HomeMy WebLinkAboutOrd 03-94 Cable TV RatesORDINANCE NO. 3 - 94
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AMENDING MUNICIPAL CODE CHAPTER 3.20 (CABLE TELEVISION FRANCHISE)
TO PROVIDE FOR THE REGULATION OF BASIC SERVICE TIER RATES AND
RELATED EQUIPMENT, INSTALLATIONS AND SERVICE CHARGES AND
CUSTOMER SERVICE STANDARDS OF ANY CABLE TELEVISION SYSTEM
OPERATING IN THE CITY OF DUBLIN
The City Council of the City of Dublin does hereby ordain.
Title 3, Chapter 20, of the Dublin Municipal Code is amended by adding the following sections:
Section 1 - FCC Cable Regulations
3.20.335 shall be added to the DMC to read as follows:
a. Incorporation of FCC Cable Regulations
Grantor hereby adopts and incorporates by reference the FCC Cable Regulations implementing
the Cable Television Consumer Protection and Competition Act of 1992 (47 U.S.C. 521 et seq.),
including but not limited to those rules and regulations regarding rate regulation as set forth in
47 CFR 76.900 to76.985 and regarding customer service standards as set forth in 47 CFR 76.309.
Amendments to FCC rules and regulations implementing the Cable Act of 1992 made after the
effective date of this section shall also be incorporated by reference without further legislative
action by the Grantor°
The FCC Cable Regulations supersede any different or inconsistent provisions in the Chapter
3.20 or in the franchise granted under it.
b. Implementation
Grantor shall implement the FCC Cable Regulations in the City with the existing Grantee and
any future franchisees. In implementing the Regulations, Grantor will ensure a reasonable
opportunity for consideration of the views of interested parties."
Section 2 - Effective Date and Posting of Ordinance
This Ordinance shall take effect and be in force 30 days after its adoption. The City Clerk of the City of
Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in
accordance with Section 36933 of the Government Code of the State of California.
PASSED, APPROVED AND ADOPTED this 28th day of February, 1994.
AYES: Councilmember Burton, Houston, Howard, Moffatt and Mayor Snyder
NOES: None
ABSENT: None
ATTES~,~lj '
- ~ity ~lerk-'
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FCC CABLE REGULATIONS
on
Rate Regulation and Customer Service Standards
Issued Pursuant to
CABLE TEI,EVISION CONSUMER PROTECTION
AND COMPETITION ACT OF 1992
FCC Cable Television Regulations Pursuant to 1992 Act
Subpart N --
§76.900
§76.901
(a)
(b)
Table .of Contents
Cable Rate Regulation ........................ Page
Temporary freeze of cable rates .................. Page
Definitions ................................. Page
Basic service ................................ Page
Cable progrannning service ..................... Page
Small system. ............................... Page
§76.905 Standards for identification of cable systems subject to
· effective competition ........................... Page 2
§76.906 Presumption of no effective competition ............ Page 4
§76,910 Franchising authority certification ................ Page 4
§76.911 Petition for reconsideration of certification ......... Page/r
§76.912 Joint certification ................. ........... Page~,
§76.913 Assumption of jurisdiction by the Commission ....... Page 7
§76.914 Revocation of certification ...................... Page 7
§76.91~ Change in status of cable operator. ............... Page 8
§76.916 Petition for recertification ...................... Page 9
§76.920 Composition of the basic tier. ................... Page 9
§76.921 Buy-through of other tiers prohibited ............. Page 10
§76.922 Rates for the basic service tier and cable programming
services tiers ............................... Page 10
(a) Basle and cable programmln~ service tier rates ..... Page 10
(b) Initial permitted per channel charge ............. Page Il
(c) Subsequent permitted per channel charge ......... Page 12
(d) Price cap requirements ....................... Page 12
(1) Inflation adjustments ..................... Page 12
~ (2) External costs .......................... Page 12
§76.923 Rates for equipment and installation used to receive the
- --- basic service tier ............... ~ ............ Page I4
(a) Scope .... - ................................ Page ~
(b) Unbundling ................................ Page
(c) Equipment basket ........................... Page 14
(d) Hourly service charge ........................ Page 14
(e) Installation charges .......................... Page 15
(f) Remote charges ................ ; ............ Page 15
(g) Other equipment charges ..................... Page 15
(la) Additional connection charges .................. Page 15
(i) Charges for equipment sold .................... Page 16
(j) Promotions ................................ Page 16
(k) Franchise fees .............................. Page 16
Page i
FCC CABLE REGULA~ONS
on
Rate Regulation and Customer Service Standards
Ismed Pursuant to
CABLE TELEVISION CONSUMER PROTECTION
AND COMPETITION ACT OF 1992
r.
FCC Cable Television Regulations Pursuant to 1992 Act
Table of Contents
Subpart N - Cable-i~e Regulation ........................ Page 1
{}76.900 Temporary freeze of cable rates .................. Page 1
§76.901 Definitions ................................. Page 1
(a) Basic service ................................ Page 1
(b) Cable pFOgl'2mmln~ service, .................... Page 1
.' (c) Small system. · . ............................ Page 2
{}76,905 Standards for identification of cable systems subject to
~. 'effectiv6 competftion ........................... Page 2
§76.906 Presumption of no effective competition ............ Page 4
§76,9].0 Franchising authority certification ................ Page 4
§76.9].1 Petition for reconsideration of certification ......... Page/~'
{}76.9~ Joint C~rtificatlon .................... Page[,
§76.913 Assumption ofjurisdictlon by the Commission ....... Page 7
§76.914 Revocation of certification ...................... Page 7
§76.915 Change in status of cable operator ................ Page 8
§76.916 Petition for recertification ...................... Page 9
§76.920 Composition of the basic tier. ................... Page 9
{}76.921 Buy-through of other tiers prohibited ............. Page 10
{}76.922 Ratqs for the basic service tier and cable prog~mming
services tiers ............................... Page 10
(a) Basic and cable programmlnl~ service tier rates ..... Page l0
· : · (b) Initial permitted per channel charge. ........ ' .... Page I1
(c) Subs.eciUbnt permitted per channd charge ......... Page 12
'- -(d) Price cap requirements .............. '; ....... Page 12
'·-:: -' "(1) Inflatiofi'adjustments ................... -. Page 12
· -"'-:"-' -- (2) External costs ......... · .... " Page 12
: --- {}76.923 Rates'for ~tulpment and installation used to receive the
'" .. 5, .. :-: hasle ~ervlce tier. ' ............ "- ......... '. ·Page 14
Unbund[ing .................. ' .............. Paget_
Equipment basket ........................... Page 14
Hourly service charge ........ , ............... Page 14
Installation charges ............ , ...... ' ....;.. Page 15
Remote charges .............. ;. ;.; .......... Page 15
(g) Other equipment charges ..................... Page 15
(h) Additional connection charges .................. Page 15
(i) Charges for equipment sold .................. '.. Page 16
(j) Promotions..; ............................. Page 16
(k) Franchise fees .............................. Page 16
As of August, 1993
Page i
FCC Cable Television Regulations Pursuant to 1992 Act
Page ii
§76.924 Cost accounting and cost allocation requirements .... Page 16
(a) Applicability ............................... Page 16
Co) Generally accepted accounting principles .......... Page 16
(e) Accounts required ........................... Page 17
(d) Accounting level ............................ Page 17
(e) Cost allocation requirements ................... Page 17
(0 Common costs .............................. Page 18
(g) Unrelated expenses and revenues ................ Page 18
(la) Part-time channels .......................... Page 18
{}76.925 Costs of franchise requirements ................. Page 18
§76.930 Initiation of review of basic cable service and equipment
rates ..................................... Page 19
§76.931 Notification of basic tier availability .............. Page 19
§76.932 Notification of proposed rate increase ............ Page 19
§76.933 Franchising authority review of basic cable rates and
equipment costs ............................. Page 19
§76.934 Small systems .............................. Page 20
§76.935 Participation of interested parties ............... Page 2l
{}76.936 Written decision ............................ Page 21
§76.937 Burden of prooL ............................ Page 21
§76.938 Proprietary information ....................... Page 22
§76.940 Prospective rate reduction ..................... Page 22
§76.941 Rate prescription ............................ Page 22
{}76.942 Refunds ....... . ............................ Page 22
{}76.943 Fines ..................................... Page 23
{}76.944 commission ~eview of franchising authority decisions on
rates for the basic'service tier and associated equipmenP, age 23
§76.945 ,plT~'ed~ for Commission on review of basic service
rate ........................... ,- .~. '. .~ ...... Page 24
{}76.950 complaints regarding cable programming service ratesPage 25
§76.951 Standard complaint form; other I~fling requirements.. Page 25
§76.952 Information to be provided by cable operator on monthly
subscriber bills ............................. Page 27
§76.953 Limitation on filing a complaint ................ Page 27
(a) complaint regarding a rate in effect on June 21, 1993. Page 27
Co) complaint reeo~g a rate increase ........ ' .... Page 27
§76.954 Initial review of complaint; minimum showing requirement;
'dismissal of defective complaints ................ Page 27
§76.955 Additional opportunity to f'de corrected complaint... Page 28
§76.956 Cable operator response ..... ' ................ Page 28
§76.957 Commission adjudication of the complaint ......... Page 30
§76.960 Prospective rate reductions .................... Page 30
FCC Cable TeleviSion Regulations Pursuant to 1992 Act
§76.961
§76.962
(a) Implementation ............................. Page
(b) Certification of compliance .................... Page
§76.963 Forfeiture ................................. Page
§76.964 Advance written notification of rate increases ....... Page
§76.970 Commercial leased access rates ................. Page
§76.971 Commercial leased access terms and conditions ..... Page
§76.975 Commercial leased access dispute resolution ....... Page
§76.977 Minority and educational programming used in lieu of
deregulated commercial leased access capacity ...... Page
§76.980
§76.981
§76.982
§76.983
§76.984
§76.985
Refunds ................................... Page 30
Implementation and certification of compliance ..... Page 31
31
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32
32
33
34
35
Charges for customer changes .................. Page 36
Negative option billing ........................ Page 37
Continuation of rate agreements ................ Pagq'~'
Discrimination ............................. Page',,,,'
Geographically uniform rate structure ............ Page 38
Subscriber bill itemization ..................... Page 38
Subpart - Consumer Protection and Customer Sentice ......... Page 40
§76.309 Customer Service Obligations .................. Page 40
Subpart L - Cable Television Access ...................... Page 45
§76.701 Leased Access Channels ...................... Page 45
§76.702 Public., Educational and Governmental Access ...... Page 46
As of August, 1993 Page iii
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FCC CaMe Television Regulations Pursuant to 1992 Act
Part 76 CABLE TELEVISION SERVICE
.... Subpart N - Cable Rate Reguhfion
§76.900 Temporary freeze o! cable rates.
