[Federal Register Volume 60, Number 165 (Friday, August 25, 1995)]
[Rules and Regulations]
[Pages 44280-44281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21244]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 63
[CC Docket No. 87-266, FCC 95-357]
Streamlined Section 214 Authorization for Stand-alone Cable
Systems
agency: Federal Communications Commission (FCC).
action: Final rule.
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summary: Section 214 of the Communications Act requires local exchange
telephone companies (LECs) to obtain authorization from the Federal
Communications Commission before constructing or acquiring a cable
system in their service territories. Although section 613(b) of the Act
generally prohibits LECs from providing video programming directly to
subscribers in their service areas, various court decisions have
enjoined the Commission from enforcing this telco-cable cross-ownership
ban against virtually all LECs. This order concludes that it is in the
public interest to streamline the section 214 process with respect to
those LECs against whom the Commission is not enforcing the cross-
ownership ban that seek authorization to construct facilities to
provide cable service in their service areas on a stand-alone basis.
effective date: August 25, 1995.
for further information contact: Mark S. Nadel, Policy and Program
Planning Division, Common Carrier Bureau, (202) 418-1594.
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
Public reporting burden for the collections of information is
estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collections of information. Send comments regarding these burden
estimates or any other aspect of the collections of information,
including suggestions for reducing the burden, to the Federal
Communications Commission, Records Management Branch, Room 234,
Washington, DC 20554 and to the Office of Management and Budget,
Paperwork Reduction Project, Washington, DC 20503.
Background
In 1970, the Commission concluded that section 214 of the Act
requires that a LEC obtain Commission authorization before constructing
or operating a cable system in its service territory. However, under
Commission rules enacted in 1970 and later under section 613(b) of the
Cable Communications Policy Act of 1984, LECs were generally prohibited
from providing video programming directly to subscribers in their
telephone service areas.
After this cross-ownership ban was found to violate the First
Amendment and the Commission was enjoined from enforcing it against
virtually all LECs, the Commission issued Telephone Company-Cable
Television Cross-Ownership Rules, sections 63.54-63.58, Fourth Further
Notice of Proposed Rulemaking, CC Docket No. 87-266, 10 FCC Rcd 4617,
60 FR 8996 (Feb. 16, 1995), to consider how current statutory
provisions, including section 214, should apply to a LEC's provision of
video programming to subscribers in its service area. Subsequently, to
supplement the record on certain particular issues, Commission staff
sought additional comment, inter alia, on whether the Commission should
grant blanket section 214 authorization to such LECs for construction
or acquisition of cable facilities in their service areas. Public
Notice, DA 95-665, 60 FR 17763 (Apr. 7, 1995). Comment was also sought
on whether such blanket section 214 authorization should apply both
when the cable television facility is used also to provide telephone
service and when the facility is used to provide only cable television
services. Finally, comment was sought on what, if any, other
circumstances warrant granting consideration of such blanket section
214 authorization when a telephone company provides video programming
in its service area, on any methods for streamlining the section 214
application process, and on how the relevant rules should be amended.
Summary of Fourth Report and Order
This is a summary of the Commission's Fourth Report and Order in
Telephone Company-Cable Television Cross-Ownership Rules Secs. 63.54-
63.58, CC Docket No. 87-266; FCC 95-357, Adopted: August 11, 1995 and
Released: August 14, 1995. The full text of this Commission decision is
available for inspection and copying during normal business hours in
the FCC Dockets Branch (room 230), 1919 M
[[Page 44281]]
Street NW., Washington, DC. The complete text of this decision may also
be purchased from the Commission's copy contractor, ITS, (202)-857-
3800, 2100 M Street NW., suite 140, Washington, DC 20037.
This order streamlines the authorization process for telephone
companies who seek to construct stand-alone cable television facilities
in their service areas. These streamlined procedures apply to those
telephone companies who have obtained injunctions that bar the FCC from
enforcing the telco-cable cross-ownership ban.
The Cable Act of 1984 generally prohibits LECs from providing video
programming directly to subscribers in their telephone service areas. A
series of court decisions, however, have found that this cross-
ownership ban violates the First Amendment and have enjoined the
Commission from enforcing it. In response, in January, the Commission
adopted a Notice of Proposed Rulemaking seeking comment on the rules
that should apply to a LEC's provision of video programming to
subscribers in its service area. In April, Commission staff sought
additional comment on whether it should grant blanket section 214
authorization to such LECs for construction or acquisition of cable
facilities in their service areas.
