82_FR_58602 82 FR 58365 - FCC Form 325 Data Collection; Modernization of Media Regulation Initiative

82 FR 58365 - FCC Form 325 Data Collection; Modernization of Media Regulation Initiative

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 82, Issue 237 (December 12, 2017)

Page Range58365-58374
FR Document2017-26678

In this document, the Federal Communications Commission (Commission) seeks comment on whether to eliminate Form 325, Annual Report of Cable Television Systems, or, in the alternative, on ways to modernize and streamline the form.

Federal Register, Volume 82 Issue 237 (Tuesday, December 12, 2017)
[Federal Register Volume 82, Number 237 (Tuesday, December 12, 2017)]
[Proposed Rules]
[Pages 58365-58374]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26678]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 76

[MB Docket Nos. 17-290, 17-105; FCC 17-157]


FCC Form 325 Data Collection; Modernization of Media Regulation 
Initiative

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) seeks comment on whether to eliminate Form 325, Annual 
Report of Cable Television Systems, or, in the alternative, on ways to 
modernize and streamline the form.

DATES: Comments are due on or before February 12, 2018; reply comments 
are due on or before February 26, 2018.

ADDRESSES: You may submit comments, identified by MB Docket Nos. 17-
290, 17-105, by any of the following methods:
     Federal Communications Commission's website: http://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting 
comments.
     Mail: Filings can be sent by hand or messenger delivery, 
by commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail. All filings must be addressed to the Commission's 
Secretary, Office of the Secretary, Federal Communications Commission.
    People with Disabilities: Contact the FCC to request reasonable 
accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: [email protected] or phone: (202) 418-
0530 or TTY: (202) 418-0432.

FOR FURTHER INFORMATION CONTACT: For additional information on this 
proceeding, contact Maria Mullarkey of the Policy Division, Media 
Bureau at [email protected], or (202) 418-2120.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking, FCC 17-157, adopted and released on November 
16, 2017. The full text of this document is available electronically 
via the FCC's Electronic Document Management System (EDOCS) website at 
https://apps.fcc.gov/edocs_public/attachmatch/FCC-17-157A1.pdf. 
Documents will be available electronically in ASCII, Microsoft Word, 
and/or Adobe Acrobat. This document is also available for public 
inspection and copying during regular business hours in the FCC 
Reference Information Center, Federal Communications Commission, 445 
12th Street SW, CY-A257, Washington, DC 20554. Alternative formats are 
available for people with disabilities (Braille, large print, 
electronic files, audio format), by sending an email to [email protected] 
or calling the Commission's Consumer and Governmental Affairs Bureau at 
(202) 418-0530 (voice), (202) 418-0432 (TTY).

Synopsis

    1. This Notice of Proposed Rulemaking (NPRM) seeks comment on 
whether to eliminate Form 325, Annual Report of Cable Television 
Systems, or, in the alternative, on ways to modernize and streamline 
the form. Form 325 collects operational information from cable 
television systems nationwide, including their network structure, 
system-wide capacity, programming, and number of subscribers. There 
have been significant changes in the multichannel video programming 
distributor (MVPD) marketplace and in the way cable systems operate 
since the Commission last examined the requirement to file Form 325 
almost two decades ago. Given these transformations in the industry, 
and the commercial availability of cable operator-related data, we 
think it is appropriate to take a fresh look at the form and to 
evaluate the continued need for the Form 325 information collection. We 
also note that, as part of the record in the Commission's Modernization 
of Media Regulation Initiative proceeding, some industry commenters 
request that the Commission reevaluate the requirement for cable 
systems to file Form 325 and consider whether the form should be 
eliminated to reduce burdens on the cable industry.\1\ We seek comment 
on whether the costs of the Form 325 data collection now exceed the 
benefits of the information and on whether there may be less burdensome 
ways for the Commission to obtain this data or on whether the form 
should be modified to reflect technological and other pertinent 
industry changes.
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    \1\ See Comments of the American Cable Association, MB Docket 
No. 17-105, at 26-27 (ACA Comments); Comments of NCTA--The Internet 
and Television Association, MB Docket No. 17-105, at 29-30 (NCTA 
Comments); Comments of Verizon, MB Docket No. 17-105, at 17-18 
(Verizon Comments).
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I. Background

    2. Form 325 collects operational information from cable television 
systems nationwide, including data about subscriber numbers, equipment, 
plant information, frequency and signal distribution information, and 
programming.\2\ The form must be filed annually by all cable systems 
with 20,000 or more subscribers, which accounts for the vast majority 
of cable subscribers, and a random sampling of small cable systems with 
fewer than 20,000 subscribers.\3\ Each year in December, the Commission 
sends a notification to each operator that must file Form 325 and 
instructs the operator to file the form electronically via the Cable 
Operations and Licensing System (COALS) within 60 days from the date of 
the letter.\4\ Form 325 filers report data from the last week in 
December of the preceding year. Cable systems have filed the current 
version of Form 325 since 2003, with minor updates made in 2008.\5\ 
Filers have been required to file

[[Page 58366]]

the form electronically via COALS since 2005.\6\
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    \2\ See 47 CFR 76.403. The FCC Form 325 is available via the 
Commission's website at http://www.fcc.gov/forms or https://fcc.gov/coals/.
    \3\ 47 CFR 76.403.
    \4\ See id. In recent years, this notification letter has been 
emailed to cable systems. Follow up notifications to operators that 
fail to file on time are sent via certified mail.
    \5\ See FCC, Public Information Collection Requirement Submitted 
to OMB for Review and Approval, Comments Requested, Notice, 73 FR 
50814 (Aug. 28, 2008) (describing refinements made to Form 325).
    \6\ FCC, Public Notice, Media Bureau Implements Mandatory 
Electronic Filing of FCC Forms 320, 322, 324, and 325 Via COALS, 19 
FCC Rcd 13053 (MB 2004).
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    3. The Commission first developed the form for use in 1966 \7\ and 
subsequently adopted it as an annual filing requirement in 1971.\8\ The 
Commission explained in 1971 that the form was ``necessary to enable 
the Commission to keep abreast of [cable TV system] developments, 
fulfill its regulatory responsibilities in this field, and assist 
Congress in its consideration of related legislative proposals.'' \9\ 
At that time, the Commission required that all cable systems file the 
form, declining to exclude small systems from this requirement because 
the Commission concluded that it needed comprehensive data to properly 
evaluate such systems.\10\
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    \7\ Amendment of Subpart L, Part 91, to Adopt Rules and 
Regulations to Govern the Grant of Authorizations in the Business 
Radio Service for Microwave Stations to Relay Television Signals to 
Community Antenna Systems; Amendment of Subpart I, Part 21, to Adopt 
Rules and Regulations to Govern the Grant of Authorizations in the 
Domestic Public Point-To-Point Microwave Radio Service for Microwave 
Stations Used to Relay Television Broadcast Signals to Community 
Antenna Television Systems; Amendment of Parts 21, 74, and 91 to 
Adopt Rules and Regulations Relating to the Distribution of 
Television Broadcast Signals By Community Antenna Television 
Systems, and Related Matters, Second Report and Order, 2 FCC 2d 725, 
para. 99 (1966). The 1966 Form 325 requested ownership information, 
number of subscribers, broadcast signal carriage, program 
origination data, certain financial data, and a map of the system.
    \8\ Amendment of Part 74, Subpart K, of the Commission's Rules 
and Regulations Relative to Community Antenna Television Systems; 
and Inquiry Into the Development of Communications Technology and 
Services to Formulate Regulatory Policy and Rulemaking and/or 
Legislative Proposals, Third Report and Order, 32 FCC 2d 13, para. 5 
(1971).
    \9\ Id. para. 2.
    \10\ Id. para. 5 (finding that ``excusing small systems from 
filing certain data would deprive the Commission of the very 
information which it lacks''). In 1972, the Commission adopted rules 
governing the Cable Television Service, which included the annual 
Form 325 reporting requirement. See Amendment of Part 74, Subpart K, 
of the Commission's Rules and Regulations Relative to Community 
Antenna Television Systems; and Inquiry into the Development of 
Communications Technology and Services to Formulate Regulatory 
Policy and Rulemaking and/or Legislative Proposals; Amendment of 
Section 74.1107 of the Commission's Rules and Regulations to Avoid 
Filing of Repetitious Requests; Amendment of Section 74.1031(c) and 
74.1105(a) and (b) of the Commission's Rules and Regulations As They 
Relate to Addition of New Television Signals; Amendment of Part 74, 
Subpart K, of the Commission's Rules and Regulations Relative to 
Federal-State or Local Relationships in the Community Antenna 
Television System Field; and/or Formulation of Legislative Proposals 
in this Respect; Amendment of Subpart K of Part 74 of the 
Commission's Rules and Regulations With Respect to Technical 
Standards for Community Antenna Television Systems, Report and 
Order, 36 FCC 2d 143 (1972) (adopting 47 CFR 76.401). Before 1976, 
cable operators were required to file the form on a fixed date (on 
or before March 1). 47 CFR 76.401. In 1976, the Commission changed 
the process to facilitate data automation, sending cable operators a 
pre-filled form that cable operators corrected and returned to the 
Commission within 60 days. See Amendment of Part 76 of the 
Commission's Rules and Regulations to Alter Cable Television 
Reporting Requirements, Order, 61 FCC 2d 1014 (1976). At this time, 
the Commission also moved the Form 325 reporting requirement to its 
current location at Section 76.403 of the rules. See id. (adopting 
47 CFR 76.403). This process remained in place until 2005, when 
operators were required to file the form electronically via COALS.
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    4. The Commission's last significant modification of the Form 325 
data collection was in 1999.\11\ At that time, the Commission revised 
and streamlined the form, and significantly reduced the number of cable 
systems required to file Form 325 annually by devising a sampling 
methodology to gather information from systems with fewer than 20,000 
subscribers rather than requiring all such systems to file each 
year.\12\ The Commission sought ``to strike a balance to reduce the 
burdens placed upon the industry and on Commission resources in the 
Form 325 information collection process while still retaining access to 
core information that is needed by the Commission in order to perform 
its regulatory functions.'' \13\ It noted that the processing and 
compilation of Form 325 data was ``a labor intensive process for the 
Commission.'' \14\ The Commission concluded that the information 
collected based on the sampling of subscribers would ``provide the 
Commission with an adequate profile of how cable systems operate today 
and how they impact the general population.'' \15\ At that time, the 
Commission also considered whether to eliminate this data collection 
process entirely, assessing the utility of the form for purposes of the 
agency's policymaking and enforcement activities.\16\ The Commission 
was not persuaded to eliminate the form, and it found that ``there is 
sufficient value in the information collected . . . that the 
information collection process should not be altogether eliminated.'' 
\17\
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    \11\ 1998 Biennial Regulatory Review--``Annual Report of Cable 
Television Systems,'' Form 325, Filed Pursuant to Section 76.403 of 
the Commission's Rules, Report and Order, 14 FCC Rcd 4720 (1999) 
(1999 Form 325 Order).
    \12\ Id. para. 12.
    \13\ Id. para. 11. But see id. (Statements of Commissioners 
Furchtgott-Roth and Powell dissenting from the Commission's decision 
not to eliminate Form 325).
    \14\ Id. para. 4.
    \15\ Id. para. 12.
    \16\ 1998 Biennial Regulatory Review--``Annual Report of Cable 
Television Systems,'' Form 325, Filed Pursuant to Section 76.403 of 
the Commission's Rules, Notice of Proposed Rulemaking, 13 FCC Rcd 
12266, para. 6 (1998). Specifically, the Commission sought comment 
``on whether it continues to be important for the Commission to have 
access to the type of data reported on the current Form 325 and the 
extent to which this information is available from other sources.'' 
Id. In response, two commenters argued in favor of keeping the 
form--the Institute for Public Representation, which argued that the 
information in the form is critical to the Commission's assessment 
of cable operator compliance with horizontal integration, must 
carry, and leased access rules, and the National Association of 
Broadcasters, which argued that the information would be needed for 
purposes of the Commission's digital television must carry 
rulemaking proceeding. 1999 Form 325 Order, paras. 9-10. Other 
industry commenters argued that the form serves no identifiable 
regulatory or policy purpose, is burdensome to the cable industry, 
and contains information that can be obtained from alternative 
sources, including data published by commercial resources or 
available through other government filings. Id. paras. 5-8.
    \17\ 1999 Form 325 Order, 14 FCC Rcd at 4725, 4727, paras. 11, 
14-15. See also 1998 Biennial Regulatory Review--``Annual Report of 
Cable Television Systems,'' Form 325, Filed Pursuant to Section 
76.403 of the Commission's Rules, Order on Reconsideration, 15 FCC 
Rcd 9707 (2000). With respect to the argument that certain 
information on Form 325 is available from other sources, the 
Commission observed that there are no assurances such information is 
current or collected consistently by commercial entities, and it 
noted that having current and accurate information available to the 
Commission is ``of considerable importance.'' 1999 Form 325 Order, 
paras. 14-15.
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    5. Today, industry commenters argue that Form 325 is burdensome for 
cable systems and has outlived its usefulness, given the availability 
of information about the cable industry from alternative sources and 
the changes in the MVPD marketplace. In the 2017 Modernization of Media 
Regulation Initiative proceeding, NCTA--The Internet and Television 
Association (NCTA), the American Cable Association (ACA), Verizon, and 
ITTA--The Voice of America's Broadband Providers (ITTA) each assert 
that the Commission should eliminate the Form 325 requirement. NCTA 
argues that the routine collection of information does not make sense 
in today's competitive video marketplace, particularly where there is 
no similar requirement applicable to non-cable MVPDs or online video 
distributors.\18\ NCTA argues further that the Form 325 filing ``is not 
statutorily required and does not serve any clear or legitimate 
purpose.'' \19\ ACA contends that Form 325 collects information that is 
publicly available or provided to the Commission in other required 
filings, such as signal distribution and frequency information, as well 
as information that has little utility today, such as set-top box and

[[Page 58367]]

cable plant details.\20\ According to ACA, the form is no longer 
necessary and should be eliminated.\21\ Likewise, Verizon argues that 
the Commission should eliminate Form 325 and its associated data 
collection, opining that the information collected on the form does not 
fit competitive video services such as Verizon, is not reflective of 
today's competitive video marketplace, and can be obtained from other 
sources.\22\ In reply comments, ITTA agrees with the arguments set 
forth by NCTA, ACA, and Verizon in favor of eliminating Form 325.\23\ 
No commenters argued in favor of retaining the form.
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    \18\ NCTA Comments at 30. See also ACA Comments at 27 (noting 
that the Commission does not request similar data from DBS providers 
or competitive video entrants that are not registered in the COALS 
database).
    \19\ NCTA Comments at 30.
    \20\ ACA Comments at 27. See also Reply Comments of the American 
Cable Association, MB Docket No. 17-105, at 9-10.
    \21\ ACA Comments at 27.
    \22\ Verizon Comments at 17-18. See also Reply Comments of 
Verizon, MB Docket No. 17-105, at 6.
    \23\ Reply Comments of ITTA--The Voice of America's Broadband 
Providers, MB Docket No. 17-105, at 8-9 (ITTA Reply).
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II. Discussion