...
(a) The average monthly subscn'ber bill for services provided by cable
operators subject to regulation under Section 623 of the Communications Act
shall not increase above the average monthly subscn'ber bill determined under
rates in effect on April 5, 1993, until November 15, 1993.
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(b) The average monthly subscriber bill shah be calculatedby determl.ing
a monthly billinoo cycle the sum of all billed monthly charges for all cad.
services subject to regulation under Sebtion 623 of the Communications Act
and dividing that sum by the number of subscribers receiving any of those
senfices. The average monthly subscriber bill determinedunder rates in effect
on April 5. 1993, shah be calculated based on customer charges for the most
recent monthly billing cycle ending prior to April 5. 1993.
{}76.901 Dermltions~ -- -'-
(a) Basic service. The basic service tier shaH, at a minimum, include aH signals
of domestic {elevision br6ad~ c~/st stations provided to any subscn"oer (except a
signal secondarily transmitted by satellite carrier beyond the local service area
of such station, regardless of how suCh signal is ultimately received by the
cable system) any public, educational, and governmental programming
required by the franchise to be carried on the basic tier, and any additional
video Programming Signals' a service added to the basic tier by the cable
operator. - . :..:- :~_~:a_ .... ~ .... (
'..: ~5:~:z -/>7
(b) Cable programmlng service. Cable programming service includes any video
programming provided over a cable system regardless of service tier, including
installation' or rental of equipment used for the' receipt of such video
'programming, 6iher'
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(1) Video programming carried on the basic sen, ice tier as defined in this
section;
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(2) Video programming offered on a pay-per-channelor pay-per-program
basis; or -
-Az of August, 1993
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FCC Cable Television Regulations Pursuant to 1992 Act
FCC Cable Television Regulations Pursuant to 1992 Act
(3) A combination of multiple channels of pay-per-channel or pay-per-
program video programming offered on a multiplexed or time-shifted
basis so long as the combined service:
(i) Consists of commonly-identifiedvideo'programmin~ and
(ii) is not bundled with any regulated tier of service.
.
(e) Small system. A small system is a cable television system -.._.
that serves fewer than_ 1,000 subscribers. The sexvice area of a small system
shall be determlnedby the number of subscribers that are served by a system's
principal headend, including any other headends or microwave receive sites
that are. technically integrated to the system's principal headend.
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{}76.905 standards for identification of cable systems subject to effective
competition.
(a) Only the rates of cable systems that are not subject to effective
competition may be regulated.
(b) A cable system is subject to effective competition when any one of thc
following conditions is met:
ar a
'--':'" wW r "'":' '
"subscn'be tO"the ~able ~n, ic~' Of a ~able sy~m. ~.:/~ ._
., : . .... : .... . -: . ?.,_,,,~.,. . .
.. :: :: '7 (0 .8c~ed. by: at lca~_ ~o unam,ated multicha~el ~deo
pro~ming ~tdbuto~ each of w~eh offe~ ~mparable
pro~ammln~ ~ at least 50 percent of the hou~hol& ~ the
~aflc~ area; a~d.:-~:: -_ .... .~' :..- -,7. :.~.:-,~ 2:- .....-.,;._,.~. -~,
.... :
. . -. -" ' .' .~ 7c :¥~':~"'Y~ ,:2 ., ;.- - ' g * .;:.:-:' :d ~" .... .'.:: ',A':~/~._~-C-:. ':~-'
... (fi) ~c nm~ of houseboy& ~bscfib~g W..mulOcha~el ~deo
prog~m~ing other ~an ~c' largest ::multicha~el
pro~amming ~butor ex~e& 15 p~rcent of the hou~hol&
~anc~e area ...... : .~.... :... : - --:/::::,:~ : ':..'"
.
(3) A multicha~el ~deo pro~ammi~ ~t~butor, operated by the
. .. ~ane~g au~o~W for that frane~ area, ogen ~deo programming to
at least 50 percent of the househol~ ~ ~e ~anc~ area. '"
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Page _2
(c) Each separately billed or billable customer will count as a household
subscribing to or being offered video programming services, with the exception
of multiple dwellln'~ buildings billed as a single customer. Individual units of
multiple dwelling buildings will count as separate households.
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(d) A multichannelvideo program distributor, for purposes of this section, is
an entity such as, but not limited to, a cable operator, a multichannel
multipoint distn'bution service, a direct broadcast satellite service, a television
receive.0nly s~a~!e'~ogr~n'distn'butor, a video dialtone service provider, or
'"a Satelllte"~st~r ~i~ite'nna'~eievision service provider that makes available for
purchase, by subscn'bers or customers, multiple channels of video
programming. _ - ;'.
(e) Service of a multichannel video programming distributor will be deemt
offered: .
..' .~ ..... · , ~.'~ , ..; .~.':. -- .~
"(1) When. t'hemultichannel video programming distn'butor is physically
able to deliver service to potential subscn'bers, with thc addition of no or
only minimal additional investment by the distributor, in order for an
individual subscriber to receive service; and
(2) When- rio regulatory,-tc~:hni'cai o[ Other imperilments to households
taking service exist, and potential subscribers in the franchi~ area are
-- reasonably awa~e that they may purchase the services of thc multichannel
.. - vide6-i{~5~ra~-d~istri-bUtor.· .... ...._
(f) For purposes of determining the number of households subscn'bing to the
'services ~f a~iui~{ch~d6~l 'video .programming distributor 'other than the
largest ~t~l~ich~ei~de6~p-~6gr'~lm m lng distributor, underp~ra~aph
Of this "~ctiori,'~th~!~iiniber 'of 'subscribers of all multichanael video
. programming distn'b~'t~'~:"th~t' 6fier' service to at least 50 percent of ti,'
households in the franchise area will be aggregated: . (
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-(g) 'In"6'~der t~ 0frei 6omi~able programrait~g within the meanin~' of
paragraph (b)(2)(i) of this section, a competing multichannel video
programming distributor must offer at leas.t 12 channels of video programming,
including at least one chaimel Of nonbroadcast service programming.
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-j As of August, 1993
~.~r.-~c>2-7-.~.~'~.'-.~.~?~.-'.2~? V.~'-:~ ?.'-~--'~' "-- ..... : ' *' ...... ~': ~ --' '"" .... -
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FCC Cable Television Regulations Pursuant to 1992 Act
§76.906 Presumption of no effective competition.
In the absence of a demonstration to the contrary, cable systems are presumed
not to be subject to effective competition.
{}76.910 Franchising authority certification.
(a) A franchising authority must be certified by the Commi~ion in order to
regulate the basic service tier and associated equipment of a cable system
within its jurisdiction.
(b) To be certified, the franchising authority must file with the Commission a
written certification that:
(1) The franch~ing authority will adopt and a~ter regulations with
respect to the rates for the basic service tier that are consistent with the
regulations prescribed by the Commi-~sion for regulation of the basic
service tier;,
(2) The franckising authority has the legal authority to adopt, and the
personnel to admlni_~ter, such regulations;
(3) Procedural laws and regulations applicable to rate regulation
proceedings by such authority provide a reasonable opportunity for
consideration of the views of interested parties; and
(4) The cable system in question is not subject to effective competition.
Unless a franchising authority has actual knowledge to the contrary, the
franchising authority may rely on the presumption in § 76.906 that the
cable operator is not subject to effective competition.
(c) The written certification described ia paragraph (b) of this section shall be
made by filing the FCC form designated for that purpose. The form must be
filed by
(1) Registered mail, return receipt requested, or
(2) Hand delivery to the Commission and a date-stamped copy obtained.
The date on the return receipt or on the date-stamped copy is the date
filed.
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FCC Cable Television Regulations Pursuant to 1992 Act
(d) A copy of the certification form described in paragraph (c) of this section
must be served on the cable operator before or on the same day it is fried with
the Commission.
(e) Unless the Comml.qsion notifies the franchising authority otherwise, the
certification will become effective 30 days after the date filed, provided,
however, that the franchising authority may not regulate the rates of a cable
system unless it:
(1) Adopts regulations:
(i) Consistent with the Commission's regulations governing the basic
tier, and (
(ii) Providing a reasonable opportunity for consideration of the
views of interested parties, within 120 days of the effective date of
certification; and
(2) Notifies the cable operator that the authority has been certified and
has adopte.d the regulations required by paragraph (e)(1) of this section.
(1) If the Commission denies a franchising authority's certification, the
Comm[qsion will notify the franchising authority of any revisions or
modifications necessary to obtain approval.
{}76.911 Petition for reconsideration of eertilieation.
(a) A cable operator (or other interested party) may challenge a franchising
authority's certification by filing a petition for reconsideration. The petiti/,~
may allege either of the following: ~
(1) The cable operator is not subject to rate regulation because effective
competition exists as defined in § 76.905, ;e~
(2) The franchising authority does not meet the certificafionstandards ~
forth in 47 U.$.C. § 543(a)(3).
(b) (1) The cable operator bears the burden of rebutting the presumption
that effective competition does not exist with evidence that effective
" competition, as defined in § 76.905, exists in the franchise area.
As of August, 1993 Page 5
FCC Cable Television Regulations Pursuant to 1992 Act
(2) For purposes of paragraph (a)(1) of this section, if the evidence
establhhing effective competition is not otherwise available cable
operators may request from a competitor information regarding the
competitor's reach and number of subscribers. A competitor must
respond to such request within 15 days. Such responses may be limited
to numerical totals.
(c) Stay of rate regulation.
(1) The f'fling of a petition for reconsideration pursuant to paragraph
(a)(1) of this section will automatically stay the imposition of rate
regulation pending the outcome of the reconsideration proceeding.
(2) A petitioner filing pursuant to paragraph (a)(2) of this section may
request a stay of rate regulation.
O) In any case in which a stay of rate regulation has been granted, if the
petition for reconsideration is denied, the cable operator may be required
to refund any rates or portion of rates above the permitted tier charge
which were collected from the date the petition was filed.
(d) The filing of a petition for reconsideration alleging the presence of
effective competition based on frivolous grounds is prohibited, and may be
subject to forfeitures.
(e) If the Commission upholds a challenge to a certification filed pursuant to
paragraph (a)(2) of this section, the Commission will notify the franchising
authority of the revisions necessary to secure approval and provide the
authority an opportunity to amend its certificationhowever necessary to secure
approval, provided, however, that pending approval of certification, the
Commission will assume jurisdiction over basic cable service rates in that
franchise area.
§76.912 Joint certification.
(a) Franchising authorities may apply for joint certification and may engage
in joint regulation, including but not limited to, joint hearings, data collection,
and ratemaking. Franchising authorities jointly certified to regulate their cable
system(s) may make independent rate decisions.