Under section 214 of the Communications Act, LECs are required to
obtain Commission authorization before acquiring, constructing, or
operating a cable television system. In 1984, the Commission found that
it was in the public interest to grant a blanket section 214
authorization to LECs seeking to operate cable systems outside of their
telephone service areas.
Because judicial injunctions prevent the Commission from enforcing
the cross-ownership ban, it finds, in this Order, that the public
interest will be served by adopting a streamlined authorization process
for those LECs against whom it is not enforcing the cross-ownership ban
who seek to construct stand-alone cable facilities in their service
areas.
Under these streamlined procedures, a LEC will be required to
certify that the system it proposes to construct is not a common
carrier system, that it will comply with the rules the Commission has
promulgated to protect telephone ratepayers, and that it has secured a
franchise to provide cable service pursuant to Title VI of the
Communications Act. Unless the Common Carrier Bureau notifies the
applicant within 14 days of the issuance of the public notice listing
the application as accepted for filing, the authorization will be
deemed granted. Where the Bureau notifies the applicant, action by the
full Commission will be taken within 180 days of that notification.
List of Subjects in 47 CFR Part 63
Cable television, Communications common carriers, Reporting and
recordkeeping requirements, Telephone.
Amendments to the Code of Federal Regulations
Title 47 of the CFR, Part 63 is amended as follows:
PART 63--EXTENSION OF LINES AND DISCONTINUANCE, REDUCTION, OUTAGE
AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND GRANTS OF
RECOGNIZED PRIVATE OPERATING AGENCY STATUS
1. The authority citation for Part 63 continues to read as follows:
Authority: Sections 1, 4(i), 4(j), 201-205, 218, and 403 of the
Communications Act of 1934, as amended, 47 U.S.C. secs. 151, 154(i),
154(j), 201-205, 218, and 403, unless otherwise noted.
2. New Sec. 63.16 is added under the heading ``Extensions and
Supplements'' to read as follows:
Sec. 63.16 Construction of stand-alone cable system by a carrier in
its exchange telephone service area.
(a) Applications of telephone common carriers proposing to
construct and operate stand-alone cable systems within their telephone
service areas, either directly or indirectly through affiliates, need
include only the following information in lieu of that required by
Sec. 63.01:
(1) Applicant's name, address and telephone number. This
information shall also be submitted for Applicant's affiliate, if
applicable;
(2) Location of the proposed system (city, town or village, county,
and state);
(3) Certification that the lines constructed by the Applicant
constitute a stand-alone cable system that will not be used to provide
common carrier service unless and until it has secured any prior
approvals necessary under Part 64 of this chapter and any other
requirements designed to ensure that the local exchange carriers'
telephone ratepayers do not subsidize the provision of cable service;
(4) Certification that the Applicant will comply with 47 CFR 32.23,
32.27, 64.901-64.904;
(5) Certification that the Applicant is franchised to provide cable
service pursuant to Title VI of the Communications Act, and date of
franchise; and
(b) As used in this section, a stand-alone cable system is one that
does not share central office assets (USOA Accounts 2210 through 2232,
47 CFR 32.2210-32.2232) or cable and wire facilities (USOA Accounts
2410 through 2441, 47 CFR 32.2410-32.2441) with the carrier's regulated
telephone telephone business.
(c) An original and two copies of the application shall be
furnished to the Secretary, Federal Communications Commission,
Washington, DC 20554. Applicant shall furnish a copy of the Governor of
the state in which the line is to be constructed, and also to the
Secretary of Defense, Attn. Special Assistant for Telecommunications,
Pentagon, Washington, DC 20301.
(d) Unless the Bureau notifies the applicant otherwise within 14
days of the issuance of the public notice listing the application as
accepted for filing, the 47 U.S.C. 214 authorization will be deemed
granted, and the LEC may begin construction on the 15th day. The Bureau
will confirm such authorizations in public notices issued monthly.
Where the Bureau has notified the applicant, action by the full
Commission on the 47 U.S.C. 214 application will be taken within 180
days from the date of the Bureau notification.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 95-21244 Filed 8-24-95; 8:45 am]
BILLING CODE 6712-01-M
