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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  CONTACT:  June  13,  2002  Margo  Davenport  (202)  418-  2949 
 FCC  SETS  RULEMAKING  TO  REFLECT  STATUTORY  SUNSET  OF  CPST  RATE  REGULATION 
 Washington,  DC  -  The  Federal  Communications  Commission  today  proposed  to  update  its  cable  television  rate  regulations  to  reflect  the  end  of  its  jurisdiction  over  cable  programming 
 service  tier  (“  CPST”)  rates  pursuant  to  the  Telecommunications  Act  of  1996.  The  Commission  also  clarified  how  it  will  review  appeals  of  franchising  authority  rate  orders  associated  with 
 channel  changes  while  this  proceeding  is  pending. 
 The  Commission’s  rate  regulations  and  rate  forms  were  adopted  when  the  rates  for  both  the  basic  service  tier  (“  BST”)  and  the  CPST  were  subject  to  regulation.  Although  the  BST  rates 
 were  subject  to  prior  approval  by  local  franchising  authorities  and  CPST  rates  were  subject  to  Commission  review  if  a  complaint  was  filed  with  the  Commission,  the  Commission  developed  a 
 common  set  of  benchmarks  and  regulations  for  both  BST  and  CPST  rates.  The  1996  Act  ended  regulation  of  CPST  rates  after  March  31,  1999.  For  cable  systems  not  subject  to  effective 
 competition,  BST  rates  remain  subject  to  local  review. 
 This  proceeding  provides  an  opportunity  to  review  and  update  the  Commission’s  rate  rules,  generally,  and  to  improve  the  process  based  on  experience  gained  with  the  current  rate 
 regulations.  The  notice  focuses  on  improvements  within  the  existing  regulatory  scheme  for  both  BST  and  associated  equipment,  but  also  seeks  comment  on  broader  changes. 


 In  its  clarification,  the  Commission  explained  that  it  will  review  appeals  of  rate  adjustments  for  adding,  deleting,  or  substituting  channels  using  its  rules  previously  in  effect  for 
 these  changes.  It  also  explained  how  it  will  review  appeals  regarding  rate  adjustments  for  channels  moved  to  the  BST  before  and  after  the  sunset  of  the  CPST. 


 Action  by  the  Commission  June  13,  2002,  by  Notice  of  Proposed  Rulemaking  and  Order  (FCC  02-  177).  Chairman  Powell,  Commissioners  Abernathy,  Copps  and  Martin. 
 MB  Docket  No.  02-  144  -FCC- 
 Media  Bureau  Contacts:  Peggy  Greene  (202)  418-  2389;  John  Norton  (202)  418-  7037 
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