81_FR_5106 81 FR 5086 - Low Power Television Digital Rules

81 FR 5086 - Low Power Television Digital Rules

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 81, Issue 20 (February 1, 2016)

Page Range5086-5092
FR Document2016-00059

In this document, the Federal Communications Commission (Commission) seeks comment on additional issues relating to channel sharing outside of the auction context and announces that it intends to resolve all of the outstanding issues regarding channel sharing outside the incentive auction context, including those raised in a prior notice, in a forthcoming decision.

Federal Register, Volume 81 Issue 20 (Monday, February 1, 2016)
[Federal Register Volume 81, Number 20 (Monday, February 1, 2016)]
[Proposed Rules]
[Pages 5086-5092]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00059]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 73

[MB Docket No. 03-185; GN Docket No. 12-268; ET Docket No. 14-175; FCC 
15-175]


Low Power Television Digital Rules

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) seeks comment on additional issues relating to channel 
sharing outside of the auction context and announces that it intends to 
resolve all of the outstanding issues regarding channel sharing outside 
the incentive auction context, including those raised in a prior 
notice, in a forthcoming decision.

DATES: Comments Due: February 22, 2016. Reply Comments Due: March 3, 
2016.

ADDRESSES: You may submit comments, identified by MB Docket No. 03-185, 
GN Docket No. 12-268 and ET Docket No. 14-175 and/or FCC 15-175, by any 
of the following methods:

[[Page 5087]]

     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web site: http://www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
     Mail: Filings can be sent by hand or messenger delivery, 
by commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail (although we continue to experience delays in 
receiving U.S. Postal Service mail.) All filings must be addressed to 
the Commission's Secretary, Office of the Secretary, Federal 
Communications Commission.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Shaun Maher, [email protected] of 
the Media Bureau, Video Division, (202) 418-2324. For additional 
information concerning the PRA information collection requirements 
contained in this document, contact Cathy Williams, Federal 
Communications Commission, at (202) 418-2918, or via email 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Fourth 
Notice. The full text is available for inspection and copying during 
regular business hours in the FCC Reference Center, 445 12th Street 
SW., Room CY-A257, Portals II, Washington, DC 20554, and may also be 
purchased from the Commission's copy contractor, BCPI, Inc., Portals 
II, 445 12th Street SW., Room CY-B402, Washington, DC 20554. Customers 
may contact BCPI, Inc. via their Web site, http://www.bcpi.com, or call 
1-800-378-3160. This document is available in alternative formats 
(computer diskette, large print, audio record, and Braille). Persons 
with disabilities who need documents in these formats may contact the 
FCC by email: [email protected] or phone: 202-418-0530 or TTY: 202-418-
0432.
    Paperwork Reduction Act of 1995 Analysis: This document contains 
new or modified information collection requirements. The Commission, as 
part of its continuing effort to reduce paperwork burdens, invites the 
general public and the Office of Management and Budget (OMB) to comment 
on the information collection requirements contained in this document, 
as required by the Paperwork Reduction Act of 1995, Public Law 104-13, 
see 44 U.S.C. 3507. In addition, pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4), we seek specific comment on how we might further reduce the 
information collection burden for small business concerns with fewer 
than 25 employees.

Synopsis

    1. In this Fourth Notice, the Commission tentatively concluded to 
allow channel sharing between primary (full power and Class A 
television) and secondary (LPTV and TV translator) stations and, in the 
event that it decides to allow such channel sharing, it proposes rules 
for primary-secondary sharing that are consistent with those adopted 
for secondary-secondary sharing in the companion Third Report and 
Order, FCC 15-175, released December 17, 2015, and proposed for 
primary-primary sharing outside of the auction context in the Primary-
Primary Channel Sharing NPRM, 30 FCC Rcd 6668 (2015) (Primary-Primary 
Channel Sharing NPRM). This includes licensing rules, operating rules, 
and rules regarding termination, assignment/transfer, and 
relinquishment of channel sharing rights.
    2. The Commission sought comment on whether it would be appropriate 
for a secondary station to be permitted to obtain ``de facto'' 
interference protection by sharing with a primary station. It also 
sought comment on whether it would be appropriate to allow a secondary 
station to obtain the coverage area of a primary station through 
channel sharing. In addition, it sought comment on whether the benefits 
of channel sharing between a primary station and a secondary station 
could be obtained alternatively by the primary station entering into a 
commercial agreement to air the secondary station's programming as a 
multicast stream. The Commission announced that it intended to resolve 
all of the outstanding issues regarding channel sharing outside the 
incentive auction context in a single decision, based on the record 
developed in both proceedings. This approach will also ensure 
consistency and promote efficient decision-making regarding these 
issues, without unduly delaying their final resolution.
    3. For both primary-secondary and secondary-secondary sharing, the 
Commission proposed to adopt rules pertaining to the term length of 
channel sharing agreements (CSAs) and MVPD notice consistent with what 
we have proposed in the Primary-Primary Channel Sharing NPRM. The 
Commission also proposed to not reimburse the costs imposed on MVPDs as 
a result of CSAs between secondary stations or between primary and 
secondary stations. The Commission also sought comment on issues 
pertaining to MVPD carriage in the context of both primary-secondary 
and secondary-secondary sharing. The Commission tentatively conclude 
that a secondary station that shares with a primary or secondary sharer 
station, and a primary station that shares with a secondary sharer 
station, has the same satellite and cable carriage rights under the 
Communications Act on their new shared channels that the station would 
have at the shared location if it was not channel sharing. The 
Commission proposed to adopt the same approach to MVPD carriage for 
both primary-secondary and secondary-secondary sharing as we proposed 
in the Primary-Primary Channel Sharing NPRM to fulfill the objectives 
underlying Section 1452(a)(4), with one modification. Given the 
relatively small number of unbuilt LPTV stations that would meet the 
criteria for obtaining cable carriage, the Commission proposed to 
permit secondary stations to become sharees regardless of whether they 
possessed carriage rights or were operating on a non-shared channel 
prior to entering into a sharing agreement.

Initial Regulatory Flexibility Act Analysis

    As required by the Regulatory Flexibility Act of 1980, as amended 
(``RFA'') \1\ the Commission has prepared this present Initial 
Regulatory Flexibility Analysis (``IRFA'') concerning the possible 
significant economic impact on small entities by the policies and rules 
proposed in this Fourth Notice of Proposed Rulemaking (FNPRM). Written 
public comments are requested on this IRFA. Comments must be identified 
as responses to the IRFA and must be filed by the deadlines for 
comments indicated on the first page of the (FNPRM). The Commission 
will send a copy of the (FNPRM), including this IRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration (SBA).\2\ In 
addition, the Notice and IRFA (or summaries thereof)

[[Page 5088]]

will be published in the Federal Register.\3\
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    \1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et. seq., has 
been amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996 (``SBREFA''), Public Law 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'').
    \2\ See 5 U.S.C. 603(a).
    \3\ Id.
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Need for and Objectives of the Proposed Rules

    In the Notice, the Commission seeks comment on additional issues 
relating to channel sharing between primary (full power and Class A) 
and secondary (LPTV and TV translator) stations (``primary-secondary 
sharing''), as well as between secondary stations (``secondary-
secondary sharing''), outside of the auction context. First, the 
Commission tentatively concludes to permit channel sharing between 
primary and secondary stations and proposes rules for primary-secondary 
sharing that are consistent with those adopted for secondary-secondary 
sharing in the Third Report and Order, FCC 15-175, released December 
17, 2015 (Third R&O), and proposed for primary-primary sharing outside 
of the auction context in the Primary-Primary Channel Sharing NPRM, 30 
FCC Rcd 6668 (2015) (Primary-Primary Channel Sharing NPRM). Moreover, 
with respect to both primary-secondary and secondary-secondary sharing 
outside of the incentive auction context, the Commission seeks comment 
on issues pertaining to the term length of channel sharing agreements 
and issues pertaining to multichannel video programming distributors 
(MVPD) carriage, reimbursement, and notice.

Legal Basis

    The authority for the action proposed in this rulemaking is 
contained in sections 1, 4, 301, 303, 307, 308, 309, 310, 316, 319, 
338, 403, 614 and 615 of the Communications Act of 1934, as amended, 47 
U.S.C. 151, 154, 301, 303, 307, 308, 309, 310, 316, 319, 338, 403, 614 
and 615.

Description and Estimate of the Number of Small Entities to Which the 
Proposed Rules Will Apply

