99-19709. Eligibility Requirements in Part 78 Regarding 12 GHz Cable Television Relay Service  

  • [Federal Register Volume 64, Number 147 (Monday, August 2, 1999)]
    [Proposed Rules]
    [Pages 41899-41903]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-19709]
    
    
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    FEDERAL COMMUNICATIONS COMMISSION
    
    47 CFR Part 78
    
    [CS Docket No. 99-250; FCC 99-166]
    
    
    Eligibility Requirements in Part 78 Regarding 12 GHz Cable 
    Television Relay Service
    
    AGENCY: Federal Communications Commission.
    
    ACTION: Notice of proposed rulemaking.
    
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    SUMMARY: This document requests comment on amending the Commission's 
    rules to allow private cable operators (``PCOs'') and other 
    multichannel video programming distributors (``MVPDs'') to use the 
    frequencies in the 12 GHz band for the delivery of video programming. 
    This document is in response to a petition for rulemaking filed with 
    the Commission by Optel, Inc., a PCO that provides video programming 
    and other services to residential subscribers, requesting eligibility 
    to use the 12 GHz Cable Television Relay Service (``CARS'') band for 
    video programming. The Notice invites comments which will help the 
    Commission determine the competitive impact on franchised cable 
    resulting from the proposed expansion of eligibility for CARS licenses 
    to PCOs and other MVPDs. The Notice also invites comments on technical 
    and spectrum management issues relevant to expansion of CARS 
    eligibility.
    
    DATES: Comments are due on or before August 16, 1999 and reply comments 
    are due on or before September 20, 1999.
    
    ADDRESSES: Federal Communications Commission, Office of the Secretary, 
    445 12th Street, S.W., Room TW-A325, Washington, D.C. 20554. Comments 
    may be filed using the Commission's Electronic Comment Filing System 
    (ECFS) or by filing paper copies. See Electronic Filing of Documents in 
    Rulemaking Proceedings, 63 FR 24121 (January 2, 1998). Comments filed 
    through the ECFS can be sent as an electronic file via the Internet to 
    http://www.fcc.gov/e-file/ecfs.html>. Generally, only one copy of an 
    electronic submission must be filed. In completing the transmittal 
    screen, commenters should include their full name, Postal Service 
    mailing address, and the applicable docket or rulemaking number. 
    Parties may also submit an electronic comment by Internet e-mail. To 
    get filing instructions for e-mail comments, commenters should send an 
    e-mail to ecfs@fcc.gov, and should include the following words in the 
    body of the message, ``get form .'' A sample form 
    and directions will be sent in reply.
    
    FOR FURTHER INFORMATION CONTACT: Eloise Gore or Carolyn Fleming at 
    (202) 418-7200 or via internet at egore@fcc.gov or cfleming@fcc.gov.
    
    SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
    Notice of Proposed Rulemaking, FCC 99-166, CS Docket No. 99-250, 
    adopted July 9, 1999 and released July 14, 1999 (``Notice''). The full 
    text of this Notice is available for inspection and copying during 
    normal business hours in the FCC Reference Center (Room CY-A257), 445 
    12th Street, S.W., Washington, D.C. 20554, or may be purchased from the 
    Commission's copy contractor, International Transcription Service 
    (``ITS''), (202) 857-3800, 1231 20th Street, NW, Washington, D.C. 
    20036, or may be reviewed via internet at http://www.fcc.gov/Bureaus/
    Cable/News__Releases/1998/nrcb8022.html>. For copies in alternative 
    formats, such as braille, audio cassette or large print, please contact 
    Sheila Ray at ITS.
    
    Ex Parte Rules
    
        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 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 1.1206(b)(2), as revised.) 
    Additional rules pertaining to oral and written presentations are set 
    forth in 47 CFR 1.1206(b).
    
