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 NEWS  News  media  Information  202  /  418-  0500  Fax-  On-  Demand  202  /  418-  2830  TTY  202/  418-  2555  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  CONTACT: 
 October  11,  2001  Michelle  Russo  (202)  418-  2358 


 FCC  TO  EXAMINE  PROHIBITION  ON  EXCLUSIVE  CONTRACTS 
 Provision  of  Program  Access  Rules  Set  to  Expire  in  October  2002 


 Washington,  DC  –  The  Federal  Communications  Commission  (FCC)  today  initiated  a 
 proceeding  to  examine  whether  or  not  to  extend  the  prohibition  on  exclusive  contracts  for 
 satellite-  delivered  cable  or  satellite-  delivered  broadcast  programming  between  vertically 
 integrated  programming  vendors  and  cable  operators.  Pursuant  to  the  Communications  Act,  the 
 current  prohibition  on  exclusive  contracts  will  cease  to  be  effective  on  October  5,  2002,  unless 
 the  FCC  conducts  a  proceeding  and  finds  that  such  prohibition  continues  to  be  necessary  to 
 preserve  and  protect  competition  and  diversity  in  the  distribution  of  video  programming.  Today’s 
 Notice  of  Proposed  Rulemaking  (NPRM)  begins  that  proceeding. 


 The  “program  access”  provisions  contained  in  Section  628  of  the  Communications  Act 
 were  adopted  as  part  of  the  Cable  Television  Consumer  Protection  and  Competition  Act  of  1992. 
 When  adopting  the  statute,  Congress  was  concerned  by  its  finding  that  a  majority  of  cable 
 operators  enjoyed  a  monopoly  in  program  distribution  at  the  local  level,  and  concluded  that  the 
 use  of  exclusive  contracts  between  satellite-  delivered  vertically  integrated  programming  vendors 
 and  cable  operators  could  inhibit  the  development  of  competition  among  distributors. 


 Today’s  NPRM  seeks  comment  on  a  number  of  issues  including: 
 ƒ  Whether  the  prohibition  on  exclusive  programming  contracts  between  vertically  integrated 


 cable  companies  and  satellite-  delivered  programming  vendors  should  expire;  ƒ 
 The  effect,  if  any,  that  the  prohibit  ion  on  exclusivity  has  had  on  compet  ition  in  local  and 
 national  markets;  ƒ 
 The  degree  to  which,  if  at  all,  clustering  and  continuing  consolidation  in  the  communications 
 industry  should  inform  the  FCC’s  decision  on  the  sunset  of  the  exclusivity  prohibition;  ƒ 
 The  effects  of  exclusivity  in  the  multichannel  video  programming  marketplace;  ƒ 
 The  impact  the  prohibition  on  exclusivity  has  had  on  diversity  in  programming;  ƒ 
 Whether  it  would  be  advisable,  and  consistent  with  the  FCC’s  statutory  authority,  to  retain 
 the  rules  only  for  some  types  of  programming  or  in  some  specific  cases;  ƒ 
 How  other  program  access  provisions  would  function  should  the  exclusivity  prohibition 
 sunset;  ƒ 
 What  future  procedures  the  FCC  should  undertake  if  the  prohibition  on  exclusivity  is 
 retained;  and  ƒ 
 Any  other  issues  appropriate  to  this  inquiry  in  accordance  with  Section  628(  c)(  5). 


 Action  by  the  Commission,  October  11,  2001,  by  Notice  of  Proposed  Rulemaking 
 (FCC  01-  307).  Chairman  Powell,  Commissioners  Abernathy,  Copps  and  Martin. 


 CS  Docket  No.  01-  290 
 Cable  Services  Bureau  Contact:  Karen  Kosar,  Steve  Broeckaert  at  (202)  418-  7200 
 -  FCC  - 
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