[Federal Register Volume 63, Number 44 (Friday, March 6, 1998)]
[Proposed Rules]
[Pages 11202-11204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5938]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 25 and 100
[FCC 98-26; IB Docket No. 98-21]
Policies and Rules for the Direct Broadcast Satellite Service
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Federal Communications Commission (FCC) proposes to amend
and relocate the regulations covering the Direct Broadcast Satellite
(DBS) service. The notice of proposed rulemaking also asks whether the
FCC should consider adopting new rules addressing horizontal
concentration in the multi-channel video programming distribution
(MVPD) market, such as limitations on cable/DBS cross-ownership. The
actions are necessary to consolidate and harmonize the Commission's
rules for satellite services and to obtain public comment on policies
for the DBS service. The effect of relocating the DBS service rules is
to simplify and harmonize the rules for satellite services in one part
of the Commission's rules.
DATES: Submit comments on or before April 6, 1998. Submit reply
comments on or before April 21, 1998. Written comments by the public on
the proposed information collections are due April 6, 1998. Written
comments must be submitted by the Office of Management and Budget (OMB)
on the proposed information collections on or before May 5, 1998.
ADDRESSES: Send written comments and reply comments to Office of the
Secretary, Federal Communications Commission, 1919 M Street, N.W., Room
222, Washington, D.C. 20554. For purposes of this proceeding, we hereby
waive those provisions of our rules that require formal comments to be
filed on paper, and encourage parties to file comments electronically.
File electronic comments using the electronic filing interface
available on the FCC's World Wide Web site at
http://dettifoss.fcc.gov:8080/cgi-bin/ws.exe/beta/ecfs/upload.hts>.
Further information on the process of submitting comments
electronically is available at that location and at http://
www.fcc.gov/e-file/>. In addition to filing comments with the
Secretary, a copy of any comments on the information collections
contained herein should be submitted to Judy Boley, Federal
Communications Commission, Room 234, 1919 M Street, N.W., Washington,
DC 20554, or via the Internet to jboley@fcc.gov, and to Timothy Fain,
OMB Desk Officer, 10236 NEOB, 725 17th Street, N.W., Washington, DC
20503 or via the Internet to fain__t@al.eop.gov.
FOR FURTHER INFORMATION CONTACT:
Technical Information: Kim Baum, 202-418-0756
Economic Information: Doug Webbink, 202-418-1494
Legal Information: Chris Murphy, 202-418-2373
For additional information concerning the information collections
contained in this Notice contact Judy Boley at 202-418-0214, or via the
Internet at jboley@fcc.gov.
SUPPLEMENTARY INFORMATION:
1. The Commission is authorized to conduct this rulemaking pursuant
to its statutory authority contained in the Communications Act of 1934,
as amended. 47 U.S.C. 154(i), 303(v). The Commission has historically
regulated direct broadcast satellite (DBS) service, which is
transmitted using frequency bands that are internationally allocated to
the broadcast satellite service (BSS), and direct-to-home fixed-
satellite service (DTH-FSS), which is transmitted using fixed-satellite
service (FSS) frequency bands, separately. The Commission rules for the
DBS service are codified in 47 CFR part 100, while FSS rules, including
those applicable to DTH-FSS providers, can be found in part 25. Since
both DBS and DTH-FSS provide video services directly to the home via
satellite, the notice of proposed rulemaking (Notice) proposes to
consolidate, where possible, the DBS service and technical rules with
the rules for DTH-FSS and other satellite services under part 25 and to
eliminate in its entirety part 100. The Notice also proposes to move
certain DBS-specific part 100 rules into part 25 and to eliminate
several part 100 rules which the Commission believes are no longer
needed. For instance, the Notice proposes to eliminate the part 100
rules (Secs. 100.72-.80) which govern DBS auctions and to conduct DBS
auctions under the general auction rules contained in part 1, subpart
Q. The Notice also seeks comment on proposals to revise the DBS
technical rules to conform to the Commission's experience regulating
the service. The Notice further proposes to amend the Commission's part
25 rules, where necessary, in order to render them applicable, where
appropriate, to DBS and DTH-FSS, as well as other satellite services.
2. In proposing to incorporate certain part 100 rules into part 25,
the Notice highlights several rules of particular
[[Page 11203]]
importance. The Notice seeks comment on a proposal to move the existing
DBS foreign ownership rules from part 100 to part 25, and asks whether
the Commission should modify these rules. The Notice also seeks comment
on how the Commission can strengthen its rules regarding the provision
of DBS service to Alaska and Hawaii and whether it should adopt
geographic service rules for Puerto Rico and other U.S. territories and
possessions. Because it is the Commission's goal to promote competition
in the multi-channel video programming distribution (MVPD) market
generally, the Notice also seeks comment as to whether new rules
addressing horizontal concentration in the MVPD market, such as
limitations on cable/DBS cross-ownership, are necessary in order to
prevent anti-competitive conduct in the MVPD market.