    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 rules, if adopted.\4\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' small organization,'' and ``small government 
jurisdiction.'' \5\ In addition, the term ``small business'' has the 
same meaning as the term ``small business concern'' under the Small 
Business Act.\6\ The statutory definition of a small business applies 
unless an agency 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. A small business concern is one 
which: (1) Is independently owned and operated; (2) is not dominant in 
its field of operation; and (3) satisfies any additional criteria 
established by the SBA.\7\
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    \4\ Id. at section 603(b)(3).
    \5\ 5 U.S.C. 601(6).
    \6\ Id. at section 601(3) (incorporating by reference the 
definition of ``small business concern'' in 15 U.S.C. 632). Pursuant 
to 5 U.S.C. 601(3), the statutory definition of a small business 
applies 5 U.S.C. 601(3).
    \7\ 15 U.S.C. 632. Application of the statutory criteria of 
dominance in its field of operation and independence are sometimes 
difficult to apply in the context of broadcast television. 
Accordingly, the Commission's statistical account of television 
stations may be over-inclusive.
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    Television Broadcasting. This economic census category ``comprises 
establishments primarily engaged in broadcasting images together with 
sound. These establishments operate television broadcasting studios and 
facilities for the programming and transmission of programs to the 
public.'' \8\ The SBA has created the following small business size 
standard for Television Broadcasting firms: those having $14 million or 
less in annual receipts.\9\ The Commission has estimated the number of 
licensed commercial television stations to be 1,390.\10\ In addition, 
according to Commission staff review of the BIA Advisory Services, 
LLC's Media Access Pro Television Database on March 28, 2012, about 950 
of an estimated 1,300 commercial television stations (or approximately 
73 percent) had revenues of $14 million or less.\11\ We therefore 
estimate that the majority of commercial television broadcasters are 
small entities.
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    \8\ U.S. Census Bureau, 2012 NAICS Definitions: 515120 
Television Broadcasting, http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=515120&search=2012 (last visited Mar. 6, 2014). U.S. 
Census Bureau, 2012 NAICS Definitions: 515120 Television 
Broadcasting, http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=515120&search=2012 (last visited Mar. 6, 2014).
    \9\ 13 CFR 121.201 (NAICS code 515120) (updated for inflation in 
2010).
    \10\ See FCC News Release, Broadcast Station Totals as of March 
31, 2015 (rel. April 8, 2015).
    \11\ We recognize that BIA's estimate differs slightly from the 
FCC total given the information provided above.
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    We note, however, that in assessing whether a business concern 
qualifies as small under the above definition, business (control) 
affiliations must be included.\12\ Our estimate, therefore, likely 
overstates the number of small entities that might be affected by our 
action because the revenue figure on which it is based does not include 
or aggregate revenues from affiliated companies. In addition, an 
element of the definition of ``small business'' is that the entity not 
be dominant in its field of operation. We are unable at this time to 
define or quantify the criteria that would establish whether a specific 
television station is dominant in its field of operation. Accordingly, 
the estimate of small businesses to which rules may apply does not 
exclude any television station from the definition of a small business 
on this basis and is therefore possibly over-inclusive to that extent.
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    \12\ 13 CFR 121.103(a)(1).
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    In addition, the Commission has estimated the number of licensed 
noncommercial educational (``NCE'') television stations to be 395.\13\ 
These stations are non-profit, and therefore considered to be small 
entities.\14\
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    \13\ See FCC News Release, Broadcast Station Totals as of March 
31, 2015 (rel. April 8, 2015).
    \14\ See generally 5 U.S.C. 601(4), (6).
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    There are also 2,344 LPTV stations, including Class A stations, and 
3689 TV translator stations.\15\ Given the nature of these services, we 
will presume that all of these entities qualify as small entities under 
the above SBA small business size standard.
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    \15\ See FCC News Release, Broadcast Station Totals as of March 
31, 2015 (rel. April 8, 2015).
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    Wired Telecommunications Carriers. The North American Industry 
Classification System (``NAICS'') defines ``Wired Telecommunications 
Carriers'' as follows: ``This industry comprises establishments 
primarily engaged in operating and/or providing access to transmission 
facilities and infrastructure that they own and/or lease for the 
transmission of voice, data, text, sound, and video using wired 
telecommunications networks. Transmission facilities may be based on a 
single technology or a combination of technologies. Establishments in 
this industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired telephony 
services, including VoIP services; wired (cable) audio and video 
programming distribution; and wired broadband Internet services. By 
exception, establishments providing satellite television distribution 
services using facilities and infrastructure that they operate are 
included in this industry.'' \16\ The SBA has developed a

[[Page 5089]]

small business size standard for wireline firms for the broad economic 
census category of ``Wired Telecommunications Carriers.'' Under this 
category, a wireline business is small if it has 1,500 or fewer 
employees.\17\ Census data for 2007 shows that there were 3,188 firms 
that operated for the entire year.\18\ Of this total, 3,144 firms had 
fewer than 1,000 employees, and 44 firms had 1,000 or more 
employees.\19\ Therefore, under this size standard, we estimate that 
the majority of businesses can be considered small entities.
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    \16\ U.S. Census Bureau, 2012 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch. Examples of this category are: Broadband Internet 
service providers (e.g., cable, DSL); local telephone carriers 
(wired); cable television distribution services; long-distance 
telephone carriers (wired); closed circuit television (``CCTV'') 
services; VoIP service providers, using own operated wired 
telecommunications infrastructure; direct-to-home satellite system 
(``DTH'') services; telecommunications carriers (wired); satellite 
television distribution systems; and multichannel multipoint 
distribution services (``MMDS'').
    \17\ 13 CFR 121.201; NAICS code 517110.
    \18\ U.S. Census Bureau, 2007 Economic Census. See U.S. Census 
Bureau, American FactFinder, ``Information: Subject Series--Estab 
and Firm Size: Employment Size of Establishments for the United 
States: 2007--2007 Economic Census,'' NAICS code 517110, Table 
EC0751SSSZ5; available at http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml.
    \19\ Id. With respect to the latter 44 firms, there is no data 
available that shows how many operated with more than 1,500 
employees.
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    Cable Television Distribution Services. Since 2007, these services 
have been defined within the broad economic census category of Wired 
Telecommunications Carriers, which category is defined above.\20\ The 
SBA has developed a small business size standard for this category, 
which is: All such businesses having 1,500 or fewer employees.\21\ 
Census data for 2007 shows that there were 3,188 firms that operated 
for the entire year.\22\ Of this total, 3,144 firms had fewer than 
1,000 employees, and 44 firms had 1,000 or more employees.\23\ 
Therefore, under this size standard, we estimate that the majority of 
businesses can be considered small entities.
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    \20\ See also U.S. Census Bureau, 2012 NAICS Definitions, 
``517110 Wired Telecommunications Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \21\ 13 CFR. 121.201; NAICS code 517110.
    \22\ U.S. Census Bureau, 2007 Economic Census. See U.S. Census 
Bureau, American FactFinder, ``Information: Subject Series--Estab 
and Firm Size: Employment Size of Establishments for the United 
States: 2007--2007 Economic Census,'' NAICS code 517110, Table 
EC0751SSSZ5; available at http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml.
    \23\ Id. With respect to the latter 44 firms, there is no data 
available that shows how many operated with more than 1,500 
employees.
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    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.\24\ Industry data shows that 
there are currently 660 cable operators.\25\ Of this total, all but ten 
cable operators nationwide are small under this size standard.\26\ In 
addition, under the Commission's rate regulation rules, a ``small 
system'' is a cable system serving 15,000 or fewer subscribers.\27\ 
Current Commission records show 4,629 cable systems nationwide.\28\ 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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    \24\ 47 CFR 76.901(e). The Commission determined that this size 
standard equates approximately to a size standard of $100 million or 
less in annual revenues. Implementation of Sections of the Cable 
Television Consumer Protection And Competition Act of 1992: Rate 
Regulation, MM Docket No. 92-266, MM Docket No. 93-215, Sixth Report 
and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393, 
7408, ] 28 (1995).
    \25\ NCTA, Industry Data, Number of Cable Operators and Systems, 
http://www.ncta.com/Statistics.aspx (visited October 13, 2014). 
Depending upon the number of homes and the size of the geographic 
area served, cable operators use one or more cable systems to 
provide video service. See Annual Assessment of the Status of 
Competition in the Market for Delivery of Video Programming, MB 
Docket No. 12-203, Fifteenth Report, 28 FCC Rcd 10496, 10505-6, ] 24 
(2013) (``15th Annual Competition Report'').
    \26\ See SNL Kagan, ``Top Cable MSOs--12/12 Q''; available at 
http://www.snl.com/InteractiveX/TopCableMSOs.aspx?period=2012Q4&sortcol=subscribersbasic&sortorder=desc.
    \27\ 47 CFR 76.901(c).
    \28\ 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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    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.'' \29\ There are approximately 54 million cable video 
subscribers in the United States today.\30\ 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.\31\ 
Based on available data, we find that all but ten incumbent cable 
operators are small entities under this size standard.\32\ We note that 
the Commission neither requests nor collects information on whether 
cable system operators are affiliated with entities whose gross annual 
revenues exceed $250 million.\33\ 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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    \29\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
    \30\ See NCTA, Industry Data, Cable's Customer Base, http://www.ncta.com/industry-data (visited October 13, 2014).
    \31\ 47 CFR 76.901(f); see FCC Announces New Subscriber Count 
for the Definition of Small Cable Operator, Public Notice, 16 FCC 
Rcd 2225 (Cable Services Bureau 2001).
    \32\ See NCTA, Industry Data, Top 25 Multichannel Video Service 
Customers (2012), http://www.ncta.com/industry-data (visited Aug. 
30, 2013).
    \33\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's 
finding that the operator does not qualify as a small cable operator 
pursuant to Sec.  76.901(f) of the Commission's rules. See 47 CFR 
76.901(f).
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    Direct Broadcast Satellite (DBS) Service. DBS service is a 
nationally distributed subscription service that delivers video and 
audio programming via satellite to a small parabolic ``dish'' antenna 
at the subscriber's location. DBS, by exception, is now included in the 
SBA's broad economic census category, Wired Telecommunications 
Carriers,\34\ which was developed for small wireline businesses. Under 
this category, the SBA deems a wireline business to be small if it has 
1,500 or fewer employees.\35\ Census data for 2007 shows that there 
were 3,188 firms that operated for that entire year.\36\ Of this

[[Page 5090]]

total, 2,940 firms had fewer than 100 employees, and 248 firms had 100 
or more employees.\37\ Therefore, under this size standard, the 
majority of such businesses can be considered small entities. However, 
the data we have available as a basis for estimating the number of such 
small entities were gathered under a superseded SBA small business size 
standard formerly titled ``Cable and Other Program Distribution.'' As 
of 2002, the SBA defined a small Cable and Other Program Distribution 
provider as one with $12.5 million or less in annual receipts.\38\ 
Currently, only two entities provide DBS service, which requires a 
great investment of capital for operation: DIRECTV and DISH 
Network.\39\ Each currently offers subscription services. DIRECTV and 
DISH Network each report annual revenues that are in excess of the 
threshold for a small business. Because DBS service requires 
significant capital, we believe it is unlikely that a small entity as 
defined under the superseded SBA size standard would have the financial 
wherewithal to become a DBS service provider.
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    \34\ See 13 CFR 121.201, 2012 NAICS code 517110. This category 
of Wired Telecommunications Carriers is defined as follows: ``This 
industry comprises establishments primarily engaged in operating 
and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single 
technology or a combination of technologies. Establishments in this 
industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired 
telephony services, including VoIP services; wired (cable) audio and 
video programming distribution; and wired broadband Internet 
services. By exception, establishments providing satellite 
television distribution services using facilities and infrastructure 
that they operate are included in this industry.'' (Emphasis added 
to text relevant to satellite services.) U.S. Census Bureau, 2012 
NAICS Definitions, ``517110 Wired Telecommunications Carriers,'' at 
http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \35\ 13 CFR 121.201; 2012 NAICS code 517110.
    \36\ 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.
    \37\ Id.
    \38\ See 13 CFR 121.201, NAICS code 517510 (2002).
    \39\ See 15th Annual Competition Report, 28 FCC Rcd at 10507, ] 
27. As of June 2012, DIRECTV is the largest DBS operator and the 
second largest MVPD in the United States, serving approximately 19.9 
million subscribers. DISH Network is the second largest DBS operator 
and the third largest MVPD, serving approximately 14.1 million 
subscribers. Id. at 10507, 10546, ] 27, 110-11.
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Description of Projected Reporting, Recordkeeping and Other Compliance 
Requirements

    The (FNPRM) proposes the following new or revised reporting or 
recordkeeping requirements.
    To implement channel sharing between primary and secondary 
stations, stations will follow a two-step process proposed by the 
Commission--first filing an application for construction permit and 
then application for license. Stations terminating operations to share 
a channel would be required to submit a termination notice pursuant to 
the existing Commission rule. These existing forms and collections will 
need to be revised to accommodate these new channel-sharing related 
filings and to expand the burden estimates. In addition, the Commission 
proposes that channel sharing stations submit their channel sharing 
agreements (CSAs) with the Commission and be required to include 
certain provisions in their CSAs. In addition, if upon termination of 
the license of a party to a CSA only one party to the CSA remains, the 
remaining licensee may file an application to change its license to 
non-shared status. The existing collection concerning the execution and 
filing of CSAs will need to be revised.
    Finally, the Commission proposes to require channel sharing 
stations to notify affected MVPDs.