A. Utility of Form 325 Reporting Requirement

    6. We seek comment on the continued utility of collecting Form 325 
data and whether the Commission should eliminate the form entirely. 
Given the substantial changes in the MVPD marketplace and in the 
operations of cable systems since the Commission last considered the 
utility and effectiveness of the Form 325 data collection almost two 
decades ago, including the transition to digital television and the 
development of new technologies and ways to deliver video programming 
to consumers, we believe it is appropriate to consider whether the form 
continues to be useful to the agency's regulatory and adjudicatory 
functions with respect to the cable industry and whether the 
information collected therein is available from alternative sources. We 
also seek comment on the costs of this requirement for cable systems 
and on whether the benefits of the information outweigh the costs.
    7. We seek comment on whether changes in the MVPD marketplace or 
other factors since the Commission last considered the utility and 
effectiveness of the Form 325 data collection almost two decades ago 
should lead the Commission to a different conclusion regarding the need 
for the Commission to collect the data required by the form. To what 
extent do the changes in the industry and regulatory environment since 
1999 obviate or reduce the need for this information? For example, in 
the 1999 Form 325 Order, the Commission noted the utility of the form 
in providing information about the number of leased access channels 
being used on cable systems.\24\ However, the Commission provides 
information on the average number of leased access channels in its 
annual report on cable industry prices.\25\ Is it still useful to 
collect this information on Form 325? We note that the Commission 
started collecting information from cable systems via Form 325 well 
before cable operators became significant players in the broadband 
market. The Commission currently collects information from broadband 
providers, including cable operators, on FCC Form 477, Local Telephone 
Competition and Broadband Reporting, and there is some overlap between 
the Form 325 and Form 477 data collections.\26\ Is there a continued 
need for the Commission to collect Form 325 data to support the 
Commission's policy initiatives and decision making or to inform 
reports to Congress, such as the Commission's annual video competition 
report? \27\ Would eliminating Form 325 hinder the Commission's ability 
to evaluate the state of competition among cable systems? If so, what 
aspects of the form are essential to this evaluation?
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    \24\ 1999 Form 325 Order, para. 22.
    \25\ See Implementation of Section 3 of the Cable Television 
Consumer Protection and Competition Act of 1992; Statistical Report 
on Average Rates for Basic Service, Cable Programming Service, and 
Equipment, Report on Cable Industry Prices, 31 FCC Rcd 11498, para. 
21, table 6 (2016).
    \26\ For example, Form 325 solicits information on the number of 
cable modem (i.e., broadband) subscribers and the number of 
telephony subscribers for each cable system, and Form 477 collects 
information on the number of broadband and telephony subscribers by 
census tract. See FCC Form 477, Local Telephone Competition and 
Broadband Reporting, Instructions, Section 5: Completing Each 
Section of FCC Form 477 (Dec. 5, 2016), available at https://transition.fcc.gov/form477/477inst.pdf.
    \27\ Form 325 data has been cited in the Commission's annual 
video competition reports, for example, to show the growth in the 
number of all-digital cable systems and the percentage of households 
passed by incumbent cable systems as well as the percentage of 
households passed that subscribe to these systems. See, e.g., Annual 
Assessment of the Status of Competition in the Market for the 
Delivery of Video Programming, Sixteenth Report, 30 FCC Rcd 3253, 
para. 79, tables 3-4 (2015) (using Form 325 data to show the growth 
in all-digital cable systems for cable systems with more than 20,000 
subscribers and for the sampling of cable systems with between 5,000 
and 20,000 subscribers); Annual Assessment of the Status of 
Competition in the Market for the Delivery of Video Programming, 
Fourteenth Report, 27 FCC Rcd 8610, paras. 70, 116, note 350 (2012) 
(citing Form 325 data to show the percentage of households passed by 
incumbent cable systems that subscribe to these systems as well as 
the number of very small cable systems (fewer than 5,000 
subscribers) surveyed that offer neither internet access nor 
television access). In addition, Form 325 data has been cited as a 
source in the Commission's annual reports on cable industry prices. 
See, e.g., Implementation of Section 3 of the Cable Television 
Consumer Protection and Competition Act of 1992; Statistical Report 
on Average Rates for Basic Service, Cable Programming Service, and 
Equipment, Report on Cable Industry Prices, 31 FCC Rcd 11498, 
attach. 1 (2016) (citing Form 325 data for the numbers of cable 
communities by each sampling group (i.e., noncompetitive group and 
effective competition group)). The Commission has used Form 325 data 
to inform other reports to Congress. See, e.g., In-State Broadcast 
Programming: Report to Congress Pursuant to Section 304 of the 
Satellite Television Extension and Localism Act of 2010, Report, 26 
FCC Rcd 11919, para. 42 (2011) (using Form 325 data to determine the 
carriage of in-state broadcast stations on cable systems).
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    8. We also seek comment on the burden for cable operators to file 
Form 325 each year and, in particular, on the amount of time and 
resources it takes to complete the filing for each cable system. Do the 
benefits and uses of the information collected via Form 325 outweigh 
the burdens and costs on cable systems to file the form? To the extent 
the Commission might in the future need discrete information, would it 
be more cost effective for the Commission to undertake targeted 
information collections to obtain it?
    9. We also seek comment on whether and to what extent Form 325 
merely duplicates information that the Commission can obtain from 
commercial sources. For example, the Commission routinely cites data 
from SNL Kagan, BIA/Kelsey, The Nielsen Company, and Warren 
Communications Television and Cable Factbook.\28\ What other sources of 
cable data are available? Does the information collected by other 
sources duplicate what is collected via Form 325? In recent years the 
Commission has cited Form 325 data in a few proceedings.\29\ To the 
extent this

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information continues to be useful, can the Commission obtain it from 
other sources? Is there unique value in having the Commission collect 
the information contained within Form 325, rather than relying on 
third-party sources?
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    \28\ See, e.g., Annual Assessment of the Status of Competition 
in the Market for the Delivery of Video Programming, Eighteenth 
Report, 32 FCC Rcd 568 (2017) (citing data from Nielsen, BIA/Kelsey, 
and SNL Kagan throughout as support for multiple data points 
regarding MVPDs, broadcast television stations, and online video 
distributors); Cable Television Technical and Operational Standards, 
Report and Order, MB Docket No. 12-217, FCC 17-120, at 2, 35, para. 
3, app. C, para. 8 & notes 16, 18 (rel. Sept. 25, 2017) (citing data 
from SNL Kagan on the percentage of cable video customers that 
subscribe to digital service, and data from Warren Communications 
Television & Cable Factbook on the number of cable systems by 
subscriber size).
    \29\ In a recent channel sharing order, the Commission reviewed 
data collected from the 2015 Form 325 filing to determine the number 
of low power television (LPTV) and Class A stations carried on cable 
systems pursuant to mandatory carriage. Expanding the Economic and 
Innovation Opportunities of Spectrum Through Incentive Auctions; 
Amendment of Parts 73 and 74 of the Commission's Rules to Establish 
Rules for Digital Low Power Television and Television Translator 
Stations; Channel Sharing by Full Power and Class A Stations Outside 
the Broadcast Television Spectrum Incentive Auction Context, Report 
and Order, 32 FCC Rcd 2637, para. 12, note 47 (2017). See also 
Carriage of Digital Television Broadcast Signals: Amendment to Part 
76 of the Commission's Rules, Fourth Further Notice of Proposed 
Rulemaking and Declaratory Order, 27 FCC Rcd 1713, paras. 9-10, 20, 
notes 32-33, 36, 66-68, app. B (2012) (using Form 325 data to 
determine the number of cable subscribers served by all-digital 
systems, the number of broadcast stations that elect or default to 
must carry on cable systems, and the number of small cable systems 
relying on the HD carriage exemption). Further, the Commission has 
used Form 325 data to evaluate and craft exemptions in rulemaking 
proceedings implementing accessibility rules pursuant to the Twenty-
First Century Communications and Video Accessibility Act of 2010. 
See Accessibility of User Interfaces, and Video Programming Guides 
and Menus; Accessible Emergency Information, and Apparatus 
Requirements for Emergency Information and Video Description: 
Implementation of the Twenty-First Century Communications and Video 
Accessibility Act of 2010, Report and Order and Further Notice of 
Proposed Rulemaking, 28 FCC Rcd 17330, para. 117, note 473 (2013) 
(citing Form 325 data for its estimate of the number of subscribers 
that would be affected by a longer phase-in period for smaller and 
mid-sized cable systems and operators in a 2013 order adopting 
accessible user interfaces requirements); Closed Captioning of 
internet Protocol-Delivered Video Programming: Implementation of the 
Twenty-First Century Communications and Video Accessibility Act of 
2010, Report and Order, 27 FCC Rcd 787, para. 96, note 382 (2012) 
(using information collected via Form 325 on the number of deployed 
set-top boxes to conclude that applying IP closed captioning rules 
only to devices with built-in screens would exclude one of the most 
common means by which consumers view programming).
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    10. Are there other external uses of the Form 325 data collection 
of which the Commission should take account? \30\ We note that Warren 
Communications annually files a Freedom of Information Act (FOIA) 
request for Form 325 data from the Commission and that other entities 
and individuals have periodically sought Form 325 data through FOIA 
requests. The Commission does not provide this information in response 
to FOIA requests until three years after initial filing due to 
confidentiality requests that are routinely filed by cable operators. 
Is any information from alternative sources based on the FCC's Form 325 
data?
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    \30\ We also note that Form 325 filings are made available to 
the public via COALS three years after initial filing.
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B. Ways To Improve and Modernize Form 325 Data Collection

    11. If the Commission decides to retain the Form 325 data 
collection, we seek comment on ways to improve and modernize the form. 
The cable television industry has experienced many changes since Form 
325 was last updated, most notably the ongoing transition to digital 
technology and the introduction of video programming delivered via 
internet protocol (IPTV). These changes may render some data collected 
by the form no longer necessary and raise new information needs not met 
by the current form. If the Commission decides to retain the Form 325 
data collection, we seek to minimize the administrative burden on cable 
television systems and improve the quality and usefulness of Form 325 
data to reflect technological and other pertinent industry changes. We 
also seek to ensure that the data we collect are closely aligned with 
the uses to which they will be put by the Commission.
    12. In addition, to the extent the form is retained, we propose to 
upgrade the current COALS filing system to minimize the filing burden 
for cable systems. An upgraded filing system would be able to pre-fill 
much of the data that does not change from year to year using other 
filings, such as community registrations, online public inspection 
files (OPIF), and previous Form 325 submissions. Cable operators will 
only have to verify the continued accuracy of any pre-filled 
information, and update those fields only if necessary.
    13. Currently, Form 325 is organized into five parts: (1) Operator 
information; (2) general information; (3) frequency and signal 
distribution information; (4) channel line-up; and (5) 
certification.\31\ We seek comment below on each section of the form. 
We also seek comment on whether the Commission should consider any 
organizational changes to Form 325, such as changes to the categories 
of information collected. Commenters should specify any elements of the 
data collection that we should consider for elimination, whether 
because of redundancy, insufficient usefulness, or availability from 
other sources, as well as elements of the data collection that are 
particularly burdensome to filers. We also ask commenters to specify 
the data elements that should be retained or modified, as well as the 
rationale for any proposed change. Is there any information contained 
in Form 325 that would be helpful to consumers? Could some of the 
information be made publicly available earlier than three years from 
the date of filing?
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    \31\ Part V of Form 325 requires certification that all 
statements of fact contained on the form are true, complete, and 
correct to the best of the certifying official's knowledge, 
information, and belief, and are made in good faith.
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1. Operator Information
    14. Identification and Contact Information. To the extent the form 
is retained, we tentatively conclude that cable system identification 
and contact information should remain a part of the Form 325 data 
collection. We seek comment on this tentative conclusion and on whether 
we should modify or streamline this section of the form. Currently, 
Form 325 requires filers to provide the cable operator's legal name and 
complete mailing address, including zip code. Are there any ways in 
which the Commission can streamline this section of the form, such as 
by pre-filling information using a cable system's Physical System 
Identifier (PSID), which is a six-digit number used by the Commission 
to identify each cable system.
2. General Information
    15. Subscriber Information. We seek comment on whether there is a 
continued need to collect cable subscriber information to the extent 
the form is retained, and, if not, whether we should eliminate this 
section of the form. We seek comment on the uses of this data and 
whether we can obtain it from other sources. We also seek comment on 
whether there are ways the Commission can update or streamline the 
reporting of information on cable subscribers, if it decides to retain 
this section of the form. Part II of Form 325 requires the reporting of 
subscriber information, including the number of subscribers; number of 
potential subscribers; whether the system is overbuilt by a competing 
cable system; number of homes passed that are also passed by a 
competing cable system; name of incumbent operator(s) where the system 
is overbuilt by a competing cable system; number of cable modem 
subscribers; and number of telephony subscribers. Subscriber data is a 
useful measure of the size and competitiveness of a cable system, and 
has been used by the Commission to prepare the annual video competition 
report and to inform our policymaking.\32\ For example, the Commission 
has used subscriber data as the basis for crafting rule exemptions and 
justifying differing regulatory treatment based on the number of 
subscribers served.\33\ Is subscriber data

[[Page 58369]]

available from alternative sources, and, if so, is such data as 
accurate and current as data provided directly to the Commission by 
cable systems? We tentatively conclude that we should eliminate the 
collection of modem and telephony subscriber data via Form 325 because 
similar data is collected via FCC Form 477, Local Telephone Competition 
and Broadband Reporting, and we seek comment on this tentative 
conclusion.\34\ Should we collect data on the number of analog and 
digital subscribers so that the Commission can track the progress of 
each system's transition to all-digital service? Or, is this 
information available from public sources? We also seek comment on 
whether we should retain the existing instruction for how bulk rate 
customers are calculated for the form, if the Commission continues to 
require reporting of subscriber numbers. Currently, when reporting the 
number of subscribers on Form 325, operators must include an estimate 
of the number of subscribers who pay a bulk rate for service through an 
intermediary, such as apartment management. On the existing form, the 
instructions explain that the number of bulk rate customers should be 
calculated as follows: ``[b]ulk-rate customers = total annual bulk-rate 
charge divided by basic annual subscription rate for individual 
households.'' \35\ Is there any reason to change this approach? 
Commenters advocating a different approach should explain their 
proposed methodology and why it would be an improvement over the one 
currently in place.
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    \32\ But see Verizon Comments at 17 (``[I]nformation on 
subscriber counts and `homes passed' by cable systems does not 
reflect consumer video viewing patterns or the competitive nature of 
the video distribution market.'').
    \33\ See, e.g., Implementation of the Commercial Advertisement 
Loudness Mitigation (CALM) Act, Report and Order, 26 FCC Rcd 17222, 
paras. 35-37, 52-54 (2011) (allowing MVPD systems with fewer than 
15,000 subscribers and that are not affiliated with a larger 
operator serving more than 10 percent of all MVPD subscribers to 
file streamlined financial hardship waivers to delay compliance from 
CALM Act rules for up to two years and excusing MVPD operators with 
fewer than 400,000 subscribers from the requirement to perform 
annual spot checks); Accessibility of User Interfaces, and Video 
Programming Guides and Menus; Accessible Emergency Information, and 
Apparatus Requirements for Emergency Information and Video 
Description: Implementation of the Twenty-First Century 
Communications and Video Accessibility Act of 2010, Report and Order 
and Further Notice of Proposed Rulemaking, 28 FCC Rcd 17330, para. 
114 (2013) (granting a five-year delayed compliance deadline to MVPD 
operators with 400,000 or fewer subscribers and to MVPD systems with 
20,000 or fewer subscribers that are not affiliated with an operator 
serving more than 10 percent of all MVPD subscribers).
    \34\ See Form 477 Resources for Filers, https://www.fcc.gov/general/form-477-resources-filers. Links to instructions detailing 
the data collected on the form and screen-shots of the form are 
provided at this location. Form 477 collects data semi-annually 
about broadband connections to end-user locations, wired and 
wireless local telephone services, and interconnected Voice over 
internet Protocol (VoIP), and it requires all covered providers to 
file, regardless of size. See Modernizing the FCC Form 477 Data 
Collection, Further Notice of Proposed Rulemaking, 32 FCC Rcd 6329, 
para. 2 (2017).
    \35\ See Instructions for FCC Form 325, Annual Report of Cable 
Television Systems, Section II.2.a (General Information, Subscriber 
Information, Number of Subscribers).
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    16. Equipment Information. We seek comment on whether there is a 
continued need to collect equipment information via Form 325 to the 
extent the form is retained, and, if not, whether we should eliminate 
this section of the form. We seek comment on the uses of this data and 
whether we can obtain it from other sources. We also seek comment on 
whether there are ways the Commission can modernize this portion of 
Form 325 to better reflect devices used by consumers to view cable 
programming, if it decides to retain this section. Part II of Form 325 
collects the following equipment information: the total number of 
leased cable modems deployed throughout the system and the total number 
of leased set-top boxes deployed in the system, including a breakdown 
of this total into the number of analog, hybrid, and digital set-top 
boxes leased. Is this information relevant to the Commission's duties 
under Section 629 of the Communications Act of 1934, as amended? \36\ 
Should we modify the equipment section of Form 325 to better achieve 
our duties under Section 629, and, if so, how? Or, is this information 
available from public sources? What information will best allow the 
Commission to determine whether the market for equipment used to access 
multichannel video programming is fully competitive, pursuant to 
Section 629? How can we best measure the level of competition as 
contemplated by Section 629? \37\
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    \36\ Section 629(a) directs the Commission to ``adopt 
regulations to assure the commercial availability . . . of . . . 
equipment used by consumers to access multichannel video programming 
and other services offered over multichannel video programming 
systems'' from sources other than the multichannel video programming 
distributor. 47 U.S.C. 549(a). Section 629(e) states that the 
regulations will sunset ``when the Commission determines that--(1) 
the market for the multichannel video programming distributors is 
fully competitive; (2) the market for converter boxes, and 
interactive communications equipment, used in conjunction with that 
service is fully competitive; and (3) elimination of the regulations 
would promote competition and the public interest.'' Id. sec. 
549(e).
    \37\ See GAO Report, Video Programming: FCC Should Conduct 
Additional Analysis to Evaluate Need for Set-Top Box Regulation, at 
22-23 (Sept. 2017) (recommending that the FCC, ``as part of its 
future annual video competition reports, analyze how the ongoing 
evolution in the video programming market affects competition in the 
related market for set-top boxes and devices, including how this 
evolution affects the extent to which consumer choice for devices to 
access MVPD content remains a relevant aspect of the competitive 
environment'').
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    17. Plant Information. We seek comment on whether there is a 
continued need to collect plant information via Form 325 to the extent 
the form is retained, and, if not, whether we should eliminate this 
section of the form. We seek comment on the uses of this data and 
whether we can obtain it from other sources. We also seek comment on 
how the Commission can modernize this portion of Form 325 to better 
reflect system capacity, if it decides to retain this section. Part II 
of Form 325 collects information on the cable plant, including the type 
of delivery system used (e.g., xDSL, fiber to the home, Hybrid Fiber-
Coaxial (HFC) network, or other); the length of optical fiber used in 
the plant; the number of fiber optic nodes, including the average 
number of subscribers served from these nodes; whether the cable system 
is part of a cluster, and, if so, the number of systems included in the 
cluster and total number of subscribers served by the cluster; and 
whether the facility uses Cable Television Relay Service (CARS) links, 
as well as a list of all call signs used by the system. Is this 
information still relevant to the Commission's regulation of cable 
television? Collecting information about system technology and capacity 
may enable us to better understand the ability of a system to comply 
with various regulations, based on their sophistication, capacity, and 
other technological limitations. Given that, in a digital world, the 
technical specifications of the cable plant no longer directly 
correlate to the systems' capacity for delivering programming, these 
questions may not provide meaningful information about an ever-growing 
percentage of systems. As cable systems have converted to digital 
technology, data on the number of programming streams, as well as on 
the compression and modulation used, may be more valuable than previous 
metrics used for measuring capacity of analog systems. We seek comment 
on this analysis. Is such data available from other sources? In 
conjunction with Section III.B.3 below (frequency and signal 
distribution information), we seek comment on how the Commission can 
update its questions on system technology and capacity should it retain 
the form.
3. Frequency and Signal Distribution Information
    18. We seek comment on whether there is a continued need to collect 
information on frequency and signal distribution to the extent the form 
is retained, and, if not, whether we should eliminate this section of 
the form. We seek comment on the uses of this data and whether we can 
obtain it from other sources. We also seek comment on how the 
Commission can modernize the questions about a cable system's technical 
capabilities, capacity, and potential for growth, including its ability 
to offer sophisticated services, if it decides to retain this section 
of the

