Goto Section: 76.963 | 76.971 | Table of Contents
Revised as of October 1, 2020
Goto Year:2019 |
§ 76.970 Commercial leased access rates.
(a) Cable operators shall designate channel capacity for commercial use
by persons unaffiliated with the operator, and that seek to lease a
programming channel on a full-time basis, in accordance with the
requirement of 47 U.S.C. 532. For purposes of 47 U.S.C. 532(b)(1)(A)
and (B), only those channels that must be carried pursuant to 47 U.S.C.
534 and 535 qualify as channels that are required for use by Federal
law or regulation. For cable systems with 100 or fewer channels,
channels that cannot be used due to technical and safety regulations of
the Federal Government (e.g., aeronautical channels) shall be excluded
when calculating the set-aside requirement.
(b) In determining whether an entity is an "affiliate" for purposes of
commercial leased access, entities are affiliated if either entity has
an attributable interest in the other or if a third party has an
attributable interest in both entities.
(c) Attributable interest shall be defined by reference to the criteria
set forth in Notes 1-5 to § 76.501 provided, however, that:
(1) The limited partner and LLC/LLP/RLLP insulation provisions of Note
2(f) shall not apply; and;
(2) The provisions of Note 2(a) regarding five (5) percent interests
shall include all voting or nonvoting stock or limited partnership
equity interests of five (5) percent or more.
(d) The maximum commercial leased access rate that a cable operator may
charge for full-time channel placement on any tier is the average
implicit fee for full-time channel placement on that tier.
(e) The average implicit fee identified in paragraph (d) of this
section shall be calculated by first calculating the total amount the
operator receives in subscriber revenue per month for the programming
on the tier on which the channel will be placed, and then subtracting
the total amount it pays in programming costs per month for that tier
(the "total implicit fee calculation"). Next, the total implicit fee is
divided by the number of channels on that tier (the "average implicit
fee calculation"). The result, the average implicit fee, is the maximum
rate per month that the operator may charge the leased access
programmer for a full-time channel on that tier. The license fees for
affiliated channels used in determining the average implicit fee shall
reflect the prevailing company prices offered in the marketplace to
third parties. If a prevailing company price does not exist, the
license fee for that programming shall be priced at the programmer's
cost or the fair market value, whichever is lower. The average implicit
fee shall be calculated annually based on contracts in effect in the
previous calendar year. The implicit fee for a contracted service may
not include fees, stated or implied, for services other than the
provision of channel capacity (e.g., billing and collection, marketing,
or studio services).
(f) The maximum commercial leased access rate that a cable operator may
charge for full-time channel placement as an a la carte service is the
highest implicit fee on an aggregate basis for full-time channel
placement as an a la carte service.
(g) The highest implicit fee on an aggregate basis for full-time
channel placement as an a la carte service shall be calculated by first
determining the total amount received by the operator in subscriber
revenue per month for each non-leased access a la carte channel on its
system (including affiliated a la carte channels) and deducting the
total amount paid by the operator in programming costs (including
license and copyright fees) per month for programming on such
individual channels. This calculation will result in implicit fees
determined on an aggregate basis, and the highest of these implicit
fees shall be the maximum rate per month that the operator may charge
the leased access programmer for placement as a full-time a la carte
channel. The license fees for affiliated channels used in determining
the highest implicit fee shall reflect the prevailing company prices
offered in the marketplace to third parties. If a prevailing company
price does not exist, the license fee for that programming shall be
priced at the programmer's cost or the fair market value, whichever is
lower. The highest implicit fee shall be based on contracts in effect
in the previous calendar year. The implicit fee for a contracted
service may not include fees, stated or implied, for services other
than the provision of channel capacity (e.g., billing and collection,
marketing, or studio services). Any subscriber revenue received by a
cable operator for an a la carte leased access service shall be passed
through to the leased access programmer.
(h)(1) Cable system operators shall provide prospective leased access
programmers with the following information within 30 calendar days of
the date on which a bona fide request for leased access information is
made, provided that the programmer has remitted any application fee
that the cable system operator requires up to a maximum of $100 per
system-specific bona fide request:
(i) How much of the operator's leased access set-aside capacity is
(ii) A complete schedule of the operator's full-time leased access
(iii) Rates associated with technical and studio costs; and
(iv) If specifically requested, a sample leased access contract.
(2) Operators of systems subject to small system relief shall provide
the information required in paragraph (h)(1) of this section within 45
calendar days of a bona fide request from a prospective leased access
programmer. For these purposes, systems subject to small system relief
are systems that either:
(i) Qualify as small systems under § 76.901(c) and are owned by a small
cable company as defined under § 76.901(e); or
(ii) Have been granted special relief.
(3) Bona fide requests, as used in this section, are defined as
requests from potential leased access programmers that have provided
the following information:
(i) The desired length of a contract term;
(ii) The anticipated commencement date for carriage; and
(iii) The nature of the programming,
(4) All requests for leased access must be made in writing and must
specify the date on which the request was sent to the operator.
(5) Operators shall maintain, for Commission inspection, sufficient
supporting documentation to justify the scheduled rates, including
supporting contracts, calculations of the implicit fees, and
justifications for all adjustments.
(6) Cable system operators shall disclose on their own websites, or
through alternate means if they do not have their own websites, a
contact name or title, telephone number, and email address for the
person responsible for responding to requests for information about
leased access channels.
(i) Cable operators are permitted to negotiate rates below the maximum
rates permitted in paragraphs (c) through (g) of this section.
[ 78 FR 20256 , Apr. 4, 2013, as amended at 84 FR 28768 , June 20, 2019;
85 FR 51367 , Aug. 20, 2020]
Goto Section: 76.963 | 76.971
Goto Year: 2019 |
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