47 U.S.C. § 573 — Establishment of open video systems

Page 312 TITLE 47—TELECOMMUNICATIONS § 573 1 So in original. Probably should be ‘‘subsection’’. enter into a joint venture or partnership with, any cable system within the local exchange carrier’s telephone service area that serves no more than 20,000 cable subscribers, if no more than 12,000 of those subscribers live within an urbanized area, as defined by the Bureau of the Census. (6) Waivers The Commission may waive the restrictions of subsections 1 (a), (b), or (c) only if— (A) the Commission determines that, be- cause of the nature of the market served by the affected cable system or facilities used to provide telephone exchange service— (i) the affected cable operator or local exchange carrier would be subjected to undue economic distress by the enforce- ment of such provisions; (ii) the system or facilities would not be economically viable if such provisions were enforced; or (iii) the anticompetitive effects of the proposed transaction are clearly out- weighed in the public interest by the prob- able effect of the transaction in meeting the convenience and needs of the commu- nity to be served; and (B) the local franchising authority ap- proves of such waiver. (e) ‘‘Telephone service area’’ defined For purposes of this section, the term ‘‘tele- phone 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 provided tele- phone exchange service as of January 1, 1993, but if any common carrier after such date transfers its telephone exchange service facilities to an- other common carrier, the area to which such facilities provide telephone exchange service shall be treated as part of the telephone service area of the acquiring common carrier and not of the selling common carrier. (June 19, 1934, ch. 652, title VI, § 652, as added Pub. L. 104–104, title III, § 302(a), Feb. 8, 1996, 110 Stat. 119.) § 573. Establishment of open video systems (a) Open video systems (1) Certificates of compliance 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 sec- tion. An operator of an open video system shall qualify for reduced regulatory burdens under subsection (c) of this section if the oper- ator of such system certifies to the Commis- sion that such carrier complies with the Com- mission’s regulations under subsection (b) and the Commission approves such certification. The Commission shall publish notice of the re- ceipt of any such certification and shall act to approve or disapprove any such certification within 10 days after receipt of such certifi- cation. (2) Dispute resolution 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 Commis- sion may, in the case of any violation of this section, require carriage, award damages to any person denied carriage, or any combina- tion of such sanctions. Any aggrieved party may seek any other remedy available under this chapter. (b) Commission actions (1) Regulations required Within 6 months after February 8, 1996, the Commission shall complete all actions nec- essary (including any reconsideration) to pre- scribe regulations that— (A) except as required pursuant to section 531, 534, or 535 of this title, prohibit an oper- ator of an open video system from discrimi- nating 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 unrea- sonably discriminatory; (B) if demand exceeds the channel capacity of the open video system, prohibit an oper- ator of an open video system and its affili- ates 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 sub- scribers have ready and immediate access to any such video programming service; (D) extend to the distribution of video pro- gramming over open video systems the Com- mission’s regulations concerning sports ex- clusivity (47 C.F.R. 76.67), network non- duplication (47 C.F.R. 76.92 et seq.), and syn- dicated 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 re- gard to material or information (including advertising) provided by the operator to sub- scribers for the purposes of selecting pro- gramming on the open video system, or in the way such material or information is pre- sented to subscribers; Page 313 TITLE 47—TELECOMMUNICATIONS § 601 (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 with- out change or alteration; and (iv) prohibit an operator of an open video system from omitting television broadcast stations or other unaffiliated video program- ming services carried on such system from any navigational device, guide, or menu. (2) Consumer access 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 broad- cast stations and other unaffiliated video pro- gramming 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 affil- iate. (c) Reduced regulatory burdens for open video systems (1) In general Any provision that applies to a cable oper- ator under— (A) sections 533 (other than subsection (a) thereof), 536, 543(f), 548, 551, and 554 of this title, shall apply, (B) sections 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) sections 532 and 537 of this title, and parts III and IV of this subchapter (other than sections 543(f), 548, 551, and 554 of this title), shall not apply, to any operator of an open video system for which the Commission has approved a certifi- cation under this section. (2) Implementation (A) Commission action 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 com- plete all action (including any reconsider- ation) to prescribe such regulations no later than 6 months after February 8, 1996. (B) Fees 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 govern- mental 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 sepa- rate item on the bill. (3) Regulatory streamlining With respect to the establishment and oper- ation of an open video system, the require- ments of this section shall apply in lieu of, and not in addition to, the requirements of subchapter II. (4) Treatment as cable operator Nothing in this chapter precludes a video programming provider making use of an open video system from being treated as an oper- ator of a cable system for purposes of section 111 of title 17. (d) ‘‘Telephone service area’’ defined For purposes of this section, the term ‘‘tele- phone 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 tele- phone exchange service. (June 19, 1934, ch. 652, title VI, § 653, as added Pub. L. 104–104, title III, § 302(a), Feb. 8, 1996, 110 Stat. 121.) 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 Communica- tions 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. SUBCHAPTER VI—MISCELLANEOUS PROVISIONS § 601. Interstate Commerce Commission and Postmaster General; duties, powers, and functions transferred to Commission (a) All duties, powers, and functions of the Interstate Commerce Commission under sec- tions 9 to 15 of this title, relating to operation of telegraph lines by railroad and telegraph companies granted Government aid in the con- struction of their lines, are imposed upon and vested in the Commission: Provided, That such transfer of duties, powers, and functions shall not be construed to affect the duties, powers, functions, or jurisdiction of the Interstate Com- merce Commission under, or to interfere with or prevent the enforcement of, subtitle IV of title 49. (b) All duties, powers, and functions of the Postmaster General with respect to telegraph companies and telegraph lines under any exist- ing provision of law are imposed upon and vest- ed in the Commission. (June 19, 1934, ch. 652, title VII, § 701, formerly title VI, § 601, 48 Stat. 1101; renumbered title VII, § 701, Pub. L. 98–549, § 6(a), Oct. 30, 1984, 98 Stat. 2804.)