(b) Franchising authorities may apply for joint certification regardless of
whether the authorities are served by the same cable system or by different
Page 6
FCC Cable Television Regulations Pursuant to 1992 Act
cable systems and regardless of whether the rates in each franchising area are
uniform.
§76.913 Assumption of jurisdiction by the Commission.
(a) Upon denial or revocation of the franchising authority's certification, the
Commission will regulate rates for cable services and associated equipment of
a cable system not subject to effective competition, as defined in § 76.905, in
a franchise area. Such regulation by the Commission will continue until the
franchising authority has obtained certification or recertificafion.
(b) A franchising authority unable to meet certification standards may pefiti(
the Commission to regulate the rates for basic cable service and associate__
equipment of its franchisee when:
(1) The franchising authority lacks the resources to administer rate
regulation; provided, however, that the request must be accompanied by
a demonstration that franchise fees are insufficient to fund any additional
activities required to administer basic service rate regulation; or
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(2) The franchising authority lacks the legal authority to regulate basic
service rates; provided, however, that the authority must submit with its
request a statement detailing the nature of the legal infirmity.
(c) The Commission will regulate basic service rates purmant to this Section
until the franchising authority qualifies to exercise jurisdiction pursuant to §
76.916.
§76.914 Revocation of certification.
(a) A franchising authority's certification shall be revoked fi:
(1) After the franchising authority has been given a reasonable
opportunity to comment, it is determined that state and local laws and
regulations do not conform to the Commission's rate regulations
governing cable rates, §§ 76.922 through 76.925.
(2) After being given an opportunity to cure the defect, a franchising
authority fails to fulfill one of the three conditions for certification, set
forth in 47 U.S.C. § 543(a)(3), or any of the provisions of §§ 76.910('o).
As of August, 1993 Page 7
FCC Cable Television Regulations Pursuant to 1992 Act
(b) In all cases of revocation, the Commission will assume jurisdiction over
basic service rates until an authority becomes recertified. The Commissionwii1
also notify the franchising authority regarding the corrective action that may
be taken.
(c) A petition for revocation must be served on the franchising authority and
contain a statement that service was made. The franchising authority may file
au opposition within 30 days of filing of the petition. A reply may be filed
within 15 days of _filing of the opposition.
(d) While a petition for revocation is pending, and absent grant of a stay, the
franchising authority may continue to regulate the basic service rates of its
franchisees.
{}76.915 Change in status of cable operator.
(a) A cable operator that becomes subject to effective competition, may
petition the franchising authority for change in its regulatory status. The
operator bears the burden of proving the existence of effective competition.
Oppositions may be filed within 15 days of public notice of the filing of the
petition, and must be served on the operator. Cable operators may reply
within 7 days of filing of oppositions.
(b) Franchising authority decisions on petitions for change in status must be
made within 30 days after the pleading cycle set forth in paragraph (a) of this
section closes. Franchising authorities must notify the Commi~ion within ten
days of any decision changing status. Unless the Commi.qsion receives an
opposition to such change in status, the decision will become final 30 days
after adoption by the franchising authority.
(c) After an initial determination of the franchising authority that effective
competition exists becomes final, the franchising authority will then cease
regulating basic cable service rates, and the Commission's regulatory authority
over cable programming services for the system in the franchise area will also
cease.
(d) A cable operator and a franchising authority may submit a joint statement
that effective competition e~ists. The joint statement must stipulate which of
the three statutory tests for effective competition has been met and explain
how the test has been satisfied. These joint statements will become final
decisions within 30 days of filing with the Commission, unless challenged by
an interested party.
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FCC Cable Television Regulations Pursuant to 1992 Act
(e) Cable operators denied a change in status by a franchising authority may
seek review of that finding at the Commission by filing a petition for
revocation.
(f) In cases where a local franchising authority has not been certified to
regulate rates, a cable operator may petition the Commission for change in its
regulatory status. The time periods in paragraph (a) of this section will apply
to oppositions and replies concerning these' petitions.
{}76.916 Petition for recertification.
(a) After its request for certification has been denied or its exis(
certification has been revoked, a franchising authority wishing to assm,~
jurisdiction to regulate basic service and associated equipment rates must f'fie
a "Petition for Recertification" accompanied by a copy of the earlier decision
denying or revoking certification.
(b) The petition must:
(1) Mee~t-the requkements set forth in 47 U.S.C. § 543(a)(3);
(2) State that the cable system is not subject to effective competition; and
(3) Contain a clear showing, supported by either, objectively verifiable
data such as a state statute, or by affidavit, that the reasons for the
earlier denial or revocation no longer pertain.
(c) The petition must be served on the cable operator and on any interested
party that participated in the proceeding denying or revoking the ofigi?~l
certification.(..
(d) Oppositions may be filed within 15 days after the petition is filed, and
must be served on the petitioner. Replies may be filed within seven days of
filing of oppositions, and must be served on the opposing party(ies).
{}76.920 Composition of the basic tier.
Every subscriber of a cable system must subscribe to the basic tier in order to
.. subscribe to any other tier of video programming or to purchase any other
video programming.
As of August, 1993 Page 9
FCC Cable Television Regulations Pursuant to 1992 Act
§76.921 Buy-through of other tiers prohibited.
(a) No cable system operator may require the subscription to any tier other
than the basic service tier as a condition of subscription to video programming
offered on a per channel or per program charge basis. A cable operator may,
however, require the subscription to one or more tiers of cable programming
services as a condition of access to one or more tiers of cable programming
services.
(b) A cable operator may not discriminate between subscribers to the basic
service tier and other subscribers with regard to the rates charged for video
programming offered on a per-channel or per-program charge basis.
(c) Prior to October 5, 2002, the provisions of paragraph (a) of this section
shah not apply to any cable system that lacks the capacity to offer basic
service and all programming distn"outed on a per channel or per program basis
without also providing other intermediate tiers of service:
(1) By controlling subscriber access to nonbasic channels of service
through addressable equipment electronically controlled from a central
control point or
(2) Through the installation, nonin.~tallation, or removal of frequency
filters (traps) at the premises of subscribers without other alteration in
system configuration or design and without causing degradation in the
technical quality of service provided.
(d) Any retiering of channels or services that is not undertaken in order to
accomplish legitimate regulatory, technical, or customer service objectives and
that is intended to frustrate or has the effect of frustrating compliance with
paragraphs (a) through (c) of this section is prohibited.
§76.922 Rates for the basic service tier and cable programming services tiers.
(a) Basic and cable programmi~ng service tier rates. Basic service tier and
cable programming service rates shall be subject to regulation by the
Commission and by state and local authorities, as is appropriate, in order to
assure that they are in compliance with the rcquiremenB of 47 U.S.C. 543.
Rates that are demonstrated,in accordancewith these rules, not to exceed the
"Initial Permitted Per Channel Charge" or the "Subsequent Permitted Per
Channel Charge" as described below, or the equipment charges as specified in
§ 76.923, will be accepted as in compliance. The maximum monthly charge per
Page I0
FCC Cable Television Regulations Pursuant to 1992 Act
subscriber for a tier of regulated programming services offered by a cable
system shah consist of a permitted per channel charge multiplied by the
number of channels on the tier, plus a charge for franchise fees. The maximum
monthly charges for regulated programming services shah not include any
charges for equipment or installations. Charges for equipmentand installations
are to be calculated separately pursuant to § 76.923 of these rules.
(b) Initial permitted per chaonel charge.
(1) The permitted per channel charge on the initial date of regulation
shah be, at the election of the cable operator, either:. (1) a charge
determined pursuant to a cost-of-service proceeding; or (2) the charge
specified in subsection (i), (ii), or (iii) below, as applicable;
(
(i) If the operator's per channel charge for regulated programming
services and equipment in effect on the date of initial regulation is
equal to or below the benchmark per channel charge, as adjusted
forward for inflation from September 30, 1992 to the date of initial
regulation, then the permitted per channel charge shall be the per
channel charge in effect on the date of initial regulation adjusted for
equ~ip.ment.
(ii) If (1) the operator's per channel charge for regulated
programming services and equipment in effect on the date of initial
regulation is above the benchmark per channel charge, as adjusted
forward for inflation from September 30, 1992 to the date of initial
regulation, and (2) the operator's per channel charge for regulated
programming services and equipment in effect on September 30,
1992 was above the benchmark per channel charge, then the
permitted per channel charge is nine-tenths of the per channel
charge in effect on September 30, 1992, but no lower than/"--
benchmark per channel charge, additionally adjusted for
from September 30, 1992 to the initial date of regulation, for
equipment, and for any changes in the number of channels offered
on aH regulated tiers.
(ih') If (1) the operator's per channel charge for regulated
programming services and equipment in effect on the date of initial
regulation is above the benchmark per channel charge, as adjusted
forward for inflation from September 30, 1992 until the initial date
of regulation, and (2) the operator's per channel charge for
regulated programming services and equipment in effect on
September 30, 1992 was below the benchmark per channel charge,
As of August, 1993
Page 11
FCC Cable Television Regulations Pursuant to 1992 Act
then the permitted per channel charge is the benchmark rate per
channel adjusted for inflation from September30, 1992 to the initial
date of regulation, for equipment, and for any changes in the
number of channels offered on all regulated tiers.
(2) For purposes of this section, the initial date of regulation for thc basic
service tier shall be the date on which local notice is given pursuant to §
76.910 of our rules that the provision of thc basic service tier is subject
to regulation. For a cable programmin~ services tier, the initial date of
regulation shall be thc first date on which a complaint on the appropriate
form is filed with the Commission concerning rates charged for thc cable
programming services tier.
(3) For purposes of this section, rates in effect on the initial date of
regulation or on September 30, 1992 shall be thc rates charged to
subscribers for service received on that date.
(c) Subsequent permitted per channel charge. After the initial date of
regulation, the permitted per channel charge for regulated programming
services shah be, at the election of the cable operator, either:. (1) a per
channel rate determined pursuant to a cost-of service showing, or (2) the prior
permitted per channel charge previously approved by a regulatory authority,
adjusted for inflation and exteraal costs in accordance with the price cap
requirements set forth in subsection (d) below.
(d) Price cap requirements.
(1) Inflation adjustments. Permitted per channel charges for regulated
programming services may be adjusted periodically on account of
inflation. Adjustments to permitted per channel charges on account of
inflation shah be based on changes ia the Gross National Product Price
Index published by the Bureau of EconomicAnalysis of the United States
Department of Commerce.
(2) External costs. Permitted per channel charges for regulated
programming services may also be adjusted for changes in external costs
measured on a per channel per subscriber basis. To the extent external
cost increases are greater or less than the GNPPI for the relevant period
the per-channel charge will be adjusted accordingly. Per channel charges
may not be increased if external costs increase at a rate less than
inflation. Permitted per channel charges also shah be decreased on
account of external costs to the extent such costs decrease fxom previous
levels.
