80_FR_35974 80 FR 35854 - Carriage of Digital Television Broadcast Signals

80 FR 35854 - Carriage of Digital Television Broadcast Signals

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 80, Issue 120 (June 23, 2015)

Page Range35854-35858
FR Document2015-15251

The Federal Communications Commission (Commission) adopts a proposal filed jointly by the American Cable Association and the National Association of Broadcasters that modifies and extends the exemption from the requirement to carry high definition (``HD'') broadcast signals under ``material degradation'' provisions of the Communications Act of 1934, as amended (``the Act'') that the Commission granted to certain small cable systems in 2012 (``HD carriage exemption'').

Federal Register, Volume 80 Issue 120 (Tuesday, June 23, 2015)
[Federal Register Volume 80, Number 120 (Tuesday, June 23, 2015)]
[Rules and Regulations]
[Pages 35854-35858]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-15251]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 76

[CS Docket No. 98-120; FCC 15-65]


Carriage of Digital Television Broadcast Signals

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Federal Communications Commission (Commission) adopts a 
proposal filed jointly by the American Cable Association and the 
National Association of Broadcasters that modifies and extends the 
exemption from the requirement to carry high definition (``HD'') 
broadcast signals under ``material degradation'' provisions of the 
Communications Act of 1934, as amended (``the Act'') that the 
Commission granted to certain small cable systems in 2012 (``HD 
carriage exemption'').

DATES: Effective July 23, 2015, except for the requirement described in 
paragraph III.4.b of the Supplementary Information. That paragraph 
contains information collection requirements that have not been 
approved by the Office of Management and Budget (OMB). The Commission 
will publish a document in the Federal Register announcing OMB approval 
and the effective date of that paragraph.

FOR FURTHER INFORMATION CONTACT: Raelynn Remy, [email protected], 
Federal Communications Commission, Media Bureau, (202) 418-2936.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Sixth 
Report and Order, CS Docket No. 98-120, FCC 15-65, which was adopted 
and released on June 10, 2015. The full text of this document is 
available for public inspection and copying during regular business 
hours in the FCC Reference Center, Federal Communications Commission, 
445 12th Street SW., Room CY-A257, Washington, DC 20554. This document 
will also be available via ECFS at http://fjallfoss.fcc.gov/ecfs/. 
Documents will be available electronically in ASCII, Microsoft Word, 
and/or Adobe Acrobat. Alternative formats are available for people with 
disabilities (Braille, large print, electronic files, audio format), by 
sending an email to [email protected] or calling the Commission's Consumer 
and Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-
0432 (TTY).

Paperwork Reduction Act of 1995 Analysis

    This document contains new information collection requirements 
subject to the Paperwork Reduction Act of 1995, Public Law 104-13. It 
will be submitted to OMB for review under Section 3507(d) of the PRA. 
OMB, the general public, and other Federal agencies are invited to 
comment on the new information collection requirements contained in 
this proceeding. In addition, we note that pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4), we previously sought specific comment on how the 
Commission might further reduce the information collection

[[Page 35855]]

burden for small business concerns with fewer than 25 employees.

I. Introduction

    1. In this Sixth Report and Order, we adopt a proposal filed 
jointly by the American Cable Association (``ACA'') and the National 
Association of Broadcasters (``NAB'') \1\ that modifies and extends the 
exemption from the requirement to carry high definition (``HD'') 
broadcast signals under ``material degradation'' provisions of the 
Communications Act of 1934, as amended (``the Act'') \2\ that the 
Commission granted to certain small cable systems in 2012 (``HD 
carriage exemption'').\3\ As discussed below, we find that the joint 
proposal strikes a reasonable balance between the interests of 
broadcast stations in having their HD signals transmitted without 
material degradation and the technical and financial constraints that 
some small cable operators continue to experience. We set forth below a 
brief history of the HD carriage exemption and explain the basis for 
our decision.
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    \1\ See Letter from Ross Lieberman, Senior Vice President of 
Government Affairs, American Cable Association and Erin L. Dozier, 
Senior Vice President and Deputy General Counsel, National 
Association of Broadcasters, to Marlene H. Dortch, Secretary, FCC, 
in CS Docket No. 98-120 (filed May 14, 2015) (``Joint Proposal''); 
Letter from Ross Lieberman, Senior Vice President of Government 
Affairs, American Cable Association and Erin L. Dozier, Senior Vice 
President and Deputy General Counsel, National Association of 
Broadcasters, to Marlene H. Dortch, Secretary, FCC, in CS Docket No. 
98-120 (filed May 27, 2015) (clarifying two points in the joint 
proposal) (``Joint Clarification'').
    \2\ See 47 U.S.C. 534(b)(4)(A), 535(g)(2) (material degradation 
requirements relating to signals of local commercial and 
noncommercial television stations, respectively).
    \3\ See Carriage of Digital Television Broadcast Signals: 
Amendment to Part 76 of the Commission's Rules, CS Docket No. 98-
120, Fifth Report and Order, 77 FR 36178 (2012) (``Fifth Report and 
Order'').
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II. Background

    2. Sections 614(b)(4)(A) and 615(g)(2) of the Act require that 
cable operators carry signals of commercial and noncommercial broadcast 
television stations, respectively, ``without material degradation.'' In 
the context of the carriage of digital signals, the Commission has 
interpreted this requirement: (i) To prohibit cable operators from 
discriminating in their carriage between broadcast and non-broadcast 
signals; and (ii) to require cable operators to carry HD broadcast 
signals to their viewers in HD. To address concerns expressed by small 
cable operators about cost and technical capacity, the Commission in 
2008 granted a three-year exemption from the HD carriage requirement to 
certain small cable systems. In particular, the Commission applied the 
exemption to small cable systems with 2,500 or fewer subscribers that 
are not affiliated with a cable operator serving more than 10 percent 
of all MVPD subscribers, and those with an activated channel capacity 
of 552 MHz or less. In 2012, the Commission extended the HD carriage 
exemption for those cable systems until June 12, 2015.
    3. In January 2015, ACA filed a Petition for Rulemaking asking the 
Commission: (i) To commence a rulemaking proceeding to extend for an 
additional three years the HD carriage exemption; and (ii) to clarify 
that analog-only cable systems are not subject to the HD carriage 
requirement because carriage of HD signals by such systems is not 
``technically feasible'' under Section 614(b)(4)(A) of the Act. On 
March 12, 2015, the Commission issued a Fifth Further Notice of 
Proposed Rulemaking in this proceeding that, among other things, 
proposed to extend the HD carriage exemption for three more years.\4\ 
In their initial pleadings responsive to the Fifth Further Notice, 
multichannel video programming distributors (``MVPDs'') supported the 
Commission's proposal to extend the HD carriage exemption and 
broadcasters opposed it. After a series of discussions aimed at 
resolving their differences, ACA and NAB, on May 14, 2015, filed the 
joint proposal with the Commission.\5\
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    \4\ See Carriage of Digital Television Broadcast Signals: 
Amendment to Part 76 of the Commission's Rules, CS Docket No. 98-
120, Fifth Further Notice of Proposed Rulemaking, 80 FR 16347 (2015) 
(``Fifth Further Notice'').
    \5\ See Joint Proposal. See also Joint Clarification; Letter 
from Erin L. Dozier, Senior Vice President and Deputy General 
Counsel, National Association of Broadcasters, and Ross Lieberman, 
Senior Vice President of Government Affairs, American Cable 
Association, to Marlene H. Dortch, Secretary, FCC, in CS Docket No. 
98-120 (filed May 13, 2015).
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III. Discussion

