Cinnamon Mueller Client Updates

 

FCC Notifies Cable Operators that Online Public Inspection File Requirements to Begin June 24, 2016

On May 12, 2016, the FCC released a Public Notice announcing the effective dates of its online public file requirements on cable systems and the availability of a test version of the online database. 

Beginning June 24, 2016, all cable systems with 1,000 or more subscribers must place their new public inspection file documents in the FCC-hosted online public file database.  Existing public file documents must be uploaded into the FCC-hosted database by December 24, 2016 (subject to exemptions outlined below).

Cable operators may access a test version of the FCC-hosted online public file database to practice uploading documents and to gain familiarity with the database's other features.  The test version is for practice purposes only and all documents uploaded will be deleted once the actual database goes live on June 24, 2016.  

In addition, the FCC plans to conduct a live webinar to demonstrate the FCC-hosted online public file database prior to June 24, 2016.  The Media Bureau will issue a Public Notice with further details regarding the live Webinar, including the date and time, in the near future.

Cable operators should carefully review their existing public inspection files before the online public inspection file requirement takes effect next month.  To assist in that effort, we outline below key changes to the public inspection file rules and new obligations cable operators must satisfy when establishing their online public files. 

Background.  Under the FCC’s existing rules, cable operators must maintain a public inspection file for each cable system at the system office the cable operator maintains for business purposes (or at another accessible place in the community served by the system).  This public inspection file must be made available for inspection during regular business hours.  Certain additional information must be maintained and made available to FCC representatives or local franchise authorities upon request.

Cable public file and recordkeeping requirements vary according to the size of the system.  Systems with fewer than 1,000 subscribers have the fewest obligations.  Systems with more than 5,000 subscribers have the most extensive obligations. 

Online Public File Requirements.  The primary new and revised public inspection file requirements cable operators must meet when the online public file rules take effect are described below.

Small system exemptions.  Cable systems with fewer than 1,000 subscribers are exempt from the requirement to upload their public inspection files to the FCC’s online database.  These systems must continue to maintain their local public inspection files as required under existing rules.

Cable systems serving between 1,000 and 5,000 subscribers, which previously were required to make certain information only available upon request, must now post this information to their online public files.

Document formats and locations.  The FCC did not specify a standard format for the online file.  Cable operators will be required to upload documents to the online file in their existing format, and the FCC will display the documents in both the uploaded format and in a pdf version.  If a required document already exists in a searchable format, documents must be uploaded in that format to the extent technically feasible.  For channel lineups, operators may include in the online database a link to an alternate online location, such as the operator’s website, where this information is maintained.

Back-up political files.  Operators must make back-up copies of their political file documents, so they can be produced if the FCC online database is unavailable.  Operators may meet this back-up requirement by periodically downloading a mirror copy of their online public file, including the political file, or by maintaining a local back-up of the political file.

Website requirements.  Operators with websites must post a link, on their home page, to the first page of the operator’s online public inspection file.  Operators must also include on their home page contact information for a representative who can assist people with disabilities with issues related to the content of the public file, as well as contact information for an individual who can answer questions about the file in general.

With respect to a cable system’s equal employment opportunity (“EEO”) requirements, cable operators must continue to make their EEO materials available on their websites.  Cable operators may meet this obligation by providing a direct link to their EEO materials in their online public file. 

Geographic information.  When first establishing their online public file, cable operators will be required to provide a list of five-digit ZIP codes served by the cable system.  Cable operators with more than one physical system identifier (“PSID”) will be required to identify the ZIP code(s) served by each PSID.

Clarifications Regarding Content of Public Files.  Cable operators will no longer be required to maintain proof-of-performance and signal leakage information in the public inspection file or upload this information to the online file.  Instead, this material must be maintained by the operator and made available to the FCC and local franchise authorities upon request.

Effective Dates for Online File Requirements.  The effective dates of the online file requirements vary depending on system size.

Uploading new materials.  Systems with 1,000 or more subscribers must begin using the online public file for new materials on June 24, 2016With respect to political files only, systems with between 1,000 and 5,000 subscribers are not obligated to begin uploading political file new material until March 1, 2018

Uploading existing materials.  Systems with 1,000 or more subscribers must upload existing materials (except for political file materials) to the online database by December 24, 2016.  Cable operators are not required to upload existing political file materials.  Operators that choose not to upload existing political file materials must maintain the records locally for the remainder of the political file’s two-year retention period.

If you have questions about the cable public file rules or the requirement to post them online, please contact Scott Friedman at (312) 372-3930 or sfriedman@cinnamonmueller.com.