    Synopsis of Notice of Proposed Rulemaking
    
    Introductory Background
    
        1. In this proceeding, we respond to a petition for rulemaking 
    filed by Optel, Inc. (``Optel''), a PCO that provides video and other 
    services to residential users primarily located in multiple dwelling 
    units (``MDUs'') on a shared tenant basis. In its petition, Optel 
    proposes to expand eligibility for the 12 GHz CARS band to include 
    PCOs. On its own motion, the Commission seeks comment on expanding 
    eligibility to other MVPDs. The Optel petition was filed on April 1, 
    1998. The Commission received comments all of which were in support of 
    Optel's petition.
        2. For purposes of the Notice, the 12 GHz frequency band is defined 
    as the band segment 12.70--13.20 GHz shared by CARS and other services. 
    Currently, that segment of the 12 GHz bandwidth is used by, among 
    others, CARS licensees which provide point-to-point, e.g., from one 
    side of a river or mountain to the other side of the river or mountain, 
    and point-to-multipoint transmissions, e.g., from one side of a river 
    or mountain to many points, video and related audio signals. Part 78 of 
    the Commission's rules governs the
    
    [[Page 41900]]
    
    licensing and operations of fixed or mobile CARS stations; thus, if 
    Optel's petition is granted Sections 78.11 and 78.13 which govern both 
    the eligibility criteria and the permissible services for CARS 
    licensees would need to be amended. Optel has also requested use of the 
    frequency band segment from 13.20 to 13.25 GHz for delivery of video 
    programming. However, that segment is not designated for CARS use but 
    rather for broadcast auxiliary service (``BAS''), including on-site 
    mobile transmissions for electronic newsgathering. The Notice seeks 
    comment on spectrum sharing issues raised by Optel's petition as it 
    relates to incumbent cable operators in the 12 GHz CARS band and to the 
    compatibility between fixed PCOs and mobile BAS in the 13.20 to 13.25 
    band segment.
        3. In its petition, Optel contends that PCOs need access to the 12 
    GHz CARS band because: (1) Opening the 12 GHz CARS band to PCO 
    licensees would enhance competition with the franchised cable industry; 
    (2) the Commission has established precedent for extending CARS 
    eligibility to other similar users such as multipoint distribution 
    service (``MDS'') and multichannel, multipoint distribution service 
    (``MMDS'') operators; and (3) the 18 GHz frequency band, because of 
    technical difficulties and recent and pending Commission rulemakings, 
    can no longer support the services provided by the PCO industry. Optel 
    also argues that, in the 12 GHz CARS band, it can provide more channels 
    (up to 82 channels if the CARS band includes 13.20 GHz-13.25 GHz) and, 
    therefore, can be more competitive with franchised cable systems.
        4. The Commission's rules define a CARS station as a fixed or 
    mobile station used for the transmission of television and related 
    audio signals, signals of standard and FM broadcast stations, signals 
    of instructional television fixed stations, and cable casting from the 
    point of reception to a terminal point from which the signals are 
    distributed to the public. (47 CFR 78.5(a)). CARS licensees are 
    authorized to use CARS stations to relay signals for and to supply 
    program material to cable television systems and other eligible 
    entities using point-to-point and point-to-multipoint transmissions. 
    (47 CFR 78.11(a), (c), (d)).
        5. Optel's petition also requests amendment of Section 
    101.603(a)(2) to add the 12 GHz band to those frequency bands on which 
    PCO licensees may deliver video programming and Section 101.603(b)(3) 
    to include the 12 GHz band among those frequency bands that may be used 
    to provide the final Radio Frequency (``RF'') link in the chain of 
    transmission of program material to cable television systems, MDS, or 
    Master Antenna Television Systems (``MATVs''). Part 101 of the 
    Commission's rules governs the manner in which portions of the radio 
    spectrum may be made available for use by private operational, common 
    carrier, Local Multipoint Distribution Service (``LMDS''), and certain 
    fixed microwave operations. PCOs currently obtain licenses under Part 
    101 for certain frequencies when their operations use microwave 
    distribution. PCOs are permitted by Part 101 to use the 18 GHz (18.142 
    GHz-18.580 GHz) and 23 GHz (21.20 GHz-23.60 GHz) frequency bands to 
    distribute video programming. Sections 78.11 and 78.13 govern both the 
    eligibility criteria and the permissible services for CARS licensees. 
    If at the conclusion of this rulemaking the Commission determines to 
    extend the use of the 12 GHz CARS band to PCOs and other MVPDs, 
    procedurally it will be sufficient to amend Section 78.13 of the 
    Commission's rules, which would be consistent with the Commission's 
    previous amendments to Section 78 of its rules to extend CARS 
    eligibility to other service providers and would ensure that all users 
    of this band for video distribution purposes are governed by the same 
    rules and licensing criteria. No amendment to Part 101 is necessary. 
    The Notice states that amending Part 78 to make PCOs and other MVPDs 
    eligible for 12 GHz CARS licenses would also make them eligible for 
    CARS licenses in the 18 GHz band, as are other current CARS licensees.
    