Paperwork Reduction Act of 1995
3. This Notice contains either a proposed or modified information
collection. The Commission, as part of its continuing effort to reduce
paperwork burdens, invites the general public and the Office of
Management and Budget (OMB) to comment on the information collections
contained in this Notice, as required by the Paperwork Reduction Act of
1995, Public Law 104-13. Public and agency comments are due at the same
time as other comments on this Notice; OMB notification of action is
due 60 days from date of publication of this Notice in the Federal
Register. Comments should address: (a) Whether the proposed collection
of information is necessary for the proper performance of the functions
of the Commission, including whether the information shall have
practical utility; (b) the accuracy of the Commission's burden
estimates; (c) ways to enhance the quality, utility, and clarity of the
information collected; and (d) ways to minimize the burden of the
collection of information on the respondents, including the use of
automated collection techniques or other forms of information
technology.
OMB Approval Number: 3060-0678.
Title: Commission's Rules and Regulations for Satellite Application
and Licensing Procedures.
Form No.: 312.
Type of Review: revision of existing collection.
Respondents: Businesses or other for profit, including small
businesses, governments.
Number of Respondents: 1,320.
Estimated Time Per Response: The Commission estimates that all
respondents will hire an attorney or legal assistant to complete the
form. The time to retain these services is 2 hours per respondent.
Total Annual Burden: 2,640 hours.
Estimated Costs Per Respondent: This includes the charges for
hiring an attorney, legal assistant, or engineer at $150 an hour to
complete the submissions. The estimated average time to complete the
Form 312 is 11 hours per response. The estimated average time to
complete space station submissions is 20 hours per response. The
estimated average time for prepare submissions using non-U.S. licensed
satellites is 22 hours per response. The estimated average time to
complete the ASIA submission is 24 hours per response. Earth station
submissions: $2085. ($1650 for Form 312; $375 remainder of application;
$60 for outside hire). Space station submissions and Non-U.S. licensed
satellite filings: $4710 ($1650 for Form 312; $3000 for remainder of
submission; $60 for outside hire). ASIA submissions: $3,660 ($3,600 for
submission; $60 for outside hire). Fee amounts vary by type of service
and application. Total fee estimates for industry: $5,997,910.00 Needs
and Uses: In accordance with the Communications Act, the information
collected will be used by the Commission in evaluating applications
requesting authority to operate pursuant to part 25 of the Commission's
rules. The information will be used to determine the legal, technical,
and financial ability of the applicants and will assist the Commission
in determining whether grant of such authorizations are in the public
interest.
Initial Regulatory Flexbility Analysis
Pursuant to the Regulatory Flexibility Act of 1990, 5 U.S.C. 601-
612, (RFA) as amended by the Contract with America Advancement Act of
1996, Public Law 104-121, 110 Stat. 847, the Commission's Initial
Regulatory Flexibility Analysis with respect to this Notice of Proposed
Rulemaking is as follows:
Reason for Action
This Notice of Proposed Rulemaking (Notice) proposes to streamline
and harmonize the Commission's direct broadcast satellite (DBS) service
rules. The Notice proposes to incorporate the DBS rules into part 25,
the satellite communications part of the Commission's rules. The Notice
does not envision that the relocation of the DBS service rules will
substantially alter the licensing provisions for the DBS service under
current part 100. The DBS service was initially developed in 1982 with
the promulgation of interim rules. Inquiry into the Development of
Regulatory Policy in Regard to Direct Broadcast Satellites for the
Period Following the 1983 Regional Administrative Radio Conference
(Report and Order), 90 FCC2d 676 (1982). Since 1994, DBS licensees have
begun to provide service into the United States. The Notice explains
that the interim rules are outmoded with respect to the application and
licensing procedures and the technical parameters for existing systems.
Consistent with the FCC's goals of regulating services subject to its
jurisdiction in a common-sense manner and promoting competition, this
rulemaking seeks to streamline and simplify the FCC's rules governing
the DBS service by applying a unified Form 312 for DBS space and earth
stations. For instance, The NPRM proposes to eliminate the part 100
rules (sections 100.72-.80) which govern DBS auctions and to regulate
DBS auctions under the general auction rules contained in part 1,
subpart Q. In proposing to incorporate certain part 100 rules into part
25, the Notice highlights two rules of particular importance. The
Notice seeks comment on a proposal to move the existing DBS foreign
ownership rules from part 100 to part 25 and whether the FCC should
modify those rules in the event it affirms the FCC International
Bureau's decision in the order authorizing MCI to construct, launch,
and operate a DBS system at the 110 degrees W.L. orbital position and
whether similar restrictions should apply to DTH-FSS. MCI
Telecommunications Corporation, Application for Authority to Construct,
Launch and Operate a Direct Broadcast Satellite System at 110 degrees
W.L., DA 96-1793 (1996). The Notice also seeks comment on how the FCC
can strengthen the rules regarding the provision of DBS service to
Alaska and Hawaii, Puerto Rico, and other U.S. territories and
possessions. Because it is the FCC's goal to promote competition in the
MVPD market generally, the Notice also seeks comment as to whether new
rules addressing horizontal concentration in the MVPD market, such as
limitations on cable/DBS cross-ownership, are necessary in order to
prevent anti-competitive conduct in the DBS or MVPD markets.