Page 12
FCC Cable Television Regulations Pursuant to 1992 Act
(i) Categories. External Costs shall consist of costs ia the following
categories: (1) state and local taxes applicable to provision of cable
television service; (2) franchise fees; (3) costs of complying with
franchise requirements, includin_g costs of providing public,
educational, and governmental access channels as required by the
franchising authority', (4) retransmission consent fees; and (5)
programming costs.
(ii) The permitted per channel charge for a tier of regulated
programming services shah be adjusted on account of programming
costs and retransmission consent fees only for programming or
broadcast signals offered on that tier. (i
(iii) The permittedper channel charge shall not be adjusted for costs
of retransmission consent fees or changes in those fees incurred
prior to October 6, 1994.
(iv) The starting date for adjustments on account of external costs
for a tier of regulated programming service shall be the initial date
of i'e~ulation of the tier or 180 days from the effective date of these
rules, ff the initial date of regulation occurs on or after 180 days
from the effective date of these rules.
(v) Changes in franchise fees shah not result in an adjustment to
permitted per channel charges, but rather shah be calculated
separately as part of the maximum monthly charge per subscriber for
a tier of regulated programming service.
(vi) Adjustments to permitted per channel charges on accou-" of
increases in costs of programming obtained from aff~ d
. programmers, as defined in § 76.901 of the rules shall be the lesser
of actual increases or the previous permitted rate level increased by
the amount of inflation.
(vii) Adjustments to permitted per channel charges on account of
increases in costs of programming shah be further adjusted to reflect
any revenues received by the operator from the programmer.
As of August, 1993
Page 13
FCC Cable Television Regulations Pursuant to 1992 Act
§76.923 Rates for equipment and installation used to receive the basic service
tier.
(a) Scope. The equipment regulated under this section consists of all
equipment in a subscriber's home that is used to receive the basic sereice tier,
regardless of whether such equipment is additionally used to receive other tiers
of regulated programming service and/or unregulated service. Such equipment
shah include, but is not limited to:
(1) converter boxes;
(2) remote control units;
(3) connections for additional television receivers; and
(4) other cable home wiring.
Subscriber charges for such equipment shah not exceed charges based on
actual costs in accordance with the requirements set forth below.
(b) Unbundling. A cable operator shall establish rates for remote control units,
converter boxes, other customer equipment, installation, and additional
connections separate from rates for basic tier service. In addition, the rates for
such equipment and installations shall be unbundled one from the other.
(e) Equipment basket. A cable operator shall establish an Equipment Basket,
which will include aH costs associatedwith providing customer equipment and
installation under this section.
(1) Equipment Basket costs shall be limited to the direct and indirect
material and labor costs of providing, leasing, installing, repairing, and
servicing customer equipment, as determined, in accordaneewith the cost
accounting and cost allocation requirements of § 76.924. The Equipment
Basket shall not include general admlnl.qrative overheadincluding general
marketing expenses. The Equipment Basket shall include a reasonable
profit.
(d) Hourly service charge. A cable operator shall establish charges for
equipment and installation using the Hourly Service Charge (HSC)
methodology. The HSC shah equal the operator's annual Equipment Basket
costs, excluding the purchase cost of customer equipment, divided by the total
person hours involved in installing, repairing, and servicing customer
equipment during the same period. The HSC is calculated according to the
following formula:
·
.
. .
Page 14
FCC Cable Television Regulations Pursuant to 1992 Act
HSC =
EB - CE
H
Where, EB = annual Equipment Basket Costs; CE = annual purchase cost of
all customer equipment; and H = person hours involved in installing and
repairing equipment per year. The purchase cost of customer equipment shah
include the cable operator's invoice price plus all other costs incurred with
respect to the equipment until the time it is provided to the customer.
(e) Installation charges. Installation charges shall be either:
(i) The HSC multiplied by the actual time spent on each individual
installation; or
(ii) The HSC multiplied by the average time spent on a specific type of
installation.
(f) Remote charges. Monthly charges for rental of a remote control unit shall
consist of the average annual unit purchase cost of the type of remote leased,
including acquisition price and incidental costs such as sales tax, financing and
storage up to the time it is provided to the customer, added to the product of
the HSC times the average number of hours annually repairing or servicing a
remote, divided by 12 to determine the monthly lease rate for a remote
according to the. following formula:
Monthly Charge =
UCE + (HSC x HR)
12
Where, HR = average hours repair per year, and UCE = averagemnnual unit
cost of remote. Separate charges shall be established for each significantly
different type of remote control unit.
(g) Other equipment charges. The monthly charges for rental of converter
boxes and other-customer equipment shall be calculated in the same manner
as for remote control units. Separate charges shah be established for each
significantly different type of converter box and each significantly different
type of other customer equipment.
(h) Additional connection charges. The costs of installation and monthly use
of additional connections shah be recovered as charges associated with the
installation and equipment cost categories, and at rate levels determined by
As of August, 1993 Page 15
FCC Cable Television Regulations Pursuant to 1992 Act
the actual cost methodology presented in the foregoing subsections (e), (f),
and (g). An operator may recover additional programming costs and the costs
of signal boosters on the customers premises, if any, associated with the
additional connection as a separate monthly' unbundled charge for additional
connections.
(i) Charges for equipment sold. A cable operator may sell customer premises
equipment to a subscriber. The equipment price shall recover the operator's
cost of the equipment, including costs associated with storing and preparing
the equipment for sale up to the time it is sold to the customer plus a
reasonable profit. An operator may sell service contracts for the maintenance
and repair of equipment sold to subscribers. The charge for a service contract
shall be the HSC times the estimated average number of hours for
maintenance and repair over the life of the equipment.
FCC CaMe Television Regulations Pursuant to 1992 Act
(e) Accounts required. Cable operators shall maintain accounts in a manner
that will enable identification of appropriate costs and application of the
Commission's cost assignment and allocation procedures, to cost categories
necessary for rate adjustments due to changes in externalcosts and for cost-of-
service showings. Such categories shall be sufficiently detailed and supported
to permit verification and audit against the company's accounting records.
(d) Accounting level. Except to the extent indicated below, cable operators
shall aggregate expenses and revenues at, either the franchise, system, regional,
or company level in a manner consistent with practices of the operator as of
April 31'1992. However, in all events cable operators shall identify at the
franchise level their costs of franchise requirements, franchise fees, local taxes,
and local programming.
fi) Promotions. A cable operator may offer equipment or installation at
charges below those determinedunder subsections (e) - (g), above, as long as
those offerings are reasonable in scope in relation to the operator's overall
offerings in the Equipment Basket and not unreasonably discriminatory.
Operators may not recover the cost of a promotional offering by increasing
charges for other Equipment Basket elements, or by increasing programming
service rates above the maximum monthly charge per subscriber prescribed by
these rules. As part of a general cost-of-service showing, an operator may
include the cost of promotions in its general system overhead costs.
(k) Franchise fees. Equipment charges may include a properly allocated
portion of franchise fees.
§76.924 Cost accounting and cost allocation requirements.
(a) Applicability. The requirements of this section are applicable to cable
operators for which the basic service tier is regulated by local franchising
authorities or the Commission, or, with respect to a cable programming
services tier, for which a complaint has been filed with the Commission. The
requirements of this section are applicable for purposes of rate adjustments
on account of extern'al costs and for cost-of-service showings.
.
(b) Generally accepted accounting principles. Cable operators shah maintain
their accounts in accordance with generally accepted accounting principles,
except as otherwise directed by the Commission.
(e) Cost allocation requirements.
(1) For purposes of establishing expenses at the franchise level, cable
operators shall allocate expenses and revenues aggregated at higher levels
to the franeMse level based on the ratio of the total number of
subscribers served at the franchise level to the total number of subscribers
served at the highe~ Ievel.
(2) Except to the extent indicated below, all categories of costs allocated
to, or identified at, the franchise level shall be allocated to the basic
service tier based on the ratio of channels in the basic tier to the total
number of channels offered in the franchise area, including nonregulated
and leased commercial access channels. These costs shall be allocated to
each tier of cable programming sereices based on the ratio of channels
in that tier to the total number of channels offered in the franchise area.
(3) Costs of programming and retransmission consent fees, however, shah
be allocated only to the tier on which the programming or broadcast
signal at issue is offered.
(4)'Costs of franchise fees shall be allocated among equipment and
installations, program service tiers and subsen'bers in a manner that is
most consistent with the methodolog~ of assessment of franchise fees by
local authorities.
(5) Costs of public, educational, and governmental access channels
carried on the basic tier shall be directly assigned to the basic tier where
pos~ible.
Page 16
As of August, 1993 Page 17
FCC Cable Television Regulations Pursuant to 1992 Act
(l) Common costs. Expenses which cannot be assigned to any single expense
or service category shall be described as common costs. Common costs shall
be allocated to expense categories as follows:
(1) Wherever possible, common costs are to be allocated to service cost
categories based on direct analysis of the origin of the costs themselves.
(2) When direct analysis is not possible, common costs shall, if poss~le,
be allocated to service cost categories based on an indirect, cost-causative
linkage to other costs directly assigned or allocated to the service cost
category.
(3) When neither direct nor indirect measures of cost allocation can be
found, common costs shall be allocated to each service cost category
based on thc ratio of all costs directly assigned and attributed to a service
cost category over total costs directly assignable and attributable.
(g) Unrelated expenses and revenues. Cable operators shall exclude from cost
categories used to, develop rates for the provision of regulated cable service,
equipment, and leased commercial access, any direct or indirect expenses and
revenues not related to the provision of such services. Common costs of
Providing regulated cable service, equipment, and leased commercial access
and unrelated activities shall be allocated between them in accordance with
subsection (f).
(h) Part-time channels. In situations where a single channel is divided on a
pan-time basis and is used to deliver service associated with different tiers or
with pay per channel or pay per view service, a reasonable and documented
allocation of that channel between services shall be requked along with the
associated revenues and costs.
{}76.925 Costs of franchise requirements.
(a) The costs of satisfying franchise requirements to support public,
educational, and governmental channels shall consist of the sum of: (1) all per
channel costs for the number of channels used to meet franchise requirements
for publie, educational, and governmental channels; (2) any direct costs of
meeting' such franchise requirements; and (3) a reasonable allocation of
general and admlnktrative overhead.
FCC Cable Television Regulations Pursuant to 1992 Act
(b) The costs of satisfying any other requirement under the franchise shall
consist of the direct and indirect costs including a reasonable allocation of
general and admlni.qtrative overhead.
{}76.930 Initiation of review of basic cable service and equipment rates.
(a) A cable operator shall file its schedule of rates for the basic service tier
and associated equipment with a franchising authority within 30 days of
receiving written notification from the franchising authority that the
franchising authority has been certified by the Commission to regulate rates
for the basic service tier.