    4. We conclude that it would serve the public interest to adopt the 
joint proposal put forth by ACA and NAB. Throughout the course of this 
proceeding, ACA and NAB have expressed differing views about the 
appropriate scope and duration of the HD carriage exemption, among 
other issues. We find that the compromise reached by ACA and NAB as 
reflected in the joint proposal reasonably balances the interest of 
broadcast stations in having their HD signals transmitted in HD and the 
interest of small cable operators in upgrading their systems to carry 
HD broadcast signals in a manner that is cost efficient. We note that 
no industry commenter has lodged any objection to the joint proposal. 
We, therefore, find that the public interest would be served by 
adopting ACA and NAB's joint proposal, as set forth below: \6\
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    \6\ See Joint Proposal; Joint Clarification. We need not resolve 
in this order the issue whether analog-only cable systems are 
subject to the HD carriage requirement under Section 614(b)(4)(A) of 
the Act because under the terms of the joint proposal, cable systems 
that do not offer any programming in HD, including analog-only 
systems, will be exempt from the HD carriage requirement. See Joint 
Proposal at 1. Thus, our adoption of the joint proposal renders this 
issue moot.
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    a. HD Carriage Exemption Eligibility after June 12, 2015: A small 
cable system not offering any programming in HD is exempt from the HD 
carriage requirement. Beginning December 12, 2016, a system utilizing 
the HD carriage exemption shall no longer be eligible to use it once 
the system offers any programming in HD.
    b. Notice: Beginning December 12, 2016, at the time a small cable 
system utilizing the HD carriage exemption offers any programming in 
HD, the system must give notice that it is offering HD programming to 
all broadcast stations in its market that are carried on its system.
    c. Transition for Some Systems: A cable system utilizing the HD 
carriage exemption on June 12, 2015 that does not qualify for the HD 
carriage exemption on or after June 13, 2015 must come into compliance 
by December 12, 2016. A cable system that becomes ineligible for the HD 
carriage exemption after December 12, 2016 would be expected to come 
into compliance promptly.
    d. Revisions to Definition of ``Small'' Cable System: ``Small'' 
cable systems eligible for the HD carriage exemption would be redefined 
as those: (i) Serving 1,500 (rather than 2,500) or fewer subscribers, 
and not affiliated with a cable operator serving more than 2 percent 
(rather than 10 percent) of all MVPD subscribers, or (ii) having an 
activated channel capacity of 552 MHz or less.

IV. Procedural Matters

A. Regulatory Flexibility Act

    5. Final Regulatory Flexibility Analysis. As required by the 
Regulatory Flexibility Act of 1980, as amended (``RFA'') \7\ an Initial 
Regulatory Flexibility Act Analysis (``IRFA'') was incorporated in the 
Fifth Further Notice

[[Page 35856]]

in this proceeding.\8\ The Commission sought written public comment on 
the proposals in the Fifth Further Notice, including comment on the 
IRFA. The Commission received no comments on the IRFA. This Final 
Regulatory Flexibility Act Analysis (``FRFA'') conforms to the RFA.\9\
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    \7\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (``SBREFA''), Pub. L. 104-121, Title II, 110 Stat. 847 (1996). 
The SBREFA was enacted as Title II of the Contract With America 
Advancement Act of 1996 (``CWAAA'').
    \8\ See Fifth Further Notice, Appendix.
    \9\ See 5 U.S.C. 604.
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1. Need for, and Objectives of, the Sixth Report and Order
    6. This proceeding stems from a Petition for Rulemaking filed by 
the American Cable Association in January 2015 principally requesting 
that the Commission extend the exemption from the requirement to carry 
high definition (``HD'') broadcast signals under the ``material 
degradation'' provisions of the Communications Act of 1934, as amended, 
that it granted to certain small cable systems in the 2012 Fifth Report 
and Order (``HD carriage exemption''). The HD carriage exemption will 
expire on June 12, 2015 without action by the Commission.
    7. In the accompanying Sixth Report and Order, the Commission 
adopts a proposal filed jointly by the American Cable Association 
(``ACA'') and the National Association of Broadcasters (``NAB'') that 
modifies and extends the HD carriage exemption. The joint proposal 
reflects a compromise between ACA and NAB on issues concerning, among 
other things, the appropriate scope and duration of the HD carriage 
exemption. The Sixth Report and Order concludes that the joint proposal 
strikes a reasonable balance between the interests of broadcast 
stations in having their HD signals transmitted without material 
degradation and the interests of small cable operators in upgrading 
their systems to provide HD broadcast signals in a manner that is cost 
efficient.
    8. In particular, the Sixth Report and Order adopts the following 
provisions that are set forth in the joint proposal:
     HD Carriage Exemption Eligibility after June 12, 2015: A 
small cable system not offering any programming in HD is exempt from 
the HD carriage requirement. Beginning December 12, 2016, a system 
utilizing the HD carriage exemption shall no longer be eligible to use 
it once the system offers any programming in HD.
     Notice: Beginning December 12, 2016, at the time a small 
cable system utilizing the HD carriage exemption offers any programming 
in HD, the system must give notice that it is offering HD programming 
to all broadcast stations in its market that are carried on its system.
     Transition for Some Systems: A cable system utilizing the 
HD carriage exemption on June 12, 2015 that does not qualify for the HD 
carriage exemption on or after June 13, 2015 must come into compliance 
by December 12, 2016. A cable system that becomes ineligible for the HD 
carriage exemption after December 12, 2016 would be expected to come 
into compliance promptly.
     Revisions to Definition of ``Small'' Cable System: 
``Small'' cable systems eligible for the HD carriage exemption would be 
redefined as those: (i) Serving 1,500 (rather than 2,500) or fewer 
subscribers, and not affiliated with a cable operator serving more than 
2 percent (rather than 10 percent) of all MVPD subscribers, or (ii) 
having an activated channel capacity of 552 MHz or less.
2. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA
    9. The Commission did not receive any comments in response to the 
IRFA.
3. Description and Estimate of the Number of Small Entities to Which 
the Rules Will Apply
    10. The RFA directs the Commission to provide a description of and, 
where feasible, an estimate of the number of small entities that will 
be affected by the proposed actions if adopted.\10\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \11\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\12\ A ``small business concern'' is one 
which: (1) Is independently owned and operated; (2) is not dominant in 
its field of operation; and (3) satisfies any additional criteria 
established by the Small Business Administration (SBA).\13\ The action 
taken in the accompanying Sixth Report and Order will affect small 
cable system operators and small television broadcast stations. A 
description of these small entities, as well as an estimate of the 
number of such small entities, is provided below.
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    \10\ 5 U.S.C. 603(b)(3).
    \11\ 5 U.S.C. 601(b).
    \12\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \13\ 15 U.S.C. 632.
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    11. Cable Companies and Systems. The Commission has developed its 
own small business size standards for the purpose of cable rate 
regulation. Under the Commission's rules, a ``small cable company'' is 
one serving 400,000 or fewer subscribers nationwide.\14\ Industry data 
indicate that there are currently 660 cable operators.\15\ Of this 
total, all but ten cable operators nationwide are small under this size 
standard.\16\ In addition, under the Commission's rate regulation 
rules, a ``small system'' is a cable system serving 15,000 or fewer 
subscribers.\17\ Current Commission records show 4,629 cable systems 
nationwide.\18\ Of this total, 4,057 cable systems have less than 
20,000 subscribers, and 572 systems have 20,000 or more subscribers, 
based on the same records. Thus, under this standard, we estimate that 
most cable systems are small entities.
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    \14\ 47 CFR 76.901(e).
    \15\ NCTA, Industry Data, Number of Cable Operators and Systems, 
http://www.ncta.com/Statistics.aspx (visited October 13, 2014).
    \16\ See SNL Kagan, ``Top Cable MSOs--12/12 Q''; available at 
http://www.snl.com/InteractiveX/TopCableMSOs.aspx?period=2012Q4&sortcol=subscribersbasic&sortorder=desc.
    \17\ 47 CFR 76.901(c).
    \18\ The number of active, registered cable systems comes from 
the Commission's Cable Operations and Licensing System (COALS) 
database on October 10, 2014. A cable system is a physical system 
integrated to a principal headend.
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    12. Cable System Operators (Telecom Act Standard). The 
Communications Act of 1934, as amended, also contains a size standard 
for small cable system operators, which is ``a cable operator that, 
directly or through an affiliate, serves in the aggregate fewer than 1 
percent of all subscribers in the United States and is not affiliated 
with any entity or entities whose gross annual revenues in the 
aggregate exceed $250,000,000.'' \19\ There are approximately 54 
million cable video subscribers in the United States today.\20\ 
Accordingly, an operator serving fewer than 540,000 subscribers shall 
be deemed a small operator if its annual revenues, when combined with 
the total annual revenues of all its affiliates, do not exceed $250 
million in the aggregate.\21\ Based on available data, we find that all 
but ten incumbent cable operators are small entities under this size 
standard.\22\ We note that the

[[Page 35857]]

