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EPA has complied with Executive Order Air Quality Standard (NAAQS). After The incorporation by reference of 12630 (53 FR 8859, March 15, 1998) by review of Indiana’s submission and certain publications listed in this rule is examining the takings implications of 2006–2008 ozone air quality data for approved by the Director of the Federal the rule in accordance with the this ozone nonattainment area, EPA Register as of August 8, 2011. ‘‘Attorney General’s Supplemental finds that the entire Chicago-Gary-Lake FOR FURTHER INFORMATION CONTACT: For Guidelines for the Evaluation of Risk County, IL-IN area has attained the 1997 additional information on this and Avoidance of Unanticipated 8-hour ozone NAAQS. Therefore, EPA proceeding, contact Brendan Murray, Takings’’ issued under the executive has determined, as of March 12, 2010, [email protected], of the Media order. This rule does not impose an that Cook, DuPage, Kane, Lake, Bureau, Policy Division, (202) 418–2120 information collection burden under the McHenry, and Will Counties, and or Alison Neplokh, Paperwork Reduction Act of 1995 (44 portions of Grundy County (Aux Sable [email protected], of the Media U.S.C. 3501 et seq.). and Goose Lake Townships) and Bureau, (202) 418–1083. The Congressional Review Act (5 Kendall County (Oswego Township) in For additional information concerning U.S.C. 801 et seq.), as added by the Illinois have attained the 1997 8-hour the information collection requirements Small Business Regulatory Enforcement ozone standard. contained in this document, send an e- Fairness Act of 1996, generally provides [FR Doc. 2011–17050 Filed 7–7–11; 8:45 am] mail to [email protected] or contact Cathy that before a rule may take effect, the Williams on (202) 418–2918. agency promulgating the rule must BILLING CODE 6560–50–P SUPPLEMENTARY INFORMATION: submit a rule report, which includes a This is a copy of the rule, to each House of the summary of the Commission’s (Third Report and Order and Order on Congress and to the Comptroller General FEDERAL COMMUNICATIONS Reconsideration), FCC 10–181, adopted of the United States. Section 808 allows COMMISSION the issuing agency to make a rule and released on October 14, 2010. The effective sooner than otherwise 47 CFR Parts 15 and 76 full text of these documents is available provided by the CRA if the agency for public inspection and copying makes a good cause finding that notice [CS Docket No. 97–80; PP Docket No. 00– during regular business hours in the and public procedure is impracticable, 67; FCC 10–181] FCC Reference Center, Federal unnecessary or contrary to the public Communications Commission, 445 12th interest. This determination must be Implementation of Section 304 of the Street, SW., CY–A257, Washington, DC, supported by a brief statement. 5 U.S.C. Telecommunications Act of 1996: 20554. These documents will also be 808(2). As stated previously, EPA had Commercial Availability of Navigation available via ECFS (http://www.fcc.gov/ made such a good cause finding, Devices; Compatibility Between Cable cgb/ecfs/). (Documents will be available including the reasons therefore, and Systems and Consumer Electronics electronically in ASCII, Word 97, and/ established an effective date of July 8, Equipment or Adobe Acrobat.) The complete text may be purchased from the 2011. EPA will submit a report AGENCY: Federal Communications Commission’s copy contractor, 445 12th containing this rule and other required Commission. information to the U.S. Senate, the U.S. Street, SW., Room CY–B402, ACTION: Final rule. House of Representatives, and the Washington, DC 20554. To request these documents in accessible formats Comptroller General of the United SUMMARY: In this document, we adopt (computer diskettes, large print, audio States prior to publication of the rule in new rules designed to improve the recording, and Braille), send an e-mail the Federal Register. This correction to operation of the CableCARD regime to [email protected] or call the 40 CFR part 52 for Illinois is not a until a successor solution becomes Commission’s Consumer and ‘‘major rule’’ as defined by 5 U.S.C. effective. The Commission has not been Governmental Affairs Bureau at (202) 804(2). fully successful in implementing the 418–0530 (voice), (202) 418–0432 command of Section 629 of the Dated: June 24, 2011. (TTY). Susan Hedman, Communications Act to ensure the Regional Administrator, Region 5. commercial availability of navigation Summary of the Report and Order and 40 CFR part 52 is amended as follows: devices used by consumers to access the Order on Reconsideration services of multichannel video 1. In this Third Report and Order PART 52—[AMENDED] programming distributors (‘‘MVPDs’’). (‘‘Order’’), we remedy shortcomings in The rules adopted in this order are our CableCARD rules in order to ■ 1. The authority citation for 40 CFR intended to bolster support for retail improve consumers’ experience with part 52 continues to read as follows: CableCARD devices so that consumers retail navigation devices (such as set-top Authority: 42 U.S.C. 7401 et seq. may access cable services without boxes and -ready television leasing a set-top box from their cable sets) and , the security Subpart O—Illinois operators. devices used in conjunction with ■ 2. Section 52.726 is amended by DATES: Effective August 8, 2011, except navigation devices to perform the adding paragraph (jj) to read as follows: for §§ 76.1205(b)(1), 76.1205(b)(1)(i), functions necessary 76.1205(b)(2), 76.1205(b)(5), and to access cable services. We believe § 52.726 Control strategy. Ozone. 76.1602(b), which contain information these rule changes are necessary to * * * * * collection requirements that have not discharge our responsibility under the (jj) Determination of attainment. On been approved by OMB. The Federal Act to assure the development of a retail June 5, 2009, the state of Indiana Communications Commission will market for devices that can navigate requested that EPA find that the Indiana publish a document in the Federal cable services. We seek to remove the portion of the Chicago-Gary-Lake Register announcing the effective date disparity in consumer experience County, Illinois-Indiana (IL-IN) ozone of §§ 76.1205(b)(1), 76.1205(b)(1)(i), between those who choose to buy a nonattainment area has attained the 76.1205(b)(2), 76.1205(b)(5), and retail device and those who lease the 1997 8-hour ozone National Ambient 76.1602(b). cable provider’s set-top box, as the

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disparity is impeding the development over multichannel video programming cable operators have deployed more of a retail market for navigation devices. systems.’’ Congress, in enacting the than 22.75 million leased devices pre- Specifically, we adopt rules today to (1) section, pointed to the vigorous retail equipped with CableCARDs, compared require cable operators to support the market for customer premises to only 531,000 CableCARDs installed reception of switched digital video equipment used with the public in retail devices connected to their services on retail devices to ensure that switched-telephone network and sought networks. Furthermore, while 605 subscribers are able to access the to a similarly vigorous market for UDCP models have been certified or services for which they pay regardless of devices used with MVPD services. verified for use with CableCARDs, only whether they lease or purchase their 3. In 1998, the Commission adopted 37 of those certifications have occurred devices; (2) prohibit price the First Report and Order to implement since the integration ban took effect in discrimination against retail devices to Section 629. The order required MVPDs July 2007. This evidence indicates that support a competitive marketplace for to make available a conditional access many retail device manufacturers retail devices; (3) require cable operators element separate from the basic abandoned CableCARD before any to allow self-installation of CableCARDs navigation or host device, in order to substantial benefits of the integration where device manufacturers offer permit unaffiliated manufacturers and ban could be realized. device-specific installation instructions retailers to manufacture and market host 5. Not only were very few retail to make the installation experience for devices while allowing MVPDs to retain devices manufactured and subsequently retail devices comparable to the control over their system security. The purchased in the retail market, but an experience for leased devices; (4) technical details of this conditional additional complication with the require cable operators to provide multi- access element were to be worked out in installation process further depressed stream CableCARDs by default to ensure industry negotiations. In 2003, the the retail market. The cable-operator that cable operators are providing their Commission adopted, with certain leased devices come pre-equipped with subscribers with current CableCARD modifications, standards on which the a CableCARD, so that no subscriber technology; and (5) clarify that National Cable and premises installation of the card is CableCARD device certification rules Telecommunications Association required. But this is not the case with are limited to certain technical features (‘‘NCTA’’) and the Consumer devices purchased at retail. CableCARDs to make it easier for device Electronics Association (‘‘CEA’’) had for use in retail devices must be manufacturers to get their products to agreed in a Memorandum of installed in the home, and many cable market. We also modify our rules to Understanding (‘‘MOU’’). The MOU operators require professional encourage home-networking by prescribed the technical standards for installation by the cable operator. simplifying our set-top box output one-way (from cable system to customer Unfortunately, the record reflects poor requirements. In addition, we adopt a device) CableCARD compatibility. The performance with regard to subscriber rule to promote the cable industry’s CableCARD is a security device premise installations of CableCARDs in transition to all-digital networks by provided by an MVPD, which can be retail devices. This could be a exempting all one-way set-top boxes installed in a retail navigation device consequence of the fact that only 1 without recording functionality from the bought by a consumer in the retail percent of the total navigation devices integration ban. Each of the rule changes market to allow the consumer’s deployed are purchased at retail and adopted in this item are intended to television to display MVPD-encrypted require an actual CableCARD video programming. To ensure adequate installation, which may have made it meet the goals of Section 629 by further support by MVPDs for CableCARDs, the difficult to train the cable installers developing a retail market for navigation Commission prohibited MVPDs from properly. It could also reflect either devices. Finally, we consider nine integrating the security function into indifference or reluctance by cable petitions for reconsideration of prior set-top boxes they lease to consumers, operators to support navigation devices decisions in CS Docket No. 97–80, PP thus forcing MVPDs to rely on purchased at retail in competition with Docket No. 00–67, and the enforcement CableCARDs as well. This ‘‘integration their own set-top boxes. Regardless of proceedings captioned above regarding ban’’ was initially set to go into effect on the cause, these serious installation changes to device certification January 1, 2005, but that date was later problems further undermine the procedures, the Commission’s content extended to July 1, 2007. Although the development of a retail market. encoding and protection rules, and cable industry has challenged the 6. A consumer using a unidirectional access to switched digital video. lawfulness of the integration ban on device cannot take advantage of two- Together, the changes we adopt today three separate occasions, in each of way services offered by a cable operator. should benefit consumers who wish to those cases the DC Circuit denied those The Commission anticipated that the buy navigation devices while at the petitions. parties to the MOU would negotiate same time removing unnecessary 4. Unfortunately, the Commission’s another agreement to achieve regulatory obligations on cable efforts to date have not developed a bidirectional compatibility, using either operators. vigorous competitive market for retail a software-based or hardware-based 2. Background. In the navigation devices that connect to solution. Unlike one-way devices, Telecommunications Act of 1996, subscription video services. Most cable which can only receive communication Congress added Section 629 to the subscribers continue to use the from cable headends, bidirectional Communications Act. That section traditional set-top boxes leased from devices can send requests to the cable directs the Commission to adopt their cable operator; only 1 percent of headend, which enables those devices regulations to assure the commercial the total navigation devices deployed to receive services like cable operator- availability of navigation devices used are purchased at retail. Although provided interactive programming by consumers to access services from following adoption of the CableCARD guides, cable-operator provided video- multichannel video programming rules some television manufacturers on-demand and pay-per-view, and other distributors (‘‘MVPDs’’). Section 629 sold unidirectional digital cable-ready interactive programming services. When covers ‘‘equipment used by consumers products (‘‘UDCPs’’), most the Commission realized in June 2007 to access multichannel video manufacturers have abandoned the that negotiations were not leading to an programming and other services offered technology. Indeed, since July 1, 2007, agreement for bidirectional