    Competition in the Video Programming Distribution Industry
    
        6. Optel maintains that it competes directly with incumbent 
    franchised cable operators. Commenters agree with Optel's contentions 
    with regard to the alleged competitive benefits of extending CARS 
    eligibility to PCO licensees. RCN Telecom Services, Inc. (``RCN''), an 
    operator of open video systems (``OVS''), argues that extending CARS 
    eligibility to PCO licensees would establish parity between franchised 
    cable operators who use the CARS band to relay programming material and 
    PCO licensees who would use the 12 GHz CARS band for similar purposes. 
    RCN believes that granting Optel's petition would result in increased 
    competition for two reasons. First, RCN states that extending CARS 
    eligibility to PCOs would satisfy the underlying goals of the 1996 Act 
    by removing competitive obstacles and fostering competition. Second, 
    RCN states that Optel correctly compares the status of PCO licensees 
    with that of MDS licensees who were found to be competitors of 
    franchised cable operators and eligible for CARS licenses. The Notice 
    seeks comment on the effect on incumbent CARS licensees of permitting 
    PCO licensees to use the 12 GHz CARS band. The Notice seeks comment as 
    to whether the proposed use of the 12 GHz CARS band by Optel is 
    consistent with the current channelization scheme for 12 GHz CARS 
    licensees. The channelization scheme sets the upper and lower frequency 
    boundaries for each assigned channel used in the CARS band. The Notice 
    further inquires as to whether there are other technical considerations 
    or issues of spectrum congestion or coordination among licensees which 
    should be considered.
        7. The Notice notes that PCOs currently are permitted to use 18 GHz 
    and 23 GHz for video, as well as for data and voice. The Notice seeks 
    comment on the costs for PCOs associated with the use of multiple 
    frequency bands that they could use under the existing rules. 
    Specifically, we request a detailed cost analysis and comparison, 
    including equipment costs, comparing use of 18 GHz or 23 GHz versus use 
    of the 12 GHz CARS band.
        8. In the Notice, the Commission states its belief that Optel's 
    petition presents an opportunity to consider expanding eligibility for 
    the CARS band to MVPDs other than PCOs. Thus, on the Commission's own 
    motion, the Notice seeks comment on expanding eligibility for the CARS 
    band to entities such as OVS operators and others who provide video 
    programming as their dominant service. An example of an MVPD which 
    provides video programming as its dominant service is an MVPD that 
    offers 60 channels of video programming and 2 channels of ancillary 
    services. The Commission has stated that use of the microwave radio 
    spectrum should be governed by type of use rather than type of licensee 
    is applicable here. See Amendment of Parts 21, 43, 74, 78, and 94 of 
    the Commission's Rules Governing Use of the Frequencies in the 2.1 and 
    2.5 GHz Bands Affecting: Private Operational-Fixed, Microwave Service, 
    Multipoint Distribution Service, Multichannel Multipoint Distribution 
    Service, Instructional Television Fixed Service, and Cable Television 
    Relay Service, 5 FCC Rcd 6410, 6423 (1990), 55 FR 46006 (Oct. 31, 1990) 
    (``CARS Order''). Based on that principle, the Commission expanded 
    eligibility for the CARS band to MDS licensees and further stated that 
    similarly-situated entities should have parity of access to the 
    spectrum. In the CARS Order, the
    
