§573 Establishment of Open Video Systems

Summary

Local telephone companies may offer cable-style TV to people in the area where they sell phone service by using an "open video system" that follows rules from the Federal Communications Commission (FCC). Other companies can also offer video on such systems if the FCC allows it. An open video system operator can get lighter regulation if it tells the FCC it meets the FCC’s rules and the FCC approves the report. The FCC must announce it got the report and must approve or reject it within 10 days. If people disagree about how the rules are applied, the FCC must decide the dispute within 180 days and can order carriage, award money to anyone wrongly denied carriage, or both. Aggrieved parties can also use other remedies allowed in the law. The FCC had to write specific rules within 6 months after February 8, 1996. Those rules must stop unfair discrimination among video programmers (except as covered by sections 531, 534, or 535), and make sure rates and terms are fair. If demand is higher than channel space, an operator and its affiliates may not take more than one-third of the activated channels for their own programs. If a program is offered by more than one provider, the operator can carry it on only one channel but must give subscribers ready access. The FCC must apply sports, network nonduplication, and syndicated exclusivity rules to open video systems. Operators must not favor their own ads or materials unfairly, must let programmers identify their services to viewers, must send any embedded IDs without changing them, and must not leave unaffiliated stations out of guides or menus. Common carriers may still negotiate where to place over‑the‑air stations in guides. Certain cable rules apply to certified open video system operators (sections 533 except (a), 536, 543(f), 548, 551, 554), some apply under rules (sections 531, 534, 535, and 325), and others do not (sections 532, 537, and parts III and IV except the listed parts). Local fees on gross revenues may be charged but cannot exceed franchise fees under section 542 and may be shown separately on the bill. An open video system’s rules replace subchapter II requirements. A video provider using an open video system can still be treated as a cable operator under section 111 of title 17. "Telephone service area" means the area where the carrier offers local telephone exchange service.