\4\ Congress' intent through this provision of STELAR, and 
the Commission's actions in this NPRM, seek to address satellite 
subscribers' inability to receive in-state programming in certain 
areas, sometimes called ``orphan counties.'' \5\ In this NPRM, 
consistent with Congress' intent that the Commission model the 
satellite market modification process on the current cable market 
modification process, we propose to implement section 102 of the STELAR 
by revising the current cable market modification rule, section 76.59, 
to apply also to satellite carriage, while adding provisions to the 
rules to address the unique nature of satellite television service.\6\ 
In addition to establishing rules for satellite market modifications, 
section 102 of the STELAR directs us to consider whether we should make 
changes to the current cable market modification rules,\7\ and it also 
makes certain conforming amendments to the cable market modification 
statutory provision.\8\ Accordingly, as part of our implementation of 
the STELAR, we propose to make conforming changes to the cable market 
modification rules and consider whether we should make any other 
changes to the current cable market modification rules. The STELAR 
requires the Commission to issue final rules in this proceeding on or 
before September 4, 2015.\9\
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    \1\ The STELA Reauthorization Act of 2014 (STELAR), sec. 102, 
Public Law 113-200, 128 Stat. 2059, 2060-62 (2014) (codified at 47 
U.S.C. 338(l)). The STELAR was enacted on December 4, 2014 (H. R. 
5728, 113th Cong.). This proceeding implements STELAR sec. 102 
(titled ``Modification of television markets to further consumer 
access to relevant television programming''), 128 Stat. at 2060-62, 
and the related statutory copyright license provisions in STELAR 
sec. 204 (titled ``Market determinations''), 128 Stat. at 2067 
(codified at 17 U.S.C. 122(j)(2)(E)).
    \2\ STELAR secs. 102, 204, 128 Stat. at 2060-62, 2067. STELAR 
sec. 102(a) amends section 338 of the Act by adding a new paragraph 
(l). 47 U.S.C. 338(l) (titled ``Market Determinations''). STELAR 
sec. 102(b) also makes conforming amendments to the cable market 
modification provision at 47 U.S.C. 534(h)(1)(C). STELAR sec. 204 
amends the statutory copyright license for satellite carriage of 
``local'' stations in 17 U.S.C. 122 to cover market modifications in 
accordance with 47 U.S.C. 338(l). 17 U.S.C. 122(j)(2)(E). We note 
that, like the cable provision, the STELAR provision pertains only 
to ``commercial'' stations, thus excluding noncommercial stations 
from seeking market modifications. See 47 U.S.C. 338(l)(1).
    \3\ See 47 U.S.C. 534(h)(1)(C). This section was added to the 
Act by the Cable Television Consumer Protection and Competition Act 
of 1992, Public Law 102-385, 106 Stat. 1460 (1992), as part of the 
cable must-carry/retransmission consent regime for carriage of local 
television stations. See also 47 CFR 76.59.
    \4\ See title of STELAR sec. 102, ``Modification of Television 
Markets to Further Consumer Access to Relevant Television 
Programming.'' See also 47 U.S.C. 534(h)(1)(C)(ii)(III) (directing 
the Commission to consider whether a market modification would 
``promote consumers' access to television broadcast station signals 
that originate in their State of residence''). There was no final 
Report issued to accompany the final version of the STELAR bill (H. 
R. 5728, 113th Cong.) as it was enacted. Because section 102 of the 
STELAR was added from the Senate predecessor bill (S. 2799, the 
Satellite Television Access and Viewer Rights Act (STAVRA)), we 
therefore look to the Senate Report No. 113-322 (dated December 12, 
2014) accompanying this predecessor bill for the relevant 
legislative history for this provision. See Report from the Senate 
Committee on Commerce, Science, and Transportation accompanying S. 
2799, 113th Cong., S. Rep. No. 113-322 (2014) (``Senate Commerce 
Committee Report'').
    \5\ We note that the Commission has sometimes referred to the 
situation in which a county in one state is assigned to a 
neighboring state's local television market and, therefore, 
satellite subscribers residing in such county cannot receive some or 
any broadcast stations that originate in-state as the ``orphan 
county'' problem. The inability of satellite subscribers located in 
``orphan counties'' to access in-state programming has been the 
subject of some congressional interest. See, e.g., Orphan County 
Telecommunications Rights Act, H.R. 4635, 113th Cong. (2014); 
Colorado News, Emergency, Weather, and Sports Act, S. 2375, 113th 
Cong. (2014); Four Corners Television Access Act, H.R. 4469, 112th 
Cong. (2012); Letting Our Communities Access Local Television Act, 
S. 3894, 111th Cong. (2010); Local Television Freedom Act, H.R. 
3216, 111th Cong. (2009).
    \6\ See 47 CFR 76.59. As discussed herein, we propose to revise 
section 76.59 of our rules to apply to both cable systems and 
satellite carriers. We note Congress' intent that the process 
established by the Commission under the section 102 of the STELAR be 
``modeled'' on the current cable market modification process. See 
Senate Commerce Committee Report at 10. However, the STELAR 
recognizes the inherent difference between cable and satellite 
television service with provisions specific to satellite. See 47 
U.S.C. 338(l)(3)(A), (5).
    \7\ STELAR sec. 102(d) directs the Commission to consider as 
part of this rulemaking whether the ``procedures for the filing and 
consideration of a written request under sections 338(l) and 
614(h)(1)(C) of the Communications Act of 1934 (47 U.S.C. 338(l); 
534(h)(1)(C)) fully effectuate the purposes of the amendments made 
by this section, and update what it considers to be a community for 
purposes of a modification of a market under section 338(l) or 
614(h)(1)(C) of the Communications Act of 1934.''
    \8\ See STELAR sec. 102(b) (amending 47 U.S.C. 
534(h)(1)(C)(ii)).
    \9\ STELAR sec. 102(d)(1).
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II. Background

    2. The STELAR, enacted December 4, 2014, is the latest in a series 
of statutes that have amended the Communications Act and Copyright Act 
to set the parameters for the satellite carriage of television 
broadcast stations. The 1988 Satellite Home Viewer Act (SHVA) first 
established a ``distant'' statutory copyright license to enable 
satellite carriers to offer subscribers who could not receive the over-
the-air signal of a broadcast station access to broadcast

[[Page 19596]]

programming via satellite.\10\ The 1999 Satellite Home Viewer 
Improvement Act (SHVIA) established a ``local'' statutory copyright 
license and expanded satellite carriers' ability to offer broadcast 
television signals directly to subscribers by permitting carriers to 
offer ``local'' broadcast signals.\11\ The 2004 Satellite Home Viewer 
Extension and Reauthorization Act (SHVERA) reauthorized the distant 
signal statutory copyright license until December 31, 2009 and expanded 
that license to allow satellite carriers to carry ``significantly 
viewed'' stations.\12\ The 2010 Satellite Television Extension and 
Localism Act (STELA) extended the distant signal statutory copyright 
license through December 31, 2014, moved the significantly viewed 
signal copyright provisions to the local statutory copyright license 
(which does not expire), and revised the ``significantly viewed'' 
provisions to facilitate satellite carrier use of that option.\13\ With 
the STELAR, Congress extends the distant signal statutory copyright 
license for another five years, through December 31, 2019 and, among 
other things, authorizes market modification in the satellite carriage 
context and revises the market modification provisions for cable to 
promote parity for satellite and cable subscribers and competition 
between satellite and cable operators.\14\
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    \10\ The Satellite Home Viewer Act of 1988 (SHVA), Public Law 
100-667, 102 Stat. 3935, Title II (1988); 17 U.S.C. 119 (distant 
statutory copyright license).
    \11\ The Satellite Home Viewer Improvement Act of 1999 (SHVIA), 
Public Law 106-113, 113 Stat. 1501 (1999); 17 U.S.C. 122 (local 
statutory copyright license).
    \12\ The Satellite Home Viewer Extension and Reauthorization Act 
of 2004 (SHVERA), Public Law 108-447, 118 Stat 2809 (2004).
    \13\ The Satellite Television Extension and Localism Act of 2010 
(STELA), Public Law 111-175, 124 Stat. 1218, 1245 (2010). See also 
Implementation of Section 203 of the Satellite Television Extension 
and Localism Act of 2010 (STELA), MB Docket No. 10-148, Report and 
Order and Order on Reconsideration, FCC 10-193, 75 FR 72968, Nov. 
29, 2010 (STELA Significantly Viewed Report and Order).
    \14\ In section 102 of the STELAR, Congress intended to ``create 
a television market modification process for satellite carriers 
similar to the one already used for cable operators.'' Senate 
Commerce Committee Report at 6. The STELAR also makes a variety of 
reforms to the video programming distribution laws and regulations 
that are not relevant here to our implementation of this section.
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    3. Section 338 of the Act authorizes satellite carriage of local 
broadcast stations into their local markets, which is called ``local-
into-local'' service.\15\ Specifically, a satellite carrier provides 
``local-into-local'' service when it retransmits a local television 
signal back into the local market of that television station for 
reception by subscribers.\16\ Generally, a television station's ``local 
market'' is defined by the Designated Market Area (DMA) in which it is 
located, as determined by the Nielsen Company (Nielsen).\17\ DMAs 
describe each television market in terms of a unique geographic area 
(group of counties) and are defined by Nielsen based on measured 
viewing patterns.\18\ The United States is divided into 210 DMA 
markets. (DMAs frequently cross state lines and thus may include 
counties from multiple states.) Unlike cable operators, satellite 
carriers are not required to carry local broadcast television stations. 
However, if a satellite carrier chooses to carry a local station in a 
particular DMA in reliance on the statutory copyright license, it 
generally must carry any qualified local station in the same DMA that 
makes a timely election for retransmission consent or mandatory 
carriage.\19\ This is commonly referred to as the ``carry one, carry 
all'' requirement. If a broadcaster elects retransmission consent, the 
satellite carrier and broadcaster negotiate the terms of a 
retransmission consent agreement. With respect to those stations 
electing mandatory carriage, satellite carriers are generally not 
required to carry a station if the station's programming 
``substantially duplicates'' that of another station carried by the 
satellite carrier in the DMA, and satellite carriers are not required 
to carry more than one network affiliate station in a DMA (even if the 
affiliates do not substantially duplicate their programming), unless 
the stations are licensed to communities in different states.\20\ 
Satellite carriers are also not required to carry an otherwise 
qualified station if the station fails to provide a good quality signal 
to the satellite carrier's local receive facility.\21\
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    \15\ See 47 U.S.C. 338(a)(1).
    \16\ 47 CFR 76.66(a)(6).
    \17\ See 17 U.S.C. 122(j)(2); 47 CFR 76.66(e) (defining a 
television broadcast station's local market for purposes of 
satellite carriage as the DMA in which the station is located). We 
note that a commercial television broadcast station's local market 
for purposes of cable carriage is also generally defined as the DMA 
in which the station is located. See 47 U.S.C. 534(h)(1)(C); 47 CFR 
76.55(e)(2).
    \18\ The Nielsen Company delineates television markets by 
assigning each U.S. county (except for certain counties in Alaska) 
to one market based on measured viewing patterns both off-air and by 
MVPD distribution.
    \19\ See 17 U.S.C. 122; 47 U.S.C. 338(a)(1); 47 CFR 76.66(b)(1).
    \20\ See 47 U.S.C. 338(c)(1); 47 CFR 76.66(h). See also 
Implementation of the Satellite Home Viewer Improvement Act of 1999: 
Broadcast Signal Carriage Issues, Retransmission Consent Issues, CS 
Docket Nos. 00-96 and 99-363, Report and Order, FCC 00-417, 66 FR 
7410, at para. 80, Jan. 23, 2001 (DBS Broadcast Carriage Report and 
Order).
    \21\ See 47 U.S.C. 338(b)(1); 47 CFR 76.66(g)(1).
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    4. Section 102 of the STELAR, which adds section 338(l) of the Act, 
creates a satellite market modification regime very similar to that in 
place for cable, while adding provisions to address the unique nature 
of satellite television service.\22\ Market modification, which has 
been available in the cable carriage context since 1992, will allow the 
Commission to modify the local television market of a commercial 
television broadcast station to enable those broadcasters and satellite 
carriers to better serve the interests of local communities.\23\ Market 
modification provides a means to avoid rigid adherence to DMA 
designations and to promote consumer access to in-state and other 
relevant television programming.\24\ To better reflect market realities 
and effectuate the purposes of this provision, section 338(l), like the 
corresponding cable provision in section 614(h)(1)(C), permits the 
Commission to add communities to or delete communities from a station's 
local television market following a written request.\25\ Furthermore, 
as in the cable carriage context, the Commission may determine that 
particular communities are part of more than one television market.\26\ 
Similar to the cable carriage context, when the Commission modifies a 
station's market to add a community for purposes of carriage rights, 
the station is considered local and is covered by the local statutory 
copyright license and may assert mandatory carriage (or retransmission 
consent) by the applicable satellite

[[Page 19597]]

carrier in the local market.\27\ Likewise, if the Commission modifies a 
station's market to delete a community, the station is considered 
``distant'' and loses its right to assert mandatory carriage (or 
retransmission consent) by the applicable satellite carrier in the 
local market. We note that, in the cable carriage context, market 
modifications pertain to specific stations in specific cable 
communities and apply to the specific cable system named in the 
petition.\28\
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    \22\ See 47 U.S.C. 338(l), 534(h)(1)(C).
    \23\ See In-State Broadcast Programming: Report to Congress 
Pursuant to Section 304 of the Satellite Television Extension and 
Localism Act of 2010, MB Docket No. 10-238, Report, DA 11-1454, at 
para. 55-59 (MB rel. Aug. 29, 2011) (``In-State Programming 
Report'') (stating that ``market modifications could potentially 
address special situations in underserved areas and facilitate 
greater access to local information''). See also Broadcast Localism, 
MB Docket No. 04-233, Report on Broadcast Localism and Notice of 
Proposed Rulemaking, FCC 07-218, 73 FR 8255 at paras. 49-50, Feb. 
13, 2008 (``Broadcast Localism Report'').
    \24\ Broadcast Localism Report at para. 50. The Commission has 
observed that, in some cases, general reliance on DMAs to define a 
station's market may not provide viewers with the most local 
programming. Certain DMAs cross state borders and, in such cases, 
current Commission rules sometimes require carriage of the broadcast 
signal of an out-of-state station rather than that of an in-state 
station. The Commission has observed that such cases may weaken 
localism, since viewers are often more likely to receive information 
of local interest and relevance--particularly local weather and 
other emergency information and local news and electoral and public 
affairs--from a station located in the state in which they live. Id. 
at paras. 49-50.
    \25\ 47 U.S.C. 338(l)(1), 534(h)(1)(C).
    \26\ Id. 338(l)(2)(A).
    \27\ Section 204 of the STELAR amends the local statutory 
copyright license in 17 U.S.C. 122 so that when the Commission 
modifies a station's market for purposes of satellite carriage 
rights, the station is considered local and is covered by the local 
statutory copyright license. See 17 U.S.C. 122(j)(2)(E); 47 U.S.C. 
338. See also 17 U.S.C. 111(f)(4) (defining ``local service area of 
a primary transmitter'' for cable carriage copyright purposes); 47 
U.S.C. 534(h)(1)(C).
    \28\ See Implementation of the Cable Television Consumer 
Protection and Competition Act of 1992, Broadcast Signal Carriage 
Issues, MM Docket No. 92-259, Report and Order, FCC 93-144, 58 FR 
17350, at para. 47, April 2, 1993 (Must Carry Order) (stating that 
``the statute is intended to permit the modification of a station's 
market to reflect its individual situation''); 47 CFR 76.59.
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    5. Section 338(l) states that, in deciding requests for market 
modifications, the Commission must afford particular attention to the 
value of localism by taking into account the following five factors:
     Whether the station, or other stations located in the same 
area--have been historically carried on the cable system or systems 
within such community; and have been historically carried on the 
satellite carrier or carriers serving such community;
     whether the television station provides coverage or other 
local service to such community;
     whether modifying the local market of the television 
station would promote consumers' access to television broadcast station 
signals that originate in their State of residence;
     whether any other television station that is eligible to 
be carried by a satellite carrier in such community in fulfillment of 
the requirements of this section provides news coverage of issues of 
concern to such community or provides carriage or coverage of sporting 
and other events of interest to the community; and
     evidence of viewing patterns in households that subscribe 
and do not subscribe to the services offered by multichannel video 
programming distributors within the areas served by such multichannel 
video programming distributors in such community.\29\ These statutory 
factors largely mirror those originally set forth for cable in section 
614(h)(1)(C)(ii) of the Act. To the extent the factors differ from the 
previous factors applicable to cable, section 102 of the STELAR makes 
conforming changes to the cable factors.\30\ These include adding a 
fifth factor (inserted as factor number three) to section 
614(h)(1)(C)(ii) to ``promote consumers' access to television broadcast 
station signals that originate in their State of residence.'' \31\ 
Thus, STELAR creates parallel factors for satellite and cable.\32\
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    \29\ 47 U.S.C. 338(l)(2)(B)(i) through (v).
    \30\ See 47 U.S.C. 534(h)(1)(C)(ii), as amended by STELAR sec. 
102(b).
    \31\ See id. 534(h)(1)(C)(ii)(III) (``whether modifying the 
market of the television station would promote consumers' access to 
television broadcast station signals that originate in their State 
of residence'').
    \32\ Upon completion of this rulemaking proceeding, we will 
implement section 102(c) of the STELAR by creating a consumer guide 
that will explain the market modification rules and procedures as 
revised and adopted in this proceeding, and by posting such guide on 
the Commission's Web site. Section 102(c) requires the Commission to 
``make information available to consumers on its Web site that 
explains the market modification process.'' STELAR 102(c); 47 
U.S.C.A. 338 Note. Such information must include: ``(1) who may 
petition to include additional communities within, or exclude 
communities from, a--(A) local market (as defined in section 122(j) 
of title 17, United States Code); or (B) television market (as 
determined under section 614(h)(1)(C) of the Communications Act of 
1934 (47 U.S.C. 534(h)(1)(C))); and (2) the factors that the 
Commission takes into account when responding to a petition 
described in paragraph (1).'' See 47 U.S.C. 338(l)(2)(B)(i) through 
(v); 47 U.S.C. 534(h)(1)(C)(ii)(I) through (V).
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    6. The STELAR, however, provides a unique exception applicable only 
in the satellite context, providing that a market modification shall 
not create additional carriage obligations for a satellite carrier if 
it is not technically and economically feasible for such carrier to 
accomplish such carriage by means of its satellites in operation at the 
time of the determination.\33\
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    \33\ 47 U.S.C. 338(l)(3)(A).
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    Also unique to satellite, the STELAR provides that a market 
modification will not have ``any effect on the eligibility of 
households in the community affected by such modification to receive 
distant signals pursuant to section 339 [of the Act].'' \34\ Like the 
cable provision, section 338(l) gives the Commission 120 days to act on 
a request for market modification and does not allow a carrier to 
delete from carriage the signal of a commercial television station 
during the pendency of any market modification proceeding.\35\
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    \34\ 47 U.S.C. 338(l)(5).
    \35\ 47 U.S.C. 338(l)(3)(B), (4).
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III. Discussion

    7. Consistent with the STELAR's goal of regulatory parity, we 
propose to amend section 76.59 of our rules--the current cable market 
modification rule--to apply to the satellite context.\36\ We also 
propose to amend section 76.59 to reflect the STELAR provisions that 
uniquely apply to satellite carriers. The STELAR also directs us to 
update our definition of a ``community'' for purposes of market 
modification and, below, we seek comment in this regard. We seek 
comment on the specific rule proposals and tentative conclusions 
contained herein. We also seek comment on any alternative approaches.
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    \36\ See 47 CFR 76.59.
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A. Requesting Market Modification

    8. Consistent with the current cable requirement in section 76.59, 
we propose to allow either the affected commercial broadcast station or 
satellite carrier to file a satellite market modification request.\37\ 
Section 338(l)(1) of the Act contains very similar language to the 
corresponding cable statutory provision in section 614(h)(1)(C)(i) of 
the Act.\38\ Like the cable provision, section 338(l)(1) permits the 
Commission to modify a local television market ``following a written 
request,'' but does not specify the appropriate party to make such 
requests.\39\ Section 102(d)(2) of the STELAR further directs the 
Commission to ensure in both the cable and satellite contexts that 
``procedures for the filing and consideration of a written request . . 
. fully effectuate the purposes of the amendments made by this 
section.'' \40\ The Commission found in the cable context that the 
involved broadcaster and cable operator are the only appropriate 
parties to file market

[[Page 19598]]

modification requests.\41\ The Commission reasoned that ``the fact that 
Congress made must carry an elective choice for broadcasters diminishes 
the argument that third parties have standing to demand carriage of a 
broadcast station on a cable system. A subscriber's ability to receive 
the benefits provided from must carry is predicated upon a station's 
election to exercise its rights under the statute. No statute or 
Commission rule requires a broadcaster to allow its signal to be 
carried on a local cable system because another party wishes to view 
it. Instead, broadcasters are given a choice whether to demand carriage 
under must carry, to negotiate carriage under the retransmission 
consent provisions, or not to be carried on a particular cable system 
at all.'' \42\ Thus, only these entities have carriage rights or 
obligations at stake, giving them a legitimate basis for filing such 
requests.
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    \37\ See 47 CFR 76.59(a) (allowing either a broadcast station or 
a cable system to file market modification requests).
    \38\ 47 U.S.C. 338(l)(1) (``Following a written request, the 
Commission may, with respect to a particular commercial television 
broadcast station, include additional communities within its local 
market or exclude communities from such station's local market to 
better effectuate the purposes of this section.) See 47 U.S.C. 
534(h)(1)(C)(i) (``For purposes of this section, a broadcasting 
station's market shall be determined by the Commission by regulation 
or order using, where available, commercial publications which 
delineate television markets based on viewing patterns, except that, 
following a written request, the Commission may, with respect to a 
particular television broadcast station, include additional 
communities within its television market or exclude communities from 
such station's television market to better effectuate the purposes 
of this section . . . .'').
    \39\ 47 U.S.C. 338(l)(1).
    \40\ STELAR sec. 102(d)(2) directs the Commission to consider as 
part of this rulemaking whether the ``procedures for the filing and 
consideration of a written request under sections 338(l) and 
614(h)(1)(C) of the Communications Act of 1934 (47 U.S.C. 338(l); 
534(h)(1)(C)) fully effectuate the purposes of the amendments made 
by this section.'' See 47 U.S.C.A. 338 Note.
    \41\ See John Wiegand v. Post Newsweek Pacifica Cable, Inc., CSR 
4179-M, Memorandum Opinion and Order, FCC 01-239 (rel. Aug. 24, 
2001) (``Wiegand v. Post Newsweek'') (limiting standing in the must 
carry and market modification contexts to the affected broadcaster 
or cable operator); Must Carry Order, at para. 46.
    \42\ See Must Carry Order, at para. 46.
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    9. Without the active participation of the affected broadcaster, 
modifying the market of a particular television station, in itself, 
would not result in consumer access to that station.\43\ This reasoning 
appears to apply to the satellite context as well. Thus, a market 
modification would serve little purpose without the cooperation of the 
involved broadcaster or MVPD having carriage rights or obligations. We 
seek comment on our proposal and these tentative conclusions. We also 
seek comment on any alternative approaches. We note, for example, that 
some local governments have previously sought the ability to petition 
for market modifications on behalf of their citizens.\44\ We recognize 
that seeking and providing carriage is a business decision by the 
involved broadcaster and satellite carrier and, therefore, we 
tentatively conclude to limit the participation of local governments 
and individuals to filing comments in support of, or in opposition to, 
particular market modification requests, for the reasons discussed in 
this and the preceding paragraph. We, nevertheless, seek comment on 
this tentative conclusion and how else satellite subscribers or their 
representatives can meaningfully advocate for the receipt of in-state 
programming via satellite.
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    \43\ See Wiegand v. Post Newsweek, at para. 11(``[t]he granting 
of a request to expand the market of a television station merely 
allows a broadcaster the option to seek must carry status on cable 
systems added to its market. A broadcaster is not required to seek 
carriage of its signal on all of the cable systems in its 
market.'').
    \44\ See In-State Programming Report, at para. 58.
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    10. Consistent with the current cable requirement in section 76.59, 
we propose to require broadcasters and satellite carriers to file 
market modification requests for satellite carriage purposes in 
accordance with the procedures for filing Special Relief petitions in 
section 76.7 of the rules.\45\ Consistent with section 76.7, we propose 
that a petitioner must serve a copy of its market modification request 
on any MVPD operator, station licensee, permittee, or applicant, or 
other interested party who is likely to be directly affected if the 
relief requested is granted, and we propose to amend section 
76.7(a)(3), accordingly, to reference ``any MVPD operator.'' \46\ We 
seek comment on our proposal. Because, as noted above, some local 
governments have expressed interest in orphan county issues, we also 
seek comment on whether franchising authorities \47\ or certain local 
government entities (such as cities, counties or towns) that may 
represent subscribers and local viewers in affected communities should 
be considered ``interested parties'' and served with market 
modification requests. We seek specific comment on whether to require 
petitioners seeking only a satellite carriage market modification to 
serve the relevant franchising authority. We note that while the 
Commission has found that a franchising authority represents the 
interests of subscribers and other local viewers in the cable 
context,\48\ franchising authorities currently have no role in 
satellite regulation.
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    \45\ 47 CFR 76.59(b). A fee is generally required for the filing 
of Special Relief petitions; 47 CFR 1.1104, 1.1117, 76.7. We remind 
filers that Special Relief petitions must be submitted 
electronically using the Commission's Electronic Comment Filing 
System (ECFS). See Media Bureau Announces Commencement of Mandatory 
Electronic Filing for Cable Special Relief Petitions and Cable Show 
Cause Petitions Via the Electronic Comment Filing System, Public 
Notice, DA 11-2095 (MB rel. Dec. 30, 2011). Petitions must be 
initially filed in MB Docket No. 12-1. Id.
    \46\ See 47 CFR 76.7(a)(3). While our rules currently state that 
documents that are required to be served must be served in paper 
form unless the parties agree to another method of service, 47 CFR 
1.47(d), we take notice of the Commission's broader efforts to 
modernize our procedures where possible. See, e.g., Amendment of 
Certain of the Commission's Part 1 Rules of Practice and Procedure 
and Part 0 Rules of Commission Organization, GC Docket No. 10-44, 
Order, FCC 14-183, 80 FR 1586, para. 26, Jan. 13, 2015 (authorizing 
Commission staff to accept secs. 214 and 215 filings in electronic 
form); Amendment of Certain of the Commission's Part 1 Rules of 
Practice and Procedure Relating to the Filing of Formal Complaints 
Under Section 208 of the Communications Act and Pole Attachment 
Complaints Under Section 224 of the Communications Act, GC Docket 
No. 10-44, Order, FCC 14-179, 79 FR 73844, para. 2, Dec. 12, 2014 
(mandating electronic filing of secs. 208 and 224 complaints). 
Service of market modification requests seems ripe for modernization 
as well. In the near term, the Commission will explore whether and 
how this and other types of required filings might transition to 
electronic form.
    \47\ We recognize, for example, that in several states, the 
state acts as the franchising authority instead of a local 
government.
    \48\ See KMSO-TV, Inc., CSR-883, Memorandum Opinion and Order, 
58 FCC2d 414, 415, para. 3 (1976).
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B. Statutory Factors and Evidentiary Requirements

    11. As discussed above, the purpose of market modifications is to 
permit adjustments to a particular station's local television market 
(which is initially defined by the DMA in which it is located) to 
better reflect localism and ensure that satellite subscribers receive 
the broadcast stations most relevant to them.\49\ To this end, the 
STELAR requires the Commission to consider five statutory factors when 
evaluating market modification requests. As noted, the STELAR added a 
fifth factor (inserted as the new third statutory factor) for both 
cable and satellite to ``promote consumers' access to television 
broadcast station signals that originate in their State of residence.'' 
\50\ The legislative history indicates Congress' concern that ``many 
consumers, particularly those who reside in DMAs that cross State lines 
or cover vast geographic distances,'' may ``lack access to local 
television programming that is relevant to their everyday lives.'' \51\ 
The legislative history further indicates Congress' intent that the 
Commission ``consider the plight of these consumers when judging the 
merits of a [market modification] petition . . . , even if granting 
such modification would pose an economic challenge to various local 
television broadcast stations.'' \52\ We tentatively conclude that this 
new third statutory factor is intended to favor a market modification 
to add a community if doing so would increase consumer access to in-
state programming. We also tentatively conclude, however, that this new 
third statutory factor is not intended to bar a market modification 
simply because it would not result in increased consumer access to in-
state programming. In such cases, we believe this new third

[[Page 19599]]

statutory factor would be inapplicable.\53\ We seek comment on these 
tentative conclusions and any alternative interpretations.
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    \49\ See 47 U.S.C. 338(l)(2)(B), 534(h)(1)(C)(ii) (requiring the 
Commission to ``afford particular attention to the value of 
localism'' by taking into account the five statutory factors).
    \50\ 47 U.S.C. 338(l)(2)(B)(iii), 534(h)(1)(C)(ii)(III). We will 
refer to this new factor as the ``third statutory factor.''
    \51\ Senate Commerce Committee Report at 11.
    \52\ Id.
    \53\ We note that this is similar to how we apply the fourth 
statutory factor (``whether any other television station that is 
eligible to be carried by a cable system in such community in 
fulfillment of the requirements of this section provides news 
coverage of issues of concern to such community or provides carriage 
or coverage of sporting and other events of interest to the 
community''). 47 U.S.C.534(h)(1)(C)(ii)(III). The Commission has 
found that this fourth factor (previously the third factor) is not 
intended to operate as a bar to a station's market modification 
request whenever other stations could also be shown to serve the 
communities at issue. See e.g., Great Trails Broadcasting Corp., DA 
95-1700, para. 23 (MB rel. Aug. 11, 1995); Paxson San Jose License, 
Inc., DA 97-2276, para. 13 (MB rel. Oct. 30, 1997). Rather, the 
fourth factor is intended to enhance a station's market modification 
request where it could be shown that other stations do not provide 
news coverage of issues of concern to the communities at issue. See 
id. Likewise, we believe the new third statutory factor is intended 
to enhance a station's market modification request where it could be 
shown that such modification would promote consumer access to in-
state programming.
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    12. We tentatively conclude that the evidentiary requirements 
currently required in section 76.59 continue to be appropriate to 
support and evaluate market modification petitions. Specifically, we 
propose that market modification requests for both satellite carriers 
and cable system operators must include the following evidence:
     A map or maps illustrating the relevant community 
locations and geographic features, station transmitter sites, cable 
system headend or satellite carrier local receive facility locations, 
terrain features that would affect station reception, mileage between 
the community and the television station transmitter site, 
transportation routes and any other evidence contributing to the scope 
of the market;
     Noise-limited service contour maps (for digital stations) 
or Grade B contour maps (for analog stations) delineating the station's 
technical service area and showing the location of the cable system 
headends or satellite carrier local receive facilities and communities 
in relation to the service areas.
     Available data on shopping and labor patterns in the local 
market.
     Television station programming information derived from 
station logs or the local edition of the television guide.
     Cable system or satellite carrier channel line-up cards or 
other exhibits establishing historic carriage, such as television guide 
listings.
     Published audience data for the relevant station showing 
its average all day audience (i.e., the reported audience averaged over 
Sunday-Saturday, 7 a.m.-1 a.m., or an equivalent time period) for both 
multichannel video programming distributor (MVPD) and non-MVPD 
households or other specific audience indicia, such as station 
advertising and sales data or viewer contribution records.\54\
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    \54\ See 47 CFR 76.59(b)(1) through (6).
---------------------------------------------------------------------------

    In 1999, the Commission adopted this standardized evidence approach 
for market modifications in the cable context in an effort to promote 
administrative efficiency, given the 120-day time period for Commission 
action on such petitions.\55\ We seek comment on whether to do the same 
for satellite and on whether any of these evidentiary requirements are 
not relevant in the satellite context. We further seek comment on 
whether any other evidence should be required to evaluate the statutory 
factors.
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    \55\ Definition of Markets for Purposes of the Cable Television 
Broadcast Signal Carriage Rules, CS Docket No. 95-178, Order on 
Reconsideration and Second Report and Order, FCC 99-116, 64 FR 
33788, para. 44, Jun. 24, 1999.
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    13. In particular, we seek comment on what evidence could be used 
to demonstrate the new ``third statutory factor,'' which seeks to 
promote consumer access to in-state programming.\56\ For example, in 
situations in which this third statutory factor would apply, should we 
require the petitioner to show that the station at issue is licensed to 
a community within the state in which the modification is requested and 
that the DMA at issue lacks any (or an adequate number of) in-state 
stations? We note that the current rule already requires a petitioner 
to provide television station programming information. Would this 
information provide sufficient evidence of whether the station at issue 
offers programming (e.g., news, sports, weather, political, talk shows, 
etc.) specifically covering in-state issues? Should we require a 
petitioner to provide a list of advertisers, which would show that the 
station is used to attract viewers to local businesses? In addition, 
are there any satellite-specific evidentiary showings that we should 
require separate and apart from the six evidentiary showings described 
above?
---------------------------------------------------------------------------

    \56\ 47 U.S.C. 338(l)(2)(B)(iii), 534(h)(1)(C)(ii)(III).
---------------------------------------------------------------------------