[[Page 58370]]

form. Part III of Form 325 requires cable systems to report frequency 
and signal distribution information, including available upstream 
spectrum and maximum activated upstream spectrum; available downstream 
spectrum and maximum activated downstream spectrum; number of channels 
allocated to analog video programming and the number of channels 
actually used for analog video programming; number of channels 
allocated to digital video programming and the number of channels 
actually used for digital video programming; number of digital streams 
carried per 6 MHz of bandwidth; and modulation method used. To what 
extent does this type of data enable the Commission to measure a 
system's competitiveness and aid our policymaking with respect to the 
cable industry? Does the ongoing cable transition to digital 
transmission and other advancements in cable technology, such as IPTV, 
render many of the current questions on this part of the form 
ineffective or unnecessary, or does it raise new information needs not 
met by the current form? Is there a need for the Commission to 
understand the current capacity of a system, its potential for 
increases in capacity, and the rate at which new capacity is being 
delivered into the marketplace over time? If so, how can we gather 
information on system technology and capacity in a way that will prove 
flexible and informative as technology continues to evolve? Is such 
data available from other sources?
4. Channel Line-Up
    19. We tentatively conclude that we should eliminate the collection 
of channel line-up information to the extent the form is retained. We 
note that information about a cable system's programming is available 
from online sources, including on cable operator websites and from 
third-party guide services. Given the availability of this information 
from other public sources, we tentatively conclude that it is not 
necessary to continue to collect it from the cable operators via Form 
325. We seek comment on this tentative conclusion. If, on the other 
hand, the Commission ultimately decides that this information 
collection is necessary and useful, are there ways for the Commission 
to streamline this section of Form 325 to reduce the burden on cable 
systems to input their entire channel lineup? For example, should we 
reduce the types of program channels that must be reported? \38\ 
Currently, Part IV of Form 325 requires cable systems to list the 
program name,\39\ type (e.g., broadcast must carry, broadcast 
retransmission consent, leased access, public access, government 
access, education access, local origination, cable network, or other), 
format (e.g., analog, digital, or digital high definition), and tier 
(e.g., basic, cable programming services tier/expanded basic tier, 
premium, pay per view, or other) for each program carried on the 
system. We seek general comment on the burdens associated with the 
collection of programming information and any associated benefits.
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    \38\ For example, we could require cable systems to report only 
those types of channels that relate to certain Commission regulatory 
requirements, which will allow the Commission to evaluate the 
effectiveness of these rules and facilitate enforcement. This would 
include broadcast must carry stations, including local commercial 
stations, qualified local non-commercial educational (NCE) stations, 
and qualified LPTV or Class A stations; broadcast retransmission 
consent stations, including local commercial stations, 
significantly-viewed stations, distant (out-of-market) stations, and 
qualified LPTV or Class A stations; leased access; public access; 
government access; educational access; and local origination. See, 
e.g., 47 CFR 76.55, 76.56, 76.64, 76.970, 76.971.
    \39\ The instructions to Form 325 specify that ``program name'' 
refers to ``[t]he call sign of the TV broadcast station or 
abbreviation for the pay TV service or non-broadcast (usually 
satellite delivered) service distributed on the system (e.g., ESPN, 
CSPAN, HBO).''
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C. Procedural Changes for Filing Form 325

    20. Applicability of Requirement to Small Cable Systems. We seek 
comment on whether the annual Form 325 filing requirement should 
continue to apply to a random sampling of cable systems that serve 
fewer than 20,000 subscribers, if the Commission decides to retain the 
form.\40\ Specifically, the Commission samples approximately 50 percent 
of the systems serving between 5,000 and 20,000 subscribers, but only 
approximately 4 percent of systems serving fewer than 5,000 
subscribers.\41\
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    \40\ See 47 CFR 76.403.
    \41\ Staff analysis of 2016 Form 325 Annual Report of Cable 
Television Systems. For the 2016 filing year, 544 cable systems with 
fewer than 20,000 subscribers were selected to file Form 325. Of 
those, 354 were cable systems with between 5,000 and 20,000 
subscribers, and 190 were cable systems with fewer than 5,000 
subscribers.
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    21. We seek specific comment on the burden imposed by the Form 325 
filing requirement on smaller cable systems. In its media modernization 
proceeding comments, ACA contends that, should the Commission decide to 
retain Form 325, it should no longer require cable systems with fewer 
than 20,000 subscribers to complete the form.\42\ According to ACA, 
``[r]andomly sampling smaller cable systems increases the burden on 
those smaller providers selected, as the operators often have no 
experience filling [out] the form and must often engage outside 
resources for assistance completing it.'' \43\ Which data, if any, is 
particularly burdensome on smaller systems to provide? Commenters 
should explain and quantify such burden. If the Commission decides to 
retain the form, will the burden on small systems to file Form 325 be 
significantly reduced if the Commission streamlines and modernizes the 
form as discussed herein? How is the data from smaller cable systems 
useful to the Commission, and does its usefulness outweigh the burden 
on such systems?
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    \42\ ACA Comments at 27. See also ITTA Reply at 9, note 33.
    \43\ ACA Comments at 27. See also NCTA Comments at 30 
(``Operators devote many hours to completion of the filing for each 
PSID every year.'').
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    22. We tentatively conclude that, at a minimum, the Commission 
should exempt systems that serve fewer than 5,000 subscribers and are 
not affiliated with a larger operator from filing Form 325, if the form 
is retained. We seek comment on this tentative conclusion. Given the 
relative burdens and benefits, should we also exempt other smaller 
systems from having to complete the form? In addition, for those small 
cable systems that may still be required to file, should the Commission 
maintain the current approach of requiring only a sample of these 
systems to file Form 325 each year? Instead of randomly sampling 
smaller systems annually, should we require smaller systems to file the 
report every two, three, or five years, or some other time period? How 
should we define small systems for such purposes? For example, we could 
require systems that serve between 5,000 and 20,000 subscribers and are 
not affiliated with a larger operator (serving more than 2 percent of 
all MVPD subscribers \44\) to file every three years. We seek comment 
on these or any other alternative approaches.
---------------------------------------------------------------------------

    \44\ See Carriage of Digital Television Broadcast Signals: 
Amendment to Part 76 of the Commission's Rules, Sixth Report and 
Order, 30 FCC Rcd 6653, para. 4 (2015).
---------------------------------------------------------------------------

    23. Fixed Date for Form 325 Annual Filing. We seek comment on 
whether we should set a fixed date on which cable systems must annually 
file Form 325, if the Commission decides to retain the form. Currently, 
all systems, even those with 20,000 or more subscribers, wait for the 
Commission to notify them of their obligation to file Form 325. This 
notification, in addition to establishing the obligation to file, 
begins a 60-day clock determining when the operator must file.\45\ As a 
result, operators remain uncertain, from year to year, when they

[[Page 58371]]

must file. Should we instead set a fixed date on which filing must 
occur? We believe this approach could simplify the annual reporting 
process and add certainty and efficiency to the operator's workflow and 
that of the Commission, and we seek comment on this analysis. If the 
Commission were to adopt a fixed due date, which date would be 
appropriate? Currently, we request that systems report their 
information as of the last full week in December, and believe retaining 
that ``as of'' date makes sense for year-to-year consistency. The date 
should ensure that cable systems have sufficient time to compile and 
file their information. Given that the Commission previously required 
Form 325 to be filed on March 1 of each year, would that be an 
appropriate date?
---------------------------------------------------------------------------

    \45\ See 47 CFR 76.403.
---------------------------------------------------------------------------

    24. Confidential Treatment of Form 325. We seek comment on whether 
we should adopt any standardized confidentiality procedures for Form 
325, if the Commission decides to retain the form, and, if so, what 
those standards should be. Form 325 filings and the information 
contained therein generally are not made available to the public until 
three years after filing due to confidentiality requests that are 
routinely filed by cable operators, but are made public via COALS 
thereafter.\46\ Before the three-year period, the data is used by the 
Commission on an anonymized basis. Should the Commission automatically 
designate certain sections of Form 325 as confidential for all filers, 
and, if so, which sections? Is there a need to adopt more formal Form 
325 confidentiality procedures or are the Commission's current 
practices sufficient? Should the Commission provide a mechanism for 
filers to request confidentiality within the Form 325 as it does with 
regard to Form 477 filers? \47\
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    \46\ Cable operators, cognizant of potentially sensitive 
information disclosed on the form, often request that all or 
portions of the form not be made routinely available to the public 
pursuant to Section 0.459 of the Commission's rules. See, e.g., 
Request for Confidentiality for Information Submitted on Forms 325 
for the Year 2004, Order, 21 FCC Rcd 2312 (MB 2006) (Request for 
Confidentiality). See also 47 CFR 0.459, 0.461. The Media Bureau has 
recognized that information on Form 325 is commercial in nature and, 
in the past, has made the determination of whether to keep 
commercial information confidential on a case-by-case basis by 
determining whether there is a ``preponderance of the evidence that 
shows that disclosure of the information will cause the parties 
substantial competitive harm.'' Request for Confidentiality, para. 
4.
    \47\ Filers of FCC Form 477 are instructed that they may submit 
a request that certain information in the submission not be made 
routinely available for public inspection by so indicating in the 
``Filer Identification Information'' for that submission. See FCC 
Form 477, Local Telephone Competition and Broadband Reporting, 
Instructions, Section 7.4: Requesting Confidentiality, at 32 (Dec. 
5, 2016), available at https://transition.fcc.gov/form477/477inst.pdf. See also Modernizing the FCC Form 477 Data Program, 
Further Notice of Proposed Rulemaking, 32 FCC Rcd 6329, paras. 51-55 
(2017) (seeking comment on proposals that certain data collected in 
the Form 477 that are not commercially sensitive but are currently 
treated as confidential be made public).
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Initial Paperwork Reduction Act Analysis
    25. The NPRM may result in revised information collection 
requirements. If the Commission adopts any revised information 
collection requirement, the Commission will publish a notice in the 
Federal Register inviting the public to comment on the requirement, as 
required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 
U.S.C. 3501-3520). In addition, pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4), the Commission seeks specific comment on how it might 
``further reduce the information collection burden for small business 
concerns with fewer than 25 employees.''
Ex Parte Rules
    26. Permit-But-Disclose. This proceeding shall be treated as a 
``permit-but-disclose'' proceeding in accordance with the Commission's 
ex parte rules.\48\ Persons making ex parte presentations must file a 
copy of any written presentation or a memorandum summarizing any oral 
presentation within two business days after the presentation (unless a 
different deadline applicable to the Sunshine period applies). Persons 
making oral ex parte presentations are reminded that memoranda 
summarizing the presentation must (1) list all persons attending or 
otherwise participating in the meeting at which the ex parte 
presentation was made, and (2) summarize all data presented and 
arguments made during the presentation. If the presentation consisted 
in whole or in part of the presentation of data or arguments already 
reflected in the presenter's written comments, memoranda, or other 
filings in the proceeding, the presenter may provide citations to such 
data or arguments in his or her prior comments, memoranda, or other 
filings (specifying the relevant page and/or paragraph numbers where 
such data or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with rule Sec.  1.1206(b). In proceedings governed 
by rule Sec.  1.49(f) or for which the Commission has made available a 
method of electronic filing, written ex parte presentations and 
memoranda summarizing oral ex parte presentations, and all attachments 
thereto, must be filed through the electronic comment filing system 
available for that proceeding, and must be filed in their native format 
(e.g., .doc, .xml, .ppt, searchable .pdf). Participants in this 
proceeding should familiarize themselves with the Commission's ex parte 
rules.
---------------------------------------------------------------------------

    \48\ 47 CFR 1.1200 et seq.
---------------------------------------------------------------------------

Filing Requirements
    27. Comments and Replies. Pursuant to Sec. Sec.  1.415 and 1.419 of 
the Commission's rules, 47 CFR 1.415, 1.419, interested parties may 
file comments and reply comments on or before the dates indicated on 
the first page of this document. Comments may be filed using the 
Commission's Electronic Comment Filing System (ECFS). See Electronic 
Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (1998).
     Electronic Filers: Comments may be filed electronically 
using the internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/.
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing. If more than one docket 
or rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number.
    Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or overnight U.S. Postal Service 
mail. All filings must be addressed to the Commission's Secretary, 
Office of the Secretary, Federal Communications Commission.
    All hand-delivered or messenger-delivered paper filings for the 
Commission's Secretary must be delivered to FCC Headquarters at 445 
12th Street SW, TW-A325, Washington, DC 20554. The filing hours are 
8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with 
rubber bands or fasteners. Any envelopes and boxes must be disposed of 
before entering the building.
    Commercial overnight mail (other than U.S. Postal Service Express 
Mail and Priority Mail) must be sent to 9050 Junction Drive, Annapolis 
Junction, MD 20701.
    U.S. Postal Service first-class, Express, and Priority mail must be 
addressed to 445 12th Street SW, Washington, DC 20554.

[[Page 58372]]

    28. Availability of Documents. Comments, reply comments, and ex 
parte submissions will be available for public inspection during 
regular business hours in the FCC Reference Center, Federal 
Communications Commission, 445 12th Street SW, CY-A257, Washington, DC 
20554. These documents will also be available via ECFS. Documents will 
be available electronically in ASCII, Microsoft Word, and/or Adobe 
Acrobat.
    29. People with Disabilities. To request materials in accessible 
formats for people with disabilities (Braille, large print, electronic 
files, audio format), send an email to [email protected] or call the FCC's 
Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice), 
(202) 418-0432 (TTY).

Additional Information

    30. For additional information on this proceeding, contact Maria 
Mullarkey of the Policy Division, Media Bureau, at 
[email protected], or (202) 418-2120.

Initial Regulatory Flexibility Act Analysis

    31. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\49\ 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 the Notice of Proposed Rulemaking (NPRM). Written public 
comments are requested on this IRFA. Comments must be identified as 
responses to the IRFA and must be filed by the deadlines for comments 
provided on the first page of the NPRM. The Commission will send a copy 
of the NPRM, including this IRFA, to the Chief Counsel for Advocacy of 
the Small Business Administration (SBA).\50\ In addition, the NPRM and 
IRFA (or summaries thereof) will be published in the Federal 
Register.\51\
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    \49\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 857 (1996). 
The SBREFA was enacted as Title II of the Contract With America 
Advancement Act of 1996 (CWAAA).
    \50\ See 5 U.S.C. 603(a).
    \51\ See id.
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A. Need for, and Objectives of, the Proposed Rules

    32. Form 325 collects operational information from cable television 
systems nationwide, including their network structure, system-wide 
capacity, programming, and number of subscribers, which is used to 
inform the Commission's policymaking and enforcement activities on 
matters related to the cable industry. The NPRM seeks comment on the 
utility of collecting Form 325 data and whether the Commission should 
continue to require this annual filing by cable television systems. The 
NPRM also seeks comment on ways to modernize and streamline Form 325 to 
minimize the administrative burden on cable systems while ensuring that 
the most pertinent information about cable television systems is 
collected, if the Commission decides to retain the Form 325 data 
collection. Further, the NPRM seeks comment on the impact of the Form 
325 filing requirement on smaller cable systems and on whether the 
annual Form 325 filing requirement should continue to apply to a random 
sampling of cable systems that serve fewer than 20,000 subscribers.

B. Legal Basis

    33. The proposed action is authorized pursuant to sections 4(i), 
4(j), 303, and 628 of the Communications Act of 1934, as amended, 47 
U.S.C. 154(i), 154(j), 303, and 548.