Commission neither requests nor collects information on whether cable 
system operators are affiliated with entities whose gross annual 
revenues exceed $250 million.\23\ Although it seems certain that some 
of these cable system operators are affiliated with entities whose 
gross annual revenues exceed $250,000,000, we are unable at this time 
to estimate with greater precision the number of cable system operators 
that would qualify as small cable operators under the definition in the 
Communications Act.
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    \19\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
    \20\ See NCTA, Industry Data, Cable's Customer Base, http://www.ncta.com/industry-data (visited October 13, 2014).
    \21\ 47 CFR 76.901(f).
    \22\ See NCTA, Industry Data, Top 25 Multichannel Video Service 
Customers (2012), http://www.ncta.com/industry-data (visited Aug. 
30, 2013).
    \23\ 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 76.901(f) of the Commission's rules. See 47 CFR 
76.901(f).
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    13. Open Video Systems. The open video system (OVS) framework was 
established in 1996, and is one of four statutorily recognized options 
for the provision of video programming services by local exchange 
carriers.\24\ The OVS framework provides opportunities for the 
distribution of video programming other than through cable systems. 
Because OVS operators provide subscription services,\25\ OVS falls 
within the SBA small business size standard covering cable services, 
which is ``Wired Telecommunications Carriers.'' \26\ The SBA has 
developed a small business size standard for this category, which is: 
all such businesses having 1,500 or fewer employees.\27\ Census data 
for 2007 shows that there were 3,188 firms that operated for that 
entire year.\28\ Of this total, 2,940 firms had fewer than 100 
employees, and 248 firms had 100 or more employees.\29\ Therefore, 
under this size standard, we estimate that the majority of these 
businesses can be considered small entities.
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    \24\ 47 U.S.C. 571(a)(3)-(4).
    \25\ See 47 U.S.C. 573.
    \26\  See 13 CFR 121.201, 2012 NAICS code 517110. This category 
of Wired Telecommunications Carriers is defined in part as follows: 
``This industry comprises establishments primarily engaged in 
operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single 
technology or a combination of technologies. Establishments in this 
industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired 
telephony services, including VoIP services; wired (cable) audio and 
video programming distribution; and wired broadband Internet 
services.'' U.S. Census Bureau, 2012 NAICS Definitions, ``517110 
Wired Telecommunications Carriers,'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \27\ 13 CFR 121.201; 2012 NAICS code 517110.
    \28\ U.S. Census Bureau, 2007 Economic Census. See U.S. Census 
Bureau, American FactFinder, ``Information: Subject Series--Estab 
and Firm Size: Employment Size of Establishments for the United 
States: 2007--2007 Economic Census,'' NAICS code 517110, Table 
EC0751SSSZ5; available at http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
    \29\ Id.
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    14. Television Broadcasting. This economic Census category 
``comprises establishments primarily engaged in broadcasting images 
together with sound.'' \30\ The SBA has created the following small 
business size standard for such businesses: those having $38.5 million 
or less in annual receipts.\31\ 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.\32\ Because the Census has no additional 
classifications that could serve as a basis for determining the number 
of stations whose receipts exceeded $38.5 million in that year, we 
conclude that the majority of television broadcast stations were small 
under the applicable SBA size standard.
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    \30\ U.S. Census Bureau, 2012 NAICS Definitions, ``515120 
Television Broadcasting,'' at http://www.census.gov./cgi-bin/sssd/
naics/naicsrch.
    \31\ 13 CFR 121.201; 2012 NAICS code 515120.
    \32\ 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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    15. Apart from the U.S. Census, the Commission has estimated the 
number of licensed commercial television stations to be 1,387 
stations.\33\ 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.\34\ NCE stations are non-profit, and therefore considered to be 
small entities.\35\ Based on these data, we estimate that the majority 
of television broadcast stations are small entities.
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    \33\ See Broadcast Station Totals as of June 30, 2014, Press 
Release (MB rel. July 9, 2014) (Broadcast Station Totals) at https://apps.fcc.gov/edocs_public/attachmatch/DOC-328096A1.pdf.
    \34\ See Broadcast Station Totals, supra.
    \35\ See generally 5 U.S.C. 601(4), (6).
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    16. We note, however, that in assessing whether a business concern 
qualifies as ``small'' under the above definition, business (control) 
affiliations \36\ must be included. Because we do not include or 
aggregate revenues from affiliated companies in determining whether an 
entity meets the revenue threshold noted above, our estimate of the 
number of small entities affected is likely overstated. In addition, we 
note that one element of the definition of ``small business'' is that 
an entity not be dominant in its field of operation. We are unable at 
this time to define or quantify the criteria that would establish 
whether a specific television broadcast station is dominant in its 
field of operation. Accordingly, our estimate of small television 
stations potentially affected by the proposed rules includes those that 
could be dominant in their field of operation. For this reason, such 
estimate likely is over-inclusive.
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    \36\ ``[Business concerns] are affiliates of each other when one 
concern controls or has the power to control the other or a third 
party or parties controls or has the power to control both.'' 13 CFR 
21.103(a)(1).
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4. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities
    17. In this section, we describe the reporting, recordkeeping, and 
other compliance requirements that the Commission adopts in the Sixth 
Report and Order.
    18. Reporting Requirements. The Sixth Report and Order does not 
adopt reporting requirements.
    19. Recordkeeping Requirements. The joint proposal adopted in the 
Sixth Report and Order requires that, ``[b]eginning December 12, 2016, 
at the time a small cable system utilizing the HD carriage exemption 
offers any programming in HD, the system must give notice that it is 
offering HD programming to all broadcast stations in its market that 
are carried on its system.'' This requirement obligates certain small 
cable operators to notify broadcast stations, and thus, to make and 
keep records of such notification.
    20. Other Compliance Requirements. The joint proposal adopted in 
the Sixth Report and Order:
     Requires ``[a] cable system utilizing the HD carriage 
exemption on June 12, 2015 that does not qualify for the HD carriage 
exemption on or after June 13, 2015 [to] come into compliance [with the 
HD carriage requirement] by December 12, 2016. A cable system that 
becomes ineligible for the HD carriage exemption after December 12, 
2016 would be expected to come into compliance promptly.''
     Requires that ``[b]eginning December 12, 2016, a system 
utilizing the HD carriage exemption shall no longer be eligible to use 
it once the system offers any programming in HD.''

[[Page 35858]]

5. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered
    21. 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.\37\ We seek comment on the applicability of any of these 
alternatives to affected small entities.
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    \37\ 5 U.S.C. 603(c)(1)-(c)(4).
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    22. The HD carriage exemption, as modified in the Sixth Report and 
Order, provides continued regulatory relief to operators of certain 
small cable systems, i.e., those that (i) serve 1,500 or fewer 
subscribers and are not affiliated with a cable operator serving more 
than two percent of all MVPD subscribers; or (ii) have an activated 
channel capacity of 552 MHz or less. Although some eligible cable 
systems will no longer qualify for the exemption as a result of the 
Sixth Report and Order, the joint proposal adopted in the order gives 
such systems until December 12, 2016 to come into compliance with the 
HD carriage requirement. We note that the modifications made to the 
exemption in the Sixth Report and Order were an outgrowth of 
discussions between ACA and NAB and thus reflect the interests of both 
small cable operators and broadcasters (including small broadcasters), 
respectively. The HD carriage exemption has a positive economic impact 
on any cable system operator that takes advantage of the exemption, and 
imposes no significant burdens on small television stations.
6. Report to Congress
    23. The Commission will send a copy of this Sixth Report and Order, 
including this FRFA, in a report to be sent to Congress pursuant to the 
SBREFA.\38\ In addition, the Commission will send a copy of this Sixth 
Report and Order, including the FRFA, to the Chief Counsel for Advocacy 
of the SBA. A copy of this Sixth Report and Order and the FRFA (or 
summaries thereof) also will be published in the Federal Register.\39\
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    \38\ See id. 801(a)(1)(A).
    \39\  See id. 604(b).
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B. Paperwork Reduction Act

    24. This Sixth Report and Order contains new information collection 
requirements subject to the Paperwork Reduction Act of 1995. It will be 
submitted to the Office of Management and Budget (OMB) for review under 
Section 3507(d) of the PRA. OMB, the general public, and other Federal 
agencies are invited to comment on the new or modified information 
collection requirements contained in this proceeding. In addition, 
pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 
107-198, see 44 U.S.C. 3506(c)(4), we previously sought specific 
comment on how the Commission might further reduce the information 
collection burden for small business concerns with fewer than 25 
employees.