    [[Page 41901]]
    
    Commission stated that cable and wireless cable, respectively, have 
    similar needs for CARS frequencies and there was no evidence to justify 
    disparate treatment with regard to use of the CARS band.
        9. The Commission notes that franchised cable systems that are 
    currently eligible for CARS licenses generally are required to provide 
    service to an entire community. In contrast, PCOs can select those 
    areas and buildings where they wish to provide service and ignore less 
    desirable areas or buildings. The Notice seeks comment on whether PCOs 
    should have the same access to CARS stations without being required to 
    provide the same level of service. In addition, we seek comment on the 
    conflict that could arise where a franchised cable system may be unable 
    to serve a part of a community which it is required to serve because a 
    PCO already has the CARS license for those frequencies. The Notice 
    seeks comment on whether PCOs and other MVPDs would first have to 
    exhaust their spectrum usage in the 18 GHz and 23 GHz frequency bands, 
    as provided by Part 101 of the Commission's rules, before being 
    eligible to use the 12 GHz CARS band. The Notice further seeks comment 
    on whether PCO use of the 12 GHz band for CARS should be limited to 
    secondary use where it will not interfere with cable systems or MMDS 
    licensees that have actual plans to use a CARS station. The Notice 
    inquires further as to whether there are other conditions or 
    restrictions which should be imposed. For example, should the 
    Commission limit CARS eligibility to only those PCOs with a certain 
    minimum number of subscribers?
    
    Technical Limitations in the 18 GHz Band
    
        10. Optel currently uses microwave distribution centers in the 18 
    GHz frequency band to interconnect private cable systems to a central 
    headend facility. Optel maintains, however, that the 18 GHz band can no 
    longer support the range of services offered by itself and other PCOs 
    because the propagation limitations of the 18 GHz band significantly 
    restrict PCOs' ability to expand due to greater operating costs. Optel 
    maintains that the signal propagation characteristics (e.g., distance 
    over which the signal remains strong) of the 18 GHz band make it 
    unsuitable for widely distributed systems and limits growth within the 
    PCO industry. Optel states that transmissions in the 18 GHz band have 
    an effective range up to 8 miles and that PCOs who wish to provide 
    service outside of the 8 mile area would be forced to build a new 
    headend closer to the outlying systems, add microwave relay stations, 
    or abandon expansion projects altogether. Depending upon path 
    conditions, it has been the Commission's experience that CARS stations 
    in the 12 GHz frequency band using Amplitude Modulated Links (AML) can 
    travel 11-15 miles and, in the 18 GHz frequency band, 8-11 miles. The 
    Notice also refers to section 78.108 of the Commission's rules which 
    requires minimum path lengths of 5 km between the end points of a fixed 
    link using the 12 GHz CARS band. The Notice seeks comment on the 
    estimates of effective range and the assertion that PCOs need 
    additional range and raises related questions such as should PCOs be 
    required to demonstrate that they need to transmit over more than 10 
    miles before they are eligible for a CARS license? The Notice requests 
    comment on the technical impact on PCOs which continue to operate in 
    the 18 GHz band. The Notice also requests comment on the impact to CARS 
    operations, including franchised cable systems that are currently CARS 
    licensees or may need access to CARS in the future, if PCO entities are 
    allowed access to the 12.75-13.25 GHz band. Will cable systems' 
    transition to fiber optics obviate their need for CARS stations thus 
    lessening any potential negative impact and making more spectrum 
    available to other applicants, such as PCOs and other MVPDs?
    