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

    34. The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted.\52\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \53\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\54\ 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.\55\ Below, we provide a description of such 
small entities, as well as an estimate of the number of such small 
entities, where feasible.
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    \52\ 5 U.S.C. 603(b)(3).
    \53\ Id. sec. 601(6).
    \54\ Id. sec. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in 15 U.S.C. 632). Pursuant to 5 
U.S.C. 601(3), the statutory definition of a small business applies 
``unless an agency, after consultation with the Office of Advocacy 
of the Small Business Administration and after opportunity for 
public comment, establishes one or more definitions of such term 
which are appropriate to the activities of the agency and publishes 
such definition(s) in the Federal Register.'' 5 U.S.C. 601(3).
    \55\ 15 U.S.C. 632.
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    35. Cable Companies and Systems (Rate Regulation Standard). The 
Commission has also 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. Industry data indicate that, of 1,076 cable operators 
nationwide, all but 11 are small under this size standard. In addition, 
under the Commission's rules, a ``small system'' is a cable system 
serving 15,000 or fewer subscribers. Industry data indicate that, of 
6,635 systems nationwide, 5,802 systems have under 10,000 subscribers, 
and an additional 302 systems have 10,000-19,999 subscribers. Thus, 
under this second size standard, the Commission believes that most 
cable systems are small.
    36. Cable System Operators. The Act 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.'' The Commission has determined that an 
operator serving fewer than 677,000 subscribers shall be deemed a small 
operator, if its annual revenues, when combined with the total annual 
revenues of all its affiliates, do not exceed $250 million in the 
aggregate. Industry data indicate that, of 1,076 cable operators 
nationwide, all but 10 are small under this size standard. 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, and therefore we are unable to estimate 
more accurately the number of cable system operators that would qualify 
as small under this size standard.
    37. Open Video Services. Open Video Service (OVS) systems provide 
subscription services. The open video system framework was established 
in 1996, and is one of four statutorily recognized options for the 
provision of video programming services by local exchange carriers. The 
OVS framework provides opportunities for the distribution of video 
programming other than through cable systems. Because OVS operators 
provide subscription services, OVS falls within the SBA small business 
size standard covering cable services, which is ``Wired 
Telecommunications Carriers.'' The SBA has developed a small business

[[Page 58373]]

size standard for this category, which is: All such firms having 1,500 
or fewer employees. To gauge small business prevalence for the OVS 
service, the Commission relies on data currently available from the 
U.S. Census for the year 2012. According to that source, there were 
3,117 firms that in 2012 were Wired Telecommunications Carriers. Of 
these, 3,059 operated with less than 1,000 employees. Based on this 
data, the majority of these firms can be considered small. In addition, 
we note that the Commission has certified some OVS operators, with some 
now providing service. Broadband service providers (``BSPs'') are 
currently the only significant holders of OVS certifications or local 
OVS franchises. The Commission does not have financial or employment 
information regarding the entities authorized to provide OVS, some of 
which may not yet be operational. Thus, at least some of the OVS 
operators may qualify as small entities. The Commission further notes 
that it has certified approximately 45 OVS operators to serve 116 
areas, and some of these are currently providing service. Affiliates of 
Residential Communications Network, Inc. (RCN) received approval to 
operate OVS systems in New York City, Boston, Washington, DC, and other 
areas. RCN has sufficient revenues to assure that they do not qualify 
as a small business entity. Little financial information is available 
for the other entities that are authorized to provide OVS and are not 
yet operational. Given that some entities authorized to provide OVS 
service have not yet begun to generate revenues, the Commission 
concludes that up to 44 OVS operators (those remaining) might qualify 
as small businesses that may be affected by the rules and policies 
adopted herein.
    38. Satellite Master Antenna Television (SMATV) Systems, also known 
as Private Cable Operators (PCOs). SMATV systems or PCOs are video 
distribution facilities that use closed transmission paths without 
using any public right-of-way. They acquire video programming and 
distribute it via terrestrial wiring in urban and suburban multiple 
dwelling units such as apartments and condominiums, and commercial 
multiple tenant units such as hotels and office buildings. SMATV 
systems or PCOs are now included in the SBA's broad economic census 
category, ``Wired Telecommunications Carriers,'' which was developed 
for small wireline firms. Under this category, the SBA deems a wireline 
business to be small if it has 1,500 or fewer employees. Census data 
for 2012 indicate that in that year there were 3,117 firms operating 
businesses as wired telecommunications carriers. Of that 3,117, 3,059 
operated with 999 or fewer employees. Based on this data, we estimate 
that a majority of operators of SMATV/PCO companies were small under 
the applicable SBA size standard.

D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    39. As indicated above, the NPRM seeks comment on the utility of 
collecting Form 325 data and on whether the Commission should eliminate 
the Form 325 data collection entirely. The NPRM also seeks comment on 
ways to improve and modernize the form, if the Commission decides to 
retain the Form 325 data collection. With respect to each section of 
Form 325, the NPRM seeks comment on whether there is a continued need 
to collect the information solicited therein to the extent the form is 
retained, and, if not, whether the Commission should eliminate that 
particular section of the form; on the uses of the data and whether 
such data can be obtained from other sources; and on how the Commission 
can update or modernize the questions, if it decides to retain that 
particular section of the form. In order to evaluate any new or 
modified reporting, recordkeeping, or other compliance requirements 
that may result from the actions proposed in this NPRM, the Commission 
has sought input from the parties on various matters. For example, the 
NPRM seeks comment on the burden imposed by the Form 325 filing 
requirement on smaller cable systems; which data, if any, is 
particularly burdensome on smaller systems to provide; and whether the 
burden on smaller systems to file Form 325 will be significantly 
reduced if the form is streamlined and modernized as proposed in the 
NPRM. The NPRM tentatively concludes that, at a minimum, the Commission 
should exempt systems that serve fewer than 5,000 subscribers and are 
not affiliated with a larger operator from filing Form 325, if the form 
is retained. The NPRM also seeks comment on whether to exempt other 
smaller systems from having to complete the form or whether to maintain 
the current approach of requiring a sample of smaller cable systems to 
file the Form 325 each year. Through this NPRM, the Commission seeks to 
minimize the administrative burden on cable television systems, 
including smaller cable systems, improve the quality and usefulness of 
Form 325 data to reflect technological and other pertinent industry 
changes, and to ensure that the data collected are closely aligned with 
the uses to which they will be put by the Commission, if the Commission 
retains the form. We anticipate that the removal or modification of 
Form 325 reporting requirements will lead to a long-term reduction in 
reporting, recordkeeping, or other compliance requirements on all cable 
systems, including small entities.

E. Steps Taken To Minimize Significant Economic Impact on Small 
Entities and Significant Alternatives Considered

    40. 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 and reporting requirements under the rule for such 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.'' \56\
---------------------------------------------------------------------------

    \56\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------

    41. The Commission expects to more fully consider the economic 
impact on small entities following its review of comments filed in 
response to the NPRM and this IRFA. Generally, the NPRM seeks comment 
on the burden for cable operators to file Form 325 each year and on the 
amount of time and resources it takes to complete the filing for each 
cable system. The NPRM also asks whether the benefits and uses of the 
information collected via Form 325 outweigh the burdens and costs on 
cable systems to file the form. The NPRM also seeks specific comment on 
the burden imposed by the Form 325 filing requirement on smaller cable 
systems. The NPRM inquires as to which data is particularly burdensome 
on smaller systems to provide and on whether the burden on small 
systems to file Form 325 would be significantly reduced if the 
Commission streamlines and modernizes the form as discussed in the 
NPRM, if it decides to retain the form. The NPRM tentatively concludes 
that, at a minimum, the Commission should exempt systems that serve 
fewer than 5,000 subscribers and are not affiliated with a larger 
operator from filing Form 325, if the form is retained. The NPRM asks 
whether the Commission should exempt other smaller cable systems from 
having to complete the form or on any alternative approaches to 
alleviate the filing burden on smaller systems,

[[Page 58374]]

such as requiring smaller systems to file the report every few years 
instead of randomly sampling smaller systems annually. If the 
Commission decides to retain Form 325, it seeks comment on ways in 
which it can streamline the current requirements and thereby reduce the 
burdens on small cable system filers. The Commission's evaluation of 
the comments filed on these topics as well as on other questions in the 
NPRM that seek to reduce the burdens placed on small cable systems will 
shape the final conclusions it reaches, the final significant 
alternatives it considers, and the actions it ultimately takes in this 
proceeding to minimize any significant economic impact that may occur 
on small entities.

F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rule

    42. None.
    43. Accordingly, it is ordered that, pursuant to the authority 
found in sections 4(i), 4(j), 303, and 628 of the Communications Act of 
1934, as amended, 47 U.S.C. 154(i), 154(j), 303, and 548, this Notice 
of Proposed Rulemaking is adopted.
    44. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Notice of Proposed Rulemaking, including the Initial 
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the Small Business Administration.

List of Subjects in 47 CFR Part 79

    Cable television operators.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2017-26678 Filed 12-11-17; 8:45 am]
 BILLING CODE 6712-01-P



                                                                      Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Proposed Rules                                                     58365

                                                 B. Electronic Access                                       • Mail: Filings can be sent by hand or             commercial availability of cable
                                                    You may access this Federal Register                 messenger delivery, by commercial                     operator-related data, we think it is
                                                 document electronically from the                        overnight courier, or by first-class or               appropriate to take a fresh look at the
                                                 Government Printing Office under the                    overnight U.S. Postal Service mail. All               form and to evaluate the continued need
                                                 ‘‘Federal Register’’ listings at FDSys                  filings must be addressed to the                      for the Form 325 information collection.
                                                 (http://www.gpo.gov/fdsys/browse/                       Commission’s Secretary, Office of the                 We also note that, as part of the record
                                                 collection.action?collectionCode=FR).                   Secretary, Federal Communications                     in the Commission’s Modernization of
                                                                                                         Commission.                                           Media Regulation Initiative proceeding,
                                                 II. Overview                                               People with Disabilities: Contact the              some industry commenters request that
                                                   Under section 211(o)(11) of the Clean                 FCC to request reasonable                             the Commission reevaluate the
                                                 Air Act, EPA is required to conduct                     accommodations (accessible format                     requirement for cable systems to file
                                                 certain periodic reviews. A separate                    documents, sign language interpreters,                Form 325 and consider whether the
                                                 document entitled, ‘‘Periodic Reviews                   CART, etc.) by email: FCC504@fcc.gov                  form should be eliminated to reduce
                                                 for the Renewable Fuel Standard                         or phone: (202) 418–0530 or TTY: (202)                burdens on the cable industry.1 We seek
                                                 Program’’ explains our interpretation of                418–0432.
                                                                                                                                                               comment on whether the costs of the
                                                 the statutory text, including both                      FOR FURTHER INFORMATION CONTACT: For                  Form 325 data collection now exceed
                                                 ambiguities and unintelligible aspects of               additional information on this                        the benefits of the information and on
                                                 subparagraph (C) of CAA section                         proceeding, contact Maria Mullarkey of                whether there may be less burdensome
                                                 211(o)(11). That document also                          the Policy Division, Media Bureau at                  ways for the Commission to obtain this
                                                 describes our fulfillment of the                        Maria.Mullarkey@fcc.gov, or (202) 418–                data or on whether the form should be
                                                 obligation to conduct periodic reviews                  2120.
                                                                                                                                                               modified to reflect technological and
                                                 notwithstanding the interpretive issues,                SUPPLEMENTARY INFORMATION: This is a                  other pertinent industry changes.
                                                 and the contexts in which we have used                  summary of the Commission’s Notice of
                                                 the results of those periodic reviews.                  Proposed Rulemaking, FCC 17–157,                      I. Background
                                                 That document, and other supporting                     adopted and released on November 16,
                                                 documents, are available in the docket.                 2017. The full text of this document is                  2. Form 325 collects operational
                                                                                                         available electronically via the FCC’s                information from cable television
                                                   Dated: November 30, 2017.                                                                                   systems nationwide, including data
                                                 Christopher Grundler,                                   Electronic Document Management
                                                                                                         System (EDOCS) website at https://                    about subscriber numbers, equipment,
                                                 Director, Office of Transportation and Air                                                                    plant information, frequency and signal
                                                 Quality.                                                apps.fcc.gov/edocs_public/attachmatch/
                                                                                                         FCC-17-157A1.pdf. Documents will be                   distribution information, and
                                                 [FR Doc. 2017–26422 Filed 12–11–17; 8:45 am]                                                                  programming.2 The form must be filed
                                                                                                         available electronically in ASCII,
                                                 BILLING CODE 6560–50–P                                                                                        annually by all cable systems with
                                                                                                         Microsoft Word, and/or Adobe Acrobat.
                                                                                                         This document is also available for                   20,000 or more subscribers, which
                                                                                                         public inspection and copying during                  accounts for the vast majority of cable
                                                 FEDERAL COMMUNICATIONS                                  regular business hours in the FCC                     subscribers, and a random sampling of
                                                 COMMISSION                                              Reference Information Center, Federal                 small cable systems with fewer than
                                                                                                         Communications Commission, 445 12th                   20,000 subscribers.3 Each year in
                                                 47 CFR Part 76                                          Street SW, CY–A257, Washington, DC                    December, the Commission sends a
                                                 [MB Docket Nos. 17–290, 17–105; FCC 17–                 20554. Alternative formats are available              notification to each operator that must
                                                 157]                                                    for people with disabilities (Braille,                file Form 325 and instructs the operator
                                                                                                         large print, electronic files, audio                  to file the form electronically via the
                                                 FCC Form 325 Data Collection;                           format), by sending an email to fcc504@               Cable Operations and Licensing System
                                                 Modernization of Media Regulation                       fcc.gov or calling the Commission’s                   (COALS) within 60 days from the date
                                                 Initiative                                              Consumer and Governmental Affairs                     of the letter.4 Form 325 filers report data
                                                                                                         Bureau at (202) 418–0530 (voice), (202)               from the last week in December of the
                                                 AGENCY:  Federal Communications                         418–0432 (TTY).
                                                 Commission.                                                                                                   preceding year. Cable systems have filed
                                                                                                         Synopsis                                              the current version of Form 325 since
                                                 ACTION: Proposed rule.
                                                                                                                                                               2003, with minor updates made in
                                                                                                            1. This Notice of Proposed                         2008.5 Filers have been required to file
                                                 SUMMARY:   In this document, the Federal                Rulemaking (NPRM) seeks comment on
                                                 Communications Commission                               whether to eliminate Form 325, Annual                   1 See Comments of the American Cable
                                                 (Commission) seeks comment on                           Report of Cable Television Systems, or,               Association, MB Docket No. 17–105, at 26–27 (ACA
                                                 whether to eliminate Form 325, Annual                   in the alternative, on ways to modernize              Comments); Comments of NCTA—The Internet and
                                                 Report of Cable Television Systems, or,                 and streamline the form. Form 325                     Television Association, MB Docket No. 17–105, at
                                                 in the alternative, on ways to modernize                collects operational information from                 29–30 (NCTA Comments); Comments of Verizon,
                                                 and streamline the form.                                                                                      MB Docket No. 17–105, at 17–18 (Verizon
                                                                                                         cable television systems nationwide,                  Comments).
                                                 DATES: Comments are due on or before                    including their network structure,                      2 See 47 CFR 76.403. The FCC Form 325 is
                                                 February 12, 2018; reply comments are                   system-wide capacity, programming,                    available via the Commission’s website at http://
                                                 due on or before February 26, 2018.                     and number of subscribers. There have                 www.fcc.gov/forms or https://fcc.gov/coals/.
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                                                                                                                                                                 3 47 CFR 76.403.
                                                 ADDRESSES: You may submit comments,                     been significant changes in the                         4 See id. In recent years, this notification letter
                                                 identified by MB Docket Nos. 17–290,                    multichannel video programming                        has been emailed to cable systems. Follow up
                                                 17–105, by any of the following                         distributor (MVPD) marketplace and in                 notifications to operators that fail to file on time are
                                                 methods:                                                the way cable systems operate since the               sent via certified mail.
                                                   • Federal Communications                              Commission last examined the                            5 See FCC, Public Information Collection

                                                                                                                                                               Requirement Submitted to OMB for Review and
                                                 Commission’s website: http://fjallfoss.                 requirement to file Form 325 almost two               Approval, Comments Requested, Notice, 73 FR
                                                 fcc.gov/ecfs2/. Follow the instructions                 decades ago. Given these                              50814 (Aug. 28, 2008) (describing refinements made
                                                 for submitting comments.                                transformations in the industry, and the              to Form 325).



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                                                 58366                Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Proposed Rules

