47 U.S.C. § 548 — Development of competition and diversity

Page 298 TITLE 47—TELECOMMUNICATIONS § 547 thority fails to object within a reasonable time after receipt of such notice’’ for ‘‘or has effectively acqui- esced’’. Subsec. (e)(2)(A). Pub. L. 102–385, § 18(e), inserted ‘‘, other than harmless error,’’ after ‘‘franchising au- thority’’. Subsec. (i). Pub. L. 102–385, § 18(f), added subsec. (i). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–385 effective 60 days after Oct. 5, 1992, see section 28 of Pub. L. 102–385, set out as a note under section 325 of this title. EFFECTIVE DATE Section effective 60 days after Oct. 30, 1984, except where otherwise expressly provided, see section 9(a) of Pub. L. 98–549, set out as a note under section 521 of this title. § 547. Conditions of sale (a) If a renewal of a franchise held by a cable operator is denied and the franchising authority acquires ownership of the cable system or ef- fects a transfer of ownership of the system to another person, any such acquisition or transfer shall be— (1) at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the franchise itself, or (2) in the case of any franchise existing on the effective date of this subchapter, at a price determined in accordance with the franchise if such franchise contains provisions applicable to such an acquisition or transfer. (b) If a franchise held by a cable operator is re- voked for cause and the franchising authority acquires ownership of the cable system or ef- fects a transfer of ownership of the system to another person, any such acquisition or transfer shall be— (1) at an equitable price, or (2) in the case of any franchise existing on the effective date of this subchapter, at a price determined in accordance with the franchise if such franchise contains provisions applicable to such an acquisition or transfer. (June 19, 1934, ch. 652, title VI, § 627, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2793.) Editorial Notes REFERENCES IN TEXT For ‘‘the effective date of this subchapter’’, referred to in subsecs. (a)(2) and (b)(2), as 60 days after Oct. 30, 1984, except where otherwise expressly provided, see section 9(a) of Pub. L. 98–549, set out as an Effective Date note under section 521 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 60 days after Oct. 30, 1984, except where otherwise expressly provided, see section 9(a) of Pub. L. 98–549, set out as a note under section 521 of this title. § 548. Development of competition and diversity in video programming distribution (a) Purpose The purpose of this section is to promote the public interest, convenience, and necessity by increasing competition and diversity in the mul- tichannel video programming market, to in- crease the availability of satellite cable pro- gramming and satellite broadcast programming to persons in rural and other areas not currently able to receive such programming, and to spur the development of communications tech- nologies. (b) Prohibition It shall be unlawful for a cable operator, a sat- ellite cable programming vendor in which a cable operator has an attributable interest, or a satellite broadcast programming vendor to en- gage in unfair methods of competition or unfair or deceptive acts or practices, the purpose or ef- fect of which is to hinder significantly or to pre- vent any multichannel video programming dis- tributor from providing satellite cable program- ming or satellite broadcast programming to sub- scribers or consumers. (c) Regulations required (1) Proceeding required Within 180 days after October 5, 1992, the Commission shall, in order to promote the public interest, convenience, and necessity by increasing competition and diversity in the multichannel video programming market and the continuing development of communica- tions technologies, prescribe regulations to specify particular conduct that is prohibited by subsection (b). (2) Minimum contents of regulations The regulations to be promulgated under this section shall— (A) establish effective safeguards to pre- vent a cable operator which has an attrib- utable interest in a satellite cable program- ming vendor or a satellite broadcast pro- gramming vendor from unduly or improperly influencing the decision of such vendor to sell, or the prices, terms, and conditions of sale of, satellite cable programming or sat- ellite broadcast programming to any unaf- filiated multichannel video programming distributor; (B) prohibit discrimination by a satellite cable programming vendor in which a cable operator has an attributable interest or by a satellite broadcast programming vendor in the prices, terms, and conditions of sale or delivery of satellite cable programming or satellite broadcast programming among or between cable systems, cable operators, or other multichannel video programming dis- tributors, or their agents or buying groups; except that such a satellite cable program- ming vendor in which a cable operator has an attributable interest or such a satellite broadcast programming vendor shall not be prohibited from— (i) imposing reasonable requirements for creditworthiness, offering of service, and financial stability and standards regarding character and technical quality; (ii) establishing different prices, terms, and conditions to take into account actual and reasonable differences in the cost of creation, sale, delivery, or transmission of satellite cable programming or satellite broadcast programming; Page 299 TITLE 47—TELECOMMUNICATIONS § 548 (iii) establishing different prices, terms, and conditions which take into account economies of scale, cost savings, or other direct and legitimate economic benefits reasonably attributable to the number of subscribers served by the distributor; or (iv) entering into an exclusive contract that is permitted under subparagraph (D); (C) prohibit practices, understandings, ar- rangements, and activities, including exclu- sive contracts for satellite cable program- ming or satellite broadcast programming be- tween a cable operator and a satellite cable programming vendor or satellite broadcast programming vendor, that prevent a multi- channel video programming distributor from obtaining such programming from any sat- ellite cable programming vendor in which a cable operator has an attributable interest or any satellite broadcast programming ven- dor in which a cable operator has an attrib- utable interest for distribution to persons in areas not served by a cable operator as of October 5, 1992; and (D) with respect to distribution to persons in areas served by a cable operator, prohibit exclusive contracts for satellite cable pro- gramming or satellite broadcast program- ming between a cable operator and a sat- ellite cable programming vendor in which a cable operator has an attributable interest or a satellite broadcast programming vendor in which a cable operator has an attrib- utable interest, unless the Commission de- termines (in accordance with paragraph (4)) that such contract is in the public interest. (3) Limitations (A) Geographic limitations Nothing in this section shall require any person who is engaged in the national or re- gional distribution of video programming to make such programming available in any ge- ographic area beyond which such program- ming has been authorized or licensed for dis- tribution. (B) Applicability to satellite retransmissions Nothing in this section shall apply (i) to the signal of any broadcast affiliate of a na- tional television network or other television signal that is retransmitted by satellite but that is not satellite broadcast programming, or (ii) to any internal satellite communica- tion of any broadcast network or cable net- work that is not satellite broadcast pro- gramming. (4) Public interest determinations on exclusive contracts In determining whether an exclusive con- tract is in the public interest for purposes of paragraph (2)(D), the Commission shall con- sider each of the following factors with respect to the effect of such contract on the distribu- tion of video programming in areas that are served by a cable operator: (A) the effect of such exclusive contract on the development of competition in local and national multichannel video programming distribution markets; (B) the effect of such exclusive contract on competition from multichannel video pro- gramming distribution technologies other than cable; (C) the effect of such exclusive contract on the attraction of capital investment in the production and distribution of new satellite cable programming; (D) the effect of such exclusive contract on diversity of programming in the multi- channel video programming distribution market; and (E) the duration of the exclusive contract. (5) Sunset provision The prohibition required by paragraph (2)(D) shall cease to be effective 10 years after Octo- ber 5, 1992, unless the Commission finds, in a proceeding conducted during the last year of such 10-year period, that such prohibition con- tinues to be necessary to preserve and protect competition and diversity in the distribution of video programming. (d) Adjudicatory proceeding Any multichannel video programming dis- tributor aggrieved by conduct that it alleges constitutes a violation of subsection (b), or the regulations of the Commission under subsection (c), may commence an adjudicatory proceeding at the Commission. (e) Remedies for violations (1) Remedies authorized Upon completion of such adjudicatory pro- ceeding, the Commission shall have the power to order appropriate remedies, including, if necessary, the power to establish prices, terms, and conditions of sale of programming to the aggrieved multichannel video program- ming distributor. (2) Additional remedies The remedies provided in paragraph (1) are in addition to and not in lieu of the remedies available under subchapter V or any other pro- vision of this chapter. (f) Procedures The Commission shall prescribe regulations to implement this section. The Commission’s regu- lations shall— (1) provide for an expedited review of any complaints made pursuant to this section; (2) establish procedures for the Commission to collect such data, including the right to ob- tain copies of all contracts and documents re- flecting arrangements and understandings al- leged to violate this section, as the Commis- sion requires to carry out this section; and (3) provide for penalties to be assessed against any person filing a frivolous complaint pursuant to this section. (g) Common carriers Any provision that applies to a cable operator under this section shall apply to a common car- rier or its affiliate that provides video program- ming by any means directly to subscribers. Any such provision that applies to a satellite cable programming vendor in which a cable operator has an attributable interest shall apply to any satellite cable programming vendor in which Page 300 TITLE 47—TELECOMMUNICATIONS § 549 such common carrier has an attributable inter- est. For the