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compatibility between consumer to improve the CableCARD regime and switched digital channels for one-way electronics devices and cable systems, it advance the retail market for cable retail devices. released a Third Further Notice of navigation devices. We are sympathetic 10. In the FNPRM, the Commission Proposed Rulemaking, seeking comment to concerns that we are adopting these sought comment on whether this on competing proposals for rules while we consider a successor voluntary solution provides adequate bidirectional compatibility and other regime, but we must keep in mind that support for retail navigation devices. related issues. In the wake of the Two- CableCARD is a realized technology— The Commission also sought comment way FNPRM, the six largest cable consumer electronics manufacturers can on TiVo’s proposal to use an IP operators and numerous consumer build to and are building to the standard backchannel to request switched digital electronics manufacturers negotiated an today. Until a successor technology is channels. There was vigorous agreement for bidirectional actually available, the Commission must disagreement between commenters on compatibility that continues to rely and strive to make the existing CableCARD this issue—certain commenters strongly builds on CableCARDs by using a standard work by adopting inexpensive, supported maintaining the status quo, while others zealously advocated a rule middleware-based solution called easily implemented changes that will that would require cable operators who ‘‘.’’ significantly improve the user 7. The National Broadband Plan, use SDV to support retail devices experience for retail CableCARD released in March of this year, through the use of an IP backchannel. recommended changes in the devices. Therefore, in this order we 11. Commenters who support CableCARD rules to provide benefits to adopt rule changes that will (1) require maintaining the voluntary, market-based consumers who use retail CableCARD cable operators to provide retail devices tuning adapter solution argue that SDV devices without imposing unfair with access to switched-digital benefits consumers and that any regulatory burdens on the cable channels; (2) require cable operators to changes to the status quo could stifle industry. The plan suggested that these provide greater transparency in their deployment of SDV and its associated changes could serve as an interim CableCARD charges; (3) require cable benefits. They assert that the tuning solution that will benefit consumers operators to allow subscribers to self- adapter solution works adequately, and while the Commission considers install CableCARDs and require cable that there is no evidence that an IP broader changes to develop a retail operators to inform their subscribers backchannel would work better than the market for navigation devices. After about this option; (4) require cable tuning adapter solution. They also argue considering those recommendations, on operators to provide multi-stream that it does not make sense to require April 21, 2010 the Commission adopted CableCARDs by default, unless a the industry to develop and deploy an a Fourth Further Notice of Proposed subscriber explicitly requests a single- IP backchannel solution, which could Rulemaking (‘‘FNPRM’’) seeking stream CableCARD; and (5) clarify the be costly and discourage deployment of comment on proposed measures to testing requirements for CableCARD SDV, particularly with the successor remedy shortcomings in the existing devices. Based on our examination of AllVid requirements on the horizon and CableCARD system. The Commission the record in this proceeding, we the current availability of the cable proposed five measures intended to believe that these changes will be industry’s tru2way solution. They argue remove the disparity between the inexpensive to implement and will the additional development time and treatment of consumers who choose to eliminate or reduce the disparity in the resources necessary to implement an IP use a retail CableCARD-equipped video consumer experience between leased backchannel would be better allocated device and those who lease a cable devices and retail devices, which has to AllVid development. Certain provider’s video navigation box. In the dampened enthusiasm for retail devices. commenters also assert that implementing a signaling backchannel FNPRM, we sought comment on 9. Switched Digital Video. Switched over the public Internet would raise proposals to (1) Ensure that retail Digital Video (‘‘SDV’’) is a method of security and privacy concerns, devices have comparable access to video delivering linear programming that programming that is prescheduled by including potential denial-of-service requires a set-top box to request specific the programming provider; (2) make attacks, attacks that could provide channels from the cable head-end. SDV CableCARD pricing and billing more unauthorized access to proprietary allows cable providers to offer their transparent; (3) streamline CableCARD networks, and attacks that could result services more efficiently, as channels installations; (4) require cable operators in theft of service and/or subscriber to offer multi-stream CableCARDs; and occupy capacity on the system only if data. Therefore, these commenters (5) clarify certification requirements. In subscribers are viewing or recording argue, the tuning adapter solution that the FNPRM, we also proposed a rule them. Unfortunately, this can affect one- has developed in the marketplace is the change that would allow cable operators way retail CableCARD devices adversely most pragmatic, effective way to ensure to substitute certain interfaces in lieu of because one-way devices are not that retail devices can access switched the IEEE–1394 interface currently capable of requesting the switched channels, and the Commission does not required on all high-definition set-top channels, and therefore subscribers with need to adopt rules. boxes, and proposed to define a baseline retail devices are unable to access 12. While several commenters assert of functionality that such interfaces programming provided using SDV. that the tuning adapter solution works must meet. Finally, in order to Certain cable operators that have adequately, others argue that consumers encourage the cable industry’s transition deployed SDV offer their subscribers will not purchase retail CableCARD to digital technology, the Commission free ‘‘tuning adapters,’’ which are devices unless they are certain that they proposed an exemption to the repurposed set-top boxes that allow will be able to access all of the integration ban for all one-way devices TiVo and Moxi retail set-top boxes and programming to which they subscribe. that do not have digital video recording certain home-theater PCs to access Because the Commission’s rules do not capabilities. switched digital content. These cable require operators to provide access by 8. DISCUSSION. Reforming the operators have provided the tuning retail CableCARD devices to switched CableCARD System. Based on the record adapters voluntarily, as the digital video channels, TiVo is before us, we conclude that Commission’s rules have not required concerned that cable operators could modifications to our rules are necessary cable operators to provide access to withdraw their current willingness to

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provide tuning adapters at no additional operators may choose other options, customers who want to use retail set-top charge to the customer. Furthermore, a such as in-home IP signaling, that boxes do not have satisfactory and number of cable subscribers indicate provide additional benefits to equivalent access to all of the linear that they have trouble obtaining tuning consumers. We do not foreclose any of channels that comprise the cable adapters that work. These commenters these options so long as appropriate package to which they subscribe, we argue that the most effective way to documentation is available to enable will revisit our decision here. provide retail CableCARD devices with UDCPs to access SDV channels. 15. CableCARD Pricing and Billing. In access to switched-digital channels is 14. Subscribers must be able to use the FNPRM, the Commission sought through the use of an IP backchannel. the devices they purchase at retail to comment on a proposal to require cable They assert that the IP-backchannel access all of the linear channels that operators to list the fee for their solution would solve problems that comprise the cable package they CableCARDs as a line item on consumers experience with tuning purchase. Providing retail navigation subscribers’ bills separate from their adapters because it would not require devices and leased navigation devices host devices. The Commission proposed additional, potentially unreliable, with equivalent access to linear this rule change as a means to inform customer-premises hardware. programming at an equivalent service customers about retail navigation device Furthermore, they argue, the tuning price is essential to a retail market for options and to enable them to compare adapter takes up space, is not energy navigation devices. We also want to the price of a retail device to the price efficient, and limits the ability to use all avoid making deployment of SDV for leasing a set-top box from their cable operator. The proposed rule also was of the tuners on multi-tuner devices, unnecessarily costly. While use of IP- intended to ensure that the price that thereby limiting the ability of multi- backchannel would not require subscribers pay for CableCARDs in retail tuner devices to record more than two consumers to purchase additional devices is the same as the price that channels at once. TiVo also expresses equipment, we recognize that subscribers pay for CableCARDs that are concern that cable operators are mandating this approach could be costly affixed to leased devices. Proponents of misinforming subscribers that certain for some cable operators. Moreover, we the Commission’s proposed rule suggest channels are not available on retail note that operators currently provide that separate billing will facilitate fair devices. Finally, TiVo and CEA assert tuning adapters at no charge to choice and promote competition, as a that the IP backchannel solution would consumers. Accordingly, pursuant to viable retail market depends on be less expensive than tuning adapters our authority under Section 629 of the in the long run. transparency, while opponents argue Communications Act, we require cable that such billing would be difficult and 13. We conclude that we should operators to ensure that cable expensive to implement, with no benefit mandate SDV support for retail devices subscribers who use retail CableCARD to subscribers. Proponents of the rule without specifying the technology that navigation devices have satisfactory assert that Section 629 requires separate cable operators must use to ensure such access to all linear channels, but we will billing and prohibits cross- compatibility. SDV is an innovative not mandate a specific method by which subsidization. Opponents of the rule technology with a number of benefits, cable operators must provide such point to Section 629(f), which states that and we do not wish to discourage its access. We believe that this rule change ‘‘Nothing in this section shall be deployment. The record is replete, will address the security concerns construed as expanding’’ the however, with comments from raised about the IP-backchannel Commission’s authority under the consumers who have had negative proposal, as our rule will not require a Communications Act. Those experiences using tuning adapters to cable operator to adopt an approach that commenters assert that the proposed access switched digital channels on it believes is insecure. To address the rule would be an expansion of the their retail CableCARD devices. Both of problems with tuning adapters Commission’s authority under the the proposed solutions have significant identified by commenters, the statutory rate provision, Section 623, benefits and drawbacks, and the satisfactory access standard will require which allows cable operators to Commission believes that with cable operators to ensure that retail aggregate their equipment costs and appropriate direction, cable operators devices are able to tune at least as many charge a standard average rate across will find the most efficient means of switched digital channels as that their footprints. effectively supporting SDV. For operator’s most sophisticated operator- 16. Public Knowledge argues that the example, the Commission recognizes supplied set-top box or four proposed rule does not go far enough. that the economics of deploying an IP simultaneous channels, whichever is Public Knowledge suggests that in backchannel solution are different greater. Further, the satisfactory access addition to requiring cable operators to between those operators who have standard will require the ability to tune separate the monthly fee for a already or will soon deploy SDV, and and maintain the desired channel as CableCARD from the set-top box on a those operators who will deploy the long as it is being watched or recorded, subscriber’s bill, the Commission next generation of SDV hardware. The and to do so reliably. Furthermore, we should also require cable operators to Commission does not wish to foreclose prohibit cable operators from presenting provide each subscriber with the the possibility of an IP backchannel for their customers with misleading aggregate amount the subscriber has those operators to whom it will add de information regarding retail devices’ spent on set-top box lease fees. minimis costs as the result of being ability to tune switched digital Additionally, Public Knowledge argues included in future headend equipment. channels. We adopt these requirements that cable operators should be required Conversely, for those operators who pursuant to Section 629 because we to notify subscribers about the retail currently use SDV and have significant conclude that SDV support for retail options that are available to them. In a deployments of tuning adapters, the cost devices is necessary to assure a retail similar vein, Montgomery County, to retrofit TiVo’s IP backchannel market for navigation devices. We will Maryland suggests that the Commission proposal may be prohibitive. Further, continue to monitor the development of allow state legislatures to adopt the Commission does not presume that SDV and the access afforded to cable legislation that would require cable these are the only two means of customers who use, or wish to use, operators to sell the devices that they supporting SDV, and expect that some retail navigation devices. If we find that lease to ensure that consumers have

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more options to purchase navigation service fees on consumer-owned devices than capable of installing their own devices. that are not imposed on leased devices. CableCARDs. According to these 17. Opponents of the Commission’s These price reductions must reflect the commenters, the installation consists of proposed billing rule assert that a portion of the package price that is inserting a CableCARD and calling in to separate billing requirement would only reasonably allocable to the device lease the cable operator to report a series of serve to confuse consumers and lead fee. In the event that an interested party numbers that appear on an activation them to believe that their cable (including a consumer, local franchise screen, which subscribers could easily operators have added an extra fee to authority, or device manufacturer) do with basic instruction. their bills. They also assert that this rule alleges a violation of this ‘‘reasonably Unfortunately, despite the apparent would arbitrarily burden subscribers allocable’’ standard, the Commission simplicity of installation, these who lease separated security devices as will consider in its evaluation whether individual subscribers comment that not opposed to those who do not because the allocation is consistent with one or all cable technicians are properly currently all subscribers pay the same more of the following factors: (i) an trained to install CableCARDs and they lease fee for a set-top box regardless of allocation determination approved by a do not always arrive with functional whether it has separated security. They local, state, or Federal government CableCARDs; therefore it often takes argue that implementation of the billing entity; (ii) the monthly lease fee as several days and multiple installation rule would be costly for cable operators, stated on the cable system rate card for appointments to get functional as their billing systems are not designed the navigation device when offered by CableCARDs installed. According to to separate the cost of a CableCARD the cable operator separately from a TiVo, ‘‘the premise of ‘plug and play’ from the cost of the set-top box. NCTA bundled offer; and (iii) the actual cost of was that a subscriber should be able to and Arris assert that the availability of the navigation device amortized over a buy a device from a retailer, plug it into this information will not affect the retail period of no more than 60 months. her cable connection, and have it work market because the cost of CableCARDs These rule changes are well within our without the cable operator’s has no effect on the retail market for set- statutory authority under Section 629. intervention;’’ therefore, TiVo argues, top boxes. Section 629 gives the Commission broad until individual subscribers have the 18. Despite their opposition to the power to adopt regulations to assure the option to self-install their own proposed rule as written, NCTA and commercial availability of navigation CableCARDs, subscribers will not be others are not opposed to the purposes devices and states that multichannel able to purchase devices that are truly behind the rule, which are to treat retail video programming distributors may ‘‘plug and play.’’ and leased devices equivalently and lease their own devices, as long as ‘‘the 22. NCTA and CEA advocate a encourage pricing transparency. As a system operator’s charges to consumers modification to the proposed rule that compromise, NCTA has proposed that for such devices and equipment are would require cable operators to allow cable operators notify subscribers of the separately stated and not subsidized by self-installation of CableCARDs on any cost of CableCARDs on the operators’ charges’’ for multichannel video device for which the manufacturer Web sites and yearly rate card notices. programming service. These minor rule provides detailed, step-by-step NCTA asserts that its proposal would changes will serve to ensure that cable installation instructions. Several major serve the same purpose as the operators are not subsidizing the costs cable operators, including Charter and Commission’s proposed rule without of their set-top boxes via service charges , support the self-installation imposing expensive and confusing and will serve to allow consumers to option so long as adequate installation billing burdens on cable operators. compare the costs involved in choosing instructions are provided by the 19. We conclude that NCTA’s between purchasing or leasing a manufacturer. Likewise, manufacturers compromise solution will inform navigation device. This prohibition on such as Panasonic support the provision consumers about CableCARD costs and subsidies and increased transparency is of Web-based installation walkthroughs retail options adequately without vital to the continued development of a as one means of fulfilling the goal of imposing unnecessary burdens on cable retail navigation device market, as it making step-by-step instructions operators. Therefore, we adopt a will allow subscribers to make informed available to consumers seeking to self- requirement that cable operators economic decisions about whether they install CableCARDs. The few cable prominently list the fee for their should purchase a navigation device at operator proponents do, however, CableCARDs as a line item on their Web retail. request a four- to six-month phase-in sites (readily accessible to all members 20. CableCARD Installations. In the period before this rule takes effect, of the public) and annual rate cards FNPRM, the Commission expressed during which time they will develop separate from their host devices, and concern that CableCARD installation and implement necessary internal provide such information orally or in costs and policies may differ procedures and training that reflect the writing at a subscriber’s request. These unjustifiably between retail devices and new policy. CableCARD lease fees must be uniform leased boxes. To address this situation, 23. Commenters including CEA/CERC across a cable system regardless of the Commission proposed requiring and Panasonic suggest that cable whether the CableCARD is used in a cable operators to allow subscribers to operators should be required to permit leased set-top box or a navigation device install CableCARDs in retail devices retail outlets to sell CableCARDs and to purchased at retail. We are not themselves if the cable operator allows assist in the installation at the point of convinced that NCTA’s solution will its subscribers to self-install leased set- sale. Commenters from the cable ensure that cable operators are not top boxes. Furthermore, the industry were not necessarily opposed subsidizing the costs of leased set-top Commission proposed a rule with to this option, but they did note that boxes with service fees. Accordingly, we regard to professional installations that allowing retail stores to install also adopt a rule that requires cable would require technicians to arrive with CableCARDs at the point of sale would operators to reduce the price of at least the number of CableCARDs introduce certain business, technical, packages that include set-top box rentals requested by the customer. and operational hurdles, such as by the cost of a set-top box rental for 21. Commenters who support identifying the encryption technology customers who use retail devices, and adopting the proposed installation rule that a cable operator uses in the specific prohibits cable operators from assessing argue that individual users are more subscriber’s geographic location.