    14. In addition, we tentatively conclude to revise section 
76.59(b)(2) of the rules to add a reference to the digital noise-
limited service contour (NLSC), which is the relevant service contour 
for a station's digital signal.\57\ Section 76.59(b)(2) requires 
petitioners seeking a market modification to provide Grade B contour 
maps delineating the station's technical service area; \58\ however the 
Grade B contour defines an analog television station's service 
area.\59\ Since the completion of the full power digital television 
transition on June 12, 2009, there are no longer any full power analog 
stations and, therefore, the Commission uses the NLSC set forth in 47 
CFR 73.622(e),\60\ in place of the analog Grade B contour set forth in 
47 CFR 73.683(a), to describe a full power station's technical service 
area.\61\ Since the DTV transition, the Media Bureau has required full 
power stations to provide NLSC maps, in place of Grade B contour maps, 
for purposes of cable market modifications.\62\ Therefore, we 
tentatively conclude that section 76.59(b)(2) should be updated for 
purposes of market modifications in both the cable and satellite 
contexts. However, we propose to retain the reference in the rule to 
the Grade B contour because that reference may still have relevance 
with respect to low power television (LPTV) stations.\63\ We

[[Page 19600]]

seek comment on these tentative conclusions. (We are also updating 
section 76.59(b)(6) of the rules to reflect the change from ``evidence 
of viewing patterns in cable and noncable households . . .'' to 
``evidence of viewing patterns in households that subscribe and do not 
subscribe to the services offered by multichannel video programming 
distributors'' in the fifth statutory factor (emphasis added).\64\ We 
seek comment on this tentative conclusion.)
---------------------------------------------------------------------------

    \57\ See 47 CFR 76.59(b)(2).
    \58\ 47 CFR 76.59(b)(2).
    \59\ See 47 CFR 73.683(a).
    \60\ As set forth in section 73.622(e), a full-power station's 
DTV service area is defined as the area within its noise-limited 
contour where its signal strength is predicted to exceed the noise-
limited service level. See 47 CFR 73.622(e).
    \61\ See STELA Significantly Viewed Report and Order, at para. 
51 (2010) (stating that the digital NLSC is ``the appropriate 
service contour relevant for a station's digital signal''); 2010 
Quadrennial Regulatory Review--Review of the Commission's Broadcast 
Ownership Rules Adopted Pursuant to Section 202 of the 
Telecommunications Act of 1996, MB Docket No. 09-182, Notice of 
Inquiry, FCC 10-92, 75 FR 33227, para. 103, June 11, 2010 (stating 
that the Commission developed the digital NLSC to approximate the 
same probability of service as the Grade B contour and has stated 
that the two are roughly equivalent); Report To Congress: The 
Satellite Home Viewer Extension And Reauthorization Act of 2004; 
Study of Digital Television Field Strength Standards and Testing 
Procedures; ET Docket No. 05-182, FCC 05-199, para. 111 (rel. Dec. 
9, 2005). Since the DTV transition, the Media Bureau has used the 
digital NLSC in place of the analog Grade B contour in cable 
contexts in addition to market modifications. See, e.g., KXAN, Inc., 
Memorandum Opinion and Order, DA 10-589, para. 8 n.32 (MB rel. Apr. 
1, 2010) (using the NLSC in place of the Grade B contour for 
purposes of the cable network non-duplication and syndicated program 
exclusivity rules). Congress has also acted on the presumption that 
the two standards are roughly equivalent, by adopting parallel 
definitions for households that are ``unserved'' by analog (measured 
by Grade B) or digital (measured by NLSC) broadcasters in the STELA 
legislation enacted after the DTV transition. See 17 U.S.C. 
119(d)(10)(A)(i).
    \62\ See, e.g., Tennessee Broadcasting Partners, Memorandum 
Opinion and Order, DA 10-824, para. 6, n.14 (MB rel. May 12, 2010) 
(stating, in a market modification order, that the Commission has 
treated a digital station's NLSC as the functional equivalent of an 
analog station's Grade B contour); Lenfest Broadcasting, LLC, 
Memorandum Opinion and Order, DA 04-1414, para. 7, n.27 (MB rel. May 
20, 2004).
    \63\ We note that the Commission has tentatively concluded that 
it should extend the September 1, 2015 digital transition deadline 
for LPTV stations. See Amendment of Parts 73 and 74 of the 
Commission's Rules to Establish Rules for Digital Low Power 
Television, Television Translator, and Television Booster Stations, 
MB Docket No. 03-185, Third Notice of Proposed Rulemaking, FCC 14-
151, 79 FR 70824, para. 4, Nov. 28., 2014. Although LPTV stations 
are not entitled to mandatory satellite carriage, see 47 U.S.C. 
338(a)(3), LPTV stations may be entitled to mandatory cable 
carriage, but only in limited circumstances. Both the Communications 
Act and the Commission's rules mandate that only a minimum number of 
qualified low power stations must be carried by cable systems, see 
47 U.S.C. 534(c)(1); 47 CFR 76.56(b)(3), and, in order to qualify, 
such stations must meet several criteria. See 47 U.S.C. 
534(h)(2)(A)-(F); 47 CFR 76.55(d)(1)-(6).
    \64\ See 47 U.S.C. 338(l)(2)(B)(v), 534(h)(1)(C)(ii)(V).
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    15. Consistent with the cable carriage rule, we propose that 
satellite market modification requests that do not include the required 
evidence also be dismissed without prejudice and may be supplemented 
and re-filed at a later date with the appropriate filing fee.\65\ In 
addition, consistent with the cable carriage rule, we propose that, 
during the pendency of a market modification petition before the 
Commission, satellite carriers will also be required to maintain the 
status quo with regard to signal carriage and must not delete from 
carriage the signal of an affected commercial television station.\66\
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    \65\ See 47 CFR 76.59(c).
    \66\ See 47 CFR 76.59(d). See also 47 U.S.C. 338(l)(3)(B), 
534(h)(1)(C)(iii); Must Carry Order, at para. 46.
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C. Market Determinations

    16. Consistent with the cable carriage context, we interpret the 
statute to require that market modifications in the satellite carriage 
context must be limited to the specific station or stations identified 
in the market modification request and to the specific satellite 
community or communities referenced in the request.\67\ This reading is 
based on the statute's language granting authority to modify markets 
``with respect to a particular commercial television broadcast 
station.'' \68\ This also makes sense because market modification 
determinations are highly fact-specific and turn on whether a 
particular commercial television broadcast station serves the needs of 
a specific community. We also propose to consider market modification 
requests separately in the cable and satellite contexts. We believe 
this proposal makes sense given the service area differences between 
satellite carriers and cable systems and the potential difference 
between a cable and satellite community, given that the former is 
defined as ``a separate and distinct community or municipal entity'' 
and we consider defining the latter using one or more five-digit zip 
codes.\69\ We also propose that market modification requests will only 
apply to the satellite carrier or carriers named in the request.\70\ 
For example, a modification may not always appropriately apply to both 
carriers because their spot beams may be different, even though they 
are serving the same market and thus one may have an infeasibility 
defense while the other may not. We seek comment on these proposals. We 
also seek comment on any alternative approaches. For example, should 
market determinations apply for purposes of both cable and satellite 
carriage and what procedures or definitional changes would be needed to 
implement such an approach? How would such an alternative approach 
account for the STELAR's exception for satellite carriage that would 
not be ``technically and economically feasible'' (discussed below)?
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    \67\ See Must Carry Order, at para. 47, n.139 (stating that 
``the statute is intended to permit the modification of a station's 
market to reflect its individual situation''); 47 CFR 76.59. We note 
that this is also consistent with the Commission's previous 
determination that stations may make a different retransmission 
consent/mandatory carriage election in the satellite context than 
that made in the cable context. See DBS Broadcast Carriage Report 
and Order, at para. 23.
    \68\ 47 U.S.C. 338(l)(1).
    \69\ See id. at 1930, para. 24.
    \70\ This is also consistent with the satellite carriage 
election process. See Implementation of the Satellite Home Viewer 
Improvement Act of 1999: Broadcast Signal Carriage Issues, CS Docket 
No. 00-96, Order on Reconsideration, FCC 01-249, 66 FR 49124, para. 
62, Sept. 26., 2001 (DBS Must Carry Reconsideration Order) (``where 
there is more than one satellite carrier in a local market area, a 
television station can elect retransmission consent for one 
satellite carrier and elect must carry for another satellite 
carrier'').
---------------------------------------------------------------------------

    17. Prior Determinations. Because market modification 
determinations are so highly fact-specific, we tentatively conclude 
that prior market determinations made with respect to cable carriage 
will not automatically apply to the satellite context. It appears that 
the inherent differences between cable and satellite service would make 
such automatic application inadvisable. We note, however, that historic 
carriage is one of the five factors the Commission would consider in 
evaluating market modification requests and could carry weight in 
determining a market modification in the satellite context.\71\ We seek 
comment on these tentative conclusions. We also seek comment on any 
alternative approaches. For example, should prior market determinations 
in the cable context carry a presumption of approval in the satellite 
context or automatically apply to the satellite context? We note, 
however, that any presumption or automatic application would have to be 
subject to the STELAR's exception for satellite carriers if the 
resulting carriage would not be ``technically and economically 
feasible.'' Would such alternative approaches impose a significant 
burden on satellite carriers who would have to evaluate the feasibility 
of carriage resulting from all prior determinations?
---------------------------------------------------------------------------

    \71\ See 47 U.S.C. 338(l)(2)(B)(i)(I) (whether the station, or 
other stations located in the same area-- ``have been historically 
carried on the cable system or systems within such community'').
---------------------------------------------------------------------------

    18. Carriage after a market modification. We tentatively conclude 
that television broadcast stations that become eligible for mandatory 
carriage with respect to a satellite carrier (pursuant to section 76.66 
of the rules) by virtue of a change in the market definition (by 
operation of a market modification pursuant to section 76.59 of the 
rules) may, within 30 days of the effective date of the new definition, 
elect retransmission consent or mandatory carriage with respect to such 
carrier. We further tentatively conclude that a satellite carrier must 
commence carriage within 90 days of receiving the request for carriage 
from the television broadcast station. These proposals are consistent 
with our cable rules, as well as with existing satellite carriage 
procedures, including those involving new television stations.\72\ In 
addition, we tentatively conclude that the carriage election must be 
made in accordance with section 76.66(d)(1).\73\ We seek comment on 
these tentative conclusions

[[Page 19601]]

and on any other procedural requirements we should consider.
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    \72\ See 47 CFR 76.64(f)(5), 76.66(d)(1) and (d)(3).
    \73\ See 47 CFR 76.66(d)(1). Section 76.66(d)(1) requires that 
an election request made by a television station must be in writing 
and sent to the satellite carrier's principal place of business, by 
certified mail, return receipt requested. 47 CFR 76.66(d)(1)(ii). 
The rule requires that a television station's written notification 
shall include the following information: (1) Station's call sign; 
(2) Name of the appropriate station contact person; (3) Station's 
address for purposes of receiving official correspondence; (4) 
Station's community of license; (5) Station's DMA assignment; and 
(6) Station's election of mandatory carriage or retransmission 
consent. 47 CFR 76.66(d)(1)(iii). The rule also requires that, 
within 30 days of receiving the request for carriage from the 
television broadcast station, a satellite carrier must notify the 
station in writing that it will not carry the station, along with 
the reasons for such decision, or that it intends to carry the 
station. 47 CFR 76.66(d)(1)(iv).
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D. Technical or Economic Infeasibility Exception for Satellite Carriers

    19. We propose to include the statutory language of section 
338(l)(3) within section 76.59 to implement this provision, and we seek 
comment on this implementation. section 338(l)(3) provides that ``[a] 
market determination . . . shall not create additional carriage 
obligations for a satellite carrier if it is not technically and 
economically feasible for such carrier to accomplish such carriage by 
means of its satellites in operation at the time of the 
determination.'' \74\ The legislative history indicates that Congress 
recognized ``that there are technical and operational differences that 
may make a particular television market modification difficult for a 
satellite carrier to effectuate.'' \75\ The legislative history also 
indicates ``that claims of the existence of such difficulties should be 
well substantiated and carefully examined by the [Commission] as part 
of the petition consideration process.'' \76\ Based on the language of 
the provision and the legislative history, we tentatively conclude that 
the satellite carrier has the burden to demonstrate technical or 
economic infeasibility. We further interpret the statutory text as 
requiring a satellite carrier to raise any technical or economic 
impediments in the market modification proceeding and we propose to 
address this issue in the market modification proceeding. This reading 
is consistent with the language of the statute (that we consider 
whether the carrier can accomplish carriage ``at the time of the 
determination''). Moreover, this will be most efficient for all 
parties. We seek comment on this proposal and whether the satellite 
carrier should be deemed to have waived technical or economic 
infeasibility arguments if not raised in response to the market 
modification request (and, thus, be prohibited from raising such a 
claim after a market determination, such as in response to a station's 
request for carriage). We also seek comment on any alternative 
approaches. In addition, we propose to grant a meritorious market 
modification request, even if such grant would not create a new 
carriage obligation at that time, for example, due to a finding of 
technical or economic infeasibility.\77\ This would ensure that, if 
there is a change in circumstances such that it later becomes 
technically and economically feasible for the satellite carrier to 
carry the station, then the station could assert its carriage rights 
pursuant to the earlier market modification.\78\ We seek comment on 
this proposal or if, alternatively, we should deny a market 
modification request that would not create a new carriage obligation at 
the time of the determination.
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    \74\ 47 U.S.C. 338(l)(3).
    \75\ Senate Commerce Committee Report at 11.
    \76\ See id.
    \77\ We note that this is consistent with the cable carriage 
context, in which the Commission might grant a market modification, 
even if such grant would not result in a new carriage obligation at 
that time, for example, due to the station being a duplicating 
signal. See 47 CFR 76.56(b)(5).
    \78\ This concept is similar to the duplicating signals 
situation, in which a satellite carrier must add a television 
station to its channel line-up if such station no longer duplicates 
the programming of another local television station. See 47 CFR 
76.66(h)(4).
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    20. We also invite comment on the types of technical or economic 
impediments contemplated by this provision and the type of evidence 
needed to prove such infeasibility claims. Are there any objective 
criteria by which the Commission could determine technical or economic 
infeasibility? For example, the Commission has recognized that spot 
beam coverage limitations, in the provision of local-into-local service 
context, may be a legitimate technical impediment.\79\ Under what 
circumstances would the limitations or coverage of a spot beam be a 
sufficient basis for a satellite carrier to prove that carriage of a 
station in the community at issue is not technically and economically 
feasible? Should we require satellite carriers claiming infeasibility 
due to insufficient spot beam coverage to provide spot beam contour 
diagrams to show whether a particular spot beam can be used to cover a 
particular community? We also seek specific comment from satellite 
carriers on the complexities and expense that may be associated with 
reconfiguring a spot beam to cover additional communities added to the 
market served by the spot beam by operation of the market modification 
process. In addition, in the event of a Commission finding of technical 
or economic infeasibility, we seek comment on whether we should impose 
a reporting requirement on satellite carriers to notify the affected 
broadcaster if circumstances change at a later time making it 
technically and economically feasible for the carrier to carry the 
station. Would such changes in circumstances be sufficiently public so 
as to not necessitate the burden of such a reporting requirement? If 
not notified by the carrier, how else could a broadcaster find out 
about such a change in the feasibility of carriage? To the extent that 
a satellite carrier can provide the station at issue to some, but not 
all, subscribers in the community, should we allow or require the 
carrier to deliver the station to subscribers in the community who are 
capable of receiving the signal?
---------------------------------------------------------------------------

    \79\ See DBS Broadcast Carriage Report and Order, at para. 42 
(allowing satellite carriers to use spot beam technology to provide 
local-into-local service, even if the spot beam did not cover the 
entire market).
---------------------------------------------------------------------------

    21. We note that compiling the standardized evidence necessary to 
demonstrate that a market modification should be granted may not be, in 
some instances, a simple or inexpensive process. In this regard, should 
the Commission, in the case of satellite market modifications, require 
or encourage stations seeking market modifications to contact a 
satellite carrier before filing a market modification request in order 
to get an initial determination on whether the carrier considers the 
request technically and economically feasible? Such an initial inquiry 
might save some broadcasters the time and expense of compiling the 
standardized evidence for a modification that is not technically and 
economically feasible by alerting them to the technical or economic 
issue, which they could then take into account in deciding whether to 
file the request. We seek comment on this issue.

E. No Effect on Eligibility To Receive Distant Signals via Satellite

    22. We propose to include the statutory language of section 
338(l)(5) within section 76.59 to implement this provision, and we seek 
comment on any further guidance we can give for its implementation.\80\ 
Section 338(l)(5) provides that ``[n]o modification of a commercial 
television broadcast station's local market pursuant to this subsection 
shall have any effect on the eligibility of households in the community 
affected by such modification to receive distant signals pursuant to 
section 339, notwithstanding subsection (h)(1) of this section.'' \81\ 
There are two key restrictions on a satellite subscriber's eligibility 
to receive ``distant'' (out-of-market) signals.\82\ First, subscribers 
are generally eligible to receive a distant station from a satellite 
carrier only if the subscriber is ``unserved'' over the air by

[[Page 19602]]

a local station of the same network.\83\ Second, even if ``unserved,'' 
a subscriber is not eligible to receive a distant station from a 
satellite carrier if the carrier is making ``available'' to such 
subscriber a local station of the same network.\84\ We believe section 
338(l)(5) is largely intended as an exception to these two subscriber 
eligibility requirements. In other words, under this reading, the 
addition of a new local station to a local television market by 
operation of a market modification (which might otherwise restrict a 
subscriber's eligibility to receive a distant station) would not 
disqualify an otherwise eligible satellite subscriber from receiving a 
distant station of the same network. For example, a subscriber may be 
receiving a distant station because the subscriber resides in a ``short 
market,'' \85\ has obtained a waiver from the relevant network 
station,\86\ or is otherwise eligible to receive distant signals 
pursuant to section 339. That subscriber will continue to be eligible 
to receive the distant station after a market modification that adds a 
new local station of the same network. We seek comment on our proposed 
reading of this provision. We also seek comment on any alternative 
interpretations. We invite comment on the specific situations intended 
to be covered by section 338(l)(5). We seek comment on whether section 
338(l)(5) also means that the deletion of a local station from a local 
television market by operation of a market modification would not make 
otherwise ineligible subscribers now eligible to receive a distant 
station of the same network. We also seek comment on any other rule 
changes necessary to implement this statutory provision.
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    \80\ 47 U.S.C. 338(l)(5).
    \81\ Id.
    \82\ See 17 U.S.C. 119; 47 U.S.C. 339. Generally, a station is 
considered ``distant'' with respect to a subscriber if such station 
originates from outside of the subscriber's local television market 
(or DMA). See id.
    \83\ The Copyright Act defines an ``unserved household,'' with 
respect to a particular television network, as ``a household that 
cannot receive, through the use of an antenna, an over-the-air 
signal containing the primary stream, or, on or after the qualifying 
date, the multicast stream, originating in that household's local 
market and affiliated with that network--(i) if the signal 
originates as an analog signal, Grade B intensity as defined by the 
Federal Communications Commission in section 73.683(a) of title 47, 
Code of Federal Regulations, as in effect on January 1, 1999; or 
(ii) if the signal originates as a digital signal, intensity defined 
in the values for the digital television noise-limited service 
contour, as defined in regulations issued by the Federal 
Communications Commission (section 73.622(e) of title 47, Code of 
Federal Regulations), as such regulations may be amended from time 
to time. 17 U.S.C. 119(d)(10)(A). An unserved household can also be 
one that is subject to one of four statutory waivers or exemptions. 
See id. 119(d)(10)(B) through (E).
    \84\ See 47 U.S.C. 339(a)(2); 17 U.S.C. 119(a)(3). This second 
restriction on eligibility is commonly referred to as the ``no 
distant where local'' rule. A satellite carrier makes ``available'' 
a local signal to a subscriber or person if the satellite carrier 
offers that local signal to other subscribers who reside in the same 
zip code as that subscriber or person. 47 U.S.C. 339(a)(2)(H). See 
also 17 U.S.C. 119(a)(3)(F).
    \85\ See 47 U.S.C. 339(a)(2)(C); 17 U.S.C. 119(d)(10). By a 
``short market,'' we refer to a market in which one of the four 
major television networks is not offered on the primary stream of a 
local broadcast station, thus permitting satellite carriers to 
deliver a distant station affiliated with that missing network to 
subscribers in that market.
    \86\ See 47 U.S.C. 339(a)(2)(E).
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F. Definition of Community

    23. As directed by the STELAR, we consider how to define a 
``community'' for purposes of market modification in both the cable and 
satellite contexts.\87\ With respect to a ``satellite community,'' we 
generally invite comment on how to define a ``satellite community,'' 
and seek specific comment on two alternate proposals for this 
definition below. With respect to a ``cable community,'' we tentatively 
conclude that our existing definition of a ``cable community'' (in 
section 76.5(dd) of the rules) has worked well in cable market 
modifications for more than 20 years and should not be changed. While 
we continue to believe the cable definition best effectuates the cable 
market modification provision, we nevertheless invite comment on 
whether we need to update this definition, such as whether to allow 
cable modifications on a county basis. Section 102(d)(2) of the STELAR 
requires the Commission to ``update what it considers to be a community 
for purposes of a modification of a market'' in both the satellite and 
cable contexts.\88\ The legislative history indicates Congress' intent 
for the Commission ``to consider alternative definitions for community 
that could make the market modification process more effective and 
useful.'' \89\
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    \87\ STELAR sec. 102(d)(2); 47 U.S.C.A. 338 Note.
    \88\ STELAR sec. 102(d)(2) (``MATTERS FOR CONSIDERATION.--As 
part of the rulemaking required by paragraph (1), the Commission 
shall . . . update what it considers to be a community for purposes 
of a modification of a market under section 338(l) or 614(h)(1)(C) 
of the Communications Act of 1934''); 47 U.S.C.A. 338 Note.
    \89\ Senate Commerce Committee Report at 12.
---------------------------------------------------------------------------

    24. The concept of a ``community'' is important in the market 
modification context, because the term describes the geographic area 
that will be added to or deleted from a station's local television 
market, which in turn determines the stations that must be carried by a 
cable operator (or, in the future, a satellite carrier) to subscribers 
in that community.\90\ Because of the localized nature of cable 
systems, cable communities are easily defined by the geographic 
boundaries of a given cable system, which are often, but not always, 
coincident with a municipal boundary and may vary as determined on a 
case-by-case basis.\91\ In the cable carriage context, the Commission 
considers market modification requests on a community-by-community 
basis \92\ and defines a community unit in terms of a ``distinct 
community or municipal entity'' where a cable system operates or will 
operate.\93\ A ``satellite community,'' however, is not as easily 
defined as a cable community. Unlike cable service, which reaches 
subscribers in a defined local area via local franchises, satellite 
carriers offer service on a national basis, with no connection to a 
particular local community or municipality. Moreover, satellite service 
is sometimes offered in areas of the country that do not have cable 
service, and thus cannot be defined by cable communities. The 
Commission previously faced the question of how to define a satellite 
community in 2005, after the SHVERA added significantly viewed 
provisions for the satellite carriage context.\94\ In the significantly 
viewed context, the Commission, seeking regulatory parity, defined a 
satellite community in the same way as a cable community in most 
situations.\95\ However, the Commission

[[Page 19603]]

allowed a satellite carrier to define a satellite community ``by one or 
more adjacent five-digit zip code areas'' in the limited situation in 
which there was no previously defined cable community and the area was 
unincorporated.\96\
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    \90\ See 47 U.S.C. 338(a)(1); 47 CFR 76.66(b)(1).
    \91\ See Amendment of Part 76 of the Commission's Rules and 
Regulations with Respect to the Definition of a Cable Television 
System and the Creation of Classes of Cable Systems, Docket No. 
20561, First Report and Order, FCC 77-205, para. 20, n. 5 (rel. Apr. 
6, 1977) (1977 Cable Order).
    \92\ See 1977 Cable Order, para. 22 (explaining that the cable 
carriage rules apply ``on a community-by-community basis''). See 
also 47 CFR 76.5(dd), 76.59.
    \93\ 47 CFR 76.5(dd) defines ``community unit'' as: ``A cable 
television system, or portion of a cable television system, that 
operates or will operate within a separate and distinct community or 
municipal entity (including unincorporated communities within 
unincorporated areas and including single, discrete unincorporated 
areas).'' A cable system community is assigned a community unit 
identifier number (``CUID'') when registered with the Commission, 
pursuant to section 76.1801 of the rules. 47 CFR 76.1801.
    \94\ See Implementation of the Satellite Home Viewer Extension 
and Reauthorization Act of 2004, Implementation of Section 340 of 
the Communications Act, MB Docket No. 05-49, Report and Order, FCC 
05-187, 70 FR 76504, para. 51, December 27, 2005 (SHVERA 
Significantly Viewed Report and Order). The SHVERA defined the term 
``community'' for purposes of the significantly viewed rules, as 
either ``(A) a county or a cable community, as determined under the 
rules, regulations, and authorizations of the Commission applicable 
to determining with respect to a cable system whether signals are 
significantly viewed; or (B) a satellite community, as determined 
under such rules, regulations, and authorizations (or revisions 
thereof) as the Commission may prescribe in implementing the 
requirements of this section.'' 47 U.S.C. 340(i)(3).
    \95\ See 47 CFR 76.5(gg) (defining a ``satellite community'' as 
``[a] separate and distinct community or municipal entity (including 
unincorporated communities within unincorporated areas and including 
single, discrete unincorporated areas). The boundaries of any such 
unincorporated community may be defined by one or more adjacent 
five-digit zip code areas. Satellite communities apply only in areas 
in which there is no pre-existing cable community, as defined in 
76.5(dd).''). See also SHVERA Significantly Viewed Report and Order, 
at para. 50. We note, however, that the SHVERA required satellite 
carriers to use the existing defined cable communities on the 
significantly viewed list. See 47 U.S.C. 340(a)(1); 340(i)(3)(A). 
This provision, in part, caused the Commission to favor the use of 
cable communities to define future communities, except for 
unincorporated areas, to promote consistent rules and significantly 
viewed listings for both satellite and cable. See SHVERA 
Significantly Viewed Report and Order, at para. 51 (stating that the 
``definition will also make it more likely that a cable system 
subsequently built in such an area would serve a `community' similar 
to the satellite community, thus making the [Significantly Viewed] 
List more easily used by both cable and satellite providers''). This 
reasoning does not necessarily apply to the market modification 
context if we adopt our proposal to separately consider and apply 
market modifications in the cable and satellite contexts.
    \96\ 47 CFR 76.5(gg). The Commission required satellite carriers 
to use zip codes that were adjacent to each other ``to prevent 
carriers from cherry-picking their service to these areas.'' SHVERA 
Significantly Viewed Report and Order, at para. 52.
---------------------------------------------------------------------------

    25. We seek comment on whether we should use the definition of 
``satellite community'' in section 76.5(gg) for satellite market 
modifications.\97\ Alternatively, we seek comment on whether we should 
use one or more adjacent five-digit zip codes to form the basis of a 
``satellite community'' for satellite market modifications.\98\ Would 
allowing satellite carriers to use one or more adjacent five-digit zip 
code areas (notwithstanding the presence of a cable community) in the 
market modification context better effectuate the STELAR's goal to 
promote consumer access to relevant television programming? What other 
possible definitions of satellite community should we consider? Would 
another definition be more technically and economically feasible for 
satellite carriers to apply and, thus, facilitate successful market 
modifications? \99\ For example, it might not be technically and 
economically feasible for a satellite carrier to retransmit a station 
to an entire cable community (as defined in 76.5(dd)), but it might be 
feasible for the carrier to retransmit the station to particular 
portions of that community, such as to certain zip codes within such 
community. What definition of community will most effectively promote 
consumer access to in-state programming? \100\ For example, is it 
appropriate to consider county-based modifications in the satellite 
context, particularly in situations in which the county is assigned to 
an out-of-state DMA? \101\ If we allow modifications on a county basis 
in the satellite context, should we also allow such modifications in 
the cable context?
---------------------------------------------------------------------------

    \97\ See 47 CFR 76.5(gg).
    \98\ We note that the Commission used zip codes in lieu of 
community units to define the various zones of protection afforded 
under the satellite exclusivity rules applicable to nationally 
distributed superstations. See 47 CFR 76.122, 76.123; Implementation 
of the Satellite Home Viewer Improvement Act of 1999: Application of 
Network Non-Duplication, Syndicated Exclusivity, and Sports Blackout 
Rules to Satellite Retransmissions of Broadcast Signals, CS Docket 
No. 00-2, Report and Order, FCC 00-388, 65 FR 68082, para. 28, Nov. 
14, 2000, recon. granted in part, denied in part, Order on 
Reconsideration, FCC 02-287, 67 FR 68944, Nov. 14, 2002.
    \99\ We note that the two satellite carriers previously favored 
the use of zip codes in the significantly viewed context to offer 
``greater certainty to consumers.'' See SHVERA Significantly Viewed 
Report and Order, at para. 52.
    \100\ We take particular note here of Congress' concern that 
consumers in an out-of-state DMA may ``lack access to local 
television programming that is relevant to their everyday lives.'' 
Senate Commerce Committee Report at 11.
    \101\ See In-State Programming Report, at para. 58.
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IV. Procedural Matters

A. Initial Regulatory Flexibility Act Analysis

    26. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\102\ the Commission has prepared this Initial Regulatory 
Flexibility Analysis (IRFA) concerning the possible significant 
economic impact on small entities by the policies and rules proposed in 
this Notice of Proposed Rule Making (NPRM). 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 provided on the 
first page of the item. The Commission will send a copy of the NPRM, 
including this IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration (SBA).\103\ In addition, the NPRM and IRFA (or 
summaries thereof) will be published in the Federal Register.\104\
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    \102\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et seq., has 
been amended by the Contract With America Advancement Act of 1996, 
Public Law 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the 
CWAAA is the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA).
    \103\ See 5 U.S.C. 603(a).
    \104\ See id.
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1. Need for, and Objectives of, the Proposed Rule Changes
    27. In this Notice of Proposed Rulemaking (NPRM), the Commission 
proposes satellite television ``market modification'' rules to 
implement section 102 of the STELAR.\105\ The STELAR amended the 
Communications Act and the Copyright Act to give the Commission 
authority to modify a commercial television broadcast station's local 
television market for purposes of satellite carriage rights.\106\ The 
Commission currently has the authority to modify markets only in the 
cable carriage context.\107\ With section 102 of the STELAR, Congress 
provides regulatory parity in this regard in order ``to further 
consumer access to relevant television programming.'' \108\ In this 
NPRM, consistent with Congress' intent that the Commission model the 
satellite market modification process on the current cable market 
modification process, the Commission proposes to implement section 102 
of the STELAR by revising the current cable market modification rule, 
section 76.59, to apply also to satellite carriage, while adding 
provisions to the rules to address the unique nature of satellite 
television service.\109\ In addition to establishing rules for 
satellite market modifications, section 102 of the STELAR directs the 
Commission to consider whether it should make changes to the current 
cable market modification rules,\110\ and it also makes certain 
conforming amendments to the cable market modification statutory 
provision.\111\ Accordingly, as part of the implementation of the 
STELAR, the Commission proposes to make conforming changes to the cable 
market modification rules and considers whether it should make any 
other changes to the current cable market modification rules. The 
STELAR requires the Commission to issue final rules in this proceeding 
on or before September 4, 2015.\112\
---------------------------------------------------------------------------

    \105\ The STELA Reauthorization Act of 2014 (STELAR), sec. 102, 
Public Law 113-200, 128 Stat. 2059, 2060-62 (2014) (codified at 47 
U.S.C. 338(l)). The STELAR was enacted on December 4, 2014 (H. R. 
5728, 113th Cong.).
    \106\ STELAR secs. 102, 204, 128 Stat. at 2060-62, 2067.
    \107\ See 47 U.S.C. 534(h)(1)(C). See also 47 CFR 76.59.
    \108\ See title of STELAR sec. 102, ``Modification of Television 
Markets to Further Consumer Access to Relevant Television 
Programming.'' See also Report from the Senate Committee on 
Commerce, Science, and Transportation accompanying S. 2799, 113th 
Cong., S. Rep. No. 113-322 (2014) (``Senate Commerce Committee 
Report'').
    \109\ See 47 CFR 76.59. The Commission proposes to revise 
section 76.59 of the rules to apply to both cable systems and 
satellite carriers.
    \110\ STELAR sec. 102(d).
    \111\ See STELAR sec. 102(b) (amending 47 U.S.C. 
534(h)(1)(C)(ii)).
    \112\ STELAR sec. 102(d)(1).
---------------------------------------------------------------------------

2. Legal Basis
    28. The proposed action is authorized pursuant to section 102 of 
the STELA Reauthorization Act of 2014 (STELAR), Pub. L. 113-200, 128 
Stat. 2059 (2014), and sections 1, 4(i), 303(r), 338 and 614 of the 
Communications Act of 1934, as