Steps Taken To Minimize Significant Impact on Small Entities, and 
Significant Alternatives Considered

    The RFA requires an agency to describe any significant alternatives 
that it has considered in reaching its proposed approach, which may 
include the following four alternatives (among others): (1) The 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance 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.\40\
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    \40\ 5 U.S.C. 603(c)(1)-(c)(4).
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    The (FNPRM)proposes rules pertaining to primary and secondary 
station channel sharing outside the context of the incentive auction. 
The Commission has previously concluded that channel sharing can help 
broadcasters, including existing small, minority-owned, and niche 
stations, to reduce operating costs and provide broadcasters with 
additional net income to strengthen operations and improve programming 
services. Thus, the proposals in the Fourth Notice may help smaller 
broadcasters conserve resources. In addition, channel sharing is 
voluntary and only those stations that determine that channel sharing 
will be advantageous will enter into this arrangement. With respect to 
LPTV and TV translator stations specifically, channel sharing will 
allow such stations that are displaced by the incentive auction 
reorganization of spectrum to reduce the cost of having to build a new 
facility to replace the one that was displaced; could minimize the 
number of mutually exclusive applications filed in the post-incentive 
auction displacement window, thereby freeing up valuable channels for 
use by other displaced stations; and could be used as a means to 
prevent or settle the mutual exclusivity of applications and avoid 
lengthy delays in the processing of their displacement applications. In 
addition, the (FNPRM)proposes licensing and operating rules for channel 
sharing that are designed to minimize the burden and cost on small 
entities. The Commission will consider all comments submitted in 
connection with the (FNPRM), including any suggested alternative 
approaches to channel sharing that would reduce the burden and costs on 
smaller entities.
    The rules to provide notice to MVPDs were also designed to minimize 
impact on small entities. Very few stations will be impacted because 
very few LPTV and TV translator stations have carriage rights and will 
be subject to the notice requirement.

Federal Rules Which Duplicate, Overlap, or Conflict With the 
Commission's Proposals

    None.

List of Subjects in 47 CFR Part 73

    Television.

Federal Communications Commission.
Sheryl Todd,
Deputy Secretary.

Proposed Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR part 73 as follows:

PART 73--RADIO BROADCAST SERVICES

0
1. The authority citation for Part 73 continues to read as follows:

    Authority:  47 U.S.C. 154, 303, 334, 336 and 339.

0
2. In Sec.  73.3572, revise paragraph (a)(3) to read as follows:


Sec.  73.3572  Processing of TV broadcast, Class A TV broadcast, low 
power TV, TV translators, and TV booster applications.

    (a) * * *
    (3) Other changes will be considered minor including changes made 
to implement a channel sharing arrangement provided they comply with 
the other provisions of this section and provided, until October 1, 
2000, proposed changes to the facilities of Class A TV, low power TV, 
TV translator and TV booster stations, other than a change in 
frequency, will be considered minor only if the change(s) will not 
increase the signal range of the Class A TV, low power TV or TV booster 
in any horizontal direction.
* * * * *
0
3. Add Sec.   73.3800 to read as follows:


Sec.  73.3800  Full Power Television Channel Sharing Outside the 
Auction Context.

    (a) Channel sharing generally. (1) Subject to the provisions of 
this section,

[[Page 5091]]

full power television stations may voluntarily seek Commission approval 
to share a single six megahertz channel with other full power 
television, Class A, low power and TV translator television stations.
    (2) Each station sharing a single channel pursuant to this section 
shall continue to be licensed and operated separately, have its own 
call sign, and be separately subject to all applicable Commission 
obligations, rules, and policies.
    (b) Licensing of channel sharing stations. A full power television 
channel sharing station relinquishing its channel must file an 
application for the initial channel sharing construction permit (FCC 
Form 2100), include a copy of the channel sharing agreement as an 
exhibit, and cross reference the other sharing station(s). Any 
engineering changes necessitated by the channel sharing agreement may 
be included in the station's application. Upon initiation of shared 
operations, the station relinquishing its channel must notify the 
Commission that it has terminated operation pursuant to 47 CFR 73.1750 
and each sharing station must file an application for license (FCC Form 
2100).
    (c) Deadline for implementing channel sharing agreements. Channel 
sharing agreements submitted pursuant to this section must be 
implemented within three years of the grant of the initial channel 
sharing construction permit.
    (d) Channel Sharing Agreements (CSAs). (1) Channel sharing 
agreements submitted under this section must contain provisions 
outlining each licensee's rights and responsibilities regarding:
    (i) Access to facilities, including whether each licensee will have 
unrestrained access to the shared transmission facilities;
    (ii) Operation, maintenance, repair, and modification of 
facilities, including a list of all relevant equipment, a description 
of each party's financial obligations, and any relevant notice 
provisions; and
    (iii) Transfer/assignment of a shared license, including the 
ability of a new licensee to assume the existing CSA; and
    (iv) Termination of the license of a party to the CSA, including 
reversion of spectrum usage rights to the remaining parties to the CSA.
    (2) Channel sharing agreements submitted under this section must 
include a provision affirming compliance with the channel sharing 
requirements in this section including a provision requiring that each 
channel sharing licensee shall retain spectrum usage rights adequate to 
ensure a sufficient amount of the shared channel capacity to allow it 
to provide at least one Standard Definition (SD) program stream at all 
times.
    (e) Termination and assignment/transfer of shared channel. Upon 
termination of the license of a party to a CSA, the spectrum usage 
rights covered by that license may revert to the remaining parties to 
the CSA. Such reversion shall be governed by the terms of the CSA in 
accordance with paragraph (d)(1)(iv) of this section. If upon 
termination of the license of a party to a CSA only one party to the 
CSA remains, the remaining licensee may file an application to change 
its license to non-shared status using FCC Form 2100, Schedule B (for a 
full power licensee) or F (for a Class A licensee).
    (f) Notice to MVPDs. (1) Stations participating in channel sharing 
agreements must provide notice to MVPDs that:
    (i) No longer will be required to carry the station because of the 
relocation of the station;
    (ii) Currently carry and will continue to be obligated to carry a 
station that will change channels; or
    (iii) Will become obligated to carry the station due to a channel 
sharing relocation.
    (2) The notice required by this section must contain the following 
information:
    (i) Date and time of any channel changes;
    (ii) The channel occupied by the station before and after 
implementation of the CSA;
    (iii) Modification, if any, to antenna position, location, or power 
levels;
    (iv) Stream identification information; and
    (v) Engineering staff contact information.
    (3) Sharee stations (those relinquishing a channel in order to 
share) must provide notice as required by this section at least 30 days 
prior to terminating operations on the sharee's channel. Sharer 
stations (those hosting a sharee as part of a channel sharing 
agreement) and sharee stations must provide notice as required by this 
section at least 30 days prior to initiation of operations on the 
sharer channel. Should the anticipated date to either cease operations 
or commence channel sharing operations change, the stations must send a 
further notice to affected MVPDs informing them of the new anticipated 
date(s).
    (4) Notifications provided to cable systems pursuant to this 
section must be either mailed to the system's official address of 
record provided in the cable system's most recent filing in the FCC's 
Cable Operations and Licensing System (COALS) Form 322, or emailed to 
the system if the system has provided an email address. For all other 
MVPDs, the letter must be addressed to the official corporate address 
registered with their State of incorporation.
0
4. Revise Sec.  73.6028 to read as follows:


Sec.  73.6028  Class A television channel sharing outside the auction 
context.

    (a) Channel sharing generally. (1) Subject to the provisions of 
this section, Class A television stations or television stations may 
voluntarily seek Commission approval to share a single six megahertz 
channel with a full power, low power or TV translator station.
    (2) Each station sharing a single channel pursuant to this section 
shall continue to be licensed and operated separately, have its own 
call sign, and be separately subject to all of the Commission's 
obligations, rules, and policies.
    (b) Licensing of channel sharing stations. A station relinquishing 
its channel must file an application for the initial channel sharing 
construction permit, include a copy of the channel sharing agreement as 
an exhibit, and cross reference the other sharing station(s). Any 
engineering changes necessitated by the channel sharing agreement may 
be included in the station's application. Upon initiation of shared 
operations, the station relinquishing its channel must notify the 
Commission that it has terminated operation pursuant to 47 CFR 73.1750 
and each sharing station must file an application for license.
    (c) Deadline for implementing channel sharing agreements. Channel 
sharing agreements submitted pursuant to this section must be 
implemented within three years of the grant of the initial channel 
sharing construction permit.
    (d) Channel Sharing Agreements (CSAs). (1) Channel sharing 
agreements submitted under this section must contain provisions 
outlining each licensee's rights and responsibilities regarding:
    (i) Access to facilities, including whether each licensee will have 
unrestrained access to the shared transmission facilities;
    (ii) Operation, maintenance, repair, and modification of 
facilities, including a list of all relevant equipment, a description 
of each party's financial obligations, and any relevant notice 
provisions; and
    (iii) Termination or transfer/assignment of rights to the shared

[[Page 5092]]

licenses, including the ability of a new licensee to assume the 
existing CSA.
    (2) Channel sharing agreements submitted under this section must 
include a provision affirming compliance with the channel sharing 
requirements in this section including a provision requiring that each 
channel sharing licensee shall retain spectrum usage rights adequate to 
ensure a sufficient amount of the shared channel capacity to allow it 
to provide at least one Standard Definition (SD) program stream at all 
times.
    (e) Termination and assignment/transfer of shared channel. Upon 
termination of the license of a party to a CSA, the spectrum usage 
rights covered by that license may revert to the remaining parties to 
the CSA. Such reversion shall be governed by the terms of the CSA in 
accordance with paragraph (d)(1)(iv) of this section. If upon 
termination of the license of a party to a CSA only one party to the 
CSA remains, the remaining licensee may file an application for license 
to change its status to ``non-shared.''
    (f) Notice to MVPDs. (1) Stations participating in channel sharing 
agreements must provide notice to MVPDs that:
    (i) No longer will be required to carry the station because of the 
relocation of the station;
    (ii) Currently carry and will continue to be obligated to carry a 
station that will change channels; or
    (iii) Will become obligated to carry the station due to a channel 
sharing relocation.
    (2) The notice required by this section must contain the following 
information:
    (i) Date and time of any channel changes;
    (ii) The channel occupied by the station before and after 
implementation of the CSA;
    (iii) Modification, if any, to antenna position, location, or power 
levels;
    (iv) Stream identification information; and
    (v) Engineering staff contact information.
    (3) Sharee stations (those relinquishing a channel in order to 
share) must provide notice as required by this section at least 30 days 
prior to terminating operations on the sharee's channel. Sharer 
stations (those hosting a sharee as part of a channel sharing 
agreement) and sharee stations must provide notice as required by this 
section at least 30 days prior to initiation of operations on the 
sharer channel. Should the anticipated date to either cease operations 
or commence channel sharing operations change, the station(s) must send 
a further notice to affected MVPDs informing them of the new 
anticipated date(s).
    (4) Notifications provided to cable systems pursuant to this 
section must be either mailed to the system's official address of 
record provided in the cable system's most recent filing in the FCC's 
Cable Operations and Licensing System (COALS) Form 322, or emailed to 
the system if the system has provided an email address. For all other 
MVPDs, the letter must be addressed to the official corporate address 
registered with their State of incorporation.

