NEWS
Federal Communications Commission
445 12th 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).
News Media Information 202 / 418-0500
Internet: http://www.fcc.gov
TTY: 1-888-835-5322
FOR IMMEDIATE RELEASE                                   NEWS MEDIA CONTACT         
October 31, 2007                                                           Mary Diamond  (202) 418-2388
 Email: mary.diamond@fcc.gov
FCC Adopts Rules to Ensure Reasonable Franchising 
Process for Incumbent Video Providers
Washington, DC – The Federal Communications Commission (FCC) today adopted a Second
Report and Order (Order) that extends a number of the rules promulgated in this docket’s First 
Report and Order to incumbent providers as well as new entrants.  The First Report and Order 
established rules and provided guidance to implement Section 621(a)(1) of the Communications 
Act of 1934, which prohibits franchising authorities from unreasonably refusing to award 
competitive franchises for the provision of cable services. 
In this Order, the Commission:  
· Found that the Commission’s findings in the First Report and Order that certain specified 
costs, fees, and other compensation required by local franchising authorities must be 
counted toward the statutory five percent cap on franchise fees, should be extended to 
incumbents; 
· Found that many of the Commission’s determinations relating to public, educational, and 
governmental (“PEG”) and institutional networks (“I-Nets”) should be extended to 
incumbents; and 
· Found that the Commission’s findings in the First Report and Order regarding mixed-use 
networks also apply equally to incumbents and new entrants, and should be extended to 
incumbents.  
· Found that other provisions of the First Report and Order, regarding build-out and time 
limits for franchise negotiations, are only applicable to new entrants.  
· Found that the Commission cannot preempt local or state cable customer service 
requirements, nor can it prevent local franchising authorities and cable operators from 
agreeing to more stringent standards.
The Commission's findings will be applicable 30 days after publication in the Federal 
Register.  Although the Commission’s findings take effect immediately, the Order notes that 
franchise agreements involve contractual obligations, and the Order does not give incumbents 
any right to breach their existing contractual obligations. 
Action by the Commission October 31, 2007 by Second Report and Order (FCC 07-190).  
Chairman Martin, Commissioners Tate and McDowell with Commissioners Copps and Adelstein 
dissenting.  Separate statements issued by Chairman Martin, Commissioners Copps, Adelstein, 
Tate and McDowell.
-FCC-
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