Federal Communications Commission
Washington, D.C. 20554
May 27, 2009
DA 09-1154
Small Entity Compliance Guide
Exemption From High Definition Carriage 
Requirements For Certain Small Systems
FCC No. 08-193
CS Docket No. 98-120
Released September 4, 2008
This Guide is prepared in accordance with the requirements of Section 212 of 
the Small Business Regulatory Enforcement Fairness Act of 1996.  It is intended 
to help small entities—small businesses, small organizations (non-profits), and 
small governmental jurisdictions—comply with the new rules adopted in the 
above-referenced FCC rulemaking docket.  This Guide is not intended to 
replace the rules, which provide the final authority in this context.  Although we 
have attempted to cover all parts of the rules that might be especially important 
to small entities, the coverage may not be exhaustive.  This Guide might not 
apply in a particular situation based upon the circumstances, and the FCC 
retains the discretion to adopt approaches on a case-by-case basis that may 
differ from this Guide.  Any decisions regarding a particular small entity will be 
based on application of the statute and regulations.  Interested parties are free 
to file comments regarding this Guide and its application to a particular 
situation; the FCC will consider whether the recommendations or 
interpretations in the Guide are appropriate in that situation.  The FCC may 
revise this Guide without public notice to clarify or update its contents.  Direct 
your comments and recommendations, or calls for further assistance, to the 
FCC’s Consumer Center:
1-888-CALL-FCC (1-888-225-5322)
 TTY:  1-888-TELL-FCC (1-888-835-5322)
 
Fax:  202-418-0232
fccinfo@fcc.gov
2
Background
On September 4, 2008, the Federal Communications Commission released a Fourth Report and Order in 
CS Docket No. 98-120.  The Docket was established to address the mandatory carriage obligations of 
cable operators during and after the nationwide transition to digital television (DTV).  The Report and 
Order establishes an exemption from the material degradation requirement to carry high definition 
(“HD”) broadcast signals on certain small cable systems.
Compliance Requirements
Reliance on the exemption established in the Report and Order is voluntary for operators of small systems 
who choose not to carry all local HD broadcast signals in HD. In order to qualify, a cable system must 
have 2,500 or fewer subscribers and not be affiliated with a cable operator serving more than 10% of all 
multichannel video programming distributor subscribers, or it must have an activated capacity of 552 
MHz or less.  A system meeting either or both of these criteria may decline to comply with the material 
degradation obligation to carry the HD version of a broadcast signal.1 All operators must continue to 
ensure that every subscriber to a cable system is able to view every must-carry signal, by downconverting 
it if necessary and carrying it in a format or formats that can be viewed by all subscribers.  The 
Commission will review these material degradation exemptions between February 18, 2011 and February 
17, 2012, and they will expire on February 17, 2012 if not renewed.
Internet Link and Citations
Fourth Report and Order, 23 FCC Rcd 13618 (2008); 73 Fed. Reg. 61742 (Oct. 17, 2008); 
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-193A1.doc  
  
1 47 C.F.R. § 76.62(b).