[FR Doc. 2016-00059 Filed 1-29-16; 8:45 am]
 BILLING CODE 6712-01-P



                                                 5086                      Federal Register / Vol. 81, No. 20 / Monday, February 1, 2016 / Proposed Rules

                                                 the Postal Service routinely implements                   does not change the Postal Service’s                   PART 3001—RULES OF PRACTICE
                                                 mail preparation changes at the same                      burden to first determine whether the                  AND PROCEDURE
                                                 time notice of the change is provided to                  mail preparation change has a rate effect
                                                 the mailer. It is at this time the 30-day                 under the Commission’s standard                        ■ 1. The authority citation of part 3001
                                                 clock to file a motion with the                           articulated in Order No. 3047. The                     continues to read as follows:
                                                 Commission would be triggered.                            proposed rule also does not change the                   Authority: 39 U.S.C. 404(d); 503; 504;
                                                 Alternatively, when the Postal Service                    Postal Service’s obligation to comply                  3661.
                                                 publishes notice of a mail preparation                    with the rules regarding the price cap,
                                                 change that it intends to implement on                                                                           ■ 2. Amend § 3001.21 by adding
                                                                                                           which require the Postal Service to                    paragraph (d) to read as follows:
                                                 a date certain in the future, the 30-day                  adjust for the effects of mail preparation
                                                 clock would be triggered upon notice of                   changes that result in the introduction,               § 3001.21   Motions
                                                 the implementation date, not from the                     deletion, or redefinition of a rate cell.              *     *     *     *     *
                                                 actual date of implementation.                            Rather, the proposed rule provides an                    (d) Motions concerning mail
                                                    The Full Service IMb change serves as                  avenue for interested parties to raise the             preparation changes. Motions regarding
                                                 an example of how the proposed 30-day                     possibility that the Postal Service may                mail preparation changes are challenges
                                                 timeframe would work. The Full Service                    have erred by failing to account for the               to instances where an announced mail
                                                 IMb change was published as a revision                    price cap impact of a mail preparation                 preparation change does not contain a
                                                 to the Postal Service’s Domestic Mail                     change.                                                Postal Service indication that the
                                                 Manual and set forth in a Federal
                                                 Register notice on April 18, 2013.2 In                    IV. Comments Requested                                 change has a rate effect requiring
                                                 the Notice, the Postal Service indicated                                                                         compliance with § 3010.23(d)(2) of this
                                                 it planned to implement this change to                       Interested persons are invited to                   chapter. Motions may be filed by any
                                                 the IMb requirements beginning on                         provide written comments concerning                    interested party and shall set forth with
                                                 January 26, 2014. Id. Accordingly, under                  the proposed rule. Comments are due no                 particularity the mail preparation
                                                 the Commission’s proposed rule,                           later than 30 days after the date of                   change at issue and the grounds by
                                                 mailers would be required to file a                       publication of this notice in the Federal              which the mail preparation change must
                                                 motion with the Commission within 30                      Register. All comments and suggestions                 comply with § 3010.23(d)(2) of this
                                                 days of the Notice (by May 20, 2013,                      received will be available for review on               chapter. Motions concerning mail
                                                 allowing for a Monday filing), not                        the Commission’s Web site, http://                     preparation changes must be filed at
                                                 within 30 days of the January 26, 2014                    www.prc.gov.                                           least 30 days after a party has actual or
                                                 implementation date.                                                                                             constructive notice of the
                                                                                                              Pursuant to 39 U.S.C. 505, Kenneth E.               implementation date of the change.
                                                    The proposed procedure is intended                     Richardson is appointed to serve as an
                                                 to provide a reasonable but definite                      officer of the Commission (Public                      [FR Doc. 2016–01735 Filed 1–29–16; 8:45 am]
                                                 timeframe by which interested parties                     Representative) to represent the                       BILLING CODE 7710–FW–P
                                                 may challenge a mail preparation                          interests of the general public in the
                                                 change where the Postal Service has                       above-captioned docket.
                                                 failed to indicate that it would be                                                                              FEDERAL COMMUNICATIONS
                                                 subject to the price cap rules. The                       IV. Ordering Paragraphs                                COMMISSION
                                                 Commission intends for the proposed
                                                 rule to encourage the Postal Service to                     It is ordered:                                       47 CFR Part 73
                                                 affirmatively designate only those                          1. Docket No. RM2016–6 is
                                                 changes that require compliance with                      established for the purpose of receiving               [MB Docket No. 03–185; GN Docket No. 12–
                                                 § 3010.23(d)(2). For example, in a                                                                               268; ET Docket No. 14–175; FCC 15–175]
                                                                                                           comments on the proposed change to
                                                 Federal Register notice implementing a                    part 3001, as discussed in this Order.                 Low Power Television Digital Rules
                                                 mail preparation change that implicated
                                                                                                             2. Interested persons may submit
                                                 the price cap, the Postal Service would                                                                          AGENCY:  Federal Communications
                                                                                                           comments no later than 30 days from
                                                 confirm that the change would be                                                                                 Commission.
                                                                                                           the date of the publication of this notice
                                                 subject to the price cap. For a change                                                                           ACTION: Proposed rule.
                                                                                                           in the Federal Register.
                                                 that does not implicate the price cap,
                                                 the Federal Register notice would be                        3. Pursuant to 39 U.S.C. 505, Kenneth                SUMMARY:    In this document, the Federal
                                                 silent and the absence of such a                          E. Richardson is appointed to serve as                 Communications Commission
                                                 designation will inform mailers that the                  the Public Representative in this                      (Commission) seeks comment on
                                                 Postal Service does not recognize this                    proceeding.                                            additional issues relating to channel
                                                 change as requiring price cap                               4. The Secretary shall arrange for                   sharing outside of the auction context
                                                 compliance.                                               publication of this Order in the Federal               and announces that it intends to resolve
                                                    The procedure is also intended to                      Register.                                              all of the outstanding issues regarding
                                                 allow the Postal Service to implement                                                                            channel sharing outside the incentive
                                                 mail preparation changes with limited                       By the Commission.
                                                                                                                                                                  auction context, including those raised
                                                 disruption. The proposed rule is not                      Stacy L. Ruble,                                        in a prior notice, in a forthcoming
                                                 intended to stay implementation of any                    Secretary.                                             decision.
                                                 mail preparation change required by the
                                                                                                                                                                         Comments Due: February 22,
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                                                                                                           List of Subjects in 39 CFR Part 3001                   DATES:
                                                 Postal Service, rather it is intended to
                                                 set forth a reasonable timeframe by                                                                              2016. Reply Comments Due: March 3,
                                                                                                             Administrative practice and                          2016.
                                                 which users of the mail may file a                        procedure, Postal Service.
                                                 motion with the Commission where                                                                                 ADDRESSES:   You may submit comments,
                                                 such mail preparation changes may                           For the reasons discussed in the                     identified by MB Docket No. 03–185,
                                                 have rate effects. The proposed rule                      preamble, the Commission proposes to                   GN Docket No. 12–268 and ET Docket
                                                                                                           amend chapter III of title 39 of the Code              No. 14–175 and/or FCC 15–175, by any
                                                   2 78   FR 23137 (April18, 2013) (Notice).               of Federal Regulations as follows:                     of the following methods:


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                                                                        Federal Register / Vol. 81, No. 20 / Monday, February 1, 2016 / Proposed Rules                                                       5087

