[Federal Register Volume 63, Number 96 (Tuesday, May 19, 1998)]
[Proposed Rules]
[Pages 27545-27548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13168]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 76
[CS Docket No. 98-61; FCC 98-79]
1998 Biennial Regulatory Review; Form 325-Annual Report of Cable
Television Systems
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
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SUMMARY: In this Notice of Proposed Rulemaking (``NPRM''), the
Commission seeks comment on a proposal to eliminate or modify the
process of collecting Form 325, ``Annual Report of Cable Television
Systems.'' This proceeding is initiated in conjunction with the
Commission's 1998 biennial regulatory review. The intended effect of
this proceeding is to reduce the regulatory burden on the Commission,
as well as cable operators.
DATES: Comments are due on or before June 30, 1998. Reply comments are
due on or before July 15, 1998. Written comments by the public on the
proposed information collections are due June 9, 1998.
ADDRESSES: Federal Communications Commission, Washington, D.C. 20554.
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, to Timothy Fain, OMB Desk
Officer, 10236 NEOB, 725--17th Street, N.W., Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT:
Sunil Daluvoy, Consumer Protection and Competition Division, Cable
Services Bureau, at (202) 418-1032. For additional information
concerning the information collection contained in this NPRM, contact
Judy Boley at 202-418-0214, or via the Internet at jboley@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a synopsis of the NPRM in CS Docket
No. 98-61, FCC 98-79 which was adopted on April 27, 1998 and released
on April 30, 1998. A copy of the complete item is available for
inspection and copying during normal business hours in the FCC
Reference Center, Room 239, 1919 M Street, N.W., Washington, D.C.
20554. The complete text may be purchased from the Commission's copy
contractor, International Transcription Service, Inc., 1231 20th
Street, N.W., Washington, D.C. 20036, (202) 857-3800. The complete
Notice of Proposed Rulemaking also is available on the Commission's
Internet home page (http://www.fcc.gov). The requirements proposed in
this Notice have been analyzed with respect to the Paperwork Reduction
Act of 1995 (the ``1995 Act'') and could potentially impose modified
information collection requirements on the public. 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 take
this opportunity to comment on the proposed modifications to the
information collection requirements contained in this NPRM, as required
by the Paperwork Reduction Act of 1995. Public comments are due June 9,
1998. Written comments must be submitted by OMB on or before July 20,
1998. 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: 3060-0061.
Title: Annual Report of Cable Television Systems--Form 325.
Total Estimated Annual Burden to Respondents: 28,000 hours. The
average burden to respondents is estimated to be 2 hours per Form 325
filing. 14,000 filings x 2 hours = 28,000 hours.
Total Estimated Annual Cost of Respondents: $14,000. Postage,
stationery and photocopying costs pertaining to this filing requirement
are estimated to be $1 per form. 14,000 x $1 = $14,000.
Needs and Uses: The Form 325 is a preprinted form that has been
used by the Commission to annually collect ownership, community unit,
statistical, technical and services information from cable television
systems on a physical system basis. Operators of every operational
cable television system complete the form to verify, correct and/or
furnish the Commission with the most current information on their
respective cable systems. Here, we have reported burden estimates to
respondents as they are currently accounted for in the Commission's
Information Collection Budget for Collection Number OMB 3060-0061.
Depending on public comment generated in this proceeding, the
Commission will either amend the content of Form 325, eliminate the
Form 325 filing requirement or will reduce the scope or frequency of
the filing requirement.
SUMMARY OF ACTION:
I. Background
1. On April 27, 1998, the Federal Communications Commission
(``Commission'') adopted a Notice of Proposed Rulemaking which sought
comment on our proposal to eliminate or modify Form 325, ``Annual
Report of Cable Television Systems'', which is provided for in 47 CFR
Sec. 76.403. The Notice of Proposed Rulemaking is summarized below.