    Effect on PCOs of Other Ongoing Commission Rulemakings
    
        11. Optel contends that PCOs need access to the 12 GHz CARS 
    frequency band because certain ongoing Commission rulemaking 
    proceedings threaten to limit PCOs' use of the 18 GHz frequency band. 
    Specifically, Optel argues its ability to compete with franchised cable 
    operators in the Denver, CO and the Washington, D.C. markets has been 
    limited by the Commission's decision to relocate Digital Electronic 
    Message Services (``DEMS'') in connection with the establishment of 
    ``exclusion zones.'' Optel further argues that its continued existence 
    in the 18 GHz frequency band would be impaired by the grant of blanket 
    licenses to fixed satellite service (``FSS'') users in the 18 GHz band 
    as proposed in the Notice of Proposed Rulemaking, Redesignation of the 
    17.7-19.7 GHz Frequency Band, Blanket Licensing of Satellite Earth 
    Stations in the 17.7-20.2 GHz and 27.5-30.0 GHz Frequency Bands, and 
    the Allocation of Additional Spectrum in the 17.3-17.8 GHz and 24.75-
    25.25 GHz Frequency Bands for Broadcast Satellite Service Use, FCC 98-
    235, 63 FR 54100 (Oct. 8, 1998) (``Redesignation NPRM''). Currently, 
    the 17.70 to 19.70 GHz band is allocated for shared use between 
    satellite services and terrestrial fixed services. If the Redesignation 
    NPRM is adopted as proposed, Optel and other terrestrial fixed services 
    would lose their current co-primary status in the 18.30 GHz-18.55 GHz 
    and 18.80 GHz-19.30 GHz bands but gain primary status in the 17.70 Ghz-
    18.30 Ghz bands. The Commission has determined that fixed services can 
    continue to file for authorization to use these bands, but after the 
    adoption of a Report and Order in Redesignation NPRM proceeding, such 
    applications would be accorded secondary status to promote exclusive 
    use of this spectrum by satellite operations. The Commission has 
    explained that a service that is designated as co-primary must share a 
    frequency band with other services designated as co-primary on a co-
    equal basis and that a service designated as secondary may use a 
    frequency band as long as its operations do not cause interference to 
    any primary designated operations. If interference occurs, the 
    secondary designated service must cease operations. The Notice seeks 
    comment on whether the increasing constraints that will be presented 
    for terrestrial services at 18 GHz warrants making the 12 GHz CARS band 
    available for PCO service, or whether other alternatives, such as 23 
    GHz, or use of fiber optic cable, can reasonably provide necessary 
    capacity.
        12. The Notice also takes note of another ongoing Commission 
    proceeding that raises spectrum sharing issues with regard to the 12 
    GHz frequency bandwith, i.e., In the Matter of Amendments of Parts 2 
    and 25 of the Commission's Rules to Permit Operation of NGSO FSS 
    Systems Co-Frequency with GSO and Terrestrial Systems in the Ku-Band 
    Frequency Range and Amendment of the Commission's Rules to Authorize 
    Subsidiary Terrestrial Use of the 12.2-12.7 GHz Band by Direct 
    Broadcast Satellite Licensees and Their Affiliates, Notice of Proposed 
    Rulemaking (``NGSO 12 GHz NPRM''), 64 FR 1786 (Jan. 12, 1999). Among 
    other issues, the NGSO 12 GHz NPRM responds to a petition filed by 
    SkyBridge LLC requesting that the Commission allow NGSO FSS gateway 
    earth stations earth-to-space links in the CARS frequencies at 12.75 
    GHz-13.25 GHz on a co-primary basis, subject to appropriate 
    coordination and spectrum sharing requirements. The NGSO 12 GHz NPRM 
    takes notice of the Optel petition and requests comments on the
    
    [[Page 41902]]
    
    compatibility between new NGSO FSS operations and Optel's proposed use 
    of the 12 GHz frequency band. As noted in the NGSO 12 GHz NPRM, 12.75-
    13.25 GHz is currently subject to heavy usage. Optel's request for use 
    of the 12 GHz CARS band and that of SkyBridge, if granted, could 
    greatly increase the terrestrial use of the 12 GHz band, although 
    Optel's use of the 12 GHz CARS band for point-to-point and point-to-
    multipoint relay of signals will not differ from the current use of the 
    band by CARS licensees. Spectrum sharing issues with respect to the 
    proposed NGSO FSS operations in the 12.75-13.25 GHz band will be 
    considered in ET Docket No. 98-206. Consideration of these issues need 
    not be repeated in this docket. The Notice invites comment in this 
    proceeding only on any additional issues specifically related to the 
    question of expanding CARS eligibility.
    