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Therefore, they suggest that the place twelve months to phase in this tuning adapter, this process will Commission encourage industry self-installation requirement. We also encompass complaints relating to such negotiations to explore this option, but require cable operators to inform their equipment as well as complaints they oppose adoption of a rule that subscribers about the self-installation relating to CableCARDs. We will strictly mandates retail installation. TiVo, option when they request CableCARDs. enforce our navigation device rules in however, supports this proposal as one 27. With respect to professional order to ensure proper support for of the few means of fulfilling the true installations, we adopt our proposed CableCARD devices. We conclude that purpose of the CableCARD requirement, rule requiring technicians to arrive with this streamlined complaint process which is to encourage a competitive at least the number of CableCARDs makes CEA’s suggestion that the market for retail devices that can be requested by the customer. We require Commission provide local franchising purchased, taken home, and installed cable operators to make good faith authorities with the authority to enforce without the cable operator’s efforts to ensure that all CableCARDs the CableCARD rules unnecessary, and intervention. delivered to customers or brought to will allow for more consistent 24. In addition to its other proposals, professional installation appointments enforcement of our CableCARD rules CEA seeks better enforcement of the are in good working condition and nationwide. In addition, we will CableCARD rules, including the new compatible with their customers’ develop new consumer education proposed installation rule. CEA suggests devices, and to allow subscribers to materials specifically discussing the that empowering local franchising request CableCARDs using the same availability of cable boxes at retail as an authorities to enforce the CableCARD methods that subscribers can use to alternative to leasing a cable box from rules would encourage cable operators request leased set-top boxes. These rules the cable operator. Within the next few to comply with the rules. are intended to solve the complaints in weeks, these materials will be available 25. Time Warner Cable and Verizon the record that professional CableCARD on our Web site and will be provided by assert that cable operators are best installations often require multiple our call center to those customers who equipped to determine whether appointments. We believe that requiring lack Web access. customers should be allowed to install cable technicians to have CableCARDs 29. The changes we adopt herein will their own CableCARDs. They argue that in good working condition on hand improve the consumer experience the CableCARD installation process is when they are requested and allowing substantially, as cable subscribers will not straightforward, that consumers may subscribers to self-install CableCARDs no longer have to schedule multiple not be equipped to install such will decrease the number of required installation appointments for equipment, and that the installations are appointments dramatically. To address CableCARD installations. Furthermore, not overly expensive. Verizon further Time Warner Cable and Verizon’s these rule changes will place only a de argues that customers have shown no concerns that subscribers may not be minimis burden on cable operators, real demand to perform self-installation. properly equipped to self-install a because the device manufacturer’s or Similarly, Cox submits that the low CableCARD, our self-installation rule vendor’s self-installation instructions number of interested consumers does will apply only where device will include the manufacturer’s or not justify development of costly manufacturers or vendors provide vendor’s toll-free telephone number support mechanisms for those who wish detailed, device-specific instructions on directing customer questions to the to self-install, unless the customer how to install a CableCARD and the manufacturer or vendor and not to the support burden shifts entirely to retail manufacturer’s or vendor’s toll-free cable operator. We disagree with device manufacturers. Verizon also telephone number within the packaging Verizon’s assertion that the Commission expresses skepticism that the of the device and on the manufacturer’s does not have the authority to adopt Commission has authority to adopt such or vendor’s Web site. At this time we such a rule, as we believe that this rule a rule. will not adopt a rule requiring retail falls squarely within our authority 26. We conclude that the best means installation of CableCARDs; however, under Section 629. The need to of assuring the development of a retail since devices will now contain schedule multiple installation market for navigation devices is to instructions from manufacturers or appointments unquestionably is an require cable operators to allow vendors on self-installation and because impediment to realizing a competitive subscribers to self-install CableCARDs. such an action will decrease the burden retail market for navigation devices, and We believe cable operators should have on the cable providers, we encourage the record is replete with comments time to train staff and develop more cable operators and consumer from frustrated consumers who have robust customer support infrastructures electronics retailers to reach agreement had to schedule multiple appointments and procedures, and provide nine through continued private negotiations with technicians due to CableCARD months to comply for any operators that to achieve this type of consumer- installation problems. We believe that allow subscribers on any of their friendly retail option. Congress’s intent in adopting Section systems to self-install any cable modems 28. In addition to empowering cable 629 was to ensure that cable operators or leased set-top boxes. We are not subscribers to install CableCARDs, we treat retail navigation devices in the persuaded by arguments that cable will also make it easier for consumers to same manner that they treat leased operators could not support activation file complaints relating to cable navigation devices. Accordingly, we of retail CableCARD devices within this customer premises equipment believe that we have clear statutory reasonable transition period. However, (including CableCARDs, tuning authority under Section 629 to adopt we are concerned that a cable operator adapters, and set-top boxes) with the this self-installation rule. that does not permit self-installation of Commission by adding a specific 30. Multi-stream CableCARDs. A any equipment that attaches to its reference to CableCARDs and other Multi-stream CableCARD is a single network may not have the customer customer premises equipment to the CableCARD that is capable of decrypting support infrastructures in place to process for filing complaints on our multiple channels, thereby allowing handle self-installations and may need a Web site. If a cable operator chooses to consumers to record one channel while longer transition period. Therefore, we provide satisfactory access to SDV simultaneously watching another will allow cable operators that do not channels for retail devices by means of channel. Original CableCARDs were have any self-installation support in customer-premises equipment such as a only capable of decrypting a single

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stream, therefore requiring devices with UDCPs and M-Cards, that NCTA and the dictate in licensing agreements. They multiple tuners, such as most digital CE industry proposed in 2006. assert that these steps will allow start- video recorders, to include two 33. We conclude that the best step we up companies like SageTV to develop CableCARD slots. With the release of the can take in this regard to assure the their devices, and that the proposed rule Multi-stream CableCARD Interface development of a retail market for will not be effective without this Specification in 2005, device navigation devices is to require cable extension. Indeed, NCTA and MPAA manufacturers obtained the ability to operators to provide multi-stream acknowledge that the Commission’s receive up to six program streams CableCARDs by default, unless a proposed rule would have no effect on though a single CableCARD. Multi- subscriber expressly requests a single- the SageTV certification problems that stream CableCARDs, now called M– stream CableCARD. All new devices the Commission highlighted in the Cards, can also be used by older devices require multi-stream CableCARDs, and FNPRM. that had been designed for single-stream multi-stream CableCARDs have been 36. In a similar vein, IPCO and CableCARDs. Operators began standard equipment since 2007. encourage the Commission deploying M–Cards shortly after the Therefore, requiring cable operators to to streamline the certification process adoption of the Multi-stream provide multi-stream CableCARDs by for the CableCARD separated security CableCARD Interface Specification, and default will conform more closely to the modules, as the Commission does not today retail devices often require them. concept of common reliance, provide have a rule that prescribes a certification In the FNPRM, the Commission improved customer experience, and process for the CableCARD itself. They proposed requiring cable operators to impose little, if any, costs on the assert that CableLabs has delayed offer M–Cards upon request, to reduce industry, as our examination of the certification of competitive separated the equipment fees paid by subscribers record indicates that CableCARD security modules, which limits the by enabling them to use only one manufacturers are no longer making companies’ ability to develop affordable CableCARD per device rather than two single stream CableCARDs to sell to whole-system solutions to sell to cable or more. cable operators. We also adopt the operators. They reason that, if device 31. Commenters were generally multi-stream CableCARD rules that manufacturers can manufacture and test supportive of the proposed rule, though NCTA and the CE industry proposed in their own CableCARDs in conjunction numerous commenters suggested the 2006, as they are necessary to update with their retail devices, they will be Commission require the provisioning of our rules to conform with the current able to develop products more rapidly. state of CableCARD testing procedures. 37. We conclude that the best step we M-Cards by default, rather than on 34. CableCARD Device Certification. can take in this regard to carry out our request. TiVo, Public Knowledge, and In the FNPRM, the Commission statutory mandate under Section 629 is CEA all explicitly suggested this proposed a rule change intended to to (i) modify our rules to reflect updated approach. Arris and Tivo note that all streamline the process of CableCARD testing procedures, and (ii) adopt the leased set-top boxes include M-Cards, device certification. The proposed rule proposed rule that prohibits CableLabs and that newer retail devices require M- would prohibit CableLabs or other or other qualified testing facilities from Cards to function properly. They further qualified testing facilities from refusing refusing to certify UDCPs for any reason claim that the record demonstrates that to certify Unidirectional Digital Cable other than a failure to comply with the retail devices are left to use recycled Products for any reason other than a conformance checklists referenced in single-stream cards that may not work, failure to comply with a device our current rules. These rule changes while leased set-top boxes are outfitted conformance checklist referenced in the should encourage navigation device with new, functioning M-Cards. NCTA Commission’s rules. The Commission manufacturers to build competitive also states they do not object to proposed the rule change based on devices by eliminating unnecessary requiring cable operators to provide an complaints regarding the cost, delays and costs associated with device M-Card to any subscriber who requests complexity, and restrictiveness of testing, while continuing to recognize one, though they assert that certain device certification. The Commission the importance of protecting cable devices work better with single-stream also committed to ‘‘consider any other networks and service. Based on the CableCARDs, and therefore cable proposed solution to streamline the comments we have received about the operators should also have the CableCARD certification process to certification process, we believe that discretion to deploy them to their facilitate the introduction of retail these rule changes do little more than subscribers. navigation devices.’’ codify the certification process as it 32. Only Verizon and John 35. Comments regarding CableCARD exists today. These changes require Staurulakis, Inc. assert that the device certification indicate that the UDCP manufacturers and qualified test Commission should not require cable proposed rule would simply codify the facilities to proceed in accordance with operators to deploy M-Cards. They CableCARD certification process as it Uni-Dir-ATP-I02-040225: ‘‘Uni- assert that such a requirement would be exists today. No commenter opposes the Directional Receiving Device costly and unnecessary because so few proposed rule, although certain Acceptance Test Plan,’’ M–UDCP–PICS– subscribers actually use CableCARDs. commenters argue that the proposed I04–080225, and TP–ATP–M–UDCP– Verizon further states that the rule would not do enough to protect I05–20080304. The Director of the marketplace is already working to device manufacturers. In addition, Federal Register approves this increase the availability of M-Cards for certain commenters argue that the incorporation by reference in those few subscribers. Comcast goes proposed device certification rule is not accordance with 5 U.S.C. 552(a) and 1 further, stating that M-Cards have been rigorous enough to assure a competitive CFR part 51. You may obtain a copy widely used since 2007, and cable device market. Specifically, CEA and from Laboratories, Inc., operators have sufficient supplies of Public Knowledge each encourage the 858 Coal Creek Circle, Louisville, multi-stream CableCARDs to meet Commission to extend the device Colorado 80027, www.cablelabs.com/ customer demand for them. NCTA also certification rule to apply to /udcp, (303) 661–9100. You suggests that the Commission adopt the CableCARD-compatible computers and may inspect a copy at the Federal multi-stream CableCARD rules, which computer peripheral devices and to Communications Commission, 445 12th would test for compatibility between limit the terms that CableLabs may St., SW., Reference Information Center,

