§  76.970   Commercial leased access rates.

   (a) Cable operators shall designate channel capacity for commercial use
   by persons unaffiliated with the operator, and that seek to lease a
   programming channel on a full-time basis, in accordance with the
   requirement of 47 U.S.C. 532. For purposes of 47 U.S.C. 532(b)(1)(A)
   and (B), only those channels that must be carried pursuant to 47 U.S.C.
   534 and 535 qualify as channels that are required for use by Federal
   law or regulation. For cable systems with 100 or fewer channels,
   channels that cannot be used due to technical and safety regulations of
   the Federal Government (e.g., aeronautical channels) shall be excluded
   when calculating the set-aside requirement.

   (b) In determining whether an entity is an “affiliate” for purposes of
   commercial leased access, entities are affiliated if either entity has
   an attributable interest in the other or if a third party has an
   attributable interest in both entities.

   (c) Attributable interest shall be defined by reference to the criteria
   set forth in Notes 1-5 to § 76.501 provided, however, that:

   (1) The limited partner and LLC/LLP/RLLP insulation provisions of Note
   2(f) shall not apply; and;

   (2) The provisions of Note 2(a) regarding five (5) percent interests
   shall include all voting or nonvoting stock or limited partnership
   equity interests of five (5) percent or more.

   (d) The maximum commercial leased access rate that a cable operator may
   charge for full-time channel placement on any tier is the average
   implicit fee for full-time channel placement on that tier.

   (e) The average implicit fee identified in paragraph (d) of this
   section shall be calculated by first calculating the total amount the
   operator receives in subscriber revenue per month for the programming
   on the tier on which the channel will be placed, and then subtracting
   the total amount it pays in programming costs per month for that tier
   (the “total implicit fee calculation”). Next, the total implicit fee is
   divided by the number of channels on that tier (the “average implicit
   fee calculation”). The result, the average implicit fee, is the maximum
   rate per month that the operator may charge the leased access
   programmer for a full-time channel on that tier. The license fees for
   affiliated channels used in determining the average implicit fee shall
   reflect the prevailing company prices offered in the marketplace to
   third parties. If a prevailing company price does not exist, the
   license fee for that programming shall be priced at the programmer's
   cost or the fair market value, whichever is lower. The average implicit
   fee shall be calculated annually based on contracts in effect in the
   previous calendar year. The implicit fee for a contracted service may
   not include fees, stated or implied, for services other than the
   provision of channel capacity (e.g., billing and collection, marketing,
   or studio services).

   (f) The maximum commercial leased access rate that a cable operator may
   charge for full-time channel placement as an a la carte service is the
   highest implicit fee on an aggregate basis for full-time channel
   placement as an a la carte service.

   (g) The highest implicit fee on an aggregate basis for full-time
   channel placement as an a la carte service shall be calculated by first
   determining the total amount received by the operator in subscriber
   revenue per month for each non-leased access a la carte channel on its
   system (including affiliated a la carte channels) and deducting the
   total amount paid by the operator in programming costs (including
   license and copyright fees) per month for programming on such
   individual channels. This calculation will result in implicit fees
   determined on an aggregate basis, and the highest of these implicit
   fees shall be the maximum rate per month that the operator may charge
   the leased access programmer for placement as a full-time a la carte
   channel. The license fees for affiliated channels used in determining
   the highest implicit fee shall reflect the prevailing company prices
   offered in the marketplace to third parties. If a prevailing company
   price does not exist, the license fee for that programming shall be
   priced at the programmer's cost or the fair market value, whichever is
   lower. The highest implicit fee shall be based on contracts in effect
   in the previous calendar year. The implicit fee for a contracted
   service may not include fees, stated or implied, for services other
   than the provision of channel capacity (e.g., billing and collection,
   marketing, or studio services). Any subscriber revenue received by a
   cable operator for an a la carte leased access service shall be passed
   through to the leased access programmer.

   (h)(1) Cable system operators shall provide prospective leased access
   programmers with the following information within 30 calendar days of
   the date on which a bona fide request for leased access information is
   made, provided that the programmer has remitted any application fee
   that the cable system operator requires up to a maximum of $100 per
   system-specific bona fide request:

   (i) How much of the operator's leased access set-aside capacity is
   available;

   (ii) A complete schedule of the operator's full-time leased access
   rates;

   (iii) Rates associated with technical and studio costs; and

   (iv) If specifically requested, a sample leased access contract.

   (2) Operators of systems subject to small system relief shall provide
   the information required in paragraph (h)(1) of this section within 45
   calendar days of a bona fide request from a prospective leased access
   programmer. For these purposes, systems subject to small system relief
   are systems that either:

   (i) Qualify as small systems under § 76.901(c) and are owned by a small
   cable company as defined under § 76.901(e); or

   (ii) Have been granted special relief.

   (3) Bona fide requests, as used in this section, are defined as
   requests from potential leased access programmers that have provided
   the following information:

   (i) The desired length of a contract term;

   (ii) The anticipated commencement date for carriage; and

   (iii) The nature of the programming,

   (4) All requests for leased access must be made in writing and must
   specify the date on which the request was sent to the operator.

   (5) Operators shall maintain, for Commission inspection, sufficient
   supporting documentation to justify the scheduled rates, including
   supporting contracts, calculations of the implicit fees, and
   justifications for all adjustments.

   (6) Cable system operators shall disclose on their own websites, or
   through alternate means if they do not have their own websites, a
   contact name or title, telephone number, and email address for the
   person responsible for responding to requests for information about
   leased access channels.

   (i) Cable operators are permitted to negotiate rates below the maximum
   rates permitted in paragraphs (c) through (g) of this section.

   [ 78 FR 20256 , Apr. 4, 2013, as amended at  84 FR 28768 , June 20, 2019;
    85 FR 51367 , Aug. 20, 2020]