[[Page 19604]]

amended, 47 U.S.C. 151, 154(i), 303(r), 338 and 534.
3. Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules Will Apply
    29. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted.\113\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \114\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\115\ A small business concern is one 
which: (1) Is independently owned and operated; (2) is not dominant in 
its field of operation; and (3) satisfies any additional criteria 
established by the SBA.\116\ The rule changes proposed herein will 
directly affect small television broadcast stations and small MVPD 
systems, which include cable system operators and satellite carriers. 
Below, we provide a description of such small entities, as well as an 
estimate of the number of such small entities, where feasible.
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    \113\ 5 U.S.C. 603(b)(3).
    \114\ 5 U.S.C. 601(6).
    \115\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in 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.'' 5 U.S.C. 601(3).
    \116\ 15 U.S.C. 632. Application of the statutory criteria of 
dominance in its field of operation and independence are sometimes 
difficult to apply in the context of broadcast television. 
Accordingly, the Commission's statistical account of television 
stations may be over-inclusive.
---------------------------------------------------------------------------

    30. Wired Telecommunications Carriers. The North American Industry 
Classification System (``NAICS'') defines ``Wired Telecommunications 
Carriers'' 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. By 
exception, establishments providing satellite television distribution 
services using facilities and infrastructure that they operate are 
included in this industry.'' \117\ The SBA has developed a small 
business size standard for wireline firms for the broad economic census 
category of ``Wired Telecommunications Carriers.'' Under this category, 
a wireline business is small if it has 1,500 or fewer employees.\118\ 
Census data for 2007 shows that there were 3,188 firms that operated 
for the entire year.\119\ Of this total, 3,144 firms had fewer than 
1,000 employees, and 44 firms had 1,000 or more employees.\120\ 
Therefore, under this size standard, we estimate that the majority of 
businesses can be considered small entities.
---------------------------------------------------------------------------

    \117\ U.S. Census Bureau, 2012 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch. Examples of this category are: broadband Internet 
service providers (e.g., cable, DSL); local telephone carriers 
(wired); cable television distribution services; long-distance 
telephone carriers (wired); closed circuit television (``CCTV'') 
services; VoIP service providers, using own operated wired 
telecommunications infrastructure; direct-to-home satellite system 
(``DTH'') services; telecommunications carriers (wired); satellite 
television distribution systems; and multichannel multipoint 
distribution services (``MMDS'').
    \118\ 13 CFR 121.201; NAICS code 517110.
    \119\ 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/nav/jsf/pages/index.xhtml.
    \120\ Id. With respect to the latter 44 firms, there is no data 
available that shows how many operated with more than 1,500 
employees.
---------------------------------------------------------------------------

    31. Cable Television Distribution Services. Since 2007, these 
services have been defined within the broad economic census category of 
Wired Telecommunications Carriers, which category is defined 
above.\121\ The SBA has developed a small business size standard for 
this category, which is: All such businesses having 1,500 or fewer 
employees.\122\ Census data for 2007 shows that there were 3,188 firms 
that operated for the entire year.\123\ Of this total, 3,144 firms had 
fewer than 1,000 employees, and 44 firms had 1,000 or more 
employees.\124\ Therefore, under this size standard, we estimate that 
the majority of businesses can be considered small entities.
---------------------------------------------------------------------------

    \121\ See also U.S. Census Bureau, 2012 NAICS Definitions, 
``517110 Wired Telecommunications Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \122\ 13 CFR 121.201; NAICS code 517110.
    \123\ 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/nav/jsf/pages/index.xhtml.
    \124\ Id. With respect to the latter 44 firms, there is no data 
available that shows how many operated with more than 1,500 
employees.
---------------------------------------------------------------------------

    32. Cable Companies and Systems. The Commission has also developed 
its own small business size standards, for the purpose of cable rate 
regulation. Under the Commission's rate regulation rules, a ``small 
cable company'' is one serving 400,000 or fewer subscribers, 
nationwide.\125\ According to SNL Kagan, there are 1,258 cable 
operators.\126\ Of this total, all but 10 incumbent cable companies are 
small under this size standard.\127\ In addition, under the 
Commission's rules, a ``small system'' is a cable system serving 15,000 
or fewer subscribers.\128\ Current Commission records show 4,584 cable 
systems nationwide.\129\ Of this total, 4,012 cable systems have fewer 
than 20,000 subscribers, and 572 systems have 20,000 subscribers or 
more, based on the same records. Thus, under this standard, we estimate 
that most cable systems are small.
---------------------------------------------------------------------------

    \125\ 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. Implementation of Sections of the Cable 
Television Consumer Protection and Competition Act of 1992: Rate 
Regulation, MM Docket No. 92-266, MM Docket No. 93-215, Sixth Report 
and Order and Eleventh Order on Reconsideration, FCC 95-196, 60 FR 
35854, July 12, 1995.
    \126\ Data provided by SNL Kagan to Commission Staff upon 
request on March 25, 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. See Annual Assessment 
of the Status of Competition in the Market for Delivery of Video 
Programming, MB Docket No. 12-203, Fifteenth Report, FCC 13-99, at 
para. 24 (rel. July 22, 2013) (15th Annual Competition Report).
    \127\ SNL Kagan, U.S. Multichannel Top Cable MSOs, http://www.snl.com/interactivex/TopCableMSOs.aspx (visited June 26, 2014). 
We note that when this size standard (i.e., 400,000 or fewer 
subscribers) is applied to all MVPD operators, all but 14 MVPD 
operators would be considered small. 15th Annual Competition Report, 
at paras. 27-28 (subscriber data for DBS and Telephone MVPDs). The 
Commission applied this size standard to MVPD operators in its 
implementation of the CALM Act. See Implementation of the Commercial 
Advertisement Loudness Mitigation (CALM) Act, MB Docket No. 11-93, 
Report and Order, FCC 11-182, 77 FR 40276, July 9, 2012 (CALM Act 
Report and Order) (defining a smaller MVPD operator as one serving 
400,000 or fewer subscribers nationwide, as of December 31, 2011).
    \128\ 47 CFR 76.901(c).
    \129\ The number of active, registered cable systems comes from 
the Commission's Cable Operations and Licensing System (COALS) 
database on July 1, 2014. A cable system is a physical system 
integrated to a principal headend.
---------------------------------------------------------------------------

    33. Cable System Operators (Telecom Act Standard). The 
Communications

[[Page 19605]]

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.'' \130\ The Commission has determined that an operator 
serving fewer than 677,000 subscribers shall be deemed a small 
operator, if its annual revenues, when combined with the total annual 
revenues of all its affiliates, do not exceed $250 million in the 
aggregate.\131\ Based on available data, we find that all but 10 
incumbent cable operators are small under this size standard.\132\ 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.\133\ 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 to 
estimate with greater precision the number of cable system operators 
that would qualify as small cable operators under this definition.
---------------------------------------------------------------------------

    \130\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
    \131\ 47 CFR 76.901(f); see Public Notice, FCC Announces New 
Subscriber Count for the Definition of Small Cable Operator, DA 01-
158 (Cable Services Bureau, Jan. 24, 2001) (establishing the 
threshold for determining whether a cable operator meets the 
definition of small cable operator at 677,000 subscribers and 
stating that this threshold will remain in effect for purposes of 
section 76.901(f) until the Commission issues a superseding public 
notice). We note that current industry data indicates that there are 
approximately 54 million incumbent cable video subscribers in the 
United States today and that this updated number may be considered 
in developing size standards in a context different than section 
76.901(f). NCTA, Industry Data, Cable's Customer Base (June 2014), 
https://www.ncta.com/industry-data (visited June 25, 2014).
    \132\ See SNL Kagan, U.S. Multichannel Top Cable MSOs, http://www.snl.com/interactivex/TopCableMSOs.aspx (visited June 26, 2014).
    \133\ 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 Sec.  76.901(f) of the Commission's rules. See 47 CFR 
76.901(f).
---------------------------------------------------------------------------

    34. Satellite Carriers. The term ``satellite carrier'' means an 
entity that uses the facilities of a satellite or satellite service 
licensed under Part 25 of the Commission's rules to operate in the 
Direct Broadcast Satellite (DBS) service or Fixed-Satellite Service 
(FSS) frequencies.\134\ As a general practice (not mandated by any 
regulation), DBS licensees usually own and operate their own satellite 
facilities as well as package the programming they offer to their 
subscribers. In contrast, satellite carriers using FSS facilities often 
lease capacity from another entity that is licensed to operate the 
satellite used to provide service to subscribers. These entities 
package their own programming and may or may not be Commission 
licensees themselves. In addition, a third situation may include an 
entity using a non-U.S. licensed satellite to provide programming to 
subscribers in the United States pursuant to a blanket earth station 
license.\135\ The Commission has concluded that the definition of 
``satellite carrier'' includes all three of these types of 
entities.\136\
---------------------------------------------------------------------------

    \134\ The Communications Act defines the term ``satellite 
carrier'' by reference to the definition in the copyright laws in 
title 17. See 47 U.S.C. 340(i)(1) and 338(k)(3); 17 U.S.C.119(d)(6). 
Part 100 of the Commission's rules was eliminated in 2002 and now 
both FSS and DBS satellite facilities are licensed under Part 25 of 
the rules. Policies and Rules for the Direct Broadcast Satellite 
Service, FCC 02-110, 67 FR 51110, August 7, 2002; 47 CFR 25.148.
    \135\ See, e.g., Application Of DIRECTV Enterprises, LLC, 
Request For Special Temporary Authority for the DIRECTV 5 Satellite; 
Application Of DIRECTV Enterprises, LLC, Request for Blanket 
Authorization for 1,000,000 Receive Only Earth Stations to Provide 
Direct Broadcast Satellite Service in the U.S. using the Canadian 
Authorized DIRECTV 5 Satellite at the 72.5[deg] W.L. Broadcast 
Satellite Service Location, Order and Authorization, DA 04-2526 
(Sat. Div. rel. Aug. 13, 2004).
    \136\ SHVERA Significantly Viewed Report and Order, at paras. 
59-60.
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    35. Direct Broadcast Satellite (DBS) Service. DBS service is a 
nationally distributed subscription service that delivers video and 
audio programming via satellite to a small parabolic ``dish'' antenna 
at the subscriber's location. DBS, by exception, is now included in the 
SBA's broad economic census category, Wired Telecommunications 
Carriers,\137\ which was developed for small wireline businesses. Under 
this category, the SBA deems a wireline business to be small if it has 
1,500 or fewer employees.\138\ Census data for 2007 shows that there 
were 3,188 firms that operated for the entire year.\139\ Of this total, 
3,144 firms had fewer than 1,000 employees, and 44 firms had 1,000 or 
more employees.\140\ Therefore, under this size standard, the majority 
of such businesses can be considered small. However, the data we have 
available as a basis for estimating the number of such small entities 
were gathered under a superseded SBA small business size standard 
formerly titled ``Cable and Other Program Distribution.'' The 
definition of Cable and Other Program Distribution provided that a 
small entity is one with $12.5 million or less in annual receipts.\141\ 
Currently, only two entities provide DBS service, which requires a 
great investment of capital for operation: DIRECTV and DISH 
Network.\142\ Each currently offers subscription services. DIRECTV and 
DISH Network each reports annual revenues that are in excess of the 
threshold for a small business. Because DBS service requires 
significant capital, we believe it is unlikely that a small entity as 
defined by the SBA would have the financial wherewithal to become a DBS 
service provider.
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    \137\ This category of Wired Telecommunications Carriers is 
defined above (``By exception, establishments providing satellite 
television distribution services using facilities and infrastructure 
that they operate are included in this industry.''). U.S. Census 
Bureau, 2012 NAICS Definitions, ``517110 Wired Telecommunications 
Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \138\ 13 CFR 121.201; NAICS code 517110.
    \139\ 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/nav/jsf/pages/index.xhtml.
    \140\ Id. With respect to the latter 44 firms, there is no data 
available that shows how many operated with more than 1,500 
employees.
    \141\ 13 CFR 121.201; NAICS code 517510 (2002).
    \142\ See 15th Annual Competition Report, at para. 27. As of 
June 2012, DIRECTV is the largest DBS operator and the second 
largest MVPD in the United States, serving approximately 19.9 
million subscribers. DISH Network is the second largest DBS operator 
and the third largest MVPD, serving approximately 14.1 million 
subscribers. Id. at paras. 27, 110-11.
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    36. Satellite Master Antenna Television (SMATV) Systems, also known 
as Private Cable Operators (PCOs). SMATV systems or PCOs are video 
distribution facilities that use closed transmission paths without 
using any public right-of-way. They acquire video programming and 
distribute it via terrestrial wiring in urban and suburban multiple 
dwelling units such as apartments and condominiums, and commercial 
multiple tenant units such as hotels and office buildings. SMATV 
systems or PCOs are now included in the SBA's broad economic census 
category, Wired Telecommunications Carriers,\143\ which was developed 
for small wireline businesses. Under this category, the SBA deems a 
wireline business to be small if it has 1,500 or fewer employees.\144\ 
Census data for 2007 shows that there were 3,188 firms

[[Page 19606]]

that operated for the entire year.\145\ Of this total, 3,144 firms had 
fewer than 1,000 employees, and 44 firms had 1,000 or more 
employees.\146\ Therefore, under this size standard, the majority of 
such businesses can be considered small.
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    \143\ This category of Wired Telecommunications Carriers is 
defined above (``By exception, establishments providing satellite 
television distribution services using facilities and infrastructure 
that they operate are included in this industry.''). U.S. Census 
Bureau, 2012 NAICS Definitions, ``517110 Wired Telecommunications 
Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \144\ 13 CFR 121.201; NAICS code 517110.
    \145\ 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/nav/jsf/pages/index.xhtml.
    \146\ Id. With respect to the latter 44 firms, there is no data 
available that shows how many operated with more than 1,500 
employees.
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    37. Home Satellite Dish (HSD) Service. HSD or the large dish 
segment of the satellite industry is the original satellite-to-home 
service offered to consumers, and involves the home reception of 
signals transmitted by satellites operating generally in the C-band 
frequency. Unlike DBS, which uses small dishes, HSD antennas are 
between four and eight feet in diameter and can receive a wide range of 
unscrambled (free) programming and scrambled programming purchased from 
program packagers that are licensed to facilitate subscribers' receipt 
of video programming. Because HSD provides subscription services, HSD 
falls within the SBA-recognized definition of Wired Telecommunications 
Carriers.\147\ The SBA has developed a small business size standard for 
this category, which is: all such businesses having 1,500 or fewer 
employees.\148\ Census data for 2007 shows that there were 3,188 firms 
that operated for the entire year.\149\ Of this total, 3,144 firms had 
fewer than 1,000 employees, and 44 firms had 1,000 or more 
employees.\150\ Therefore, under this size standard, we estimate that 
the majority of businesses can be considered small entities.
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    \147\ This category of Wired Telecommunications Carriers is 
defined above (``By exception, establishments providing satellite 
television distribution services using facilities and infrastructure 
that they operate are included in this industry.''). U.S. Census 
Bureau, 2012 NAICS Definitions, ``517110 Wired Telecommunications 
Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \148\ 13 CFR 121.201; NAICS code 517110.
    \149\ 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/nav/jsf/pages/index.xhtml.
    \150\ Id. With respect to the latter 44 firms, there is no data 
available that shows how many operated with more than 1,500 
employees.
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    38. Open Video Services. 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.\151\ The OVS framework provides opportunities for the 
distribution of video programming other than through cable systems. 
Because OVS operators provide subscription services,\152\ OVS falls 
within the SBA small business size standard covering cable services, 
which is Wired Telecommunications Carriers.\153\ The SBA has developed 
a small business size standard for this category, which is: all such 
businesses having 1,500 or fewer employees.\154\ Census data for 2007 
shows that there were 3,188 firms that operated for the entire 
year.\155\ Of this total, 3,144 firms had fewer than 1,000 employees, 
and 44 firms had 1,000 or more employees.\156\ Therefore, under this 
size standard, we estimate that the majority of businesses can be 
considered small entities. In addition, we note that the Commission has 
certified some OVS operators, with some now providing service.\157\ 
Broadband service providers (``BSPs'') are currently the only 
significant holders of OVS certifications or local OVS franchises.\158\ 
The Commission does not have financial or employment information 
regarding the entities authorized to provide OVS, some of which may not 
yet be operational. Thus, again, at least some of the OVS operators may 
qualify as small entities.
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    \151\ 47 U.S.C. 571(a)(3) through (4). See Annual Assessment of 
the Status of Competition in the Market for the Delivery of Video 
Programming, MB Docket No. 06-189, Thirteenth Annual Report, FCC 07-
206, 74 FR 11102, para. 135, March 16, 2009 (Thirteenth Annual Cable 
Competition Report).
    \152\ See 47 U.S.C. 573.
    \153\ This category of Wired Telecommunications Carriers is 
defined above. See also U.S. Census Bureau, 2012 NAICS Definitions, 
``517110 Wired Telecommunications Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \154\ 13 CFR 121.201; NAICS code 517110.
    \155\ 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/nav/jsf/pages/index.xhtml.
    \156\ Id. With respect to the latter 44 firms, there is no data 
available that shows how many operated with more than 1,500 
employees.
    \157\ A list of OVS certifications may be found at http://www.fcc.gov/mb/ovs/csovscer.html.
    \158\ See Thirteenth Annual Cable Competition Report, at para. 
135. BSPs are newer businesses that are building state-of-the-art, 
facilities-based networks to provide video, voice, and data services 
over a single network.
---------------------------------------------------------------------------

    39. Wireless cable systems--Broadband Radio Service and Educational 
Broadband Service. Wireless cable systems use the Broadband Radio 
Service (BRS) \159\ and Educational Broadband Service (EBS) \160\ to 
transmit video programming to subscribers. In connection with the 1996 
BRS auction, the Commission established a small business size standard 
as an entity that had annual average gross revenues of no more than $40 
million in the previous three calendar years.\161\ The BRS auctions 
resulted in 67 successful bidders obtaining licensing opportunities for 
493 Basic Trading Areas (BTAs). Of the 67 auction winners, 61 met the 
definition of a small business. BRS also includes licensees of stations 
authorized prior to the auction. At this time, we estimate that of the 
61 small business BRS auction winners, 48 remain small business 
licensees. In addition to the 48 small businesses that hold BTA 
authorizations, there are approximately 392 incumbent BRS licensees 
that are considered small entities.\162\ After adding the number of 
small business auction licensees to the number of incumbent licensees 
not already counted, we find that there are currently approximately 440 
BRS licensees that are defined as small businesses under either the SBA 
or the Commission's rules. In 2009, the Commission conducted Auction 
86, the sale of 78 licenses in the BRS areas.\163\ The Commission 
offered three levels of bidding credits: (i) A bidder with attributed 
average annual gross revenues that exceed $15 million and do not exceed 
$40 million for the preceding three years (small business) received a 
15 percent discount on its winning bid; (ii) a bidder with attributed 
average annual gross revenues that exceed $3 million and do not exceed 
$15 million for the preceding three years (very small business) 
received a 25 percent discount on its winning bid; and (iii) a bidder

[[Page 19607]]

with attributed average annual gross revenues that do not exceed $3 
million for the preceding three years (entrepreneur) received a 35 
percent discount on its winning bid.\164\ Auction 86 concluded in 2009 
with the sale of 61 licenses.\165\ Of the 10 winning bidders, two 
bidders that claimed small business status won four licenses; one 
bidder that claimed very small business status won three licenses; and 
two bidders that claimed entrepreneur status won six licenses.
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    \159\ BRS was previously referred to as Multipoint Distribution 
Service (MDS) and Multichannel Multipoint Distribution Service 
(MMDS). See Amendment of Parts 21 and 74 of the Commission's Rules 
with Regard to Filing Procedures in the Multipoint Distribution 
Service and in the Instructional Television Fixed Service and 
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, MM Docket No. 94-131, PP Docket No. 93-253, 
Report and Order, FCC 95-230, 60 FR 36524, para. 7, Jul. 17, 1995.
    \160\ EBS was previously referred to as the Instructional 
Television Fixed Service (ITFS). See id.
    \161\ 47 CFR 21.961(b)(1).
    \162\ 47 U.S.C. 309(j). Hundreds of stations were licensed to 
incumbent MDS licensees prior to implementation of section 309(j) of 
the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-
auction licenses, the applicable standard is SBA's small business 
size standard of 1,500 or fewer employees.
    \163\ Auction of Broadband Radio Service (BRS) Licenses, 
Scheduled for October 27, 2009, Notice and Filing Requirements, 
Minimum Opening Bids, Upfront Payments, and Other Procedures for 
Auction 86, AU Docket No. 09-56, Public Notice, DA 09-1376 (WTB rel. 
Jun. 26, 2009).
    \164\ Id. at 8296.
    \165\ Auction of Broadband Radio Service Licenses Closes, 
Winning Bidders Announced for Auction 86, Down Payments Due November 
23, 2009, Final Payments Due December 8, 2009, Ten-Day Petition to 
Deny Period, Public Notice, DA 09-2378 (WTB rel. Nov. 6, 2009.
---------------------------------------------------------------------------

    40. In addition, the SBA's placement of Cable Television 
Distribution Services in the category of Wired Telecommunications 
Carriers is applicable to cable-based Educational Broadcasting 
Services. Since 2007, these services have been defined within the broad 
economic census category of Wired Telecommunications Carriers,\166\ 
which was developed for small wireline businesses. The SBA has 
developed a small business size standard for this category, which is: 
all such businesses having 1,500 or fewer employees.\167\ Census data 
for 2007 shows that there were 3,188 firms that operated for the entire 
year.\168\ Of this total, 3,144 firms had fewer than 1,000 employees, 
and 44 firms had 1,000 or more employees.\169\ Therefore, under this 
size standard, we estimate that the majority of businesses can be 
considered small entities. In addition to Census data, the Commission's 
internal records indicate that as of September 2012, there are 2,241 
active EBS licenses.\170\ The Commission estimates that of these 2,241 
licenses, the majority are held by non-profit educational institutions 
and school districts, which are by statute defined as small 
businesses.\171\
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    \166\ This category of Wired Telecommunications Carriers is 
defined above. See also U.S. Census Bureau, 2012 NAICS Definitions, 
``517110 Wired Telecommunications Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \167\ 13 CFR 121.201; NAICS code 517110.
    \168\ 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/nav/jsf/pages/index.xhtml.
    \169\ Id. With respect to the latter 44 firms, there is no data 
available that shows how many operated with more than 1,500 
employees.
    \170\ http://wireless2.fcc.gov/UlsApp/UlsSearch/results.jsp.
    \171\ The term ``small entity'' within SBREFA applies to small 
organizations (non-profits) and to small governmental jurisdictions 
(cities, counties, towns, townships, villages, school districts, and 
special districts with populations of fewer than 50,000). 5 U.S.C. 
601(4) through (6).
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    41. Incumbent Local Exchange Carriers (ILECs). Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for incumbent local exchange services. ILECs are included 
in the SBA's economic census category, Wired Telecommunications 
Carriers.\172\ Under this category, the SBA deems a wireline business 
to be small if it has 1,500 or fewer employees.\173\ Census data for 
2007 shows that there were 3,188 firms that operated for the entire 
year.\174\ Of this total, 3,144 firms had fewer than 1,000 employees, 
and 44 firms had 1,000 or more employees.\175\ Therefore, under this 
size standard, the majority of such businesses can be considered small.
---------------------------------------------------------------------------

    \172\ This category of Wired Telecommunications Carriers is 
defined above. See also U.S. Census Bureau, 2012 NAICS Definitions, 
``517110 Wired Telecommunications Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \173\ 13 CFR 121.201; NAICS code 517110.
    \174\ 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/nav/jsf/pages/index.xhtml.
    \175\ Id. With respect to the latter 44 firms, there is no data 
available that shows how many operated with more than 1,500 
employees.
---------------------------------------------------------------------------

    42. Small Incumbent Local Exchange Carriers. We have included small 
incumbent local exchange carriers in this present RFA analysis. A 
``small business'' under the RFA is one that, inter alia, meets the 
pertinent small business size standard (e.g., a telephone 
communications business having 1,500 or fewer employees), and ``is not 
dominant in its field of operation.'' \176\ The SBA's Office of 
Advocacy contends that, for RFA purposes, small incumbent local 
exchange carriers are not dominant in their field of operation because 
any such dominance is not ``national'' in scope.\177\ We have therefore 
included small incumbent local exchange carriers in this RFA analysis, 
although we emphasize that this RFA action has no effect on Commission 
analyses and determinations in other, non-RFA contexts.
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    \176\ 15 U.S.C. 632.
    \177\ Letter from Jere W. Glover, Chief Counsel for Advocacy, 
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small 
Business Act contains a definition of ``small-business concern,'' 
which the RFA incorporates into its own definition of ``small 
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 
601(3) (RFA). SBA regulations interpret ``small business concern'' 
to include the concept of dominance on a national basis. See 13 CFR 
121.102(b).
---------------------------------------------------------------------------

    43. Competitive Local Exchange Carriers (CLECs), Competitive Access 
Providers (CAPs), Shared-Tenant Service Providers, and Other Local 
Service Providers. Neither the Commission nor the SBA has developed a 
small business size standard specifically for these service providers. 
These entities are included in the SBA's economic census category, 
Wired Telecommunications Carriers.\178\ Under this category, the SBA 
deems a wireline business to be small if it has 1,500 or fewer 
employees.\179\ Census data for 2007 shows that there were 3,188 firms 
that operated for the entire year.\180\ Of this total, 3,144 firms had 
fewer than 1,000 employees, and 44 firms had 1,000 or more 
employees.\181\ Therefore, under this size standard, the majority of 
such businesses can be considered small.
---------------------------------------------------------------------------

    \178\ This category of Wired Telecommunications Carriers is 
defined above. See also U.S. Census Bureau, 2012 NAICS Definitions, 
``517110 Wired Telecommunications Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \179\ 13 CFR 121.201; NAICS code 517110.
    \180\ 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/nav/jsf/pages/index.xhtml.
    \181\ Id. With respect to the latter 44 firms, there is no data 
available that shows how many operated with more than 1,500 
employees.
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    44. Television Broadcasting. This economic census category 
``comprises establishments primarily engaged in broadcasting images 
together with sound.'' \182\ The SBA has created the following small 
business size standard for such businesses: those having $38.5 million 
or less in annual receipts.\183\ 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.\184\ Because the Census has

[[Page 19608]]

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

    \182\ U.S. Census Bureau, 2012 NAICS Definitions, ``515120 
Television Broadcasting,'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch. This category description continues, ``These 
establishments operate television broadcasting studios and 
facilities for the programming and transmission of programs to the 
public. These establishments also produce or transmit visual 
programming to affiliated broadcast television stations, which in 
turn broadcast the programs to the public on a predetermined 
schedule. Programming may originate in their own studios, from an 
affiliated network, or from external sources.''
    \183\ 13 CFR 121.201; 2012 NAICS code 515120.
    \184\ 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.
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    45. Apart from the U.S. Census, the Commission has estimated the 
number of licensed commercial television stations to be 1,390 
stations.\185\ 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.\186\ NCE stations are non-profit, and therefore considered to be 
small entities.\187\ Therefore, we estimate that the majority of 
television broadcast stations are small entities.
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    \185\ See Broadcast Station Totals as of December 31, 2014, 
Press Release (MB rel. Jan. 7, 2015) (Broadcast Station Totals) at 
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-331381A1.pdf.
    \186\ See Broadcast Station Totals, supra.
    \187\ See generally 5 U.S.C. 601(4), (6).
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    46. We note, however, that in assessing whether a business concern 
qualifies as small under the above definition, business (control) 
affiliations \188\ must be included. Our estimate, therefore, likely 
overstates the number of small entities that might be affected by our 
action because the revenue figure on which it is based does not include 
or aggregate revenues from affiliated companies. In addition, an 
element of the definition of ``small business'' is that the 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 station is dominant in its field of operation. Accordingly, 
the estimate of small businesses to which rules may apply does not 
exclude any television station from the definition of a small business 
on this basis and is therefore possibly over-inclusive to that extent.
---------------------------------------------------------------------------

    \188\ ``[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 to power to control both.'' 
13 CFR 21.103(a)(1).
---------------------------------------------------------------------------

    47. Class A TV and LPTV Stations. The same SBA definition that 
applies to television broadcast stations would apply to licensees of 
Class A television stations and low power television (LPTV) stations, 
as well as to potential licensees in these television services. As 
noted above, the SBA has created the following small business size 
standard for this category: those having $38.5 million or less in 
annual receipts.\189\ The Commission has estimated the number of 
licensed Class A television stations to be 431.\190\ The Commission has 
also estimated the number of licensed LPTV stations to be 2,003.\191\ 
Given the nature of these services, we will presume that these 
licensees qualify as small entities under the SBA definition.
---------------------------------------------------------------------------

    \189\ 13 CFR 121.201; NAICS code 515120.
    \190\ See Broadcast Station Totals, supra.
    \191\ See Broadcast Station Totals, supra.
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4. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements
    48. The NPRM proposes to revise section 76.59 of the rules to apply 
it to the satellite television context, thus permitting commercial TV 
broadcast stations and satellite carriers to file petitions seeking to 
modify a commercial TV broadcast station's local television market for 
purposes of satellite carriage rights. Under section 76.59 of the 
rules, commercial TV broadcast stations and cable system operators may 
already file such requests for market modification for purposes of 
cable carriage rights. Consistent with the current cable requirement in 
section 76.59, the proposed rules would require commercial TV broadcast 
stations and satellite carriers to file market modification requests 
and/or responsive pleadings in accordance with the procedures for 
filing Special Relief petitions in section 76.7 of the rules.\192\ 
Consistent with the current cable requirement in section 76.59, the 
proposed rules would require commercial TV broadcast stations and 
satellite carriers to provide specific forms of evidence to support 
market modification petitions, should they chose to file such 
petitions. The proposed rules would also require a satellite carrier to 
provide specific evidence to demonstrate its claim that satellite 
carriage resulting from a market modification would be technically or 
economically infeasible. The NPRM does not otherwise propose any new 
reporting, recordkeeping or other compliance requirements.
---------------------------------------------------------------------------

    \192\ Broadcasters and satellite carriers that want to oppose 
market modification requests would need to file responsive pleadings 
in accordance with 47 CFR 76.7.
---------------------------------------------------------------------------

5. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered
    49. 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.\193\
---------------------------------------------------------------------------

    \193\ 5 U.S.C. 603(c)(1) through (c)(4).
---------------------------------------------------------------------------

    50. Consistent with the statute's goal of promoting regulatory 
parity between cable and satellite service, the NPRM proposes to apply 
the existing cable market modification rule to the satellite context. 
The proposed rules would not change the market modification process 
currently applicable to small television stations and small cable 
systems, although the proposed rules would for the first time allow 
stations to request market modifications for purposes of satellite 
carriage. Small TV stations that choose to file satellite market 
modification petitions must comply with the associated filing and 
evidentiary requirements; however, the filing of such petitions is 
voluntary. In addition, small TV stations may want to respond to a 
petition to modify its market (or the market of a competitor station) 
filed by a satellite carrier or a competitor station; however, there 
are no standardized evidentiary requirements associated with such 
responsive pleadings. Through a market modification process, a small TV 
station may gain or lose carriage rights with respect to a particular 
community, based on the five statutory factors, to better reflect 
localism.\194\ We do not

[[Page 19609]]

have data to measure whether small TV stations on the whole are more or 
less likely to benefit from market modifications, so we invite small TV 
stations to comment on this issue. In addition, we invite comment on 
whether there are any alternatives we should consider to the 
Commission's proposed implementation of section 102 of the STELAR that 
would minimize any adverse impact on small TV stations, but which are 
consistent with the statute and its goals, such as promoting localism 
and regulatory parity.
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    \194\ Section 338(l) of the Act provides that, in deciding 
requests for market modifications, the Commission must afford 
particular attention to the value of localism by taking into account 
the following five factors: (1) Whether the station, or other 
stations located in the same area--(a) have been historically 
carried on the cable system or systems within such community; and 
(b) have been historically carried on the satellite carrier or 
carriers serving such community; (2) whether the television station 
provides coverage or other local service to such community; (3) 
whether modifying the local market of the television station would 
promote consumers' access to television broadcast station signals 
that originate in their State of residence; (4) whether any other 
television station that is eligible to be carried by a satellite 
carrier in such community in fulfillment of the requirements of this 
section provides news coverage of issues of concern to such 
community or provides carriage or coverage of sporting and other 
events of interest to the community; and (5) evidence of viewing 
patterns in households that subscribe and do not subscribe to the 
services offered by multichannel video programming distributors 
within the areas served by such multichannel video programming 
distributors in such community. 47 U.S.C. 338(l)(2)(B)(i) through 
(v).
---------------------------------------------------------------------------

    51. The proposed rules, for the first time, would allow satellite 
carriers to request market modifications. As previously discussed, only 
two entities--DIRECTV and DISH Network--provide direct broadcast 
satellite (DBS) service, which requires a great investment of capital 
for operation. As noted in section C of this IRFA, neither one of these 
two entities qualify as a small entity and small businesses do not 
generally have the financial ability to become DBS licensees because of 
the high implementation costs associated with satellite services.\195\
---------------------------------------------------------------------------

    \195\ See IRFA para. 10.
---------------------------------------------------------------------------

6. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rule
    52. None.