                                                    • Federal eRulemaking Portal: http://                information collection requirements                    proposed in the Primary-Primary
                                                 www.regulations.gov. Follow the                         contained in this document, as required                Channel Sharing NPRM. The
                                                 instructions for submitting comments.                   by the Paperwork Reduction Act of                      Commission also proposed to not
                                                    • Federal Communications                             1995, Public Law 104–13, see 44 U.S.C.                 reimburse the costs imposed on MVPDs
                                                 Commission’s Web site: http://                          3507. In addition, pursuant to the Small               as a result of CSAs between secondary
                                                 www.fcc.gov/cgb/ecfs/. Follow the                       Business Paperwork Relief Act of 2002,                 stations or between primary and
                                                 instructions for submitting comments.                   Public Law 107–198, see 44 U.S.C.                      secondary stations. The Commission
                                                    • Mail: Filings can be sent by hand or               3506(c)(4), we seek specific comment on                also sought comment on issues
                                                 messenger delivery, by commercial                       how we might further reduce the                        pertaining to MVPD carriage in the
                                                 overnight courier, or by first-class or                 information collection burden for small                context of both primary-secondary and
                                                 overnight U.S. Postal Service mail                      business concerns with fewer than 25                   secondary-secondary sharing. The
                                                 (although we continue to experience                     employees.                                             Commission tentatively conclude that a
                                                 delays in receiving U.S. Postal Service                                                                        secondary station that shares with a
                                                                                                         Synopsis
                                                 mail.) All filings must be addressed to                                                                        primary or secondary sharer station, and
                                                 the Commission’s Secretary, Office of                      1. In this Fourth Notice, the                       a primary station that shares with a
                                                 the Secretary, Federal Communications                   Commission tentatively concluded to                    secondary sharer station, has the same
                                                 Commission.                                             allow channel sharing between primary                  satellite and cable carriage rights under
                                                    • People with Disabilities: Contact the              (full power and Class A television) and                the Communications Act on their new
                                                 FCC to request reasonable                               secondary (LPTV and TV translator)                     shared channels that the station would
                                                 accommodations (accessible format                       stations and, in the event that it decides
                                                                                                                                                                have at the shared location if it was not
                                                 documents, sign language interpreters,                  to allow such channel sharing, it
                                                                                                                                                                channel sharing. The Commission
                                                 CART, etc.) by email: FCC504@fcc.gov                    proposes rules for primary-secondary
                                                                                                                                                                proposed to adopt the same approach to
                                                 or phone: 202–418–0530 or TTY: 202–                     sharing that are consistent with those
                                                                                                                                                                MVPD carriage for both primary-
                                                 418–0432.                                               adopted for secondary-secondary
                                                                                                                                                                secondary and secondary-secondary
                                                    For detailed instructions for                        sharing in the companion Third Report
                                                                                                                                                                sharing as we proposed in the Primary-
                                                 submitting comments and additional                      and Order, FCC 15–175, released
                                                                                                                                                                Primary Channel Sharing NPRM to
                                                 information on the rulemaking process,                  December 17, 2015, and proposed for
                                                                                                                                                                fulfill the objectives underlying Section
                                                 see the SUPPLEMENTARY INFORMATION                       primary-primary sharing outside of the
                                                                                                                                                                1452(a)(4), with one modification. Given
                                                 section of this document.                               auction context in the Primary-Primary
                                                                                                         Channel Sharing NPRM, 30 FCC Rcd                       the relatively small number of unbuilt
                                                 FOR FURTHER INFORMATION CONTACT:                                                                               LPTV stations that would meet the
                                                 Shaun Maher, Shaun.Maher@fcc.gov of                     6668 (2015) (Primary-Primary Channel
                                                                                                         Sharing NPRM). This includes licensing                 criteria for obtaining cable carriage, the
                                                 the Media Bureau, Video Division, (202)                                                                        Commission proposed to permit
                                                 418–2324. For additional information                    rules, operating rules, and rules
                                                                                                         regarding termination, assignment/                     secondary stations to become sharees
                                                 concerning the PRA information                                                                                 regardless of whether they possessed
                                                 collection requirements contained in                    transfer, and relinquishment of channel
                                                                                                         sharing rights.                                        carriage rights or were operating on a
                                                 this document, contact Cathy Williams,                                                                         non-shared channel prior to entering
                                                                                                            2. The Commission sought comment
                                                 Federal Communications Commission,                                                                             into a sharing agreement.
                                                                                                         on whether it would be appropriate for
                                                 at (202) 418–2918, or via email
                                                                                                         a secondary station to be permitted to                 Initial Regulatory Flexibility Act
                                                 Cathy.Williams@fcc.gov.
                                                                                                         obtain ‘‘de facto’’ interference protection            Analysis
                                                 SUPPLEMENTARY INFORMATION:      This is a               by sharing with a primary station. It also
                                                 summary of the Commission’s Fourth                      sought comment on whether it would be                     As required by the Regulatory
                                                 Notice. The full text is available for                  appropriate to allow a secondary station               Flexibility Act of 1980, as amended
                                                 inspection and copying during regular                   to obtain the coverage area of a primary               (‘‘RFA’’) 1 the Commission has prepared
                                                 business hours in the FCC Reference                     station through channel sharing. In                    this present Initial Regulatory
                                                 Center, 445 12th Street SW., Room CY–                   addition, it sought comment on whether                 Flexibility Analysis (‘‘IRFA’’)
                                                 A257, Portals II, Washington, DC 20554,                 the benefits of channel sharing between                concerning the possible significant
                                                 and may also be purchased from the                      a primary station and a secondary                      economic impact on small entities by
                                                 Commission’s copy contractor, BCPI,                     station could be obtained alternatively                the policies and rules proposed in this
                                                 Inc., Portals II, 445 12th Street SW.,                  by the primary station entering into a                 Fourth Notice of Proposed Rulemaking
                                                 Room CY–B402, Washington, DC 20554.                     commercial agreement to air the                        (FNPRM). Written public comments are
                                                 Customers may contact BCPI, Inc. via                    secondary station’s programming as a                   requested on this IRFA. Comments must
                                                 their Web site, http://www.bcpi.com, or                 multicast stream. The Commission                       be identified as responses to the IRFA
                                                 call 1–800–378–3160. This document is                   announced that it intended to resolve all              and must be filed by the deadlines for
                                                 available in alternative formats                        of the outstanding issues regarding                    comments indicated on the first page of
                                                 (computer diskette, large print, audio                  channel sharing outside the incentive                  the (FNPRM). The Commission will
                                                 record, and Braille). Persons with                      auction context in a single decision,                  send a copy of the (FNPRM), including
                                                 disabilities who need documents in                      based on the record developed in both                  this IRFA, to the Chief Counsel for
                                                 these formats may contact the FCC by                    proceedings. This approach will also                   Advocacy of the Small Business
                                                 email: FCC504@fcc.gov or phone: 202–                    ensure consistency and promote                         Administration (SBA).2 In addition, the
                                                 418–0530 or TTY: 202–418–0432.                          efficient decision-making regarding                    Notice and IRFA (or summaries thereof)
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                                                   Paperwork Reduction Act of 1995                       these issues, without unduly delaying
                                                 Analysis: This document contains new                    their final resolution.                                   1 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et.
                                                 or modified information collection                         3. For both primary-secondary and                   seq., has been amended by the Small Business
                                                 requirements. The Commission, as part                   secondary-secondary sharing, the                       Regulatory Enforcement Fairness Act of 1996
                                                 of its continuing effort to reduce                      Commission proposed to adopt rules                     (‘‘SBREFA’’), Public Law 104–121, Title II, 110 Stat.
                                                                                                                                                                847 (1996). The SBREFA was enacted as Title II of
                                                 paperwork burdens, invites the general                  pertaining to the term length of channel               the Contract With America Advancement Act of
                                                 public and the Office of Management                     sharing agreements (CSAs) and MVPD                     1996 (‘‘CWAAA’’).
                                                 and Budget (OMB) to comment on the                      notice consistent with what we have                       2 See 5 U.S.C. 603(a).




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                                                 5088                    Federal Register / Vol. 81, No. 20 / Monday, February 1, 2016 / Proposed Rules

                                                 will be published in the Federal                        statutory definition of a small business                aggregate revenues from affiliated
                                                 Register.3                                              applies unless an agency establishes one                companies. In addition, an element of
                                                                                                         or more definitions of such term which                  the definition of ‘‘small business’’ is that
                                                 Need for and Objectives of the Proposed
                                                                                                         are appropriate to the activities of the                the entity not be dominant in its field
                                                 Rules
                                                                                                         agency and publishes such definition(s)                 of operation. We are unable at this time
                                                    In the Notice, the Commission seeks                  in the Federal Register. A small                        to define or quantify the criteria that
                                                 comment on additional issues relating                   business concern is one which: (1) Is                   would establish whether a specific
                                                 to channel sharing between primary                      independently owned and operated; (2)                   television station is dominant in its field
                                                 (full power and Class A) and secondary                  is not dominant in its field of operation;              of operation. Accordingly, the estimate
                                                 (LPTV and TV translator) stations                       and (3) satisfies any additional criteria               of small businesses to which rules may
                                                 (‘‘primary-secondary sharing’’), as well                established by the SBA.7                                apply does not exclude any television
                                                 as between secondary stations                              Television Broadcasting. This                        station from the definition of a small
                                                 (‘‘secondary-secondary sharing’’),                      economic census category ‘‘comprises                    business on this basis and is therefore
                                                 outside of the auction context. First, the              establishments primarily engaged in                     possibly over-inclusive to that extent.
                                                 Commission tentatively concludes to                     broadcasting images together with                          In addition, the Commission has
                                                 permit channel sharing between                          sound. These establishments operate                     estimated the number of licensed
                                                 primary and secondary stations and                      television broadcasting studios and                     noncommercial educational (‘‘NCE’’)
                                                 proposes rules for primary-secondary                    facilities for the programming and                      television stations to be 395.13 These
                                                 sharing that are consistent with those                  transmission of programs to the                         stations are non-profit, and therefore
                                                 adopted for secondary-secondary                         public.’’ 8 The SBA has created the                     considered to be small entities.14
                                                 sharing in the Third Report and Order,                  following small business size standard                     There are also 2,344 LPTV stations,
                                                 FCC 15–175, released December 17,                       for Television Broadcasting firms: those                including Class A stations, and 3689 TV
                                                 2015 (Third R&O), and proposed for                      having $14 million or less in annual                    translator stations.15 Given the nature of
                                                 primary-primary sharing outside of the                  receipts.9 The Commission has                           these services, we will presume that all
                                                 auction context in the Primary-Primary                  estimated the number of licensed                        of these entities qualify as small entities
                                                 Channel Sharing NPRM, 30 FCC Rcd                        commercial television stations to be                    under the above SBA small business
                                                 6668 (2015) (Primary-Primary Channel                    1,390.10 In addition, according to                      size standard.
                                                 Sharing NPRM). Moreover, with respect                   Commission staff review of the BIA                         Wired Telecommunications Carriers.
                                                 to both primary-secondary and                           Advisory Services, LLC’s Media Access                   The North American Industry
                                                 secondary-secondary sharing outside of                  Pro Television Database on March 28,                    Classification System (‘‘NAICS’’) defines
                                                 the incentive auction context, the                      2012, about 950 of an estimated 1,300                   ‘‘Wired Telecommunications Carriers’’
                                                 Commission seeks comment on issues                      commercial television stations (or                      as follows: ‘‘This industry comprises
                                                 pertaining to the term length of channel                approximately 73 percent) had revenues                  establishments primarily engaged in
                                                 sharing agreements and issues                           of $14 million or less.11 We therefore                  operating and/or providing access to
                                                 pertaining to multichannel video                        estimate that the majority of commercial                transmission facilities and infrastructure
                                                 programming distributors (MVPD)                         television broadcasters are small                       that they own and/or lease for the
                                                 carriage, reimbursement, and notice.                    entities.                                               transmission of voice, data, text, sound,
                                                 Legal Basis                                                We note, however, that in assessing                  and video using wired
                                                                                                         whether a business concern qualifies as                 telecommunications networks.
                                                   The authority for the action proposed                 small under the above definition,                       Transmission facilities may be based on
                                                 in this rulemaking is contained in                      business (control) affiliations must be                 a single technology or a combination of
                                                 sections 1, 4, 301, 303, 307, 308, 309,                 included.12 Our estimate, therefore,
                                                 310, 316, 319, 338, 403, 614 and 615 of                                                                         technologies. Establishments in this
                                                                                                         likely overstates the number of small                   industry use the wired
                                                 the Communications Act of 1934, as                      entities that might be affected by our
                                                 amended, 47 U.S.C. 151, 154, 301, 303,                                                                          telecommunications network facilities
                                                                                                         action because the revenue figure on                    that they operate to provide a variety of
                                                 307, 308, 309, 310, 316, 319, 338, 403,                 which it is based does not include or
                                                 614 and 615.                                                                                                    services, such as wired telephony
                                                                                                                                                                 services, including VoIP services; wired
                                                 Description and Estimate of the Number                  U.S.C. 632). Pursuant to 5 U.S.C. 601(3), the           (cable) audio and video programming
                                                 of Small Entities to Which the Proposed                 statutory definition of a small business applies 5
                                                                                                         U.S.C. 601(3).
                                                                                                                                                                 distribution; and wired broadband
                                                 Rules Will Apply                                           7 15 U.S.C. 632. Application of the statutory        Internet services. By exception,
                                                    The RFA directs the Commission to                    criteria of dominance in its field of operation and     establishments providing satellite
                                                 provide a description of and, where                     independence are sometimes difficult to apply in        television distribution services using
                                                                                                         the context of broadcast television. Accordingly, the   facilities and infrastructure that they
                                                 feasible, an estimate of the number of                  Commission’s statistical account of television
                                                 small entities that will be affected by the             stations may be over-inclusive.                         operate are included in this
                                                 proposed rules, if adopted.4 The RFA                       8 U.S. Census Bureau, 2012 NAICS Definitions:        industry.’’ 16 The SBA has developed a
                                                 generally defines the term ‘‘small                      515120 Television Broadcasting, http://
                                                 entity’’ as having the same meaning as                  www.census.gov/cgi-bin/sssd/naics/                         13 See FCC News Release, Broadcast Station
                                                                                                         naicsrch?code=515120&search=2012 (last visited          Totals as of March 31, 2015 (rel. April 8, 2015).
                                                 the terms ‘‘small business,’’ small                     Mar. 6, 2014). U.S. Census Bureau, 2012 NAICS              14 See generally 5 U.S.C. 601(4), (6).
                                                 organization,’’ and ‘‘small government                  Definitions: 515120 Television Broadcasting,               15 See FCC News Release, Broadcast Station
                                                 jurisdiction.’’ 5 In addition, the term                 http://www.census.gov/cgi-bin/sssd/naics/               Totals as of March 31, 2015 (rel. April 8, 2015).
                                                                                                         naicsrch?code=515120&search=2012 (last visited
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                                                 ‘‘small business’’ has the same meaning                                                                            16 U.S. Census Bureau, 2012 NAICS Definitions,
                                                                                                         Mar. 6, 2014).
                                                 as the term ‘‘small business concern’’                     9 13 CFR 121.201 (NAICS code 515120) (updated
                                                                                                                                                                 ‘‘517110 Wired Telecommunications Carriers’’ at
                                                 under the Small Business Act.6 The                                                                              http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
                                                                                                         for inflation in 2010).                                 Examples of this category are: Broadband Internet
                                                                                                            10 See FCC News Release, Broadcast Station
                                                                                                                                                                 service providers (e.g., cable, DSL); local telephone
                                                   3 Id.                                                 Totals as of March 31, 2015 (rel. April 8, 2015).       carriers (wired); cable television distribution
                                                   4 Id. at section 603(b)(3).                              11 We recognize that BIA’s estimate differs
                                                                                                                                                                 services; long-distance telephone carriers (wired);
                                                   55  U.S.C. 601(6).                                    slightly from the FCC total given the information       closed circuit television (‘‘CCTV’’) services; VoIP
                                                   6 Id. at section 601(3) (incorporating by reference   provided above.                                         service providers, using own operated wired
                                                 the definition of ‘‘small business concern’’ in 15         12 13 CFR 121.103(a)(1).                             telecommunications infrastructure; direct-to-home