    Other Issues
    
        13. The Commission, pursuant to 309(j) of the Telecommunications 
    Act of 1996, is required to implement a system of competitive bidding 
    when mutually exclusive applications are accepted for filing for any 
    initial license or permit involving use of the spectrum. Currently CARS 
    licenses are not auctioned. However, if the Commission determines that 
    opening the CARS band to PCOs and other MVPDs creates mutually 
    exclusive applications, the CARS spectrum would be subject to auction. 
    Alternatively, the Commission could adopt priority of use rules, which 
    would avoid mutual exclusivity and the auctioning of the CARS spectrum. 
    The Notice seeks comment on the effect of auctioning CARS spectrum or 
    adopting priority of use rules. The Notice also seeks comment on the 
    applicability of the Commission's Part 1 auction rules to this service 
    in the event the Commission decides to award CARS licenses through 
    competitive bidding. The Notice also seeks comment on whether the 
    Commission should adopt a minimum subscriber requirement to avoid 
    permitting a PCO with a small number of subscribers to use a CARS 
    station that could have been licensed, instead, to a cable system 
    serving significantly more subscribers. Another option for 
    consideration and comment is granting PCOs and other MVPDs secondary, 
    but not primary, eligibility for using the 12 GHz CARS band.
        14. Some PCOs currently use 18 GHz or 23 GHz to bundle data, voice, 
    video and other services in one package for their customers. The 12 GHz 
    CARS band must be used principally for the delivery of video 
    programming. The Notice does not propose to change the principal use of 
    CARS as a tool for relaying video programming between and among the 
    components of a cable or other eligible system. However, we seek 
    comment on whether and to what extent CARS licensees should be 
    permitted to provide voice or data using the 12 GHz CARS band provided 
    the principal use remains the delivery of video programming and subject 
    to existing technical and operating requirements.
        15. The Commission, on its own motion, seeks comment on the 
    realignment and the reassignment of the channel frequency assignments 
    set forth in Section 78.18(a) of the Commission's rules to provide for 
    more efficient use of channels by facilitating continuous channel 
    transmissions. Specifically, the Notice seeks comments on: (1) 
    designating the unassigned guard band (12.9465-12.9525 GHz) as channel 
    C43, and the unassigned second guard band (13.0057-13.0125) as channel 
    D43; and (2) allowing CARS operators to slightly shift the frequencies 
    of channels C04-C10, channels D04-D10, channels E04-E10, and channels 
    F04-F10 to produce 6-6 MHz video channels for each channel group (i.e., 
    C group, D group, E group, and F group). Currently, applicants must 
    seek waivers for a change in the frequency assignments pursuant to 
    Section 78.18 of the Commission's rules for such minor frequency shifts 
    and to use the guard band. The Notice also seeks comment on whether 
    other changes in frequency assignments are necessary to provide for 
    more seamless and efficient use of the CARS frequency spectrum.
    
    Paperwork Reduction Act
    
        The requirements proposed in this Notice have been analyzed with 
    respect to the Paperwork Reduction Act of 1995 and do not impose new or 
    modified information collection requirements on the public.
        OMB Approval Number: None.
        Title: In the Matter of Petition for Rulemaking To Amend 
    Eligibility Requirements in Part 78 Regarding 12 GHz Cable Television 
    Relay Service.
        Type of review: None.
        Initial Regulatory Flexibility Analysis: 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 Notice of Proposed Rulemaking. Written public comments concerning 
    the effect of the proposals in the NPRM, including the Initial 
    Regulatory Flexibility Act, 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.
    
    A. Reasons Why Agency Action is Being Considered
    
        This Notice is in response to a petition for rulemaking filed by 
    Optel.
    