                                                 the form electronically via COALS since                    4. The Commission’s last significant                persuaded to eliminate the form, and it
                                                 2005.6                                                  modification of the Form 325 data                      found that ‘‘there is sufficient value in
                                                    3. The Commission first developed                    collection was in 1999.11 At that time,                the information collected . . . that the
                                                 the form for use in 1966 7 and                          the Commission revised and                             information collection process should
                                                 subsequently adopted it as an annual                    streamlined the form, and significantly                not be altogether eliminated.’’ 17
                                                 filing requirement in 1971.8 The                        reduced the number of cable systems                       5. Today, industry commenters argue
                                                 Commission explained in 1971 that the                   required to file Form 325 annually by                  that Form 325 is burdensome for cable
                                                 form was ‘‘necessary to enable the                      devising a sampling methodology to                     systems and has outlived its usefulness,
                                                 Commission to keep abreast of [cable TV                 gather information from systems with                   given the availability of information
                                                 system] developments, fulfill its                       fewer than 20,000 subscribers rather                   about the cable industry from
                                                 regulatory responsibilities in this field,              than requiring all such systems to file                alternative sources and the changes in
                                                 and assist Congress in its consideration                each year.12 The Commission sought ‘‘to                the MVPD marketplace. In the 2017
                                                 of related legislative proposals.’’ 9 At                strike a balance to reduce the burdens                 Modernization of Media Regulation
                                                 that time, the Commission required that                 placed upon the industry and on                        Initiative proceeding, NCTA—The
                                                 all cable systems file the form, declining              Commission resources in the Form 325                   Internet and Television Association
                                                 to exclude small systems from this                      information collection process while                   (NCTA), the American Cable
                                                 requirement because the Commission                      still retaining access to core information             Association (ACA), Verizon, and
                                                 concluded that it needed                                that is needed by the Commission in                    ITTA—The Voice of America’s
                                                 comprehensive data to properly                          order to perform its regulatory                        Broadband Providers (ITTA) each assert
                                                 evaluate such systems.10                                functions.’’ 13 It noted that the                      that the Commission should eliminate
                                                                                                         processing and compilation of Form 325                 the Form 325 requirement. NCTA argues
                                                   6 FCC, Public Notice, Media Bureau Implements
                                                                                                         data was ‘‘a labor intensive process for               that the routine collection of
                                                 Mandatory Electronic Filing of FCC Forms 320, 322,      the Commission.’’ 14 The Commission                    information does not make sense in
                                                 324, and 325 Via COALS, 19 FCC Rcd 13053 (MB
                                                 2004).                                                  concluded that the information                         today’s competitive video marketplace,
                                                   7 Amendment of Subpart L, Part 91, to Adopt           collected based on the sampling of                     particularly where there is no similar
                                                 Rules and Regulations to Govern the Grant of            subscribers would ‘‘provide the                        requirement applicable to non-cable
                                                 Authorizations in the Business Radio Service for        Commission with an adequate profile of                 MVPDs or online video distributors.18
                                                 Microwave Stations to Relay Television Signals to                                                              NCTA argues further that the Form 325
                                                 Community Antenna Systems; Amendment of
                                                                                                         how cable systems operate today and
                                                 Subpart I, Part 21, to Adopt Rules and Regulations      how they impact the general                            filing ‘‘is not statutorily required and
                                                 to Govern the Grant of Authorizations in the            population.’’ 15 At that time, the                     does not serve any clear or legitimate
                                                 Domestic Public Point-To-Point Microwave Radio          Commission also considered whether to                  purpose.’’ 19 ACA contends that Form
                                                 Service for Microwave Stations Used to Relay
                                                 Television Broadcast Signals to Community
                                                                                                         eliminate this data collection process                 325 collects information that is publicly
                                                 Antenna Television Systems; Amendment of Parts          entirely, assessing the utility of the form            available or provided to the Commission
                                                 21, 74, and 91 to Adopt Rules and Regulations           for purposes of the agency’s                           in other required filings, such as signal
                                                 Relating to the Distribution of Television Broadcast    policymaking and enforcement                           distribution and frequency information,
                                                 Signals By Community Antenna Television
                                                 Systems, and Related Matters, Second Report and
                                                                                                         activities.16 The Commission was not                   as well as information that has little
                                                 Order, 2 FCC 2d 725, para. 99 (1966). The 1966                                                                 utility today, such as set-top box and
                                                 Form 325 requested ownership information,               Television Systems, Report and Order, 36 FCC 2d
                                                 number of subscribers, broadcast signal carriage,       143 (1972) (adopting 47 CFR 76.401). Before 1976,      sources.’’ Id. In response, two commenters argued
                                                 program origination data, certain financial data, and   cable operators were required to file the form on a    in favor of keeping the form—the Institute for
                                                 a map of the system.                                    fixed date (on or before March 1). 47 CFR 76.401.      Public Representation, which argued that the
                                                   8 Amendment of Part 74, Subpart K, of the             In 1976, the Commission changed the process to         information in the form is critical to the
                                                 Commission’s Rules and Regulations Relative to          facilitate data automation, sending cable operators    Commission’s assessment of cable operator
                                                 Community Antenna Television Systems; and               a pre-filled form that cable operators corrected and   compliance with horizontal integration, must carry,
                                                 Inquiry Into the Development of Communications          returned to the Commission within 60 days. See         and leased access rules, and the National
                                                 Technology and Services to Formulate Regulatory         Amendment of Part 76 of the Commission’s Rules         Association of Broadcasters, which argued that the
                                                 Policy and Rulemaking and/or Legislative                and Regulations to Alter Cable Television Reporting    information would be needed for purposes of the
                                                 Proposals, Third Report and Order, 32 FCC 2d 13,        Requirements, Order, 61 FCC 2d 1014 (1976). At         Commission’s digital television must carry
                                                 para. 5 (1971).                                         this time, the Commission also moved the Form 325      rulemaking proceeding. 1999 Form 325 Order,
                                                   9 Id. para. 2.                                        reporting requirement to its current location at       paras. 9–10. Other industry commenters argued that
                                                   10 Id. para. 5 (finding that ‘‘excusing small         Section 76.403 of the rules. See id. (adopting 47      the form serves no identifiable regulatory or policy
                                                                                                         CFR 76.403). This process remained in place until      purpose, is burdensome to the cable industry, and
                                                 systems from filing certain data would deprive the
                                                                                                         2005, when operators were required to file the form    contains information that can be obtained from
                                                 Commission of the very information which it
                                                                                                         electronically via COALS.                              alternative sources, including data published by
                                                 lacks’’). In 1972, the Commission adopted rules            11 1998 Biennial Regulatory Review—‘‘Annual
                                                 governing the Cable Television Service, which                                                                  commercial resources or available through other
                                                 included the annual Form 325 reporting                  Report of Cable Television Systems,’’ Form 325,        government filings. Id. paras. 5–8.
                                                 requirement. See Amendment of Part 74, Subpart K,       Filed Pursuant to Section 76.403 of the                   17 1999 Form 325 Order, 14 FCC Rcd at 4725,

                                                 of the Commission’s Rules and Regulations Relative      Commission’s Rules, Report and Order, 14 FCC Rcd       4727, paras. 11, 14–15. See also 1998 Biennial
                                                 to Community Antenna Television Systems; and            4720 (1999) (1999 Form 325 Order).                     Regulatory Review—‘‘Annual Report of Cable
                                                                                                            12 Id. para. 12.
                                                 Inquiry into the Development of Communications                                                                 Television Systems,’’ Form 325, Filed Pursuant to
                                                 Technology and Services to Formulate Regulatory            13 Id. para. 11. But see id. (Statements of         Section 76.403 of the Commission’s Rules, Order on
                                                 Policy and Rulemaking and/or Legislative                Commissioners Furchtgott-Roth and Powell               Reconsideration, 15 FCC Rcd 9707 (2000). With
                                                 Proposals; Amendment of Section 74.1107 of the          dissenting from the Commission’s decision not to       respect to the argument that certain information on
                                                 Commission’s Rules and Regulations to Avoid             eliminate Form 325).                                   Form 325 is available from other sources, the
                                                 Filing of Repetitious Requests; Amendment of               14 Id. para. 4.                                     Commission observed that there are no assurances
                                                 Section 74.1031(c) and 74.1105(a) and (b) of the           15 Id. para. 12.                                    such information is current or collected
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                                                 Commission’s Rules and Regulations As They                 16 1998 Biennial Regulatory Review—‘‘Annual         consistently by commercial entities, and it noted
                                                 Relate to Addition of New Television Signals;           Report of Cable Television Systems,’’ Form 325,        that having current and accurate information
                                                 Amendment of Part 74, Subpart K, of the                 Filed Pursuant to Section 76.403 of the                available to the Commission is ‘‘of considerable
                                                 Commission’s Rules and Regulations Relative to          Commission’s Rules, Notice of Proposed                 importance.’’ 1999 Form 325 Order, paras. 14–15.
                                                                                                                                                                   18 NCTA Comments at 30. See also ACA
                                                 Federal–State or Local Relationships in the             Rulemaking, 13 FCC Rcd 12266, para. 6 (1998).
                                                 Community Antenna Television System Field; and/         Specifically, the Commission sought comment ‘‘on       Comments at 27 (noting that the Commission does
                                                 or Formulation of Legislative Proposals in this         whether it continues to be important for the           not request similar data from DBS providers or
                                                 Respect; Amendment of Subpart K of Part 74 of the       Commission to have access to the type of data          competitive video entrants that are not registered in
                                                 Commission’s Rules and Regulations With Respect         reported on the current Form 325 and the extent to     the COALS database).
                                                 to Technical Standards for Community Antenna            which this information is available from other            19 NCTA Comments at 30.




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                                                                      Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Proposed Rules                                                    58367

                                                 cable plant details.20 According to ACA,                of leased access channels being used on                Would eliminating Form 325 hinder the
                                                 the form is no longer necessary and                     cable systems.24 However, the                          Commission’s ability to evaluate the
                                                 should be eliminated.21 Likewise,                       Commission provides information on                     state of competition among cable
                                                 Verizon argues that the Commission                      the average number of leased access                    systems? If so, what aspects of the form
                                                 should eliminate Form 325 and its                       channels in its annual report on cable                 are essential to this evaluation?
                                                 associated data collection, opining that                industry prices.25 Is it still useful to                  8. We also seek comment on the
                                                 the information collected on the form                   collect this information on Form 325?                  burden for cable operators to file Form
                                                 does not fit competitive video services                 We note that the Commission started                    325 each year and, in particular, on the
                                                 such as Verizon, is not reflective of                   collecting information from cable                      amount of time and resources it takes to
                                                 today’s competitive video marketplace,                  systems via Form 325 well before cable                 complete the filing for each cable
                                                 and can be obtained from other                          operators became significant players in                system. Do the benefits and uses of the
                                                 sources.22 In reply comments, ITTA                      the broadband market. The Commission                   information collected via Form 325
                                                 agrees with the arguments set forth by                  currently collects information from                    outweigh the burdens and costs on cable
                                                 NCTA, ACA, and Verizon in favor of                      broadband providers, including cable                   systems to file the form? To the extent
                                                 eliminating Form 325.23 No commenters                   operators, on FCC Form 477, Local                      the Commission might in the future
                                                 argued in favor of retaining the form.                  Telephone Competition and Broadband                    need discrete information, would it be
                                                                                                         Reporting, and there is some overlap                   more cost effective for the Commission
                                                 II. Discussion                                                                                                 to undertake targeted information
                                                                                                         between the Form 325 and Form 477
                                                 A. Utility of Form 325 Reporting                        data collections.26 Is there a continued               collections to obtain it?
                                                 Requirement                                             need for the Commission to collect                        9. We also seek comment on whether
                                                                                                         Form 325 data to support the                           and to what extent Form 325 merely
                                                    6. We seek comment on the continued
                                                                                                         Commission’s policy initiatives and                    duplicates information that the
                                                 utility of collecting Form 325 data and
                                                                                                         decision making or to inform reports to                Commission can obtain from
                                                 whether the Commission should
                                                                                                         Congress, such as the Commission’s                     commercial sources. For example, the
                                                 eliminate the form entirely. Given the
                                                                                                         annual video competition report? 27                    Commission routinely cites data from
                                                 substantial changes in the MVPD
                                                                                                                                                                SNL Kagan, BIA/Kelsey, The Nielsen
                                                 marketplace and in the operations of                      24 1999  Form 325 Order, para. 22.                   Company, and Warren Communications
                                                 cable systems since the Commission last                   25 See  Implementation of Section 3 of the Cable     Television and Cable Factbook.28 What
                                                 considered the utility and effectiveness                Television Consumer Protection and Competition         other sources of cable data are available?
                                                 of the Form 325 data collection almost                  Act of 1992; Statistical Report on Average Rates for
                                                                                                                                                                Does the information collected by other
                                                 two decades ago, including the                          Basic Service, Cable Programming Service, and
                                                                                                         Equipment, Report on Cable Industry Prices, 31         sources duplicate what is collected via
                                                 transition to digital television and the
                                                                                                         FCC Rcd 11498, para. 21, table 6 (2016).               Form 325? In recent years the
                                                 development of new technologies and                       26 For example, Form 325 solicits information on
                                                                                                                                                                Commission has cited Form 325 data in
                                                 ways to deliver video programming to                    the number of cable modem (i.e., broadband)            a few proceedings.29 To the extent this
                                                 consumers, we believe it is appropriate                 subscribers and the number of telephony
                                                 to consider whether the form continues                  subscribers for each cable system, and Form 477
                                                                                                         collects information on the number of broadband        to inform other reports to Congress. See, e.g., In-
                                                 to be useful to the agency’s regulatory                 and telephony subscribers by census tract. See FCC     State Broadcast Programming: Report to Congress
                                                 and adjudicatory functions with respect                 Form 477, Local Telephone Competition and              Pursuant to Section 304 of the Satellite Television
                                                 to the cable industry and whether the                   Broadband Reporting, Instructions, Section 5:          Extension and Localism Act of 2010, Report, 26 FCC
                                                 information collected therein is                        Completing Each Section of FCC Form 477 (Dec. 5,       Rcd 11919, para. 42 (2011) (using Form 325 data to
                                                                                                         2016), available at https://transition.fcc.gov/form    determine the carriage of in-state broadcast stations
                                                 available from alternative sources. We                  477/477inst.pdf.                                       on cable systems).
                                                 also seek comment on the costs of this                    27 Form 325 data has been cited in the                 28 See, e.g., Annual Assessment of the Status of

                                                 requirement for cable systems and on                    Commission’s annual video competition reports, for     Competition in the Market for the Delivery of Video
                                                 whether the benefits of the information                 example, to show the growth in the number of all-      Programming, Eighteenth Report, 32 FCC Rcd 568
                                                                                                         digital cable systems and the percentage of            (2017) (citing data from Nielsen, BIA/Kelsey, and
                                                 outweigh the costs.                                                                                            SNL Kagan throughout as support for multiple data
                                                                                                         households passed by incumbent cable systems as
                                                    7. We seek comment on whether                        well as the percentage of households passed that       points regarding MVPDs, broadcast television
                                                 changes in the MVPD marketplace or                      subscribe to these systems. See, e.g., Annual          stations, and online video distributors); Cable
                                                 other factors since the Commission last                 Assessment of the Status of Competition in the         Television Technical and Operational Standards,
                                                                                                         Market for the Delivery of Video Programming,          Report and Order, MB Docket No. 12–217, FCC 17–
                                                 considered the utility and effectiveness                                                                       120, at 2, 35, para. 3, app. C, para. 8 & notes 16,
                                                                                                         Sixteenth Report, 30 FCC Rcd 3253, para. 79, tables
                                                 of the Form 325 data collection almost                  3–4 (2015) (using Form 325 data to show the growth     18 (rel. Sept. 25, 2017) (citing data from SNL Kagan
                                                 two decades ago should lead the                         in all-digital cable systems for cable systems with    on the percentage of cable video customers that
                                                 Commission to a different conclusion                    more than 20,000 subscribers and for the sampling      subscribe to digital service, and data from Warren
                                                                                                         of cable systems with between 5,000 and 20,000         Communications Television & Cable Factbook on
                                                 regarding the need for the Commission                                                                          the number of cable systems by subscriber size).
                                                                                                         subscribers); Annual Assessment of the Status of
                                                 to collect the data required by the form.               Competition in the Market for the Delivery of Video      29 In a recent channel sharing order, the
                                                 To what extent do the changes in the                    Programming, Fourteenth Report, 27 FCC Rcd 8610,       Commission reviewed data collected from the 2015
                                                 industry and regulatory environment                     paras. 70, 116, note 350 (2012) (citing Form 325       Form 325 filing to determine the number of low
                                                 since 1999 obviate or reduce the need                   data to show the percentage of households passed       power television (LPTV) and Class A stations
                                                                                                         by incumbent cable systems that subscribe to these     carried on cable systems pursuant to mandatory
                                                 for this information? For example, in the               systems as well as the number of very small cable      carriage. Expanding the Economic and Innovation
                                                 1999 Form 325 Order, the Commission                     systems (fewer than 5,000 subscribers) surveyed        Opportunities of Spectrum Through Incentive
                                                 noted the utility of the form in                        that offer neither internet access nor television      Auctions; Amendment of Parts 73 and 74 of the
                                                 providing information about the number                  access). In addition, Form 325 data has been cited     Commission’s Rules to Establish Rules for Digital
                                                                                                         as a source in the Commission’s annual reports on      Low Power Television and Television Translator
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                                                                                                         cable industry prices. See, e.g., Implementation of    Stations; Channel Sharing by Full Power and Class
                                                   20 ACA Comments at 27. See also Reply
                                                                                                         Section 3 of the Cable Television Consumer             A Stations Outside the Broadcast Television
                                                 Comments of the American Cable Association, MB          Protection and Competition Act of 1992; Statistical    Spectrum Incentive Auction Context, Report and
                                                 Docket No. 17–105, at 9–10.                             Report on Average Rates for Basic Service, Cable       Order, 32 FCC Rcd 2637, para. 12, note 47 (2017).
                                                   21 ACA Comments at 27.
                                                                                                         Programming Service, and Equipment, Report on          See also Carriage of Digital Television Broadcast
                                                   22 Verizon Comments at 17–18. See also Reply
                                                                                                         Cable Industry Prices, 31 FCC Rcd 11498, attach. 1     Signals: Amendment to Part 76 of the Commission’s
                                                 Comments of Verizon, MB Docket No. 17–105, at 6.        (2016) (citing Form 325 data for the numbers of        Rules, Fourth Further Notice of Proposed
                                                   23 Reply Comments of ITTA—The Voice of                cable communities by each sampling group (i.e.,        Rulemaking and Declaratory Order, 27 FCC Rcd
                                                 America’s Broadband Providers, MB Docket No. 17–        noncompetitive group and effective competition         1713, paras. 9–10, 20, notes 32–33, 36, 66–68, app.
                                                 105, at 8–9 (ITTA Reply).                               group)). The Commission has used Form 325 data                                                    Continued




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                                                 58368                Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Proposed Rules