C. Congressional Review Act

    25. The Commission will send a copy of this Sixth Report and Order 
in a report to be sent to Congress and the Government Accountability 
Office, pursuant to the Congressional Review Act.\40\
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    \40\ See 5 U.S.C. 801(a)(1)(A).
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D. Additional Information

    26. For more information, contact Raelynn Remy, 
[email protected], Policy Division, Media Bureau, (202) 418-2936.

V. Ordering Clauses

    27. Accordingly, it is ordered that, pursuant to the authority 
found in sections 4, 303, 614, and 615 of the Communications Act of 
1934, as amended, 47 U.S.C. 154, 303, 534, and 535, this Sixth Report 
and Order is adopted and will become effective July 23, 2015, except 
that the requirement described in paragraph III.4.b of the 
Supplementary Information, which contains new or modified information 
collection requirements subject to the Paperwork Reduction Act of 1995, 
Public Law 104-13, will not become effective until the Federal 
Communications Commission publishes a notice in the Federal Register 
announcing OMB approval and the effective date of that rule.
    28. It is further ordered that, pursuant to the Congressional 
Review Act, 5 U.S.C. 801(a)(1)(A), the Commission will send a copy of 
this Sixth Report and Order in CS Docket No. 98-120 in a report to 
Congress and the Government Accountability Office.
    29. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, will send a 
copy of this Sixth Report and Order in CS Docket No. 98-120, including 
the Final Regulatory Flexibility Act Analysis, to the Chief Counsel for 
Advocacy of the Small Business Administration.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2015-15251 Filed 6-22-15; 8:45 am]
 BILLING CODE 6712-01-P



                                                35854                Federal Register / Vol. 80, No. 120 / Tuesday, June 23, 2015 / Rules and Regulations

                                                                                                                                                                                                        Date certain
                                                                                                                                                                                                          Federal
                                                                                                         Community          Effective date authorization/cancellation of     Current effective          assistance
                                                                 State and location                         No.                sale of flood insurance in community             map date                 no longer
                                                                                                                                                                                                        available in
                                                                                                                                                                                                          SFHAs

                                                     North Little Rock, City of, Pulaski Coun-                  050182      January 17, 1974, Emerg; July 16, 1980,          ......do ...............     Do.
                                                       ty.                                                                    Reg; July 6, 2015, Susp.
                                                     Pulaski County, Unincorporated Areas                       050179      March 6, 1979, Emerg; July 16, 1981, Reg;        ......do ...............     Do.
                                                                                                                              July 6, 2015, Susp.
                                                     Sherwood, City of, Pulaski County ........                 050235      February 15, 1974, Emerg; October 17,            ......do ...............     Do.
                                                                                                                              1978, Reg; July 6, 2015, Susp.
                                                     Louisiana:     Campti,      Town     of,                   220401      August 28, 1992, Emerg; July 3, 2003, Reg;       ......do ...............     Do.
                                                       Natchitoches Parish.                                                   July 6, 2015, Susp.
                                                     Clarence, Village of, Natchitoches Par-                    220130      March 8, 1976, Emerg; September 18,              ......do ...............     Do.
                                                       ish.                                                                   1987, Reg; July 6, 2015, Susp.
                                                     Goldonna, Village of, Natchitoches Par-                    220290      April 2, 1981, Emerg; June 29, 1982, Reg;        ......do ...............     Do.
                                                       ish.                                                                   July 6, 2015, Susp.
                                                     Natchez, Village of, Natchitoches Par-                     220370      September 29, 1975, Emerg; September             ......do ...............     Do.
                                                       ish.                                                                   18, 1987, Reg; July 6, 2015, Susp.
                                                     Natchitoches, City of, Natchitoches Par-                   220131      April 17, 1974, Emerg; September 18,             ......do ...............     Do.
                                                       ish.                                                                   1987, Reg; July 6, 2015, Susp.
                                                     Natchitoches Parish, Unincorporated                        220129      May 10, 1973, Emerg; September 18, 1987,         ......do ...............     Do.
                                                       Areas.                                                                 Reg; July 6, 2015, Susp.
                                                     Provencal, Village of, Natchitoches Par-                   220132      June 27, 1975, Emerg; November 1, 1992,          ......do ...............     Do.
                                                       ish..                                                                  Reg; July 6, 2015, Susp.
                                                     Robeline, Village of, Natchitoches Par-                    220133      August 11, 1975, Emerg; August 5, 1985,          ......do ...............     Do.
                                                       ish..                                                                  Reg; July 6, 2015, Susp.
                                                              Region VIII
                                                Montana:
                                                   Missoula, City of, Missoula County .......                   300049      March 14, 1975, Emerg; January 6, 1983,          ......do ...............     Do.
                                                                                                                              Reg; July 6, 2015, Susp.
                                                     Missoula County, Unincorporated Areas                      300048      January 15, 1975, Emerg; August 15, 1983,        ......do ...............     Do.
                                                                                                                              Reg; July 6, 2015, Susp.
                                                   * do = Ditto.
                                                   Code for reading third column: Emerg.—Emergency; Reg.—Regular; Susp.—Suspension.


                                                  Dated: April 22, 2015.                                  of 1934, as amended (‘‘the Act’’) that the              http://fjallfoss.fcc.gov/ecfs/. Documents
                                                Roy E. Wright,                                            Commission granted to certain small                     will be available electronically in ASCII,
                                                Deputy Associate Administrator, Federal                   cable systems in 2012 (‘‘HD carriage                    Microsoft Word, and/or Adobe Acrobat.
                                                Insurance and Mitigation Administration,                  exemption’’).                                           Alternative formats are available for
                                                Department of Homeland Security, Federal                                                                          people with disabilities (Braille, large
                                                                                                          DATES: Effective July 23, 2015, except
                                                Emergency Management Agency.
                                                                                                          for the requirement described in                        print, electronic files, audio format), by
                                                [FR Doc. 2015–15346 Filed 6–22–15; 8:45 am]
                                                                                                          paragraph III.4.b of the Supplementary                  sending an email to fcc504@fcc.gov or
                                                BILLING CODE 9110–12–P
                                                                                                          Information. That paragraph contains                    calling the Commission’s Consumer and
                                                                                                          information collection requirements that                Governmental Affairs Bureau at (202)
                                                                                                          have not been approved by the Office of                 418–0530 (voice), (202) 418–0432
                                                FEDERAL COMMUNICATIONS                                    Management and Budget (OMB). The                        (TTY).
                                                COMMISSION                                                Commission will publish a document in
                                                                                                          the Federal Register announcing OMB                     Paperwork Reduction Act of 1995
                                                47 CFR Part 76                                            approval and the effective date of that                 Analysis
                                                [CS Docket No. 98–120; FCC 15–65]                         paragraph.
                                                                                                                                                                    This document contains new
                                                                                                          FOR FURTHER INFORMATION CONTACT:
                                                Carriage of Digital Television                                                                                    information collection requirements
                                                                                                          Raelynn Remy, Raelynn.Remy@fcc.gov,
                                                Broadcast Signals                                                                                                 subject to the Paperwork Reduction Act
                                                                                                          Federal Communications Commission,
                                                                                                          Media Bureau, (202) 418–2936.                           of 1995, Public Law 104–13. It will be
                                                AGENCY:  Federal Communications                                                                                   submitted to OMB for review under
                                                Commission.                                               SUPPLEMENTARY INFORMATION: This is a
                                                                                                          summary of the Commission’s Sixth                       Section 3507(d) of the PRA. OMB, the
                                                ACTION: Final rule.                                                                                               general public, and other Federal
                                                                                                          Report and Order, CS Docket No. 98–
                                                SUMMARY:   The Federal Communications                     120, FCC 15–65, which was adopted                       agencies are invited to comment on the
                                                Commission (Commission) adopts a                          and released on June 10, 2015. The full                 new information collection
                                                proposal filed jointly by the American                    text of this document is available for                  requirements contained in this
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                                                Cable Association and the National                        public inspection and copying during                    proceeding. In addition, we note that
                                                Association of Broadcasters that                          regular business hours in the FCC                       pursuant to the Small Business
                                                modifies and extends the exemption                        Reference Center, Federal                               Paperwork Relief Act of 2002, Public
                                                from the requirement to carry high                        Communications Commission, 445 12th                     Law 107–198, see 44 U.S.C. 3506(c)(4),
                                                definition (‘‘HD’’) broadcast signals                     Street SW., Room CY–A257,                               we previously sought specific comment
                                                under ‘‘material degradation’’                            Washington, DC 20554. This document                     on how the Commission might further
                                                provisions of the Communications Act                      will also be available via ECFS at                      reduce the information collection


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                                                                     Federal Register / Vol. 80, No. 120 / Tuesday, June 23, 2015 / Rules and Regulations                                                      35855