B. Initial Paperwork Reduction Act of 1995 Analysis

    53. This document contains proposed information collection 
requirements.\196\ 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 (PRA).\197\
---------------------------------------------------------------------------

    \196\ See OMB Control Number 3060-0546.
    \197\ The Paperwork Reduction Act of 1995 (PRA), Public Law 104-
13, 109 Stat 163 (1995) (codified in Chapter 35 of title 44 U.S.C.).
---------------------------------------------------------------------------

    54. Public and agency comments are due June 12, 2015. Comments 
should address: (a) Whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's burden estimates; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology.\198\ In 
addition, we seek specific comment on how we might ``further reduce the 
information collection burden for small business concerns with fewer 
than 25 employees,'' pursuant to the Small Business Paperwork Relief 
Act of 2002.\199\
---------------------------------------------------------------------------

    \198\ See 44 U.S.C. 3506(c)(2).
    \199\ The Small Business Paperwork Relief Act of 2002 (SBPRA), 
Public Law 107-198, 116 Stat 729 (2002) (codified in Chapter 35 of 
title 44 U.S.C.); see 44 U.S.C. 3506(c)(4).
---------------------------------------------------------------------------

    55. To view or obtain a copy of this information collection request 
(ICR) submitted to OMB: (1) Go to this OMB/GSA Web page: http://www.reginfo.gov/public/do/PRAMain, (2) look for the section of the Web 
page called ``Currently Under Review,'' (3) click on the downward-
pointing arrow in the ``Select Agency'' box below the ``Currently Under 
Review'' heading, (4) select ``Federal Communications Commission'' from 
the list of agencies presented in the ``Select Agency'' box, (5) click 
the ``Submit'' button to the right of the ``Select Agency'' box, and 
(6) when the list of FCC ICRs currently under review appears, look for 
the OMB control number of this ICR as shown in the Supplementary 
Information section below (or its title if there is no OMB control 
number) and then click on the ICR Reference Number. A copy of the FCC 
submission to OMB will be displayed.
    OMB Control Number: 3060-0546.
    Title: Section 76.59, Market Modification of Broadcast Television 
Stations for Purposes of the Cable and Satellite Mandatory Television 
Broadcast Signal Carriage Rules.
    Form Number: Not applicable.
    Type of Review: Revision of a currently approved collection.
    Respondents: Business or other for-profit entities.
    Number of Respondents and Responses: 80 respondents and 100 
responses.
    Estimated Time Per Response: 4 to 40 hours.
    Frequency of Response: On occasion reporting requirement.
    Obligation to Respond: Required to obtain or retain benefits. 
Statutory authority for this collection of information is contained in 
section 102 of the STELA Reauthorization Act of 2014 (STELAR), Public 
Law 113-200, 128 Stat. 2059 (2014), and sections 1, 4(i), 303(r), 338 
and 614 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154(i), 303(r), 338 and 534.
    Total Annual Burden: 976 hours.
    Total Annual Costs: $1,277,300.
    Nature and Extent of Confidentiality: There is no assurance of 
confidentiality provided to respondents.
    Privacy Impact Assessment: No impact(s).
    Needs and Uses: On March 26, 2015, the Commission released a Notice 
of Proposed Rulemaking (NPRM), FCC 15-34, in MB Docket No. 15-71, 
proposing satellite television market modification rules to implement 
section 102 of the Satellite Television Extension and Localism Act 
Reauthorization Act of 2014 (STELAR). To implement section 102 of the 
STELAR, the NPRM proposes to revise 47 CFR 76.59 of the rules to apply 
it to the satellite television context, thus permitting commercial TV 
broadcast stations and satellite carriers to file petitions seeking to 
modify a commercial TV broadcast station's local television market for 
purposes of satellite carriage rights. Under 47 CFR 76.59 of the rules, 
commercial TV broadcast stations and cable system operators may already 
file such requests for market modification for purposes of cable 
carriage rights.

C. Ex Parte Rules

    56. The proceeding this Notice of Proposed Rulemaking initiates 
shall be treated as a ``permit-but-disclose'' proceeding in accordance 
with the Commission's ex parte rules.\200\ Ex parte presentations are 
permissible if disclosed in accordance with Commission rules, except 
during the Sunshine Agenda period when presentations, ex parte or 
otherwise, are generally prohibited. 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. Memoranda must 
contain

[[Page 19610]]

a summary of the substance of the ex parte presentation and not merely 
a listing of the subjects discussed. More than a one or two sentence 
description of the views and arguments presented is generally required. 
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 section 1.1206(b) 
of the rules. In proceedings governed by section 1.49(f) of the rules 
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.
---------------------------------------------------------------------------

    \200\ See 47 CFR 1.1206 (Permit-but-disclose proceedings); see 
also id. Sec. Sec.  1.1200 et seq.
---------------------------------------------------------------------------

D. Filing Requirements

    57. Pursuant to sections 1.415 and 1.419 of the Commission's 
rules,\201\ interested parties may file comments and reply comments on 
or before the dates indicated on the first page of this document. 
Comments may be filed using the Commission's Electronic Comment Filing 
System (ECFS).\202\
---------------------------------------------------------------------------

    \201\ See 47 CFR 1.415, 1419.
    \202\ See Electronic Filing of Documents in Rulemaking 
Proceedings, GC Docket No. 97-113, Report and Order, 63 FR 24121, 
May 1, 1998.
---------------------------------------------------------------------------

    [ssquf] Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/.
    [ssquf] 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.
    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.
    [ssquf] All hand-delivered or messenger-delivered paper filings for 
the Commission's Secretary must be delivered to FCC Headquarters at 445 
12th St. 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.
    [ssquf] 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.
    [ssquf] U.S. Postal Service first-class, Express, and Priority mail 
must be addressed to 445 12th Street SW., Washington DC 20554.
    58. 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).
    59. Availability of Documents. Comments and reply comments will be 
publically available online via ECFS.\203\ These documents will also be 
available for public inspection during regular business hours in the 
FCC Reference Information Center, which is located in Room CY-A257 at 
FCC Headquarters, 445 12th Street SW., Washington, DC 20554. The 
Reference Information Center is open to the public Monday through 
Thursday from 8:00 a.m. to 4:30 p.m. and Friday from 8:00 a.m. to 11:30 
a.m.
---------------------------------------------------------------------------

    \203\ Documents will generally be available electronically in 
ASCII, Microsoft Word, and/or Adobe Acrobat.
---------------------------------------------------------------------------

    60. For additional information, contact Evan Baranoff, 
[email protected], of the Media Bureau, Policy Division, (202) 418-
7142. Direct press inquiries to Janice Wise at (202) 418-8165.

V. Ordering Clauses

    61. Accordingly, it is ordered that, pursuant to section 102 of the 
STELA Reauthorization Act of 2014 (STELAR), Public Law 113-200, 128 
Stat. 2059 (2014), and sections 1, 4(i), 303(r), 338 and 614 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 303(r), 
338 and 534, this Notice of Proposed Rulemaking is adopted and notice 
is hereby given of the proposals and tentative conclusions described in 
this Notice of Proposed Rulemaking.
    62. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, SHALL SEND a 
copy of this Notice of Proposed Rulemaking, including the Initial 
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the Small Business Administration.

List of Subjects in 47 CFR Part 76

    Cable television, Satellite television, Broadcast television.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Proposed Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR part 76 as follows:

PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE

0
1. The authority citation for Part 76 continues to read as follows:

    Authority:  47 U.S.C. 151, 152, 153, 154, 301, 302, 302a, 303, 
303a, 307, 308, 309, 312, 315, 317, 325, 338, 339, 340, 341, 503, 
521, 522, 531, 532, 534, 535, 536, 537, 543, 544, 544a, 545, 548, 
549, 552, 554, 556, 558, 560, 561, 571, 572, 573.

0
2. Section 76.7 is amended by revising paragraph (a)(3) to read as 
follows:


Sec.  76.7  General special relief, waiver, enforcement, complaint, 
show cause, forfeiture, and declaratory ruling procedures.

    (a) * * *
    (3) Certificate of service. Petitions and Complaints shall be 
accompanied by a certificate of service on any cable television system 
operator, multichannel video programming distributor, franchising 
authority, station licensee, permittee, or applicant, or other 
interested person who is likely to be directly affected if the relief 
requested is granted.
* * * * *
    3. Section 76.59 is amended by revising paragraphs (a), (b)(1), 
(b)(2), (b)(5), (b)(6), and (d) and by adding new paragraphs (e) and 
(f) to read as follows:


Sec.  76.59  Modification of television markets.

    (a) The Commission, following a written request from a broadcast 
station, cable system or satellite carrier, may deem that the 
television market, as defined either by Sec.  76.55(e) or Sec.  
76.66(e), of a particular commercial television broadcast station 
should include additional communities within its television market or 
exclude communities from such station's

[[Page 19611]]

television market. In this respect, communities may be considered part 
of more than one television market.
    (b) * * *
    (1) A map or maps illustrating the relevant community locations and 
geographic features, station transmitter sites, cable system headend or 
satellite carrier local receive facility locations, terrain features 
that would affect station reception, mileage between the community and 
the television station transmitter site, transportation routes and any 
other evidence contributing to the scope of the market.
    (2) Noise-limited service contour maps (for digital stations) or 
Grade B contour maps (for analog stations) delineating the station's 
technical service area and showing the location of the cable system 
headends or satellite carrier local receive facilities and communities 
in relation to the service areas.
* * * * *
    (5) Cable system or satellite carrier channel line-up cards or 
other exhibits establishing historic carriage, such as television guide 
listings.
    (6) Published audience data for the relevant station showing its 
average all day audience (i.e., the reported audience averaged over 
Sunday-Saturday, 7 a.m.-1 a.m., or an equivalent time period) for both 
multichannel video programming distributor (MVPD) and non-MVPD 
households or other specific audience indicia, such as station 
advertising and sales data or viewer contribution records.
* * * * *
    (d) A cable operator or satellite carrier shall not delete from 
carriage the signal of a commercial television station during the 
pendency of any proceeding pursuant to this section.
    (e) A market determination under this section shall not create 
additional carriage obligations for a satellite carrier if it is not 
technically and economically feasible for such carrier to accomplish 
such carriage by means of its satellites in operation at the time of 
the determination.
    (f) No modification of a commercial television broadcast station's 
local market pursuant to this section shall have any effect on the 
eligibility of households in the community affected by such 
modification to receive distant signals from a satellite carrier 
pursuant to 47 U.S.C. 339.
0
4. Section 76.66 is amended by adding a new paragraph (d)(6) and 
revising paragraph (e)(1) introductory text to read as follows:


Sec.  76.66  Satellite broadcast signal carriage.

* * * * *
    (d) * * *
    (6) Carriage after a market modification. Television broadcast 
stations that become eligible for mandatory carriage with respect to a 
satellite carrier (pursuant to Sec.  76.66) due to a change in the 
market definition (by operation of a market modification pursuant to 
Sec.  76.59) may, within 30 days of the effective date of the new 
definition, elect retransmission consent or mandatory carriage with 
respect to such carrier. A satellite carrier shall commence carriage 
within 90 days of receiving the carriage election from the television 
broadcast station. The election must be made in accordance with the 
requirements in paragraph (d)(1) of this section.
* * * * *
    (e) Market definitions. (1) A local market, in the case of both 
commercial and noncommercial television broadcast stations, is the 
designated market area in which a station is located, unless such 
market is amended pursuant to Sec.  76.59, and
* * * * *

Federal Communications Commission.
Marlene H. Dortch,
Secretary, Office of the Secretary, Office of the Managing Director.
[FR Doc. 2015-08435 Filed 4-10-15; 8:45 am]
 BILLING CODE 6712-01-P



                                                      19594                    Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules

                                                      final rule will be withdrawn and all                    of encryption, and be free of any defects              current cable market modification rule
                                                      public comments received will be                        or viruses.                                            to apply also to satellite carriage, while
                                                      addressed in a subsequent final rule                       Docket: All documents in the                        adding provisions to address the unique
                                                      based on this proposed rule. EPA will                   electronic docket are listed in the                    nature of satellite television service. The
                                                      not institute a second comment period.                  www.regulations.gov index. Although                    document also proposes to make
                                                      Any parties interested in commenting                    listed in the index, some information is               conforming changes to the cable market
                                                      on this action should do so at this time.               not publicly available, i.e., CBI or other             modification rules and considers
                                                      DATES: Comments must be received in                     information whose disclosure is                        whether to make any other changes to
                                                      writing by May 13, 2015.                                restricted by statute. Certain other                   the current market modification rules.
                                                      ADDRESSES: Submit your comments,
                                                                                                              material, such as copyrighted material,                DATES: Comments are due on or before
                                                      identified by Docket ID Number EPA–                     is not placed on the Internet and will be              May 13, 2015; reply comments are due
                                                      R03–OAR–2013–0593 by one of the                         publicly available only in hard copy                   on or before May 28, 2015. Written
                                                      following methods:                                      form. Publicly available docket                        comments on the Paperwork Reduction
                                                         A. www.regulations.gov. Follow the                   materials are available either                         Act proposed information collection
                                                      on-line instructions for submitting                     electronically in www.regulations.gov or               requirements must be submitted by the
                                                      comments.                                               in hard copy during normal business                    public, Office of Management and
                                                         B. Email: campbell.dave@epa.gov.                     hours at the Air Protection Division,                  Budget (OMB), and other interested
                                                         C. Mail: EPA–R03–OAR–2013–0593,                      U.S. Environmental Protection Agency,                  parties on or before June 12, 2015.
                                                      David Campbell, Associate Director,                     Region III, 1650 Arch Street,
                                                                                                              Philadelphia, Pennsylvania 19103.                      ADDRESSES: Interested parties may
                                                      Office of Permits and Air Toxics,                                                                              submit comments, identified by MB
                                                      Mailcode 3AP10, U.S. Environmental                      Copies of the State submittal are
                                                                                                              available at the Virginia Department of                Docket No. 15–71, by any of the
                                                      Protection Agency, Region III, 1650                                                                            following methods:
                                                      Arch Street, Philadelphia, Pennsylvania                 Environmental Quality, 629 East Main
                                                                                                              Street, Richmond, Virginia 23219.                         • Federal Communications
                                                      19103.
                                                                                                              FOR FURTHER INFORMATION CONTACT:                       Commission (FCC) Electronic Comment
                                                         D. Hand Delivery: At the previously-
                                                                                                              David Talley, (215) 814–2117, or by                    Filing System (ECFS) Web site: http://
                                                      listed EPA Region III address. Such
                                                                                                              email at talley.david@epa.gov.                         fjallfoss.fcc.gov/ecfs2/. Follow the
                                                      deliveries are only accepted during the
                                                                                                              SUPPLEMENTARY INFORMATION: For
                                                                                                                                                                     instructions for submitting comments.
                                                      Docket’s normal hours of operation, and
                                                      special arrangements should be made                     further information, please see the                       • Mail: U.S. Postal Service first-class,
                                                      for deliveries of boxed information.                    information provided in the direct final               Express, and Priority mail must be
                                                         Instructions: Direct your comments to                action, with the same title, that is                   addressed to the FCC Secretary, Office
                                                      Docket ID No. EPA–R03–OAR–2013–                         located in the ‘‘Rules and Regulations’’               of the Secretary, Federal
                                                      0593. EPA’s policy is that all comments                 section of this Federal Register                       Communications Commission, 445 12th
                                                      received will be included in the public                 publication.                                           Street SW., Washington, DC 20554.
                                                      docket without change, and may be                                                                              Commercial overnight mail (other than
                                                                                                               Dated: March 25, 2015.
                                                      made available online at                                                                                       U.S. Postal Service Express Mail and
                                                                                                              William C. Early,                                      Priority Mail) must be sent to 9300 East
                                                      www.regulations.gov, including any                      Acting Regional Administrator, Region III.
                                                      personal information provided, unless                                                                          Hampton Drive, Capitol Heights, MD
                                                      the comment includes information
                                                                                                              [FR Doc. 2015–08414 Filed 4–10–15; 8:45 am]            20743.
                                                      claimed to be Confidential Business                     BILLING CODE 6560–50–P                                    • Hand or Messenger Delivery: All
                                                      Information (CBI) or other information                                                                         hand-delivered or messenger-delivered
                                                      whose disclosure is restricted by statute.                                                                     paper filings for the FCC Secretary must
                                                      Do not submit information that you                      FEDERAL COMMUNICATIONS                                 be delivered to FCC Headquarters at 445
                                                      consider to be CBI or otherwise                         COMMISSION                                             12th Street SW., Room TW–A325,
                                                      protected through www.regulations.gov                                                                          Washington, DC 20554.
                                                                                                              47 CFR Part 76                                            • People with Disabilities: Contact
                                                      or email. The www.regulations.gov Web
                                                      site is an ‘‘anonymous access’’ system,                 [MB Docket No. 15–71; FCC 15–34]                       the FCC to request reasonable
                                                      which means EPA will not know your                                                                             accommodations (accessible format
                                                      identity or contact information unless                  Television Market Modification;                        documents, sign language interpreters,
                                                      you provide it in the body of your                      Statutory Implementation                               CART, etc.) by email: FCC504@fcc.gov
                                                      comment. If you send an email                           AGENCY:  Federal Communications                        or phone: 202–418–0530; or TTY: 202–
                                                      comment directly to EPA without going                   Commission.                                            418–0432.
                                                      through www.regulations.gov, your                       ACTION: Proposed rule.                                    For detailed instructions for
                                                      email address will be automatically                                                                            submitting comments and additional
                                                      captured and included as part of the                    SUMMARY:    In this document, the                      information on the rulemaking process,
                                                      comment that is placed in the public                    Commission proposes satellite                          see the section IV. ‘‘PROCEDURAL
                                                      docket and made available on the                        television market modification rules to                MATTERS’’ heading of the
                                                      Internet. If you submit an electronic                   implement section 102 of the Satellite                 SUPPLEMENTARY INFORMATION section of
                                                      comment, EPA recommends that you                        Television Extension and Localism Act                  this document. In addition to filing
wreier-aviles on DSK5TPTVN1PROD with PROPOSALS




                                                      include your name and other contact                     (STELA) Reauthorization Act of 2014                    comments with the Secretary, a copy of
                                                      information in the body of your                         (‘‘STELAR’’). The STELAR amended the                   any comments on the Paperwork
                                                      comment and with any disk or CD–ROM                     Communications Act and the Copyright                   Reduction Act information collection
                                                      you submit. If EPA cannot read your                     Act to give the Commission authority to                requirements contained herein should
                                                      comment due to technical difficulties                   modify a commercial television                         be submitted to the Federal
                                                      and cannot contact you for clarification,               broadcast station’s local television                   Communications Commission via email
                                                      EPA may not be able to consider your                    market for purposes of satellite carriage              to PRA@fcc.gov and to Nicholas A.
                                                      comment. Electronic files should avoid                  rights. In this document, the                          Fraser, Office of Management and
                                                      the use of special characters, any form                 Commission proposes to revise the                      Budget, via email to Nicholas_A._


                                                 VerDate Sep<11>2014   15:39 Apr 10, 2015   Jkt 235001   PO 00000   Frm 00028   Fmt 4702   Sfmt 4702   E:\FR\FM\13APP1.SGM   13APP1


                                                                                Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules                                                           19595

                                                      Fraser@omb.eop.gov or via fax at 202–                     Communications Act                                        In this NPRM, consistent with Congress’
                                                      395–5167.                                                 (‘‘Communications Act’’ or ‘‘Act’’) and                   intent that the Commission model the
                                                      FOR FURTHER INFORMATION CONTACT: For                      the Copyright Act to give the                             satellite market modification process on
                                                      additional information on this                            Commission authority to modify a                          the current cable market modification
                                                      proceeding, contact Evan Baranoff,                        commercial television broadcast                           process, we propose to implement
                                                      Evan.Baranoff@fcc.gov, of the Media                       station’s local television market for                     section 102 of the STELAR by revising
                                                      Bureau, Policy Division, (202) 418–                       purposes of satellite carriage rights.2                   the current cable market modification
                                                      2120. For additional information                          The Commission previously had such                        rule, section 76.59, to apply also to
                                                      concerning the Paperwork Reduction                        authority to modify markets only in the                   satellite carriage, while adding
                                                      Act information collection requirements                   cable carriage context.3 With section                     provisions to the rules to address the
                                                      contained in this document, send an                       102 of the STELAR, Congress provides                      unique nature of satellite television
                                                      email to PRA@fcc.gov or contact Cathy                     regulatory parity in this regard in order                 service.6 In addition to establishing
                                                      Williams at (202) 418–2918.                               to promote consumer access to in-state                    rules for satellite market modifications,
                                                      SUPPLEMENTARY INFORMATION: This is a                      and other relevant television                             section 102 of the STELAR directs us to
                                                      summary of the Commission’s Notice of                     programming.4 Congress’ intent through                    consider whether we should make
                                                      Proposed Rulemaking (NPRM), FCC 15–                       this provision of STELAR, and the
                                                                                                                                                                          changes to the current cable market
                                                      34, adopted and released on March 26,                     Commission’s actions in this NPRM,
                                                                                                                                                                          modification rules,7 and it also makes
                                                      2015. The full text of this document is                   seek to address satellite subscribers’
                                                                                                                                                                          certain conforming amendments to the
                                                      available electronically via the FCC’s                    inability to receive in-state
                                                                                                                programming in certain areas,                             cable market modification statutory
                                                      Electronic Comment Filing System                                                                                    provision.8 Accordingly, as part of our
                                                      (ECFS) Web site at http://                                sometimes called ‘‘orphan counties.’’ 5
                                                                                                                                                                          implementation of the STELAR, we
                                                      fjallfoss.fcc.gov/ecfs2/ or via the FCC’s                                                                           propose to make conforming changes to
                                                                                                                   2 STELAR secs. 102, 204, 128 Stat. at 2060–62,
                                                      Electronic Document Management                                                                                      the cable market modification rules and
                                                                                                                2067. STELAR sec. 102(a) amends section 338 of
                                                      System (EDOCS) Web site at http://                        the Act by adding a new paragraph (l). 47 U.S.C.          consider whether we should make any
                                                      fjallfoss.fcc.gov/edocs_public/.                          338(l) (titled ‘‘Market Determinations’’). STELAR
                                                                                                                                                                          other changes to the current cable
                                                      (Documents will be available                              sec. 102(b) also makes conforming amendments to
                                                                                                                the cable market modification provision at 47             market modification rules. The STELAR
                                                      electronically in ASCII, Microsoft Word,                  U.S.C. 534(h)(1)(C). STELAR sec. 204 amends the           requires the Commission to issue final
                                                      and/or Adobe Acrobat.) This document                      statutory copyright license for satellite carriage of     rules in this proceeding on or before
                                                      is also available for public inspection                   ‘‘local’’ stations in 17 U.S.C. 122 to cover market
                                                                                                                modifications in accordance with 47 U.S.C. 338(l).        September 4, 2015.9
                                                      and copying during regular business
                                                                                                                17 U.S.C. 122(j)(2)(E). We note that, like the cable
                                                      hours in the FCC Reference Information                    provision, the STELAR provision pertains only to          II. Background
                                                      Center, Federal Communications                            ‘‘commercial’’ stations, thus excluding
                                                      Commission, 445 12th Street SW., CY–                      noncommercial stations from seeking market                   2. The STELAR, enacted December 4,
                                                      A257, Washington, DC 20554. The                           modifications. See 47 U.S.C. 338(l)(1).                   2014, is the latest in a series of statutes
                                                                                                                   3 See 47 U.S.C. 534(h)(1)(C). This section was
                                                      complete text may be purchased from                                                                                 that have amended the Communications
                                                                                                                added to the Act by the Cable Television Consumer
                                                      the Commission’s copy contractor, 445                     Protection and Competition Act of 1992, Public Law        Act and Copyright Act to set the
                                                      12th Street SW., Room CY–B402,                            102–385, 106 Stat. 1460 (1992), as part of the cable      parameters for the satellite carriage of
                                                      Washington, DC 20554. Alternative                         must-carry/retransmission consent regime for              television broadcast stations. The 1988
                                                                                                                carriage of local television stations. See also 47 CFR
                                                      formats are available for people with                     76.59.
                                                                                                                                                                          Satellite Home Viewer Act (SHVA) first
                                                      disabilities (Braille, large print,                          4 See title of STELAR sec. 102, ‘‘Modification of      established a ‘‘distant’’ statutory
                                                      electronic files, audio format), by                       Television Markets to Further Consumer Access to          copyright license to enable satellite
                                                      sending an email to fcc504@fcc.gov or                     Relevant Television Programming.’’ See also 47            carriers to offer subscribers who could
                                                                                                                U.S.C. 534(h)(1)(C)(ii)(III) (directing the
                                                      calling the Commission’s Consumer and                     Commission to consider whether a market
                                                                                                                                                                          not receive the over-the-air signal of a
                                                      Governmental Affairs Bureau at (202)                      modification would ‘‘promote consumers’ access to         broadcast station access to broadcast
                                                      418–0530 (voice), (202) 418–0432                          television broadcast station signals that originate in
                                                      (TTY).                                                    their State of residence’’). There was no final Report    Access Local Television Act, S. 3894, 111th Cong.
                                                                                                                issued to accompany the final version of the              (2010); Local Television Freedom Act, H.R. 3216,
                                                      Document Summary                                          STELAR bill (H. R. 5728, 113th Cong.) as it was
                                                                                                                                                                          111th Cong. (2009).
                                                                                                                enacted. Because section 102 of the STELAR was               6 See 47 CFR 76.59. As discussed herein, we
                                                      I. Introduction                                           added from the Senate predecessor bill (S. 2799, the
                                                                                                                Satellite Television Access and Viewer Rights Act         propose to revise section 76.59 of our rules to apply
                                                         1. In this Notice of Proposed                          (STAVRA)), we therefore look to the Senate Report         to both cable systems and satellite carriers. We note
                                                      Rulemaking (NPRM), we propose                             No. 113–322 (dated December 12, 2014)                     Congress’ intent that the process established by the
                                                                                                                                                                          Commission under the section 102 of the STELAR
                                                      satellite television ‘‘market                             accompanying this predecessor bill for the relevant
                                                                                                                                                                          be ‘‘modeled’’ on the current cable market
                                                      modification’’ rules to implement                         legislative history for this provision. See Report
                                                                                                                from the Senate Committee on Commerce, Science,           modification process. See Senate Commerce
                                                      section 102 of the Satellite Television                   and Transportation accompanying S. 2799, 113th            Committee Report at 10. However, the STELAR
                                                      Extension and Localism Act (STELA)                        Cong., S. Rep. No. 113–322 (2014) (‘‘Senate               recognizes the inherent difference between cable
                                                                                                                                                                          and satellite television service with provisions
                                                      Reauthorization Act of 2014 (‘‘STELA                      Commerce Committee Report’’).
                                                                                                                                                                          specific to satellite. See 47 U.S.C. 338(l)(3)(A), (5).
                                                                                                                   5 We note that the Commission has sometimes
                                                      Reauthorization Act’’ or ‘‘STELAR’’).1                                                                                 7 STELAR sec. 102(d) directs the Commission to
                                                                                                                referred to the situation in which a county in one
                                                      The STELAR amended the                                    state is assigned to a neighboring state’s local          consider as part of this rulemaking whether the
                                                                                                                television market and, therefore, satellite               ‘‘procedures for the filing and consideration of a
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                                                         1 The STELA Reauthorization Act of 2014                subscribers residing in such county cannot receive        written request under sections 338(l) and
                                                      (STELAR), sec. 102, Public Law 113–200, 128 Stat.         some or any broadcast stations that originate in-         614(h)(1)(C) of the Communications Act of 1934 (47
                                                      2059, 2060–62 (2014) (codified at 47 U.S.C. 338(l)).      state as the ‘‘orphan county’’ problem. The inability     U.S.C. 338(l); 534(h)(1)(C)) fully effectuate the
                                                      The STELAR was enacted on December 4, 2014 (H.            of satellite subscribers located in ‘‘orphan counties’’   purposes of the amendments made by this section,
                                                      R. 5728, 113th Cong.). This proceeding implements         to access in-state programming has been the subject       and update what it considers to be a community for
                                                      STELAR sec. 102 (titled ‘‘Modification of television      of some congressional interest. See, e.g., Orphan         purposes of a modification of a market under
                                                      markets to further consumer access to relevant            County Telecommunications Rights Act, H.R. 4635,          section 338(l) or 614(h)(1)(C) of the
                                                      television programming’’), 128 Stat. at 2060–62, and      113th Cong. (2014); Colorado News, Emergency,             Communications Act of 1934.’’
                                                                                                                                                                             8 See STELAR sec. 102(b) (amending 47 U.S.C.
                                                      the related statutory copyright license provisions in     Weather, and Sports Act, S. 2375, 113th Cong.
                                                      STELAR sec. 204 (titled ‘‘Market determinations’’),       (2014); Four Corners Television Access Act, H.R.          534(h)(1)(C)(ii)).
                                                      128 Stat. at 2067 (codified at 17 U.S.C. 122(j)(2)(E)).   4469, 112th Cong. (2012); Letting Our Communities            9 STELAR sec. 102(d)(1).




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                                                      19596                    Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules

                                                      programming via satellite.10 The 1999                   station for reception by subscribers.16                   4. Section 102 of the STELAR, which
                                                      Satellite Home Viewer Improvement Act                   Generally, a television station’s ‘‘local              adds section 338(l) of the Act, creates a
                                                      (SHVIA) established a ‘‘local’’ statutory               market’’ is defined by the Designated                  satellite market modification regime
                                                      copyright license and expanded satellite                Market Area (DMA) in which it is                       very similar to that in place for cable,
                                                      carriers’ ability to offer broadcast                    located, as determined by the Nielsen                  while adding provisions to address the
                                                      television signals directly to subscribers              Company (Nielsen).17 DMAs describe                     unique nature of satellite television
                                                      by permitting carriers to offer ‘‘local’’               each television market in terms of a                   service.22 Market modification, which
                                                      broadcast signals.11 The 2004 Satellite                 unique geographic area (group of                       has been available in the cable carriage
                                                      Home Viewer Extension and                               counties) and are defined by Nielsen                   context since 1992, will allow the
                                                      Reauthorization Act (SHVERA)                            based on measured viewing patterns.18                  Commission to modify the local
                                                      reauthorized the distant signal statutory               The United States is divided into 210                  television market of a commercial
                                                      copyright license until December 31,                    DMA markets. (DMAs frequently cross                    television broadcast station to enable
                                                      2009 and expanded that license to allow                 state lines and thus may include
                                                                                                                                                                     those broadcasters and satellite carriers
                                                      satellite carriers to carry ‘‘significantly             counties from multiple states.) Unlike
                                                                                                                                                                     to better serve the interests of local
                                                      viewed’’ stations.12 The 2010 Satellite                 cable operators, satellite carriers are not
                                                                                                                                                                     communities.23 Market modification
                                                      Television Extension and Localism Act                   required to carry local broadcast
                                                                                                              television stations. However, if a                     provides a means to avoid rigid
                                                      (STELA) extended the distant signal                                                                            adherence to DMA designations and to
                                                      statutory copyright license through                     satellite carrier chooses to carry a local
                                                                                                              station in a particular DMA in reliance                promote consumer access to in-state and
                                                      December 31, 2014, moved the
                                                                                                              on the statutory copyright license, it                 other relevant television
                                                      significantly viewed signal copyright
                                                                                                              generally must carry any qualified local               programming.24 To better reflect market
                                                      provisions to the local statutory
                                                                                                              station in the same DMA that makes a                   realities and effectuate the purposes of
                                                      copyright license (which does not
                                                                                                              timely election for retransmission                     this provision, section 338(l), like the
                                                      expire), and revised the ‘‘significantly
                                                      viewed’’ provisions to facilitate satellite             consent or mandatory carriage.19 This is               corresponding cable provision in
                                                      carrier use of that option.13 With the                  commonly referred to as the ‘‘carry one,               section 614(h)(1)(C), permits the
                                                      STELAR, Congress extends the distant                    carry all’’ requirement. If a broadcaster              Commission to add communities to or
                                                      signal statutory copyright license for                  elects retransmission consent, the                     delete communities from a station’s
                                                      another five years, through December                    satellite carrier and broadcaster                      local television market following a
                                                      31, 2019 and, among other things,                       negotiate the terms of a retransmission                written request.25 Furthermore, as in the
                                                      authorizes market modification in the                   consent agreement. With respect to                     cable carriage context, the Commission
                                                      satellite carriage context and revises the              those stations electing mandatory                      may determine that particular
                                                      market modification provisions for cable                carriage, satellite carriers are generally             communities are part of more than one
                                                      to promote parity for satellite and cable               not required to carry a station if the                 television market.26 Similar to the cable
                                                      subscribers and competition between                     station’s programming ‘‘substantially                  carriage context, when the Commission
                                                      satellite and cable operators.14                        duplicates’’ that of another station                   modifies a station’s market to add a
                                                                                                              carried by the satellite carrier in the                community for purposes of carriage
                                                         3. Section 338 of the Act authorizes                 DMA, and satellite carriers are not
                                                      satellite carriage of local broadcast                                                                          rights, the station is considered local
                                                                                                              required to carry more than one network                and is covered by the local statutory
                                                      stations into their local markets, which                affiliate station in a DMA (even if the
                                                      is called ‘‘local-into-local’’ service.15                                                                      copyright license and may assert
                                                                                                              affiliates do not substantially duplicate              mandatory carriage (or retransmission
                                                      Specifically, a satellite carrier provides              their programming), unless the stations
                                                      ‘‘local-into-local’’ service when it                                                                           consent) by the applicable satellite
                                                                                                              are licensed to communities in different
                                                      retransmits a local television signal back              states.20 Satellite carriers are also not                22 See   47 U.S.C. 338(l), 534(h)(1)(C).
                                                      into the local market of that television                required to carry an otherwise qualified                 23 See   In-State Broadcast Programming: Report to
                                                                                                              station if the station fails to provide a              Congress Pursuant to Section 304 of the Satellite
                                                         10 The Satellite Home Viewer Act of 1988
                                                                                                              good quality signal to the satellite                   Television Extension and Localism Act of 2010, MB
                                                      (SHVA), Public Law 100–667, 102 Stat. 3935, Title                                                              Docket No. 10–238, Report, DA 11–1454, at para.
                                                      II (1988); 17 U.S.C. 119 (distant statutory copyright   carrier’s local receive facility.21
                                                                                                                                                                     55–59 (MB rel. Aug. 29, 2011) (‘‘In-State
                                                      license).                                                                                                      Programming Report’’) (stating that ‘‘market
                                                         11 The Satellite Home Viewer Improvement Act of        16 47  CFR 76.66(a)(6).                              modifications could potentially address special
                                                      1999 (SHVIA), Public Law 106–113, 113 Stat. 1501          17 See  17 U.S.C. 122(j)(2); 47 CFR 76.66(e)         situations in underserved areas and facilitate greater
                                                      (1999); 17 U.S.C. 122 (local statutory copyright        (defining a television broadcast station’s local       access to local information’’). See also Broadcast
                                                      license).                                               market for purposes of satellite carriage as the DMA   Localism, MB Docket No. 04–233, Report on
                                                         12 The Satellite Home Viewer Extension and           in which the station is located). We note that a       Broadcast Localism and Notice of Proposed
                                                      Reauthorization Act of 2004 (SHVERA), Public Law        commercial television broadcast station’s local        Rulemaking, FCC 07–218, 73 FR 8255 at paras. 49–
                                                      108–447, 118 Stat 2809 (2004).                          market for purposes of cable carriage is also          50, Feb. 13, 2008 (‘‘Broadcast Localism Report’’).
                                                         13 The Satellite Television Extension and            generally defined as the DMA in which the station         24 Broadcast Localism Report at para. 50. The

                                                      Localism Act of 2010 (STELA), Public Law 111–           is located. See 47 U.S.C. 534(h)(1)(C); 47 CFR         Commission has observed that, in some cases,
                                                      175, 124 Stat. 1218, 1245 (2010). See also              76.55(e)(2).                                           general reliance on DMAs to define a station’s
                                                                                                                 18 The Nielsen Company delineates television
                                                      Implementation of Section 203 of the Satellite                                                                 market may not provide viewers with the most local
                                                      Television Extension and Localism Act of 2010           markets by assigning each U.S. county (except for      programming. Certain DMAs cross state borders
                                                      (STELA), MB Docket No. 10–148, Report and Order         certain counties in Alaska) to one market based on     and, in such cases, current Commission rules
                                                      and Order on Reconsideration, FCC 10–193, 75 FR         measured viewing patterns both off-air and by          sometimes require carriage of the broadcast signal
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                                                      72968, Nov. 29, 2010 (STELA Significantly Viewed        MVPD distribution.                                     of an out-of-state station rather than that of an in-
                                                      Report and Order).                                         19 See 17 U.S.C. 122; 47 U.S.C. 338(a)(1); 47 CFR   state station. The Commission has observed that
                                                         14 In section 102 of the STELAR, Congress            76.66(b)(1).                                           such cases may weaken localism, since viewers are
                                                      intended to ‘‘create a television market modification      20 See 47 U.S.C. 338(c)(1); 47 CFR 76.66(h). See    often more likely to receive information of local
                                                      process for satellite carriers similar to the one       also Implementation of the Satellite Home Viewer       interest and relevance—particularly local weather
                                                      already used for cable operators.’’ Senate Commerce     Improvement Act of 1999: Broadcast Signal              and other emergency information and local news
                                                      Committee Report at 6. The STELAR also makes a          Carriage Issues, Retransmission Consent Issues, CS     and electoral and public affairs—from a station
                                                      variety of reforms to the video programming             Docket Nos. 00–96 and 99–363, Report and Order,        located in the state in which they live. Id. at paras.
                                                      distribution laws and regulations that are not          FCC 00–417, 66 FR 7410, at para. 80, Jan. 23, 2001     49–50.
                                                      relevant here to our implementation of this section.    (DBS Broadcast Carriage Report and Order).                25 47 U.S.C. 338(l)(1), 534(h)(1)(C).
                                                         15 See 47 U.S.C. 338(a)(1).                             21 See 47 U.S.C. 338(b)(1); 47 CFR 76.66(g)(1).        26 Id. 338(l)(2)(A).