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Room CY–A257, Washington, DC 20554, manufacturers and cable operators widespread network-based connectivity (202) 418–0270 or at the National suggested that alternative interfaces for a wide variety of devices, from Archives and Records Administration could perform the same functions and handheld viewers to media servers. This (NARA). For information of the have wider consumer adoption than the focus on broad interoperability has availability of this material at NARA, IEEE 1394 interface. The Commission resulted in standards which permit the call 202–741–6030, or go to: http:// also proposed to clarify that operators addition or subtraction of various www.archives.gov/federal_register/ must enable bi-directional functional components, including code_of_federal_regulations/ communication over these interfaces. remote control commands and content ibr_locations.html. The proposed clarification would formats. Three consumers suggested that 38. Comments reflect that while the require the interfaces to be able to the Commission require that the certification process is costly, receive remote-control commands from interfaces pass through closed CableLabs’s device testing is conducted a connected device and deliver video in captioning data. The 1394 Trade in a professional manner and is any industry-standard format to ensure Association and Texas Instruments important to ensure that CableCARD that video made available over these commented that each leased set-top box devices work properly. CEA claims interfaces can be received and displayed should be required to play back any generally, however, that certain by devices manufactured by unaffiliated video that is sent to it over an IEEE 1394 CableCARD licensing terms may go manufacturers (i.e., manufacturers not interface. beyond what is allowed under Sections owned by or under license of the leased 43. Comcast, Verizon, and NCTA each 76.1201 and 76.1204 of our rules. They set-top box vendor or cable operator) argue that defining ‘‘functional’’ would assert that these licensing terms limit and sold at retail. The record generally put a large burden on cable operators. innovation. To the extent that any supported replacing the IEEE 1394 They assert that standards organizations interested party has concerns that an interface requirement with a rule that are still working to define standards for aspect of the CableCard licensing regime would instead require cable operators to functionality over IP-based connections, violates Sections 76.1201 through include an IP-based connection on all and that cable operators could not 76.1204 of the Commission’s rules, that high-definition set-top boxes that they comply with a functionality party may allege a specific violation of acquire for distribution to customers. requirement in the near future. They the Commission’s rules pursuant to The commenters also agreed that the assure the Commission that the market Section 76.7 of our rules. Commission does not need to define the will determine the specific type of 39. We decline to adopt IPCO and physical interface (e.g., IEEE 1394, functionality that consumers desire, and Nagravision’s proposal to extend Ethernet, Wi-Fi, or MoCA) used to therefore urge the Commission not to certification rules to the CableCARD transfer the IP data. With respect to lock operators into a certain defined set security modules by dictating the functionality, commenters disagreed on of functions, lest the Commission make specific testing procedures that whether the Commission should set a the same mistakes it made with regard CableLabs must use to certify baseline for functionality of that to the IEEE 1394 interface requirement. CableCARD security modules. interface. 44. We conclude that the best step we CableCARDs are an important part of 41. Certain commenters suggested that can take in this regard to fulfill our protecting signal theft and protecting the Commission should adopt baseline statutory mandate under Section 629 is cable networks. Section 629(b) prohibits standards to define a ‘‘functional’’ IP to modify our interface rule to require the Commission from adopting connection on a set-top box. Various cable operators to include an IP-based regulations that would jeopardize the industry associations have developed interface on all two-way high-definition security of cable systems or interfere suites of standards that include set-top boxes that they acquire for with a cable operator’s right to prevent functionality we might rely on. For distribution to customers without theft of service. Therefore, we believe example, Panasonic suggested that the specifying a physical interface. IP has that it would be prudent to defer to Commission require that the IP overwhelming marketplace support and CableLabs’s policies on certifying connection pass through ‘‘OpenCable serves the same purpose that our IEEE whether the CableCARDs themselves, Host Thin Chassis Device’’ remote 1394 connection requirement was which are the lynchpins of the commands. OpenCable, branded for intended to serve. We agree with conditional access scheme, are robust consumers as tru2way, was developed commenters that the method of physical enough to protect cable systems and by CableLabs, is a set of standards transport (e.g., Ethernet, Wi-Fi, MoCA, prevent theft of service. defining a for or IP implemented over IEEE 1394) is 40. Interface Requirements. The supporting interactive cable services. As not relevant in this situation, as we Commission’s rules require cable the full implementation, branded for predict based on our examination of the operators to include an IEEE 1394 consumers as tru2way, has seen limited record in this proceeding that interface on all high-definition set-top adoption in retail devices, the Host Thin consumers will use network adapters to boxes that they acquire for distribution Chassis Device standard was developed choose the physical transport method to customers. IEEE 1394, also known as to provide reduced costs while that they prefer for networking their Firewire, is an external serial data simultaneously enabling two-way devices, in furtherance of the goals of connection that allows for audio and communication with CableCARDs. Section 629. video data transfers. The Commission Among the component parts of the Host 45. Contrary to Comcast, Verizon and adopted a requirement from the MOU to Thin Chassis Device standard are NCTA’s assertions, we believe that it is provide an IEEE 1394 interface on all specifications for passing remote control important to define a baseline of high-definition set-top boxes as a means commands entered with the TV remote functionality to ensure that consumers of enabling a market for devices which control through to the set-top box. who network their devices and device interact with the operator-supplied set- 42. CEA and the Digital Living manufacturers can rely on networked top box. In the FNPRM, the Commission Network Alliance (‘‘DLNA’’) each devices’ ability to communicate with proposed to give cable operators greater suggest that the Commission require leased set-top boxes. However, as with flexibility in deciding which type of that devices follow the DLNA the physical interface itself, we find that interface to include on the set-top boxes guidelines. DLNA standards have been it is appropriate, at this time, to refrain that they lease. Set-top box or are being developed to enable from specifying the exact manner in

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which this baseline of functionality is to request them and to commonly rely on Commission explained in 2005, be implemented. Accordingly, we CableCARDs for any digital video common reliance ensures that cable modify our rules to require that the IP- recorder and bidirectional devices that operators have incentives to make their based connection deliver the video in a they offer for lease or sale. In limiting services as accessible as possible to recordable format (e.g., MPEG–2, the proposed rule’s applicability to CableCARD devices. We find that even MPEG–4, h.264), and pass through devices with less functionality, the if cable operators are allowed to deploy closed captioning data in a standard Commission attempted to balance the integrated one-way devices they will format. We also believe more advanced goal of easing the financial burdens still have incentives to ensure that functionalities are necessary to provide associated with transitioning to digital CableCARD devices are able to receive a foundation for a retail market of cable systems with the benefits that their services because all two-way, navigation devices that are connected to stem from common reliance. The (‘‘DVR’’) and leased set-top boxes with limited Commission also sought comment on Internet-connected devices deployed by capabilities. Those functionalities whether the potential effect on the retail cable operators will still be subject to include service discovery, video market supports limiting any relief to the integration ban. Furthermore, as transport, and remote control command smaller cable systems with activated NCTA highlights, cable operators have pass-through standards for home capacity of 552 MHz or less. Some deployed more than 40 times as many networking. While these functionalities commenters additionally suggested that CableCARDs in their own separated may exist in some form today, there is the integration ban should be eliminated security devices than in devices considerable work ongoing in industry entirely. purchased at retail, and we believe that standard bodies to provide those 48. Exempting Limited Capability the former devices will remain in functionalities in a manner designed for High Definition Set-Top Boxes. NCTA, service for years to come. We conclude IP-based and home network solutions. ACA, Comcast, and Time Warner that this decision will not undermine We, therefore, do not mandate that these support the proposed rule and suggest the goal of common reliance, as we additional functionalities be supported that it will not impact the limited retail believe that the majority of operator- by cable operators immediately. We do, market for navigation devices that leased devices will continue to however, wish to ensure that consumers currently exists. Motorola adds that HD commonly rely on CableCARDs, and benefit from these additional capability is commonplace rather than therefore cable operators will continue functionalities in a timely manner, and advanced and, therefore, the proposed to have adequate incentives to support require operators to provide these rule would have no effect on the retail CableCARDs in retail devices. Allowing additional functionalities by December market for navigation devices, as the operators to deploy one-way devices 1, 2012, but do not mandate a particular competitive devices available at retail with integrated security will help lower means by which these functionalities have advanced functionality such as the costs of set-top box rentals to are to be provided. Internet connectivity and recording subscribers and allow operators to 46. Promoting Cable’s Digital capability. Finally, proponents of the dedicate more of their spectrum to Transition. The integration ban, which rule change assert that it will allow broadband without undermining the went into effect in 2007, is designed to cable operators to deploy less expensive effectiveness of the integration ban. In support the market for retail navigation set-top boxes which will ease this vein, while we recognize that the devices by creating an incentive for consumers’ financial burden when cable inclusion of an IP-based home- cable operators to fully support operators transition to digital systems. networking connection would provide CableCARDs, drive costs down through BBT suggests that, for the sake of additional functionality, we believe that economies of scale, and encourage cable regulatory certainty, the Commission the costs to consumers of imposing the operators to strive to improve and should not take a piecemeal approach in interface requirement would outweigh maintain the CableCARD system. In the applying the integration ban suggesting the potential benefits. For these reasons, FNPRM, the Commission proposed to that the Commission either abandon the we exempt one-way set-top boxes from allow operators to place into service integration ban altogether or not at all. the Commission’s integration ban and, new one-way navigation devices 49. Public Knowledge and CEA argue correspondingly, our interface (including devices capable of processing that the proposed rule would requirements. a high-definition signal) that perform undermine the goals of common both conditional access and other reliance. They assert that the proposed 51. Limiting the Proposed Exemption functions in a single integrated device rule would limit cable operators’ to Small Systems. We decline to put any provided that the devices do not incentives to support CableCARDs, and limitation on the size or capacity of the perform recording functions. The that the current state of CableCARD systems to which the modified rule integration ban raises the cost of set-top support suggests that cable operators applies. While no commenter supports boxes for cable operators, which need more, not fewer, incentives to adopting an exemption limited to small discourages operators from transitioning support CableCARDs. They assert also cable operators as its preferred course of their systems to all-digital. that the Commission still does not have action, Public Knowledge, which Transitioning to an all-digital cable reliable data regarding the cost of encourages the Commission not to adopt system allows operators to make more relying on CableCARDs or the economic any exemption to the integration ban, efficient use of spectrum capacity, effect CableCARD exemptions have on alternatively suggests that the allowing the operators to dedicate more the retail market. CEA and Public Commission limit the rule’s of their spectrum to broadband and Knowledge argue that, without such applicability to small cable systems. other services. The impetus for this data, the Commission cannot accurately Public Knowledge reasons that such a proposed rule change was to remove balance the public interest benefits of limitation would mitigate the economic barriers that discourage cable the integration ban against the benefit of detrimental effects that such a rule operators from transitioning their an exemption. would have on common reliance and systems to all-digital. 50. Based on our examination of the the development of a retail market for 47. The rule proposed in the FNPRM record, we will adopt the limited navigation devices. Cable operators would still require operators to offer exemption to the integration ban oppose such a limitation and assert that CableCARDs to any subscribers who proposed in the FNPRM. As the limiting the relief would be akin to not

