[Federal Register Volume 64, Number 105 (Wednesday, June 2, 1999)]
[Rules and Regulations]
[Pages 29599-29601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13915]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 76
[CS Docket No. 97-80; FCC 99-95]
Commercial Availability of Navigation Devices
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: This document implements rules to achieve commercial
availability of set top boxes and other consumer equipment used to
receive video signals and other services. Section 629 of the
Communications Act directed the FCC to create rules that allow
consumers to obtain set top boxes from commercial sources other than
their multichannel video programming distributor.
DATES: Effective July 2, 1999.
ADDRESSES: Federal Communications Commission, 445 12th Street, SW,
Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT: Thomas Horan, Cable Services Bureau,
(202) 418-7200.
SUPPLEMENTARY INFORMATION:
1. The Order on Reconsideration addresses the petitions seeking
reconsideration of decisions in the Report and Order in CS Docket No.
97-80, 63 FR 38089 (July 15, 1999). The Report and Order adopted rules
to implement Section 629 of the Communications Act of 1934, as amended,
47 U.S.C. 549.
2. Section 629 instructs the FCC to promote the commercial
availability to consumers of navigation devices, that is, equipment
used to access multichannel video programming and other services
offered over multichannel video programming systems. In the Report and
Order, the FCC adopted rules to implement Section 629. Five petitions
requesting reconsideration or clarification of the rules were filed.
3. Application of Rules to Analog Equipment. On reconsideration,
the Commission will defer application of the requirement that
multichannel video programming distributors (MVPDs) provide a
separation of security from equipment that performs other functions for
devices that (1) employ only an analog conditional access mechanism;
(2) are capable only of providing access to analog video programming
offered over an MVPD system and (3) do not provide access to any
digital transmission of MVPD programming or any other digital service
through any receiving, decoding, conditional access, or other function,
including any conversion of digital programming or services to an
analog format.
4. Integrated Boxes. The Commission will maintain the prohibition
on MVPDs providing new integrated equipment combining both security and
non-security functions after January 1, 2005. In the year 2000, once
non-integrated equipment is available, the Commission will assess the
state of the market to determine whether the designated time frame is
appropriate.
5. Application of Rules to Various MVPDs. The Commission reiterates
its view that there is justification for not applying the rule
requiring separation of security functions to MVPDs that support
navigation devices that are portable throughout the continental United
States, and are available from retail outlets and other vendors.
Similarly, operators of open video systems are exempt from the
requirements of Section 629.
6. CableLabs Standards Process. The Commission expects that the
standards developed by CableLabs through the OpenCable process will be
sufficient for manufacturers and designers unaffiliated with MVPDs to
build devices that can be sold through national retail distribution.
The Commission will continue to monitor the OpenCable project to ensure
that the standards are specific enough and that a wide range of
interests continue to have an opportunity to participate in OpenCable.
7. Wireless Cable Antennas and Downconverters. The Commission finds
that equipment used to access wireless cable service cannot be excluded
from the definition of navigation devices in all circumstances, nor is
a separate demarcation point for attachment of navigation devices
required.
8. Permitted Functions of Separated Conditional Access Equipment.
The Order on Reconsideration clarifies that the components of the
security module should closely be related to the security functions of
the navigation device, and enhance, rather than assume, a function of
the host device.
9. Interface Information. The Order on Reconsideration clarifies
that 47 CFR 76.1205 requires the release of information sufficient to
allow for interaction between the multichannel video programming system
and the navigation device through the separated security device. This
information must allow manufacturers and retailers the ability to
provide compatible equipment. Problems regarding development of
interface specifications brought to the Commission attention will be
addressed in the review in 2000.
[[Page 29600]]
Final Regulatory Flexibility Analysis
10. As required by the Regulatory Flexibility Act (RFA), the
Commission included a Final Regulatory Flexibility Analysis (FRFA) in
the Report and Order. While no petitioners seeking reconsideration of
the Report and Order raised issues directly related to the FRFA, the
Commission is amending the rules in a manner that may affect small
entities. Accordingly, this Supplemental Regulatory Flexibility
Analysis (``Supplemental FRFA'') addresses those amendments and
conforms to the RFA.
11. Need for Action and Objectives of the Rules. The 1996 Act added
a new Section 629 to the Communications Act of 1934, as amended, that
requires the Commission to develop rules to assure competitive
availability of navigation devices used in conjunction with MVPD. The
statutory objective of Section 629 is assure that navigation devices
used by consumers to access a particular MVPD's programming are
available to consumers from manufactures, retailers and other vendors
not affiliated with that MVPD.
12. Summary of Significant Issues Regarding FRFA Raised in
Petitions for Reconsideration. No parties address the FRFA in their
petitions for reconsideration, or any subsequent filings.
