*Pages 1--6 from Microsoft Word - 59000.doc* Federal Communications Commission DA 06- 1595 1 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of Implementation of Section 3 of the Cable Television Consumer Protection and Competition Act of 1992 Statistical Report on Average Rates for Basic Service, Cable Programming Service and Equipment ) ) ) ) ) ) ) ) ) MM Docket No. 92- 266 ORDER Adopted: August 9, 2006 Released: August 10, 2006 Responses Due: September 15, 2006 By the Chief, Media Bureau: I. INTRODUCTION 1. Section 623( k) of the Communications Act, as amended by the Cable Television Consumer Protection and Competition Act of 1992 (“ 1992 Cable Act”), 1 requires the Commission to publish annually a statistical report on average rates for basic cable service, cable programming service, and equipment. 2 The Act also requires the Commission to compare the average rates of cable operators found to be subject to effective competition with those of operators not subject to effective competition. 3 1 Section 623( k) was adopted as Section 3( k) of the 1992 Cable Act, Pub. L. No. 102- 385, 106 Stat. 1460, codified at 47 U. S. C. § 543( k). 2 47 U. S. C. § 543( k). The 1992 Cable Act defines basic cable service as that tier of service that includes the retransmission of local television broadcast signals. See 47 U. S. C. § 543( b)( 7). Cable programming service is defined as any video programming other than (A) video programming carried on the basic service tier, and (B) video programming offered on a per channel or per program basis. See 47 U. S. C. § 543( k)( 1)( 2). Equipment refers to a converter box, remote control, and other equipment necessary to access programming. See 47 U. S. C. § 543( b)( 3). 3 Effective competition exists where the Commission has found that a multi- channel video programming distributor (“ MVPD”) meets one of four tests within its franchise area: (1) fewer than 30% of households subscribe to the service of the cable system (herein referred to as the “low penetration test”); (2) at least two MVPDs serve 50% or more of households and at least 15% of those households take service other than from the largest MVPD (the “overbuild test”); (3) a municipal MVPD offers service to at least 50% of households (the “municipal test”); (4) a local exchange carrier (“ LEC”) or its affiliate (or any MVPD using the facilities of the LEC or its affiliate) offers (continued.…) 1 Federal Communications Commission DA 06- 1595 2 2. To implement the requirements of Section 623( k), the Media Bureau, in an Order released February 13, 2006, directed certain randomly selected cable operators to respond to a price survey questionnaire. Subsequently, the Bureau decided to expand its 2006 price survey by adding additional questions in the form of a supplemental questionnaire. A copy of this supplemental questionnaire, along with instructions for completing and returning the questionnaire, is attached to this Order as Appendix B. The cable operators selected for our sample must complete and return this supplemental questionnaire no later than September 15, 2006. 3. The supplemental questionnaire seeks to obtain information on the availability and price of several services that were not covered by our earlier questionnaire. These include such services as family tiers, channels sold on an individual basis, and the so- called “double play” and “triple play” services, as well as several questions related to the availability of commercial leased access and the allocation of system capacity to advanced services. The supplemental questionnaire asks for most of this information as of July 1, 2006. There are also several questions that ask for information as of January 1, 2006, and for the month of January 2006. 4 4. The group of cable operators selected to complete this supplemental questionnaire is the same group that was randomly selected earlier this year to complete the earlier 2006 survey questionnaire. As with the earlier survey, a completed questionnaire is required for each community selected for the supplemental survey. If more than one community is selected from any cable system, the cable operator should complete a separate questionnaire for each community unit identification (“ CUID”) number selected. 5. Data submitted in response to this supplemental survey will be made available to the public in aggregate form only as averages representing segments of the industry. If individual respondents to the survey wish to request confidential treatment of any data provided in connection with this survey, in accordance with Sections 0.457 and 0.459 of the Commission’s rules, they should request such confidentiality in writing and identify clearly the specific information they wish to protect. They also should provide, as required by the rules, a complete explanation of why such treatment is appropriate. This request for confidentiality should be submitted in the same manner as the completed questionnaire( s), as described in Appendix B. Whether or not any respondent requests confidentiality, no data from individual respondents, or data that can be used to identify individual respondents either directly or indirectly, will be released to the public. 