Federal Communications Commission DA 98-2219 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of: ) )Complaint of Reading Broadcasting, Inc. ) CSR-5258-M against Comcast Cablevision of ) Gloucester County ) ) Request for Carriage ) MEMORANDUM OPINION AND ORDER Adopted: October 29, 1998 Released: November 3, 1998 By the Acting Chief, Consumer Protection and Competition Division, Cable Services Bureau: INTRODUCTION 1. Reading Broadcasting, Inc., licensee of Television Broadcast Station WTVE (Ind., Ch. 51), Reading, Pennsylvania, has filed a must carry complaint against Comcast Cablevision of Gloucester County ("Comcast") for that cable operator's failure to carry WTVE on its system serving Woodbury, New Jersey. 1 An opposition to this complaint was filed on behalf of Comcast to which WTVE replied.2 BACKGROUND 2. Pursuant to Section 614 of the Communications Act and implementing rules adopted by the Commission in its Implementation of the Cable Television Consumer Protection and Competition Act of 1992 ("Must Carry Order"), 3 commercial television broadcast stations are entitled to assert mandatory carriage rights on cable systems located within the station's market. A station's market for this purpose is its "area of dominant influence," or ADI, as defined by the Arbitron audience research organization.4 'According to Comcast, its Woodbury system also serves the communities of Westville, Deptford, National Park, West Deptford, Woodbury Heights, Clayton, Glassboro, Mantua, Wenonah, East Greenwich, Paulsboro and Greenwich, New Jersey. 2At the time it filed its reply, WTVE filed a motion to strike Comcast's opposition as WTVE was not supplied with a copy at the time the opposition was filed. In view of the fact that we are considering Comcast's arguments herein, we reject WTVE's motion to strike. 38 FCC Red 2965, 2976-2977 (1993). 4Section614(h)(l)(C) of the Communications Act, as amended by the Telecommunications Act of 1996, provides that a station's market shall be determined by the Commission by regulation or order using, where available, commercial publications which delineate television markets based on viewing patterns. See47 U.S.C. §534(h)(l)(C). Section 76.55(e) of the Commission's rules provides that the ADIs to be used for purposes of the initial implementation of the mandatory carriagerules are those published in Arbitron's 1991-1992 Television Market Guide. The Commission recently concluded that it was appropriate to switch market definitions from ADIs to Nielsen Media 22587 Federal Communications Commission DA 98-2219 SUMMARY OF ARGUMENTS 3. In support of its complaint, WTVE states that it is located within the Philadelphia, Pennsylvania ADI, as is Comcast's Woodbury, New Jersey system, and it is thus entitled to must carry status provided it delivers a good quality signal to the system's headend. WTVE indicates that, after paying the costs to engage a professional tower contractor to temporarily install receiving equipment at the Woodbury headend tower, it conducted signal quality tests on March 4, 1997 and found its signal achieved a -35 dbMv with a carrier-to-noise ration of +49 db. Since this result was within the signal strength criteria mandated by the Commission, WTVE states that it requested carriage on Comcast's system by letter dated March 5,1997. WTVE states that negotiations then commenced between Comcast and WTVE's principals in order to seek a schedule for carriage that would be least disruptive to Comcast and its subscribers, but it recently became apparent that these negotiations would not result in carriage. On January 19, 1998, WTVE indicates that it sent a certified letter to Comcast requesting expedition of the negotiations, but Comcast's response suggested that any further negotiations should wait until the Commission decided a pending ADI modification reconsideration filed by WTVE.5 Although WTVE states that it submitted a further letter indicating that there were no similar issues between its current must carry request and the pending ADI reconsideration and requested the opportunity to permanently install necessary receiving equipment, no response was received to that letter, as well as an April 30, 1998 letter informing Comcast that it was in violation of the must carry requirements. WTVE therefore requests that the Commission order Comcast to commence carriage of its signal. 4. In opposition, Comcast argues initially that WTVE's complaint was not timely filed. Comcast points out that although it failed to respond to WTVE's March 5, 1997 request for carriage with 30 days, WTVE waited more than a year to file its must carry complaint. Comcast states that §76.61(cX4X»0 f the rules indicates that "[N]o must-carry complaint filed pursuant to §76.61(a) will be accepted if filed more than sixty (60) days after the date of the specific event described in this paragraph."6 Comcast maintains that the "specific event" in this instance was its failure to respond to WTVE's March 5th request for carriage. Comcast argues that WTVE missed even a second opportunity to file a timely complaint when Comcast responded on February 2, 1998 to WTVE's January 19, 1998 letter reiterating its carriage request. In any event, Comcast argues that signal strength tests it performed at its headend indicate that WTVE fails to deliver a good quality signal.7 While WTVE may continue to attempt to provide an Research's designated market areas ("DMAs") for must-carry/retransmission consent elections. See Definition of Markets for Purposes of the Cable Television Mandatory Television Broadcast Signal Carriage Rules, Report and Order and Further Notice of Proposed Rule Making, CS Docket No. 95-178, 11 FCC Red 6201 (1996) ("Market Modification Report and Order"). In its Market Modification Report and Order, the Commission decided to use Arbitron's 1991-1992 Television ADI Market Guide market designations for the 1996 election and postpone the switch to Nielsen's DMAs until the must-carry/retransmission consent election that is to take place on October 1, 1999. The Commission also issued a Further Notice in its Market Modification Report and Order to solicit additional information and provide parties an opportunity to further consider issues relating to the transition to market designations based on Nielsen's DMAs. sSee Garden State Cable TV, (DA 97-2347), released November 10, 1997. 647 C.F.R. 7Comcast indicates that the best detectable signal it measured was at -25 dBmv (-73 dBm), which is well below the Commission's signal strength criteria. 