                                                burden for small business concerns with                    cable systems. In particular, the                       any objection to the joint proposal. We,
                                                fewer than 25 employees.                                   Commission applied the exemption to                     therefore, find that the public interest
                                                                                                           small cable systems with 2,500 or fewer                 would be served by adopting ACA and
                                                I. Introduction
                                                                                                           subscribers that are not affiliated with a              NAB’s joint proposal, as set forth
                                                   1. In this Sixth Report and Order, we                   cable operator serving more than 10                     below: 6
                                                adopt a proposal filed jointly by the                      percent of all MVPD subscribers, and                       a. HD Carriage Exemption Eligibility
                                                American Cable Association (‘‘ACA’’)                       those with an activated channel                         after June 12, 2015: A small cable
                                                and the National Association of                            capacity of 552 MHz or less. In 2012, the               system not offering any programming in
                                                Broadcasters (‘‘NAB’’) 1 that modifies                     Commission extended the HD carriage                     HD is exempt from the HD carriage
                                                and extends the exemption from the                         exemption for those cable systems until                 requirement. Beginning December 12,
                                                requirement to carry high definition                       June 12, 2015.                                          2016, a system utilizing the HD carriage
                                                (‘‘HD’’) broadcast signals under                              3. In January 2015, ACA filed a                      exemption shall no longer be eligible to
                                                ‘‘material degradation’’ provisions of the                 Petition for Rulemaking asking the                      use it once the system offers any
                                                Communications Act of 1934, as                             Commission: (i) To commence a                           programming in HD.
                                                amended (‘‘the Act’’) 2 that the                           rulemaking proceeding to extend for an                     b. Notice: Beginning December 12,
                                                Commission granted to certain small                        additional three years the HD carriage                  2016, at the time a small cable system
                                                cable systems in 2012 (‘‘HD carriage                       exemption; and (ii) to clarify that                     utilizing the HD carriage exemption
                                                exemption’’).3 As discussed below, we                      analog-only cable systems are not                       offers any programming in HD, the
                                                find that the joint proposal strikes a                     subject to the HD carriage requirement                  system must give notice that it is
                                                reasonable balance between the interests                   because carriage of HD signals by such                  offering HD programming to all
                                                of broadcast stations in having their HD                   systems is not ‘‘technically feasible’’                 broadcast stations in its market that are
                                                signals transmitted without material                       under Section 614(b)(4)(A) of the Act.                  carried on its system.
                                                degradation and the technical and                          On March 12, 2015, the Commission                          c. Transition for Some Systems: A
                                                financial constraints that some small                      issued a Fifth Further Notice of                        cable system utilizing the HD carriage
                                                cable operators continue to experience.                    Proposed Rulemaking in this proceeding                  exemption on June 12, 2015 that does
                                                We set forth below a brief history of the                  that, among other things, proposed to                   not qualify for the HD carriage
                                                HD carriage exemption and explain the                      extend the HD carriage exemption for                    exemption on or after June 13, 2015
                                                basis for our decision.                                    three more years.4 In their initial                     must come into compliance by
                                                                                                           pleadings responsive to the Fifth                       December 12, 2016. A cable system that
                                                II. Background
                                                                                                           Further Notice, multichannel video                      becomes ineligible for the HD carriage
                                                   2. Sections 614(b)(4)(A) and 615(g)(2)                  programming distributors (‘‘MVPDs’’)                    exemption after December 12, 2016
                                                of the Act require that cable operators                    supported the Commission’s proposal to                  would be expected to come into
                                                carry signals of commercial and                            extend the HD carriage exemption and                    compliance promptly.
                                                noncommercial broadcast television                         broadcasters opposed it. After a series of                 d. Revisions to Definition of ‘‘Small’’
                                                stations, respectively, ‘‘without material                 discussions aimed at resolving their                    Cable System: ‘‘Small’’ cable systems
                                                degradation.’’ In the context of the                       differences, ACA and NAB, on May 14,                    eligible for the HD carriage exemption
                                                carriage of digital signals, the                           2015, filed the joint proposal with the                 would be redefined as those: (i) Serving
                                                Commission has interpreted this                            Commission.5                                            1,500 (rather than 2,500) or fewer
                                                requirement: (i) To prohibit cable
                                                                                                           III. Discussion                                         subscribers, and not affiliated with a
                                                operators from discriminating in their
                                                                                                              4. We conclude that it would serve                   cable operator serving more than 2
                                                carriage between broadcast and non-
                                                                                                           the public interest to adopt the joint                  percent (rather than 10 percent) of all
                                                broadcast signals; and (ii) to require
                                                                                                           proposal put forth by ACA and NAB.                      MVPD subscribers, or (ii) having an
                                                cable operators to carry HD broadcast
                                                                                                           Throughout the course of this                           activated channel capacity of 552 MHz
                                                signals to their viewers in HD. To
                                                                                                           proceeding, ACA and NAB have                            or less.
                                                address concerns expressed by small
                                                cable operators about cost and technical                   expressed differing views about the                     IV. Procedural Matters
                                                capacity, the Commission in 2008                           appropriate scope and duration of the
                                                                                                           HD carriage exemption, among other                      A. Regulatory Flexibility Act
                                                granted a three-year exemption from the
                                                HD carriage requirement to certain small                   issues. We find that the compromise                        5. Final Regulatory Flexibility
                                                                                                           reached by ACA and NAB as reflected                     Analysis. As required by the Regulatory
                                                  1 See Letter from Ross Lieberman, Senior Vice            in the joint proposal reasonably                        Flexibility Act of 1980, as amended
                                                President of Government Affairs, American Cable            balances the interest of broadcast                      (‘‘RFA’’) 7 an Initial Regulatory
                                                Association and Erin L. Dozier, Senior Vice
                                                President and Deputy General Counsel, National
                                                                                                           stations in having their HD signals                     Flexibility Act Analysis (‘‘IRFA’’) was
                                                Association of Broadcasters, to Marlene H. Dortch,         transmitted in HD and the interest of                   incorporated in the Fifth Further Notice
                                                Secretary, FCC, in CS Docket No. 98–120 (filed May         small cable operators in upgrading their
                                                14, 2015) (‘‘Joint Proposal’’); Letter from Ross           systems to carry HD broadcast signals in                   6 See Joint Proposal; Joint Clarification. We need
                                                Lieberman, Senior Vice President of Government                                                                     not resolve in this order the issue whether analog-
                                                Affairs, American Cable Association and Erin L.
                                                                                                           a manner that is cost efficient. We note
                                                                                                                                                                   only cable systems are subject to the HD carriage
                                                Dozier, Senior Vice President and Deputy General           that no industry commenter has lodged                   requirement under Section 614(b)(4)(A) of the Act
                                                Counsel, National Association of Broadcasters, to                                                                  because under the terms of the joint proposal, cable
                                                Marlene H. Dortch, Secretary, FCC, in CS Docket              4 See Carriage of Digital Television Broadcast        systems that do not offer any programming in HD,
                                                No. 98–120 (filed May 27, 2015) (clarifying two            Signals: Amendment to Part 76 of the Commission’s       including analog-only systems, will be exempt from
                                                points in the joint proposal) (‘‘Joint Clarification’’).   Rules, CS Docket No. 98–120, Fifth Further Notice       the HD carriage requirement. See Joint Proposal at
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                                                  2 See 47 U.S.C. 534(b)(4)(A), 535(g)(2) (material        of Proposed Rulemaking, 80 FR 16347 (2015) (‘‘Fifth     1. Thus, our adoption of the joint proposal renders
                                                degradation requirements relating to signals of local      Further Notice’’).                                      this issue moot.
                                                commercial and noncommercial television stations,            5 See Joint Proposal. See also Joint Clarification;      7 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601–
                                                respectively).                                             Letter from Erin L. Dozier, Senior Vice President       612, has been amended by the Small Business
                                                  3 See Carriage of Digital Television Broadcast           and Deputy General Counsel, National Association        Regulatory Enforcement Fairness Act of 1996
                                                Signals: Amendment to Part 76 of the Commission’s          of Broadcasters, and Ross Lieberman, Senior Vice        (‘‘SBREFA’’), Pub. L. 104–121, Title II, 110 Stat. 847
                                                Rules, CS Docket No. 98–120, Fifth Report and              President of Government Affairs, American Cable         (1996). The SBREFA was enacted as Title II of the
                                                Order, 77 FR 36178 (2012) (‘‘Fifth Report and              Association, to Marlene H. Dortch, Secretary, FCC,      Contract With America Advancement Act of 1996
                                                Order’’).                                                  in CS Docket No. 98–120 (filed May 13, 2015).           (‘‘CWAAA’’).