A. Introduction
2. Section 11 of the 1996 Telecommunications Act, instructs the
Commission ``to conduct a biennial review of regulations that apply to
operations and activities of any provider of telecommunications service
and to repeal or modify any regulation it determines to be no longer in
the public interest.'' Although Section 11 does not refer to the cable
television rules generally, the Commission has determined that the
first biennial review presents an opportunity for a thorough
examination of all of the Commission's regulations. We believe that
consideration of the continuing need for the Form 325 information
collection process is consistent with the Section 11 mandate.
B. Discussion
3. Form 325 constitutes the Commission's basic annual reporting
requirement for the cable television industry. The form was developed
for use on a one time basis in 1966 and was subsequently adopted as an
annual filing requirement in 1971. The form was intended to provide the
Commission with information that would be of value in the development
of rules and policies applicable to the cable television industry. In
addition, information as to both individual franchise areas and
physical system operations was to be collected for use in connection
with individual waiver or enforcement proceedings. The current Form 325
has also been used for two additional purposes: (1) to obtain
subscribership data from which to calculate or review cable operator's
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annual federal regulatory fee payments; and (2) to assist, through the
acquisition of data as to the frequencies used within systems, in the
Commission's signal leakage and interference elimination program.
4. The current version of Form 325 is divided into four substantive
parts. Part 1 collects the operator's name, address, and tax
identification number of each franchised community served by the cable
system. Part 2 requests specific information related to each franchised
community, including the type of area served, population, subscribers,
potential subscribers, cable plant length, and initial date of service.
Part 3 outlines frequency and signal distribution information, such as
the type and source of programming, and general channel information.
Part 4 summarizes the cable system's ancillary services and users.
5. The Commission's rules anticipate that a Form 325 will be mailed
annually to each cable system in the country--at present, over 11,000
cable systems. In order to reduce the filing burden and increase the
accuracy of the computer database to be assembled from the completed
forms, a process was developed whereby each year preprinted and
completed forms were to be sent to each operator reflecting the
information in the Commission's database. The system operator would
then only be required to correct information that had changed since the
last filing. Although this process was intended to ease the burden on
system operators and to be administratively efficient, it proved to be
resource intensive on the part of the Commission, because the returned
forms, many of which were deficient in some manner, had to be manually
reviewed for technical and administrative accuracy before being entered
into the computer system. As available Commission staff resources were
reduced and priorities shifted, it became increasingly difficult to
complete the data input process. Thus, the form has not been mailed out
or data collected since 1994.
6. As a consequence of the above developments we now prepare to
either: (1) Abolish this data collection process entirely, or (2)
reform the process so that the data that is deemed important may be
collected in a more efficient, less resource intensive, manner. In
general, it is vital that the Commission have accurate and timely
information regarding the cable television industry, both to assist in
the enforcement of existing requirements and for broader rulemaking and
policy purposes. We seek comment, however, 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. For instance, while not
subject to accuracy and specificity requirements applicable to a
governmental reporting system, information on the basic facts of cable
television system operation is available from commercial sources such
as S.C. Nielson and Warren Publishing. We seek comment on whether these
commercial sources may rely for their information on the availability
of the Commission's data base. Similarly, with regard to the signal
interference program, the Commission already uses Form 320 (Basic
Signal Leakage Performance Report) to gather a cable system's
operational parameters in the event interference occurs to over-the-air
services. On the other hand, we noted in our leased access proceeding,
that the only official source of leased access information was in the
Form 325. Given the possible availability of alternative sources of
data, we seek comment on whether we should eliminate the current Form
325 entirely or revise it to obtain more focused information.
7. If Form 325 is retained, we seek comment on any changes that
should be made to clarify and improve the usefulness of the data
collected. For example, the questions and instructions with respect to
channel capacity and use data, which is pertinent to a number of
Commission's rules, including must-carry, leased access, and channel
occupancy, have not always resulted in consistent responses. In
addition, Form 325 does not require the operator to submit specific
ownership information, which could be relevant to the Commission's
horizontal ownership rules, among others. We seek comment on how to
obtain more useful consistent or reliable data if the form is retained.