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                                                                          Federal Register / Vol. 81, No. 20 / Monday, February 1, 2016 / Proposed Rules                                                        5089

                                                 small business size standard for                          Industry data shows that there are                      find that all but ten incumbent cable
                                                 wireline firms for the broad economic                     currently 660 cable operators.25 Of this                operators are small entities under this
                                                 census category of ‘‘Wired                                total, all but ten cable operators                      size standard.32 We note that the
                                                 Telecommunications Carriers.’’ Under                      nationwide are small under this size                    Commission neither requests nor
                                                 this category, a wireline business is                     standard.26 In addition, under the                      collects information on whether cable
                                                 small if it has 1,500 or fewer                            Commission’s rate regulation rules, a                   system operators are affiliated with
                                                 employees.17 Census data for 2007                         ‘‘small system’’ is a cable system serving              entities whose gross annual revenues
                                                 shows that there were 3,188 firms that                    15,000 or fewer subscribers.27 Current                  exceed $250 million.33 Although it
                                                 operated for the entire year.18 Of this                   Commission records show 4,629 cable                     seems certain that some of these cable
                                                 total, 3,144 firms had fewer than 1,000                   systems nationwide.28 Of this total,                    system operators are affiliated with
                                                 employees, and 44 firms had 1,000 or                      4,057 cable systems have less than                      entities whose gross annual revenues
                                                 more employees.19 Therefore, under this                   20,000 subscribers, and 572 systems                     exceed $250,000,000, we are unable at
                                                 size standard, we estimate that the                       have 20,000 or more subscribers, based                  this time to estimate with greater
                                                 majority of businesses can be                             on the same records. Thus, under this                   precision the number of cable system
                                                 considered small entities.                                standard, we estimate that most cable                   operators that would qualify as small
                                                   Cable Television Distribution                           systems are small entities.                             cable operators under the definition in
                                                 Services. Since 2007, these services                         Cable System Operators (Telecom Act                  the Communications Act.
                                                 have been defined within the broad                        Standard). The Communications Act of                       Direct Broadcast Satellite (DBS)
                                                 economic census category of Wired                         1934, as amended, also contains a size                  Service. DBS service is a nationally
                                                 Telecommunications Carriers, which                        standard for small cable system                         distributed subscription service that
                                                 category is defined above.20 The SBA                      operators, which is ‘‘a cable operator                  delivers video and audio programming
                                                 has developed a small business size                       that, directly or through an affiliate,                 via satellite to a small parabolic ‘‘dish’’
                                                 standard for this category, which is: All                 serves in the aggregate fewer than 1                    antenna at the subscriber’s location.
                                                 such businesses having 1,500 or fewer                     percent of all subscribers in the United                DBS, by exception, is now included in
                                                 employees.21 Census data for 2007                         States and is not affiliated with any                   the SBA’s broad economic census
                                                 shows that there were 3,188 firms that                    entity or entities whose gross annual                   category, Wired Telecommunications
                                                 operated for the entire year.22 Of this                   revenues in the aggregate exceed                        Carriers,34 which was developed for
                                                 total, 3,144 firms had fewer than 1,000                   $250,000,000.’’ 29 There are                            small wireline businesses. Under this
                                                 employees, and 44 firms had 1,000 or                      approximately 54 million cable video                    category, the SBA deems a wireline
                                                 more employees.23 Therefore, under this                   subscribers in the United States today.30               business to be small if it has 1,500 or
                                                 size standard, we estimate that the                       Accordingly, an operator serving fewer                  fewer employees.35 Census data for 2007
                                                 majority of businesses can be                             than 540,000 subscribers shall be                       shows that there were 3,188 firms that
                                                 considered small entities.                                deemed a small operator if its annual
                                                   Cable Companies and Systems. The                                                                                operated for that entire year.36 Of this
                                                                                                           revenues, when combined with the total
                                                 Commission has developed its own                          annual revenues of all its affiliates, do                  32 See NCTA, Industry Data, Top 25 Multichannel
                                                 small business size standards for the                     not exceed $250 million in the                          Video Service Customers (2012), http://www.ncta.
                                                 purpose of cable rate regulation. Under                   aggregate.31 Based on available data, we                com/industry-data (visited Aug. 30, 2013).
                                                 the Commission’s rules, a ‘‘small cable                                                                              33 The Commission does receive such information

                                                 company’’ is one serving 400,000 or                                                                               on a case-by-case basis if a cable operator appeals
                                                                                                           size standard of $100 million or less in annual
                                                                                                                                                                   a local franchise authority’s finding that the
                                                 fewer subscribers nationwide.24                           revenues. Implementation of Sections of the Cable
                                                                                                                                                                   operator does not qualify as a small cable operator
                                                                                                           Television Consumer Protection And Competition
                                                                                                                                                                   pursuant to § 76.901(f) of the Commission’s rules.
                                                 satellite system (‘‘DTH’’) services;                      Act of 1992: Rate Regulation, MM Docket No. 92–
                                                                                                                                                                   See 47 CFR 76.901(f).
                                                 telecommunications carriers (wired); satellite            266, MM Docket No. 93–215, Sixth Report and                34 See 13 CFR 121.201, 2012 NAICS code 517110.
                                                 television distribution systems; and multichannel         Order and Eleventh Order on Reconsideration, 10
                                                                                                           FCC Rcd 7393, 7408, ¶ 28 (1995).                        This category of Wired Telecommunications
                                                 multipoint distribution services (‘‘MMDS’’).                                                                      Carriers is defined as follows: ‘‘This industry
                                                                                                              25 NCTA, Industry Data, Number of Cable
                                                    17 13 CFR 121.201; NAICS code 517110.
                                                                                                                                                                   comprises establishments primarily engaged in
                                                    18 U.S. Census Bureau, 2007 Economic Census.           Operators and Systems, http://www.ncta.com/
                                                                                                                                                                   operating and/or providing access to transmission
                                                 See U.S. Census Bureau, American FactFinder,              Statistics.aspx (visited October 13, 2014).
                                                                                                                                                                   facilities and infrastructure that they own and/or
                                                 ‘‘Information: Subject Series—Estab and Firm Size:        Depending upon the number of homes and the size
                                                                                                                                                                   lease for the transmission of voice, data, text,
                                                 Employment Size of Establishments for the United          of the geographic area served, cable operators use
                                                                                                                                                                   sound, and video using wired telecommunications
                                                 States: 2007—2007 Economic Census,’’ NAICS code           one or more cable systems to provide video service.
                                                                                                                                                                   networks. Transmission facilities may be based on
                                                 517110, Table EC0751SSSZ5; available at http://           See Annual Assessment of the Status of
                                                                                                                                                                   a single technology or a combination of
                                                 factfinder2.census.gov/faces/nav/jsf/pages/               Competition in the Market for Delivery of Video
                                                                                                                                                                   technologies. Establishments in this industry use
                                                 index.xhtml.                                              Programming, MB Docket No. 12–203, Fifteenth
                                                                                                                                                                   the wired telecommunications network facilities
                                                    19 Id. With respect to the latter 44 firms, there is   Report, 28 FCC Rcd 10496, 10505–6, ¶ 24 (2013)
                                                                                                                                                                   that they operate to provide a variety of services,
                                                 no data available that shows how many operated            (‘‘15th Annual Competition Report’’).
                                                                                                              26 See SNL Kagan, ‘‘Top Cable MSOs—12/12 Q’’;
                                                                                                                                                                   such as wired telephony services, including VoIP
                                                 with more than 1,500 employees.                                                                                   services; wired (cable) audio and video
                                                    20 See also U.S. Census Bureau, 2012 NAICS             available at http://www.snl.com/InteractiveX/           programming distribution; and wired broadband
                                                 Definitions, ‘‘517110 Wired Telecommunications            TopCableMSOs.aspx?period=2012Q4&sortcol=                Internet services. By exception, establishments
                                                 Carriers’’ at http://www.census.gov/cgi-bin/sssd/         subscribersbasic&sortorder=desc.                        providing satellite television distribution services
                                                                                                              27 47 CFR 76.901(c).
                                                 naics/naicsrch.                                                                                                   using facilities and infrastructure that they operate
                                                                                                              28 The number of active, registered cable systems
                                                    21 13 CFR. 121.201; NAICS code 517110.                                                                         are included in this industry.’’ (Emphasis added to
                                                    22 U.S. Census Bureau, 2007 Economic Census.           comes from the Commission’s Cable Operations and        text relevant to satellite services.) U.S. Census
                                                 See U.S. Census Bureau, American FactFinder,              Licensing System (COALS) database on October 10,        Bureau, 2012 NAICS Definitions, ‘‘517110 Wired
                                                 ‘‘Information: Subject Series—Estab and Firm Size:        2014. A cable system is a physical system integrated    Telecommunications Carriers,’’ at http://www.
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                                                 Employment Size of Establishments for the United          to a principal headend.                                 census.gov/cgi-bin/sssd/naics/naicsrch.
                                                                                                              29 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn.
                                                 States: 2007—2007 Economic Census,’’ NAICS code                                                                      35 13 CFR 121.201; 2012 NAICS code 517110.