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offering relief at all. They argue that their negotiations on a bidirectional messages, [Program and System economies of scale are necessary to CableCARD standard, we do not believe Information Protocol] information, and encourage manufacturers to develop it is necessary for those parties to closed captions so there is no assured inexpensive devices with integrated continue to file status reports regarding compliance with all of the relevant security. They argue that small system those negotiations, and we therefore standards in the agreed-upon Joint Test operators will not be able to achieve the eliminate that requirement. As we will Suite.’’ We conclude that making such economies of scale that are necessary to still require cable operators to testing a part of our rules is necessary make this relief effective. They also commonly rely on CableCARDs in to ensure that new devices are built to assert that limiting the relief to small certain set-top boxes, we will retain the comply with the Commission’s rules. systems could unfairly harm subscribers requirement that Comcast Corporation, Accordingly, we grant NCTA’s petition who happen to live in areas with large Time Warner Cable, Cox for reconsideration with respect to this systems because consumers would Communications, Charter issue, and modify our rules to clarify benefit if large systems were to Communications, and Cablevision file that a manufacturer may not self-certify transition to all-digital as well. For the quarterly reports detailing CableCARD its first DTV. same reasons that these commenters deployment and support. 56. Next, NCTA asserts that the present, we agree that a small-system 54. Petitions for Reconsideration. The Commission’s rules permit too much limitation would undermine the Commission also has before it eight flexibility in defining a qualified testing benefits of the rule change. petitions for reconsideration in this facility, and would allow unqualified 52. Ending the Integration Ban. We docket. NCTA, DIRECTV, Genesis organizations to test plug and play disagree with the arguments of NCTA Microchip, Inc., MPAA, Broadcast products because our rules do not and cable operators that the Music, Inc. and the American Society of require test facilities to be impartial or Commission should abandon the Composers, Authors and Publishers have appropriate testing equipment. integration ban altogether. They assert (‘‘BMI and ASCAP’’), and the National NCTA urges us to define ‘‘qualified that the integration ban is an expensive, Music Publishers’ Association et al. testing facility’’ more precisely. CEA discriminatory requirement with no (‘‘NMPA’’) separately filed petitions for disagrees, asserting that NCTA bases its consumer benefit. Cable operators reconsideration of the Plug and Play assertions on unfounded security reason that ending the integration ban Order, while NCTA and MPAA also concerns. We agree with NCTA’s would decrease the costs of petitioned for reconsideration of the assertions that it is important for our transitioning to all-digital systems and Commission’s Sua Sponte rules to require that qualified testing would lead to increased availability of Reconsideration Order. As noted below, facilities are impartial organizations broadband. Finally, they argue that many of these petitioners seek whose employees have a detailed terminating the integration ban would reconsideration of the Commission’s understanding of the Joint Test Suite for reduce set-top box costs for all encoding rules. Our encoding rules CableCARD products. We do not believe subscribers. In addition to the prescribe whether and how MVPDs may that NCTA’s security concerns are arguments summarized above, mark different forms of content (e.g., unfounded, nor do we believe that opponents of ending the integration ban broadcast, non-premium subscription, NCTA’s suggested rule change will assert that it would discourage cable , video-on-demand, etc.) hinder independent testing facilities operators from negotiating in good faith to limit the number of times the content from becoming ‘‘qualified testing in developing a successor technology to may be copied. In addition to the facilities.’’ Therefore, we adopt NCTA’s CableCARD, as cable operators would petitions for reconsideration of orders recommendation by modifying our rules have no economic incentive to work to adopted in the plug-and-play dockets, to specifically require testing facilities develop such a technology in a timely the Commission has before it a petition to be impartial and have appropriate fashion. We agree. The integration ban for reconsideration filed by TiVo, Inc., testing equipment. To the extent that continues to serve several important which is mooted by the rule changes there are disagreements regarding purposes—better support for adopted in this order. whether specific testing facilities meet CableCARD devices, economies of scale 55. NCTA. Our device certification the standards set forth in our modified for CableCARDs, and economic rules allow device manufacturers to self- rule, we will consider such incentives to develop better solutions. certify CableCARD devices once they disagreements on a case-by-case basis. Ending the integration ban before a have received CableLabs certification for 57. In its final critique of the Plug and successor standard is developed would any certified CableCARD device. NCTA Play Order, NCTA takes issue with the undermine the market for retail urges the Commission to reconsider the language of certain Commission rules. navigation devices. rule that a manufacturer’s certified first NCTA asserts that the Commission’s 53. Two-Way Negotiation Reporting. ‘‘product’’ eliminates the need for its rules should unequivocally state that As the Commission discussed in the first television set to be tested if the digital cable ready products must FNPRM, in 2005 the Commission manufacturer has already received ‘‘pass’’ applicable tests, rather than the adopted a requirement that NCTA and certification for a set-top box. NCTA current requirement which merely CEA file reports every 60 days regarding asserts that digital televisions (‘‘DTVs’’) requires that the devices be subject to the status of negotiations on a are more complex than DVR devices or testing. NCTA also requests that we bidirectional CableCARD standard. As other products, and that a amend our rules to clarify that a cable noted above, the six largest cable manufacturer’s first television should be operator may carry more than 12 hours operators and numerous consumer tested in order to ensure that of programming metadata (Program and electronics manufacturers negotiated an consumers’ televisions are able to System Information Protocol or ‘‘PSIP’’ agreement for bidirectional receive digital cable programming. We data) if it so chooses, and shall only be compatibility that continues to rely on agree. As NCTA explains in its petition required to carry PSIP data that and builds on the standards for for reconsideration, ‘‘unless the first conforms to the standards adopted by CableCARDs by using a middleware- tested UDCP is a DTV, there will be no the Advanced Television Systems based solution called ‘‘tru2way.’’ As the real test that the UDCP actually and Committee for transmission of that data. cable industry and the consumer clearly displays encrypted As these requests will clarify the electronics industry have concluded programming, [emergency alert system] Commission’s intent in the Plug and

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Play Order, we adopt them without support a cable-only version of IEEE we are convinced that Genesis exception. 1394, and prevent consumers from Microchip’s objections are not 58. NCTA’s petition for connecting satellite boxes to their supported by marketplace reality. reconsideration of the Sua Sponte television sets. Given the rule change Therefore, we deny Genesis Microchip’s Reconsideration Order requests that the that we adopted in Section III.B above petition for reconsideration. Commission clarify that programming to remove the IEEE 1394 output 63. MPAA. MPAA seeks that is not retransmitted ‘‘substantially requirement, and the limited consumer reconsideration of four points in the simultaneously’’ to the time it is adoption of IEEE 1394 outputs on Plug and Play Order. First, MPAA broadcast is not considered television sets, we dismiss DIRECTV’s asserts that the Commission should ‘‘Unencrypted Broadcast Television’’ petition for reconsideration as moot on mandate that all digital cable ready under our encoding rules. Currently, our this point. devices be built with the capability to rules define ‘‘Unencrypted Broadcast 61. DIRECTV also takes issue with the recognize and honor video programming Television’’ as the retransmission of any Commission’s decision to provide that is encoded with a request to service, program, or schedule or group CableLabs with the authority to approve remotely disable selected audio/video of programs that is made by a terrestrial and reject content protection outputs, also known as ‘‘selectable television broadcast station in the clear technologies for set-top box outputs and output control.’’ MPAA believes that (i.e., without any encryption). NCTA to license DFAST technology, which is selectable output control functionality is asserts that it is likely that this the content protection scheme used essential to protect content and facilitate definition is broader than the between CableCARDs and UDCPs. future business models that take Commission intended. NCTA states, as DIRECTV’s objections are based on a advantage of selectable output control an example, that the omission of the concern that CableLabs could use its functionality. We do not believe that term ‘‘substantially simultaneously’’ licensing power for anti-competitive such a mandate is necessary. In May prevents it from placing copy purposes against DIRECTV’s services 2010, the Commission’s Media Bureau protections on VOD content that was and devices by preventing DIRECTV released an order granting in part originally delivered over the air because devices from using DFAST or rejecting MPAA’s request for waiver of the it is a retransmission of a program that DIRECTV’s preferred content protection prohibition on the use of selectable was initially made by a terrestrial technologies. The intervening years output control for certain high-value television broadcast station. With our since the adoption of the Plug and Play films in order to support a new business encoding rules, we intend to reflect Order have demonstrated that these model of delivering early-release films consumer expectations that they may concerns are without merit. Indeed, as over MVPD systems to consumers. As freely copy unencrypted broadcast of June 30, 2003, 20.4 million MPAA argued in support of that waiver, programming as it airs. We also intend households in the U.S. subscribed to ‘‘the use of SOC would have no impact to reflect that consumers do not have DBS service; as of June 2010, that whatsoever on the ability of existing the expectation that they may freely number increased to over 33 million, [consumer electronics equipment] to copy all content simply because it was and DIRECTV has not established that work in exactly the same fashion that available over the air at one point CableLabs has rejected any content such devices work today.’’ While it is during the history of television protection technology to DIRECTV’s possible that consumer electronics broadcasting. Therefore, we agree with detriment. Furthermore, we have manufacturers may want to build NCTA’s assertion that we should add invited DIRECTV and others to devices with SOC in order to be the phrase ‘‘substantially cooperate with the Commission as we compatible with future business models simultaneously’’ back into the definition seek to develop a successor technology like the early-release film model, as they of ‘‘Unencrypted Broadcast Television,’’ to CableCARD that would apply to all are free to do under our rules, we do not for the reason that NCTA provides. MVPDs. Accordingly, we deny believe that it is necessary to require 59. DIRECTV. DIRECTV urges the DIRECTV’s petition for reconsideration. such functionality to protect high-value Commission to close what it calls the 62. Genesis Microchip. Genesis content or ensure the success of such ‘‘broadband loophole’’ in the encoding Microchip takes issue with the future business models. Therefore, we rules. According to DIRECTV, cable Commission’s requirement that a DVI or do not believe that it is necessary to operators and telcos will be able to HDMI interface be included on a digital mandate that such functionality be built subvert the Commission’s encoding cable ready device. Genesis Microchip into consumer electronics devices, and rules by delivering their video offerings asserts that DVI and HDMI were not we deny MPAA’s petition for over the Internet, which are specifically developed by standards development reconsideration with respect to this exempt from our encoding rules. We organizations such as IEEE and ANSI, issue. understand DIRECTV’s concern, but and are not available on a non- 64. Second, MPAA would like there is no evidence that any MVPD is discriminatory basis. Genesis Microchip Subscription VOD designated as a using Internet-based delivery to subvert also asserts that the Commission’s defined business model. Subscription our encoding rules. If DIRECTV has requirement violates the Administrative VOD is a video-on-demand service that evidence that this concern is more than Procedure Act. Opponents to Genesis requires customers to subscribe to a hypothetical and is harming consumers, Microchip’s petition for reconsideration service to gain access to the on-demand we urge the company to file a petition point out correctly that the Commission programming. In the Plug and Play for declaratory ruling or a petition for addressed Genesis Microchip’s Order, the Commission classified rulemaking. Therefore, we deny this arguments in the Plug and Play Order, Subscription VOD as an Undefined portion of DIRECTV’s petition for stating that ‘‘the technology underlying Business Model, in order to ‘‘allow reconsideration. these specifications is widely available [* * *] SVOD to more fully develop as 60. DIRECTV next argues that the in the marketplace today’’ and that ‘‘the a program offering in the marketplace.’’ Commission should define minimum adopter agreements for these MPAA asserts that because the standards that include an IEEE 1394 technologies are freely offered on non- Commission did not explicitly adopt a interface. DIRECTV is concerned that discriminatory terms.’’ Furthermore, rule that allows cable operators to television manufacturers could build HDMI is a ubiquitous output, available prohibit their subscribers from copying sets with IEEE 1394 connections that on an estimated one billion devices, and Subscription VOD, the Commission will