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                                                                                Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules                                                         19597

                                                      carrier in the local market.27 Likewise,                 section 614(h)(1)(C)(ii) of the Act. To the               current cable market modification
                                                      if the Commission modifies a station’s                   extent the factors differ from the                        rule—to apply to the satellite context.36
                                                      market to delete a community, the                        previous factors applicable to cable,                     We also propose to amend section 76.59
                                                      station is considered ‘‘distant’’ and loses              section 102 of the STELAR makes                           to reflect the STELAR provisions that
                                                      its right to assert mandatory carriage (or               conforming changes to the cable                           uniquely apply to satellite carriers. The
                                                      retransmission consent) by the                           factors.30 These include adding a fifth                   STELAR also directs us to update our
                                                      applicable satellite carrier in the local                factor (inserted as factor number three)                  definition of a ‘‘community’’ for
                                                      market. We note that, in the cable                       to section 614(h)(1)(C)(ii) to ‘‘promote                  purposes of market modification and,
                                                      carriage context, market modifications                   consumers’ access to television                           below, we seek comment in this regard.
                                                      pertain to specific stations in specific                 broadcast station signals that originate                  We seek comment on the specific rule
                                                      cable communities and apply to the                       in their State of residence.’’ 31 Thus,                   proposals and tentative conclusions
                                                      specific cable system named in the                       STELAR creates parallel factors for                       contained herein. We also seek
                                                      petition.28                                              satellite and cable.32                                    comment on any alternative approaches.
                                                         5. Section 338(l) states that, in                        6. The STELAR, however, provides a
                                                      deciding requests for market                             unique exception applicable only in the                   A. Requesting Market Modification
                                                      modifications, the Commission must                       satellite context, providing that a market
                                                                                                                                                                            8. Consistent with the current cable
                                                      afford particular attention to the value                 modification shall not create additional
                                                                                                                                                                         requirement in section 76.59, we
                                                      of localism by taking into account the                   carriage obligations for a satellite carrier
                                                                                                                                                                         propose to allow either the affected
                                                      following five factors:                                  if it is not technically and economically
                                                         • Whether the station, or other                                                                                 commercial broadcast station or satellite
                                                                                                               feasible for such carrier to accomplish
                                                      stations located in the same area—have                                                                             carrier to file a satellite market
                                                                                                               such carriage by means of its satellites
                                                      been historically carried on the cable                                                                             modification request.37 Section 338(l)(1)
                                                                                                               in operation at the time of the
                                                      system or systems within such                            determination.33                                          of the Act contains very similar
                                                      community; and have been historically                       Also unique to satellite, the STELAR                   language to the corresponding cable
                                                      carried on the satellite carrier or carriers             provides that a market modification will                  statutory provision in section
                                                      serving such community;                                  not have ‘‘any effect on the eligibility of               614(h)(1)(C)(i) of the Act.38 Like the
                                                         • whether the television station                      households in the community affected                      cable provision, section 338(l)(1)
                                                      provides coverage or other local service                 by such modification to receive distant                   permits the Commission to modify a
                                                      to such community;                                       signals pursuant to section 339 [of the                   local television market ‘‘following a
                                                         • whether modifying the local market                  Act].’’ 34 Like the cable provision,                      written request,’’ but does not specify
                                                      of the television station would promote                  section 338(l) gives the Commission 120                   the appropriate party to make such
                                                      consumers’ access to television                          days to act on a request for market                       requests.39 Section 102(d)(2) of the
                                                      broadcast station signals that originate                 modification and does not allow a                         STELAR further directs the Commission
                                                      in their State of residence;                             carrier to delete from carriage the signal                to ensure in both the cable and satellite
                                                         • whether any other television station                of a commercial television station                        contexts that ‘‘procedures for the filing
                                                      that is eligible to be carried by a satellite            during the pendency of any market                         and consideration of a written request
                                                      carrier in such community in fulfillment                 modification proceeding.35                                . . . fully effectuate the purposes of the
                                                      of the requirements of this section                                                                                amendments made by this section.’’ 40
                                                      provides news coverage of issues of                      III. Discussion                                           The Commission found in the cable
                                                      concern to such community or provides                       7. Consistent with the STELAR’s goal                   context that the involved broadcaster
                                                      carriage or coverage of sporting and                     of regulatory parity, we propose to                       and cable operator are the only
                                                      other events of interest to the                          amend section 76.59 of our rules—the                      appropriate parties to file market
                                                      community; and
                                                         • evidence of viewing patterns in                       30 See 47 U.S.C. 534(h)(1)(C)(ii), as amended by          36 See  47 CFR 76.59.
                                                      households that subscribe and do not                     STELAR sec. 102(b).                                         37 See  47 CFR 76.59(a) (allowing either a
                                                                                                                 31 See id. 534(h)(1)(C)(ii)(III) (‘‘whether modifying
                                                      subscribe to the services offered by                                                                               broadcast station or a cable system to file market
                                                                                                               the market of the television station would promote        modification requests).
                                                      multichannel video programming                           consumers’ access to television broadcast station            38 47 U.S.C. 338(l)(1) (‘‘Following a written
                                                      distributors within the areas served by                  signals that originate in their State of residence’’).    request, the Commission may, with respect to a
                                                      such multichannel video programming                        32 Upon completion of this rulemaking
                                                                                                                                                                         particular commercial television broadcast station,
                                                      distributors in such community.29                        proceeding, we will implement section 102(c) of the       include additional communities within its local
                                                                                                               STELAR by creating a consumer guide that will             market or exclude communities from such station’s
                                                      These statutory factors largely mirror                   explain the market modification rules and                 local market to better effectuate the purposes of this
                                                      those originally set forth for cable in                  procedures as revised and adopted in this                 section.) See 47 U.S.C. 534(h)(1)(C)(i) (‘‘For
                                                                                                               proceeding, and by posting such guide on the              purposes of this section, a broadcasting station’s
                                                         27 Section 204 of the STELAR amends the local         Commission’s Web site. Section 102(c) requires the        market shall be determined by the Commission by
                                                      statutory copyright license in 17 U.S.C. 122 so that     Commission to ‘‘make information available to             regulation or order using, where available,
                                                      when the Commission modifies a station’s market          consumers on its Web site that explains the market        commercial publications which delineate television
                                                      for purposes of satellite carriage rights, the station   modification process.’’ STELAR 102(c); 47 U.S.C.A.        markets based on viewing patterns, except that,
                                                      is considered local and is covered by the local          338 Note. Such information must include: ‘‘(1) who        following a written request, the Commission may,
                                                      statutory copyright license. See 17 U.S.C.               may petition to include additional communities            with respect to a particular television broadcast
                                                      122(j)(2)(E); 47 U.S.C. 338. See also 17 U.S.C.          within, or exclude communities from, a—(A) local          station, include additional communities within its
                                                      111(f)(4) (defining ‘‘local service area of a primary    market (as defined in section 122(j) of title 17,         television market or exclude communities from
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                                                      transmitter’’ for cable carriage copyright purposes);    United States Code); or (B) television market (as         such station’s television market to better effectuate
                                                      47 U.S.C. 534(h)(1)(C).                                  determined under section 614(h)(1)(C) of the              the purposes of this section . . . .’’).
                                                         28 See Implementation of the Cable Television         Communications Act of 1934 (47 U.S.C.                        39 47 U.S.C. 338(l)(1).

                                                      Consumer Protection and Competition Act of 1992,         534(h)(1)(C))); and (2) the factors that the                 40 STELAR sec. 102(d)(2) directs the Commission
                                                      Broadcast Signal Carriage Issues, MM Docket No.          Commission takes into account when responding to          to consider as part of this rulemaking whether the
                                                      92–259, Report and Order, FCC 93–144, 58 FR              a petition described in paragraph (1).’’ See 47 U.S.C.    ‘‘procedures for the filing and consideration of a
                                                      17350, at para. 47, April 2, 1993 (Must Carry Order)     338(l)(2)(B)(i) through (v); 47 U.S.C.                    written request under sections 338(l) and
                                                      (stating that ‘‘the statute is intended to permit the    534(h)(1)(C)(ii)(I) through (V).                          614(h)(1)(C) of the Communications Act of 1934 (47
                                                                                                                 33 47 U.S.C. 338(l)(3)(A).
                                                      modification of a station’s market to reflect its                                                                  U.S.C. 338(l); 534(h)(1)(C)) fully effectuate the
                                                      individual situation’’); 47 CFR 76.59.                     34 47 U.S.C. 338(l)(5).
                                                                                                                                                                         purposes of the amendments made by this section.’’
                                                         29 47 U.S.C. 338(l)(2)(B)(i) through (v).               35 47 U.S.C. 338(l)(3)(B), (4).                         See 47 U.S.C.A. 338 Note.



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                                                      19598                     Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules

                                                      modification requests.41 The                            and how else satellite subscribers or                    only a satellite carriage market
                                                      Commission reasoned that ‘‘the fact that                their representatives can meaningfully                   modification to serve the relevant
                                                      Congress made must carry an elective                    advocate for the receipt of in-state                     franchising authority. We note that
                                                      choice for broadcasters diminishes the                  programming via satellite.                               while the Commission has found that a
                                                      argument that third parties have                          10. Consistent with the current cable                  franchising authority represents the
                                                      standing to demand carriage of a                        requirement in section 76.59, we                         interests of subscribers and other local
                                                      broadcast station on a cable system. A                  propose to require broadcasters and                      viewers in the cable context,48
                                                      subscriber’s ability to receive the                     satellite carriers to file market                        franchising authorities currently have
                                                      benefits provided from must carry is                    modification requests for satellite                      no role in satellite regulation.
                                                      predicated upon a station’s election to                 carriage purposes in accordance with
                                                                                                              the procedures for filing Special Relief                 B. Statutory Factors and Evidentiary
                                                      exercise its rights under the statute. No                                                                        Requirements
                                                      statute or Commission rule requires a                   petitions in section 76.7 of the rules.45
                                                      broadcaster to allow its signal to be                   Consistent with section 76.7, we                            11. As discussed above, the purpose
                                                      carried on a local cable system because                 propose that a petitioner must serve a                   of market modifications is to permit
                                                      another party wishes to view it. Instead,               copy of its market modification request                  adjustments to a particular station’s
                                                      broadcasters are given a choice whether                 on any MVPD operator, station licensee,                  local television market (which is
                                                      to demand carriage under must carry, to                 permittee, or applicant, or other                        initially defined by the DMA in which
                                                      negotiate carriage under the                            interested party who is likely to be                     it is located) to better reflect localism
                                                      retransmission consent provisions, or                   directly affected if the relief requested is             and ensure that satellite subscribers
                                                      not to be carried on a particular cable                 granted, and we propose to amend                         receive the broadcast stations most
                                                      system at all.’’ 42 Thus, only these                    section 76.7(a)(3), accordingly, to                      relevant to them.49 To this end, the
                                                      entities have carriage rights or                        reference ‘‘any MVPD operator.’’ 46 We                   STELAR requires the Commission to
                                                      obligations at stake, giving them a                     seek comment on our proposal. Because,                   consider five statutory factors when
                                                      legitimate basis for filing such requests.              as noted above, some local governments                   evaluating market modification
                                                        9. Without the active participation of                have expressed interest in orphan                        requests. As noted, the STELAR added
                                                      the affected broadcaster, modifying the                 county issues, we also seek comment on                   a fifth factor (inserted as the new third
                                                      market of a particular television station,              whether franchising authorities 47 or                    statutory factor) for both cable and
                                                      in itself, would not result in consumer                 certain local government entities (such                  satellite to ‘‘promote consumers’ access
                                                      access to that station.43 This reasoning                as cities, counties or towns) that may                   to television broadcast station signals
                                                                                                              represent subscribers and local viewers                  that originate in their State of
                                                      appears to apply to the satellite context
                                                                                                              in affected communities should be                        residence.’’ 50 The legislative history
                                                      as well. Thus, a market modification
                                                                                                              considered ‘‘interested parties’’ and                    indicates Congress’ concern that ‘‘many
                                                      would serve little purpose without the
                                                                                                              served with market modification                          consumers, particularly those who
                                                      cooperation of the involved broadcaster
                                                                                                              requests. We seek specific comment on                    reside in DMAs that cross State lines or
                                                      or MVPD having carriage rights or
                                                                                                              whether to require petitioners seeking                   cover vast geographic distances,’’ may
                                                      obligations. We seek comment on our
                                                                                                                                                                       ‘‘lack access to local television
                                                      proposal and these tentative                               45 47 CFR 76.59(b). A fee is generally required for   programming that is relevant to their
                                                      conclusions. We also seek comment on                    the filing of Special Relief petitions; 47 CFR 1.1104,   everyday lives.’’ 51 The legislative
                                                      any alternative approaches. We note, for                1.1117, 76.7. We remind filers that Special Relief
                                                                                                                                                                       history further indicates Congress’
                                                      example, that some local governments                    petitions must be submitted electronically using the
                                                                                                                                                                       intent that the Commission ‘‘consider
                                                      have previously sought the ability to                   Commission’s Electronic Comment Filing System
                                                                                                              (ECFS). See Media Bureau Announces                       the plight of these consumers when
                                                      petition for market modifications on                    Commencement of Mandatory Electronic Filing for          judging the merits of a [market
                                                      behalf of their citizens.44 We recognize                Cable Special Relief Petitions and Cable Show
                                                                                                                                                                       modification] petition . . . , even if
                                                      that seeking and providing carriage is a                Cause Petitions Via the Electronic Comment Filing
                                                                                                              System, Public Notice, DA 11–2095 (MB rel. Dec.          granting such modification would pose
                                                      business decision by the involved                       30, 2011). Petitions must be initially filed in MB       an economic challenge to various local
                                                      broadcaster and satellite carrier and,                  Docket No. 12–1. Id.                                     television broadcast stations.’’ 52 We
                                                      therefore, we tentatively conclude to                      46 See 47 CFR 76.7(a)(3). While our rules
                                                                                                                                                                       tentatively conclude that this new third
                                                      limit the participation of local                        currently state that documents that are required to
                                                                                                              be served must be served in paper form unless the        statutory factor is intended to favor a
                                                      governments and individuals to filing                   parties agree to another method of service, 47 CFR       market modification to add a
                                                      comments in support of, or in                           1.47(d), we take notice of the Commission’s broader      community if doing so would increase
                                                      opposition to, particular market                        efforts to modernize our procedures where possible.
                                                                                                                                                                       consumer access to in-state
                                                      modification requests, for the reasons                  See, e.g., Amendment of Certain of the
                                                                                                              Commission’s Part 1 Rules of Practice and                programming. We also tentatively
                                                      discussed in this and the preceding                     Procedure and Part 0 Rules of Commission                 conclude, however, that this new third
                                                      paragraph. We, nevertheless, seek                       Organization, GC Docket No. 10–44, Order, FCC 14–        statutory factor is not intended to bar a
                                                      comment on this tentative conclusion                    183, 80 FR 1586, para. 26, Jan. 13, 2015 (authorizing
                                                                                                                                                                       market modification simply because it
                                                                                                              Commission staff to accept secs. 214 and 215 filings
                                                         41 See John Wiegand v. Post Newsweek Pacifica
                                                                                                              in electronic form); Amendment of Certain of the         would not result in increased consumer
                                                      Cable, Inc., CSR 4179–M, Memorandum Opinion
                                                                                                              Commission’s Part 1 Rules of Practice and                access to in-state programming. In such
                                                                                                              Procedure Relating to the Filing of Formal               cases, we believe this new third
                                                      and Order, FCC 01–239 (rel. Aug. 24, 2001)              Complaints Under Section 208 of the
                                                      (‘‘Wiegand v. Post Newsweek’’) (limiting standing in    Communications Act and Pole Attachment
                                                      the must carry and market modification contexts to      Complaints Under Section 224 of the
                                                                                                                                                                          48 See KMSO–TV, Inc., CSR–883, Memorandum
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                                                      the affected broadcaster or cable operator); Must       Communications Act, GC Docket No. 10–44, Order,          Opinion and Order, 58 FCC2d 414, 415, para. 3
                                                      Carry Order, at para. 46.                               FCC 14–179, 79 FR 73844, para. 2, Dec. 12, 2014          (1976).
                                                         42 See Must Carry Order, at para. 46.                                                                            49 See 47 U.S.C. 338(l)(2)(B), 534(h)(1)(C)(ii)
                                                                                                              (mandating electronic filing of secs. 208 and 224
                                                         43 See Wiegand v. Post Newsweek, at para.
                                                                                                              complaints). Service of market modification              (requiring the Commission to ‘‘afford particular
                                                      11(‘‘[t]he granting of a request to expand the market   requests seems ripe for modernization as well. In        attention to the value of localism’’ by taking into
                                                      of a television station merely allows a broadcaster     the near term, the Commission will explore whether       account the five statutory factors).
                                                      the option to seek must carry status on cable                                                                       50 47 U.S.C. 338(l)(2)(B)(iii), 534(h)(1)(C)(ii)(III).
                                                                                                              and how this and other types of required filings
                                                      systems added to its market. A broadcaster is not       might transition to electronic form.                     We will refer to this new factor as the ‘‘third
                                                      required to seek carriage of its signal on all of the      47 We recognize, for example, that in several         statutory factor.’’
                                                      cable systems in its market.’’).                        states, the state acts as the franchising authority         51 Senate Commerce Committee Report at 11.
                                                         44 See In-State Programming Report, at para. 58.     instead of a local government.                              52 Id.




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                                                                                 Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules                                                        19599

                                                      statutory factor would be inapplicable.53                multichannel video programming                             Grade B contour defines an analog
                                                      We seek comment on these tentative                       distributor (MVPD) and non-MVPD                            television station’s service area.59 Since
                                                      conclusions and any alternative                          households or other specific audience                      the completion of the full power digital
                                                      interpretations.                                         indicia, such as station advertising and                   television transition on June 12, 2009,
                                                         12. We tentatively conclude that the                  sales data or viewer contribution                          there are no longer any full power
                                                      evidentiary requirements currently                       records.54                                                 analog stations and, therefore, the
                                                      required in section 76.59 continue to be                    In 1999, the Commission adopted this                    Commission uses the NLSC set forth in
                                                      appropriate to support and evaluate                      standardized evidence approach for                         47 CFR 73.622(e),60 in place of the
                                                      market modification petitions.                           market modifications in the cable                          analog Grade B contour set forth in 47
                                                      Specifically, we propose that market                     context in an effort to promote                            CFR 73.683(a), to describe a full power
                                                      modification requests for both satellite                 administrative efficiency, given the 120-                  station’s technical service area.61 Since
                                                      carriers and cable system operators must                 day time period for Commission action                      the DTV transition, the Media Bureau
                                                      include the following evidence:                          on such petitions.55 We seek comment                       has required full power stations to
                                                         • A map or maps illustrating the                      on whether to do the same for satellite                    provide NLSC maps, in place of Grade
                                                      relevant community locations and                         and on whether any of these evidentiary                    B contour maps, for purposes of cable
                                                      geographic features, station transmitter                 requirements are not relevant in the                       market modifications.62 Therefore, we
                                                      sites, cable system headend or satellite                 satellite context. We further seek                         tentatively conclude that section
                                                      carrier local receive facility locations,                comment on whether any other                               76.59(b)(2) should be updated for
                                                      terrain features that would affect station               evidence should be required to evaluate                    purposes of market modifications in
                                                      reception, mileage between the                           the statutory factors.                                     both the cable and satellite contexts.
                                                      community and the television station                        13. In particular, we seek comment on                   However, we propose to retain the
                                                      transmitter site, transportation routes                  what evidence could be used to                             reference in the rule to the Grade B
                                                      and any other evidence contributing to                   demonstrate the new ‘‘third statutory                      contour because that reference may still
                                                      the scope of the market;                                 factor,’’ which seeks to promote                           have relevance with respect to low
                                                         • Noise-limited service contour maps                  consumer access to in-state                                power television (LPTV) stations.63 We
                                                      (for digital stations) or Grade B contour                programming.56 For example, in
                                                      maps (for analog stations) delineating                   situations in which this third statutory                     59 See  47 CFR 73.683(a).
                                                      the station’s technical service area and                 factor would apply, should we require                        60 As  set forth in section 73.622(e), a full-power
                                                      showing the location of the cable system                 the petitioner to show that the station at                 station’s DTV service area is defined as the area
                                                                                                                                                                          within its noise-limited contour where its signal
                                                      headends or satellite carrier local                      issue is licensed to a community within                    strength is predicted to exceed the noise-limited
                                                      receive facilities and communities in                    the state in which the modification is                     service level. See 47 CFR 73.622(e).
                                                      relation to the service areas.                           requested and that the DMA at issue                           61 See STELA Significantly Viewed Report and

                                                         • Available data on shopping and                      lacks any (or an adequate number of) in-                   Order, at para. 51 (2010) (stating that the digital
                                                      labor patterns in the local market.                      state stations? We note that the current                   NLSC is ‘‘the appropriate service contour relevant
                                                                                                                                                                          for a station’s digital signal’’); 2010 Quadrennial
                                                         • Television station programming                      rule already requires a petitioner to                      Regulatory Review—Review of the Commission’s
                                                      information derived from station logs or                 provide television station programming                     Broadcast Ownership Rules Adopted Pursuant to
                                                      the local edition of the television guide.               information. Would this information                        Section 202 of the Telecommunications Act of 1996,
                                                         • Cable system or satellite carrier                   provide sufficient evidence of whether                     MB Docket No. 09–182, Notice of Inquiry, FCC 10–
                                                                                                                                                                          92, 75 FR 33227, para. 103, June 11, 2010 (stating
                                                      channel line-up cards or other exhibits                  the station at issue offers programming                    that the Commission developed the digital NLSC to
                                                      establishing historic carriage, such as                  (e.g., news, sports, weather, political,                   approximate the same probability of service as the
                                                      television guide listings.                               talk shows, etc.) specifically covering                    Grade B contour and has stated that the two are
                                                         • Published audience data for the                     in-state issues? Should we require a                       roughly equivalent); Report To Congress: The
                                                      relevant station showing its average all                                                                            Satellite Home Viewer Extension And
                                                                                                               petitioner to provide a list of                            Reauthorization Act of 2004; Study of Digital
                                                      day audience (i.e., the reported                         advertisers, which would show that the                     Television Field Strength Standards and Testing
                                                      audience averaged over Sunday–                           station is used to attract viewers to local                Procedures; ET Docket No. 05–182, FCC 05–199,
                                                      Saturday, 7 a.m.–1 a.m., or an                                                                                      para. 111 (rel. Dec. 9, 2005). Since the DTV
                                                                                                               businesses? In addition, are there any                     transition, the Media Bureau has used the digital
                                                      equivalent time period) for both                         satellite-specific evidentiary showings                    NLSC in place of the analog Grade B contour in
                                                                                                               that we should require separate and                        cable contexts in addition to market modifications.
                                                         53 We note that this is similar to how we apply
                                                                                                               apart from the six evidentiary showings                    See, e.g., KXAN, Inc., Memorandum Opinion and
                                                      the fourth statutory factor (‘‘whether any other                                                                    Order, DA 10–589, para. 8 n.32 (MB rel. Apr. 1,
                                                      television station that is eligible to be carried by a   described above?                                           2010) (using the NLSC in place of the Grade B
                                                      cable system in such community in fulfillment of            14. In addition, we tentatively                         contour for purposes of the cable network non-
                                                      the requirements of this section provides news           conclude to revise section 76.59(b)(2) of                  duplication and syndicated program exclusivity
                                                      coverage of issues of concern to such community          the rules to add a reference to the digital                rules). Congress has also acted on the presumption
                                                      or provides carriage or coverage of sporting and                                                                    that the two standards are roughly equivalent, by
                                                      other events of interest to the community’’). 47         noise-limited service contour (NLSC),                      adopting parallel definitions for households that are
                                                      U.S.C.534(h)(1)(C)(ii)(III). The Commission has          which is the relevant service contour for                  ‘‘unserved’’ by analog (measured by Grade B) or
                                                      found that this fourth factor (previously the third      a station’s digital signal.57 Section                      digital (measured by NLSC) broadcasters in the
                                                      factor) is not intended to operate as a bar to a         76.59(b)(2) requires petitioners seeking a                 STELA legislation enacted after the DTV transition.
                                                      station’s market modification request whenever                                                                      See 17 U.S.C. 119(d)(10)(A)(i).
                                                      other stations could also be shown to serve the          market modification to provide Grade B                        62 See, e.g., Tennessee Broadcasting Partners,

                                                      communities at issue. See e.g., Great Trails             contour maps delineating the station’s                     Memorandum Opinion and Order, DA 10–824,
                                                      Broadcasting Corp., DA 95–1700, para. 23 (MB rel.        technical service area; 58 however the                     para. 6, n.14 (MB rel. May 12, 2010) (stating, in a
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                                                      Aug. 11, 1995); Paxson San Jose License, Inc., DA                                                                   market modification order, that the Commission has
                                                      97–2276, para. 13 (MB rel. Oct. 30, 1997). Rather,         54 See
                                                                                                                                                                          treated a digital station’s NLSC as the functional
                                                                                                                        47 CFR 76.59(b)(1) through (6).
                                                      the fourth factor is intended to enhance a station’s       55 Definition
                                                                                                                                                                          equivalent of an analog station’s Grade B contour);
                                                      market modification request where it could be                            of Markets for Purposes of the Cable       Lenfest Broadcasting, LLC, Memorandum Opinion
                                                      shown that other stations do not provide news            Television Broadcast Signal Carriage Rules, CS             and Order, DA 04–1414, para. 7, n.27 (MB rel. May
                                                      coverage of issues of concern to the communities         Docket No. 95–178, Order on Reconsideration and            20, 2004).
                                                      at issue. See id. Likewise, we believe the new third     Second Report and Order, FCC 99–116, 64 FR                    63 We note that the Commission has tentatively

                                                      statutory factor is intended to enhance a station’s      33788, para. 44, Jun. 24, 1999.                            concluded that it should extend the September 1,
                                                                                                                 56 47 U.S.C. 338(l)(2)(B)(iii), 534(h)(1)(C)(ii)(III).
                                                      market modification request where it could be                                                                       2015 digital transition deadline for LPTV stations.
                                                                                                                 57 See 47 CFR 76.59(b)(2).
                                                      shown that such modification would promote                                                                          See Amendment of Parts 73 and 74 of the
                                                      consumer access to in-state programming.                   58 47 CFR 76.59(b)(2).                                                                              Continued




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                                                      19600                      Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules

