FCC 76.503 Revised as of October 1, 2007
Goto Year:2006 |
2008
Sec. 76.503 National subscriber limits.
(a) Subject to paragraph (b) of this section, no cable operator shall serve
more than 30% of all multichannel-video programming subscribers nationwide
through multichannel video programming distributors owned by such operator
or in which such cable operator holds an attributable interest.
(b) Cable subscribers that a cable operator does not serve through incumbent
cable franchises shall be excluded from the cable operator's limit.
(c) For purposes of this section, “incumbent cable franchise” means a cable
franchise in existence as of October 20, 1999 and all successors in interest
to these franchises.
(d) Subscribers that a cable operator serves through incumbent cable
franchises shall include all subscribers served by those incumbent cable
franchises, regardless of when the subscribers were added to the incumbent
cable franchise system.
(e) “Multichannel video-programming subscribers” means subscribers who
receive multichannel video-programming from cable systems, direct broadcast
satellite services, direct-to-home satellite services, BRS/EBS, local
multipoint distribution services, satellite master antenna television
services (as defined in Sec. 76.5(a)(2)), and open video systems.
(f) “Cable operator” means any person or entity that owns or has an
attributable interest in an incumbent cable franchise.
(g) Prior to acquiring additional multichannel video-programming providers,
any cable operator that serves 20% or more of multichannel video-programming
subscribers nationwide shall certify to the Commission, concurrent with its
applications to the Commission for transfer of licenses at issue in the
acquisition, that no violation of the national subscriber limits prescribed
in this section will occur as a result of such acquisition.
Note 1 to Sec. 76.503: Certifications made under this section shall be sent to
the attention of the Media Bureau, Federal Communications Commission, 445
12th Street, SW., Washington, DC 20554.
Note 2 to Sec. 76.503: Attributable Interest shall be defined by reference to
the criteria set forth in Notes 1 through 5 to Sec. 76.501 provided however,
that:
(a) Notes 2(f) and 2(g) to Sec. 76.501 to shall not apply;
(b)(1) Subject to Note 2(i) to Sec. 76.501, a limited partnership interest shall
be attributed to a limited partner unless that partner is not materially
involved, directly or indirectly, in the management or operation of the
video programming-related activities of the partnership and the relevant
entity so certifies. An interest in a Limited Liability Company (“LLC”) or
Registered Limited Liability Partnership (“RLLP”) shall be attributed to the
interest holder unless that interest holder is not materially involved,
directly or indirectly, in the management or operation of the video
programming-related activities of the partnership and the relevant entity so
certifies.
(2) In the case of a limited partnership, in order for an entity to make the
certification set forth in paragraph (b)(1) of this section, it must verify
that the partnership agreement or certificate of limited partnership, with
respect to the particular limited partner exempt from attribution,
establishes that the exempt limited partner has no material involvement,
directly or indirectly, in the management or operation of the video
programming activities of the partnership. In the case of an LLC or RLLP, in
order for an entity to make the certification set forth in paragraph (g)(1)
of this section, it must verify that the organizational document, with
respect to the particular interest holder exempt from attribution,
establishes that the exempt interest holder has no material involvement,
directly or indirectly, in the management or operation of the video
programming activities of the LLC or RLLP. The criteria which would assume
adequate insulation for purposes of these certifications are described in
the Report and Order, FCC No. 99–288, CS Docket No. 98–82 (released October
20, 1999). In order for the Commission to accept the certification, the
certification must be accompanied by facts, e.g. in the form of documents,
affidavits or declarations, that demonstrate that these insulation criteria
are met. Irrespective of the terms of the certificate of limited partnership
or partnership agreement, or other organizational document in the case of an
LLC or RLLP, however, no such certification shall be made if the individual
or entity making the certification has actual knowledge of any material
involvement of the limited partners, or other interest holders in the case
of an LLC or RLLP, in the management or operation of the video-programming
activities of the partnership or LLC or RLLP.
(3) In the case of an LLC or RLLP, the entity seeking insulation shall
certify, in addition, that the relevant state statute authorizing LLCs
permits an LLC member to insulate itself as required by our criteria.
(c) Officers and directors of an entity covered by this rule are considered
to have a cognizable interest in the entity with which they are so
associated. If any such entity engages in activities other than
video-programming activities, it may request the Commission to waive
attribution for any officer or director whose duties and responsibilities
are wholly unrelated to the entity's video-programming activities. In the
case of common or appointed directors and officers, if common or appointed
directors or officers have duties and responsibilities that are wholly
unrelated to video-programming activities for both entities, the relevant
entity may request the Commission to waive attribution of the director or
officer. The officers and directors of a parent company of a
video-programming business, with an attributable interest in any such
subsidiary entity, shall be deemed to have a cognizable interest in the
subsidiary unless the duties and responsibilities of the officer or director
involved are wholly unrelated to the video-programming subsidiary, and a
certification properly documenting this fact is submitted to the Commission.
The officers and directors of a sister corporation of a cable system shall
not be attributed with ownership of that entity by virtue of such status.
[ 64 FR 67195 , 67199, Dec. 1, 1999, as amended at 67 FR 13234 , Mar. 21, 2002;
69 FR 72046 , Dec. 10, 2004]
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