{}76.931 Notification of basic tier availability.
A cable operator shall provide written notification to subscribers of the
availability of basic tier service by September 19, 1993, or three billing cycles
from June 21, 1993, and to new subscribers at the time of installation. This
notification shall include the following information:
. ·
(1) That basic tier service is available;
(2) The cost per month for basic tier service;
(3) A list of all services included ia the basic service tier.
{}76.932 Notification of proposed rate increase.
A cable operator shall provide written notice to a subscriber of any increase
in the price to be charged for the basic service tier or associated equipment
at least 30 days before any proposed increase is effective. The notice should
include the name and address of the local franchising authority.
{}76.933 Franchising authority review of basic cable rates and equipment costs.
(a) After a cable operator has submitted for review its existing rates for the
basic service tier and associated equipment costs or a proposed increase in
these rates (including increases in the baseline channel change that results
from reductions in the number of channels in a tier), the existing rates will
remain in effect or the proposed rates will become effective after 30 days from
Page 18 As of August, 1993 Page 19
FCC Cable Television P, egulations Pursuant to 1.992 Act
the date of submission; provided, however, that the franchising authority may
ton this 30-day deadline for an additional time by issuing a brief written order
as described in paragraph (b) within 30 days of the rate submission explaining
that it needs additional time to review the rates.
(b) If the franchising authority is unable to determine, based upon the material
submitted by the cable operator, that the existing or proposed rates are within~
the Commission's permitted basic service tier charge or actual cost of
equipment as defined in §§ 76.922 and 76.923, or if a cable operator has
submitted a cost-of-service showing purmant to §§ 76.937(c) and 76.924,
seeking to justify a rate above the Comm[qsiou's basic sendce tier charge as
defined in §§ 76.922 and 76.923, the franchising authority may toll the 30-day
deadline in paragraph (a) of this section to request and/or consider additional
information or to consider the comments from interested parties as follows:
(1) For an additional 90 days in cases not involving cost-of service
showings; or
(2) For an additional 150 days in cases involving cost-of-service showings.
(c) If a franchising authority has availed itself of the additional 90 or 150 d~Ys
permitted in paragraph (b) of this section, and has taken no action within
these additional time periods, then the proposed rates will go into effect at the
end of the 90 or 150 day periods, or existing rates will remain in effect at such
times subject to refunds if the franchising authority subsequemly issues a
written decision disapproving any portion of such rates,provided, however, that
in order to order refunds, a franchising authority must have issued a brief
written order to the cable operator by the end of the 90 or 150May period
permitted in paragraph Co) of this section directing the operator to keep an
accurate account of all amounts received by reason of the rate in issue and on
whose behalf such amounts were paid.
{}76.934 Small systems.
A franchising authority that has been certified, pursuant to § 76.910 to
regulate rates for basic service and associated equipment may permit a small
system as defined in section 76.901 to certify that the small system's rates for
basic service and associated equipment comply with § 76.922, the
Commission's substantive rate regulations.
Page 20
FCC Cable Television Regulations Pursuant to 1992 Act
{}76.935 Participation of interested parties.
In order to regulate basic tier rates or associated equipment costs, a
franchising authority must have procedural laws or regulations applicable to
rate regulation proceedings that provide a reasonable opportunity for
consideration of the views of interested parties. Such rules must take into
account the 30, 120, or 180-day time periods that franchising authorities have
to review rates under § 76.933.
§76.936 Written decision.
(a) A franchising authority must issue a written decision in a ratemaking
proceeding whenever it disapproves an initial rate for the basic service tier or
associated equipment in whole or in part, disapproves a request for a rate
increase in whole or in part, or approves a request for an increase in whole or
in part over the objections of interested parties. A franchising authority is not
required to issue a written decision that approves an unopposed existing or
proposed rate for the basic service tier or associated equipment.
(b) Public notice must 1Se given of any written decision required in paragraph
(a), including releasing the text of any written decision to the public.
{}76.937 Burden of proof.
(a) A cable operator has the burden of proving that its existing or proposed
rates for basic service and associated equipment comply with 47 U.S.C. § 543,
and {}§ 76.922 and 76.923.
(b) For an existing or a proposed rate for basic tier service or associated
equipment that is within the permitted tier charge and actual cost of
equipment as set forth in §§ 76.922 and 76.923, the cable operator must submit
the appropriate FCC form.
(c) For an existing or a proposed rate for basic tier service that exceeds the
permitted tier charge as set forth in §§ 76.922 and 76.923, the cable operator
must submit a cost-of-service showing to justify the proposed rate.
As of August, 1993 Page 21
FCC Cable Television Regulations Pursuant to 1992 Act
{}76.938 Proprietary information.
A franchising authority may require the production of proprietary information
to make a rate determination and in such cases must apply procedures
analogous to those set forth in § 0.459 regarding requests for confidentiality.
§76.940 Prospective rate reduction.
A franchising authority may order a cable operator to implement a reduction
in basic service tier or associated equipment rates where necessary to bring
rates into compliance with the standards set forth in §§ 76.922 and 76.923.
{}76.941 Rate prescription.
A franchising authority may prescribe a reasonable rate for the basic service
tier or associated equipment after it determines that a proposed rate is
unreasonable.
§76.942 Refunds.
(a) A franchising authority may order a cable operator to refund to subscribers
that portion of previously paid rates determined to be in excess of the
permitted tier charge or above the actual cost of equipment, unless the
operator has submitted a cost-of-service showing which justifies the rate
charged as reasonable. Before ordering a cable operator to refund previously
paid rates to subscribers, a franchl.qing authority must give the operator notice
and opportunity to comment.
(b) An operator's liability for refunds is limited to a one-year period, except
that an operator that fails to comply with a valid rate order issued by a
franchising authority or the Commission shall be liable for refunds
commencing from the effective date of such order until such time as it
complies with such order.
(c) The refund period shall run as follows:
(1) from the date the operator implements a prospective rate reduction
back in time to June 21, 1993, or one year, whichever is shorter.
Page 22
FCC Cable Television Regulations Pursuant to 1992 Act
(2) From the date a franchising authority issues an accounting order
pursuant to § 76.933(c), and ending on the date the operator implements
a prospective rate reduction ordered by a franchising authority or one
year, whichever is shorter.
(d) The cable operator, in its discretion, may implement a refund in the
following manner:.
(1) By returning overcharges to those subscribers who actually paid the
overcharges, either through direct payment or as a specifically identified
credit to those subscribers' bills; or
(2) By means of a prospective percentage reduction in the rates for the
basic service tier or associated equipment to cover the cumulative
overcharge. This shall be reflected as a specifically identified, one-time
credit on prospective bills to the class of subscribers that currently
subscribe to the cable system.
(e) Refunds shall include interest computed at applicable rates published by
the Internal Revenue Service for tax refunds and additional tax payments.
§76.943 Fines.
(a) A franchising authority may impose fines or monetary forfeitures on a
cable operator that does not comply with a rate decision or refund order
directed specifically at the cable operator, provided the franchising authority
has such power under state or local laws.
(b) A cable operator shall not be subject to forfeiture because its rate for basic
service or equipment is determined to be unreasonable.
{}76.944 Commission review of francMsing authority decisions on rates for the
basic service tier and associated equipment.
(a) The Commission shall be the sole forum for appeals of decisions by
franchising authorities on rates for the basic service tier or associated
equipment involving whether or not a franchising authority has acted
consistently with the Cable Act or §§ 76.922 and 76.923. Appeals of
ratemaking decisions by franchising authorities that do not depend upon
determining whether a franchising authority has acted consistently with the
Cable Act or §§ 76.922 and 76.923, may be heard in state or local courts.
As of August, 1993 Page 23
FCC Cable Television Regulations Pursuant to 199~ Act
(b) Any participant at the franchising authority level in a ratemaking
proceeding may file an appeal of the franchising authority's decision with the
Commission within 30 days of release of the text of the franchising authority's
decision as computed under § 1.4(b) of this chapter. Oppositions may be filed
within 15 days after the appeal is filed, and must be served on the party(les)
appealing the rate decision. Replies may be filed 7 days after the last day for
oppositions and shall be served on the parties to the proceeding.
§76.945 Procedures for Commission on review of basic service rate.
(a) Upon assumption of rate regulation authority, the Commission will notify
the cable operator and require the cable operator to file its basic rate schedule
with the Commission within $0 days, with a copy to the local franchising
authority.
(b) Basic service and equipment rate schedule filings for existing rates or
proposed rate increases (including increases in the baseline channel change
that results from reductions in the number of channels in a tier) must use the
appropriate FCC forms. Cable operators with existing or proposed rates above
the permitted tier rate must submit a cost-of-sendce showing sufficient to
support a finding that the rates axe reasonable.
(c) Filings proposing annual adjustments or rates within the rate regulation
standards in §§ 76.922 and 76.923, must be made 30 days prior to the
proposed effective date and can become effective on the proposed effective
date unless the Commi~ion issues an order defening the effective date'or
denying the rate proposal. Petitions opposing such filings must be filed within
15 days of public notice of the filing by the cable operator and be
accompaniedby a certificate that service was, made on the cable operator and
the local franchising authority. The cable operator may file an opposition
within five days of _filing of the petition, certifying to service on both the
petitioner and the local franchising authority.
(d) Filings proposing a rate not within the rate regulation Standards of §§
76.922 and 76.923, must be made 90 days before the requested effective date.
Petitions opposing such filings must be ~ed within 30 days of public notice of
the filing, and be accompanied by a certificate that service was made on the
cable operator and the local franchising authority. The cable operator may file
an opposition within 10 days of the filing of the petition, and certifying that
service was made on the petitioner and the local franchising authority.
FCC Cable Television Regulations Pursuant to 1992 Act
§76.950 Complaints regarding cable programming service rates.
Any subscriber, franchising authority, or other relevant state or local
government entity may file with the Comrai~sion a complaint challenging the
reasonableness,of a cable operator's rate for cable programming service, or the
reasonableness of a cable operator's charges for installation or rental of
equipment used for the receipt of cable programming service.
§76.951 Standard complaint form; other filing requirements.
(a) Any complaint regarding a cable operator's rate for cable programming
service or associated equipment must be filed using standard complaint form,
FCC 329. The cable operator must provide a copy of the standard complaint
form to any subscriber upon request.
