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 1997 FR 62625 , Dec. 6, 1994]