                                                      seek comment on these tentative                             respect to a particular commercial                     modification in the satellite context.71
                                                      conclusions. (We are also updating                          television broadcast station.’’ 68 This                We seek comment on these tentative
                                                      section 76.59(b)(6) of the rules to reflect                 also makes sense because market                        conclusions. We also seek comment on
                                                      the change from ‘‘evidence of viewing                       modification determinations are highly                 any alternative approaches. For
                                                      patterns in cable and noncable                              fact-specific and turn on whether a                    example, should prior market
                                                      households . . .’’ to ‘‘evidence of                         particular commercial television                       determinations in the cable context
                                                      viewing patterns in households that                         broadcast station serves the needs of a                carry a presumption of approval in the
                                                      subscribe and do not subscribe to the                       specific community. We also propose to                 satellite context or automatically apply
                                                      services offered by multichannel video                      consider market modification requests                  to the satellite context? We note,
                                                      programming distributors’’ in the fifth                     separately in the cable and satellite                  however, that any presumption or
                                                      statutory factor (emphasis added).64 We                     contexts. We believe this proposal                     automatic application would have to be
                                                      seek comment on this tentative                              makes sense given the service area                     subject to the STELAR’s exception for
                                                      conclusion.)                                                differences between satellite carriers                 satellite carriers if the resulting carriage
                                                        15. Consistent with the cable carriage                    and cable systems and the potential                    would not be ‘‘technically and
                                                      rule, we propose that satellite market                      difference between a cable and satellite               economically feasible.’’ Would such
                                                      modification requests that do not                           community, given that the former is                    alternative approaches impose a
                                                      include the required evidence also be                       defined as ‘‘a separate and distinct                   significant burden on satellite carriers
                                                      dismissed without prejudice and may be                      community or municipal entity’’ and we                 who would have to evaluate the
                                                      supplemented and re-filed at a later date                   consider defining the latter using one or              feasibility of carriage resulting from all
                                                      with the appropriate filing fee.65 In                       more five-digit zip codes.69 We also                   prior determinations?
                                                      addition, consistent with the cable                         propose that market modification
                                                                                                                  requests will only apply to the satellite                 18. Carriage after a market
                                                      carriage rule, we propose that, during
                                                                                                                  carrier or carriers named in the                       modification. We tentatively conclude
                                                      the pendency of a market modification
                                                                                                                  request.70 For example, a modification                 that television broadcast stations that
                                                      petition before the Commission, satellite
                                                                                                                  may not always appropriately apply to                  become eligible for mandatory carriage
                                                      carriers will also be required to
                                                                                                                  both carriers because their spot beams                 with respect to a satellite carrier
                                                      maintain the status quo with regard to
                                                      signal carriage and must not delete from                    may be different, even though they are                 (pursuant to section 76.66 of the rules)
                                                      carriage the signal of an affected                          serving the same market and thus one                   by virtue of a change in the market
                                                      commercial television station.66                            may have an infeasibility defense while                definition (by operation of a market
                                                                                                                  the other may not. We seek comment on                  modification pursuant to section 76.59
                                                      C. Market Determinations                                    these proposals. We also seek comment                  of the rules) may, within 30 days of the
                                                        16. Consistent with the cable carriage                    on any alternative approaches. For                     effective date of the new definition,
                                                      context, we interpret the statute to                        example, should market determinations                  elect retransmission consent or
                                                      require that market modifications in the                    apply for purposes of both cable and                   mandatory carriage with respect to such
                                                      satellite carriage context must be limited                  satellite carriage and what procedures or              carrier. We further tentatively conclude
                                                      to the specific station or stations                         definitional changes would be needed to                that a satellite carrier must commence
                                                      identified in the market modification                       implement such an approach? How                        carriage within 90 days of receiving the
                                                      request and to the specific satellite                       would such an alternative approach                     request for carriage from the television
                                                      community or communities referenced                         account for the STELAR’s exception for                 broadcast station. These proposals are
                                                      in the request.67 This reading is based                     satellite carriage that would not be                   consistent with our cable rules, as well
                                                      on the statute’s language granting                          ‘‘technically and economically feasible’’              as with existing satellite carriage
                                                      authority to modify markets ‘‘with                          (discussed below)?                                     procedures, including those involving
                                                                                                                     17. Prior Determinations. Because                   new television stations.72 In addition,
                                                      Commission’s Rules to Establish Rules for Digital           market modification determinations are                 we tentatively conclude that the carriage
                                                      Low Power Television, Television Translator, and            so highly fact-specific, we tentatively                election must be made in accordance
                                                      Television Booster Stations, MB Docket No. 03–185,          conclude that prior market                             with section 76.66(d)(1).73 We seek
                                                      Third Notice of Proposed Rulemaking, FCC 14–151,            determinations made with respect to
                                                      79 FR 70824, para. 4, Nov. 28., 2014. Although                                                                     comment on these tentative conclusions
                                                      LPTV stations are not entitled to mandatory satellite       cable carriage will not automatically
                                                      carriage, see 47 U.S.C. 338(a)(3), LPTV stations may        apply to the satellite context. It appears                71 See 47 U.S.C. 338(l)(2)(B)(i)(I) (whether the
                                                      be entitled to mandatory cable carriage, but only in        that the inherent differences between                  station, or other stations located in the same area—
                                                      limited circumstances. Both the Communications              cable and satellite service would make                 ‘‘have been historically carried on the cable system
                                                      Act and the Commission’s rules mandate that only                                                                   or systems within such community’’).
                                                      a minimum number of qualified low power stations            such automatic application inadvisable.
                                                                                                                                                                            72 See 47 CFR 76.64(f)(5), 76.66(d)(1) and (d)(3).
                                                      must be carried by cable systems, see 47 U.S.C.             We note, however, that historic carriage                  73 See 47 CFR 76.66(d)(1). Section 76.66(d)(1)
                                                      534(c)(1); 47 CFR 76.56(b)(3), and, in order to             is one of the five factors the Commission              requires that an election request made by a
                                                      qualify, such stations must meet several criteria.          would consider in evaluating market                    television station must be in writing and sent to the
                                                      See 47 U.S.C. 534(h)(2)(A)–(F); 47 CFR 76.55(d)(1)–
                                                      (6).                                                        modification requests and could carry                  satellite carrier’s principal place of business, by
                                                         64 See 47 U.S.C. 338(l)(2)(B)(v), 534(h)(1)(C)(ii)(V).   weight in determining a market                         certified mail, return receipt requested. 47 CFR
                                                                                                                                                                         76.66(d)(1)(ii). The rule requires that a television
                                                         65 See 47 CFR 76.59(c).
                                                                                                                                                                         station’s written notification shall include the
                                                         66 See 47 CFR 76.59(d). See also 47 U.S.C.                 68 47 U.S.C. 338(l)(1).                              following information: (1) Station’s call sign; (2)
                                                      338(l)(3)(B), 534(h)(1)(C)(iii); Must Carry Order, at         69 See  id. at 1930, para. 24.                       Name of the appropriate station contact person; (3)
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                                                      para. 46.                                                      70 This is also consistent with the satellite       Station’s address for purposes of receiving official
                                                         67 See Must Carry Order, at para. 47, n.139              carriage election process. See Implementation of the   correspondence; (4) Station’s community of license;
                                                      (stating that ‘‘the statute is intended to permit the       Satellite Home Viewer Improvement Act of 1999:         (5) Station’s DMA assignment; and (6) Station’s
                                                      modification of a station’s market to reflect its           Broadcast Signal Carriage Issues, CS Docket No.        election of mandatory carriage or retransmission
                                                      individual situation’’); 47 CFR 76.59. We note that         00–96, Order on Reconsideration, FCC 01–249, 66        consent. 47 CFR 76.66(d)(1)(iii). The rule also
                                                      this is also consistent with the Commission’s               FR 49124, para. 62, Sept. 26., 2001 (DBS Must Carry    requires that, within 30 days of receiving the
                                                      previous determination that stations may make a             Reconsideration Order) (‘‘where there is more than     request for carriage from the television broadcast
                                                      different retransmission consent/mandatory                  one satellite carrier in a local market area, a        station, a satellite carrier must notify the station in
                                                      carriage election in the satellite context than that        television station can elect retransmission consent    writing that it will not carry the station, along with
                                                      made in the cable context. See DBS Broadcast                for one satellite carrier and elect must carry for     the reasons for such decision, or that it intends to
                                                      Carriage Report and Order, at para. 23.                     another satellite carrier’’).                          carry the station. 47 CFR 76.66(d)(1)(iv).



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                                                                                Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules                                                     19601

                                                      and on any other procedural                             This would ensure that, if there is a                  so as to not necessitate the burden of
                                                      requirements we should consider.                        change in circumstances such that it                   such a reporting requirement? If not
                                                                                                              later becomes technically and                          notified by the carrier, how else could
                                                      D. Technical or Economic Infeasibility
                                                                                                              economically feasible for the satellite                a broadcaster find out about such a
                                                      Exception for Satellite Carriers
                                                                                                              carrier to carry the station, then the                 change in the feasibility of carriage? To
                                                         19. We propose to include the                        station could assert its carriage rights               the extent that a satellite carrier can
                                                      statutory language of section 338(l)(3)                 pursuant to the earlier market                         provide the station at issue to some, but
                                                      within section 76.59 to implement this                  modification.78 We seek comment on                     not all, subscribers in the community,
                                                      provision, and we seek comment on this                  this proposal or if, alternatively, we                 should we allow or require the carrier
                                                      implementation. section 338(l)(3)                       should deny a market modification                      to deliver the station to subscribers in
                                                      provides that ‘‘[a] market determination                request that would not create a new                    the community who are capable of
                                                      . . . shall not create additional carriage              carriage obligation at the time of the                 receiving the signal?
                                                      obligations for a satellite carrier if it is            determination.                                           21. We note that compiling the
                                                      not technically and economically                           20. We also invite comment on the                   standardized evidence necessary to
                                                      feasible for such carrier to accomplish                 types of technical or economic                         demonstrate that a market modification
                                                      such carriage by means of its satellites                impediments contemplated by this                       should be granted may not be, in some
                                                      in operation at the time of the                         provision and the type of evidence                     instances, a simple or inexpensive
                                                      determination.’’ 74 The legislative                     needed to prove such infeasibility                     process. In this regard, should the
                                                      history indicates that Congress                         claims. Are there any objective criteria               Commission, in the case of satellite
                                                      recognized ‘‘that there are technical and               by which the Commission could                          market modifications, require or
                                                      operational differences that may make a                 determine technical or economic                        encourage stations seeking market
                                                      particular television market                            infeasibility? For example, the                        modifications to contact a satellite
                                                      modification difficult for a satellite                  Commission has recognized that spot                    carrier before filing a market
                                                      carrier to effectuate.’’ 75 The legislative             beam coverage limitations, in the                      modification request in order to get an
                                                      history also indicates ‘‘that claims of the             provision of local-into-local service                  initial determination on whether the
                                                      existence of such difficulties should be                context, may be a legitimate technical                 carrier considers the request technically
                                                      well substantiated and carefully                        impediment.79 Under what                               and economically feasible? Such an
                                                      examined by the [Commission] as part                    circumstances would the limitations or                 initial inquiry might save some
                                                      of the petition consideration process.’’ 76             coverage of a spot beam be a sufficient
                                                      Based on the language of the provision                                                                         broadcasters the time and expense of
                                                                                                              basis for a satellite carrier to prove that
                                                      and the legislative history, we                                                                                compiling the standardized evidence for
                                                                                                              carriage of a station in the community
                                                      tentatively conclude that the satellite                                                                        a modification that is not technically
                                                                                                              at issue is not technically and
                                                      carrier has the burden to demonstrate                                                                          and economically feasible by alerting
                                                                                                              economically feasible? Should we
                                                      technical or economic infeasibility. We                                                                        them to the technical or economic issue,
                                                                                                              require satellite carriers claiming
                                                      further interpret the statutory text as                                                                        which they could then take into account
                                                                                                              infeasibility due to insufficient spot
                                                      requiring a satellite carrier to raise any                                                                     in deciding whether to file the request.
                                                                                                              beam coverage to provide spot beam
                                                      technical or economic impediments in                                                                           We seek comment on this issue.
                                                                                                              contour diagrams to show whether a
                                                      the market modification proceeding and                  particular spot beam can be used to                    E. No Effect on Eligibility To Receive
                                                      we propose to address this issue in the                 cover a particular community? We also                  Distant Signals via Satellite
                                                      market modification proceeding. This                    seek specific comment from satellite
                                                      reading is consistent with the language                 carriers on the complexities and                          22. We propose to include the
                                                      of the statute (that we consider whether                expense that may be associated with                    statutory language of section 338(l)(5)
                                                      the carrier can accomplish carriage ‘‘at                reconfiguring a spot beam to cover                     within section 76.59 to implement this
                                                      the time of the determination’’).                       additional communities added to the                    provision, and we seek comment on any
                                                      Moreover, this will be most efficient for               market served by the spot beam by                      further guidance we can give for its
                                                      all parties. We seek comment on this                    operation of the market modification                   implementation.80 Section 338(l)(5)
                                                      proposal and whether the satellite                      process. In addition, in the event of a                provides that ‘‘[n]o modification of a
                                                      carrier should be deemed to have                        Commission finding of technical or                     commercial television broadcast
                                                      waived technical or economic                            economic infeasibility, we seek                        station’s local market pursuant to this
                                                      infeasibility arguments if not raised in                comment on whether we should impose                    subsection shall have any effect on the
                                                      response to the market modification                     a reporting requirement on satellite                   eligibility of households in the
                                                      request (and, thus, be prohibited from                  carriers to notify the affected                        community affected by such
                                                      raising such a claim after a market                     broadcaster if circumstances change at a               modification to receive distant signals
                                                      determination, such as in response to a                 later time making it technically and                   pursuant to section 339,
                                                      station’s request for carriage). We also                economically feasible for the carrier to               notwithstanding subsection (h)(1) of this
                                                      seek comment on any alternative                         carry the station. Would such changes                  section.’’ 81 There are two key
                                                      approaches. In addition, we propose to                  in circumstances be sufficiently public                restrictions on a satellite subscriber’s
                                                      grant a meritorious market modification                                                                        eligibility to receive ‘‘distant’’ (out-of-
                                                      request, even if such grant would not                   time, for example, due to the station being a          market) signals.82 First, subscribers are
                                                      create a new carriage obligation at that                duplicating signal. See 47 CFR 76.56(b)(5).            generally eligible to receive a distant
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                                                      time, for example, due to a finding of                     78 This concept is similar to the duplicating       station from a satellite carrier only if the
                                                      technical or economic infeasibility.77                  signals situation, in which a satellite carrier must   subscriber is ‘‘unserved’’ over the air by
                                                                                                              add a television station to its channel line-up if
                                                                                                              such station no longer duplicates the programming
                                                        74 47 U.S.C. 338(l)(3).                                                                                        80 47    U.S.C. 338(l)(5).
                                                                                                              of another local television station. See 47 CFR
                                                        75 Senate  Commerce Committee Report at 11.           76.66(h)(4).                                             81 Id.
                                                        76 See id.                                               79 See DBS Broadcast Carriage Report and Order,       82 See 17 U.S.C. 119; 47 U.S.C. 339. Generally, a
                                                        77 We note that this is consistent with the cable     at para. 42 (allowing satellite carriers to use spot   station is considered ‘‘distant’’ with respect to a
                                                      carriage context, in which the Commission might         beam technology to provide local-into-local service,   subscriber if such station originates from outside of
                                                      grant a market modification, even if such grant         even if the spot beam did not cover the entire         the subscriber’s local television market (or DMA).
                                                      would not result in a new carriage obligation at that   market).                                               See id.



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                                                      19602                     Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules

                                                      a local station of the same network.83                    that the deletion of a local station from              by-case basis.91 In the cable carriage
                                                      Second, even if ‘‘unserved,’’ a                           a local television market by operation of              context, the Commission considers
                                                      subscriber is not eligible to receive a                   a market modification would not make                   market modification requests on a
                                                      distant station from a satellite carrier if               otherwise ineligible subscribers now                   community-by-community basis 92 and
                                                      the carrier is making ‘‘available’’ to such               eligible to receive a distant station of the           defines a community unit in terms of a
                                                      subscriber a local station of the same                    same network. We also seek comment                     ‘‘distinct community or municipal
                                                      network.84 We believe section 338(l)(5)                   on any other rule changes necessary to                 entity’’ where a cable system operates or
                                                      is largely intended as an exception to                    implement this statutory provision.                    will operate.93 A ‘‘satellite community,’’
                                                      these two subscriber eligibility                                                                                 however, is not as easily defined as a
                                                                                                                F. Definition of Community
                                                      requirements. In other words, under this                                                                         cable community. Unlike cable service,
                                                      reading, the addition of a new local                        23. As directed by the STELAR, we                    which reaches subscribers in a defined
                                                      station to a local television market by                   consider how to define a ‘‘community’’                 local area via local franchises, satellite
                                                      operation of a market modification                        for purposes of market modification in                 carriers offer service on a national basis,
                                                      (which might otherwise restrict a                         both the cable and satellite contexts.87               with no connection to a particular local
                                                      subscriber’s eligibility to receive a                     With respect to a ‘‘satellite community,’’             community or municipality. Moreover,
                                                      distant station) would not disqualify an                  we generally invite comment on how to                  satellite service is sometimes offered in
                                                      otherwise eligible satellite subscriber                   define a ‘‘satellite community,’’ and                  areas of the country that do not have
                                                      from receiving a distant station of the                   seek specific comment on two alternate                 cable service, and thus cannot be
                                                      same network. For example, a                              proposals for this definition below.                   defined by cable communities. The
                                                      subscriber may be receiving a distant                     With respect to a ‘‘cable community,’’                 Commission previously faced the
                                                      station because the subscriber resides in                 we tentatively conclude that our                       question of how to define a satellite
                                                      a ‘‘short market,’’ 85 has obtained a                     existing definition of a ‘‘cable                       community in 2005, after the SHVERA
                                                      waiver from the relevant network                          community’’ (in section 76.5(dd) of the                added significantly viewed provisions
                                                      station,86 or is otherwise eligible to                    rules) has worked well in cable market                 for the satellite carriage context.94 In the
                                                      receive distant signals pursuant to                       modifications for more than 20 years                   significantly viewed context, the
                                                      section 339. That subscriber will                         and should not be changed. While we                    Commission, seeking regulatory parity,
                                                      continue to be eligible to receive the                    continue to believe the cable definition               defined a satellite community in the
                                                      distant station after a market                            best effectuates the cable market                      same way as a cable community in most
                                                      modification that adds a new local                        modification provision, we nevertheless                situations.95 However, the Commission
                                                      station of the same network. We seek                      invite comment on whether we need to
                                                      comment on our proposed reading of                        update this definition, such as whether                   91 See Amendment of Part 76 of the Commission’s

                                                      this provision. We also seek comment                      to allow cable modifications on a county               Rules and Regulations with Respect to the
                                                                                                                basis. Section 102(d)(2) of the STELAR                 Definition of a Cable Television System and the
                                                      on any alternative interpretations. We                                                                           Creation of Classes of Cable Systems, Docket No.
                                                      invite comment on the specific                            requires the Commission to ‘‘update                    20561, First Report and Order, FCC 77–205, para.
                                                      situations intended to be covered by                      what it considers to be a community for                20, n. 5 (rel. Apr. 6, 1977) (1977 Cable Order).
                                                      section 338(l)(5). We seek comment on                     purposes of a modification of a market’’                  92 See 1977 Cable Order, para. 22 (explaining that

                                                      whether section 338(l)(5) also means                      in both the satellite and cable                        the cable carriage rules apply ‘‘on a community-by-
                                                                                                                                                                       community basis’’). See also 47 CFR 76.5(dd),
                                                                                                                contexts.88 The legislative history                    76.59.
                                                         83 The Copyright Act defines an ‘‘unserved             indicates Congress’ intent for the                        93 47 CFR 76.5(dd) defines ‘‘community unit’’ as:
                                                      household,’’ with respect to a particular television      Commission ‘‘to consider alternative                   ‘‘A cable television system, or portion of a cable
                                                      network, as ‘‘a household that cannot receive,            definitions for community that could                   television system, that operates or will operate
                                                      through the use of an antenna, an over-the-air signal                                                            within a separate and distinct community or
                                                      containing the primary stream, or, on or after the        make the market modification process
                                                                                                                                                                       municipal entity (including unincorporated
                                                      qualifying date, the multicast stream, originating in     more effective and useful.’’ 89                        communities within unincorporated areas and
                                                      that household’s local market and affiliated with           24. The concept of a ‘‘community’’ is                including single, discrete unincorporated areas).’’ A
                                                      that network—(i) if the signal originates as an           important in the market modification                   cable system community is assigned a community
                                                      analog signal, Grade B intensity as defined by the                                                               unit identifier number (‘‘CUID’’) when registered
                                                      Federal Communications Commission in section
                                                                                                                context, because the term describes the
                                                                                                                                                                       with the Commission, pursuant to section 76.1801
                                                      73.683(a) of title 47, Code of Federal Regulations,       geographic area that will be added to or               of the rules. 47 CFR 76.1801.
                                                      as in effect on January 1, 1999; or (ii) if the signal    deleted from a station’s local television                 94 See Implementation of the Satellite Home
                                                      originates as a digital signal, intensity defined in      market, which in turn determines the                   Viewer Extension and Reauthorization Act of 2004,
                                                      the values for the digital television noise-limited
                                                      service contour, as defined in regulations issued by
                                                                                                                stations that must be carried by a cable               Implementation of Section 340 of the
                                                                                                                operator (or, in the future, a satellite               Communications Act, MB Docket No. 05–49, Report
                                                      the Federal Communications Commission (section                                                                   and Order, FCC 05–187, 70 FR 76504, para. 51,
                                                      73.622(e) of title 47, Code of Federal Regulations),      carrier) to subscribers in that                        December 27, 2005 (SHVERA Significantly Viewed
                                                      as such regulations may be amended from time to           community.90 Because of the localized                  Report and Order). The SHVERA defined the term
                                                      time. 17 U.S.C. 119(d)(10)(A). An unserved
                                                      household can also be one that is subject to one of
                                                                                                                nature of cable systems, cable                         ‘‘community’’ for purposes of the significantly
                                                                                                                communities are easily defined by the                  viewed rules, as either ‘‘(A) a county or a cable
                                                      four statutory waivers or exemptions. See id.                                                                    community, as determined under the rules,
                                                      119(d)(10)(B) through (E).                                geographic boundaries of a given cable                 regulations, and authorizations of the Commission
                                                         84 See 47 U.S.C. 339(a)(2); 17 U.S.C. 119(a)(3).
                                                                                                                system, which are often, but not always,               applicable to determining with respect to a cable
                                                      This second restriction on eligibility is commonly        coincident with a municipal boundary                   system whether signals are significantly viewed; or
                                                      referred to as the ‘‘no distant where local’’ rule. A                                                            (B) a satellite community, as determined under
                                                      satellite carrier makes ‘‘available’’ a local signal to   and may vary as determined on a case-                  such rules, regulations, and authorizations (or
                                                      a subscriber or person if the satellite carrier offers                                                           revisions thereof) as the Commission may prescribe
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                                                      that local signal to other subscribers who reside in        87 STELAR    sec. 102(d)(2); 47 U.S.C.A. 338 Note.   in implementing the requirements of this section.’’
                                                      the same zip code as that subscriber or person. 47          88 STELAR    sec. 102(d)(2) (‘‘MATTERS FOR           47 U.S.C. 340(i)(3).
                                                      U.S.C. 339(a)(2)(H). See also 17 U.S.C. 119(a)(3)(F).     CONSIDERATION.—As part of the rulemaking                  95 See 47 CFR 76.5(gg) (defining a ‘‘satellite
                                                         85 See 47 U.S.C. 339(a)(2)(C); 17 U.S.C. 119(d)(10).   required by paragraph (1), the Commission shall        community’’ as ‘‘[a] separate and distinct
                                                      By a ‘‘short market,’’ we refer to a market in which      . . . update what it considers to be a community       community or municipal entity (including
                                                      one of the four major television networks is not          for purposes of a modification of a market under       unincorporated communities within
                                                      offered on the primary stream of a local broadcast        section 338(l) or 614(h)(1)(C) of the                  unincorporated areas and including single, discrete
                                                      station, thus permitting satellite carriers to deliver    Communications Act of 1934’’); 47 U.S.C.A. 338         unincorporated areas). The boundaries of any such
                                                      a distant station affiliated with that missing            Note.                                                  unincorporated community may be defined by one
                                                      network to subscribers in that market.                       89 Senate Commerce Committee Report at 12.
                                                                                                                                                                       or more adjacent five-digit zip code areas. Satellite
                                                         86 See 47 U.S.C. 339(a)(2)(E).                            90 See 47 U.S.C. 338(a)(1); 47 CFR 76.66(b)(1).     communities apply only in areas in which there is



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                                                                                Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules                                                        19603

                                                      allowed a satellite carrier to define a                   economically feasible for a satellite                   STELAR amended the Communications
                                                      satellite community ‘‘by one or more                      carrier to retransmit a station to an                   Act and the Copyright Act to give the
                                                      adjacent five-digit zip code areas’’ in the               entire cable community (as defined in                   Commission authority to modify a
                                                      limited situation in which there was no                   76.5(dd)), but it might be feasible for the             commercial television broadcast
                                                      previously defined cable community                        carrier to retransmit the station to                    station’s local television market for
                                                      and the area was unincorporated.96                        particular portions of that community,                  purposes of satellite carriage rights.106
                                                         25. We seek comment on whether we                      such as to certain zip codes within such                The Commission currently has the
                                                      should use the definition of ‘‘satellite                  community. What definition of                           authority to modify markets only in the
                                                      community’’ in section 76.5(gg) for                       community will most effectively                         cable carriage context.107 With section
                                                      satellite market modifications.97                         promote consumer access to in-state                     102 of the STELAR, Congress provides
                                                      Alternatively, we seek comment on                         programming? 100 For example, is it                     regulatory parity in this regard in order
                                                      whether we should use one or more                         appropriate to consider county-based                    ‘‘to further consumer access to relevant
                                                      adjacent five-digit zip codes to form the                 modifications in the satellite context,                 television programming.’’ 108 In this
                                                      basis of a ‘‘satellite community’’ for                    particularly in situations in which the                 NPRM, consistent with Congress’ intent
                                                      satellite market modifications.98 Would                   county is assigned to an out-of-state                   that the Commission model the satellite
                                                      allowing satellite carriers to use one or                 DMA? 101 If we allow modifications on                   market modification process on the
                                                      more adjacent five-digit zip code areas                   a county basis in the satellite context,                current cable market modification
                                                      (notwithstanding the presence of a cable                  should we also allow such                               process, the Commission proposes to
                                                      community) in the market modification                     modifications in the cable context?                     implement section 102 of the STELAR
                                                      context better effectuate the STELAR’s                                                                            by revising the current cable market
                                                      goal to promote consumer access to                        IV. Procedural Matters
                                                                                                                                                                        modification rule, section 76.59, to
                                                      relevant television programming? What                     A. Initial Regulatory Flexibility Act                   apply also to satellite carriage, while
                                                      other possible definitions of satellite                   Analysis                                                adding provisions to the rules to address
                                                      community should we consider? Would                         26. As required by the Regulatory                     the unique nature of satellite television
                                                      another definition be more technically                    Flexibility Act of 1980, as amended                     service.109 In addition to establishing
                                                      and economically feasible for satellite                   (RFA),102 the Commission has prepared                   rules for satellite market modifications,
                                                      carriers to apply and, thus, facilitate                   this Initial Regulatory Flexibility                     section 102 of the STELAR directs the
                                                      successful market modifications? 99 For                   Analysis (IRFA) concerning the possible                 Commission to consider whether it
                                                      example, it might not be technically and                  significant economic impact on small                    should make changes to the current
                                                                                                                entities by the policies and rules                      cable market modification rules,110 and
                                                      no pre-existing cable community, as defined in
                                                      76.5(dd).’’). See also SHVERA Significantly Viewed
                                                                                                                proposed in this Notice of Proposed                     it also makes certain conforming
                                                      Report and Order, at para. 50. We note, however,          Rule Making (NPRM). Written public                      amendments to the cable market
                                                      that the SHVERA required satellite carriers to use        comments are requested on this IRFA.                    modification statutory provision.111
                                                      the existing defined cable communities on the             Comments must be identified as                          Accordingly, as part of the
                                                      significantly viewed list. See 47 U.S.C. 340(a)(1);
                                                      340(i)(3)(A). This provision, in part, caused the
                                                                                                                responses to the IRFA and must be filed                 implementation of the STELAR, the
                                                      Commission to favor the use of cable communities          by the deadlines for comments provided                  Commission proposes to make
                                                      to define future communities, except for                  on the first page of the item. The                      conforming changes to the cable market
                                                      unincorporated areas, to promote consistent rules         Commission will send a copy of the                      modification rules and considers
                                                      and significantly viewed listings for both satellite
                                                      and cable. See SHVERA Significantly Viewed                NPRM, including this IRFA, to the Chief                 whether it should make any other
                                                      Report and Order, at para. 51 (stating that the           Counsel for Advocacy of the Small                       changes to the current cable market
                                                      ‘‘definition will also make it more likely that a cable   Business Administration (SBA).103 In                    modification rules. The STELAR
                                                      system subsequently built in such an area would           addition, the NPRM and IRFA (or                         requires the Commission to issue final
                                                      serve a ‘community’ similar to the satellite
                                                      community, thus making the [Significantly Viewed]         summaries thereof) will be published in                 rules in this proceeding on or before
                                                      List more easily used by both cable and satellite         the Federal Register.104                                September 4, 2015.112
                                                      providers’’). This reasoning does not necessarily
                                                      apply to the market modification context if we            1. Need for, and Objectives of, the                     2. Legal Basis
                                                      adopt our proposal to separately consider and apply       Proposed Rule Changes
                                                      market modifications in the cable and satellite                                                                     28. The proposed action is authorized
                                                      contexts.                                                    27. In this Notice of Proposed                       pursuant to section 102 of the STELA
                                                         96 47 CFR 76.5(gg). The Commission required            Rulemaking (NPRM), the Commission                       Reauthorization Act of 2014 (STELAR),
                                                      satellite carriers to use zip codes that were adjacent    proposes satellite television ‘‘market                  Pub. L. 113–200, 128 Stat. 2059 (2014),
                                                      to each other ‘‘to prevent carriers from cherry-          modification’’ rules to implement
                                                      picking their service to these areas.’’ SHVERA                                                                    and sections 1, 4(i), 303(r), 338 and 614
                                                      Significantly Viewed Report and Order, at para. 52.
                                                                                                                section 102 of the STELAR.105 The                       of the Communications Act of 1934, as
                                                         97 See 47 CFR 76.5(gg).
                                                         98 We note that the Commission used zip codes             100 We take particular note here of Congress’
                                                                                                                                                                           106 STELAR secs. 102, 204, 128 Stat. at 2060–62,
                                                      in lieu of community units to define the various          concern that consumers in an out-of-state DMA may
                                                                                                                ‘‘lack access to local television programming that is   2067.
                                                      zones of protection afforded under the satellite                                                                     107 See 47 U.S.C. 534(h)(1)(C). See also 47 CFR
                                                      exclusivity rules applicable to nationally                relevant to their everyday lives.’’ Senate Commerce
                                                                                                                Committee Report at 11.                                 76.59.
                                                      distributed superstations. See 47 CFR 76.122,                                                                        108 See title of STELAR sec. 102, ‘‘Modification of
                                                                                                                   101 See In-State Programming Report, at para. 58.
                                                      76.123; Implementation of the Satellite Home
                                                                                                                   102 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601      Television Markets to Further Consumer Access to
                                                      Viewer Improvement Act of 1999: Application of
                                                      Network Non-Duplication, Syndicated Exclusivity,          et seq., has been amended by the Contract With          Relevant Television Programming.’’ See also Report
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                                                      and Sports Blackout Rules to Satellite                    America Advancement Act of 1996, Public Law             from the Senate Committee on Commerce, Science,
                                                      Retransmissions of Broadcast Signals, CS Docket           104–121, 110 Stat. 847 (1996) (CWAAA). Title II of      and Transportation accompanying S. 2799, 113th
                                                      No. 00–2, Report and Order, FCC 00–388, 65 FR             the CWAAA is the Small Business Regulatory              Cong., S. Rep. No. 113–322 (2014) (‘‘Senate
                                                      68082, para. 28, Nov. 14, 2000, recon. granted in         Enforcement Fairness Act of 1996 (SBREFA).              Commerce Committee Report’’).
                                                                                                                   103 See 5 U.S.C. 603(a).                                109 See 47 CFR 76.59. The Commission proposes
                                                      part, denied in part, Order on Reconsideration, FCC
                                                      02–287, 67 FR 68944, Nov. 14, 2002.                          104 See id.                                          to revise section 76.59 of the rules to apply to both
                                                         99 We note that the two satellite carriers                105 The STELA Reauthorization Act of 2014            cable systems and satellite carriers.
                                                                                                                                                                           110 STELAR sec. 102(d).
                                                      previously favored the use of zip codes in the            (STELAR), sec. 102, Public Law 113–200, 128 Stat.
                                                                                                                                                                           111 See STELAR sec. 102(b) (amending 47 U.S.C.
                                                      significantly viewed context to offer ‘‘greater           2059, 2060–62 (2014) (codified at 47 U.S.C. 338(l)).
                                                      certainty to consumers.’’ See SHVERA Significantly        The STELAR was enacted on December 4, 2014 (H.          534(h)(1)(C)(ii)).
                                                      Viewed Report and Order, at para. 52.                     R. 5728, 113th Cong.).                                     112 STELAR sec. 102(d)(1).