  

FCC and Charter Enter into Consent Decree over Violation of Navigation Device Rules

           

On April 25, 2016, the FCC’s Media Bureau released an Order announcing that it had entered into a Consent Decree with Charter Communications (“Charter”), closing its investigation into whether Charter had violated the FCC’s navigation device rules.  

Under the terms of the Consent Decree, Charter will adopt a three-year compliance plan and make a $640,000 settlement payment to the U.S. Treasury.

Navigation Device Rules.  Section 629 of the Communications Act, as implemented by Section 76.1201 of the FCC’s rules, prohibits MVPDs from preventing the “connection or use of navigation devices,” on their networks unless the navigation device would harm the network, or when the device could be used for the theft of service.

Under the FCC’s rules, navigation devices include “Devices such as converter boxes, interactive communications equipment, and other equipment used by consumers to access multichannel video programming and other services offered over multichannel video programming systems.”  This broad definition includes cable modems, which are used to access “other services” (i.e., broadband Internet access) offered over a cable system.

 

Charter Investigation.  In early 2015, Zoom Telephonics met with FCC staff and alleged that Charter had, over an extended period of time, infringed upon the rights of Charter subscribers to attach and use non-harmful cable modems.  As a result, the Media Bureau open an investigation into these allegations last July when it sent a Letter of Inquiry to Charter seeking additional information.  Charter responded and supplemented its response after discussions with the Media Bureau.  Letters of Inquiry were also sent by the Media Bureau to cable modem manufacturers.

The Media Bureau’s investigation found that, beginning in 2012 and for approximately two years, Charter’s website indicated that, for new and plan-switching customers, Charter would “no longer allow customer-owned modems” on its network and customer service representatives were instructed to inform subscribers and potential subscribers that Charter would no longer allow customer-owned cable modems on its network. 

Despite this notification, the Bureau’s investigation found that Charter, on occasion, did allow customers to attach customer-owned modems.  In late 2014, Charter compiled a list of acceptable modems for use with its network and updated its website to indicate that subscribers could use retail cable modems if the modem was on Charter's approved list.  Charter compiled this list after conducting a number of tests, many of which were not designed to assess harm to its network or theft of service, but were instead directed at ensuring a positive subscriber experience.

After concluding its investigation, the Media Bureau and Charter engaged in settlement negotiations.

 

Consent Decree.  To settle its apparent violations, the Consent Decree requires to Charter to designate a compliance officer, implement a compliance plan, and file compliance reports for a period of three years.  Charter will also make a $640,000 settlement payment to the U.S. Treasury.

            Charter’s costly settlement in addition to the Enforcement Bureau’s stated intent to heighten its enforcement of consumer protection rules serve as an important reminder to cable operators to remain up to date on and in compliance with all applicable FCC rules. 

If you have any questions about the FCC’s navigation device rules, please contact Barbara Esbin at besbin@cinnamonmueller.com or (202) 872-6811, or Scott Friedman at sfriedman@cinnamonmueller.com or (312) 372-3930.

FCC Proposes FY 2016 Cable Regulatory Fees

The Commission has released its proposed Fiscal Year 2016 Regulatory Fees:

  • 2016 Cable/IPTV regulatory fee:  Cable systems (including IPTV systems) that had subscribers as of December 31, 2014 must pay $1.00 per subscriber, a $0.04 increase from 2015. 
  • DBS regulatory fee:  Last year, the FCC made DBS a sub-category of the Cable/IPTV fee category and adopted an initial regulatory fee of $0.12 per subscriber.  The proposed DBS fee for 2016 is $0.27 per subscriber.
  • CARS licenses and permits:  CARS facilities operating on October 1, 2015 must pay $775.00, a $115 increase from 2015, even if the facility’s license expired after October 1, 2015. 
  • Interconnected VoIP regulatory fee:  $0.00370 for each dollar of interstate and international telecommunications revenue that a provider reports on its Form 499-A. 

 

  Following adoption of its FY 2016 Fee Order, the FCC will collect these fees during a filing window later this summer.  All licensees must use their FRN and password to access the Fee Filer System, and review, create, update, or change the fees owed.  Then, each licensee must make payments electronically – online payment with a credit card, online payment from a bank account, or by sending a wire transfer.  Fee Filer will print a Form 159-E for users to transmit via fax for wire transfers. 

If you have any questions about regulatory fee payments, please contact Scott Friedman at (312) 372-3930 or sfriedman@cinnamonmueller.com.