6. Accordingly, IT IS ORDERED pursuant to Section 3 of the 1992 Cable Act (Section 623( k) of the Communications Act of 1934, as amended), 47 U. S. C. 543( k), and Section 4( i) of the Communications Act of 1934, as amended, 47 U. S. C. 154( i), that cable operators subject to the price (… continued from previous page) video programming service (other than direct broadcast satellite (“ DBS”) service) comparable to the service of an unaffiliated MVPD (the “LEC test”). See 47 U. S. C. § 543( 1)( 1)( A- D). 4 We are mindful of the need to limit administrative burdens associated with this price survey. We anticipate that the burdens faced by responding cable operators should be limited, as the information requested is of the type that should be readily available to operators. Suggestions for reducing the burden may be sent to the Commission. For further information, see the notice contained in Appendix A of this Order regarding the Privacy Act and Paperwork Reduction Act. 2 Federal Communications Commission DA 06- 1595 3 survey requirement described herein shall complete and return the supplemental questionnaire set forth in the attached Appendix B no later than September 15, 2006. FEDERAL COMMUNICATIONS COMMISSION Donna C. Gregg Chief, Media Bureau 3 Federal Communications Commission DA 06- 1595 4 APPENDIX A 2006 Cable Industry Price Survey -- Supplemental Questionnaire FCC NOTICE TO INDIVIDUALS REQUIRED BY THE PRIVACY ACT AND THE PAPERWORK REDUCTION ACT The solicitation of information in this form is authorized by Section 623( k) of the Communications Act, as amended. This form has been approved by the Office of Management and Budget, under OMB control number 3060- 0647 (expiration date: August 31, 2009). The public reporting burden for this information collection is estimated to average 2.0 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and entering the data needed, and completing and reviewing the questionnaire. Suggestions for reducing the burden may be included on the note page contained in the questionnaire. Alternatively, send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to the Federal Communications Commission, Records Management Division, Washington, D. C. 20554. (Do not send completed survey questionnaires to this address.) The above notice is required by the Privacy Act of 1974, Pub. L. No. 93- 579, 88 Stat. 1897, codified at 5 U. S. C. § 552a( e)( 3), and the Paperwork Reduction Act of 1995, Pub. L. No. 104- 13, 109 Stat. 163, codified at 44 U. S. C. § 3507. 4 Federal Communications Commission DA 06- 1595 5 APPENDIX B 2006 Cable Industry Price Survey -- Supplemental Questionnaire GENERAL INSTRUCTIONS General Information: Complete the attached supplemental questionnaire to the best of your ability. Please read these instructions before completing the survey. In addition, refer to the questionnaire for guidance on answering specific questions. This is important because it is essential that all operators use the same definition for each question. Please complete a questionnaire for each CUID listed in the attachment to the letter accompanying this Order. We request information on the availability and prices charged for certain services at the community level. For other services, we request information at the system level. The survey uses the cable system as a point of reference for many questions because we have found that cable operators responding to this survey are more likely to maintain, or are better able to estimate, information at the system level than at the community level. In defining cable system, use the smallest physical system area surrounding the community for which you maintain separate subscriber information for the services you provide. Background: The supplemental questionnaire seeks to obtain information on the availability and price of several services that were not covered by our earlier questionnaire. These include such services as family tiers, channels sold on an individual basis, and the so- called “double play” and “triple play” services. In addition, there are several questions related to the availability of commercial leased access and the allocation of system capacity to advanced services. Tier Definitions: Basic Service Tier (BST) is the package of channels (or tier) that includes the retransmission of local broadcast stations and public, educational and governmental (PEG) channels. It also may include commercial leased access channels, local origination channels, and a few satellite or regional channels. Expanded Basic Tier (also known