81 FR 5086 - Low Power Television Digital Rules

FEDERAL COMMUNICATIONS COMMISSION

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

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, 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