                                                 517110, Table EC0751SSSZ5; available at http://           1–3.                                                       36 U.S. Census Bureau, 2007 Economic Census.
                                                 factfinder2.census.gov/faces/nav/jsf/pages/                  30 See NCTA, Industry Data, Cable’s Customer
                                                                                                                                                                   See U.S. Census Bureau, American FactFinder,
                                                 index.xhtml.                                              Base, http://www.ncta.com/industry-data (visited        ‘‘Information: Subject Series—Estab and Firm Size:
                                                    23 Id. With respect to the latter 44 firms, there is   October 13, 2014).                                      Employment Size of Establishments for the United
                                                 no data available that shows how many operated               31 47 CFR 76.901(f); see FCC Announces New           States: 2007—2007 Economic Census,’’ NAICS code
                                                 with more than 1,500 employees.                           Subscriber Count for the Definition of Small Cable      517110, Table EC0751SSSZ5; available at http://
                                                    24 47 CFR 76.901(e). The Commission determined         Operator, Public Notice, 16 FCC Rcd 2225 (Cable         factfinder2.census.gov/faces/tableservices/jsf/
                                                 that this size standard equates approximately to a        Services Bureau 2001).                                                                              Continued




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                                                 5090                   Federal Register / Vol. 81, No. 20 / Monday, February 1, 2016 / Proposed Rules

                                                 total, 2,940 firms had fewer than 100                   of the license of a party to a CSA only                  operating rules for channel sharing that
                                                 employees, and 248 firms had 100 or                     one party to the CSA remains, the                        are designed to minimize the burden
                                                 more employees.37 Therefore, under this                 remaining licensee may file an                           and cost on small entities. The
                                                 size standard, the majority of such                     application to change its license to non-                Commission will consider all comments
                                                 businesses can be considered small                      shared status. The existing collection                   submitted in connection with the
                                                 entities. However, the data we have                     concerning the execution and filing of                   (FNPRM), including any suggested
                                                 available as a basis for estimating the                 CSAs will need to be revised.                            alternative approaches to channel
                                                 number of such small entities were                        Finally, the Commission proposes to                    sharing that would reduce the burden
                                                 gathered under a superseded SBA small                   require channel sharing stations to                      and costs on smaller entities.
                                                 business size standard formerly titled                  notify affected MVPDs.                                      The rules to provide notice to MVPDs
                                                 ‘‘Cable and Other Program                               Steps Taken To Minimize Significant                      were also designed to minimize impact
                                                 Distribution.’’ As of 2002, the SBA                     Impact on Small Entities, and                            on small entities. Very few stations will
                                                 defined a small Cable and Other                         Significant Alternatives Considered                      be impacted because very few LPTV and
                                                 Program Distribution provider as one                                                                             TV translator stations have carriage
                                                 with $12.5 million or less in annual                       The RFA requires an agency to                         rights and will be subject to the notice
                                                 receipts.38 Currently, only two entities                describe any significant alternatives that               requirement.
                                                 provide DBS service, which requires a                   it has considered in reaching its
                                                 great investment of capital for operation:              proposed approach, which may include                     Federal Rules Which Duplicate,
                                                 DIRECTV and DISH Network.39 Each                        the following four alternatives (among                   Overlap, or Conflict With the
                                                 currently offers subscription services.                 others): (1) The establishment of                        Commission’s Proposals
                                                 DIRECTV and DISH Network each                           differing compliance or reporting                          None.
                                                 report annual revenues that are in                      requirements or timetables that take into
                                                                                                         account the resources available to small                 List of Subjects in 47 CFR Part 73
                                                 excess of the threshold for a small
                                                 business. Because DBS service requires                  entities; (2) the clarification,                           Television.
                                                 significant capital, we believe it is                   consolidation, or simplification of                      Federal Communications Commission.
                                                 unlikely that a small entity as defined                 compliance or reporting requirements
                                                                                                                                                                  Sheryl Todd,
                                                 under the superseded SBA size standard                  under the rule for small entities; (3) the
                                                                                                         use of performance, rather than design,                  Deputy Secretary.
                                                 would have the financial wherewithal to
                                                 become a DBS service provider.                          standards; and (4) an exemption from                     Proposed Rules
                                                                                                         coverage of the rule, or any part thereof,
                                                 Description of Projected Reporting,                                                                                For the reasons discussed in the
                                                                                                         for small entities.40
                                                 Recordkeeping and Other Compliance                                                                               preamble, the Federal Communications
                                                                                                            The (FNPRM)proposes rules
                                                 Requirements                                            pertaining to primary and secondary                      Commission proposes to amend 47 CFR
                                                                                                         station channel sharing outside the                      part 73 as follows:
                                                    The (FNPRM) proposes the following
                                                 new or revised reporting or                             context of the incentive auction. The                    PART 73—RADIO BROADCAST
                                                 recordkeeping requirements.                             Commission has previously concluded                      SERVICES
                                                    To implement channel sharing                         that channel sharing can help
                                                 between primary and secondary                           broadcasters, including existing small,                  ■ 1. The authority citation for Part 73
                                                 stations, stations will follow a two-step               minority-owned, and niche stations, to                   continues to read as follows:
                                                 process proposed by the Commission—                     reduce operating costs and provide
                                                                                                                                                                    Authority: 47 U.S.C. 154, 303, 334, 336
                                                 first filing an application for                         broadcasters with additional net income                  and 339.
                                                 construction permit and then                            to strengthen operations and improve
                                                 application for license. Stations                       programming services. Thus, the                          ■ 2. In § 73.3572, revise paragraph (a)(3)
                                                 terminating operations to share a                       proposals in the Fourth Notice may help                  to read as follows:
                                                 channel would be required to submit a                   smaller broadcasters conserve resources.                 § 73.3572 Processing of TV broadcast,
                                                 termination notice pursuant to the                      In addition, channel sharing is                          Class A TV broadcast, low power TV, TV
                                                 existing Commission rule. These                         voluntary and only those stations that                   translators, and TV booster applications.
                                                 existing forms and collections will need                determine that channel sharing will be                      (a) * * *
                                                 to be revised to accommodate these new                  advantageous will enter into this                           (3) Other changes will be considered
                                                 channel-sharing related filings and to                  arrangement. With respect to LPTV and                    minor including changes made to
                                                 expand the burden estimates. In                         TV translator stations specifically,                     implement a channel sharing
                                                 addition, the Commission proposes that                  channel sharing will allow such stations                 arrangement provided they comply with
                                                 channel sharing stations submit their                   that are displaced by the incentive                      the other provisions of this section and
                                                 channel sharing agreements (CSAs) with                  auction reorganization of spectrum to                    provided, until October 1, 2000,
                                                 the Commission and be required to                       reduce the cost of having to build a new                 proposed changes to the facilities of
                                                 include certain provisions in their                     facility to replace the one that was                     Class A TV, low power TV, TV
                                                 CSAs. In addition, if upon termination                  displaced; could minimize the number                     translator and TV booster stations, other
                                                                                                         of mutually exclusive applications filed                 than a change in frequency, will be
                                                 pages/productview.xhtml?pid=ECN_2007_US_                in the post-incentive auction                            considered minor only if the change(s)
                                                 51SSSZ5&prodType=table.                                 displacement window, thereby freeing                     will not increase the signal range of the
                                                   37 Id.
                                                                                                         up valuable channels for use by other                    Class A TV, low power TV or TV
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                                                   38 See 13 CFR 121.201, NAICS code 517510

                                                 (2002).
                                                                                                         displaced stations; and could be used as                 booster in any horizontal direction.
                                                   39 See 15th Annual Competition Report, 28 FCC         a means to prevent or settle the mutual                  *      *    *    *     *
                                                 Rcd at 10507, ¶ 27. As of June 2012, DIRECTV is         exclusivity of applications and avoid                    ■ 3. Add § 73.3800 to read as follows:
                                                 the largest DBS operator and the second largest         lengthy delays in the processing of their
                                                 MVPD in the United States, serving approximately        displacement applications. In addition,                  § 73.3800 Full Power Television Channel
                                                 19.9 million subscribers. DISH Network is the                                                                    Sharing Outside the Auction Context.
                                                 second largest DBS operator and the third largest       the (FNPRM)proposes licensing and
                                                 MVPD, serving approximately 14.1 million                                                                           (a) Channel sharing generally. (1)
                                                 subscribers. Id. at 10507, 10546, ¶ 27, 110–11.           40 5   U.S.C. 603(c)(1)–(c)(4).                        Subject to the provisions of this section,