as the “Cable Programming Service Tier”) is any package or tier of channels other than the BST or programming offered as pay- per- program or pay- per- channel. Family Tier is any tier of service other than the BST or the Expanded Basic Tier that provides a package of “family friendly” programming. Usually, this tier is offered at a lower rate than the Expanded Basic Tier and has fewer channels than the Expanded Basic Tier. Also, it usually is offered as a substitute for, rather than in addition to, the Expanded Basic Tier. Responding Official: A company official who is familiar with the services offered and rates charged by the cable system should complete this survey. How to download the survey from the Commission’s Internet web site: Download the questionnaire in computer spreadsheet format at http:// www. fcc. gov/ mb/ 2006, located on the Commission’s Internet site. The questionnaire is available as a Microsoft Excel workbook. How to return the survey to the Commission: Responses must be received no later than September 15, 2006. Please return the completed questionnaire( s) as an attachment to an e- mail addressed to cablesurvey@ fcc. gov. Alternatively, we request that you messenger- deliver the questionnaire( s), or 5 Federal Communications Commission DA 06- 1595 6 deliver them by commercial overnight carrier, to the address specified below. In selecting any of these options, please ensure that the electronic survey file you send is virus free using virus- detection software. If you are filing by e- mail, no paper copy of the completed questionnaire need be sent. If you are using one of the other options listed below, please send one paper copy and one CD or 3.5- inch diskette containing the completed questionnaire. Please do not send a CD or diskette containing the completed questionnaire via regular mail because the mail screening techniques used by the Agency will render them useless. You may send CDs and diskettes via commercial overnight delivery or via messenger. If you do not have access to a computer, two paper copies will be accepted in lieu of an electronic filing. E- Mail: We encourage the use of e- mail to facilitate the return of completed questionnaires. Attach the completed questionnaire as an Excel attachment to an e- mail message sent to the following address, which was established uniquely for this purpose: cablesurvey@ fcc. gov. Only FCC employees participating in the analysis of the survey will have access to this account. Responses will be protected to ensure that after being received by the FCC they are secure from unauthorized access. No paper copy of the survey need be sent. Commercial overnight delivery: You may return completed questionnaires via a commercial overnight delivery service. Responses should be delivered to 9300 East Hampton Drive, Capitol Heights, MD 20743, between 8: 00 a. m. and 5: 30 p. m. Please address responses to Media Bureau, Federal Communications Commission, Attention: Cable Price Survey. Deliver one paper copy and one CD or 3.5- inch diskette containing the completed questionnaire in Excel format. Messenger delivery: The Commission’s contractor, Natek, Inc., will receive messenger- delivered filings at 236 Massachusetts Avenue N. E., Suite 110, Washington, D. C. 20002, between 8: 00 a. m. and 7: 00 p. m. Envelopes must be disposed of before entering the building. Therefore, attach a cover page to one paper copy of the questionnaire, addressed to Media Bureau, Federal Communications Commission, Attention: Cable Price Survey. Fasten together that paper copy and a CD or 3.5- inch diskette containing the completed questionnaire in Excel format, and deliver to the above address. Confidentiality: If any individual respondent to the survey wishes to request confidential treatment of any data provided in connection with this survey, in accordance with Sections 0.457 or 0.459 of the Commission’s rules, the respondent should request such confidentiality in writing and identify clearly the specific information to be protected. The respondent also should provide, as required by the rules, a complete explanation of why such treatment is appropriate. The request for confidentiality should accompany the completed questionnaire( s). If you are responding by e- mail, attach the request to the same e- mail as the completed questionnaire( s) and send it to cablesurvey@ fcc. gov. If you are responding by commercial overnight delivery or messenger delivery, attach the request to the completed questionnaire( s) and deliver it to the appropriate address given above. If You Need Help: If you have any questions regarding the content of the questionnaire, the definitions to be used in answering specific questions, or the method of filing, please call John Scott of the Media Bureau at (202) 418- 2330, Monday through Friday, between 9: 00 a. m. and 5: 30 p. m. (EST), for assistance. 6