8. In addition, if the Form 325 is retained, we seek comment on
ways to make the collection process less burdensome. For example, the
data could be collected at less frequent intervals, a sampling process
could be developed or an electronic filing system could be developed to
reduce the resources devoted to the data collection process. Should,
for example, we adopt a data collection process that applies only to
cable systems that meet certain geographic, subscriber, channel
capacity, or revenue criteria, or should such forms apply to a random
subset of cable operators? We note that if data were collected only
from systems with over 10,000 subscribers, approximately 80 percent of
all subscribers would be covered yet only approximately one-tenth of
the present filings would be required.
II. Procedural Matters
A. Initial Regulatory Flexibility Act Analysis For the Notice of
Proposed Rulemaking
9. As required by Section 603 of the Regulatory Flexibility Act, 5
U.S.C. 603, the Commission is incorporating an Initial Regulatory
Flexibility Analysis (IRFA) of the expected impact on small entities of
the policies and proposals in this NPRM. Written public comments
concerning the effect of the proposals in the NPRM, including the IRFA,
on small businesses are requested. Comments must be identified as
responses to the IRFA and must be filed by the deadlines for the
submission of comments in this proceeding. The Secretary shall send a
copy of this NPRM, including the IRFA, to the Chief Counsel for
Advocacy of the Small Business Administration in accordance with
paragraph 603(a) of the Regulatory Flexibility Act.
10. Reasons Why Agency Action is Being Considered. Section 11 of
the 1996 Telecommunications Act requires the Commission to conduct a
biennial review of regulations that apply to operations and activities
of any provider of telecommunications service and to repeal or modify
any regulation it determines to be no longer in the public interest.
Although Section 11 does not specifically refer to cable operators, the
Commission has determined that the first biennial review presents an
excellent opportunity for a thorough examination of all of the
Commission's regulations.
11. Need for Action and Objectives of the Proposed Rule Change. The
Commission invites comment on whether to eliminate or modify the
requirement for cable systems operators to file the current ``Annual
Report of Cable Television,'' Form 325, pursuant to Section 76.403 of
the Commission's rules (``Section 76.403''), because the Commission
believes the current Form 325 provides limited value, imposes
unnecessary burdens on the Commission and cable operators, and
duplicates existing practices.
12. Legal Basis. The authority for the action proposed for this
rulemaking is contained in Section 4(i)-(j) of the Communications Act
of 1934, as amended.
13. Description and Estimate of the Number of Small Entities
Impacted. The IRFA directs the Commission to provide a description of
and, where feasible, an estimate of the number of small entities that
will be affected by the proposed rules. The IRFA defines the term
``small
[[Page 27547]]
entity'' as having the same meaning as the terms ``small business,''
``small organization,'' and ``small business concern'' under Section 3
of the Small Business Act. Under the Small Business Act, 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.
14. The proposal to either eliminate or modify the requirement to
file Form 325 applies to all cable system operators. The Commission has
developed, with SBA's approval, its own definition of a small cable
system operator for rate regulation purposes. Under the Commission's
rules, a ``small cable company'' is one serving fewer than 400,000
subscribers nationwide. Based on our most recent information, we
estimate that there were 1439 cable operators that qualified as small
cable companies at the end of 1995. Since then, some of those companies
may have grown to serve over 400,000 subscribers, and others may have
been involved in transactions that caused them to be combined with
other cable operators. Consequently, we estimate that there are fewer
than 1439 small entity cable system operators that may be affected by
the changes we are considering.
15. The Communications Act also contains a definition of a small
cable system operator, which is ``a cable operator that, directly or
through an affiliate, serves in the aggregate fewer than 1% 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 there are 61,700,000
subscribers in the United States. Therefore, we found that an operator
serving fewer than 617,000 subscribers shall be deemed a small
operator, if its annual revenues, when combined with the total annual
revenues of all of its affiliates, do not exceed $250 million in the
aggregate. Based on available data, we find that the number of cable
operators serving 617,000 subscribers or less totals 1450. Although it
seems certain that some of these cable system operators are affiliated
with entities whose gross annual revenues exceed $250,000,000, we are
unable at this time to estimate with greater precision the number of
cable system operators that would qualify as small cable operators
under the definition in the Communications Act.