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                                                                        Federal Register / Vol. 81, No. 20 / Monday, February 1, 2016 / Proposed Rules                                              5091

                                                 full power television stations may                      sharing licensee shall retain spectrum                 system’s most recent filing in the FCC’s
                                                 voluntarily seek Commission approval                    usage rights adequate to ensure a                      Cable Operations and Licensing System
                                                 to share a single six megahertz channel                 sufficient amount of the shared channel                (COALS) Form 322, or emailed to the
                                                 with other full power television, Class                 capacity to allow it to provide at least               system if the system has provided an
                                                 A, low power and TV translator                          one Standard Definition (SD) program                   email address. For all other MVPDs, the
                                                 television stations.                                    stream at all times.                                   letter must be addressed to the official
                                                    (2) Each station sharing a single                       (e) Termination and assignment/                     corporate address registered with their
                                                 channel pursuant to this section shall                  transfer of shared channel. Upon                       State of incorporation.
                                                 continue to be licensed and operated                    termination of the license of a party to               ■ 4. Revise § 73.6028 to read as follows:
                                                 separately, have its own call sign, and                 a CSA, the spectrum usage rights
                                                 be separately subject to all applicable                 covered by that license may revert to the              § 73.6028 Class A television channel
                                                 Commission obligations, rules, and                                                                             sharing outside the auction context.
                                                                                                         remaining parties to the CSA. Such
                                                 policies.                                               reversion shall be governed by the terms                  (a) Channel sharing generally. (1)
                                                    (b) Licensing of channel sharing                     of the CSA in accordance with                          Subject to the provisions of this section,
                                                 stations. A full power television                       paragraph (d)(1)(iv) of this section. If               Class A television stations or television
                                                 channel sharing station relinquishing its               upon termination of the license of a                   stations may voluntarily seek
                                                 channel must file an application for the                party to a CSA only one party to the                   Commission approval to share a single
                                                 initial channel sharing construction                    CSA remains, the remaining licensee                    six megahertz channel with a full
                                                 permit (FCC Form 2100), include a copy                  may file an application to change its                  power, low power or TV translator
                                                 of the channel sharing agreement as an                  license to non-shared status using FCC                 station.
                                                 exhibit, and cross reference the other                  Form 2100, Schedule B (for a full power                   (2) Each station sharing a single
                                                 sharing station(s). Any engineering                     licensee) or F (for a Class A licensee).               channel pursuant to this section shall
                                                 changes necessitated by the channel                        (f) Notice to MVPDs. (1) Stations                   continue to be licensed and operated
                                                 sharing agreement may be included in                    participating in channel sharing                       separately, have its own call sign, and
                                                 the station’s application. Upon                         agreements must provide notice to                      be separately subject to all of the
                                                 initiation of shared operations, the                    MVPDs that:                                            Commission’s obligations, rules, and
                                                 station relinquishing its channel must                     (i) No longer will be required to carry             policies.
                                                 notify the Commission that it has                       the station because of the relocation of                  (b) Licensing of channel sharing
                                                 terminated operation pursuant to 47                     the station;                                           stations. A station relinquishing its
                                                 CFR 73.1750 and each sharing station                       (ii) Currently carry and will continue              channel must file an application for the
                                                 must file an application for license (FCC               to be obligated to carry a station that                initial channel sharing construction
                                                 Form 2100).                                             will change channels; or                               permit, include a copy of the channel
                                                    (c) Deadline for implementing                           (iii) Will become obligated to carry                sharing agreement as an exhibit, and
                                                 channel sharing agreements. Channel                     the station due to a channel sharing                   cross reference the other sharing
                                                 sharing agreements submitted pursuant                   relocation.                                            station(s). Any engineering changes
                                                 to this section must be implemented                        (2) The notice required by this section             necessitated by the channel sharing
                                                 within three years of the grant of the                  must contain the following information:                agreement may be included in the
                                                 initial channel sharing construction                       (i) Date and time of any channel                    station’s application. Upon initiation of
                                                 permit.                                                 changes;                                               shared operations, the station
                                                    (d) Channel Sharing Agreements                          (ii) The channel occupied by the                    relinquishing its channel must notify
                                                 (CSAs). (1) Channel sharing agreements                  station before and after implementation                the Commission that it has terminated
                                                 submitted under this section must                       of the CSA;                                            operation pursuant to 47 CFR 73.1750
                                                 contain provisions outlining each                          (iii) Modification, if any, to antenna              and each sharing station must file an
                                                 licensee’s rights and responsibilities                  position, location, or power levels;                   application for license.
                                                 regarding:                                                 (iv) Stream identification information;                (c) Deadline for implementing
                                                    (i) Access to facilities, including                  and                                                    channel sharing agreements. Channel
                                                 whether each licensee will have                            (v) Engineering staff contact                       sharing agreements submitted pursuant
                                                 unrestrained access to the shared                       information.                                           to this section must be implemented
                                                 transmission facilities;                                   (3) Sharee stations (those                          within three years of the grant of the
                                                    (ii) Operation, maintenance, repair,                 relinquishing a channel in order to                    initial channel sharing construction
                                                 and modification of facilities, including               share) must provide notice as required                 permit.
                                                 a list of all relevant equipment, a                     by this section at least 30 days prior to                 (d) Channel Sharing Agreements
                                                 description of each party’s financial                   terminating operations on the sharee’s                 (CSAs). (1) Channel sharing agreements
                                                 obligations, and any relevant notice                    channel. Sharer stations (those hosting a              submitted under this section must
                                                 provisions; and                                         sharee as part of a channel sharing                    contain provisions outlining each
                                                    (iii) Transfer/assignment of a shared                agreement) and sharee stations must                    licensee’s rights and responsibilities
                                                 license, including the ability of a new                 provide notice as required by this                     regarding:
                                                 licensee to assume the existing CSA;                    section at least 30 days prior to                         (i) Access to facilities, including
                                                 and                                                     initiation of operations on the sharer                 whether each licensee will have
                                                    (iv) Termination of the license of a                 channel. Should the anticipated date to                unrestrained access to the shared
                                                 party to the CSA, including reversion of                either cease operations or commence                    transmission facilities;
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                                                 spectrum usage rights to the remaining                  channel sharing operations change, the                    (ii) Operation, maintenance, repair,
                                                 parties to the CSA.                                     stations must send a further notice to                 and modification of facilities, including
                                                    (2) Channel sharing agreements                       affected MVPDs informing them of the                   a list of all relevant equipment, a
                                                 submitted under this section must                       new anticipated date(s).                               description of each party’s financial
                                                 include a provision affirming                              (4) Notifications provided to cable                 obligations, and any relevant notice
                                                 compliance with the channel sharing                     systems pursuant to this section must be               provisions; and
                                                 requirements in this section including a                either mailed to the system’s official                    (iii) Termination or transfer/
                                                 provision requiring that each channel                   address of record provided in the cable                assignment of rights to the shared


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                                                 5092                   Federal Register / Vol. 81, No. 20 / Monday, February 1, 2016 / Proposed Rules

                                                 licenses, including the ability of a new                  (f) Notice to MVPDs. (1) Stations                    by this section at least 30 days prior to
                                                 licensee to assume the existing CSA.                    participating in channel sharing                       terminating operations on the sharee’s
                                                    (2) Channel sharing agreements                       agreements must provide notice to                      channel. Sharer stations (those hosting a
                                                 submitted under this section must                       MVPDs that:                                            sharee as part of a channel sharing
                                                 include a provision affirming                             (i) No longer will be required to carry              agreement) and sharee stations must
                                                 compliance with the channel sharing                     the station because of the relocation of               provide notice as required by this
                                                 requirements in this section including a                the station;                                           section at least 30 days prior to
                                                 provision requiring that each channel                     (ii) Currently carry and will continue               initiation of operations on the sharer
                                                 sharing licensee shall retain spectrum                  to be obligated to carry a station that                channel. Should the anticipated date to
                                                 usage rights adequate to ensure a                       will change channels; or                               either cease operations or commence
                                                 sufficient amount of the shared channel                   (iii) Will become obligated to carry                 channel sharing operations change, the
                                                 capacity to allow it to provide at least                the station due to a channel sharing                   station(s) must send a further notice to
                                                 one Standard Definition (SD) program                    relocation.                                            affected MVPDs informing them of the
                                                                                                           (2) The notice required by this section              new anticipated date(s).
                                                 stream at all times.
                                                                                                         must contain the following information:                   (4) Notifications provided to cable
                                                    (e) Termination and assignment/                        (i) Date and time of any channel
                                                 transfer of shared channel. Upon                                                                               systems pursuant to this section must be
                                                                                                         changes;
                                                 termination of the license of a party to                                                                       either mailed to the system’s official
                                                                                                           (ii) The channel occupied by the
                                                 a CSA, the spectrum usage rights                                                                               address of record provided in the cable
                                                                                                         station before and after implementation
                                                 covered by that license may revert to the                                                                      system’s most recent filing in the FCC’s
                                                                                                         of the CSA;
                                                 remaining parties to the CSA. Such                                                                             Cable Operations and Licensing System
                                                                                                           (iii) Modification, if any, to antenna
                                                 reversion shall be governed by the terms                                                                       (COALS) Form 322, or emailed to the
                                                                                                         position, location, or power levels;
                                                 of the CSA in accordance with                             (iv) Stream identification information;              system if the system has provided an
                                                 paragraph (d)(1)(iv) of this section. If                and                                                    email address. For all other MVPDs, the
                                                 upon termination of the license of a                      (v) Engineering staff contact                        letter must be addressed to the official
                                                 party to a CSA only one party to the                    information.                                           corporate address registered with their
                                                 CSA remains, the remaining licensee                       (3) Sharee stations (those                           State of incorporation.
                                                 may file an application for license to                  relinquishing a channel in order to                    [FR Doc. 2016–00059 Filed 1–29–16; 8:45 am]
                                                 change its status to ‘‘non-shared.’’                    share) must provide notice as required                 BILLING CODE 6712–01–P
rmajette on DSK2TPTVN1PROD with PROPOSALS




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Document Created: 2016-01-30 01:17:17
Document Modified: 2016-01-30 01:17:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments Due: February 22, 2016. Reply Comments Due: March 3, 2016.
ContactShaun Maher, [email protected] of the Media Bureau, Video Division, (202) 418-2324. For additional information concerning the PRA information collection requirements contained in this document, contact Cathy Williams, Federal Communications Commission, at (202) 418-2918, or via email [email protected]
FR Citation81 FR 5086 

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