                                                 information continues to be useful, can                 collected by the form no longer                          Form 325 data collection. We seek
                                                 the Commission obtain it from other                     necessary and raise new information                      comment on this tentative conclusion
                                                 sources? Is there unique value in having                needs not met by the current form. If the                and on whether we should modify or
                                                 the Commission collect the information                  Commission decides to retain the Form                    streamline this section of the form.
                                                 contained within Form 325, rather than                  325 data collection, we seek to                          Currently, Form 325 requires filers to
                                                 relying on third-party sources?                         minimize the administrative burden on                    provide the cable operator’s legal name
                                                    10. Are there other external uses of                 cable television systems and improve                     and complete mailing address,
                                                 the Form 325 data collection of which                   the quality and usefulness of Form 325                   including zip code. Are there any ways
                                                 the Commission should take account? 30                  data to reflect technological and other                  in which the Commission can
                                                 We note that Warren Communications                      pertinent industry changes. We also                      streamline this section of the form, such
                                                 annually files a Freedom of Information                 seek to ensure that the data we collect                  as by pre-filling information using a
                                                 Act (FOIA) request for Form 325 data                    are closely aligned with the uses to                     cable system’s Physical System
                                                 from the Commission and that other                      which they will be put by the                            Identifier (PSID), which is a six-digit
                                                 entities and individuals have                           Commission.                                              number used by the Commission to
                                                 periodically sought Form 325 data                          12. In addition, to the extent the form               identify each cable system.
                                                 through FOIA requests. The                              is retained, we propose to upgrade the
                                                 Commission does not provide this                        current COALS filing system to                           2. General Information
                                                 information in response to FOIA                         minimize the filing burden for cable                        15. Subscriber Information. We seek
                                                 requests until three years after initial                systems. An upgraded filing system                       comment on whether there is a
                                                 filing due to confidentiality requests                  would be able to pre-fill much of the                    continued need to collect cable
                                                 that are routinely filed by cable                       data that does not change from year to                   subscriber information to the extent the
                                                 operators. Is any information from                      year using other filings, such as                        form is retained, and, if not, whether we
                                                 alternative sources based on the FCC’s                  community registrations, online public                   should eliminate this section of the
                                                 Form 325 data?                                          inspection files (OPIF), and previous                    form. We seek comment on the uses of
                                                                                                         Form 325 submissions. Cable operators                    this data and whether we can obtain it
                                                 B. Ways To Improve and Modernize                                                                                 from other sources. We also seek
                                                                                                         will only have to verify the continued
                                                 Form 325 Data Collection                                                                                         comment on whether there are ways the
                                                                                                         accuracy of any pre-filled information,
                                                    11. If the Commission decides to                     and update those fields only if                          Commission can update or streamline
                                                 retain the Form 325 data collection, we                 necessary.                                               the reporting of information on cable
                                                 seek comment on ways to improve and                        13. Currently, Form 325 is organized                  subscribers, if it decides to retain this
                                                 modernize the form. The cable                           into five parts: (1) Operator information;               section of the form. Part II of Form 325
                                                 television industry has experienced                     (2) general information; (3) frequency                   requires the reporting of subscriber
                                                 many changes since Form 325 was last                    and signal distribution information; (4)                 information, including the number of
                                                 updated, most notably the ongoing                       channel line-up; and (5) certification.31                subscribers; number of potential
                                                 transition to digital technology and the                We seek comment below on each                            subscribers; whether the system is
                                                 introduction of video programming                       section of the form. We also seek                        overbuilt by a competing cable system;
                                                 delivered via internet protocol (IPTV).                 comment on whether the Commission                        number of homes passed that are also
                                                 These changes may render some data                      should consider any organizational                       passed by a competing cable system;
                                                                                                         changes to Form 325, such as changes                     name of incumbent operator(s) where
                                                 B (2012) (using Form 325 data to determine the          to the categories of information                         the system is overbuilt by a competing
                                                 number of cable subscribers served by all-digital       collected. Commenters should specify
                                                 systems, the number of broadcast stations that elect                                                             cable system; number of cable modem
                                                 or default to must carry on cable systems, and the      any elements of the data collection that                 subscribers; and number of telephony
                                                 number of small cable systems relying on the HD         we should consider for elimination,                      subscribers. Subscriber data is a useful
                                                 carriage exemption). Further, the Commission has        whether because of redundancy,                           measure of the size and competitiveness
                                                 used Form 325 data to evaluate and craft                insufficient usefulness, or availability
                                                 exemptions in rulemaking proceedings                                                                             of a cable system, and has been used by
                                                 implementing accessibility rules pursuant to the        from other sources, as well as elements                  the Commission to prepare the annual
                                                 Twenty-First Century Communications and Video           of the data collection that are                          video competition report and to inform
                                                 Accessibility Act of 2010. See Accessibility of User    particularly burdensome to filers. We                    our policymaking.32 For example, the
                                                 Interfaces, and Video Programming Guides and            also ask commenters to specify the data
                                                 Menus; Accessible Emergency Information, and                                                                     Commission has used subscriber data as
                                                 Apparatus Requirements for Emergency                    elements that should be retained or                      the basis for crafting rule exemptions
                                                 Information and Video Description: Implementation       modified, as well as the rationale for                   and justifying differing regulatory
                                                 of the Twenty-First Century Communications and          any proposed change. Is there any                        treatment based on the number of
                                                 Video Accessibility Act of 2010, Report and Order       information contained in Form 325 that
                                                 and Further Notice of Proposed Rulemaking, 28                                                                    subscribers served.33 Is subscriber data
                                                 FCC Rcd 17330, para. 117, note 473 (2013) (citing
                                                                                                         would be helpful to consumers? Could
                                                 Form 325 data for its estimate of the number of         some of the information be made                             32 But see Verizon Comments at 17

                                                 subscribers that would be affected by a longer          publicly available earlier than three                    (‘‘[I]nformation on subscriber counts and ‘homes
                                                 phase-in period for smaller and mid-sized cable         years from the date of filing?                           passed’ by cable systems does not reflect consumer
                                                 systems and operators in a 2013 order adopting                                                                   video viewing patterns or the competitive nature of
                                                 accessible user interfaces requirements); Closed        1. Operator Information                                  the video distribution market.’’).
                                                 Captioning of internet Protocol-Delivered Video                                                                     33 See, e.g., Implementation of the Commercial
                                                 Programming: Implementation of the Twenty-First            14. Identification and Contact                        Advertisement Loudness Mitigation (CALM) Act,
                                                 Century Communications and Video Accessibility          Information. To the extent the form is                   Report and Order, 26 FCC Rcd 17222, paras. 35–37,
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                                                 Act of 2010, Report and Order, 27 FCC Rcd 787,          retained, we tentatively conclude that                   52–54 (2011) (allowing MVPD systems with fewer
                                                 para. 96, note 382 (2012) (using information                                                                     than 15,000 subscribers and that are not affiliated
                                                 collected via Form 325 on the number of deployed
                                                                                                         cable system identification and contact
                                                                                                                                                                  with a larger operator serving more than 10 percent
                                                 set-top boxes to conclude that applying IP closed       information should remain a part of the                  of all MVPD subscribers to file streamlined
                                                 captioning rules only to devices with built-in                                                                   financial hardship waivers to delay compliance
                                                 screens would exclude one of the most common               31 Part V of Form 325 requires certification that     from CALM Act rules for up to two years and
                                                 means by which consumers view programming).             all statements of fact contained on the form are true,   excusing MVPD operators with fewer than 400,000
                                                   30 We also note that Form 325 filings are made        complete, and correct to the best of the certifying      subscribers from the requirement to perform annual
                                                 available to the public via COALS three years after     official’s knowledge, information, and belief, and       spot checks); Accessibility of User Interfaces, and
                                                 initial filing.                                         are made in good faith.                                  Video Programming Guides and Menus; Accessible



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                                                                       Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Proposed Rules                                             58369

                                                 available from alternative sources, and,                 information via Form 325 to the extent                  from other sources. We also seek
                                                 if so, is such data as accurate and                      the form is retained, and, if not, whether              comment on how the Commission can
                                                 current as data provided directly to the                 we should eliminate this section of the                 modernize this portion of Form 325 to
                                                 Commission by cable systems? We                          form. We seek comment on the uses of                    better reflect system capacity, if it
                                                 tentatively conclude that we should                      this data and whether we can obtain it                  decides to retain this section. Part II of
                                                 eliminate the collection of modem and                    from other sources. We also seek                        Form 325 collects information on the
                                                 telephony subscriber data via Form 325                   comment on whether there are ways the                   cable plant, including the type of
                                                 because similar data is collected via                    Commission can modernize this portion                   delivery system used (e.g., xDSL, fiber
                                                 FCC Form 477, Local Telephone                            of Form 325 to better reflect devices                   to the home, Hybrid Fiber-Coaxial (HFC)
                                                 Competition and Broadband Reporting,                     used by consumers to view cable                         network, or other); the length of optical
                                                 and we seek comment on this tentative                    programming, if it decides to retain this               fiber used in the plant; the number of
                                                 conclusion.34 Should we collect data on                  section. Part II of Form 325 collects the               fiber optic nodes, including the average
                                                 the number of analog and digital                         following equipment information: the                    number of subscribers served from these
                                                 subscribers so that the Commission can                   total number of leased cable modems                     nodes; whether the cable system is part
                                                 track the progress of each system’s                      deployed throughout the system and the                  of a cluster, and, if so, the number of
                                                 transition to all-digital service? Or, is                total number of leased set-top boxes                    systems included in the cluster and total
                                                 this information available from public                   deployed in the system, including a                     number of subscribers served by the
                                                 sources? We also seek comment on                         breakdown of this total into the number                 cluster; and whether the facility uses
                                                 whether we should retain the existing                    of analog, hybrid, and digital set-top                  Cable Television Relay Service (CARS)
                                                 instruction for how bulk rate customers                  boxes leased. Is this information                       links, as well as a list of all call signs
                                                 are calculated for the form, if the                      relevant to the Commission’s duties                     used by the system. Is this information
                                                 Commission continues to require                          under Section 629 of the                                still relevant to the Commission’s
                                                 reporting of subscriber numbers.                         Communications Act of 1934, as                          regulation of cable television? Collecting
                                                 Currently, when reporting the number                     amended? 36 Should we modify the                        information about system technology
                                                 of subscribers on Form 325, operators                    equipment section of Form 325 to better                 and capacity may enable us to better
                                                 must include an estimate of the number                   achieve our duties under Section 629,                   understand the ability of a system to
                                                 of subscribers who pay a bulk rate for                   and, if so, how? Or, is this information                comply with various regulations, based
                                                 service through an intermediary, such as                 available from public sources? What                     on their sophistication, capacity, and
                                                 apartment management. On the existing                    information will best allow the                         other technological limitations. Given
                                                 form, the instructions explain that the                  Commission to determine whether the                     that, in a digital world, the technical
                                                 number of bulk rate customers should                     market for equipment used to access                     specifications of the cable plant no
                                                 be calculated as follows: ‘‘[b]ulk-rate                  multichannel video programming is                       longer directly correlate to the systems’
                                                 customers = total annual bulk-rate                       fully competitive, pursuant to Section                  capacity for delivering programming,
                                                 charge divided by basic annual                           629? How can we best measure the level                  these questions may not provide
                                                 subscription rate for individual                         of competition as contemplated by                       meaningful information about an ever-
                                                 households.’’ 35 Is there any reason to                  Section 629? 37                                         growing percentage of systems. As cable
                                                 change this approach? Commenters                           17. Plant Information. We seek                        systems have converted to digital
                                                 advocating a different approach should                   comment on whether there is a                           technology, data on the number of
                                                 explain their proposed methodology                       continued need to collect plant                         programming streams, as well as on the
                                                 and why it would be an improvement                       information via Form 325 to the extent                  compression and modulation used, may
                                                 over the one currently in place.                         the form is retained, and, if not, whether              be more valuable than previous metrics
                                                    16. Equipment Information. We seek                    we should eliminate this section of the                 used for measuring capacity of analog
                                                 comment on whether there is a                            form. We seek comment on the uses of                    systems. We seek comment on this
                                                 continued need to collect equipment                      this data and whether we can obtain it                  analysis. Is such data available from
                                                                                                                                                                  other sources? In conjunction with
                                                 Emergency Information, and Apparatus                        36 Section 629(a) directs the Commission to          Section III.B.3 below (frequency and
                                                 Requirements for Emergency Information and Video         ‘‘adopt regulations to assure the commercial            signal distribution information), we seek
                                                 Description: Implementation of the Twenty-First          availability . . . of . . . equipment used by           comment on how the Commission can
                                                 Century Communications and Video Accessibility           consumers to access multichannel video
                                                 Act of 2010, Report and Order and Further Notice         programming and other services offered over
                                                                                                                                                                  update its questions on system
                                                 of Proposed Rulemaking, 28 FCC Rcd 17330, para.          multichannel video programming systems’’ from           technology and capacity should it retain
                                                 114 (2013) (granting a five-year delayed compliance      sources other than the multichannel video               the form.
                                                 deadline to MVPD operators with 400,000 or fewer         programming distributor. 47 U.S.C. 549(a). Section
                                                 subscribers and to MVPD systems with 20,000 or           629(e) states that the regulations will sunset ‘‘when   3. Frequency and Signal Distribution
                                                 fewer subscribers that are not affiliated with an        the Commission determines that—(1) the market for       Information
                                                 operator serving more than 10 percent of all MVPD        the multichannel video programming distributors is
                                                 subscribers).                                            fully competitive; (2) the market for converter            18. We seek comment on whether
                                                    34 See Form 477 Resources for Filers, https://        boxes, and interactive communications equipment,        there is a continued need to collect
                                                 www.fcc.gov/general/form-477-resources-filers.           used in conjunction with that service is fully          information on frequency and signal
                                                 Links to instructions detailing the data collected on    competitive; and (3) elimination of the regulations
                                                 the form and screen-shots of the form are provided       would promote competition and the public
                                                                                                                                                                  distribution to the extent the form is
                                                 at this location. Form 477 collects data semi-           interest.’’ Id. sec. 549(e).                            retained, and, if not, whether we should
                                                 annually about broadband connections to end-user            37 See GAO Report, Video Programming: FCC            eliminate this section of the form. We
                                                 locations, wired and wireless local telephone            Should Conduct Additional Analysis to Evaluate          seek comment on the uses of this data
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                                                 services, and interconnected Voice over internet         Need for Set-Top Box Regulation, at 22–23 (Sept.        and whether we can obtain it from other
                                                 Protocol (VoIP), and it requires all covered             2017) (recommending that the FCC, ‘‘as part of its
                                                 providers to file, regardless of size. See Modernizing   future annual video competition reports, analyze
                                                                                                                                                                  sources. We also seek comment on how
                                                 the FCC Form 477 Data Collection, Further Notice         how the ongoing evolution in the video                  the Commission can modernize the
                                                 of Proposed Rulemaking, 32 FCC Rcd 6329, para.           programming market affects competition in the           questions about a cable system’s
                                                 2 (2017).                                                related market for set-top boxes and devices,           technical capabilities, capacity, and
                                                    35 See Instructions for FCC Form 325, Annual          including how this evolution affects the extent to
                                                 Report of Cable Television Systems, Section II.2.a       which consumer choice for devices to access MVPD
                                                                                                                                                                  potential for growth, including its
                                                 (General Information, Subscriber Information,            content remains a relevant aspect of the competitive    ability to offer sophisticated services, if
                                                 Number of Subscribers).                                  environment’’).                                         it decides to retain this section of the


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                                                 58370                Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Proposed Rules

                                                 form. Part III of Form 325 requires cable               Currently, Part IV of Form 325 requires                  increases the burden on those smaller
                                                 systems to report frequency and signal                  cable systems to list the program                        providers selected, as the operators
                                                 distribution information, including                     name,39 type (e.g., broadcast must carry,                often have no experience filling [out]
                                                 available upstream spectrum and                         broadcast retransmission consent,                        the form and must often engage outside
                                                 maximum activated upstream spectrum;                    leased access, public access,                            resources for assistance completing
                                                 available downstream spectrum and                       government access, education access,                     it.’’ 43 Which data, if any, is particularly
                                                 maximum activated downstream                            local origination, cable network, or                     burdensome on smaller systems to
                                                 spectrum; number of channels allocated                  other), format (e.g., analog, digital, or                provide? Commenters should explain
                                                 to analog video programming and the                     digital high definition), and tier (e.g.,                and quantify such burden. If the
                                                 number of channels actually used for                    basic, cable programming services tier/                  Commission decides to retain the form,
                                                 analog video programming; number of                     expanded basic tier, premium, pay per                    will the burden on small systems to file
                                                 channels allocated to digital video                     view, or other) for each program carried                 Form 325 be significantly reduced if the
                                                 programming and the number of                           on the system. We seek general                           Commission streamlines and
                                                 channels actually used for digital video                comment on the burdens associated                        modernizes the form as discussed
                                                 programming; number of digital streams                  with the collection of programming                       herein? How is the data from smaller
                                                 carried per 6 MHz of bandwidth; and                     information and any associated benefits.                 cable systems useful to the Commission,
                                                 modulation method used. To what                                                                                  and does its usefulness outweigh the
                                                 extent does this type of data enable the                C. Procedural Changes for Filing Form                    burden on such systems?
                                                 Commission to measure a system’s                        325                                                         22. We tentatively conclude that, at a
                                                 competitiveness and aid our                                20. Applicability of Requirement to                   minimum, the Commission should
                                                 policymaking with respect to the cable                  Small Cable Systems. We seek comment                     exempt systems that serve fewer than
                                                 industry? Does the ongoing cable                        on whether the annual Form 325 filing                    5,000 subscribers and are not affiliated
                                                 transition to digital transmission and                  requirement should continue to apply to                  with a larger operator from filing Form
                                                 other advancements in cable                             a random sampling of cable systems that                  325, if the form is retained. We seek
                                                 technology, such as IPTV, render many                   serve fewer than 20,000 subscribers, if                  comment on this tentative conclusion.
                                                 of the current questions on this part of                the Commission decides to retain the                     Given the relative burdens and benefits,
                                                 the form ineffective or unnecessary, or                 form.40 Specifically, the Commission                     should we also exempt other smaller
                                                 does it raise new information needs not                 samples approximately 50 percent of the                  systems from having to complete the
                                                 met by the current form? Is there a need                systems serving between 5,000 and                        form? In addition, for those small cable
                                                 for the Commission to understand the                    20,000 subscribers, but only                             systems that may still be required to file,
                                                 current capacity of a system, its                       approximately 4 percent of systems                       should the Commission maintain the
                                                 potential for increases in capacity, and                serving fewer than 5,000 subscribers.41                  current approach of requiring only a
                                                 the rate at which new capacity is being                    21. We seek specific comment on the                   sample of these systems to file Form 325
                                                 delivered into the marketplace over                     burden imposed by the Form 325 filing                    each year? Instead of randomly
                                                 time? If so, how can we gather                          requirement on smaller cable systems.                    sampling smaller systems annually,
                                                 information on system technology and                    In its media modernization proceeding                    should we require smaller systems to
                                                 capacity in a way that will prove                       comments, ACA contends that, should                      file the report every two, three, or five
                                                 flexible and informative as technology                  the Commission decide to retain Form                     years, or some other time period? How
                                                 continues to evolve? Is such data                       325, it should no longer require cable                   should we define small systems for such
                                                 available from other sources?                           systems with fewer than 20,000                           purposes? For example, we could
                                                                                                         subscribers to complete the form.42                      require systems that serve between
                                                 4. Channel Line-Up                                                                                               5,000 and 20,000 subscribers and are
                                                                                                         According to ACA, ‘‘[r]andomly
                                                    19. We tentatively conclude that we                  sampling smaller cable systems                           not affiliated with a larger operator
                                                 should eliminate the collection of                                                                               (serving more than 2 percent of all
                                                 channel line-up information to the                      certain Commission regulatory requirements, which        MVPD subscribers 44) to file every three
                                                 extent the form is retained. We note that               will allow the Commission to evaluate the                years. We seek comment on these or any
                                                 information about a cable system’s                      effectiveness of these rules and facilitate              other alternative approaches.
                                                                                                         enforcement. This would include broadcast must
                                                 programming is available from online                    carry stations, including local commercial stations,        23. Fixed Date for Form 325 Annual
                                                 sources, including on cable operator                    qualified local non-commercial educational (NCE)         Filing. We seek comment on whether we
                                                 websites and from third-party guide                     stations, and qualified LPTV or Class A stations;        should set a fixed date on which cable
                                                 services. Given the availability of this                broadcast retransmission consent stations,               systems must annually file Form 325, if
                                                                                                         including local commercial stations, significantly-
                                                 information from other public sources,                  viewed stations, distant (out-of-market) stations,       the Commission decides to retain the
                                                 we tentatively conclude that it is not                  and qualified LPTV or Class A stations; leased           form. Currently, all systems, even those
                                                 necessary to continue to collect it from                access; public access; government access;                with 20,000 or more subscribers, wait
                                                 the cable operators via Form 325. We                    educational access; and local origination. See, e.g.,    for the Commission to notify them of
                                                                                                         47 CFR 76.55, 76.56, 76.64, 76.970, 76.971.
                                                 seek comment on this tentative                             39 The instructions to Form 325 specify that
                                                                                                                                                                  their obligation to file Form 325. This
                                                 conclusion. If, on the other hand, the                  ‘‘program name’’ refers to ‘‘[t]he call sign of the TV   notification, in addition to establishing
                                                 Commission ultimately decides that this                 broadcast station or abbreviation for the pay TV         the obligation to file, begins a 60-day
                                                 information collection is necessary and                 service or non-broadcast (usually satellite              clock determining when the operator
                                                                                                         delivered) service distributed on the system (e.g.,
                                                 useful, are there ways for the                          ESPN, CSPAN, HBO).’’
                                                                                                                                                                  must file.45 As a result, operators remain
                                                 Commission to streamline this section                                                                            uncertain, from year to year, when they
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                                                                                                            40 See 47 CFR 76.403.
                                                 of Form 325 to reduce the burden on                        41 Staff analysis of 2016 Form 325 Annual Report

