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 NEWS  News  media  Information  202  /  418-  0500  TTY  202  /  418-  2555  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974). 
 FOR  IMMEDIATE  RELEASE  NEWS  MEDIA  CONTACTS: 
 January  18,  2001  David  Fiske  (202)  418-  0513 


 FCC  INITIATES  PROCEEDING  ON  INTERACTIVE  TELEVISION 
 Washington,  D.  C.  –  The  Federal  Communications  Commission  (FCC)  has  adopted  a  Notice  of 
 Inquiry  (“  NOI”)  on  interactive  television  (“  ITV”)  services.  The  FCC  said  that  comments  filed  in  the 
 AOL-  Time  Warner  merger  proceeding  raised  the  possibility  that  a  vertically  integrated  cable 
 operator/  interactive  television  services  provider  could  discriminate  in  favor  of  affiliated  interactive 
 services.  The  FCC  initiated  this  proceeding  in  order  to  develop  a  complete  record  and  determine 
 whether  rules  of  general  applicability  should  be  considered  to  ensure  that  the  interactive  television 
 (ITV)  services  develop  in  a  competitive  fashion. 


 The  NOI  seeks  comment  on  a  suitable  definition  of  ITV  services,  noting  that  ITV  is  a 
 service  that  supports  subscriber-  initiated  choices  or  actions  related  to  one  or  more  video 
 programming  streams  (e.  g.,  integration  of  video  and  data,  real-  time  interaction  with  other  viewers, 
 and  “t-  commerce”).  The  NOI  identifies  three  major  technical  “building  blocks”  needed  to  provide 
 ITV  service—  a  video  pipeline  (e.  g.,  an  MPEG  video  stream),  a  high  speed  Internet  Protocol 
 connection  (at  least  on  a  going  forward  basis),  and  specialized  customer  premises  equipment  (i.  e,  an 
 ITV  set  top  box).  It  then  seeks  comment  on  whether  any  particular  multichannel  video 
 programming  distributor  (“  MVPD”)  (e.  g.,  cable)  has  or  will  have  a  substantial  advantage  in 
 delivering  ITV  services. 


 The  NOI  requests  comment  on  whether  a  vertically  integrated  MVPD  that  itself  offers  ITV 
 services,  would  have  the  incentive  in  addition  to  the  ability  to  discriminate  against  unaffiliated  ITV 
 service  providers.  Comment  is  also  sought  on  whether  vertical  integration  is  a  necessary  predicate 
 for  possible  anti-  competitive  conduct.  The  NOI  further  explores  the  possibility  that  the  public 
 interest  might  be  served  by  imposing  on  an  MVPD  with  a  substantial  advantage  in  delivering  ITV 
 services  a  nondiscrimination  requirement  vis  a  vis  unaffiliated  ITV  service  providers  and  seeks 
 comment  on  how  to  make  this  principle  operational.  The  NOI  also  seeks  comment  on  jurisdictional 
 issues  and  FCC  authority  related  to  ITV  services. 


 Action  by  the  Commission,  January  12,  2001  by  Notice  of  Inquiry  (FCC  01-  15).  Chairman 
 Kennard,  Commissioners  Ness,  Powell  and  Tristani.  Commissioner  Furchtgott-  Roth  dissenting  and 
 issuing  a  separate  statement.  Commissioner  Tristani  issuing  a  separate  statement. 


 -FCC-Docket 
 No.:  CS  01-  7 
 Office  of  Plans  and  Policy  contact:  Jonathan  Levy  (202)  418-  2030 
 Cable  Services  Bureau  contact:  Royce  Dickens,  Darryl  Cooper  (202)  418-  7200 


 News  about  the  Federal  Communications  Commission  can  also  be  found 
 on  the  Commission’s  web  site  www.  fcc.  gov. 
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