    B. Need for Action and Objectives of the Proposed Rule Change
    
        The Commission undertakes this proceeding to address the spectrum 
    sharing and technical issues presented by Optel's petition. Optel's 
    petition, if granted, could increase competition to incumbent, 
    franchised cable operators, particularly with regard to video 
    programming service to multi-dwelling units. While we desire to promote 
    competition and innovation by allowing for new services or additional 
    spectrum use, we also need to consider the competing interests of the 
    incumbent services in the 12 GHz CARS band. The Notice notes the need 
    to consider the impact on PCOs of recent and pending Commission 
    rulemakings involving the 18 GHz band. Thus, the Notice seeks comment 
    on whether the proposed blanket licensing of GSO/FSS operators in the 
    18 GHz will unduly constrain future growth of incumbent PCO users.
    
    C. Legal Basis
    
        The authority for the action proposed for this rulemaking is 
    contained in Sections 4(i)-(j), 303(c), (f), (g), and (r), and 309(j) 
    of the Communications Act of 1934, as amended.
    
    D. 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 
    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 Small Business Administration.
    Private Cable Operators
        The proposal to permit PCOs to use the 12 GHz CARS band applies to 
    all
    
    [[Page 41903]]
    
    private cable system operators. The Commission has developed, with the 
    approval of the Small Business Administration (``SBA''), 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, the Commission estimates that there were 3,400 
    private cable operators serving multiple dwelling units that qualified 
    as small cable companies. Some of those companies may have grown to 
    serve from 800,000 to 1.5 million subscribers, and others may have been 
    involved in transactions that caused them to be combined with other 
    cable operators. Consequently, the Commission estimates that there are 
    fewer than 3,400 small entity cable system operators that may be 
    affected by the decisions and rules the Commission adopts.
    
    E. Reporting, Recordkeeping, and Other Compliance Requirements
    
        The Commission is not proposing to impose additional reporting or 
    recordkeeping requirements.
    
    F. Significant Alternatives Which Minimize the Impact on Small Entities 
    and Are Consistent With Stated Objectives
    
        The NPRM solicits comments on all alternatives to Optel's request 
    which would minimize any adverse impact on small entities.
    
    G. Federal Rules Which Overlap, Duplicate, or Conflict With the 
    Commission's Proposal
    
        None.
    
    H. 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. 
    801(a)(1)(A). A copy of this IRFA will also be published in the Federal 
    Register.
    
    Ordering Clauses
    
        It is ordered that, pursuant to Sections 4(i)-(j) of the 
    Communications Act of 1934, as amended, 47 U.S.C. 154(i)-(j), 303(c), 
    (f), and (r), and 309(j), notice is hereby given of the proposed 
    amendments to part 78 of the Commission's rules, in accordance with the 
    proposals, discussions, and statements of issues contained in this 
    Notice of Proposed Rulemaking, and that comment is sought regarding 
    such proposals, discussions, and statements of issues.
        It is further ordered that the Commission's Office of Public 
    Affairs, Reference Operations Division, shall send a copy of this 
    Notice of Proposed Rulemaking, including the Initial Regulatory 
    Flexibility Analysis, to the Chief Counsel for Advocacy of Small 
    Business Administration, in accordance with paragraph 603(a) of this 
    regulatory Flexibility Act. Public Law 96-354, 94 Stat. 1164, 5 U.S.C. 
    601 et seq. (1981).
    
    List of Subjects in 47 CFR Part 78
    
        Cable television, Communications equipment.
    
    Federal Communications Commission.
    William F. Caton,
    Deputy Secretary.
    [FR Doc. 99-19709 Filed 7-30-99; 8:45 am]
    BILLING CODE 6712-01-P
    
    
    

Document Information

Published:
08/02/1999
Department:
Federal Communications Commission
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking.
Document Number:
99-19709
Dates:
Comments are due on or before August 16, 1999 and reply comments are due on or before September 20, 1999.
Pages:
41899-41903 (5 pages)
Docket Numbers:
CS Docket No. 99-250, FCC 99-166
PDF File:
99-19709.pdf
CFR: (1)
47 CFR 78