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stifle the development of the service. does not nullify contractual obligations to switched digital channels, we dismiss Starz Encore Group originally opposed between MVPDs and content providers. TiVo’s petition as moot. this petition, arguing that the MPAA is correct in its assertion that the 71. Conclusion. The steps we take in Commission’s flexible rules would Commission did not intend that MVPDs this order represent inexpensive reforms encourage SVOD to flourish, but later be allowed to use Section 76.1908(a) of that will remove the disparity in the withdrew its opposition based on its the Commission’s rules to make copies subscriber experience for those new position that the ‘‘Undefined of ‘‘Copy Never’’ content on a PVR in a customers who choose to purchase a Business Model’’ public notification consumer’s home. Therefore, we clarify retail navigation device as opposed to process is ‘‘difficult and cumbersome that Section 76.1908(a) does not permit leasing the cable provider’s set-top box. * * * for cable operators to navigate.’’ MVPDs to make copies of content that These steps will help to develop a retail We conclude that MPAA’s concerns would violate agreements between market for navigation devices during the were unfounded, and that the content owners and MVPDs. interim period before a successor procedures agreed upon in the MOU are 67. Finally, MPAA seeks review of the solution is developed and implemented sufficient to meet the needs of content Commission’s Sua Sponte for all MVPDs. While we are optimistic owners, MVPDs, and their subscribers. Reconsideration Order on the same about the prospects of a successor As contemplated in the Plug and Play grounds that NCTA does. For the same technology, we must also be pragmatic Order, Subscription VOD services have reasons provided in our consideration of about harnessing realized solutions. thrived in the marketplace, as Starz On- NCTA’s petition above in paragraph 57, Therefore, until a successor technology Demand, HBO On-Demand, Cinemax MPAA’s petition is granted with respect is actually available, the Commission On-Demand, and Showtime On-Demand to this issue. must strive to make the existing are all popular services available to 68. BMI and ASCAP. BMI and ASCAP CableCARD standard work effectively. consumers. Subject to the review have filed a petition for reconsideration 72. Procedural Matters. Paperwork seeking a declaration that performance process for Undefined Business Models Reduction Act Analysis. This Order rights organizations are allowed to set forth in Section 76.1906 of our rules, adopts new or revised information decrypt content that has been content providers and MVPDs are free to collection requirements subject to the encrypted, when used solely for the negotiate the terms for how such Paperwork Reduction Act of 1995 purpose of monitoring and tracking business models are encoded. To the (PRA), Public Law 104–13. The transmissions of audiovisual works for extent that any interested party has requirements will be submitted to the royalty purposes. We do not believe that specific problems with the current state Office of Management and Budget a rule change is necessary for such a of the encoding of any SVOD service, (OMB) for review under section 3507 of narrow exception of our rules, and we our rules set forth procedures for filing the PRA. The Commission will publish complaints regarding how such content agree with the Home Recording Rights Coalition that the Commission does not a separate notice in the Federal Register is encoded. Accordingly, we deny inviting comment on the new or revised MPAA’s petition for reconsideration have the authority to grant a waiver of the Digital Millennium Copyright Act’s information collection requirement(s) with respect to this issue. adopted in this document. The 65. Third, MPAA seeks simplified prohibition on circumventing content requirement(s) will not go into effect procedures for announcing and encryption. Accordingly, we deny BMI until OMB has approved it and the challenging the launch of an Undefined and ASCAP’s petition for Commission has published a notice Business Model for content encoding reconsideration. purposes. When an entity launches a 69. NMPA. The National Music announcing the effective date of the new video programming service that is Publishers Association seeks information collection requirement(s). not defined in our encoding rules, that reconsideration of the Commission’s In addition, we note that pursuant to the entity must announce its launch decision not to require output controls Small Business Paperwork Relief Act of publicly, describe the service, and on digital audio outputs. NMPA asserts 2002, Public Law 107–198, see 44 U.S.C. explain how it will be encoded for that unprotected digital audio outputs 3506(c)(4), we previously sought recording purposes. Interested parties will contribute to illegal copying, and specific comment on how the may then challenge the encoding terms that the Commission’s decision not to Commission might ‘‘further reduce the for up to two years after the require content protections on digital information collection burden for small announcement of the service. MPAA’s audio outputs violates copyright business concerns with fewer than 25 challenge stems from a concern that concerns. We continue to believe that employees.’’ We find that the modified Undefined Business Model our existing treatment of audio outputs information collection requirements announcements will lead to regulatory is necessary to protect legacy devices must apply fully to small entities (as uncertainty because numerous MVPDs that do not have protected digital well as to others) to ensure compliance will be required to make connections. Moreover, NMPA provides with our CableCARD rules, as described announcements regarding these new no evidence that illegal copying of the in the Order. business models, and that the window audio channel of cable television 73. Final Regulatory Flexibility for accepting such challenges is too programming is anything more than a Analysis. As required by the Regulatory long. We disagree. This rule has been in speculative problem. Accordingly, we Flexibility Act, the Commission has effect for over six years, and the deny NMPA’s petition for prepared a Final Regulatory Flexibility Commission has not received a single reconsideration. Analysis (‘‘FRFA’’) relating to this challenge regarding the encoding rules 70. TiVo. On July 27, 2009, TiVo filed Report and Order. The FRFA is set forth for an undefined business model. a petition for reconsideration of the in Appendix A. Accordingly, we conclude that MPAA’s Commission’s decision that our then 74. Congressional Review Act. The speculative challenge is unfounded. existing rules did not require cable Commission will send a copy of this 66. Fourth, MPAA seeks clarification operators to provide UDCPs with access Third Report and Order in a report to be that Section 76.1908(a), which allows to switched digital channels. Due to the sent to Congress and the Government MVPDs to maintain undistributed rule change that we adopt in Section Accountability Office pursuant to the copies of audio-visual content that is III.A.1 above, which requires cable Congressional Review Act, see 5 U.S.C. encoded in any way the MVPD chooses, operators to provide UDCPs with access 801(a)(1)(A).

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75. Additional Information. For contained in Sections 1, 4(i) and (j), 303, cable company’’ is one serving 400,000 additional information on this 403, 601, 624A and 629 of the or fewer subscribers, nationwide. proceeding, contact Steven Broeckaert, Communications Act of 1934, as Industry data indicate that, of 1,076 [email protected], or Brendan amended, 47 U.S.C. 151, 154(i) and (j), cable operators nationwide, all but Murray, [email protected], of the 303, 403, 521, 544a and 549. eleven are small under this size Media Bureau, Policy Division, (202) 81. Description and Estimate of the standard. In addition, under the 418–2120. Number of Small Entities to Which the Commission’s rules, a ‘‘small system’’ is 76. For additional information Proposed Rules Will Apply. The RFA a cable system serving 15,000 or fewer concerning the information collection(s) directs the Commission to provide a subscribers. Industry data indicate that, contained in this document, contact description of and, where feasible, an of 6,635 systems nationwide, 5,802 Cathy Williams at (202) 418–2918, or estimate of the number of small entities systems have under 10,000 subscribers, via the Internet at [email protected]. that will be affected by the proposed and an additional 302 systems have rules. The RFA generally defines the Final Regulatory Flexibility Analysis 10,000–19,999 subscribers. Thus, under term ‘‘small entity’’ as having the same this second size standard, most cable 77. As required by the Regulatory meaning as the terms ‘‘small business,’’ systems are small. Flexibility Act of 1980, as amended ‘‘small organization,’’ and ‘‘small (RFA), an Initial Regulatory Flexibility 84. Cable System Operators. The governmental entity’’ under Section 3 of Communications Act of 1934, as Analysis (IRFA) was incorporated in the the Small Business Act. In addition, the Fourth Further Notice of Proposed Rule amended, also contains a size standard term ‘‘small business’’ has the same for small cable system operators, which Making (FNPRM). The Commission meaning as the term ‘‘small business is ‘‘a cable operator that, directly or sought written public comment on the concern’’ under the Small Business Act. through an affiliate, serves in the proposals in the FNPRM, including A small business concern is one which: aggregate fewer than 1 percent of all comment on the IRFA. No commenting (1) Is independently owned and subscribers in the United States and is parties specifically addressed the IRFA. operated; (2) is not dominant in its field not affiliated with any entity or entities This present Final Regulatory Flexibility of operation; and (3) satisfies any whose gross annual revenues in the Analysis (FRFA) conforms to the RFA. additional criteria established by the aggregate exceed $250,000,000.’’ The 78. Need for, and Objectives of, the Small Business Administration Commission has determined that an Rules. The need for FCC regulation in (‘‘SBA’’). this area derives from deficiencies in 82. Cable Television Distribution operator serving fewer than 677,000 our rules that prevent consumer Services. Since 2007, these services subscribers shall be deemed a small electronics manufacturers from have been defined within the broad operator, if its annual revenues, when developing video navigation devices economic census category of Wired combined with the total annual (such as televisions and set-top boxes) Telecommunications Carriers; that revenues of all its affiliates, do not that can be connected directly to cable category is defined as follows: ‘‘This exceed $250 million in the aggregate. systems and access cable services industry comprises establishments Industry data indicate that, of 1,076 without the need for a cable-operator primarily engaged in operating and/or cable operators nationwide, all but ten provided navigation device. The providing access to transmission are small under this size standard. We objectives of the rules we adopt are to facilities and infrastructure that they note that the Commission neither support a competitive market for own and/or lease for the transmission of requests nor collects information on navigation devices by increasing voice, data, text, sound, and video using whether cable system operators are customer service and by improving wired telecommunications networks. affiliated with entities whose gross audio-visual output functionality on Transmission facilities may be based on annual revenues exceed $250 million, cable-operator-leased devices. a single technology or a combination of and therefore we are unable to estimate 79. Specifically, we adopt rules that technologies.’’ The SBA has developed more accurately the number of cable (i) require cable operators to provide a small business size standard for this system operators that would qualify as customer and technical support for category, which is: all such firms having small under this size standard. Radio retail devices to access switched digital 1,500 or fewer employees. To gauge and Television Broadcasting and channels; (ii) require that equivalent small business prevalence for these Wireless Communications Equipment prices be charged for CableCARDs for cable services we must, however, use Manufacturing. The Census Bureau use in cable-operator-provided set-top current census data that are based on defines this category as follows: ‘‘This boxes and in retail devices, and that the previous category of Cable and industry comprises establishments require the pricing information and Other Program Distribution and its primarily engaged in manufacturing billing of the CableCARD to be more associated size standard; that size radio and television broadcast and transparent; (iii) simplify the standard was: all such firms having wireless communications equipment. CableCARD installation process; (iv) $13.5 million or less in annual receipts. Examples of products made by these require cable operators to provide their According to Census Bureau data for establishments are: transmitting and subscribers with CableCARDs that can 2002, there were a total of 1,191 firms receiving antennas, cable television tune multiple streams of programming; in this previous category that operated equipment, GPS equipment, pagers, and (v) streamline the CableCARD for the entire year. Of this total, 1,087 cellular phones, mobile device certification process by firms had annual receipts of under $10 communications equipment, and radio modifying our rules to reflect updated million, and 43 firms had receipts of and television studio and broadcasting testing procedures, and prohibiting a $10 million or more but less than $25 equipment.’’ The SBA has developed a qualified testing facility from refusing to million. Thus, the majority of these small business size standard for Radio certify UDCPs for any reason other than firms can be considered small. and Television Broadcasting and a failure to comply with the 83. Cable Companies and Systems. Wireless Communications Equipment conformance checklists referenced in The Commission has also developed its Manufacturing, which is: all such firms our current rules. own small business size standards, for having 750 or fewer employees. 80. Legal Basis. The authority for the the purpose of cable rate regulation. According to Census Bureau data for action proposed in this rulemaking is Under the Commission’s rules, a ‘‘small 2002, there were a total of 1,041

