Sec.  76.986   “A la carte” offerings.

   (a) Collective offerings of unregulated per-channel or per-program (“a la
   carte”) video programming shall be regulated as CPSTs pursuant to  Sec. 76.922.
   For purposes of this section, “multiplexed” channels shall be treated as one
   channel.

   (b) A discounted package price offered by a cable system is not unreasonable
   with  respect  to any collective offering of channels if the component
   channels' collective offering also have been continuously available on the
   system on a per channel basis since April 1, 1993.

   (c) A collective offering of per channel offerings may be treated as New
   Product Tier if:

   (1) The collective offering meets the conditions set forth in  Sec. 76.987; or

   (2) The operator had reasonable grounds to believe the collective offering
   involving  only  a small number of migrated channels complied with the
   Commission's requirements as of the date it was first offered.

   (d) In reviewing a basic service rate filing, local franchising authorities
   may make an initial decision addressing whether a collective offering of “a
   la carte” channels will be treated as a cable programming service tier that
   is an NPT under  Sec. 76.987 or a CPST that is regulated under  Sec. 76.922. The
   franchising authority must make this initial decision within the 30 day
   period established for review of basic cable rates and equipment costs in
    Sec. 76.933(a), or within the first 60 days of an extended 120 day period (if
   the franchise authority has requested an additional 90 days) pursuant to
    Sec. 76.933(b). The franchising authority shall provide notice of its decision
   to the cable system and shall provide public notice of its initial decision
   within seven days pursuant to local procedural rules for public notice.
   Operators or consumers may make an interlocutory appeal of the initial
   decision to the Commission within 14 days of the initial decision. Operators
   shall provide notice to franchise authorities of their decision whether or
   not to appeal to the Commission within this period. Consumers shall provide
   notice  to  franchise  authorities  of their decision to appeal to the
   Commission within this period.

   (e) A limited initial decision under paragraph (b) of this section shall
   toll the time periods under  Sec. 76.933 within which local authorities must
   decide local rate cases. The time period shall resume running seven days
   after  the  Commission decides the interlocutory appeal, or seven days
   following the expiration of the period in which an interlocutory appeal
   pursuant to paragraph (b) of this section may be filed.

   (f)  A  local franchising authority alternatively may decide whether a
   collective offering of “a la carte” channels will be treated as an NPT as a
   part of its final decision setting rates for the basic service tier. That
   decision  may then be appealed to the Commission as provided for under
    Sec. 76.945.

   [ 59 FR 62625 , Dec. 6, 1994]