(b) The following information must be provided on the standard complaint
form:
(1) The compla'mant's name, mailing address, and daytime telephone
number;, ' '
(2) The name, mailing address, and FCC communityunit identifier of the
relevant cable operator (Note: Purmant to § 76.952, the cable operator
must provide its FCC community unit identifier on monthly bills to
subscribers);
(3) The name and address of the relevant franchising authority (Note:
pursuant to § 76.952, the cable operator must provide this information on
monthly bills to subscribers);
(4) An indication whether the complainant is challenging the
reasonableness of:
(i) A rate concerning cable programming service or associated
equipment in effect on June 21, 1993; or
'(ii) A rate increase for cable programming service or associated
equipment;
(5) For subscriber complaints regarding a rate increase, the date the
complainant first received a bill from the cable operator reflecting the
increased rate;
Page 24 As of August, 1993 Page 25
'FCC Cable Television Regulations Pursuant to 1992 Act
FCC Cable Television Regulations Pursuant to 1.992 Act
(6) A description of the cable programming service or associated -
equipment involved and, if applicable, how the service or associated
equipment has changed;
(7) The current rate for the cable programming service or associated
equipment at issue and, if the complainant is challenging the
reasonableness of a rate increase, the most recent rate for the service or
associated equipment immediately prior to the rate increase;
(B) An indication whether the complainant is filing:
{}76.952 Information to be provided by cable operator on monthly subscriber
bills.
All cable operators must provide the following information to subscribers on
monthly bills:
(a) The name and mailing address of the relevant franchising authori~, and
(b) The FCC community unit identifier for the cable system.
(i) a complaint regarding this specific rate for the first time; or
{}76.953 Limitation on filing a complaint.
(ii) a correctedcomplaint regarding this specific rate to cure a defect
in a prior complaint that was dismissed without prejudice;
(9) If the complainant is filing a correctedcomplaint, an indication of the
date thc complainant ~ed the-prior complaint and the date the
complainant received notification from the Commission that the prior
complaint was defective;
. ~
(10) A certification that a copy of the complaint, including all
attachments, is being served contemporaneouslyvia first class mail on the
cable operator and, if the complainant is a subscriber, on the relevant
.
:
franchising authority;
(11) An allegation that the rate in question is unreasonable because it
. . .
violates the Commission's rate regulations; and
. . .
..
(12) A certification that, to the best of the complainant's knowledge, the
information provided on the form is true and correct.
_
(c) The complainant must attach to the standard complaint form a copy of the
most recent bill reflecting the disputed rate or rate increase.
(d) A complaining subscriber may, but is not required to, attach to the
standard complaint form a statement from the relevant franchising authority
presenting its views on the reasonableness of the rate in question.
(a) Complaint regarding a rate in effect on June 21, 1993. Notwithstanding
paragraph (b) of this section, a complaint regarding a rate for cable
programming service or associated equipment ia effect on June 21, 1993 must
be filed by December 20, 1993.
(b) Complaint recording a rate increase. Except as provided in paragraph (a)
of this section, a complaint alleging an unreasonable rate for cable
programming service or associated equipment may be filed against a cable
operator only in the event of a rate increase. A complaint regardi~ a rate
increase for cable programming service or associated equipment must be filed
with the Commission within 45 days from the date the complainant receives
a bill from the cable operator that reflects the increased rate.
(c) Late-filed complaints will be dismissed with prejudice.
§76.954 Initial review of complaint; minimum showing requirement; dismissal
of defective complaints.
(a) The Commission will conduct an initial review of a complaint to determine
ff it meets the minimum showing required to allow the complaint to go
forward. The minimum showing shall be satisfied if the complaint is filed using
the standard complaint form described ia § 76.951 and includes all information
and attachments required by that form. A complainant will not be required,
as part of the minimum showing, to provide the underlying information and
calculations necessary to judge the cable programming service rate in question
against the Commission's rate standards.
(b) A."complaint that does not meet the minimum showing requirement
described in paragraph (a) of this section will be considered defective. A
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As of August, 1993 Page 27
FCC Cable Television Regulations Pursuant to 1992 Act
defective complaint will be dismissed without prejudice to filing a corrected -
complaint as provided by § 76.955. The Commission will notify the
complainant by mail of the dismissal. The filing of a complaint on the
applicable form, but which is other~vise defective,will toll the limitation period
established by § 76.953.
§76.955 Additional opportunity to fde corrected complaint.
(a) If the Commission dismisses an initial complaint without prejudice
pursuant to § 76.954, the complainant shall have one additional opportunity
to cure the defect and file a corrected complaint.
(b) For a complaint filed on the applicable form but is otherwise defective, the
complainant must cure the defect and file a corrected complaint with the
Commission within 30 days from the date of the Commi~ion's dismissal
notice. Failure to cure the defect and file a corrected complaint within this
time period will result in dismissal of the complaint with prejudice.
§76.956 Cable operator response.
(a) Unless the Commission notifies a cable operator to thc contrary, the cable
operator must file with the Commission a response to a complaint filed on the
applicable form within 30 days of the date of service of the complaint. The
response shall indicate when service recurred. Service by mail is complete
upon mailing. See § 1.47 (f). The response shall include the information
required by the appropriate FCC form. The cable operator must serve its
response on the complainant (and, ff the complainant is a subscriber, the
relevant franchising authority) via first class mail. '-
(b) The burden shall be on the cable operator to prove that the service rate
or equipment charge in question is not unreasonable. The cable operator may
carry its burden in the following manner:
(1) For a service rate at or below the permitted lcvci,' by providi~ng
information and calculations that demonstrate that the rate in question
falls at or below the permitted level;
(2) For a service rate that exceeds the permitted level;
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FCC Cable Television Regulations Pursuant to 1992 Act
(i) By providing proof that the cable system has reducedthe rate for
the cable programming service at issue to a level at or below the
permitted level; or
(ii) By providing detailed cost-based information that demonstrates
that the rate in question is reasonable despite the fact that it
exceeds the permitted level.
O) For a charge for equipment installation or rental, by providing
information that demonstrates that the charge is based on the cable
operator's actual cost.
(c) In addition to responding to the merits of a complaint, the cable operator (
may also move for dismissal of the complaint for hilum to meet the minimum
showing requirement. Any such motion for dismissal must state with
particularity the masons the cable operator believes the complaint is defective
and shall not relieve the cable operator of its obligation to respond to the
merits of the complaint.
(d) A cable operator may file a consolidated response to multiple complaints
regarding the identicM rate or rate increase. A consolidated response must be
filed within 30 days from the date of service of the first complaint received,
unless the Comml.qsion notifies the cable operator to the contrary. A cable
operator may amend a consolidated response to address new issues raised by
complaints received after the cable operator's initial response:
(e) A cable operator that fails to file and serve a response to a valid complaint
may be deemed in default. If the Commission deems a cable operator in
default, the Commi.~sion may enter an order against the cable operator finding
the rate to be unreasonable and mandating appropriate relief.
(f) A cable operator need not respond to any complaint that is:
(1) .Not filed on the applicable form; or
(2) That the Commission has determined is defective and has so notified
the cable operator.
As of Augush 1993 Page 29
FCC Cable Television Regulations Pursuant to 1992 Act
§76.957 Commission adjUdication of the complaint.
The Commissionwill consider the complaint and the cable operator's response
and then determine by written decision whether the rate for the cable
programming service or associated equipment is unreasonable or not. If it
determines that the rate in question is unreasonable, the Commi~ion will
grant the complaint and may order appropriate relief, including, but not
limited to, prospective rate reductions and refunds. If it determines that the
rate in question is reasonable, the Commission will deny the complaint.
§76.960 Prospective rate reductions.
Upon a £mding that a rate for cable programming service or associated
equipment is unreasonable, the Commission may order thc cable operator to
implemcnt a prospective rate reduction to the class of customers subscribing
to the cable programming service at issue. The Commission's decision
regarding a prospective rate reduction shall remain binding on the cable
operator for one year unless the Commi-qsion specifies otherwise.
§76.961 Refunds.
(a) Upon a finding that a rate for cable programming service or associated
equipment is unreasonable, the Commission may order the cable operator to
refund to subscribers that portion of previously paid rates which is deemed
unreasonable.
(b) The cumulative refund due subscribers shall be calculated from the date
a valid complaint is filed until the date a cable operator implements a
prospective rate reduction as ordered by the Commi.qsion pursuant to § 76.960.
(c) The cable operator, in its discretion, may implement a refund in the
following manner:
(i) By returning overcharges to those subscribers who actually paid the
overcharges, either through direct payment or as a specifically identified,
one-time credit to those subscribers' bills; or
(ii) By means of a prospective percentage reduction in the unreasonable
cable programming sen, ice rate or equipment charge to cover the
cumulative overcharge. This shall be reflected as a specifically identified,.
_ .
Page 30
FCC Cable Television Regulations Pursuant to 1992 Act
one-time credit on prospective bills to the class of subscribers that
currently subscn'oe to the cable programming service or associated
equipment at issue.
(d) Refunds shall include interest computed at applicable rates published by
the Internal Revenue Service for tax refunds and additional tax payments.
Interest shall accrue from the date a valid complaint is fried until the refund
issues.
{}76.962 Implementation and certification of compliance.
(a) Implementation. A cable operator must implement remedial requirements,
including prospective rate reductions and refunds, within 60 days from the date
the Commi.~sion releases an order mandating a remedy.
(b) Certification of compliance. A cable operator must certify to the
Commission its compliance with any Comml-qsion order mandating remedial
requirements. Such certification shall:
·
(1) Be filed with the Commission within 90 days from the date the
Comrni_qsion releases an order mandating a remedy;
(2) Reference the applicable Commission order;,
(3) State that the cable operator has complied fully with all provisions of
the Commission's order,
(4) Include a description of the precise measures the cable operator has
· taken to implement the remedies ordered by the Commission; and {
(5) Be signed by an authorized representative of the cable operator.
§76.963 Forfeiture.
(a) If any cable operator willfully fails to comply with the terms of any
Commission order, including an order mandating remedial requirements after
a finding of unreasonable cable programming service or equipment rates, or
any Commission rule, the Commission may, in addition to other remedies,
impose a forfeiture pursuant to Section 503(b) of the Communications Act of
1934, as amended, 47 U.S.C. § 503(b).
As of August, 1993 Page 31
FCC Cable Television Regulations Pursuant to 1992 Act
(b) A cable operator shall not be subject to forfeiture because its rate for
cable programming service or equipment is determined to be unreasonable.
{}76.964 Advance written notification of rate increases.
In addition to the requirementof Section 76309(c)(3)(i)(B) regarding advance
notification to customers of any changes in rates, programming services or
channelpositions, a cable operator shah give the relevant franchising authority
a minimum of 30 days advance written notification of any changes in rates for
cable programming service or associated equipment.
§76.970 Commercial leased access rates.
(a) Cable operators shall designate channel capacity for commercial use by
persons unaffiliated with the operator in aecordance with the requirement of
47 U.S.C. § 532.
(b) The maximum commercial leased access rates that a cable operator may
charge is the highest implicit net fee charged any nonaffiliated programmer
(excluding leased access programmers) within the same program category.