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                                                35856                 Federal Register / Vol. 80, No. 120 / Tuesday, June 23, 2015 / Rules and Regulations

                                                in this proceeding.8 The Commission                          • Transition for Some Systems: A                     well as an estimate of the number of
                                                sought written public comment on the                      cable system utilizing the HD carriage                  such small entities, is provided below.
                                                proposals in the Fifth Further Notice,                    exemption on June 12, 2015 that does                       11. Cable Companies and Systems.
                                                including comment on the IRFA. The                        not qualify for the HD carriage                         The Commission has developed its own
                                                Commission received no comments on                        exemption on or after June 13, 2015                     small business size standards for the
                                                the IRFA. This Final Regulatory                           must come into compliance by                            purpose of cable rate regulation. Under
                                                Flexibility Act Analysis (‘‘FRFA’’)                       December 12, 2016. A cable system that                  the Commission’s rules, a ‘‘small cable
                                                conforms to the RFA.9                                     becomes ineligible for the HD carriage                  company’’ is one serving 400,000 or
                                                                                                          exemption after December 12, 2016                       fewer subscribers nationwide.14
                                                1. Need for, and Objectives of, the Sixth                                                                         Industry data indicate that there are
                                                Report and Order                                          would be expected to come into
                                                                                                          compliance promptly.                                    currently 660 cable operators.15 Of this
                                                   6. This proceeding stems from a                           • Revisions to Definition of ‘‘Small’’               total, all but ten cable operators
                                                Petition for Rulemaking filed by the                      Cable System: ‘‘Small’’ cable systems                   nationwide are small under this size
                                                American Cable Association in January                     eligible for the HD carriage exemption                  standard.16 In addition, under the
                                                2015 principally requesting that the                      would be redefined as those: (i) Serving                Commission’s rate regulation rules, a
                                                Commission extend the exemption from                      1,500 (rather than 2,500) or fewer                      ‘‘small system’’ is a cable system serving
                                                the requirement to carry high definition                  subscribers, and not affiliated with a                  15,000 or fewer subscribers.17 Current
                                                (‘‘HD’’) broadcast signals under the                      cable operator serving more than 2                      Commission records show 4,629 cable
                                                ‘‘material degradation’’ provisions of the                percent (rather than 10 percent) of all                 systems nationwide.18 Of this total,
                                                Communications Act of 1934, as                            MVPD subscribers, or (ii) having an                     4,057 cable systems have less than
                                                amended, that it granted to certain small                 activated channel capacity of 552 MHz                   20,000 subscribers, and 572 systems
                                                cable systems in the 2012 Fifth Report                    or less.                                                have 20,000 or more subscribers, based
                                                and Order (‘‘HD carriage exemption’’).                                                                            on the same records. Thus, under this
                                                The HD carriage exemption will expire                     2. Summary of Significant Issues Raised                 standard, we estimate that most cable
                                                on June 12, 2015 without action by the                    by Public Comments in Response to the                   systems are small entities.
                                                Commission.                                               IRFA                                                       12. Cable System Operators (Telecom
                                                   7. In the accompanying Sixth Report                       9. The Commission did not receive                    Act Standard). The Communications
                                                and Order, the Commission adopts a                        any comments in response to the IRFA.                   Act of 1934, as amended, also contains
                                                proposal filed jointly by the American                                                                            a size standard for small cable system
                                                Cable Association (‘‘ACA’’) and the                       3. Description and Estimate of the
                                                                                                                                                                  operators, which is ‘‘a cable operator
                                                National Association of Broadcasters                      Number of Small Entities to Which the
                                                                                                                                                                  that, directly or through an affiliate,
                                                (‘‘NAB’’) that modifies and extends the                   Rules Will Apply
                                                                                                                                                                  serves in the aggregate fewer than 1
                                                HD carriage exemption. The joint                             10. The RFA directs the Commission                   percent of all subscribers in the United
                                                proposal reflects a compromise between                    to provide a description of and, where                  States and is not affiliated with any
                                                ACA and NAB on issues concerning,                         feasible, an estimate of the number of                  entity or entities whose gross annual
                                                among other things, the appropriate                       small entities that will be affected by the             revenues in the aggregate exceed
                                                scope and duration of the HD carriage                     proposed actions if adopted.10 The RFA                  $250,000,000.’’ 19 There are
                                                exemption. The Sixth Report and Order                     generally defines the term ‘‘small                      approximately 54 million cable video
                                                concludes that the joint proposal strikes                 entity’’ as having the same meaning as                  subscribers in the United States today.20
                                                a reasonable balance between the                          the terms ‘‘small business,’’ ‘‘small                   Accordingly, an operator serving fewer
                                                interests of broadcast stations in having                 organization,’’ and ‘‘small governmental                than 540,000 subscribers shall be
                                                their HD signals transmitted without                      jurisdiction.’’ 11 In addition, the term                deemed a small operator if its annual
                                                material degradation and the interests of                 ‘‘small business’’ has the same meaning                 revenues, when combined with the total
                                                small cable operators in upgrading their                  as the term ‘‘small business concern’’                  annual revenues of all its affiliates, do
                                                systems to provide HD broadcast signals                   under the Small Business Act.12 A                       not exceed $250 million in the
                                                in a manner that is cost efficient.                       ‘‘small business concern’’ is one which:                aggregate.21 Based on available data, we
                                                   8. In particular, the Sixth Report and                 (1) Is independently owned and                          find that all but ten incumbent cable
                                                Order adopts the following provisions                     operated; (2) is not dominant in its field              operators are small entities under this
                                                that are set forth in the joint proposal:                 of operation; and (3) satisfies any                     size standard.22 We note that the
                                                   • HD Carriage Exemption Eligibility                    additional criteria established by the
                                                after June 12, 2015: A small cable                        Small Business Administration (SBA).13                    14 47 CFR 76.901(e).
                                                system not offering any programming in                    The action taken in the accompanying                      15 NCTA,   Industry Data, Number of Cable
                                                HD is exempt from the HD carriage                         Sixth Report and Order will affect small                Operators and Systems, http://www.ncta.com/
                                                requirement. Beginning December 12,                                                                               Statistics.aspx (visited October 13, 2014).
                                                                                                          cable system operators and small                          16 See SNL Kagan, ‘‘Top Cable MSOs—12/12 Q’’;
                                                2016, a system utilizing the HD carriage                  television broadcast stations. A                        available at http://www.snl.com/InteractiveX/Top
                                                exemption shall no longer be eligible to                  description of these small entities, as                 CableMSOs.aspx?period=2012Q4&sortcol=
                                                use it once the system offers any                                                                                 subscribersbasic&sortorder=desc.
                                                programming in HD.                                          10 5 U.S.C. 603(b)(3).
                                                                                                                                                                    17 47 CFR 76.901(c).

                                                   • Notice: Beginning December 12,                         11 5 U.S.C. 601(b).
                                                                                                                                                                    18 The number of active, registered cable systems

                                                                                                                                                                  comes from the Commission’s Cable Operations and
                                                2016, at the time a small cable system                      12 5 U.S.C. 601(3) (incorporating by reference the
                                                                                                                                                                  Licensing System (COALS) database on October 10,
                                                utilizing the HD carriage exemption                       definition of ‘‘small-business concern’’ in the Small
                                                                                                          Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C.      2014. A cable system is a physical system integrated
                                                offers any programming in HD, the                                                                                 to a principal headend.
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                                                                                                          601(3), the statutory definition of a small business
                                                system must give notice that it is                        applies ‘‘unless an agency, after consultation with
                                                                                                                                                                    19 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn.