purposes of this subsection, two or fewer common officers or directors shall not by itself establish an attributable interest by a common carrier in a satellite cable program- ming vendor (or its parent company). (h) Exemptions for prior contracts (1) In general Nothing in this section shall affect any con- tract that grants exclusive distribution rights to any person with respect to satellite cable programming and that was entered into on or before June 1, 1990, except that the provisions of subsection (c)(2)(C) shall apply for distribu- tion to persons in areas not served by a cable operator. (2) Limitation on renewals A contract that was entered into on or be- fore June 1, 1990, but that is renewed or ex- tended after October 5, 1992, shall not be ex- empt under paragraph (1). (i) Definitions As used in this section: (1) The term ‘‘satellite cable programming’’ has the meaning provided under section 605 of this title, except that such term does not in- clude satellite broadcast programming. (2) The term ‘‘satellite cable programming vendor’’ means a person engaged in the pro- duction, creation, or wholesale distribution for sale of satellite cable programming, but does not include a satellite broadcast pro- gramming vendor. (3) The term ‘‘satellite broadcast program- ming’’ means broadcast video programming when such programming is retransmitted by satellite and the entity retransmitting such programming is not the broadcaster or an en- tity performing such retransmission on behalf of and with the specific consent of the broad- caster. (4) The term ‘‘satellite broadcast program- ming vendor’’ means a fixed service satellite carrier that provides service pursuant to sec- tion 119 of title 17 with respect to satellite broadcast programming. (June 19, 1934, ch. 652, title VI, § 628, as added Pub. L. 102–385, § 19, Oct. 5, 1992, 106 Stat. 1494; amended Pub. L. 104–104, title III, § 301(h), Feb. 8, 1996, 110 Stat. 117; Pub. L. 115–141, div. P, title IV, § 402(d), Mar. 23, 2018, 132 Stat. 1089.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (e)(2), 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 com- plete classification of this Act to the Code, see section 609 of this title and Tables. AMENDMENTS 2018—Subsecs. (g), (j). Pub. L. 115–141 redesignated subsec. (j) as (g), transferred subsec. (g) to appear after subsec. (f), and struck out former subsec. (g). Prior to amendment, text of subsec. (g) read as follows: ‘‘The Commission shall, beginning not later than 18 months after promulgation of the regulations required by sub- section (c), annually report to Congress on the status of competition in the market for the delivery of video programming.’’ 1996—Subsec. (j). Pub. L. 104–104 added subsec. (j). Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 60 days after Oct. 5, 1992, see section 28 of Pub. L. 102–385, set out as an Effective Date of 1992 Amendment note under section 325 of this title. § 549. Competitive availability of navigation de- vices (a) Commercial consumer availability of equip- ment used to access services provided by multichannel video programming distribu- tors The Commission shall, in consultation with appropriate industry standard-setting organiza- tions, adopt regulations to assure the commer- cial availability, to consumers of multichannel video programming and other services offered over multichannel video programming systems, of converter boxes, interactive communications equipment, and other equipment used by con- sumers to access multichannel video program- ming and other services offered over multi- channel video programming systems, from man- ufacturers, retailers, and other vendors not af- filiated with any multichannel video program- ming distributor. Such regulations shall not prohibit any multichannel video programming distributor from also offering converter boxes, interactive communications equipment, and other equipment used by consumers to access multichannel video programming and other services offered over multichannel video pro- gramming systems, to consumers, if the system operator’s charges to consumers for such devices and equipment are separately stated and not subsidized by charges for any such service. (b) Protection of system security The Commission shall not prescribe regula- tions under subsection (a) which would jeop- ardize security of multichannel video program- ming and other services offered over multi- channel video programming systems, or impede the legal rights of a provider of such services to prevent theft of service. (c) Waiver The Commission shall waive a regulation adopted under subsection (a) for a limited time upon an appropriate showing by a provider of multichannel video programming and other services offered over multichannel video pro- gramming systems, or an equipment provider, that such waiver is necessary to assist the devel- opment or introduction of a new or improved multichannel video programming or other serv- ice offered over multichannel video program- ming systems, technology, or products. Upon an appropriate showing, the Commission shall grant any such waiver request within 90 days of any application filed under this subsection, and such waiver shall be effective for all service pro- viders and products in that category and for all providers of services and products. (d) Avoidance of redundant regulations (1) Commercial availability determinations Determinations made or regulations pre- scribed by the Commission with respect to