                                                 cable systems to input their entire                     of Cable Television Systems. For the 2016 filing           43 ACA Comments at 27. See also NCTA

                                                 channel lineup? For example, should                     year, 544 cable systems with fewer than 20,000           Comments at 30 (‘‘Operators devote many hours to
                                                                                                         subscribers were selected to file Form 325. Of those,    completion of the filing for each PSID every year.’’).
                                                 we reduce the types of program                          354 were cable systems with between 5,000 and              44 See Carriage of Digital Television Broadcast
                                                 channels that must be reported? 38                      20,000 subscribers, and 190 were cable systems           Signals: Amendment to Part 76 of the Commission’s
                                                                                                         with fewer than 5,000 subscribers.                       Rules, Sixth Report and Order, 30 FCC Rcd 6653,
                                                   38 For example, we could require cable systems to        42 ACA Comments at 27. See also ITTA Reply at         para. 4 (2015).
                                                 report only those types of channels that relate to      9, note 33.                                                45 See 47 CFR 76.403.




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                                                                      Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Proposed Rules                                               58371

                                                 must file. Should we instead set a fixed                Initial Paperwork Reduction Act                          § 1.1206(b). In proceedings governed by
                                                 date on which filing must occur? We                     Analysis                                                 rule § 1.49(f) or for which the
                                                 believe this approach could simplify the                  25. The NPRM may result in revised                     Commission has made available a
                                                 annual reporting process and add                        information collection requirements. If                  method of electronic filing, written ex
                                                 certainty and efficiency to the operator’s              the Commission adopts any revised                        parte presentations and memoranda
                                                 workflow and that of the Commission,                    information collection requirement, the                  summarizing oral ex parte
                                                 and we seek comment on this analysis.                   Commission will publish a notice in the                  presentations, and all attachments
                                                 If the Commission were to adopt a fixed                 Federal Register inviting the public to                  thereto, must be filed through the
                                                 due date, which date would be                           comment on the requirement, as                           electronic comment filing system
                                                 appropriate? Currently, we request that                 required by the Paperwork Reduction                      available for that proceeding, and must
                                                 systems report their information as of                  Act of 1995, Public Law 104–13 (44                       be filed in their native format (e.g., .doc,
                                                 the last full week in December, and                     U.S.C. 3501–3520). In addition,                          .xml, .ppt, searchable .pdf). Participants
                                                 believe retaining that ‘‘as of’’ date makes             pursuant to the Small Business                           in this proceeding should familiarize
                                                 sense for year-to-year consistency. The                 Paperwork Relief Act of 2002, Public                     themselves with the Commission’s ex
                                                 date should ensure that cable systems                   Law 107–198, see 44 U.S.C. 3506(c)(4),                   parte rules.
                                                 have sufficient time to compile and file                the Commission seeks specific comment                    Filing Requirements
                                                 their information. Given that the                       on how it might ‘‘further reduce the
                                                 Commission previously required Form                                                                                 27. Comments and Replies. Pursuant
                                                                                                         information collection burden for small
                                                 325 to be filed on March 1 of each year,                                                                         to §§ 1.415 and 1.419 of the
                                                                                                         business concerns with fewer than 25
                                                 would that be an appropriate date?                                                                               Commission’s rules, 47 CFR 1.415,
                                                                                                         employees.’’
                                                    24. Confidential Treatment of Form                                                                            1.419, interested parties may file
                                                 325. We seek comment on whether we                      Ex Parte Rules                                           comments and reply comments on or
                                                 should adopt any standardized                              26. Permit-But-Disclose. This                         before the dates indicated on the first
                                                 confidentiality procedures for Form 325,                proceeding shall be treated as a ‘‘permit-               page of this document. Comments may
                                                 if the Commission decides to retain the                 but-disclose’’ proceeding in accordance                  be filed using the Commission’s
                                                 form, and, if so, what those standards                  with the Commission’s ex parte rules.48                  Electronic Comment Filing System
                                                 should be. Form 325 filings and the                     Persons making ex parte presentations                    (ECFS). See Electronic Filing of
                                                 information contained therein generally                 must file a copy of any written                          Documents in Rulemaking Proceedings,
                                                 are not made available to the public                    presentation or a memorandum                             63 FR 24121 (1998).
                                                 until three years after filing due to                   summarizing any oral presentation                           • Electronic Filers: Comments may be
                                                 confidentiality requests that are                       within two business days after the                       filed electronically using the internet by
                                                 routinely filed by cable operators, but                 presentation (unless a different deadline                accessing the ECFS: http://
                                                 are made public via COALS thereafter.46                 applicable to the Sunshine period                        fjallfoss.fcc.gov/ecfs2/.
                                                                                                         applies). Persons making oral ex parte                      • Paper Filers: Parties who choose to
                                                 Before the three-year period, the data is
                                                                                                         presentations are reminded that                          file by paper must file an original and
                                                 used by the Commission on an
                                                                                                         memoranda summarizing the                                one copy of each filing. If more than one
                                                 anonymized basis. Should the
                                                                                                         presentation must (1) list all persons                   docket or rulemaking number appears in
                                                 Commission automatically designate
                                                                                                         attending or otherwise participating in                  the caption of this proceeding, filers
                                                 certain sections of Form 325 as
                                                                                                         the meeting at which the ex parte                        must submit two additional copies for
                                                 confidential for all filers, and, if so,
                                                                                                         presentation was made, and (2)                           each additional docket or rulemaking
                                                 which sections? Is there a need to adopt
                                                                                                         summarize all data presented and                         number.
                                                 more formal Form 325 confidentiality                                                                                Filings can be sent by hand or
                                                 procedures or are the Commission’s                      arguments made during the
                                                                                                                                                                  messenger delivery, by commercial
                                                 current practices sufficient? Should the                presentation. If the presentation
                                                                                                                                                                  overnight courier, or by first-class or
                                                 Commission provide a mechanism for                      consisted in whole or in part of the
                                                                                                                                                                  overnight U.S. Postal Service mail. All
                                                 filers to request confidentiality within                presentation of data or arguments
                                                                                                                                                                  filings must be addressed to the
                                                 the Form 325 as it does with regard to                  already reflected in the presenter’s
                                                                                                                                                                  Commission’s Secretary, Office of the
                                                 Form 477 filers? 47                                     written comments, memoranda, or other
                                                                                                                                                                  Secretary, Federal Communications
                                                                                                         filings in the proceeding, the presenter
                                                                                                                                                                  Commission.
                                                   46 Cable operators, cognizant of potentially
                                                                                                         may provide citations to such data or                       All hand-delivered or messenger-
                                                 sensitive information disclosed on the form, often      arguments in his or her prior comments,
                                                 request that all or portions of the form not be made                                                             delivered paper filings for the
                                                 routinely available to the public pursuant to Section   memoranda, or other filings (specifying                  Commission’s Secretary must be
                                                 0.459 of the Commission’s rules. See, e.g., Request     the relevant page and/or paragraph                       delivered to FCC Headquarters at 445
                                                 for Confidentiality for Information Submitted on        numbers where such data or arguments                     12th Street SW, TW–A325, Washington,
                                                 Forms 325 for the Year 2004, Order, 21 FCC Rcd          can be found) in lieu of summarizing
                                                 2312 (MB 2006) (Request for Confidentiality). See                                                                DC 20554. The filing hours are 8:00 a.m.
                                                 also 47 CFR 0.459, 0.461. The Media Bureau has          them in the memorandum. Documents                        to 7:00 p.m. All hand deliveries must be
                                                 recognized that information on Form 325 is              shown or given to Commission staff                       held together with rubber bands or
                                                 commercial in nature and, in the past, has made the     during ex parte meetings are deemed to                   fasteners. Any envelopes and boxes
                                                 determination of whether to keep commercial             be written ex parte presentations and
                                                 information confidential on a case-by-case basis by                                                              must be disposed of before entering the
                                                 determining whether there is a ‘‘preponderance of       must be filed consistent with rule                       building.
                                                 the evidence that shows that disclosure of the                                                                      Commercial overnight mail (other
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                                                 information will cause the parties substantial          Requesting Confidentiality, at 32 (Dec. 5, 2016),
                                                 competitive harm.’’ Request for Confidentiality,        available at https://transition.fcc.gov/form477/
                                                                                                                                                                  than U.S. Postal Service Express Mail
                                                 para. 4.                                                477inst.pdf. See also Modernizing the FCC Form           and Priority Mail) must be sent to 9050
                                                   47 Filers of FCC Form 477 are instructed that they    477 Data Program, Further Notice of Proposed             Junction Drive, Annapolis Junction, MD
                                                 may submit a request that certain information in the    Rulemaking, 32 FCC Rcd 6329, paras. 51–55 (2017)         20701.
                                                 submission not be made routinely available for          (seeking comment on proposals that certain data             U.S. Postal Service first-class,
                                                 public inspection by so indicating in the ‘‘Filer       collected in the Form 477 that are not commercially
                                                 Identification Information’’ for that submission. See   sensitive but are currently treated as confidential be   Express, and Priority mail must be
                                                 FCC Form 477, Local Telephone Competition and           made public).                                            addressed to 445 12th Street SW,
                                                 Broadband Reporting, Instructions, Section 7.4:           48 47 CFR 1.1200 et seq.                               Washington, DC 20554.


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                                                 58372                Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Proposed Rules

                                                   28. Availability of Documents.                        subscribers, which is used to inform the                number of such small entities, where
                                                 Comments, reply comments, and ex                        Commission’s policymaking and                           feasible.
                                                 parte submissions will be available for                 enforcement activities on matters                          35. Cable Companies and Systems
                                                 public inspection during regular                        related to the cable industry. The NPRM                 (Rate Regulation Standard). The
                                                 business hours in the FCC Reference                     seeks comment on the utility of                         Commission has also developed its own
                                                 Center, Federal Communications                          collecting Form 325 data and whether                    small business size standards, for the
                                                 Commission, 445 12th Street SW,                         the Commission should continue to                       purpose of cable rate regulation. Under
                                                 CY–A257, Washington, DC 20554.                          require this annual filing by cable                     the Commission’s rules, a ‘‘small cable
                                                 These documents will also be available                  television systems. The NPRM also                       company’’ is one serving 400,000 or
                                                 via ECFS. Documents will be available                   seeks comment on ways to modernize                      fewer subscribers, nationwide. Industry
                                                 electronically in ASCII, Microsoft Word,                and streamline Form 325 to minimize                     data indicate that, of 1,076 cable
                                                 and/or Adobe Acrobat.                                   the administrative burden on cable                      operators nationwide, all but 11 are
                                                   29. People with Disabilities. To                      systems while ensuring that the most                    small under this size standard. In
                                                 request materials in accessible formats                 pertinent information about cable                       addition, under the Commission’s rules,
                                                 for people with disabilities (Braille,                  television systems is collected, if the                 a ‘‘small system’’ is a cable system
                                                 large print, electronic files, audio                    Commission decides to retain the Form                   serving 15,000 or fewer subscribers.
                                                 format), send an email to fcc504@fcc.gov                325 data collection. Further, the NPRM                  Industry data indicate that, of 6,635
                                                 or call the FCC’s Consumer and                          seeks comment on the impact of the                      systems nationwide, 5,802 systems have
                                                 Governmental Affairs Bureau at (202)                    Form 325 filing requirement on smaller                  under 10,000 subscribers, and an
                                                 418–0530 (voice), (202) 418–0432                        cable systems and on whether the                        additional 302 systems have 10,000–
                                                 (TTY).                                                  annual Form 325 filing requirement                      19,999 subscribers. Thus, under this
                                                                                                         should continue to apply to a random                    second size standard, the Commission
                                                 Additional Information                                                                                          believes that most cable systems are
                                                                                                         sampling of cable systems that serve
                                                   30. For additional information on this                fewer than 20,000 subscribers.                          small.
                                                 proceeding, contact Maria Mullarkey of                                                                             36. Cable System Operators. The Act
                                                 the Policy Division, Media Bureau, at                   B. Legal Basis                                          also contains a size standard for small
                                                 Maria.Mullarkey@fcc.gov, or (202) 418–                                                                          cable system operators, which is ‘‘a
                                                                                                           33. The proposed action is authorized                 cable operator that, directly or through
                                                 2120.                                                   pursuant to sections 4(i), 4(j), 303, and               an affiliate, serves in the aggregate fewer
                                                 Initial Regulatory Flexibility Act                      628 of the Communications Act of 1934,                  than 1 percent of all subscribers in the
                                                 Analysis                                                as amended, 47 U.S.C. 154(i), 154(j),                   United States and is not affiliated with
                                                                                                         303, and 548.                                           any entity or entities whose gross
                                                   31. As required by the Regulatory
                                                 Flexibility Act of 1980, as amended                     C. Description and Estimate of the                      annual revenues in the aggregate exceed
                                                 (RFA),49 the Commission has prepared                    Number of Small Entities to Which the                   $250,000,000.’’ The Commission has
                                                 this present Initial Regulatory                         Proposed Rules Will Apply                               determined that an operator serving
                                                 Flexibility Analysis (IRFA) concerning                                                                          fewer than 677,000 subscribers shall be
                                                 the possible significant economic                          34. The RFA directs agencies to                      deemed a small operator, if its annual
                                                 impact on small entities by the policies                provide a description of, and where                     revenues, when combined with the total
                                                 and rules proposed in the Notice of                     feasible, an estimate of the number of                  annual revenues of all its affiliates, do
                                                 Proposed Rulemaking (NPRM). Written                     small entities that may be affected by                  not exceed $250 million in the
                                                 public comments are requested on this                   the proposed rules, if adopted.52 The                   aggregate. Industry data indicate that, of
                                                 IRFA. Comments must be identified as                    RFA generally defines the term ‘‘small                  1,076 cable operators nationwide, all
                                                 responses to the IRFA and must be filed                 entity’’ as having the same meaning as                  but 10 are small under this size
                                                 by the deadlines for comments provided                  the terms ‘‘small business,’’ ‘‘small                   standard. We note that the Commission
                                                 on the first page of the NPRM. The                      organization,’’ and ‘‘small governmental                neither requests nor collects information
                                                 Commission will send a copy of the                      jurisdiction.’’ 53 In addition, the term                on whether cable system operators are
                                                 NPRM, including this IRFA, to the Chief                 ‘‘small business’’ has the same meaning                 affiliated with entities whose gross
                                                 Counsel for Advocacy of the Small                       as the term ‘‘small business concern’’                  annual revenues exceed $250 million,
                                                 Business Administration (SBA).50 In                     under the Small Business Act.54 A small                 and therefore we are unable to estimate
                                                 addition, the NPRM and IRFA (or                         business concern is one which: (1) Is                   more accurately the number of cable
                                                 summaries thereof) will be published in                 independently owned and operated; (2)                   system operators that would qualify as
                                                 the Federal Register.51                                 is not dominant in its field of operation;              small under this size standard.
                                                                                                         and (3) satisfies any additional criteria                  37. Open Video Services. Open Video
                                                 A. Need for, and Objectives of, the                     established by the SBA.55 Below, we                     Service (OVS) systems provide
                                                 Proposed Rules                                          provide a description of such small                     subscription services. The open video
                                                                                                         entities, as well as an estimate of the                 system framework was established in
                                                   32. Form 325 collects operational
                                                                                                                                                                 1996, and is one of four statutorily
                                                 information from cable television
                                                                                                           52 5 U.S.C. 603(b)(3).                                recognized options for the provision of
                                                 systems nationwide, including their
                                                                                                           53 Id. sec. 601(6).                                   video programming services by local
                                                 network structure, system-wide                            54 Id. sec. 601(3) (incorporating by reference the    exchange carriers. The OVS framework
                                                 capacity, programming, and number of                    definition of ‘‘small-business concern’’ in 15 U.S.C.   provides opportunities for the
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                                                                                                         632). Pursuant to 5 U.S.C. 601(3), the statutory        distribution of video programming other
                                                   49 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601–
                                                                                                         definition of a small business applies ‘‘unless an
                                                 612, has been amended by the Small Business             agency, after consultation with the Office of           than through cable systems. Because
                                                 Regulatory Enforcement Fairness Act of 1996             Advocacy of the Small Business Administration           OVS operators provide subscription
                                                 (SBREFA), Public Law 104–121, Title II, 110 Stat.       and after opportunity for public comment,               services, OVS falls within the SBA
                                                 857 (1996). The SBREFA was enacted as Title II of       establishes one or more definitions of such term
                                                 the Contract With America Advancement Act of
                                                                                                                                                                 small business size standard covering
                                                                                                         which are appropriate to the activities of the agency
                                                 1996 (CWAAA).                                           and publishes such definition(s) in the Federal         cable services, which is ‘‘Wired
                                                   50 See 5 U.S.C. 603(a).                               Register.’’ 5 U.S.C. 601(3).                            Telecommunications Carriers.’’ The
                                                   51 See id.                                              55 15 U.S.C. 632.                                     SBA has developed a small business