16. Reporting, Recordkeeping, and other Compliance Requirements:
The Commission is proposing to eliminate certain recordkeeping or
information collection requirements, and in the alternative, we are
proposing to substantially reduce such burdens.
17. Significant Alternatives Which Minimize the Impact on Small
Entities and which are Consistent with Stated Objectives: The NPRM
solicits comments on alternatives to elimination of the FCC Form 325.
Any significant alternatives presented in the comments will be
considered.
18. Federal Rules which Overlap, Duplicate, or Conflict with the
Commission's Proposal: None.
19. Report to Congress. The Commission shall send a copy of this
IRFA along with this Notice in a report to Congress pursuant to the
Small Business Regulatory Enforcement Fairness Act of 1996, codified at
5 U.S.C. Sec. 801(a)(1)(A). A copy of this IRFA will also be published
in the Federal Register.
B. Paperwork Reduction Act of 1995 Analysis
20. The requirements proposed in this Notice have been analyzed
with respect to the Paperwork Reduction Act of 1995 (the ``1995 Act'')
and could potentially impose modified information collection
requirements on the public. The Commission, as part of its continuing
effort to reduce paperwork burdens, invites the general public to take
this opportunity to comment on the proposed modifications to the
information collection requirements contained in this Notice, as
required by the 1995 Act. Public comments are due 21 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 would 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.
21. Written comments by the public on the proposed and/or modified
information collections are due June 9, 1998. Written comments must be
submitted by the Office of Management and Budget (``OMB'') on the
proposed and/or modified information collections on or before [insert
date 60 days after date of publication in the Federal Register.] 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.
C. Ex Parte Rules
22. This proceeding will be treated as a ``permit-but-disclose''
proceeding subject to the ``permit-but-disclose'' requirements under
Section 1.1206(b) of the rules. 47 CFR Sec. 1.1206(b), as revised. Ex
parte presentations are permissible if disclosed in accordance with
Commission rules, except during the Sunshine Agenda period when
presentations, ex parte or otherwise, are generally prohibited. Persons
making oral ex parte presentations are reminded that a memorandum
summarizing a presentation must contain a summary of the substance of
the presentation and not merely a listing of the subjects discussed.
More than a one or two sentence description of the views and arguments
presented is generally required. See 47 CFR Sec. 1.1206(b)(2), as
revised. Additional rules pertaining to oral and written presentations
are set forth in Section 1.1206(b).
D. Filing of Comments and Reply Comments
23. Pursuant to applicable procedures set forth in Sections 1.415
and 1.419 of the Commission's Rules, 47 CFR Secs. 1.415 and 1.419,
interested parties may file comments on or before June 30, 1998 and
reply comments on or before July 15, 1998. To file formally in this
proceeding, you must file an original plus four copies of all comments,
reply comments, and supporting comments. If you want each Commissioner
to receive a personal copy of your comments and reply comments, you
must file an original plus nine copies. You should send comments and
reply comments to Office of the Secretary, Federal Communications
Commission, 1919 M Street, N.W., Washington, D.C. 20554. Comments and
reply comments will be available for public inspection during regular
business hours in the FCC Reference Center, Room 239, Federal
Communications Commission, 1919 M Street N.W., Washington, D.C. 20554.
The Cable Services Bureau contact for this proceeding is Sunil Daluvoy
at (202) 418-1032 or sdaluvoy@fcc.gov.
24. Parties are also asked to submit comments and reply comments on
diskette, where possible. Such diskette
[[Page 27548]]
submissions would be in addition to and not a substitute for the formal
filing requirements addressed above. Parties submitting diskettes
should submit them to Sunil Daluvoy of the Cable Services Bureau, 2033
M Street N.W., Room 700I, Washington, D.C. 20554. Such a submission
should be on a 3.5 inch diskette formatted in an IBM compatible form
using MS DOS 5.0 and WordPerfect 5.1 software. The diskette should be
submitted in ``read only'' mode. The diskette should be clearly
labelled with the party's name, proceeding, type of pleading (comments
or reply comments), and date of submission. The diskette should be
accompanied by a cover letter.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98-13168 Filed 5-18-98; 8:45 am]
BILLING CODE 6712-01-M
