§573 — Title 47 Telegraphs, Telephones, and Radiotelegraphs | U.S. Code

Summary

Local phone companies may offer cable TV to their customers by using an “open video system” inside the area where they sell telephone exchange service. Other people or companies can also put video programs onto those systems if the Federal Communications Commission (FCC) allows it. An open video operator can get fewer rules if it tells the FCC it follows the FCC’s rules and the FCC approves that claim within 10 days after telling the public. If someone has a fight about these rules, the FCC must decide the dispute within 180 days and can order channel carriage or award money to someone who was wrongly denied carriage. The FCC had to write specific rules within 6 months after February 8, 1996. Those rules must stop unfair treatment of programming providers, make carriage rates and terms fair, and, if demand is higher than channel space, stop an operator and its affiliates from using more than one-third of the system’s active channels for their own services (but they can still offer as many channels directly to customers as they want). The rules allow only one channel for a program that more than one provider offers, as long as subscribers can get that program easily. The FCC’s rules about sports, network nonduplication, and syndicated exclusivity apply. Operators must not favor their own ads or guides, must let programmers identify their channels, must not change that ID if it comes with the signal, and must not leave out unaffiliated stations from guides. Open video operators may pay local fees on their gross revenue instead of franchise fees, but the fee rate can’t be higher than the usual franchise fee; they may show that fee separately on bills. Telephone service area: the place where the carrier offers telephone exchange service.

Title 47, §573

Telegraphs, Telephones, and Radiotelegraphs — Source: USLM XML via OLRC

(a)(1)A local exchange carrier may provide cable service to its cable service subscribers in its telephone service area through an open video system that complies with this section. To the extent permitted by such regulations as the Commission may prescribe consistent with the public interest, convenience, and necessity, an operator of a cable system or any other person may provide video programming through an open video system that complies with this section. An operator of an open video system shall qualify for reduced regulatory burdens under subsection (c) of this section if the operator of such system certifies to the Commission that such carrier complies with the Commission’s regulations under subsection (b) and the Commission approves such certification. The Commission shall publish notice of the receipt of any such certification and shall act to approve or disapprove any such certification within 10 days after receipt of such certification.

(2)The Commission shall have the authority to resolve disputes under this section and the regulations prescribed thereunder. Any such dispute shall be resolved within 180 days after notice of such dispute is submitted to the Commission. At that time or subsequently in a separate damages proceeding, the Commission may, in the case of any violation of this section, require carriage, award damages to any person denied carriage, or any combination of such sanctions. Any aggrieved party may seek any other remedy available under this chapter.

(b)(1)Within 6 months after February 8, 1996, the Commission shall complete all actions necessary (including any reconsideration) to prescribe regulations that—

(A)except as required pursuant to section 531, 534, or 535 of this title, prohibit an operator of an open video system from discriminating among video programming providers with regard to carriage on its open video system, and ensure that the rates, terms, and conditions for such carriage are just and reasonable, and are not unjustly or unreasonably discriminatory;

(B)if demand exceeds the channel capacity of the open video system, prohibit an operator of an open video system and its affiliates from selecting the video programming services for carriage on more than one-third of the activated channel capacity on such system, but nothing in this subparagraph shall be construed to limit the number of channels that the carrier and its affiliates may offer to provide directly to subscribers;

(C)permit an operator of an open video system to carry on only one channel any video programming service that is offered by more than one video programming provider (including the local exchange carrier’s video programming affiliate): Provided, That subscribers have ready and immediate access to any such video programming service;

(D)extend to the distribution of video programming over open video systems the Commission’s regulations concerning sports exclusivity (47 C.F.R. 76.67), network nonduplication (47 C.F.R. 76.92 et seq.), and syndicated exclusivity (47 C.F.R. 76.151 et seq.); and

(E)(i)prohibit an operator of an open video system from unreasonably discriminating in favor of the operator or its affiliates with regard to material or information (including advertising) provided by the operator to subscribers for the purposes of selecting programming on the open video system, or in the way such material or information is presented to subscribers;

(ii)require an operator of an open video system to ensure that video programming providers or copyright holders (or both) are able suitably and uniquely to identify their programming services to subscribers;

(iii)if such identification is transmitted as part of the programming signal, require the carrier to transmit such identification without change or alteration; and

(iv)prohibit an operator of an open video system from omitting television broadcast stations or other unaffiliated video programming services carried on such system from any navigational device, guide, or menu.

(2)Subject to the requirements of paragraph (1) and the regulations thereunder, nothing in this section prohibits a common carrier or its affiliate from negotiating mutually agreeable terms and conditions with over-the-air broadcast stations and other unaffiliated video programming providers to allow consumer access to their signals on any level or screen of any gateway, menu, or other program guide, whether provided by the carrier or its affiliate.

(c)(1)Any provision that applies to a cable operator under—

(A)section 533 (other than subsection (a) thereof), 536, 543(f), 548, 551, and 554 of this title, shall apply,

(B)section 531, 534, and 535 of this title, and section 325 of this title, shall apply in accordance with the regulations prescribed under paragraph (2), and

(C)section 532 and 537 of this title, and parts III and IV of this subchapter (other than section 543(f), 548, 551, and 554 of this title), shall not apply,

(2)(A)In the rulemaking proceeding to prescribe the regulations required by subsection (b)(1), the Commission shall, to the extent possible, impose obligations that are no greater or lesser than the obligations contained in the provisions described in paragraph (1)(B) of this subsection. The Commission shall complete all action (including any reconsideration) to prescribe such regulations no later than 6 months after February 8, 1996.

(B)An operator of an open video system under this part may be subject to the payment of fees on the gross revenues of the operator for the provision of cable service imposed by a local franchising authority or other governmental entity, in lieu of the franchise fees permitted under section 542 of this title. The rate at which such fees are imposed shall not exceed the rate at which franchise fees are imposed on any cable operator transmitting video programming in the franchise area, as determined in accordance with regulations prescribed by the Commission. An operator of an open video system may designate that portion of a subscriber’s bill attributable to the fee under this subparagraph as a separate item on the bill.

(3)With respect to the establishment and operation of an open video system, the requirements of this section shall apply in lieu of, and not in addition to, the requirements of subchapter II.

(4)Nothing in this chapter precludes a video programming provider making use of an open video system from being treated as an operator of a cable system for purposes of section 111 of title 17.

(d)For purposes of this section, the term “telephone service area” when used in connection with a common carrier subject in whole or in part to subchapter II of this chapter means the area within which such carrier is offering telephone exchange service.

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Editorial Notes

References in Text

This chapter, referred to in subsecs. (a)(2) and (c)(4), was in the original “this Act”, meaning act June 19, 1934, ch. 652, 48 Stat. 1064, known as the Communications Act of 1934, which is classified principally to this chapter. For complete classification of this Act to the Code, see section 609 of this title and Tables.

§573 Establishment of Open Video Systems

Summary

Title 47, §573

Notes & Related Subsidiaries

Editorial Notes

References in Text

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