22588 Federal Communications Commission DA 98-2219 adequate signal, Comcast maintains that it is incorrectly asserting that it currently has a signal of sufficient strength for carriage. Finally, Comcast indicates that it is filing under separate cover a petition to modify its market to exclude WTVE for must carry purposes.8 Comcast notes that in an ADI petition filed by Garden State Cable TV with similar facts and equities, the Commission granted deletion of WTVE.9 5. In reply, WTVE states that after it reported to Comcast on March 4, 1997 that it provided a signal which met the signal strength criteria, it requested carriage conditioned on meeting a reasonable Comcast demand that the 19-lb receive antenna necessary for WTVE's reception not compromise the system's tower integrity. However, WTVE indicates that Comcast failed to provide terms of the requested tower analysis, despite further requests to do so. WTVE argues that Comast's contention that the instant complaint is untimely is specious in light of the fact that it is clear that WTVE did not assert unconditional must carry rights until after negotiations had broken down by April 30, 1998. It points out that both the March 5, 1997 and January 19, 1998 letters to Comcast were clearly negotiations about the completion of conditions necessary to allow WTVE to be added to the system and not final demands for carriage. Likewise, WTVE states that its February 5, 1998 letter to Comcast was merely a response to Comcast's suggestion that the negotiations between WTVE and the system be suspended pending the Outcome of a reconsideration in a separate ADI modification proceeding. WTVE maintains that it provided Comcast with a reasonable period in which to schedule the permanent installation of equipment it had been allowed to install temporarily during the testing of its signal and it was only when it was clear that Comcast would not pursue the matter that a demand for carriage was ultimately made. In addition, WTVE argues that while it tacitly agreed with Comcast that its raw signal, without specialized equipment, did not meet Commission signal strength criteria, it has since fully demonstrated that with the use of specialized equipment it can deliver a good quality signal to Comcast's principal headend. WTVE points out that the Must Carry Order and the statute require no more than that. Finally, WTVE states that the alleged filing of an ADI modification petition to seek the exclusion of WTVE from Comcast's system is not only irrelevant to the instant complaint, but is also not grounds for denial. DISCUSSION 6. According to §76.55(e) of the Commission's Rules, commercial television broadcast stations, such as WTVE, are entitled to carriage on cable systems located in the same Area of Dominant Influence (or "ADI"). 10 WTVE is located in the Philadelphia, Pennsylvania ADI, which is also where the communities served by Comcast. However, Comcast maintains that WTVE is not entitled to such carriage because a) the station's must carry complaint was not timely filed, and b) the station does not provide a good quality signal to the system's principal headend. 7. We do not agree with Comcast's contention that WTVE's complaint was not timely filed. While Comcast maintains that the "triggering event" for the filing of a complaint was its own failure to respond to WTVE's March 5, 1997 request for carriage, it is clear from the evidence that there were periodic negotiations between Comcast and WTVE regarding the station's carriage from that time until April 1998. Therefore, we cannot conclude that there was a clearcut denial of carriage in 1997 and WTVE's filing of 8To date, no such petition has been received. 9As noted in footnote 5, there is a pending reconsideration of this case filed on behalf of WTVE. I047 C.F.R. §76.55(e). 22589 Federal Communications Commission DA 98-2219 the instant complaint based on Comcast's failure to respond to the station's April 30, 1998 letter is acceptable. 8. Further, while Comcast has provided signal strength tests which in general comply with our engineering criteria and appear to indicate that WTVE does not provide a good quality signal, the system did not use specialized equipment to receive and evaluate the signal of WTVE. Moreover, the results of these tests are radically different from the results achieved by WTVE when it had the opportunity to install receiving equipment in March 1997." In any event, we note that WTVE has offered to provide, at its own expense, specialized equipment to Comcast to ensure the receipt of a good quality signal at the system's headend. WTVE maintains that with the use of specialized equipment it can provide a signal to Comcast's headend that is consistent with Commission criteria. The Commission has stated that amplifiers and other equipment may be employed to deliver a good quality signal to a cable system headend. The Commission, in the Must Carry Clarification Order, 12 after re-emphasizing that it was the television station's obligation to bear the costs associated with delivering a good quality signal to the system's principal headend, stated: This may include improved antennas, increased tower height, microwave relay equipment, amplification equipment and tests that may be needed to determine whether the station's signal complies with the signal strength requirements .... WTVE, by committing to provide specialized equipment, satisfies its obligation to bear the costs associated with delivering a good signal to Comcast's headend. Consequently, we order Comcast to carry WTVE's signal in the event that WTVE provides a good quality signal employing the specialized equipment it has offered to install at Comcast's principal headend. ORDERING CLAUSES 9. Accordingly, IT IS ORDERED that the petition filed June 15, 1998, by Reading Broadcasting, Inc. IS GRANTED pursuant to §614(d)(3) of the Communications Act of 1934, as amended (47 U.S.C. §534). Comcast Cablevision of Gloucester County IS ORDERED to commence carriage of WTVE on its Woodbury, New Jersey cable system sixty (60) days from the date that WTVE provides a good quality signal at Comcast's principal headend. WTVE shall notify Comcast in writing of its carriage and channel "Since WTVE did not submit a copy of these tests with its complaint, our staff did not have the opportunity to review the engineering practices used by WTVE. 128 FCC Red 4142, 4243 (1993). 22590 Federal Communications Commission DA 98-2219 position elections (§§76.56, 76.57, and 76.64(f) of the Commission's Rules) within thirty (30) days of providing a good quality signal. 10. This action is taken pursuant to authority delegated by §0.321 of the Commission's Rules.13 FEDERAL COMMUNICATIONS COMMISSION Deborah Klein, Acting Chief Consumer Protection and Competition Division Cable Services Bureau 1347 C.F.R. §0.321. 22591