[Federal Register Volume 59, Number 102 (Friday, May 27, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-13146] [[Page Unknown]] [Federal Register: May 27, 1994] ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 76 [CS Docket No. 94-48; FCC 94-119] Competition in the Market for the Delivery of Video Programming AGENCY: Federal Communications Commission. ACTION: Notice of inquiry. ----------------------------------------------------------------------- SUMMARY: This Notice of Inquity (Inquiry) in CS Docket No. 94-48 results from a directive to the Commission included in the Cable Television Consumer Protection and Competition Act of 1992 (``1992 Cable Act''), to prepare snd submit a report on the status of competition in the market for the delivery of video programming to Congress, 18 months after promulgation of the program access regulations, or, October 1, 1994, and annually, thereafter. In this Inquiry, the Commission intends to gather information to prepare a preliminary analysis on the current state of competition to cable television provided by alternative distribution technologies, to collect data and information on the practices of video programming vendors and distributors, to identify the information required to write subsequent comprehensive annual reports to Congress, and to identify the appropriate means for collecting such information in the future. DATES: Comments may be filed on or before June 29, 1994; reply comments may be filed on or before July 29, 1994. ADDRESSES: Federal Communications Commission, Washington, DC 20554. FOR FURTHER INFORMATION CONTACT:Diane L. Hofbauer at (202) 416-0856, or Nina M. Sandman at (202) 416-0856, Cable Services Bureau, Competition Division. SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's Notice of Inquiry (Inquiry) in CS Docket No. 94-48, adopted May 19, 1994, and released May 19, 1994. The full text of this Inquiry is available for inspection and copying during normal business hours in the FCC Reference Center (Room 239), 1919 M Street, NW., Washington, DC, and may also be purchased from the Commission's copy contractor, International Transcription Services, (202) 857-3800, 2100 M Street NW., suite 140, Washington, DC 20037. Synopsis of Notice of Inquiry 1. The Inquiry stesses that a primary goal of the 1992 Cable Act was to promote increased competition in the delivery of cable television services. Section 19(g) of the 1992 Cable Act directed the Commission to annually report to Congress on the status of competition in the market for the delivery of video programming. The first report must be submitted to Congress no later than October 1, 1994. The Commission believes that it must engage in an ongoing process of evaluating the status of competition to cable television in order to meet this annual reporting requirement. 2. The goals of this Inquiry are threefold: (1) To gather information sufficient to prepare a preliminary analysis for Congress of the current state of competition to cable provided by alternative distribution technologies; (2) to collect information on whether and the extent to which the conduct and practices of multichannel video programming vendors and distributors have changed; and (3) to identify the information required to enable the Commission to prepare more comprehensive analyses in our future reports and the appropriate means of obtaining it. 3. The Inquiry asks questions about the suitable means of analyzing the relevant programming and distribution markets. To assist the Commission in conducting its analysis, the Inquiry seeks comment on relevant economic methodologies, including structure-conduct- performance analyses and their complementary antitrust concepts, contestable market theory, and transaction cost economics. 4. The Inquiry also seeks to establish a reference point for future comparisons of the status of the multichannel video programming marketplace by updating the information contained in Appendix G of the Commission's 1990 Cable Report to Congress (``1990 Report'') with respect to horizontal ownership levels and vertical integration. 55 FR 32631 (8/10/90). 5. For this first annual report to Congress, the Commission will undertake a preliminary assessment of the status of competition at the local level in the video programming marketplace. The Inquiry notes that competition to cable television is currently provided to a limited extent by ``wireless cable'' systems, high-power and medium-power direct broadcast satellite (``DBS'') services, direct-to-home satellite services, satellite master antenna television (``SMATV'') systems, telephone technologies (such as video dialtone), cable overbuilds, and over-the-air television broadcasting. 6. The Inquiry notes that there have been various significant technological changes since the 1990 Report. For example, since local telephone exchange carriers are now seen as providing competition to cable, the Inquiry seeks comment on how the Commission should approach and address video dialtone in the context of its report. Also, the Inquiry addresses digital compression, as well as entry into the video programming distribution market by other providers such as electric or other utility companies, and the implications of their entry. 7. With respect to analysis of horizontal ownership and vertical integration in the cable industry, the Inquiry notes that substantial reliance was placed on the 1990 Report when establishing the subscriber and channel occupancy limits. The Inquiry seeks to gather data to create a baseline that may be used to provide a comprehensive report, and that will also aid the Commission in its periodic review of the appropriateness of those limits. 8. In addition, the Inquiry proposes to gather information on the existence and extent of affiliations, including, but not limited to, investments, joint ventures, and partnerships between multichannel video programming distributors and other communications companies. Comment is sought on how these and other types of business relationships will affect the cost, quality, and variety of video programming. The Inquiry acknowledges that some information that could be requested might include proprietary or otherwise confidential information or data. Comment is requested on how the Commission should gather, examine, protect or release such information and data, and on possible methods for protecting individual confidentiality. 9. The Inquiry seeks comments on the effect that the 1992 Cable Act and the Commission's implementing rules, and the effect of the changes in the multichannel video marketplace resulting from the 1992 Act and rules, have had on the entry and development of competitors in the marketplace, e.g., negotiations, sales, marketing, and carriage practices. 10. The Inquiry also seeks to determine whether anticompetitive practices in the multichannel video programming and distribution markets have diminished, and whether new and potentially anticompetitive conduct has developed. To the extent commenters express continued concerns about the existence of undue market power by cable operators, other multichannel video programming distributors, or vertically integrated programming vendors engaging in conduct that is not encompassed within the Commission's rules, they are requested to suggest regulatory responses that will address them. 11. Since the Inquiry acknowledges that it may be desirable in the future to establish more systematic reporting procedures, it seeks comments on specific studies, survey methodologies, etc. that the Commission might undertake to gather the information that will enable it to prepare accurate and comprehensive reports. The Inquiry seeks comment on whether the Commission should adopt annual reporting requirements on various licensees providing multichannel video programming distribution services and on vertically integrated programming vendors, and what such reporting requirements should entail. 12. The Inquiry emphasizes that the Commission wishes to gather and compile all of this information without unduly burdening the information providers. Thus, the Inquiry seeks comment on the least intrusive means for gathering the necessary information and data. Administrative Matters Ex Parte. This is a non-restricted proceeding subject to 47 CFR Sec. 1.1206(b)(2). Comments. Interested parties may file comments on or before June 29, 1994, and reply comments on or before July 29, 1994. List of Subjects in 47 CFR Part 76 Cable television. Federal Communications Commission. William F. Caton, Acting Secretary. [FR Doc. 94-13146 Filed 5-26-94; 8:45 am] BILLING CODE 6712-01-M