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establishments in this category that there are approximately 476 small cable operators and subscribers need to operated for the entire year. Of this computer manufacturers. schedule. total, 1,010 had employment of under 88. Description of Projected 92. The rule regarding Multi-stream 500, and an additional 13 had Reporting, Recordkeeping and Other CableCARDs places a minimal burden employment of 500 to 999. Thus, under Compliance Requirements. The rules on cable operators by requiring cable this size standard, the majority of firms adopted in the Order will impose operators to provide subscribers with can be considered small. additional reporting, recordkeeping, and Multi-stream CableCARDs. However, 85. Other Communications compliance requirements on cable the record indicates that Multi-stream Equipment Manufacturing. The Census operators. The Order adopts a rule that CableCARDS have been the standard Bureau defines this category as follows: requires cable operators to charge since 2007 and CableCARD ‘‘This industry comprises equivalent and transparent prices for manufacturers are no longer making establishments primarily engaged in CableCARDs. This rule change will single stream CableCARDs to sell to manufacturing communications require certain cable operators to change cable operators. Therefore, we believe equipment (except telephone apparatus, their billing practices by reporting the burden will be minimal and will be and radio and television broadcast, and CableCARD prices on their Web sites, greatly outweighed by the benefits to wireless communications equipment).’’ annual rate cards, or monthly bills. The consumers. This rule will reduce the The SBA has developed a small Order also adopts a rule that will cost that consumers face to use the business size standard for Other require device manufacturers to include picture-in-picture and ‘‘watch one, Communications Equipment CableCARD installation instructions record one’’ functions of their video Manufacturing, which is: all such firms with their devices. navigation devices, since fewer having 750 or fewer employees. 89. Steps Taken To Minimize CableCARDs will be necessary. According to Census Bureau data for Significant Impact on Small Entities, 93. The rule that streamlines the 2002, there were a total of 503 and Significant Alternatives Considered. CableCARD device certification process establishments in this category that The RFA requires an agency to describe will place no burden on qualified any significant alternatives that it has operated for the entire year. Of this testing facilities. To the contrary, it will considered in reaching its proposed total, 493 had employment of under benefit consumer electronics approach, which may include the 500, and an additional 7 had manufacturers by reducing the cost of following four alternatives (among employment of 500 to 999. Thus, under the certification process and limiting the others): (1) The establishment of this size standard, the majority of firms influence that testing facilities have in differing compliance or reporting can be considered small. the development of new consumer requirements or timetables that take into 86. Electronics Equipment electronics equipment. account the resources available to small 94. The Commission did consider Manufacturers. The SBA has developed entities; (2) the clarification, a small business size standard for alternatives to the pricing and billing consolidation, or simplification of rule. As proposed, the rule change manufacturers of audio and video compliance or reporting requirements equipment, which is: all such firms would have required cable operators to under the rule for small entities; (3) the separate and report the cost of a having 750 or fewer employees. Census use of performance, rather than design, Bureau data indicates that there are 571 CableCARD on every monthly bill. As standards; and (4) an exemption from suggested in comments received in the U.S. establishments that manufacture coverage of the rule, or any part thereof, proceeding, the Commission instead audio and visual equipment, and that for small entities. adopted a rule that will instead require 560 of these establishments have fewer 90. Four of the final rules did not than 500 employees and would be require the Commission to consider cable operators to separate and report classified as small entities. The alternatives. Based on our review of the the cost on the annual rate card or on remaining 11 establishments have 500 record and analysis, a consideration of the operator’s Web site. This new rule or more employees; however, we are alternatives is unnecessary because places a smaller burden on cable unable to determine how many of those adoption of these rules leads to far operators than the proposed rule. It will have fewer than 750 employees and greater consumer and industry benefits also greatly benefit consumers, resulting therefore, also qualify as small entities that outweigh any de minimis burden in fewer customer service calls, an under the SBA definition. We therefore that may be placed on small entities. increase in transparency of pricing, and conclude that there are no more than The switched digital support rule places provide consumers with pricing 560 small manufacturers of audio and a minor burden on cable operators. This information prior to purchase, rather visual electronics equipment for burden is offset because the rule will than after. consumer/household use. greatly benefit consumers by ensuring 95. Federal Rules Which Duplicate, 87. Computer Manufacturers. The that subscribers are able to access all of Overlap, or Conflict with the Commission has not developed a the programming for which they pay. Commission’s Proposals. None. definition of small entities applicable to This rule ensures consumers will List of Subjects computer manufacturers. Therefore, we benefit regardless of whether they use will utilize the SBA definition of retail or leased devices. 47 CFR Part 15 electronic computers manufacturing. 91. The installation rule decreases the Communications equipment, According to SBA regulations, a burden on cable operators with respect Computer technology, Labeling, Radio, computer manufacturer must have 1,000 to customer service calls. It requires Reporting and recordkeeping or fewer employees in order to qualify cable technicians to arrive with the requirements, Security measures, as a small entity. Census Bureau data number of CableCARDs that a consumer Telephone, Wiretapping and electronic indicates that there are 485 firms that requests, and allow for self-installation surveillance, Incorporation by reference. manufacture electronic computers and of CableCARDs. The effect will be to of those, 476 have fewer than 1,000 reduce the difficulties that consumers 47 CFR Part 76 employees and qualify as small entities. face when seeking to install a Administrative practice and The remaining 9 firms have 1,000 or CableCARD in a retail device and to procedure, Cable television, Equal more employees. We conclude that reduce the number of service calls that employment opportunity, Political

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candidates, Reporting and Laboratories, Inc., 858 Coal Creek Circle, 2004 (incorporated by reference, see recordkeeping requirements. Louisville, Colorado, 80027, http:// § 15.38) or with M–UDCP–PICS–I04– Federal Communications Commission. www.cablelabs.com/opencable/udcp, 080225, ‘‘Uni-Directional Cable Product (303) 661–9100; or at Consumer Marlene H. Dortch, Supporting M–Card: Multiple Profiles; Electronics Association, 1919 S. Eads Conformance Checklist: PICS,’’ February Secretary. St., Arlington; VA 22202, http:// 25, 2008 (incorporated by reference, see Rule Changes www.ce.org/public_policy, (703) 907– § 15.38) in accordance with the test For the reasons discussed in the 7634. procedures set forth in TP–ATP–M– (1) Uni-Dir-PICS–I01–030903: ‘‘Uni- preamble, the Federal Communications UDCP–I05–20080304, ‘‘Uni-Directional Directional Receiving Device: Commission amends 47 CFR parts 15 Digital Cable Products Supporting M– Conformance Checklist: PICS and 76 as follows: Card; M–UDCP Device Acceptance Test Proforma,’’ September 3, 2003, IBR Plan,’’ March 4, 2008 (incorporated by PART 15—RADIO FREQUENCY approved for § 15.123(c). reference, see § 15.38) before the DEVICES (2) Uni-Dir-ATP–I02–040225: ‘‘Uni- product or any related model may be Directional Receiving Device, labeled or marketed. If the manufacturer ■ 1. The authority citation for part 15 is Acceptance Test Plan,’’ February 25, or importer’s first unidirectional digital revised to read as follows: 2004, IBR approved for § 15.123(c). cable product is not a television, then (3) M–UDCP–PICS–I04–080225, ‘‘Uni- that manufacturer or importer’s first Authority: 47 U.S.C. 154, 302a, 303, 304, Directional Cable Product Supporting 307, 336, 544a, and 549. model of a unidirectional digital cable M–Card: Multiple Profiles; Conformance ■ 2. Amend § 15.38 by revising product which is a television shall be Checklist: PICS,’’ February 25, 2008, IBR tested pursuant to this subsection as paragraphs (a), (b) introductory text, and approved for § 15.123(c). (c) to read as follows: though it were the first unidirectional (4) TP–ATP–M–UDCP–I05–20080304, digital cable product. A qualified test § 15.38 Incorporation by reference. ‘‘Uni-Directional Digital Cable Products facility may only require compliance Supporting M–Card; M–UDCP Device (a) The materials listed in this section with the procedures set forth in Uni-Dir- Acceptance Test Plan,’’ March 4, 2008, are incorporated by reference in this PICS–I01–030903: Uni-Directional IBR approved for § 15.123(c). part. These incorporations by reference Receiving Device: Conformance ■ were approved by the Director of the 3. Revise § 15.123(c) to read as Checklist: PICS Proforma, September 3, Federal Register in accordance with 5 follows: 2003 (incorporated by reference, see U.S.C. 552(a) and 1 CFR part 51. These § 15.123 Labeling of digital cable ready § 15.38). Compliance testing beyond materials are incorporated as they exist products. those procedures shall be at the on the date of the approval, and notice * * * * * discretion of the manufacturer or of any change in these materials will be (c) Before a manufacturer’s or importer. published in the Federal Register. The importer’s first unidirectional digital (2) A qualified test facility is a testing materials are available for purchase at cable product may be labeled or laboratory representing cable television the corresponding addresses as noted, marketed as digital cable ready or with system operators serving a majority of and all are available for inspection at other terminology as described in the cable television subscribers in the the Federal Communications paragraph (b) of this section, the United States or an appropriately Commission, 445 12th St., SW., manufacturer or importer shall verify qualified independent laboratory with Reference Information Center, Room the device as follows: adequate equipment and competent CY–A257, Washington, DC 20554, (202) (1) The manufacturer or importer personnel knowledgeable with respect 418–0270, and at the National Archives shall have a sample of its first model of to Uni-Dir-PICS–I01–030903: ‘‘Uni- and Records Administration (NARA). a unidirectional digital cable product Directional Receiving Device: For information on the availability of tested to show compliance with the Conformance Checklist: PICS this material at NARA, call (202) 741– procedures set forth in Uni-Dir-PICS– Proforma,’’ September 03, 2003 6030, or go to: http://www.archives.gov/ I01–030903: Uni-Directional Receiving (incorporated by reference, see § 15.38); federal_register/ Device: Conformance Checklist: PICS Uni–Dir–ATP–I02–040225: ‘‘Uni- code_of_federal_regulations/ Proforma (incorporated by reference, see Directional Receiving Device, ibr_locations.html. § 15.38) at a qualified test facility. If the Acceptance Test Plan,’’ February 25, (b) The following materials are model fails to comply, the manufacturer 2004 (incorporated by reference, see available for purchase from at least one or importer shall have any § 15.38); M–UDCP–PICS–I04–080225, of the following addresses: Global modifications to the product to correct ‘‘Uni-Directional Cable Product Engineering Documents, 15 Inverness failures of the procedures in Uni–Dir– Supporting M–Card: Multiple Profiles; Way East, Englewood, CO 80112, (800) PICS–I01–030903: ‘‘Uni-Directional Conformance Checklist: PICS,’’ February 854–7179, or at http://global.ihs.com; or Receiving Device: Conformance 25, 2008 (incorporated by reference, see American National Standards Institute, Checklist: PICS Proforma,’’ September 3, § 15.38); and TP–ATP–M–UDCP–I05– 25 West 43rd Street, 4th Floor, New 2003 (incorporated by reference, see 20080304, ‘‘Uni-Directional Digital York, NY 10036, (212) 642–4900,or at § 15.38) retested at a qualified test Cable Products Supporting M–Card; M– http://webstore.ansi.org/ansidocstore/ facility and the product must comply UDCP Device Acceptance Test Plan,’’ default.asp.; or Society of Cable with Uni-Dir-PICS–I01–030903: ‘‘Uni- March 4, 2008 (incorporated by Telecommunications Engineers, 140 Directional Receiving Device: reference, see § 15.38). For any Philips Road, Exton, PA 19341–1318, Conformance Checklist: PICS independent testing laboratory to be (800) 542–5040, or at http:// Proforma,’’ September 3, 2003 qualified hereunder such laboratory www.scte.org/standards/index.cfm. (incorporated by reference, see § 15.38) must ensure that all its decisions are * * * * * in accordance with the test procedures impartial and have a documented (c) The following materials are freely set forth in Uni–Dir–ATP–I02–040225: structure which safeguards impartiality available from at least one of the ‘‘Uni-Directional Receiving Device, of the operations of the testing following addresses: Cable Television Acceptance Test Plan,’’ February 25, laboratory. In addition, any independent