(c) The implicit fee charged an unaffiliated programmer shah be caleulatedby
determining the monthly price per subscriber that the operator pays to carry
the programming of nonaffiliated providers and deducting the monthly price
subscribers pay to view the programming of the nonafffiiated provider. This
difference is multiplied by the percentage of subscribers able to receive the
nonaffiliatedprovider's programming. The implicit fee for a contracted service
may not include fees, stated or implied, for services other than the provision
of channel capacity (e.g., billing and collection, marketing, or studio services).
(d) For each of the three program categories as defined in paragraph (f) of
this section, the highest implicit net fee charged any nonaffiliated provider in
each category shall be the maximum monthly leased access rate per subscriber
that the operator could charge a commercialleased access programmerin that
category. The highest implicit net fee shall be based on contracts in effect in
the previous calendar year. Maximum rates for shorter periods can be
calculated by prorating the monthly maximum rate.
(e) Upon request, a schedule of commercial leased access rates shall be
provided to prospective leased access programmers. Operators shall maintain,
for Commission inspection, sufficient supporting documentation to justify the
..
.
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FCC Cable Television Regulations Pursuant to 1_992 Act
scheduled rates, including supporting contracts, calculations of the net implicit
fees, and justifications for all adjustments.
(f) For purposes of paragraph (b) of this section there are three program
categories:
(1) Programming for which a per-event or per channel charge is made;
(2) Programming more than fifty percent of the capacity of which is used
to sell products directly to customers; and
(3) All other programming.
§76.971 Commercial leased access terms and conditions.
(a)
(1) The cable operator and unaffiliated commercial leased access user
may negotiate channel placement and tier access for leased programming,
taking into account:
(i) The nature of the service (pay or general distribution channel,
complete channel or individual program);
(ii) The relationship between the charge imposed and ,the desirability
of the channel; and
(iii) The need to provide competition in program delivery and to
afford users a genuine outlet for their programming.
'(2) Where demand for commercial leased access capacity exceeds
available supply, each lessee will be allowed to lease up to one channel's
capacity.
Co) Cable operators may not apply programming production standards to
leased access that are any higher than those applied to public, educational and
governmental access channels.
(c) Cable operators are required to provide unaffiliated leased access users the
minimal level of technical support necessary for users to present their material
on tho air, and may not unreasonably refuse to cooperate with a leased access
user. in order to prevent that provider from obtaining channel capacity,
provided however, that leased access providers must reimburse operators for
the reasonable cost of any technical support that operators actually provide.
Aa of August, 1993 Page 33
FCC Cable Television Regulations Pursuant to 1992 Act
(d) Cable operators may require reasonable security deposits or other'-
assurances from users who are unable, to prepay in full for access to leased
commercialchannels.
(e) Cable operators may not set terms and conditions for commercialleased
access use based on content, except:
(1) To the limited extent necessary to establish a reasonable price for the
commercialuse of designated channel capacity by an unaffiliated person;
or
(2) To comply with 47 U.S.C. 9 532(h), (j) and 9 76.701.
(I) A cable operator shall provide billing and collection services for
commercial leased access cable users, unless the operator demonstrates
the existence of third party billing and collection services which in terms
of cost and access~ility, offer leased access users an alternative
substantially equivalent to that offered comparable non-leased
programmers.
(2) If an operator can make thc showing required in paragraph (f)(1) of
this section, it must, to the extent technically feas~le, make available data
necessary to enable a third party to bill and collect for the leased access
user.
§76.975 Commercial leased access dispute resolution.
(a) Any person aggrieved by the failure or refusal of a cable operator to make
commercial channel capacity available in accordance with the provisions of
Title VI of the Communications Act may bring an action in the district court
of the United States for the judicial district in which the cable system is
located to compel that such capacity be made available.
Co) Any person aggrieved by the failure or refusal of a cable operator to make
commercial channel capacity available or to charge rates for such capacity in
accordancewith the provisions of Title VI of the Communications Act, or our
implementing regulations, 9§ 76.970 and 76.971, may file a petition for relief
with the Commission.
(c) A petition must contain a concise statement of the facts constituting a
violation of the statute or the Commission's Rules, the specific statute(s) or
rule(s) violated, and certify that the petition was served on the cable operator.
· _
__
__
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FCC Cable Television Regulations Purs.ant to 1992 Act
(d) A petition must be filed within 60 days of the alleged violation.
(e) The cable operator or other respondent will have 30 days from the filing
of the petition in which to file a response. If a leased access rate is disputed,
the response must show that the rate charged is not higher than the highest
implicit fee the operator charges for a comparable category of service, and
submit the affidavit of a responsible company official in support. If, after a
response is submitted, the staff finds a prima facie violation of our rules, the
staff may require a respondent to produce additional information, or specify
other procedures necessary for resolution of the proceeding.
(f) The Commission, after consideration of the pleadings, may grant the relief
requested, in whole or in part, including, but not limited to ordering refunds,
injunctive measures, or forfeitures pursuant 47 U.S.C. § 503, denying the
petition, or issuing a ruling on the petition or dispute.
(g) To be afforded relief, the petitioner must show by clear and convincing
evidence that the cable operator has violated the Commission's leased access
provisions in 47 U.S.C. 9 532 or 9§ 76.970 and 76.971, or otherwise acted
unreasonably or in bad faith in failing or refusing to' make capacity available
or to charge lawful rates for such capacity to an unaffiliated leased access
programmer.
(h) During the pendencyof a dispute, a party seeking to lease channel capacity
for commercial purposes, shall comply with the rates, terms and conditions
prescribed by the cable operator, subject to refund or other appropriate
remedy.
{}76.977 Minority and educational programming used in Heu of deregulated
commercial leased access capacity. (
(a) A cable operator required by this section to designate channel capacity for
commercial use pursuant to 47 U.S.C. 9 532, may use any such channel
capacity for the provision of programming from a qualified minority
programming source or from any qualified educational programming source,
whether or not such source is affiliated with cable operator. The channel
capacity used to provide programming from a qualified minority programming
source or from any qualified edueationalprogramming source pursuant to this
Section may not exceed 33 percent of the channel capacity designated
pursuant to 47 U.S.C. 9 532.
As of August, 1993 Page 35
FCC Cable Television Regulations Pursuant to 1992 Act
(b) For purposes of this section, a qualified min_ority programming source is ' -
a programming source that devotes substantially all of its programming to
coverage of minority viewpoints, or to programming directed at members of
minority groups, and which is over 50 percent minority-owned.
(c) For purposes of this section, a qualified educational programming source
is a programming source that devotes substantially all of its programming to
educational or instructional programming that promotes public understanding
of mathematics, the sciences, the humanities, or the arts and has a
documented annual expenditure on programmir~g exceeding $15 million. The
annual expenditure on programming means all annual costs incurred by the
programming source to produce or acquire programs which are scheduled to
be televised, and specifically excludes marketing, promotion, satellite
transmission and operational costs, and general administrative costs.
(d) For purposes of paragraphs (b) and (c) of this section, "substantially all"
means that 90% or more of the programming offered, must be devoted to
minority or educationalpurposes, as defined in paragraphs (b) and (c) of this
section respectively.
(e) For purposes of subsection (b), "minority" is defined as in 47 U.S.C. 3090)
(3) (c) (ii) to include Blacks, Hispanics, American Indians, Alaska Natives,
Asians and Pacific Islanders.
{}76.980 Charges for customer changes.
(a) This Section shall govern charges for any changes in service tiers or
equipment provided to the subscriber that are initiated at the request of a
subscriber after initial service installation.
(b) The charge for customer changes in service tiers effected solely by coded
entry on a computer terminal or by other similarly simple methods shall be a
nominal amount, not exceeding actual costs, as defined in subsection (c)
below.
(c) The charge for customer changes in service tiers or equipment that involve
more than coded entry on a computer or other similarly simple method shall
be based on actual cost. The actual cost charge shall be either the HSC, as
defined in Section 76.923 of the rules multiplied by the number of person
hours needed to implement the change, or the HSC multiplied by the average
number of person hours involved in implementing customer changes.
...
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FCC Cable Television Regulations Pursuant to 1992 Act
(d) A cable operator may establish a higher charge for changes effected solely
by coded entry on a computer terminal or by other similarly simple methods,
subject to approval by the franchising authority, for a subscriber changing
service tiers more than two times in a twelve month period, except for such
changes ordered in response to a change in price or channel line-up. If a cable
system adopts such an increased charge, the cable system must notify all
subscribers in writing that they may be subject to such a charge for changing
service tiers more than the specified number of times in any twelve month
period.
(e) Downgrade charges that are the same as, or lower than, upgrade charges
are evidence of the reasonableness of such downgrade charges.
(f) For 30 days after notice of retiering or rate increases, a customer may
obtain changes in service tiers at no additional charge.
!}76.981 Negative option billing.
A cable operator shall not charge a subscriber for any service or equipment
that the subscriber"has not affirmatively requested by name. This provision,
however, shall not preclude the addition or deletion of a specific program
from a service offering, the addition or deletion of specific channels from an
existing tier of service, or the restructuring or division of existing tiers of
service that do not result in a fundamental change in the nature of an existing
service or tier of see'ice provided that such change is otherwis6 consistent with
applicable regulations. A subscriber's failure to refuse a cable operator's
proposal to provide such service or equipment is not an affirmative request for
service or equipment. A subscriber's affirmative request for service or
equipment may be made orally or in writing.
{}76.982 Continuation of rate agreements.
During the term of an agreement executed before July 1, 1990, by a
franchising authority and a cable operator providing for the regulation of basic
cable service rates where there was not effective competition under
Commission rules in effect on that date, the franchising authority may regulate
basic cable rates without following Section 623 of the 1992 Cable Act or §§
76.910 through 76.942. A franchising authority regulating basic cable rates
pursuant to such a rate agreement is not required to file for certification
during the remaining term of the agreement but shall notify the Commission
of its intent to continue regulating basic cable rates.
As of August, 1993
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FCC Cable Television Regulations Pursuant to 1992 Act
{}76.983 Discrimination.
(a) No Federal agency, state, or local franchising authority may prohibit a
cable operator from offering reasonable discounts to senior citizens or to
economically disadvantaged groups.
(1) Such discounts must be offered equally to all subscribers in the
franchise area who qualify as members of these categories, or any
reasonable subeategory thereof.
(2) For purposes of this section, members of economically disadvantaged
groups are those individuals who receive federal, state or local welfare
assistance.
(b) Nothing herein shah preclude any Federal agency, state, or local
franchising authority from requiring and regulating the reception of cable
service by hearing impaired individuals.
§76.984 Geographically uniform rate structure.
(a) The iates charged by cable operators subject to §§ 76.922 and 76.923 shall
be provided pursuant to a rate structure that is uniform throughout each
franchise area in which cable sen, ice is provided.
(b) This section does not prohibit the establishment by cable operators of
reasonable categories of service and customers with separate rates and terms
and conditions of service, within a franchise area.