                                                offering HD programming to all                            the Office of Advocacy of the Small Business            1–3.
                                                                                                                                                                    20 See NCTA, Industry Data, Cable’s Customer
                                                broadcast stations in its market that are                 Administration and after opportunity for public
                                                                                                          comment, establishes one or more definitions of         Base, http://www.ncta.com/industry-data (visited
                                                carried on its system.                                    such term which are appropriate to the activities of    October 13, 2014).
                                                                                                          the agency and publishes such definition(s) in the        21 47 CFR 76.901(f).
                                                  8 See   Fifth Further Notice, Appendix.                 Federal Register.’’                                       22 See NCTA, Industry Data, Top 25 Multichannel
                                                  9 See   5 U.S.C. 604.                                     13 15 U.S.C. 632.                                     Video Service Customers (2012), http://



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                                                                     Federal Register / Vol. 80, No. 120 / Tuesday, June 23, 2015 / Rules and Regulations                                                         35857

                                                Commission neither requests nor                           had fewer than 100 employees, and 248                      we do not include or aggregate revenues
                                                collects information on whether cable                     firms had 100 or more employees.29                         from affiliated companies in
                                                system operators are affiliated with                      Therefore, under this size standard, we                    determining whether an entity meets the
                                                entities whose gross annual revenues                      estimate that the majority of these                        revenue threshold noted above, our
                                                exceed $250 million.23 Although it                        businesses can be considered small                         estimate of the number of small entities
                                                seems certain that some of these cable                    entities.                                                  affected is likely overstated. In addition,
                                                system operators are affiliated with                         14. Television Broadcasting. This                       we note that one element of the
                                                entities whose gross annual revenues                      economic Census category ‘‘comprises                       definition of ‘‘small business’’ is that an
                                                exceed $250,000,000, we are unable at                     establishments primarily engaged in                        entity not be dominant in its field of
                                                this time to estimate with greater                        broadcasting images together with                          operation. We are unable at this time to
                                                precision the number of cable system                      sound.’’ 30 The SBA has created the                        define or quantify the criteria that
                                                operators that would qualify as small                     following small business size standard                     would establish whether a specific
                                                cable operators under the definition in                   for such businesses: those having $38.5                    television broadcast station is dominant
                                                the Communications Act.                                   million or less in annual receipts.31 The                  in its field of operation. Accordingly,
                                                   13. Open Video Systems. The open                       2007 U.S. Census indicates that 808                        our estimate of small television stations
                                                video system (OVS) framework was                          firms in this category operated in that                    potentially affected by the proposed
                                                established in 1996, and is one of four                   year. Of that number, 709 had annual                       rules includes those that could be
                                                statutorily recognized options for the                    receipts of $25,000,000 or less, and 99                    dominant in their field of operation. For
                                                provision of video programming                            had annual receipts of more than                           this reason, such estimate likely is over-
                                                services by local exchange carriers.24                    $25,000,000.32 Because the Census has                      inclusive.
                                                The OVS framework provides                                no additional classifications that could
                                                opportunities for the distribution of                                                                                4. Description of Projected Reporting,
                                                                                                          serve as a basis for determining the                       Recordkeeping, and Other Compliance
                                                video programming other than through                      number of stations whose receipts
                                                cable systems. Because OVS operators                                                                                 Requirements for Small Entities
                                                                                                          exceeded $38.5 million in that year, we
                                                provide subscription services,25 OVS                      conclude that the majority of television                      17. In this section, we describe the
                                                falls within the SBA small business size                                                                             reporting, recordkeeping, and other
                                                                                                          broadcast stations were small under the
                                                standard covering cable services, which                                                                              compliance requirements that the
                                                                                                          applicable SBA size standard.
                                                is ‘‘Wired Telecommunications                                                                                        Commission adopts in the Sixth Report
                                                Carriers.’’ 26 The SBA has developed a                       15. Apart from the U.S. Census, the
                                                                                                          Commission has estimated the number                        and Order.
                                                small business size standard for this                                                                                   18. Reporting Requirements. The
                                                category, which is: all such businesses                   of licensed commercial television
                                                                                                          stations to be 1,387 stations.33 Of this                   Sixth Report and Order does not adopt
                                                having 1,500 or fewer employees.27                                                                                   reporting requirements.
                                                Census data for 2007 shows that there                     total, 1,221 stations (or about 88
                                                                                                          percent) had revenues of $38.5 million                        19. Recordkeeping Requirements. The
                                                were 3,188 firms that operated for that
                                                                                                          or less, according to Commission staff                     joint proposal adopted in the Sixth
                                                entire year.28 Of this total, 2,940 firms
                                                                                                          review of the BIA Kelsey Inc. Media                        Report and Order requires that,
                                                www.ncta.com/industry-data (visited Aug. 30,              Access Pro Television Database (BIA) on                    ‘‘[b]eginning December 12, 2016, at the
                                                2013).                                                    July 2, 2014. In addition, the                             time a small cable system utilizing the
                                                   23 The Commission does receive such information
                                                                                                          Commission has estimated the number                        HD carriage exemption offers any
                                                on a case-by-case basis if a cable operator appeals       of licensed noncommercial educational                      programming in HD, the system must
                                                a local franchise authority’s finding that the                                                                       give notice that it is offering HD
                                                operator does not qualify as a small cable operator       (NCE) television stations to be 395.34
                                                pursuant to 76.901(f) of the Commission’s rules. See      NCE stations are non-profit, and                           programming to all broadcast stations in
                                                47 CFR 76.901(f).                                         therefore considered to be small                           its market that are carried on its
                                                   24 47 U.S.C. 571(a)(3)–(4).
                                                                                                          entities.35 Based on these data, we                        system.’’ This requirement obligates
                                                   25 See 47 U.S.C. 573.
                                                                                                          estimate that the majority of television                   certain small cable operators to notify
                                                   26 See 13 CFR 121.201, 2012 NAICS code 517110.
                                                                                                          broadcast stations are small entities.                     broadcast stations, and thus, to make
                                                This category of Wired Telecommunications
                                                Carriers is defined in part as follows: ‘‘This industry      16. We note, however, that in                           and keep records of such notification.
                                                comprises establishments primarily engaged in             assessing whether a business concern                          20. Other Compliance Requirements.
                                                operating and/or providing access to transmission                                                                    The joint proposal adopted in the Sixth
                                                facilities and infrastructure that they own and/or
                                                                                                          qualifies as ‘‘small’’ under the above
                                                lease for the transmission of voice, data, text,          definition, business (control)                             Report and Order:
                                                sound, and video using wired telecommunications           affiliations 36 must be included. Because                     • Requires ‘‘[a] cable system utilizing
                                                networks. Transmission facilities may be based on                                                                    the HD carriage exemption on June 12,
                                                a single technology or a combination of                     29 Id.                                                   2015 that does not qualify for the HD
                                                technologies. Establishments in this industry use
                                                the wired telecommunications network facilities
                                                                                                             30 U.S. Census Bureau, 2012 NAICS Definitions,          carriage exemption on or after June 13,
                                                                                                          ‘‘515120 Television Broadcasting,’’ at http://             2015 [to] come into compliance [with
                                                that they operate to provide a variety of services,
                                                                                                          www.census.gov./cgi-bin/sssd/naics/naicsrch.
                                                such as wired telephony services, including VoIP             31 13 CFR 121.201; 2012 NAICS code 515120.
                                                                                                                                                                     the HD carriage requirement] by
                                                services; wired (cable) audio and video                                                                              December 12, 2016. A cable system that
                                                                                                             32 U.S. Census Bureau, Table No. EC0751SSSZ4,
                                                programming distribution; and wired broadband
                                                Internet services.’’ U.S. Census Bureau, 2012 NAICS       Information: Subject Series—Establishment and              becomes ineligible for the HD carriage
                                                Definitions, ‘‘517110 Wired Telecommunications            Firm Size: Receipts Size of Firms for the United           exemption after December 12, 2016
                                                Carriers,’’ at http://www.census.gov/cgi-bin/sssd/        States: 2007 (515120), http://factfinder2.census.gov/      would be expected to come into
                                                naics/naicsrch.                                           faces/tableservices/jsf/pages/productview.xhtml?
                                                                                                          pid=ECN_2007_US_51SSSZ4&prodType=table.
                                                                                                                                                                     compliance promptly.’’
                                                   27 13 CFR 121.201; 2012 NAICS code 517110.
                                                                                                             33 See Broadcast Station Totals as of June 30,             • Requires that ‘‘[b]eginning
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                                                   28 U.S. Census Bureau, 2007 Economic Census.

                                                See U.S. Census Bureau, American FactFinder,              2014, Press Release (MB rel. July 9, 2014)                 December 12, 2016, a system utilizing
                                                ‘‘Information: Subject Series—Estab and Firm Size:        (Broadcast Station Totals) at https://apps.fcc.gov/        the HD carriage exemption shall no
                                                                                                          edocs_public/attachmatch/DOC-328096A1.pdf.
                                                Employment Size of Establishments for the United
                                                                                                             34 See Broadcast Station Totals, supra.
                                                                                                                                                                     longer be eligible to use it once the
                                                States: 2007—2007 Economic Census,’’ NAICS code                                                                      system offers any programming in HD.’’
                                                                                                             35 See generally 5 U.S.C. 601(4), (6).
                                                517110, Table EC0751SSSZ5; available at http://
                                                factfinder2.census.gov/faces/tableservices/jsf/              36 ‘‘[Business concerns] are affiliates of each other

                                                pages/productview.xhtml?pid=ECN_2007_US_                  when one concern controls or has the power to              or has the power to control both.’’ 13 CFR
                                                51SSSZ5&prodType=table.                                   control the other or a third party or parties controls     21.103(a)(1).



