§  73.642   Subscription TV service.

   (a) Subscription TV service may be provided by:

   (1) Licensees and permittees of commercial and noncommercial TV
   stations, and

   (2) Licensees and permittees of low power TV stations.

   (b) A licensee or permittee of a commercial or noncommercial TV station
   or a low power TV station may begin subscription TV service upon
   installation of encoding equipment having advance FCC approval.
   However, the licensee or permittee of a TV broadcast station (not
   applicable to low power TV stations) must send a letter to the FCC in
   Washington, DC, that subscription TV service will commence at least 30
   days prior to commencement of such service. In that letter, to be
   entitled "Notice of Commencement of STV Operations," the licensee or
   permittee is to state that it will comply with the provisions of
   paragraphs (e)(1) through (e)(3) and § 73.644(c) of this chapter and
   identify the make and type of encoding system to be used. A similar
   notice must be submitted if the licensee or permittee commences using
   another type of encoding system. (See section 644(h).) A notice must
   also be submitted to the FCC in Washington, DC, if encoded subscription
   TV service is to be discontinued, at least 30 days prior to such
   discontinuance.

   (c) The station proof of system compliance measurement data (see
   § 73.644(c)) need not be submitted to the FCC, however, the measurement
   data must be available to the FCC upon request.

   (d) The use of the visual vertical blanking interval or an aural
   subcarrier for transmitting subscriber decoder control code signals
   during periods of normal non-encoded programming may be used only upon
   specific FCC authorization. Letter requests to use either the video
   blanking intervals or aural subcarriers during periods of
   non-subscription programming are to be sent to the FCC in Washington,
   D.C.

   (e) A licensee or permittee of a commercial or noncommercial TV
   broadcast or low power TV station may not transmit a subscription
   service if it has a contract, arrangement, or understanding expressed
   or implied, that:

   (1) Prevents or hinders it from rejecting or refusing any subscription
   TV broadcast program that it reasonably believes to be unsatisfactory
   or unsuitable or contrary to the public interests; or substituting a
   subscription or conventional program that, in its opinion, is of
   greater local or national importance; or

   (2) Delegates to any other person the right to schedule the hours of
   transmission of subscription programs. However, this rule does not
   prevent a licensee or permittee from entering into an agreement or
   arrangement whereby it agrees to schedule a specific subscription TV
   broadcast program at a specific time or to schedule a specific number
   of hours of subscription programs during the broadcast day (or segments
   thereof) or weeks; or

   (3) Deprives it of the right of ultimate decision concerning the
   maximum amount of any subscription program charge or fee.

   (4) Has provisions that do not comply with the following policies of
   the FCC:

   (i) Unless a satifactory signal is unavailable at the location where
   service is desired, subscription TV service must be provided to all
   persons desiring it within the Grade A contour of the station
   broadcasting subscription programs. Geographic or other reasonable
   patterns of installation for new subscription services is permitted
   and, for good cause, service may be terminated.

   (ii) Charges, terms and conditions of service to subscribers must be
   applied uniformly. However, subscribers may be divided into reasonable
   classifications approved by the FCC, and the impositions of different
   sets of terms and conditions may be applied to subscribers in different
   classifications. Further, for good cause, within such classification,
   deposits may be required from some subscribers and not of others; and,
   also for good cause, if a subscription system generally uses a
   credit-type decoder, cash operated decoders may be installed for some
   subscribers.

   [ 48 FR 56392 , Dec. 21, 1983, as amended at  52 FR 6154 , Mar. 2, 1987;  66 FR 58982 , Nov. 26, 2001]