{}76.985 Subscriber bill itemlvation.
(a) Cable operators may identify as a separate line item of each regular
subscriber bill the following:
(1) The amount of the total bill assessed as a franchise fee and the
identity of the franchising authority to which the fee is paid.
(2) The amount of the total bill assessed to satisfy any requirements
imposed on the cable operator by the franchise agreement to support
public, educational, or governmental channels or the use of such
channels.
. _-
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FCC Cable Television Regulations Pursuant to 1992 Act
(3) The amount of any other fee, tax, assessment, or charge of any kind
imposed by any governmental authority on the transaction between the
operator and the subscnt>er. In order for a governmental fee or
assessment to be separately identified under this subsection, it must be
directly imposed by a governmental body on a transaction between a
subscriber and an operator.
(b) The charge identified on the subscriber bill as the total charge for
cable service should include all fees and costs itemi2ed pursuant to this
Section.
(c) Local franchising authorities may adopt regulations consistent with this
section.
As of August, 1993
Page 39
FCC Cable Television Regulations Pursuant to 1992 Act
Subpart - Consumer Protection and Customer Service
§76.309 Customer Service Obligations
(a) A cable franchise authority may enforce the customer service standards
set forth in section (c) of this rule against cable operators. The franchise
authority must provide affected cable operators ninety (90) days written notice
of its intent to enforce the standards.
(b) Nothing in this rule should be construed to prevent or prohibit:
(1) A franchising authority and a cable operator from agreeing to
customer service requirements that exceed the standards set forth ia
section (c) of this rule;
(2) A franchising authority from enforcing, through the end of the
franchise term, pre-existing customer service requirements that exceed the
standards set forth in section (e) of this rule and are contaiaedin current
franchise agreements;
(3) Any State or any franchising authority from enacting or enforcing any
consumer protection law, to the extent not specifically preempted herein;
or
(4) The establishment or enforcement of any State or municipal law or
regulation concerning customer service that imposes customer service
requirements that exceed, or address matters not addressed by, the
standards set forth in section (c) of this rule.
(c) Effective July 1, 1993, a cable operator shall be subject to the following
customer service standards:
(1) Cable system office hours and telephone availability-
(A) The cable operator will maintain a local, toll-free or collect call
telephone access line which will be available to its subscribers 24
hours a day, seven days a week.
(i) Trained company representatives will be available to respond to
customer telephone inquiries during normal business hours.
Page 40
FCC Cable Television Regulations Pursuant to 1992 Act
(ii) After normal business hours, the access line may be answered by
a service or an automated response system, including an answering
machine. Inquiries received after normal business hours must be
responded to by a trained company representative on the next
business day.
(B) Under normal operating conditions, telephone answer time by
a customer representative, including wait time, shall not exceed
thirty (30) seconds when the connection is made. If the call needs
to be transferred, transfer time shall not exceed thirty (30) seconds.
These standards shall be met no less than ninety (90) percent of the
time under normal operating conditions, measured on a quarterly
basis. {
(C) The operator will not be required to acquire equipment or
perform surveys to measure compliance with the telephone
answering standards above unless an historical record of complaints
indicates a clear failure to comply.
(D) Under normal operating conditions, the customer will receive
a busy'signal less than three (3) percent of the time.
(E) Customer service center and bill payment locations will be open
at least during normal business hours and will be conveniently
located.
(2) Installations, outages and service calls- Under normal operating
conditions, each of the following four standards will be met not less than
ninety five (95) percent of the time measured on a quarterly basis:
(A) Standard installations will be performed within seven (~,,
business days after an order has been placed. "Standard"
installations are those that are located up to 125 feet from the
existing distribution system.
(B) Excluding conditions beyond the control of the operator, the
cable operator will begin working on "service interruptions" promptly
and in no event later than 24 hours after the interruption becomes
known. The cable operator must begin actions to correct other
service problems that next business day after notification of the
service problem.
As of August, 1993
Page 41
FCC Cable Television Regulations Pursuant to 1992 Act
(C) The "appointment window" alternatives for installations, service
call~, and other installation activities will be either a specific time or,
at maximum, a four-hour time block during normal business hours.
(The operator may schedule service calls and other installation
activities outside of normal business hours for the express
convenience of the customer.)
(D) An operator may not cancel an appointment with a customer
after the close of business on the business day prior to the ~eheduled
appointment.
(E) If a cable operator representative ia running late for an
appointment with a customer and will be able to keep the
appointment as scheduled, the customer will be contacted. The
appointment will be rescheduled, as necessary, at a time which is
convenient for the customer.
(3) Communications between cable operators and cable ~ubscribers-
(A) Notifications to subscribers-
(1) The cable operator shall provide written information on
each of the following areas at the time of installation of service,
at least annually to all subscribers, and at any time upon
request:
(i) Products and service offered;
(ii) Prices and options for programming serdces and
conditions of subscription to programming and other
services;
(iii) Installation and service maintenance policies;
(iv) Instructions on how to usc the cable service;
(v) Channel positions of programming carried on the
system; and,
(vi) Billing and complaint procedures, including the
address and telephone number of the local franchise
authorities cable office.
..
FCC Cable Television Regulations Pursuant to 1992 Act
(2) Customers will be notified of any changes in rates, programming
sen, ices or channel positions as soon as possible through announcements
on the cable system and in writing. Notice must be given to subscribers
a minimum of thirty (30) days in advance of such changes if the change
is within the control of the cable operator. In addition, the cable
operator shall notify subscribers th/rty (30) days in advance of any
significant changes in the other information required by the preceding
paragraph.
(B) Billing-
(i) Bills will be clear, concise and understandable. Bills must·
be fully itemized, with itemizations including, but not limited t(
basic and premium service charges and equipment charges.
Bills will also clearly delineate all activity during the billing
period, including optional charges, rebates and credits.
(ii) In case of a billing dispute, the cable operator must respond
to a written complaint from a subscn'ber within thirty (30) days.
(C)' Refunds. Refund checks will be issued promptly, but no later
than either.
(i) The customer's next billing cycle following resolution of the
request or thirty (30) days, whichever is earlier, or
(ii) The return of the equipment supplied by the cable operator
if service is terminated.
(D) Credits. Credits for service will be issued no later than
customer's next billing cycle following the determlnationthat a crC(.
is warranted.
(4) Definitions.
(A) Normal Business Hours. The term "normal business hours"
means those hours during which most similar businesses in the
community are open to serve customers. In all cases, "normal
business hours" must include some evening hours at least one night
per week and/or some weekend hours.
· (B) Normal Operating Conditions. The term "normal operating
conditions" means those service conditions which are within the
Page 42 As of August, 1993 Page 43
FCC Cable Television Regulations Pursuant to 1992 Act
control of the cable operator. Those conditions which are not within
the control of the cable operator include, but are not limited to,
natural disasters, civil disturbances, power outages, telephone
network outages, and severe or unusual weather conditions. Those
conditions which are ordinarily within the control of the cable
operator include, but are not limited to, specialpromotions, pay-per-
view events, rate increases, regular peak or seasonal demand
periods, and maintenance or upgrade of the cable system.
(C) Service Interruption. The term 'service interruption" means the
loss of picture or sound on one or more cable channels.
FCC Cable Television Regulations Pursuant to 1992 Act
Subpan L - Cable Television Access
§76.701 Leased Access Channels.
(a) Notwithstanding 4'/U.S.C. § 532 (b) (2) (Communications Act of 1934, as
amended, Section 612), a cable operator, in accordance with 4'/U.S.C. § 532
gh) gCable Consumer Protection and Competition Act of 1992, §10 ga)), may
adopt and enforce prospectively a written and published policy of prohibiting
programming which, it reasonably believes, describes or depicts sexual or
excretory activities or organs in a patently offensive manner as measured by
contemporary community standards.
gb) A cable operator that does not prohibit the distribution of programming
in accordance with paragraph ga) shall place any leased access programming
identified by program providers as indecent on one or more channels that are
available to subscribers only with their prior written consent as provided in
paragraph
(c) A cable 6perator shall make such programming available to a subscnber
within 30 days of receipt of a written request for access to the programming
that includes a statement that the requesting subscriber is at least eighteen
years old; a cable operator shall terminate a subscriber's access to such
programming within 30 days from receipt of a subscriber's request.
(d) A program provided requesting access on a leased access channel shall
identify for a cable operator any programming that is indecent as deemed in
paragraph (g). Such identification shall be in writing and include the full
name, address, and telephone number of the program provider and a
statement that the program provider is respons~le for the content .~r - ~
programming. A cable operator may require that such identificati~ ~
provided up to 30 days prior to the requested date for carriage. A program
provider requesting carriage of "live programming" on a leased access channel
that is not identified as indecent must exercise reasonable efforts to insure that
indecent programming will not b~ presented. A cable operator will not b~ in
· violation of paragraph (b) if it fails to block indecent programming that is not
identified by i~ program provide as required in paragraph (d).
(e) A cable operator shall not be required to provide leased access to a
program provided fi:
(1) The program provider refuses to identify whether programming is
indecent as required under paragraph (d); or
As of August, 1993 Page 45
FCC Cable Television Regulations Pursuant to 1992 Act
(2) The program provider refuses or fails to certify, ff requested by the
cable operator under paragraph (e), that the programming is not obscene
vrogrammmo or indecent vrorrammm~ subject to the reomrement of
paragraph Co); or
(3) Thc program provider refuses or fails to certify, if requested by the
cable operator under paragraph (e), that reasonable efforts will be made
to ensure that any ~live programming" is not obscene programming or
indecent programming subject to the requirement of paragraph Co); or
(4) The program provider has failed to provide up to thirty days prior
notice, if requested by the cable operator, that the programming is
indecent.
(g) For purposes of Paragraphs CO) - (f), "indecent programming' is any
programming that describes or depicts sexual or excretory activities or organs
in a patently offensive manner as measured by contemporary community
standards for the cable medium.
(h) Cable operators shall retain records sufficient to verify their compliance
with paragraph CO) of this section and make such records available to the
public. Such records must be retained for a period sufficient to cover the
limitations period specified in 47 U.S.C. {} 503 CO) (6) (B).
{}76.702 Public, Educational and Governmental Access.
Any cable operator may prohibit the use on its system of any channel capacity
of any public, educational, or governmental access facility for any
programming which contains obscene material, indecent material as defined
in section 76.701(g), or materialsoliciting or promoting unlawful conduct For
purposes of this section, "material soliciting or promoting unlawflfl conduct"
shall mean material that is othenvise prescribed by law. A cable operator may
require any access user, or access manager or administrator agreeing to
assume the responsibility of certifying, to certify that its programming does not
contain any of thc materials described above and that reasonable efforts will
be used to ensure that live programming does not contain such material.
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