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                                                35858                 Federal Register / Vol. 80, No. 120 / Tuesday, June 23, 2015 / Rules and Regulations

                                                5. Steps Taken To Minimize Significant                    B. Paperwork Reduction Act                              this Sixth Report and Order in CS
                                                Economic Impact on Small Entities, and                      24. This Sixth Report and Order                       Docket No. 98–120, including the Final
                                                Significant Alternatives Considered                       contains new information collection                     Regulatory Flexibility Act Analysis, to
                                                   21. The RFA requires an agency to                      requirements subject to the Paperwork                   the Chief Counsel for Advocacy of the
                                                describe any significant alternatives that                Reduction Act of 1995. It will be                       Small Business Administration.
                                                it has considered in reaching its                         submitted to the Office of Management                   Federal Communications Commission.
                                                proposed approach, which may include                      and Budget (OMB) for review under                       Marlene H. Dortch,
                                                the following four alternatives (among                    Section 3507(d) of the PRA. OMB, the                    Secretary.
                                                others): (1) The establishment of                         general public, and other Federal                       [FR Doc. 2015–15251 Filed 6–22–15; 8:45 am]
                                                differing compliance or reporting                         agencies are invited to comment on the
                                                                                                                                                                  BILLING CODE 6712–01–P
                                                requirements or timetables that take into                 new or modified information collection
                                                account the resources available to small                  requirements contained in this
                                                entities; (2) the clarification,                          proceeding. In addition, pursuant to the
                                                consolidation, or simplification of                       Small Business Paperwork Relief Act of                  DEPARTMENT OF TRANSPORTATION
                                                compliance or reporting requirements                      2002, Public Law 107–198, see 44 U.S.C.                 National Highway Traffic Safety
                                                under the rule for small entities; (3) the                3506(c)(4), we previously sought                        Administration
                                                use of performance, rather than design,                   specific comment on how the
                                                standards; and (4) an exemption from                      Commission might further reduce the                     49 CFR Part 572
                                                coverage of the rule, or any part thereof,                information collection burden for small
                                                for small entities.37 We seek comment                     business concerns with fewer than 25                    [Docket No. NHTSA–2011–0175]
                                                on the applicability of any of these                      employees.                                              RIN 2127–AJ49
                                                alternatives to affected small entities.
                                                   22. The HD carriage exemption, as                      C. Congressional Review Act
                                                                                                                                                                  Hybrid III 10-Year-Old Child Test
                                                modified in the Sixth Report and Order,                     25. The Commission will send a copy                   Dummy; Corrections; Incorporation by
                                                provides continued regulatory relief to                   of this Sixth Report and Order in a                     Reference
                                                operators of certain small cable systems,                 report to be sent to Congress and the
                                                i.e., those that (i) serve 1,500 or fewer                 Government Accountability Office,                       AGENCY:  National Highway Traffic
                                                subscribers and are not affiliated with a                 pursuant to the Congressional Review                    Safety Administration (NHTSA),
                                                cable operator serving more than two                      Act.40                                                  Department of Transportation (DOT).
                                                percent of all MVPD subscribers; or (ii)                                                                          ACTION: Technical amendments.
                                                                                                          D. Additional Information
                                                have an activated channel capacity of
                                                552 MHz or less. Although some eligible                     26. For more information, contact                     SUMMARY:   NHTSA published a
                                                cable systems will no longer qualify for                  Raelynn Remy, Raelynn.Remy@fcc.gov,                     document in the Federal Register on
                                                the exemption as a result of the Sixth                    Policy Division, Media Bureau, (202)                    February 27, 2012 (77 FR 11651),
                                                Report and Order, the joint proposal                      418–2936.                                               establishing specifications and
                                                adopted in the order gives such systems                                                                           qualification requirements for a Hybrid
                                                                                                          V. Ordering Clauses
                                                until December 12, 2016 to come into                                                                              III 10-year-old child size test dummy.
                                                compliance with the HD carriage                              27. Accordingly, it is ordered that,                 The regulatory text adopted by that
                                                requirement. We note that the                             pursuant to the authority found in                      document contained errors, as did some
                                                modifications made to the exemption in                    sections 4, 303, 614, and 615 of the                    of the drawings of the test dummy and
                                                the Sixth Report and Order were an                        Communications Act of 1934, as                          other materials incorporated by
                                                outgrowth of discussions between ACA                      amended, 47 U.S.C. 154, 303, 534, and                   reference pertaining to the test dummy.
                                                and NAB and thus reflect the interests                    535, this Sixth Report and Order is                     This document corrects those errors by
                                                of both small cable operators and                         adopted and will become effective July                  revising regulatory text and
                                                broadcasters (including small                             23, 2015, except that the requirement                   incorporating by reference a corrected
                                                broadcasters), respectively. The HD                       described in paragraph III.4.b of the                   drawing package. We have also made
                                                carriage exemption has a positive                         Supplementary Information, which                        conforming changes to the parts list and
                                                economic impact on any cable system                       contains new or modified information                    users’ manual for the dummy, which
                                                operator that takes advantage of the                      collection requirements subject to the                  this document also incorporates by
                                                exemption, and imposes no significant                     Paperwork Reduction Act of 1995,                        reference.
                                                burdens on small television stations.                     Public Law 104–13, will not become
                                                                                                                                                                  DATES: Effective date: June 23, 2015. The
                                                                                                          effective until the Federal
                                                6. Report to Congress                                     Communications Commission publishes                     incorporation by reference of the
                                                                                                          a notice in the Federal Register                        publications listed in this document has
                                                   23. The Commission will send a copy                                                                            been approved by the Director of the
                                                of this Sixth Report and Order,                           announcing OMB approval and the
                                                                                                          effective date of that rule.                            Federal Register as of June 23, 2015.
                                                including this FRFA, in a report to be
                                                                                                             28. It is further ordered that, pursuant             FOR FURTHER INFORMATION CONTACT:
                                                sent to Congress pursuant to the
                                                SBREFA.38 In addition, the Commission                     to the Congressional Review Act, 5                      Peter Martin, NHTSA Office of
                                                will send a copy of this Sixth Report                     U.S.C. 801(a)(1)(A), the Commission will                Crashworthiness Standards, 1200 New
                                                and Order, including the FRFA, to the                     send a copy of this Sixth Report and                    Jersey Avenue SE., Washington, DC
                                                Chief Counsel for Advocacy of the SBA.                    Order in CS Docket No. 98–120 in a                      20590, telephone (202) 366–5668, fax
                                                A copy of this Sixth Report and Order                     report to Congress and the Government                   (202) 493–2990, or Deirdre Fujita,
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                                                and the FRFA (or summaries thereof)                       Accountability Office.                                  NHTSA Office of Chief Counsel, 1200
                                                also will be published in the Federal                        29. It is further ordered that the                   New Jersey Avenue SE., Washington,
                                                Register.39                                               Commission’s Consumer and                               DC 20590, telephone (202) 366–2992,
                                                                                                          Governmental Affairs Bureau, Reference                  fax (202) 366–3820.
                                                  37 5  U.S.C. 603(c)(1)–(c)(4).                          Information Center, will send a copy of                 SUPPLEMENTARY INFORMATION:
                                                  38 See  id. 801(a)(1)(A).                                                                                          This document corrects 49 CFR part
                                                  39   See id. 604(b).                                      40 See   5 U.S.C. 801(a)(1)(A).                       572, ‘‘Anthropomorphic Test Devices,’’


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Document Created: 2018-02-22 11:15:36
Document Modified: 2018-02-22 11:15:36
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective July 23, 2015, except for the requirement described in paragraph III.4.b of the Supplementary Information. That paragraph contains information collection requirements that have not been approved by the Office of Management and Budget (OMB). The Commission will publish a document in the Federal Register announcing OMB approval and the effective date of that paragraph.
ContactRaelynn Remy, [email protected], Federal Communications Commission, Media Bureau, (202) 418-2936.
FR Citation80 FR 35854 

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