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                                                      19604                     Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules

                                                      amended, 47 U.S.C. 151, 154(i), 303(r),                 services, including VoIP services; wired                total, 3,144 firms had fewer than 1,000
                                                      338 and 534.                                            (cable) audio and video programming                     employees, and 44 firms had 1,000 or
                                                                                                              distribution; and wired broadband                       more employees.124 Therefore, under
                                                      3. Description and Estimate of the
                                                                                                              Internet services. By exception,                        this size standard, we estimate that the
                                                      Number of Small Entities to Which the
                                                                                                              establishments providing satellite                      majority of businesses can be
                                                      Proposed Rules Will Apply
                                                                                                              television distribution services using                  considered small entities.
                                                         29. The RFA directs agencies to                      facilities and infrastructure that they                   32. Cable Companies and Systems.
                                                      provide a description of and, where                     operate are included in this                            The Commission has also developed its
                                                      feasible, an estimate of the number of                  industry.’’ 117 The SBA has developed a                 own small business size standards, for
                                                      small entities that may be affected by                  small business size standard for                        the purpose of cable rate regulation.
                                                      the proposed rules, if adopted.113 The                  wireline firms for the broad economic                   Under the Commission’s rate regulation
                                                      RFA generally defines the term ‘‘small                  census category of ‘‘Wired                              rules, a ‘‘small cable company’’ is one
                                                      entity’’ as having the same meaning as                  Telecommunications Carriers.’’ Under                    serving 400,000 or fewer subscribers,
                                                      the terms ‘‘small business,’’ ‘‘small                   this category, a wireline business is                   nationwide.125 According to SNL Kagan,
                                                      organization,’’ and ‘‘small governmental                small if it has 1,500 or fewer                          there are 1,258 cable operators.126 Of
                                                      jurisdiction.’’ 114 In addition, the term               employees.118 Census data for 2007                      this total, all but 10 incumbent cable
                                                      ‘‘small business’’ has the same meaning                 shows that there were 3,188 firms that                  companies are small under this size
                                                      as the term ‘‘small business concern’’                  operated for the entire year.119 Of this                standard.127 In addition, under the
                                                      under the Small Business Act.115 A                      total, 3,144 firms had fewer than 1,000                 Commission’s rules, a ‘‘small system’’ is
                                                      small business concern is one which: (1)                employees, and 44 firms had 1,000 or                    a cable system serving 15,000 or fewer
                                                      Is independently owned and operated;                    more employees.120 Therefore, under                     subscribers.128 Current Commission
                                                      (2) is not dominant in its field of                     this size standard, we estimate that the                records show 4,584 cable systems
                                                      operation; and (3) satisfies any                        majority of businesses can be                           nationwide.129 Of this total, 4,012 cable
                                                      additional criteria established by the                  considered small entities.                              systems have fewer than 20,000
                                                      SBA.116 The rule changes proposed                         31. Cable Television Distribution                     subscribers, and 572 systems have
                                                      herein will directly affect small                       Services. Since 2007, these services                    20,000 subscribers or more, based on the
                                                      television broadcast stations and small                 have been defined within the broad                      same records. Thus, under this
                                                      MVPD systems, which include cable                       economic census category of Wired                       standard, we estimate that most cable
                                                      system operators and satellite carriers.                Telecommunications Carriers, which                      systems are small.
                                                      Below, we provide a description of such                 category is defined above.121 The SBA                     33. Cable System Operators (Telecom
                                                      small entities, as well as an estimate of               has developed a small business size                     Act Standard). The Communications
                                                      the number of such small entities,                      standard for this category, which is: All
                                                      where feasible.                                         such businesses having 1,500 or fewer                      124 Id. With respect to the latter 44 firms, there

                                                         30. Wired Telecommunications                         employees.122 Census data for 2007                      is no data available that shows how many operated
                                                                                                                                                                      with more than 1,500 employees.
                                                      Carriers. The North American Industry                   shows that there were 3,188 firms that                     125 47 CFR 76.901(e). The Commission
                                                      Classification System (‘‘NAICS’’) defines               operated for the entire year.123 Of this                determined that this size standard equates
                                                      ‘‘Wired Telecommunications Carriers’’                                                                           approximately to a size standard of $100 million or
                                                      as follows: ‘‘This industry comprises                      117 U.S. Census Bureau, 2012 NAICS Definitions,      less in annual revenues. Implementation of Sections
                                                                                                              ‘‘517110 Wired Telecommunications Carriers’’ at         of the Cable Television Consumer Protection and
                                                      establishments primarily engaged in                                                                             Competition Act of 1992: Rate Regulation, MM
                                                                                                              http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
                                                      operating and/or providing access to                    Examples of this category are: broadband Internet       Docket No. 92–266, MM Docket No. 93–215, Sixth
                                                      transmission facilities and infrastructure              service providers (e.g., cable, DSL); local telephone   Report and Order and Eleventh Order on
                                                                                                                                                                      Reconsideration, FCC 95–196, 60 FR 35854, July 12,
                                                      that they own and/or lease for the                      carriers (wired); cable television distribution
                                                                                                                                                                      1995.
                                                      transmission of voice, data, text, sound,               services; long-distance telephone carriers (wired);
                                                                                                                                                                         126 Data provided by SNL Kagan to Commission
                                                                                                              closed circuit television (‘‘CCTV’’) services; VoIP
                                                      and video using wired                                   service providers, using own operated wired             Staff upon request on March 25, 2014. Depending
                                                      telecommunications networks.                            telecommunications infrastructure; direct-to-home       upon the number of homes and the size of the
                                                                                                                                                                      geographic area served, cable operators use one or
                                                      Transmission facilities may be based on                 satellite system (‘‘DTH’’) services;
                                                                                                                                                                      more cable systems to provide video service. See
                                                      a single technology or a combination of                 telecommunications carriers (wired); satellite
                                                                                                              television distribution systems; and multichannel       Annual Assessment of the Status of Competition in
                                                      technologies. Establishments in this                    multipoint distribution services (‘‘MMDS’’).            the Market for Delivery of Video Programming, MB
                                                      industry use the wired                                     118 13 CFR 121.201; NAICS code 517110.               Docket No. 12–203, Fifteenth Report, FCC 13–99, at
                                                                                                                                                                      para. 24 (rel. July 22, 2013) (15th Annual
                                                      telecommunications network facilities                      119 U.S. Census Bureau, 2007 Economic Census.
                                                                                                                                                                      Competition Report).
                                                      that they operate to provide a variety of               See U.S. Census Bureau, American FactFinder,               127 SNL Kagan, U.S. Multichannel Top Cable
                                                                                                              ‘‘Information: Subject Series—Estab and Firm Size:
                                                      services, such as wired telephony                       Employment Size of Establishments for the United
                                                                                                                                                                      MSOs, http://www.snl.com/interactivex/
                                                                                                                                                                      TopCableMSOs.aspx (visited June 26, 2014). We
                                                                                                              States: 2007—2007 Economic Census,’’ NAICS code         note that when this size standard (i.e., 400,000 or
                                                        113 5 U.S.C. 603(b)(3).                               517110, Table EC0751SSSZ5; available at http://         fewer subscribers) is applied to all MVPD operators,
                                                        114 5 U.S.C. 601(6).                                  factfinder2.census.gov/faces/nav/jsf/pages/             all but 14 MVPD operators would be considered
                                                        115 5 U.S.C. 601(3) (incorporating by reference the   index.xhtml.                                            small. 15th Annual Competition Report, at paras.
                                                                                                                 120 Id. With respect to the latter 44 firms, there
                                                      definition of ‘‘small business concern’’ in 15 U.S.C.                                                           27–28 (subscriber data for DBS and Telephone
                                                      632). Pursuant to 5 U.S.C. 601(3), the statutory        is no data available that shows how many operated       MVPDs). The Commission applied this size
                                                      definition of a small business applies ‘‘unless an      with more than 1,500 employees.                         standard to MVPD operators in its implementation
                                                      agency, after consultation with the Office of              121 See also U.S. Census Bureau, 2012 NAICS
                                                                                                                                                                      of the CALM Act. See Implementation of the
                                                      Advocacy of the Small Business Administration           Definitions, ‘‘517110 Wired Telecommunications          Commercial Advertisement Loudness Mitigation
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                                                      and after opportunity for public comment,               Carriers’’ at http://www.census.gov/cgi-bin/sssd/       (CALM) Act, MB Docket No. 11–93, Report and
                                                      establishes one or more definitions of such term        naics/naicsrch.                                         Order, FCC 11–182, 77 FR 40276, July 9, 2012
                                                      which are appropriate to the activities of the agency      122 13 CFR 121.201; NAICS code 517110.               (CALM Act Report and Order) (defining a smaller
                                                      and publishes such definition(s) in the Federal            123 U.S. Census Bureau, 2007 Economic Census.        MVPD operator as one serving 400,000 or fewer
                                                      Register.’’ 5 U.S.C. 601(3).                            See U.S. Census Bureau, American FactFinder,            subscribers nationwide, as of December 31, 2011).
                                                        116 15 U.S.C. 632. Application of the statutory                                                                  128 47 CFR 76.901(c).
                                                                                                              ‘‘Information: Subject Series—Estab and Firm Size:
                                                      criteria of dominance in its field of operation and     Employment Size of Establishments for the United           129 The number of active, registered cable systems

                                                      independence are sometimes difficult to apply in        States: 2007—2007 Economic Census,’’ NAICS code         comes from the Commission’s Cable Operations and
                                                      the context of broadcast television. Accordingly, the   517110, Table EC0751SSSZ5; available at http://         Licensing System (COALS) database on July 1,
                                                      Commission’s statistical account of television          factfinder2.census.gov/faces/nav/jsf/pages/             2014. A cable system is a physical system integrated
                                                      stations may be over-inclusive.                         index.xhtml.                                            to a principal headend.



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                                                                                 Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules                                                      19605

                                                      Act of 1934, as amended, also contains                    (not mandated by any regulation), DBS                   1,000 or more employees.140 Therefore,
                                                      a size standard for small cable system                    licensees usually own and operate their                 under this size standard, the majority of
                                                      operators, which is ‘‘a cable operator                    own satellite facilities as well as                     such businesses can be considered
                                                      that, directly or through an affiliate,                   package the programming they offer to                   small. However, the data we have
                                                      serves in the aggregate fewer than 1                      their subscribers. In contrast, satellite               available as a basis for estimating the
                                                      percent of all subscribers in the United                  carriers using FSS facilities often lease               number of such small entities were
                                                      States and is not affiliated with any                     capacity from another entity that is                    gathered under a superseded SBA small
                                                      entity or entities whose gross annual                     licensed to operate the satellite used to               business size standard formerly titled
                                                      revenues in the aggregate exceed                          provide service to subscribers. These                   ‘‘Cable and Other Program
                                                      $250,000,000.’’ 130 The Commission has                    entities package their own programming                  Distribution.’’ The definition of Cable
                                                      determined that an operator serving                       and may or may not be Commission                        and Other Program Distribution
                                                      fewer than 677,000 subscribers shall be                   licensees themselves. In addition, a                    provided that a small entity is one with
                                                      deemed a small operator, if its annual                    third situation may include an entity                   $12.5 million or less in annual
                                                      revenues, when combined with the total                    using a non-U.S. licensed satellite to                  receipts.141 Currently, only two entities
                                                      annual revenues of all its affiliates, do                 provide programming to subscribers in                   provide DBS service, which requires a
                                                      not exceed $250 million in the                            the United States pursuant to a blanket                 great investment of capital for operation:
                                                      aggregate.131 Based on available data,                    earth station license.135 The                           DIRECTV and DISH Network.142 Each
                                                      we find that all but 10 incumbent cable                   Commission has concluded that the                       currently offers subscription services.
                                                      operators are small under this size                       definition of ‘‘satellite carrier’’ includes            DIRECTV and DISH Network each
                                                      standard.132 We note that the                             all three of these types of entities.136                reports annual revenues that are in
                                                      Commission neither requests nor                              35. Direct Broadcast Satellite (DBS)                 excess of the threshold for a small
                                                      collects information on whether cable                     Service. DBS service is a nationally                    business. Because DBS service requires
                                                      system operators are affiliated with                      distributed subscription service that                   significant capital, we believe it is
                                                      entities whose gross annual revenues                      delivers video and audio programming                    unlikely that a small entity as defined
                                                      exceed $250 million.133 Although it                       via satellite to a small parabolic ‘‘dish’’             by the SBA would have the financial
                                                      seems certain that some of these cable                    antenna at the subscriber’s location.                   wherewithal to become a DBS service
                                                      system operators are affiliated with                      DBS, by exception, is now included in                   provider.
                                                      entities whose gross annual revenues                      the SBA’s broad economic census                            36. Satellite Master Antenna
                                                      exceed $250,000,000, we are unable to                     category, Wired Telecommunications                      Television (SMATV) Systems, also
                                                      estimate with greater precision the                       Carriers,137 which was developed for                    known as Private Cable Operators
                                                      number of cable system operators that                     small wireline businesses. Under this                   (PCOs). SMATV systems or PCOs are
                                                      would qualify as small cable operators                    category, the SBA deems a wireline                      video distribution facilities that use
                                                      under this definition.                                    business to be small if it has 1,500 or                 closed transmission paths without using
                                                         34. Satellite Carriers. The term                       fewer employees.138 Census data for                     any public right-of-way. They acquire
                                                      ‘‘satellite carrier’’ means an entity that                2007 shows that there were 3,188 firms                  video programming and distribute it via
                                                      uses the facilities of a satellite or                     that operated for the entire year.139 Of                terrestrial wiring in urban and suburban
                                                      satellite service licensed under Part 25                  this total, 3,144 firms had fewer than                  multiple dwelling units such as
                                                      of the Commission’s rules to operate in                   1,000 employees, and 44 firms had                       apartments and condominiums, and
                                                      the Direct Broadcast Satellite (DBS)                                                                              commercial multiple tenant units such
                                                      service or Fixed-Satellite Service (FSS)                  of the Commission’s rules was eliminated in 2002        as hotels and office buildings. SMATV
                                                      frequencies.134 As a general practice                     and now both FSS and DBS satellite facilities are
                                                                                                                licensed under Part 25 of the rules. Policies and       systems or PCOs are now included in
                                                         130 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) &        Rules for the Direct Broadcast Satellite Service, FCC   the SBA’s broad economic census
                                                      nn. 1–3.
                                                                                                                02–110, 67 FR 51110, August 7, 2002; 47 CFR             category, Wired Telecommunications
                                                         131 47 CFR 76.901(f); see Public Notice, FCC
                                                                                                                25.148.                                                 Carriers,143 which was developed for
                                                                                                                   135 See, e.g., Application Of DIRECTV Enterprises,
                                                      Announces New Subscriber Count for the
                                                                                                                LLC, Request For Special Temporary Authority for
                                                                                                                                                                        small wireline businesses. Under this
                                                      Definition of Small Cable Operator, DA 01–158                                                                     category, the SBA deems a wireline
                                                      (Cable Services Bureau, Jan. 24, 2001) (establishing      the DIRECTV 5 Satellite; Application Of DIRECTV
                                                      the threshold for determining whether a cable             Enterprises, LLC, Request for Blanket Authorization     business to be small if it has 1,500 or
                                                      operator meets the definition of small cable              for 1,000,000 Receive Only Earth Stations to            fewer employees.144 Census data for
                                                                                                                Provide Direct Broadcast Satellite Service in the
                                                      operator at 677,000 subscribers and stating that this
                                                                                                                U.S. using the Canadian Authorized DIRECTV 5
                                                                                                                                                                        2007 shows that there were 3,188 firms
                                                      threshold will remain in effect for purposes of
                                                      section 76.901(f) until the Commission issues a           Satellite at the 72.5° W.L. Broadcast Satellite
                                                      superseding public notice). We note that current          Service Location, Order and Authorization, DA 04–          140 Id. With respect to the latter 44 firms, there

                                                      industry data indicates that there are approximately      2526 (Sat. Div. rel. Aug. 13, 2004).                    is no data available that shows how many operated
                                                      54 million incumbent cable video subscribers in the          136 SHVERA Significantly Viewed Report and           with more than 1,500 employees.
                                                      United States today and that this updated number          Order, at paras. 59–60.                                    141 13 CFR 121.201; NAICS code 517510 (2002).

                                                      may be considered in developing size standards in            137 This category of Wired Telecommunications           142 See 15th Annual Competition Report, at para.

                                                      a context different than section 76.901(f). NCTA,         Carriers is defined above (‘‘By exception,              27. As of June 2012, DIRECTV is the largest DBS
                                                      Industry Data, Cable’s Customer Base (June 2014),         establishments providing satellite television           operator and the second largest MVPD in the United
                                                      https://www.ncta.com/industry-data (visited June          distribution services using facilities and              States, serving approximately 19.9 million
                                                      25, 2014).                                                infrastructure that they operate are included in this   subscribers. DISH Network is the second largest
                                                         132 See SNL Kagan, U.S. Multichannel Top Cable         industry.’’). U.S. Census Bureau, 2012 NAICS            DBS operator and the third largest MVPD, serving
                                                      MSOs, http://www.snl.com/interactivex/                    Definitions, ‘‘517110 Wired Telecommunications          approximately 14.1 million subscribers. Id. at paras.
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                                                      TopCableMSOs.aspx (visited June 26, 2014).                Carriers’’ at http://www.census.gov/cgi-bin/sssd/       27, 110–11.
                                                         133 The Commission does receive such                   naics/naicsrch.                                            143 This category of Wired Telecommunications

                                                      information on a case-by-case basis if a cable               138 13 CFR 121.201; NAICS code 517110.               Carriers is defined above (‘‘By exception,
                                                      operator appeals a local franchise authority’s               139 U.S. Census Bureau, 2007 Economic Census.        establishments providing satellite television
                                                      finding that the operator does not qualify as a small     See U.S. Census Bureau, American FactFinder,            distribution services using facilities and
                                                      cable operator pursuant to § 76.901(f) of the             ‘‘Information: Subject Series—Estab and Firm Size:      infrastructure that they operate are included in this
                                                      Commission’s rules. See 47 CFR 76.901(f).                 Employment Size of Establishments for the United        industry.’’). U.S. Census Bureau, 2012 NAICS
                                                         134 The Communications Act defines the term            States: 2007—2007 Economic Census,’’ NAICS code         Definitions, ‘‘517110 Wired Telecommunications
                                                      ‘‘satellite carrier’’ by reference to the definition in   517110, Table EC0751SSSZ5; available at http://         Carriers’’ at http://www.census.gov/cgi-bin/sssd/
                                                      the copyright laws in title 17. See 47 U.S.C.             factfinder2.census.gov/faces/nav/jsf/pages/             naics/naicsrch.
                                                      340(i)(1) and 338(k)(3); 17 U.S.C.119(d)(6). Part 100     index.xhtml.                                               144 13 CFR 121.201; NAICS code 517110.




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                                                      19606                     Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules

                                                      that operated for the entire year.145 Of                statutorily recognized options for the                  Educational Broadband Service
                                                      this total, 3,144 firms had fewer than                  provision of video programming                          (EBS) 160 to transmit video programming
                                                      1,000 employees, and 44 firms had                       services by local exchange carriers.151                 to subscribers. In connection with the
                                                      1,000 or more employees.146 Therefore,                  The OVS framework provides                              1996 BRS auction, the Commission
                                                      under this size standard, the majority of               opportunities for the distribution of                   established a small business size
                                                      such businesses can be considered                       video programming other than through                    standard as an entity that had annual
                                                      small.                                                  cable systems. Because OVS operators                    average gross revenues of no more than
                                                         37. Home Satellite Dish (HSD)                        provide subscription services,152 OVS                   $40 million in the previous three
                                                      Service. HSD or the large dish segment                  falls within the SBA small business size                calendar years.161 The BRS auctions
                                                      of the satellite industry is the original               standard covering cable services, which                 resulted in 67 successful bidders
                                                      satellite-to-home service offered to                    is Wired Telecommunications                             obtaining licensing opportunities for
                                                      consumers, and involves the home                        Carriers.153 The SBA has developed a                    493 Basic Trading Areas (BTAs). Of the
                                                      reception of signals transmitted by                     small business size standard for this                   67 auction winners, 61 met the
                                                      satellites operating generally in the C-                category, which is: all such businesses                 definition of a small business. BRS also
                                                      band frequency. Unlike DBS, which                       having 1,500 or fewer employees.154                     includes licensees of stations authorized
                                                      uses small dishes, HSD antennas are                     Census data for 2007 shows that there                   prior to the auction. At this time, we
                                                      between four and eight feet in diameter                 were 3,188 firms that operated for the                  estimate that of the 61 small business
                                                      and can receive a wide range of                         entire year.155 Of this total, 3,144 firms              BRS auction winners, 48 remain small
                                                      unscrambled (free) programming and                      had fewer than 1,000 employees, and 44                  business licensees. In addition to the 48
                                                      scrambled programming purchased from                    firms had 1,000 or more employees.156                   small businesses that hold BTA
                                                      program packagers that are licensed to                  Therefore, under this size standard, we                 authorizations, there are approximately
                                                      facilitate subscribers’ receipt of video                estimate that the majority of businesses                392 incumbent BRS licensees that are
                                                      programming. Because HSD provides                       can be considered small entities. In                    considered small entities.162 After
                                                      subscription services, HSD falls within                 addition, we note that the Commission                   adding the number of small business
                                                      the SBA-recognized definition of Wired                  has certified some OVS operators, with                  auction licensees to the number of
                                                      Telecommunications Carriers.147 The                     some now providing service.157                          incumbent licensees not already
                                                      SBA has developed a small business                      Broadband service providers (‘‘BSPs’’)                  counted, we find that there are currently
                                                      size standard for this category, which is:              are currently the only significant                      approximately 440 BRS licensees that
                                                      all such businesses having 1,500 or                     holders of OVS certifications or local                  are defined as small businesses under
                                                      fewer employees.148 Census data for                     OVS franchises.158 The Commission                       either the SBA or the Commission’s
                                                      2007 shows that there were 3,188 firms                  does not have financial or employment                   rules. In 2009, the Commission
                                                      that operated for the entire year.149 Of                information regarding the entities                      conducted Auction 86, the sale of 78
                                                      this total, 3,144 firms had fewer than                  authorized to provide OVS, some of                      licenses in the BRS areas.163 The
                                                      1,000 employees, and 44 firms had                       which may not yet be operational. Thus,                 Commission offered three levels of
                                                      1,000 or more employees.150 Therefore,                  again, at least some of the OVS                         bidding credits: (i) A bidder with
                                                      under this size standard, we estimate                   operators may qualify as small entities.                attributed average annual gross revenues
                                                      that the majority of businesses can be                     39. Wireless cable systems—                          that exceed $15 million and do not
                                                      considered small entities.                              Broadband Radio Service and                             exceed $40 million for the preceding
                                                         38. Open Video Services. The open                    Educational Broadband Service.                          three years (small business) received a
                                                                                                              Wireless cable systems use the                          15 percent discount on its winning bid;
                                                      video system (OVS) framework was
                                                                                                              Broadband Radio Service (BRS) 159 and                   (ii) a bidder with attributed average
                                                      established in 1996, and is one of four
                                                                                                                                                                      annual gross revenues that exceed $3
                                                                                                                 151 47 U.S.C. 571(a)(3) through (4). See Annual
                                                        145 U.S.  Census Bureau, 2007 Economic Census.                                                                million and do not exceed $15 million
                                                                                                              Assessment of the Status of Competition in the
                                                      See U.S. Census Bureau, American FactFinder,            Market for the Delivery of Video Programming, MB
                                                                                                                                                                      for the preceding three years (very small
                                                      ‘‘Information: Subject Series—Estab and Firm Size:      Docket No. 06–189, Thirteenth Annual Report, FCC        business) received a 25 percent discount
                                                      Employment Size of Establishments for the United        07–206, 74 FR 11102, para. 135, March 16, 2009          on its winning bid; and (iii) a bidder
                                                      States: 2007—2007 Economic Census,’’ NAICS code         (Thirteenth Annual Cable Competition Report).
                                                      517110, Table EC0751SSSZ5; available at http://            152 See 47 U.S.C. 573.
                                                      factfinder2.census.gov/faces/nav/jsf/pages/                                                                     Multipoint Distribution Service (MMDS). See
                                                                                                                 153 This category of Wired Telecommunications
                                                      index.xhtml.                                                                                                    Amendment of Parts 21 and 74 of the Commission’s
                                                         146 Id. With respect to the latter 44 firms, there
                                                                                                              Carriers is defined above. See also U.S. Census         Rules with Regard to Filing Procedures in the
                                                                                                              Bureau, 2012 NAICS Definitions, ‘‘517110 Wired          Multipoint Distribution Service and in the
                                                      is no data available that shows how many operated       Telecommunications Carriers’’ at http://                Instructional Television Fixed Service and
                                                      with more than 1,500 employees.                         www.census.gov/cgi-bin/sssd/naics/naicsrch.
                                                         147 This category of Wired Telecommunications
                                                                                                                                                                      Implementation of Section 309(j) of the
                                                                                                                 154 13 CFR 121.201; NAICS code 517110.
                                                                                                                                                                      Communications Act—Competitive Bidding, MM
                                                      Carriers is defined above (‘‘By exception,                 155 U.S. Census Bureau, 2007 Economic Census.        Docket No. 94–131, PP Docket No. 93–253, Report
                                                      establishments providing satellite television           See U.S. Census Bureau, American FactFinder,            and Order, FCC 95–230, 60 FR 36524, para. 7, Jul.
                                                      distribution services using facilities and              ‘‘Information: Subject Series—Estab and Firm Size:      17, 1995.
                                                      infrastructure that they operate are included in this   Employment Size of Establishments for the United           160 EBS was previously referred to as the
                                                      industry.’’). U.S. Census Bureau, 2012 NAICS            States: 2007—2007 Economic Census,’’ NAICS code         Instructional Television Fixed Service (ITFS). See
                                                      Definitions, ‘‘517110 Wired Telecommunications          517110, Table EC0751SSSZ5; available at http://         id.
                                                      Carriers’’ at http://www.census.gov/cgi-bin/sssd/       factfinder2.census.gov/faces/nav/jsf/pages/                161 47 CFR 21.961(b)(1).
                                                      naics/naicsrch.                                         index.xhtml.                                               162 47 U.S.C. 309(j). Hundreds of stations were
                                                         148 13 CFR 121.201; NAICS code 517110.                  156 Id. With respect to the latter 44 firms, there
                                                                                                                                                                      licensed to incumbent MDS licensees prior to
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                                                         149 U.S. Census Bureau, 2007 Economic Census.        is no data available that shows how many operated       implementation of section 309(j) of the
                                                      See U.S. Census Bureau, American FactFinder,            with more than 1,500 employees.                         Communications Act of 1934, 47 U.S.C. 309(j). For
                                                      ‘‘Information: Subject Series—Estab and Firm Size:         157 A list of OVS certifications may be found at
                                                                                                                                                                      these pre-auction licenses, the applicable standard
                                                      Employment Size of Establishments for the United        http://www.fcc.gov/mb/ovs/csovscer.html.                is SBA’s small business size standard of 1,500 or
                                                      States: 2007—2007 Economic Census,’’ NAICS code            158 See Thirteenth Annual Cable Competition          fewer employees.
                                                      517110, Table EC0751SSSZ5; available at http://         Report, at para. 135. BSPs are newer businesses that       163 Auction of Broadband Radio Service (BRS)
                                                      factfinder2.census.gov/faces/nav/jsf/pages/             are building state-of-the-art, facilities-based         Licenses, Scheduled for October 27, 2009, Notice
                                                      index.xhtml.                                            networks to provide video, voice, and data services     and Filing Requirements, Minimum Opening Bids,
                                                         150 Id. With respect to the latter 44 firms, there   over a single network.                                  Upfront Payments, and Other Procedures for
                                                      is no data available that shows how many operated          159 BRS was previously referred to as Multipoint     Auction 86, AU Docket No. 09–56, Public Notice,
                                                      with more than 1,500 employees.                         Distribution Service (MDS) and Multichannel             DA 09–1376 (WTB rel. Jun. 26, 2009).



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                                                                               Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules                                                      19607

                                                      with attributed average annual gross                       41. Incumbent Local Exchange                         determinations in other, non-RFA
                                                      revenues that do not exceed $3 million                  Carriers (ILECs). Neither the                           contexts.
                                                      for the preceding three years                           Commission nor the SBA has developed                       43. Competitive Local Exchange
                                                      (entrepreneur) received a 35 percent                    a small business size standard                          Carriers (CLECs), Competitive Access
                                                      discount on its winning bid.164 Auction                 specifically for incumbent local                        Providers (CAPs), Shared-Tenant
                                                      86 concluded in 2009 with the sale of                   exchange services. ILECs are included                   Service Providers, and Other Local
                                                      61 licenses.165 Of the 10 winning                       in the SBA’s economic census category,                  Service Providers. Neither the
                                                      bidders, two bidders that claimed small                 Wired Telecommunications Carriers.172                   Commission nor the SBA has developed
                                                      business status won four licenses; one                                                                          a small business size standard
                                                                                                              Under this category, the SBA deems a
                                                      bidder that claimed very small business                                                                         specifically for these service providers.
                                                                                                              wireline business to be small if it has
                                                      status won three licenses; and two                                                                              These entities are included in the SBA’s
                                                                                                              1,500 or fewer employees.173 Census                     economic census category, Wired
                                                      bidders that claimed entrepreneur status                data for 2007 shows that there were
                                                      won six licenses.                                                                                               Telecommunications Carriers.178 Under
                                                                                                              3,188 firms that operated for the entire                this category, the SBA deems a wireline
                                                         40. In addition, the SBA’s placement
                                                                                                              year.174 Of this total, 3,144 firms had                 business to be small if it has 1,500 or
                                                      of Cable Television Distribution
                                                      Services in the category of Wired                       fewer than 1,000 employees, and 44                      fewer employees.179 Census data for
                                                      Telecommunications Carriers is                          firms had 1,000 or more employees.175                   2007 shows that there were 3,188 firms
                                                      applicable to cable-based Educational                   Therefore, under this size standard, the                that operated for the entire year.180 Of
                                                      Broadcasting Services. Since 2007, these                majority of such businesses can be                      this total, 3,144 firms had fewer than
                                                      services have been defined within the                   considered small.                                       1,000 employees, and 44 firms had
                                                      broad economic census category of                          42. Small Incumbent Local Exchange                   1,000 or more employees.181 Therefore,
                                                      Wired Telecommunications Carriers,166                   Carriers. We have included small                        under this size standard, the majority of
                                                      which was developed for small wireline                  incumbent local exchange carriers in                    such businesses can be considered
                                                      businesses. The SBA has developed a                     this present RFA analysis. A ‘‘small                    small.
                                                      small business size standard for this                                                                              44. Television Broadcasting. This
                                                                                                              business’’ under the RFA is one that,
                                                      category, which is: all such businesses                                                                         economic census category ‘‘comprises
                                                                                                              inter alia, meets the pertinent small
                                                      having 1,500 or fewer employees.167                                                                             establishments primarily engaged in
                                                                                                              business size standard (e.g., a telephone               broadcasting images together with
                                                      Census data for 2007 shows that there                   communications business having 1,500
                                                      were 3,188 firms that operated for the                                                                          sound.’’ 182 The SBA has created the
                                                                                                              or fewer employees), and ‘‘is not                       following small business size standard
                                                      entire year.168 Of this total, 3,144 firms              dominant in its field of operation.’’ 176
                                                      had fewer than 1,000 employees, and 44                                                                          for such businesses: those having $38.5
                                                                                                              The SBA’s Office of Advocacy contends                   million or less in annual receipts.183
                                                      firms had 1,000 or more employees.169
                                                                                                              that, for RFA purposes, small incumbent                 The 2007 U.S. Census indicates that 808
                                                      Therefore, under this size standard, we
                                                                                                              local exchange carriers are not dominant                firms in this category operated in that
                                                      estimate that the majority of businesses
                                                                                                              in their field of operation because any                 year. Of that number, 709 had annual
                                                      can be considered small entities. In
                                                                                                              such dominance is not ‘‘national’’ in                   receipts of $25,000,000 or less, and 99
                                                      addition to Census data, the
                                                      Commission’s internal records indicate                  scope.177 We have therefore included                    had annual receipts of more than
                                                      that as of September 2012, there are                    small incumbent local exchange carriers                 $25,000,000.184 Because the Census has
                                                      2,241 active EBS licenses.170 The                       in this RFA analysis, although we
                                                      Commission estimates that of these                      emphasize that this RFA action has no                      178 This category of Wired Telecommunications

                                                                                                              effect on Commission analyses and                       Carriers is defined above. See also U.S. Census
                                                      2,241 licenses, the majority are held by                                                                        Bureau, 2012 NAICS Definitions, ‘‘517110 Wired
                                                      non-profit educational institutions and                                                                         Telecommunications Carriers’’ at http://
                                                      school districts, which are by statute                  small governmental jurisdictions (cities, counties,     www.census.gov/cgi-bin/sssd/naics/naicsrch.
                                                                                                              towns, townships, villages, school districts, and          179 13 CFR 121.201; NAICS code 517110.
                                                      defined as small businesses.171                         special districts with populations of fewer than           180 U.S. Census Bureau, 2007 Economic Census.
                                                                                                              50,000). 5 U.S.C. 601(4) through (6).                   See U.S. Census Bureau, American FactFinder,
                                                        164 Id.  at 8296.                                        172 This category of Wired Telecommunications
                                                                                                                                                                      ‘‘Information: Subject Series—Estab and Firm Size:
                                                        165 Auction   of Broadband Radio Service Licenses     Carriers is defined above. See also U.S. Census         Employment Size of Establishments for the United
                                                      Closes, Winning Bidders Announced for Auction 86,       Bureau, 2012 NAICS Definitions, ‘‘517110 Wired          States: 2007—2007 Economic Census,’’ NAICS code
                                                      Down Payments Due November 23, 2009, Final              Telecommunications Carriers’’ at http://                517110, Table EC0751SSSZ5; available at http://
                                                      Payments Due December 8, 2009, Ten-Day Petition         www.census.gov/cgi-bin/sssd/naics/naicsrch.             factfinder2.census.gov/faces/nav/jsf/pages/
                                                      to Deny Period, Public Notice, DA 09–2378 (WTB             173 13 CFR 121.201; NAICS code 517110.               index.xhtml.
                                                      rel. Nov. 6, 2009.                                         174 U.S. Census Bureau, 2007 Economic Census.           181 Id. With respect to the latter 44 firms, there
                                                         166 This category of Wired Telecommunications
                                                                                                              See U.S. Census Bureau, American FactFinder,            is no data available that shows how many operated
                                                      Carriers is defined above. See also U.S. Census         ‘‘Information: Subject Series—Estab and Firm Size:      with more than 1,500 employees.
                                                      Bureau, 2012 NAICS Definitions, ‘‘517110 Wired          Employment Size of Establishments for the United           182 U.S. Census Bureau, 2012 NAICS Definitions,
                                                      Telecommunications Carriers’’ at http://                States: 2007—2007 Economic Census,’’ NAICS code         ‘‘515120 Television Broadcasting,’’ at http://
                                                      www.census.gov/cgi-bin/sssd/naics/naicsrch.             517110, Table EC0751SSSZ5; available at http://         www.census.gov/cgi-bin/sssd/naics/naicsrch. This
                                                         167 13 CFR 121.201; NAICS code 517110.
                                                                                                              factfinder2.census.gov/faces/nav/jsf/pages/             category description continues, ‘‘These
                                                         168 U.S. Census Bureau, 2007 Economic Census.        index.xhtml.                                            establishments operate television broadcasting
                                                      See U.S. Census Bureau, American FactFinder,               175 Id. With respect to the latter 44 firms, there   studios and facilities for the programming and
                                                      ‘‘Information: Subject Series—Estab and Firm Size:      is no data available that shows how many operated       transmission of programs to the public. These
                                                      Employment Size of Establishments for the United        with more than 1,500 employees.                         establishments also produce or transmit visual
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                                                      States: 2007—2007 Economic Census,’’ NAICS code            176 15 U.S.C. 632.                                   programming to affiliated broadcast television
                                                      517110, Table EC0751SSSZ5; available at http://            177 Letter from Jere W. Glover, Chief Counsel for    stations, which in turn broadcast the programs to
                                                      factfinder2.census.gov/faces/nav/jsf/pages/             Advocacy, SBA, to William E. Kennard, Chairman,         the public on a predetermined schedule.
                                                      index.xhtml.                                            FCC (May 27, 1999). The Small Business Act              Programming may originate in their own studios,
                                                         169 Id. With respect to the latter 44 firms, there                                                           from an affiliated network, or from external
                                                                                                              contains a definition of ‘‘small-business concern,’’
                                                      is no data available that shows how many operated       which the RFA incorporates into its own definition      sources.’’
                                                      with more than 1,500 employees.                         of ‘‘small business.’’ See 15 U.S.C. 632(a) (Small         183 13 CFR 121.201; 2012 NAICS code 515120.
                                                         170 http://wireless2.fcc.gov/UlsApp/UlsSearch/
                                                                                                              Business Act); 5 U.S.C. 601(3) (RFA). SBA                  184 U.S. Census Bureau, Table No. EC0751SSSZ4,
                                                      results.jsp.                                            regulations interpret ‘‘small business concern’’ to     Information: Subject Series—Establishment and
                                                         171 The term ‘‘small entity’’ within SBREFA          include the concept of dominance on a national          Firm Size: Receipts Size of Firms for the United
                                                      applies to small organizations (non-profits) and to     basis. See 13 CFR 121.102(b).                                                                       Continued