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                                                                      Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Proposed Rules                                            58373

                                                 size standard for this category, which is:              indicate that in that year there were                 and to ensure that the data collected are
                                                 All such firms having 1,500 or fewer                    3,117 firms operating businesses as                   closely aligned with the uses to which
                                                 employees. To gauge small business                      wired telecommunications carriers. Of                 they will be put by the Commission, if
                                                 prevalence for the OVS service, the                     that 3,117, 3,059 operated with 999 or                the Commission retains the form. We
                                                 Commission relies on data currently                     fewer employees. Based on this data, we               anticipate that the removal or
                                                 available from the U.S. Census for the                  estimate that a majority of operators of              modification of Form 325 reporting
                                                 year 2012. According to that source,                    SMATV/PCO companies were small                        requirements will lead to a long-term
                                                 there were 3,117 firms that in 2012 were                under the applicable SBA size standard.               reduction in reporting, recordkeeping,
                                                 Wired Telecommunications Carriers. Of                                                                         or other compliance requirements on all
                                                                                                         D. Description of Projected Reporting,
                                                 these, 3,059 operated with less than                                                                          cable systems, including small entities.
                                                                                                         Recordkeeping, and Other Compliance
                                                 1,000 employees. Based on this data, the                Requirements                                          E. Steps Taken To Minimize Significant
                                                 majority of these firms can be                                                                                Economic Impact on Small Entities and
                                                 considered small. In addition, we note                     39. As indicated above, the NPRM
                                                                                                         seeks comment on the utility of                       Significant Alternatives Considered
                                                 that the Commission has certified some
                                                 OVS operators, with some now                            collecting Form 325 data and on                          40. The RFA requires an agency to
                                                 providing service. Broadband service                    whether the Commission should                         describe any significant alternatives that
                                                 providers (‘‘BSPs’’) are currently the                  eliminate the Form 325 data collection                it has considered in reaching its
                                                 only significant holders of OVS                         entirely. The NPRM also seeks comment                 proposed approach, which may include
                                                 certifications or local OVS franchises.                 on ways to improve and modernize the                  the following four alternatives (among
                                                 The Commission does not have                            form, if the Commission decides to                    others): ‘‘(1) The establishment of
                                                 financial or employment information                     retain the Form 325 data collection.                  differing compliance or reporting
                                                 regarding the entities authorized to                    With respect to each section of Form                  requirements or timetables that take into
                                                 provide OVS, some of which may not                      325, the NPRM seeks comment on                        account the resources available to small
                                                 yet be operational. Thus, at least some                 whether there is a continued need to                  entities; (2) the clarification,
                                                 of the OVS operators may qualify as                     collect the information solicited therein             consolidation, or simplification of
                                                 small entities. The Commission further                  to the extent the form is retained, and,              compliance and reporting requirements
                                                 notes that it has certified approximately               if not, whether the Commission should                 under the rule for such small entities;
                                                 45 OVS operators to serve 116 areas,                    eliminate that particular section of the              (3) the use of performance, rather than
                                                                                                         form; on the uses of the data and                     design standards; and (4) an exemption
                                                 and some of these are currently
                                                                                                         whether such data can be obtained from                from coverage of the rule, or any part
                                                 providing service. Affiliates of
                                                                                                         other sources; and on how the                         thereof, for small entities.’’ 56
                                                 Residential Communications Network,
                                                                                                         Commission can update or modernize                       41. The Commission expects to more
                                                 Inc. (RCN) received approval to operate                                                                       fully consider the economic impact on
                                                                                                         the questions, if it decides to retain that
                                                 OVS systems in New York City, Boston,                                                                         small entities following its review of
                                                                                                         particular section of the form. In order
                                                 Washington, DC, and other areas. RCN                                                                          comments filed in response to the
                                                                                                         to evaluate any new or modified
                                                 has sufficient revenues to assure that                                                                        NPRM and this IRFA. Generally, the
                                                                                                         reporting, recordkeeping, or other
                                                 they do not qualify as a small business                                                                       NPRM seeks comment on the burden for
                                                                                                         compliance requirements that may
                                                 entity. Little financial information is                                                                       cable operators to file Form 325 each
                                                                                                         result from the actions proposed in this
                                                 available for the other entities that are               NPRM, the Commission has sought                       year and on the amount of time and
                                                 authorized to provide OVS and are not                   input from the parties on various                     resources it takes to complete the filing
                                                 yet operational. Given that some entities               matters. For example, the NPRM seeks                  for each cable system. The NPRM also
                                                 authorized to provide OVS service have                  comment on the burden imposed by the                  asks whether the benefits and uses of
                                                 not yet begun to generate revenues, the                 Form 325 filing requirement on smaller                the information collected via Form 325
                                                 Commission concludes that up to 44                      cable systems; which data, if any, is                 outweigh the burdens and costs on cable
                                                 OVS operators (those remaining) might                   particularly burdensome on smaller                    systems to file the form. The NPRM also
                                                 qualify as small businesses that may be                 systems to provide; and whether the                   seeks specific comment on the burden
                                                 affected by the rules and policies                      burden on smaller systems to file Form                imposed by the Form 325 filing
                                                 adopted herein.                                         325 will be significantly reduced if the              requirement on smaller cable systems.
                                                    38. Satellite Master Antenna                         form is streamlined and modernized as                 The NPRM inquires as to which data is
                                                 Television (SMATV) Systems, also                        proposed in the NPRM. The NPRM                        particularly burdensome on smaller
                                                 known as Private Cable Operators                        tentatively concludes that, at a                      systems to provide and on whether the
                                                 (PCOs). SMATV systems or PCOs are                       minimum, the Commission should                        burden on small systems to file Form
                                                 video distribution facilities that use                  exempt systems that serve fewer than                  325 would be significantly reduced if
                                                 closed transmission paths without using                 5,000 subscribers and are not affiliated              the Commission streamlines and
                                                 any public right-of-way. They acquire                   with a larger operator from filing Form               modernizes the form as discussed in the
                                                 video programming and distribute it via                 325, if the form is retained. The NPRM                NPRM, if it decides to retain the form.
                                                 terrestrial wiring in urban and suburban                also seeks comment on whether to                      The NPRM tentatively concludes that, at
                                                 multiple dwelling units such as                         exempt other smaller systems from                     a minimum, the Commission should
                                                 apartments and condominiums, and                        having to complete the form or whether                exempt systems that serve fewer than
                                                 commercial multiple tenant units such                   to maintain the current approach of                   5,000 subscribers and are not affiliated
                                                 as hotels and office buildings. SMATV                   requiring a sample of smaller cable                   with a larger operator from filing Form
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                                                 systems or PCOs are now included in                     systems to file the Form 325 each year.               325, if the form is retained. The NPRM
                                                 the SBA’s broad economic census                         Through this NPRM, the Commission                     asks whether the Commission should
                                                 category, ‘‘Wired Telecommunications                    seeks to minimize the administrative                  exempt other smaller cable systems
                                                 Carriers,’’ which was developed for                     burden on cable television systems,                   from having to complete the form or on
                                                 small wireline firms. Under this                        including smaller cable systems,                      any alternative approaches to alleviate
                                                 category, the SBA deems a wireline                      improve the quality and usefulness of                 the filing burden on smaller systems,
                                                 business to be small if it has 1,500 or                 Form 325 data to reflect technological
                                                 fewer employees. Census data for 2012                   and other pertinent industry changes,                   56 5   U.S.C. 603(c)(1)–(c)(4).



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                                                 58374                Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Proposed Rules

                                                 such as requiring smaller systems to file               Medtronic, Inc., Chuck Powers on                      ACTION: Notice of intent to prepare an
                                                 the report every few years instead of                   behalf of Motorola Solutions, Inc., and               environmental impact statement;
                                                 randomly sampling smaller systems                       Michael E. Williams, on behalf of Cobra               request for written comments.
                                                 annually. If the Commission decides to                  Electronics Corporation.
                                                 retain Form 325, it seeks comment on                                                                          SUMMARY:    NMFS, in consultation with
                                                                                                         DATES: Oppositions to the Petition must
                                                 ways in which it can streamline the                                                                           the North Pacific Fishery Management
                                                                                                         be filed on or before December 27, 2017.              Council (Council), announces its intent
                                                 current requirements and thereby                        Replies to an opposition must be filed
                                                 reduce the burdens on small cable                                                                             to prepare an Environmental Impact
                                                                                                         on or before January 8, 2018.                         Statement (EIS) on a new halibut
                                                 system filers. The Commission’s                         ADDRESSES: Federal Communications
                                                 evaluation of the comments filed on                                                                           bycatch management program for
                                                                                                         Commission, 445 12th Street SW,                       groundfish fisheries in the Bering Sea
                                                 these topics as well as on other                        Washington, DC 20554.                                 and Aleutian Islands (BSAI), in
                                                 questions in the NPRM that seek to
                                                                                                         FOR FURTHER INFORMATION CONTACT:                      accordance with the National
                                                 reduce the burdens placed on small
                                                                                                         Thomas Derenge, email:                                Environmental Policy Act of 1969
                                                 cable systems will shape the final
                                                                                                         Thomas.Derenge@fcc.gov; phone: (202)                  (NEPA). The proposed action would
                                                 conclusions it reaches, the final
                                                                                                         418–2451 or Scot Stone, email:                        create a new method of managing
                                                 significant alternatives it considers, and
                                                                                                         Scot.Stone@fcc.gov; phone: (202)                      halibut bycatch that links halibut
                                                 the actions it ultimately takes in this
                                                                                                         418–0638.                                             prohibited species catch (PSC) limits for
                                                 proceeding to minimize any significant
                                                                                                         SUPPLEMENTARY INFORMATION: This is a                  the groundfish fisheries to data on
                                                 economic impact that may occur on
                                                                                                         summary of the Commission’s                           halibut abundance. The proposed action
                                                 small entities.
                                                                                                         document, Report No. 3082, released                   is intended to provide a responsive
                                                 F. Federal Rules That May Duplicate,                    December 01, 2017. The full text of the               approach for managing halibut bycatch
                                                 Overlap, or Conflict With the Proposed                  Petitions is available for viewing and                at varying levels of halibut abundance.
                                                 Rule                                                    copying at the FCC Reference                          The new program would minimize
                                                   42. None.                                             Information Center, 445 12th Street SW,               halibut bycatch to the extent practicable
                                                   43. Accordingly, it is ordered that,                  Room CY–A257, Washington, DC 20554.                   while achieving, on a continuing basis,
                                                 pursuant to the authority found in                      It also may be accessed online via the                optimum yield from the groundfish
                                                 sections 4(i), 4(j), 303, and 628 of the                Commission’s Electronic Comment                       fisheries. The new management program
                                                 Communications Act of 1934, as                          Filing System at: http://apps.fcc.gov/                also could provide additional
                                                 amended, 47 U.S.C. 154(i), 154(j), 303,                 ecfs/. The Commission will not send a                 opportunity for the directed halibut
                                                 and 548, this Notice of Proposed                        Congressional Review Act (CRA)                        fishery at low levels of halibut
                                                 Rulemaking is adopted.                                  submission to Congress or the                         abundance compared to the status quo
                                                   44. It is further ordered that the                    Government Accountability Office                      and promote conservation of the halibut
                                                 Commission’s Consumer and                               pursuant to the CRA, 5 U.S.C. because                 spawning stock biomass, particularly at
                                                 Governmental Affairs Bureau, Reference                                                                        low levels of abundance. The EIS will
                                                                                                         no rules are being adopted by the
                                                 Information Center, shall send a copy of                                                                      analyze the impacts to the human
                                                                                                         Commission.
                                                 this Notice of Proposed Rulemaking,                                                                           environment resulting from the
                                                                                                            Subject: Personal Radio Services, FCC
                                                 including the Initial Regulatory                                                                              proposed bycatch management program.
                                                                                                         17–57, published at 82 FR 41096,
                                                 Flexibility Analysis, to the Chief                                                                            NMFS will accept written comments
                                                                                                         August 29, 2017, in WT Docket No. 10–
                                                 Counsel for Advocacy of the Small                                                                             from the public to identify the issues of
                                                                                                         119. This document is being published
                                                 Business Administration.                                                                                      concern and assist the Council in
                                                                                                         pursuant to 47 CFR 1.429(e). See also 47
                                                                                                                                                               determining the appropriate range of
                                                 List of Subjects in 47 CFR Part 79                      CFR 1.4(b)(1) and 1.429(f), (g).
                                                                                                                                                               management alternatives for the EIS.
                                                                                                            Number of Petitions Filed: 3.
                                                   Cable television operators.                                                                                 DATES: Written comments will be
                                                                                                         Federal Communications Commission.                    accepted through February 16, 2018.
                                                 Federal Communications Commission.
                                                                                                         Marlene H. Dortch,                                    ADDRESSES: You may submit comments
                                                 Marlene H. Dortch,
                                                                                                         Secretary.                                            on this document, identified by NOAA–
                                                 Secretary.
                                                                                                         [FR Doc. 2017–26728 Filed 12–11–17; 8:45 am]          NMFS–2017–0144, by any of the
                                                 [FR Doc. 2017–26678 Filed 12–11–17; 8:45 am]
                                                                                                         BILLING CODE 6712–01–P                                following methods:
                                                 BILLING CODE 6712–01–P                                                                                           • Electronic Submission: Submit all
                                                                                                                                                               electronic public comments via the
                                                                                                         DEPARTMENT OF COMMERCE                                Federal e-Rulemaking Portal. Go to
                                                 FEDERAL COMMUNICATIONS                                                                                        www.regulations.gov/#!docket
                                                 COMMISSION                                              National Oceanic and Atmospheric                      Detail;D=NOAA-NMFS-2017-0144, click
                                                 47 CFR Part 95                                          Administration                                        the ‘‘Comment Now!’’ icon, complete
                                                                                                                                                               the required fields, and enter or attach
                                                 [WT Docket No. 10–119, RM–10762, RM–                    50 CFR Part 679                                       your comments.
                                                 10844; Report No. 3082]                                                                                          • Mail: Submit written comments to
                                                                                                         RIN 0648–XF852
                                                                                                                                                               Glenn Merrill, Assistant Regional
                                                 Petitions for Reconsideration of Action                                                                       Administrator, Sustainable Fisheries
                                                 in Rulemaking Proceeding                                Fisheries of the Exclusive Economic
                                                                                                         Zone Off Alaska; Halibut Bycatch                      Division, Alaska Region NMFS, Attn:
ethrower on DSK3G9T082PROD with PROPOSALS




                                                 AGENCY:  Federal Communications                         Management in the Groundfish                          Ellen Sebastian. Mail comments to P.O.
                                                 Commission.                                             Fisheries of the Bering Sea and                       Box 21668, Juneau, AK 99802–1668.
                                                 ACTION: Petitions for Reconsideration.                  Aleutian Islands                                         Instructions: Comments sent by any
                                                                                                                                                               other method, to any other address or
                                                 SUMMARY:   Petitions for Reconsideration                AGENCY:  National Marine Fisheries                    individual, or received after the end of
                                                 (Petition) have been filed in the                       Service (NMFS), National Oceanic and                  the comment period, may not be
                                                 Commission’s rulemaking proceeding                      Atmospheric Administration (NOAA),                    considered by NMFS. All comments
                                                 by Charles S. Farlow, on behalf of                      Commerce.                                             received are a part of the public record


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Document Created: 2018-10-25 10:49:19
Document Modified: 2018-10-25 10:49:19
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments are due on or before February 12, 2018; reply comments are due on or before February 26, 2018.
ContactFor additional information on this proceeding, contact Maria Mullarkey of the Policy Division, Media Bureau at [email protected], or (202) 418-2120.
FR Citation82 FR 58365 

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