Objectives
The objective of this proceeding is to streamline the DBS service
rules and harmonize the regulation of the DBS service with other
satellite services, where appropriate. While incorporating the DBS
rules into part 25, the location of the other satellite communications
service rules, the Notice seeks comment
[[Page 11204]]
on relocation of the foreign ownership rules of section 100.11; further
measures the FCC could take to promote service to Alaska and Hawaii and
other U.S. territories and possessions; comments on proposals to update
the DBS technical rules; and comment on whether to adopt rules to
address issues related to concentration in the multi-channel video
programming distribution market. The Notice proposes that adoption of
the proposed rules will reduce regulatory burdens and, with minimal
disruption to existing permittees and licensees, result in the
continued development of DBS and other satellite services to the
public.
Legal Basis
This Notice of Proposed Rulemaking is adopted pursuant to Sections
1, 4(i), 303(r), 303(v), 307, 309(a), 309(j), 310 of the Communications
Act of 1934, as amended, 47 U.S.C. 151, 154(i), 303(r), 303(v), 307,
309(a), 309(j), 310, and 5 U.S.C. 553 of the Administrative Procedures
Act.
Description and Estimate of Small Entities Subject to the Rules
The Commission has not developed a definition of small entities
applicable to geostationary or non-geostationary orbit fixed-satellite
or direct broadcast satellite service applicants or licensees.
Therefore, the applicable definition of small entity is the definition
under the Small Business Administration (SBA) rules applicable to
Communications Services, Not Elsewhere Classified. This definition
provides that a small entity is one with $11.0 million or less in
annual receipts. (13 CFR 121.201, Standard Industrial Classification
(SIC) Code 4899). According to Census Bureau data, there are 848 firms
that fall under the category of Communications Services, Not Elsewhere
Classified which could potentially fall into the DBS category. Of
those, approximately 775 reported annual receipts of $11 million or
less and qualify as small entities. (U.S. Bureau of Census, U.S.
Department of Commerce, 1992 Census of Transportation, Communications,
Utilities, UC92-S-1, Subject Series, Establishment and Firm Size, Table
2D, Employment Size of Firms: 1992, SIC Code 4899 (issued May 1995)).
The rules proposed in this Notice apply only to entities providing DBS
service. Small businesses do not have the financial ability to become
DBS licensees because of the high implementation costs associated with
satellite services. Since this is an established service, however, with
limited spectrum and orbital resources for assignment, we estimate that
no more than 15 entities will be Commission licensees providing these
services. Therefore, because of the high implementation costs and the
limited spectrum resources, we do not believe that small entities will
be impacted by this rulemaking.
Reporting, Recordkeeping, and Other Compliance Requirements
The proposed action in this Notice would affect those entities
applying for DBS construction permits and licenses and those applying
to participate in auctions of DBS spectrum in the future. In the case
where there is not any mutual exclusivity, applicants will be required
to follow the recently streamlined application procedures of part 25
for space and earth station licenses by submitting the information
required by Form 312, where applicable. In the case where there is
mutual exclusivity between applicants for DBS authorizations, the
competitive bidding rules of part 1 will be used to determine the
licensee. Applicants will have to comply with the requirement to file a
short-form (FCC Form 175). Completion of short-form FCC Form 175 to
participate in an auction is not estimated to be a significant economic
burden for these entities. The action proposed will also affect auction
winners in that it will require them to submit a long Form 312
application for authorization. This process will be required by all DBS
applicants whether selected through the competitive bidding process or
not.
Federal Rules That Overlap, Duplicate or Conflict With These Proposed
Requirements
None. One of the main objectives of the Notice is to eliminate any
existing overlap or duplication of rules between the DBS and other
satellite services.
Any Significant alternatives minimizing impact on small entities
and consistent with stated objectives: In developing the proposals
contained in this Notice, we have attempted to minimize the burdens on
all entities in order to allow maximum participation in the DBS market
while achieving our other objectives. The Notice seeks comment on the
impact of the proposals on small entities and on any possible
alternatives that could minimize the impact of the rules on small
entities. In particular, the Notice seeks comment on alternatives to
the reporting, recordkeeping, and other compliance requirements.
Comments Are Solicited
Written comments are requested on this Initial Regulatory
Flexibility Analysis. These comments must be filed in accordance with
the same filing deadlines set for comments on the other issues in this
Notice, but they must have a separate and distinct heading designating
them as responses to the Regulatory Flexibility Analysis. The Office of
Public Affairs, Reference Operations Division shall send a copy of this
Notice to the Chief Counsel for Advocacy of the Small Business
Administration in accordance with section 603(a) of the Regulatory
Flexibility Act.
List of Subjects
47 CFR Part 25
Satellites.
47 CFR Part 100
Satellites.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98-5938 Filed 3-5-98; 8:45 am]
BILLING CODE 6712-01-P