13. Description and Estimate of the Number of Small Entities to
Which the Rules Will Apply. The RFA directs the Commission to provide a
description of and, where feasible, an estimate of the number of small
entities that might be affected by the rules here adopted. The RFA
defines the term ``small entity'' as having the same meaning as the
terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' In addition, the term ``small business''
has the same meaning as the term ``small business concern'' under the
Small Business Act. Under the Small Business Act, a small business
concern is one which: (a) is independently owned and operated; (b) is
not dominant in its field of operation; and (c) satisfies any
additional criteria established by the SA.
14. As noted, a FRFA was incorporated into the Report and Order. In
that analysis, the Commission described in detail the various small
business entities that may be affected by these rules. Those entities
consist of cable systems, multipoint multichannel distribution systems,
direct broadcast satellites, home satellite dish, satellite master
antenna television, local multipoint distribution systems, small
manufacturers, electronic equipment manufacturers, computer
manufacturers, and small retailers. In this present Order on
Reconsideration, the Commission addresses petitions for reconsideration
filed in response to the Report and Order. In this Supplemental FRFA,
the Commission incorporates by reference the description and estimate
of the number of small entities from the FRFA in this proceeding.
15. Description of Reporting, Recordkeeping and Other Compliance
Requirements. The rules adopted in the Report and Order require MVPDs
to make available upon request technical information concerning
interface parameters. The Commission believes, however, that this
requirement would not necessitate any additional professional,
engineering, or customer service skills beyond those already utilized
in the ordinary course of business by MVPDs. The rules adopted on
reconsideration do not affect this requirement.
16. Steps Taken to Minimize Significant Economic Impact On Small
Entities and Significant Alternatives Considered. In the Report and
Order, the Commission stated the belief that its rules, implemented to
assure commercial availability of navigation devices, would have the
result of opening up to small retailers the market to sell or lease
navigation devices to MVPD subscribers. The rules also consider
situations and offer relief where the commercial availability of
navigation devices performing conditional access functions could
adversely impact an MVPD. An MVPD is not subject to the rules requiring
the commercial availability of navigation devices if: (1) it is not
reasonably feasible to separate conditional access functions from other
functions; or (2) it is not reasonably feasible to prevent the
unauthorized reception of service by subscribers using navigation
devices obtained from other sources. In the Order on Reconsideration,
an additional subpart of a rule is adopted to defer the requirement
that an MVPD offer equipment that incorporates only the conditional
access functions of device if a navigation device (1) employs
conditional access mechanisms only to access analog video programming;
(2) is capable only of providing access to analog video programming
offered over a multichannel video programming distribution system; and
(3) does not provide access to any digital transmission of multichannel
video programming or any other digital service through any receiving,
decoding, conditional access, or other function, including any
conversion of digital programming or service to an analog format. The
deferral of analog boxes at this time is to allow the market
participants to focus on digital devices.
17. It is ordered that the Petitions for Reconsideration filed by
the Consumer Electronics Manufacturers Association, the National Cable
Television Association, the Telecommunication Industry Association,
Time Warner Entertainment Company L.P., and the Wireless Cable
Association International, Inc. are granted to the extent discussed
herein, and are otherwise denied.
18. It is ordered that, pursuant to authority found in sections
4(i), 303(r) and 629 of the Communications Act of 1934, as amended, 47
U.S.C. 154(i), 303(r), and 549, the Commission's rules are hereby
amended as set forth below.
19. It is further ordered that the rules as amended shall become
effective upon July 2, 1999.
20. It is further ordered that the Commission's Office of Public
Affairs, Reference Operations Division, shall send a copy of this
Report and Order, including the Final Regulatory Flexibility Analysis,
to the Chief Counsel for Advocacy of the Small Business Administration.
List of Subjects in 47 CFR Part 76
Cable television.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
Rule Changes
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 76 as follows:
PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE
1. The authority citation for part 76 continues to read as follows:
Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 303, 303a,
307, 308, 309, 312, 315, 317, 325, 503, 521, 522, 531, 532, 533,
534, 535, 536, 537, 543, 544, 544a, 545, 548, 549, 552, 554, 556,
558, 560, 561, 571, 572, 573.
2. Section 76.1204 is amended by adding paragraph (f) to read as
follows:
Sec. 76.1204 Availability of equipment performing conditional access
or security functions.
* * * * *
(f) Paragraphs (a)(1), (b), and (c) of this section shall not apply
to the provision of any navigation device that:
(1) Employs conditional access mechanisms only to access analog
video programming;
(2) Is capable only of providing access to analog video programming
offered over a multichannel video programming distribution system; and
[[Page 29601]]
(3) Does not provide access to any digital transmission of
multichannel video programming or any other digital service through any
receiving, decoding, conditional access, or other function, including
any conversion of digital programming or service to an analog format.
[FR Doc. 99-13915 Filed 6-1-99; 8:45 am]
BILLING CODE 6712-01-P