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                                                      19608                    Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules

                                                      no additional classifications that could                licensees in these television services. As                5. Steps Taken To Minimize Significant
                                                      serve as a basis for determining the                    noted above, the SBA has created the                      Economic Impact on Small Entities, and
                                                      number of stations whose receipts                       following small business size standard                    Significant Alternatives Considered
                                                      exceeded $38.5 million in that year, we                 for this category: those having $38.5                        49. The RFA requires an agency to
                                                      conclude that the majority of television                million or less in annual receipts.189                    describe any significant alternatives that
                                                      broadcast stations were small under the                 The Commission has estimated the                          it has considered in reaching its
                                                      applicable SBA size standard.                           number of licensed Class A television                     proposed approach, which may include
                                                         45. Apart from the U.S. Census, the                  stations to be 431.190 The Commission                     the following four alternatives (among
                                                      Commission has estimated the number                                                                               others): (1) the establishment of
                                                                                                              has also estimated the number of
                                                      of licensed commercial television                                                                                 differing compliance or reporting
                                                                                                              licensed LPTV stations to be 2,003.191
                                                      stations to be 1,390 stations.185 Of this                                                                         requirements or timetables that take into
                                                      total, 1,221 stations (or about 88                      Given the nature of these services, we
                                                                                                              will presume that these licensees                         account the resources available to small
                                                      percent) had revenues of $38.5 million                                                                            entities; (2) the clarification,
                                                      or less, according to Commission staff                  qualify as small entities under the SBA
                                                                                                              definition.                                               consolidation, or simplification of
                                                      review of the BIA Kelsey Inc. Media                                                                               compliance or reporting requirements
                                                      Access Pro Television Database (BIA) on                 4. Description of Projected Reporting,                    under the rule for small entities; (3) the
                                                      July 2, 2014. In addition, the                          Recordkeeping, and Other Compliance                       use of performance, rather than design,
                                                      Commission has estimated the number                     Requirements                                              standards; and (4) an exemption from
                                                      of licensed noncommercial educational                                                                             coverage of the rule, or any part thereof,
                                                      (NCE) television stations to be 395.186                    48. The NPRM proposes to revise                        for small entities.193
                                                      NCE stations are non-profit, and                        section 76.59 of the rules to apply it to                    50. Consistent with the statute’s goal
                                                      therefore considered to be small                        the satellite television context, thus                    of promoting regulatory parity between
                                                      entities.187 Therefore, we estimate that                permitting commercial TV broadcast                        cable and satellite service, the NPRM
                                                      the majority of television broadcast                    stations and satellite carriers to file                   proposes to apply the existing cable
                                                      stations are small entities.                            petitions seeking to modify a                             market modification rule to the satellite
                                                         46. We note, however, that in                        commercial TV broadcast station’s local                   context. The proposed rules would not
                                                      assessing whether a business concern                                                                              change the market modification process
                                                                                                              television market for purposes of
                                                      qualifies as small under the above                                                                                currently applicable to small television
                                                                                                              satellite carriage rights. Under section
                                                      definition, business (control)                                                                                    stations and small cable systems,
                                                                                                              76.59 of the rules, commercial TV
                                                      affiliations 188 must be included. Our                                                                            although the proposed rules would for
                                                      estimate, therefore, likely overstates the              broadcast stations and cable system
                                                                                                              operators may already file such requests                  the first time allow stations to request
                                                      number of small entities that might be                                                                            market modifications for purposes of
                                                      affected by our action because the                      for market modification for purposes of
                                                                                                              cable carriage rights. Consistent with the                satellite carriage. Small TV stations that
                                                      revenue figure on which it is based does                                                                          choose to file satellite market
                                                      not include or aggregate revenues from                  current cable requirement in section
                                                                                                                                                                        modification petitions must comply
                                                      affiliated companies. In addition, an                   76.59, the proposed rules would require
                                                                                                                                                                        with the associated filing and
                                                      element of the definition of ‘‘small                    commercial TV broadcast stations and                      evidentiary requirements; however, the
                                                      business’’ is that the entity not be                    satellite carriers to file market                         filing of such petitions is voluntary. In
                                                      dominant in its field of operation. We                  modification requests and/or responsive                   addition, small TV stations may want to
                                                      are unable at this time to define or                    pleadings in accordance with the                          respond to a petition to modify its
                                                      quantify the criteria that would                        procedures for filing Special Relief                      market (or the market of a competitor
                                                      establish whether a specific television                 petitions in section 76.7 of the rules.192                station) filed by a satellite carrier or a
                                                      station is dominant in its field of                     Consistent with the current cable                         competitor station; however, there are
                                                      operation. Accordingly, the estimate of                 requirement in section 76.59, the                         no standardized evidentiary
                                                      small businesses to which rules may                     proposed rules would require                              requirements associated with such
                                                      apply does not exclude any television                   commercial TV broadcast stations and                      responsive pleadings. Through a market
                                                      station from the definition of a small                  satellite carriers to provide specific                    modification process, a small TV station
                                                      business on this basis and is therefore                 forms of evidence to support market                       may gain or lose carriage rights with
                                                      possibly over-inclusive to that extent.                 modification petitions, should they                       respect to a particular community,
                                                         47. Class A TV and LPTV Stations.                    chose to file such petitions. The                         based on the five statutory factors, to
                                                      The same SBA definition that applies to                                                                           better reflect localism.194 We do not
                                                                                                              proposed rules would also require a
                                                      television broadcast stations would
                                                                                                              satellite carrier to provide specific
                                                      apply to licensees of Class A television                                                                            193 5 U.S.C. 603(c)(1) through (c)(4).
                                                                                                              evidence to demonstrate its claim that
                                                      stations and low power television                                                                                   194 Section 338(l) of the Act provides that, in
                                                      (LPTV) stations, as well as to potential                satellite carriage resulting from a market                deciding requests for market modifications, the
                                                                                                              modification would be technically or                      Commission must afford particular attention to the
                                                      States: 2007 (515120), http://factfinder2.census.gov/   economically infeasible. The NPRM                         value of localism by taking into account the
                                                                                                                                                                        following five factors: (1) Whether the station, or
                                                      faces/tableservices/jsf/pages/productview.xhtml?        does not otherwise propose any new                        other stations located in the same area—(a) have
                                                      pid=ECN_2007_US_51SSSZ4&prodType=table.                 reporting, recordkeeping or other
                                                        185 See Broadcast Station Totals as of December
                                                                                                                                                                        been historically carried on the cable system or
                                                                                                              compliance requirements.                                  systems within such community; and (b) have been
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                                                      31, 2014, Press Release (MB rel. Jan. 7, 2015)                                                                    historically carried on the satellite carrier or carriers
                                                      (Broadcast Station Totals) at http://                                                                             serving such community; (2) whether the television
                                                      hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-                                                                   station provides coverage or other local service to
                                                      331381A1.pdf.                                             189 13  CFR 121.201; NAICS code 515120.                 such community; (3) whether modifying the local
                                                        186 See Broadcast Station Totals, supra.
                                                                                                                190 See  Broadcast Station Totals, supra.               market of the television station would promote
                                                        187 See generally 5 U.S.C. 601(4), (6).
                                                                                                                 191 See Broadcast Station Totals, supra.               consumers’ access to television broadcast station
                                                        188 ‘‘[Business concerns] are affiliates of each                                                                signals that originate in their State of residence; (4)
                                                                                                                 192 Broadcasters and satellite carriers that want to
                                                      other when one concern controls or has the power                                                                  whether any other television station that is eligible
                                                      to control the other or a third party or parties        oppose market modification requests would need to         to be carried by a satellite carrier in such
                                                      controls or has to power to control both.’’ 13 CFR      file responsive pleadings in accordance with 47           community in fulfillment of the requirements of
                                                      21.103(a)(1).                                           CFR 76.7.                                                 this section provides news coverage of issues of



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                                                                                Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules                                                      19609

                                                      have data to measure whether small TV                   practical utility; (b) the accuracy of the                of the STELA Reauthorization Act of
                                                      stations on the whole are more or less                  Commission’s burden estimates; (c)                        2014 (STELAR), Public Law 113–200,
                                                      likely to benefit from market                           ways to enhance the quality, utility, and                 128 Stat. 2059 (2014), and sections 1,
                                                      modifications, so we invite small TV                    clarity of the information collected; and                 4(i), 303(r), 338 and 614 of the
                                                      stations to comment on this issue. In                   (d) ways to minimize the burden of the                    Communications Act of 1934, as
                                                      addition, we invite comment on                          collection of information on the                          amended, 47 U.S.C. 151, 154(i), 303(r),
                                                      whether there are any alternatives we                   respondents, including the use of                         338 and 534.
                                                      should consider to the Commission’s                     automated collection techniques or                           Total Annual Burden: 976 hours.
                                                      proposed implementation of section 102                  other forms of information                                   Total Annual Costs: $1,277,300.
                                                      of the STELAR that would minimize                       technology.198 In addition, we seek                          Nature and Extent of Confidentiality:
                                                      any adverse impact on small TV                          specific comment on how we might                          There is no assurance of confidentiality
                                                      stations, but which are consistent with                 ‘‘further reduce the information                          provided to respondents.
                                                      the statute and its goals, such as                      collection burden for small business                         Privacy Impact Assessment: No
                                                      promoting localism and regulatory                       concerns with fewer than 25                               impact(s).
                                                      parity.                                                 employees,’’ pursuant to the Small                           Needs and Uses: On March 26, 2015,
                                                         51. The proposed rules, for the first                Business Paperwork Relief Act of                          the Commission released a Notice of
                                                      time, would allow satellite carriers to                 2002.199                                                  Proposed Rulemaking (NPRM), FCC 15–
                                                      request market modifications. As                           55. To view or obtain a copy of this                   34, in MB Docket No. 15–71, proposing
                                                      previously discussed, only two                          information collection request (ICR)                      satellite television market modification
                                                      entities—DIRECTV and DISH                               submitted to OMB: (1) Go to this OMB/                     rules to implement section 102 of the
                                                      Network—provide direct broadcast                        GSA Web page: http://www.reginfo.gov/                     Satellite Television Extension and
                                                      satellite (DBS) service, which requires a               public/do/PRAMain, (2) look for the                       Localism Act Reauthorization Act of
                                                      great investment of capital for operation.              section of the Web page called                            2014 (STELAR). To implement section
                                                      As noted in section C of this IRFA,                     ‘‘Currently Under Review,’’ (3) click on                  102 of the STELAR, the NPRM proposes
                                                      neither one of these two entities qualify               the downward-pointing arrow in the                        to revise 47 CFR 76.59 of the rules to
                                                      as a small entity and small businesses                  ‘‘Select Agency’’ box below the                           apply it to the satellite television
                                                      do not generally have the financial                     ‘‘Currently Under Review’’ heading, (4)                   context, thus permitting commercial TV
                                                      ability to become DBS licensees because                 select ‘‘Federal Communications                           broadcast stations and satellite carriers
                                                      of the high implementation costs                        Commission’’ from the list of agencies                    to file petitions seeking to modify a
                                                      associated with satellite services.195                  presented in the ‘‘Select Agency’’ box,                   commercial TV broadcast station’s local
                                                                                                              (5) click the ‘‘Submit’’ button to the                    television market for purposes of
                                                      6. Federal Rules That May Duplicate,                                                                              satellite carriage rights. Under 47 CFR
                                                      Overlap, or Conflict With the Proposed                  right of the ‘‘Select Agency’’ box, and (6)
                                                                                                              when the list of FCC ICRs currently                       76.59 of the rules, commercial TV
                                                      Rule                                                                                                              broadcast stations and cable system
                                                                                                              under review appears, look for the OMB
                                                         52. None.                                            control number of this ICR as shown in                    operators may already file such requests
                                                                                                              the Supplementary Information section                     for market modification for purposes of
                                                      B. Initial Paperwork Reduction Act of                                                                             cable carriage rights.
                                                      1995 Analysis                                           below (or its title if there is no OMB
                                                                                                              control number) and then click on the                     C. Ex Parte Rules
                                                        53. This document contains proposed                   ICR Reference Number. A copy of the
                                                      information collection requirements.196                                                                              56. The proceeding this Notice of
                                                                                                              FCC submission to OMB will be                             Proposed Rulemaking initiates shall be
                                                      The Commission, as part of its                          displayed.
                                                      continuing effort to reduce paperwork                                                                             treated as a ‘‘permit-but-disclose’’
                                                                                                                 OMB Control Number: 3060–0546.                         proceeding in accordance with the
                                                      burdens, invites the general public and                    Title: Section 76.59, Market
                                                      the Office of Management and Budget                                                                               Commission’s ex parte rules.200 Ex parte
                                                                                                              Modification of Broadcast Television
                                                      (OMB) to comment on the information                                                                               presentations are permissible if
                                                                                                              Stations for Purposes of the Cable and
                                                      collection requirements contained in                                                                              disclosed in accordance with
                                                                                                              Satellite Mandatory Television
                                                      this document, as required by the                                                                                 Commission rules, except during the
                                                                                                              Broadcast Signal Carriage Rules.
                                                      Paperwork Reduction Act of 1995                                                                                   Sunshine Agenda period when
                                                                                                                 Form Number: Not applicable.
                                                      (PRA).197                                                                                                         presentations, ex parte or otherwise, are
                                                                                                                 Type of Review: Revision of a
                                                        54. Public and agency comments are                                                                              generally prohibited. Persons making ex
                                                                                                              currently approved collection.
                                                      due June 12, 2015. Comments should                                                                                parte presentations must file a copy of
                                                                                                                 Respondents: Business or other for-
                                                      address: (a) Whether the proposed                                                                                 any written presentation or a
                                                                                                              profit entities.
                                                      collection of information is necessary                                                                            memorandum summarizing any oral
                                                                                                                 Number of Respondents and
                                                      for the proper performance of the                                                                                 presentation within two business days
                                                                                                              Responses: 80 respondents and 100
                                                      functions of the Commission, including                                                                            after the presentation (unless a different
                                                                                                              responses.
                                                      whether the information shall have                                                                                deadline applicable to the Sunshine
                                                                                                                 Estimated Time Per Response: 4 to 40
                                                                                                                                                                        period applies). Persons making oral ex
                                                                                                              hours.
                                                      concern to such community or provides carriage or                                                                 parte presentations are reminded that
                                                      coverage of sporting and other events of interest to       Frequency of Response: On occasion
                                                                                                                                                                        memoranda summarizing the
                                                      the community; and (5) evidence of viewing              reporting requirement.
                                                                                                                                                                        presentation must (1) list all persons
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                                                      patterns in households that subscribe and do not           Obligation to Respond: Required to
                                                      subscribe to the services offered by multichannel                                                                 attending or otherwise participating in
                                                                                                              obtain or retain benefits. Statutory
                                                      video programming distributors within the areas                                                                   the meeting at which the ex parte
                                                      served by such multichannel video programming           authority for this collection of
                                                                                                                                                                        presentation was made, and (2)
                                                      distributors in such community. 47 U.S.C.               information is contained in section 102
                                                      338(l)(2)(B)(i) through (v).
                                                                                                                                                                        summarize all data presented and
                                                        195 See IRFA para. 10.                                  198 See 44 U.S.C. 3506(c)(2).
                                                                                                                                                                        arguments made during the
                                                        196 See OMB Control Number 3060–0546.                   199 The Small Business Paperwork Relief Act of          presentation. Memoranda must contain
                                                        197 The Paperwork Reduction Act of 1995 (PRA),        2002 (SBPRA), Public Law 107–198, 116 Stat 729
                                                      Public Law 104–13, 109 Stat 163 (1995) (codified        (2002) (codified in Chapter 35 of title 44 U.S.C.); see     200 See 47 CFR 1.1206 (Permit-but-disclose

                                                      in Chapter 35 of title 44 U.S.C.).                      44 U.S.C. 3506(c)(4).                                     proceedings); see also id. §§ 1.1200 et seq.



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                                                      19610                    Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules

                                                      a summary of the substance of the ex                    Commission’s Secretary, Office of the                    62. It is further ordered that the
                                                      parte presentation and not merely a                     Secretary, Federal Communications                      Commission’s Consumer and
                                                      listing of the subjects discussed. More                 Commission.                                            Governmental Affairs Bureau, Reference
                                                      than a one or two sentence description                    D All hand-delivered or messenger-                   Information Center, SHALL SEND a
                                                      of the views and arguments presented is                 delivered paper filings for the                        copy of this Notice of Proposed
                                                      generally required. If the presentation                 Commission’s Secretary must be                         Rulemaking, including the Initial
                                                      consisted in whole or in part of the                    delivered to FCC Headquarters at 445                   Regulatory Flexibility Analysis, to the
                                                      presentation of data or arguments                       12th St. SW., Room TW–A325,                            Chief Counsel for Advocacy of the Small
                                                      already reflected in the presenter’s                    Washington, DC 20554. The filing hours                 Business Administration.
                                                      written comments, memoranda or other                    are 8:00 a.m. to 7:00 p.m. All hand
                                                                                                                                                                     List of Subjects in 47 CFR Part 76
                                                      filings in the proceeding, the presenter                deliveries must be held together with
                                                      may provide citations to such data or                   rubber bands or fasteners. Any                           Cable television, Satellite television,
                                                      arguments in his or her prior comments,                 envelopes and boxes must be disposed                   Broadcast television.
                                                      memoranda, or other filings (specifying                 of before entering the building.                       Federal Communications Commission.
                                                      the relevant page and/or paragraph                        D Commercial overnight mail (other                   Marlene H. Dortch,
                                                      numbers where such data or arguments                    than U.S. Postal Service Express Mail                  Secretary.
                                                      can be found) in lieu of summarizing                    and Priority Mail) must be sent to 9300
                                                      them in the memorandum. Documents                       East Hampton Drive, Capitol Heights,                   Proposed Rules
                                                      shown or given to Commission staff                      MD 20743.                                                For the reasons discussed in the
                                                      during ex parte meetings are deemed to                    D U.S. Postal Service first-class,                   preamble, the Federal Communications
                                                      be written ex parte presentations and                   Express, and Priority mail must be                     Commission proposes to amend 47 CFR
                                                      must be filed consistent with section                   addressed to 445 12th Street SW.,                      part 76 as follows:
                                                      1.1206(b) of the rules. In proceedings                  Washington DC 20554.
                                                      governed by section 1.49(f) of the rules                  58. People with Disabilities: To                     PART 76—MULTICHANNEL VIDEO
                                                      or for which the Commission has made                    request materials in accessible formats                AND CABLE TELEVISION SERVICE
                                                      available a method of electronic filing,                for people with disabilities (braille,
                                                      written ex parte presentations and                      large print, electronic files, audio                   ■ 1. The authority citation for Part 76
                                                      memoranda summarizing oral ex parte                     format), send an email to fcc504@fcc.gov               continues to read as follows:
                                                      presentations, and all attachments                      or call the Consumer & Governmental                      Authority: 47 U.S.C. 151, 152, 153, 154,
                                                      thereto, must be filed through the                      Affairs Bureau at 202–418–0530 (voice),                301, 302, 302a, 303, 303a, 307, 308, 309, 312,
                                                      electronic comment filing system                        202–418–0432 (tty).                                    315, 317, 325, 338, 339, 340, 341, 503, 521,
                                                      available for that proceeding, and must                   59. Availability of Documents.                       522, 531, 532, 534, 535, 536, 537, 543, 544,
                                                      be filed in their native format (e.g., .doc,            Comments and reply comments will be                    544a, 545, 548, 549, 552, 554, 556, 558, 560,
                                                                                                              publically available online via ECFS.203               561, 571, 572, 573.
                                                      .xml, .ppt, searchable .pdf). Participants
                                                      in this proceeding should familiarize                   These documents will also be available                 ■ 2. Section 76.7 is amended by revising
                                                      themselves with the Commission’s ex                     for public inspection during regular                   paragraph (a)(3) to read as follows:
                                                      parte rules.                                            business hours in the FCC Reference
                                                                                                              Information Center, which is located in                § 76.7 General special relief, waiver,
                                                      D. Filing Requirements                                  Room CY–A257 at FCC Headquarters,                      enforcement, complaint, show cause,
                                                                                                                                                                     forfeiture, and declaratory ruling
                                                         57. Pursuant to sections 1.415 and                   445 12th Street SW., Washington, DC                    procedures.
                                                      1.419 of the Commission’s rules,201                     20554. The Reference Information
                                                                                                                                                                       (a) * * *
                                                      interested parties may file comments                    Center is open to the public Monday
                                                                                                                                                                       (3) Certificate of service. Petitions and
                                                      and reply comments on or before the                     through Thursday from 8:00 a.m. to 4:30
                                                                                                                                                                     Complaints shall be accompanied by a
                                                      dates indicated on the first page of this               p.m. and Friday from 8:00 a.m. to 11:30
                                                                                                                                                                     certificate of service on any cable
                                                      document. Comments may be filed                         a.m.
                                                                                                                                                                     television system operator,
                                                      using the Commission’s Electronic                         60. For additional information,
                                                                                                                                                                     multichannel video programming
                                                      Comment Filing System (ECFS).202                        contact Evan Baranoff, Evan.Baranoff@
                                                                                                                                                                     distributor, franchising authority,
                                                         D Electronic Filers: Comments may be                 fcc.gov, of the Media Bureau, Policy
                                                                                                                                                                     station licensee, permittee, or applicant,
                                                      filed electronically using the Internet by              Division, (202) 418–7142. Direct press
                                                                                                                                                                     or other interested person who is likely
                                                      accessing the ECFS: http://                             inquiries to Janice Wise at (202) 418–
                                                                                                                                                                     to be directly affected if the relief
                                                      fjallfoss.fcc.gov/ecfs2/.                               8165.
                                                                                                                                                                     requested is granted.
                                                         D Paper Filers: Parties who choose to
                                                                                                              V. Ordering Clauses                                    *      *     *     *     *
                                                      file by paper must file an original and
                                                      one copy of each filing. If more than one                 61. Accordingly, it is ordered that,                    3. Section 76.59 is amended by
                                                      docket or rulemaking number appears in                  pursuant to section 102 of the STELA                   revising paragraphs (a), (b)(1), (b)(2),
                                                      the caption of this proceeding, filers                  Reauthorization Act of 2014 (STELAR),                  (b)(5), (b)(6), and (d) and by adding new
                                                      must submit two additional copies for                   Public Law 113–200, 128 Stat. 2059                     paragraphs (e) and (f) to read as follows:
                                                      each additional docket or rulemaking                    (2014), and sections 1, 4(i), 303(r), 338              § 76.59   Modification of television markets.
                                                      number.                                                 and 614 of the Communications Act of
                                                                                                              1934, as amended, 47 U.S.C. 151, 154(i),                  (a) The Commission, following a
                                                         Filings can be sent by hand or
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                                                                                                              303(r), 338 and 534, this Notice of                    written request from a broadcast station,
                                                      messenger delivery, by commercial
                                                                                                              Proposed Rulemaking is adopted and                     cable system or satellite carrier, may
                                                      overnight courier, or by first-class or
                                                                                                              notice is hereby given of the proposals                deem that the television market, as
                                                      overnight U.S. Postal Service mail. All
                                                                                                              and tentative conclusions described in                 defined either by § 76.55(e) or § 76.66(e),
                                                      filings must be addressed to the
                                                                                                              this Notice of Proposed Rulemaking.                    of a particular commercial television
                                                        201 See
                                                                                                                                                                     broadcast station should include
                                                               47 CFR 1.415, 1419.
                                                        202 SeeElectronic Filing of Documents in                203 Documents will generally be available            additional communities within its
                                                      Rulemaking Proceedings, GC Docket No. 97–113,           electronically in ASCII, Microsoft Word, and/or        television market or exclude
                                                      Report and Order, 63 FR 24121, May 1, 1998.             Adobe Acrobat.                                         communities from such station’s


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                                                                               Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Proposed Rules                                           19611

                                                      television market. In this respect,                     § 76.66    Satellite broadcast signal carriage.        reporting procedures. It also includes
                                                      communities may be considered part of                   *      *     *     *    *                              requirements for the installation and
                                                      more than one television market.                           (d) * * *                                           operation of enhanced mobile
                                                         (b) * * *                                               (6) Carriage after a market                         transceiver units for vessel monitoring,
                                                         (1) A map or maps illustrating the                   modification. Television broadcast                     carrying observers on vessels, reporting
                                                      relevant community locations and                        stations that become eligible for                      of transshipments taking place on the
                                                      geographic features, station transmitter                mandatory carriage with respect to a                   high seas, and protection of vulnerable
                                                      sites, cable system headend or satellite                satellite carrier (pursuant to § 76.66) due            marine ecosystems. This proposed rule
                                                      carrier local receive facility locations,               to a change in the market definition (by               has been prepared to minimize
                                                      terrain features that would affect station              operation of a market modification                     duplication and to be consistent with
                                                      reception, mileage between the                          pursuant to § 76.59) may, within 30                    other established requirements.
                                                      community and the television station                    days of the effective date of the new                  DATES: Written comments must be
                                                      transmitter site, transportation routes                 definition, elect retransmission consent               received by May 13, 2015.
                                                      and any other evidence contributing to                  or mandatory carriage with respect to                  ADDRESSES: Written comments on this
                                                      the scope of the market.                                such carrier. A satellite carrier shall                action, identified by NOAA–NMFS–
                                                         (2) Noise-limited service contour                    commence carriage within 90 days of                    2015–0052, may be submitted by any of
                                                      maps (for digital stations) or Grade B                  receiving the carriage election from the               the following methods:
                                                      contour maps (for analog stations)                      television broadcast station. The                         • Electronic Submission: Submit all
                                                      delineating the station’s technical                     election must be made in accordance                    electronic public comments via the
                                                      service area and showing the location of                with the requirements in paragraph                     Federal e-Rulemaking Portal. Go to
                                                      the cable system headends or satellite                  (d)(1) of this section.                                www.regulations.gov/
                                                      carrier local receive facilities and                    *      *     *     *    *                              #!docketDetail;D=NOAA-NMFS-2015-
                                                      communities in relation to the service                     (e) Market definitions. (1) A local                 0052, click the ‘‘Comment Now!’’ icon,
                                                      areas.                                                  market, in the case of both commercial                 complete the required fields, and enter
                                                      *       *     *    *     *                              and noncommercial television broadcast                 or attach your comments. Mail: Mark
                                                         (5) Cable system or satellite carrier                stations, is the designated market area in             Wildman, Trade and Marine
                                                      channel line-up cards or other exhibits                 which a station is located, unless such                Stewardship Division, Office for
                                                      establishing historic carriage, such as                 market is amended pursuant to § 76.59,                 International Affairs and Seafood
                                                      television guide listings.                              and                                                    Inspection, NMFS, 1315 East-West
                                                                                                              *      *     *     *    *                              Highway, Silver Spring, MD 20910.
                                                         (6) Published audience data for the
                                                                                                                                                                        Comments must be submitted by one
                                                      relevant station showing its average all                Federal Communications Commission.                     of the above methods to ensure that the
                                                      day audience (i.e., the reported                        Marlene H. Dortch,                                     comments are received, documented,
                                                      audience averaged over Sunday-                          Secretary, Office of the Secretary, Office of          and considered by NMFS. Comments
                                                      Saturday, 7 a.m.–1 a.m., or an                          the Managing Director.                                 sent by any other method, to any other
                                                      equivalent time period) for both                        [FR Doc. 2015–08435 Filed 4–10–15; 8:45 am]            address or individual, or received after
                                                      multichannel video programming
                                                                                                              BILLING CODE 6712–01–P                                 the end of the comment period may not
                                                      distributor (MVPD) and non-MVPD
                                                                                                                                                                     be considered. All comments received
                                                      households or other specific audience
                                                                                                                                                                     are a part of the public record and will
                                                      indicia, such as station advertising and
                                                                                                              DEPARTMENT OF COMMERCE                                 generally be posted for public viewing
                                                      sales data or viewer contribution
                                                                                                                                                                     on www.regulations.gov without change.
                                                      records.                                                National Oceanic and Atmospheric                       All personal identifying information
                                                      *       *     *    *     *                              Administration                                         (such as name or address) submitted
                                                         (d) A cable operator or satellite carrier                                                                   voluntarily by the sender will be
                                                      shall not delete from carriage the signal               50 CFR Parts 300, 600, 660, and 665                    publicly accessible. Do not submit
                                                      of a commercial television station                                                                             confidential business information, or
                                                                                                              [Docket No. 070516126–5292–03]
                                                      during the pendency of any proceeding                                                                          otherwise sensitive or protected
                                                      pursuant to this section.                               RIN 0648–AV12                                          information. NMFS will accept
                                                         (e) A market determination under this                                                                       anonymous comments (enter ‘‘N/A’’ in
                                                      section shall not create additional                     International Affairs; High Seas                       the required fields if you wish to remain
                                                      carriage obligations for a satellite carrier            Fishing Compliance Act; Permitting                     anonymous).
                                                      if it is not technically and economically               and Monitoring of U.S. High Seas                          Written comments regarding the
                                                      feasible for such carrier to accomplish                 Fishing Vessels                                        burden-hour estimates or other aspects
                                                      such carriage by means of its satellites                AGENCY:  National Marine Fisheries                     of the collection-of-information
                                                      in operation at the time of the                         Service (NMFS), National Oceanic and                   requirements contained in this proposed
                                                      determination.                                          Atmospheric Administration (NOAA),                     rule may be submitted to Mark
                                                         (f) No modification of a commercial                  Commerce.                                              Wildman, NMFS, Office for
                                                      television broadcast station’s local                    ACTION: Proposed rule; request for
                                                                                                                                                                     International Affairs and Seafood
                                                      market pursuant to this section shall                   comments.                                              Inspection (see address above) and by
wreier-aviles on DSK5TPTVN1PROD with PROPOSALS




                                                      have any effect on the eligibility of                                                                          email to OIRA_Submission@
                                                      households in the community affected                    SUMMARY:   NMFS proposes regulatory                    omb.eop.gov or fax to (202) 395–7285.
                                                      by such modification to receive distant                 changes to improve the administration                  FOR FURTHER INFORMATION CONTACT:
                                                      signals from a satellite carrier pursuant               of the High Seas Fishing Compliance                    Mark Wildman, Trade and Marine
                                                      to 47 U.S.C. 339.                                       Act program and the monitoring of U.S.                 Stewardship Division, Office for
                                                      ■ 4. Section 76.66 is amended by adding                 fishing vessels operating on the high                  International Affairs and Seafood
                                                      a new paragraph (d)(6) and revising                     seas. The proposed rule includes, for all              Inspection, NMFS (phone 301–427–
                                                      paragraph (e)(1) introductory text to                   U.S. fishing vessels operating on the                  8386 or email mark.wildman@
                                                      read as follows:                                        high seas, adjustments to permitting and               noaa.gov).


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Document Created: 2015-12-18 11:22:32
Document Modified: 2015-12-18 11:22:32
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 May 13, 2015; reply comments are due on or before May 28, 2015. Written comments on the Paperwork Reduction Act proposed information collection requirements must be submitted by the public, Office of Management and Budget (OMB), and other interested parties on or before June 12, 2015.
ContactFor additional information on this proceeding, contact Evan Baranoff, [email protected], of the Media Bureau, Policy Division, (202) 418-2120. 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 19594 
CFR AssociatedCable Television; Satellite Television and Broadcast Television

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