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testing laboratory qualified hereunder (5) This paragraph applies to reference, see § 15.38). For any must not supply or design products of unidirectional digital cable product independent testing laboratory to be the type it tests, nor provide any other models which utilize Point-of- qualified hereunder such laboratory products or services that could Deployment modules (PODs) in multi- must ensure that all its decisions are compromise confidentiality, objectivity stream mode (M–UDCPs). impartial and have a documented or impartiality of the testing laboratory’s (i) The manufacturer or importer shall structure which safeguards impartiality testing process and decisions. have a sample of its first model of a M– of the operations of the testing (3) Subsequent to the testing of its UDCP tested at a qualified test facility laboratory. In addition, any independent initial unidirectional digital cable to show compliance with M–UDCP– testing laboratory qualified hereunder product model, a manufacturer or PICS–I04–080225, ‘‘Uni-Directional must not supply or design products of importer is not required to have other Cable Product Supporting M–Card: the type it tests, nor provide any other models of unidirectional digital cable Multiple Profiles; Conformance products or services that could products tested at a qualified test Checklist: PICS,’’ February 25, 2008 compromise confidentiality, objectivity facility for compliance with the (incorporated by reference, see § 15.38) or impartiality of the testing laboratory’s procedures of Uni-Dir-PICS–I01– as specified in the procedures set forth testing process and decisions. 030903: ‘‘Uni-Directional Receiving in TP–ATP–M–UDCP–I05–20080304, (iii) Subsequent to the successful Device: Conformance Checklist: PICS ‘‘Uni-Directional Digital Cable Products testing of its initial M–UDCP, a Proforma,’’ September 03, 2003 Supporting M–Card; M–UDCP Device manufacturer or importer is not required (incorporated by reference, see § 15.38) Acceptance Test Plan,’’ March 4, 2008 to have other M–UDCP models tested at unless the first model tested was not a (both references incorporated by a qualified test facility for compliance television, in which event the first reference, see § 15.38). If the model fails with M–UDCP–PICS–I04–080225, ‘‘Uni- television shall be tested as provided in to comply, the manufacturer or importer Directional Cable Product Supporting § 15.123(c)(1). The manufacturer or shall have retested, at a qualified test M–Card: Multiple Profiles; Conformance importer shall ensure that all facility, a product that complies with Checklist: PICS,’’ February 25, 2008 subsequent models of unidirectional Uni-Dir-PICS–I01–030903: ‘‘Uni- (incorporated by reference, see § 15.38) digital cable products comply with the Directional Receiving Device: unless the first model tested was not a procedures in the Uni-Dir-PICS–I01– Conformance Checklist: PICS television, in which event the first 030903: ‘‘Uni-Directional Receiving Proforma,’’ September 03, 2003 television shall be tested as provided in (incorporated by reference, see § 15.38) § 15.123(c)(5)(i). The manufacturer or Device: Conformance Checklist: PICS in accordance with Uni–Dir–ATP–I02– importer shall ensure that all Proforma,’’ September 03, 2003 040225: ‘‘Uni-Directional Receiving subsequent models of M–UDCPs comply (incorporated by reference, see § 15.38) Device Acceptance Test Plan,’’ February with M–UDCP–PICS–I04–080225, ‘‘Uni- and all other applicable rules and 25, 2004, (incorporated by reference, see Directional Cable Product Supporting standards. The manufacturer or § 15.38) or an equivalent test procedure M–Card: Multiple Profiles; Conformance importer shall maintain records that produces identical pass/fail test Checklist: PICS,’’ February 25, 2008 indicating such compliance in results before any product or related (incorporated by reference, see § 15.38) accordance with the verification model may be labeled or marketed. If and all other applicable rules and procedure requirements in part 2, the manufacturer or importer’s first M– standards. The manufacturer or subpart J of this chapter. The UDCP is not a television, then that importer shall maintain records manufacturer or importer shall further manufacturer or importer’s first model indicating such compliance in submit documentation verifying of a M–UDCP which is a television shall accordance with the verification compliance with the procedures in the be tested pursuant to this subsection as procedure requirements in part 2, Uni-Dir-PICS–I01–030903: ‘‘Uni- though it were the first M–UDCP. subpart J of this chapter. For each M– Directional Receiving Device: (ii) A qualified test facility is a testing UDCP model, the manufacturer or Conformance Checklist: PICS laboratory representing cable television importer shall further submit Proforma,’’ September 03, 2003 system operators serving a majority of documentation verifying compliance (incorporated by reference, see § 15.38) the cable television subscribers in the with M–UDCP–PICS–I04–080225, ‘‘Uni- to the qualified test facility. United States or an appropriately Directional Cable Product Supporting (4) Unidirectional digital cable qualified independent laboratory with M–Card: Multiple Profiles; Conformance product models must be tested for adequate equipment and competent Checklist: PICS,’’ February 25, 2008 compliance with Uni-Dir-PICS–I01– personnel knowledgeable with Uni-Dir- (incorporated by reference, see § 15.38) 030903: ‘‘Uni-Directional Receiving PICS–I01–030903: ‘‘Uni-Directional to the qualified test facility. Device: Conformance Checklist: PICS Receiving Device: Conformance (iv) M–UDCPs must be in compliance Proforma,’’ September 3, 2003 Checklist: PICS Proforma,’’ September with M–UDCP–PICS–I04–080225, ‘‘Uni- (incorporated by reference, see § 15.38) 03, 2003 (incorporated by reference, see Directional Cable Product Supporting in accordance with Uni–Dir–ATP–I02– § 15.38); Uni–Dir–ATP–I02–040225: M–Card: Multiple Profiles; Conformance 040225: ‘‘Uni-Directional Receiving ‘‘Uni-Directional Receiving Device, Checklist: PICS,’’ February 25, 2008 Device Acceptance Test Plan,’’ February Acceptance Test Plan,’’ February 25, (incorporated by reference, see § 15.38) 25, 2004, (incorporated by reference, see 2004 (incorporated by reference, see in accordance with the procedures set § 15.38) or an equivalent test procedure § 15.38); M–UDCP–PICS–I04–080225, forth in TP–ATP–M–UDCP–I05– that produces identical pass/fail test ‘‘Uni-Directional Cable Product 20080304, ‘‘Uni-Directional Digital results. In the event of any dispute over Supporting M–Card: Multiple Profiles; Cable Products Supporting M–Card; M– the applicable results under an Conformance Checklist: PICS,’’ February UDCP Device Acceptance Test Plan,’’ equivalent test procedure, the results 25, 2008 (incorporated by reference, see March 4, 2008 (incorporated by under Uni–Dir–ATP–I02–040225: ‘‘Uni- § 15.38); and TP–ATP–M–UDCP–I05– reference, see § 15.38) or an equivalent Directional Receiving Device 20080304, ‘‘Uni-Directional Digital test procedure that produces identical Acceptance Test Plan,’’ February 25, Cable Products Supporting M–Card; M– pass/fail test results. In the event of any 2004 (incorporated by reference, see UDCP Device Acceptance Test Plan,’’ dispute over the applicable results § 15.38) shall govern. March 4, 2008 (incorporated by under an equivalent test procedure, the

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results under TP–ATP–M–UDCP–I05– the owner or operator of the (5) Separately disclose to consumers 20080304, ‘‘Uni-Directional Digital multichannel video programming in a conspicuous manner with written Cable Products Supporting M–Card; M– system. information provided to customers in UDCP Device Acceptance Test Plan,’’ * * * * * accordance with § 76.1602, with written March 4, 2008 (incorporated by ■ 7. Revise § 76.1205 to read as follows: or oral information at consumer request, reference, see § 15.38) shall govern. and on Web sites or billing inserts; * * * * * § 76.1205 CableCARD support. (i) Any assessed fees for the rental of (a) Technical information concerning single and additional CableCARDs and PART 76—MULTICHANNEL VIDEO interface parameters that are needed to the rental of operator-supplied AND CABLE TELEVISION SERVICE permit navigation devices to operate navigation devices; and, with multichannel video programming (ii) If such provider includes ■ equipment in the price of a bundled 4. The authority citation for part 76 systems shall be provided by the system offer of one or more services, the fees continues to read as follows: operator upon request in a timely Authority: 47 U.S.C. 151, 152, 153, 154, reasonably allocable to: manner. (A) The rental of single and additional 301, 302, 302a, 303, 303a, 307, 308, 309, 312, (b) A multichannel video 315, 317, 325, 339, 340, 341, 503, 521, 522, CableCARDs; and programming provider that is subject to (B) The rental of operator-supplied 531, 532, 534, 535, 536, 537, 543, 544, 544a, the requirements of § 76.1204(a)(1) 545, 548, 549, 552, 554, 556, 558, 560, 561, navigation devices. 571, 572, 573. must: (1) CableCARD rental fees shall be (1) Provide the means to allow ■ priced uniformly throughout a cable 5. Revise § 76.640(b)(4)(ii) and (iii) to subscribers to self-install the read as follows: system by such provider without regard CableCARD in a CableCARD-reliant to the intended use in operator-supplied § 76.640 Support for unidirectional digital device purchased at retail and inform a or consumer-owned equipment. No cable products on digital cable systems. subscriber of this option when the service fee shall be imposed on a * * * * * subscriber requests a CableCARD. This subscriber for support of a subscriber- (b)* * * requirement shall be effective August 1, provided device that is not assessed on (4) * * * 2011, if the MVPD allows its subscribers subscriber use of an operator-provided (ii) Effective July 1, 2011, include to self-install any cable modems or device. both: (A) a DVI or HDMI interface and operator-leased set-top boxes and (2) For any bundled offer combining (B) a connection capable of delivering November 1, 2011 if the MVPD does not service and an operator-supplied recordable high definition video and allow its subscribers to self-install any navigation device into a single fee, closed captioning data in an industry cable modems or operator-leased set-top including any bundled offer providing a standard format on all high definition boxes; discount for the purchase of multiple set-top boxes, except unidirectional set- (i) This requirement shall not apply to services, such provider shall make such top boxes without recording cases in which neither the manufacturer offer available without discrimination to functionality, acquired by a cable nor the vendor of the CableCARD-reliant any customer that owns a navigation operator for distribution to customers. device furnishes to purchasers device, and, to the extent the customer (iii) Effective December 1, 2012, appropriate instructions for self- uses such navigation device in lieu of ensure that the cable-operator-provided installation of a CableCARD, and a the operator-supplied equipment high definition set-top boxes, except manned toll-free telephone number to included in that bundled offer, shall unidirectional set-top boxes without answer consumer questions regarding further offer such customer a discount recording functionality, shall comply CableCARD installation but only for so from such offer equal to an amount not with an open industry standard that long as such instructions are not less than the monthly rental fee provides for audiovisual furnished and the call center is not reasonably allocable to the lease of the communications including service offered; operator-supplied navigation device discovery, video transport, and remote (ii) [Reserved]. included with that offer. For purposes of control command pass-through (2) Effective August 1, 2011, provide this section, in determining what is standards for home networking. multi-stream CableCARDs to ‘‘reasonably allocable,’’ the Commission ■ 6. Revise § 76.1204(a)(2) to read as subscribers, unless the subscriber will consider in its evaluation whether follows: requests a single-stream CableCARD; the allocation is consistent with one or (3) With respect to professional more of the following factors: § 76.1204 Availability of equipment installations, ensure that the technician (i) An allocation determination performing conditional access or security arrives with no fewer than the number approved by a local, state, or Federal functions. of CableCARDS requested by the government entity; (a) * * * customer and ensure that all (ii) The monthly lease fee as stated on (2) The foregoing requirement shall CableCARDs delivered to customers are the cable system rate card for the not apply: in good working condition and navigation device when offered by the (i) With respect to unidirectional compatible with the customer’s device; cable operator separately from a navigation devices without recording (4) Effective August 1, 2011, provide, bundled offer; and functionality; or through the use of a commonly used (iii) The actual cost of the navigation (ii) To a multichannel video interface and published specifications device amortized over a period of no programming distributor that supports for communication, CableCARD-reliant, more than 60 months. the active use by subscribers of firmware-upgradable navigation devices (c) A cable operator shall not provide navigation devices that: the ability to tune simultaneously as misleading information regarding the (A) Operate throughout the many switched-digital channels as the ability of navigation devices to access continental United States, and greatest number of streams supported by switched digital channels. (B) Are available from retail outlets any set-top box provided by the cable ■ 8. Amend 76.1602 by adding and other vendors throughout the operator, or four simultaneous channels, paragraphs (b)(7) and (8) read as United States that are not affiliated with whichever is greater; follows:

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§ 76.1602 Customer service—general management shall be unaffected by this and oversight. The rule states: ‘‘The information. section, or contracting officer shall collaborate with * * * * * * * * * * the government’s program/project (b) * * * [FR Doc. 2011–16869 Filed 7–7–11; 8:45 am] manager to ensure the appropriate data BILLING CODE 6712–01–P can be obtained or generated to fulfill (7) Effective May 1, 2011, any program management needs’’. There are assessed fees for rental of navigation various methods to obtain the devices and single and additional NATIONAL AERONAUTICS AND appropriate data, and the CO will CableCARDs; and, SPACE ADMINISTRATION include Data Requirements in the (8) Effective May 1, 2011, if such solicitation and/or contract as needed provider includes equipment in the 48 CFR Parts 1834 on a case-by-case basis. Comment: The respondent stated that price of a bundled offer of one or more RIN 2700–AD29 services, the fees reasonably allocable NASA should consider implementing to: Major System Acquisition; Earned the change to existing contracts Value Management providing additional cost savings to (i) The rental of single and additional NASA and the industry. CableCARDs; and AGENCY: National Aeronautics and Response: NASA will not require, but (ii) The rental of operator-supplied Space Administration (NASA). may consider, implementing the change navigation devices. ACTION: Final rule. on existing contracts, on a case-by-case basis. * * * * * SUMMARY: NASA is issuing a final rule ■ 9. Revise § 76.1902(s) to read as to delete the requirement in the NASA III. Executive Orders 12866 and 13563 follows: FAR Supplement (NFS) for contractors Executive Orders (E.O.s) 12866 and to establish and maintain an Earned 13563 direct agencies to assess all costs § 76.1902 Definitions. Value Management System (EVMS) for and benefits of available regulatory * * * * * firm-fixed-price (FFP) contracts. The alternatives and, if regulation is final rule recognizes the reduction in (s) Unencrypted broadcast television necessary, to select regulatory risk associated with FFP contracts and approaches that maximize net benefits means any service, program, or schedule intends to relieve contractors of an (including potential economic, or group of programs, that is a unnecessary reporting burden. environmental, public health and safety substantially simultaneous DATES: effects, distributive impacts, and retransmission of a broadcast Effective Date: July 8, 2011. FOR FURTHER INFORMATION CONTACT: Carl equity). E.O. 13563 emphasizes the transmission (i.e., an over-the-air importance of quantifying both costs transmission for reception by the Weber, NASA, Office of Procurement, Contract Management Division (Suite and benefits, of reducing costs, of general public using radio frequencies harmonizing rules, and of promoting allocated for that purpose) that is made 5K80); (202) 358–1784; e-mail: [email protected]. flexibility. This rule is not a major rule by a terrestrial television broadcast under 5 U.S.C. 804. station located within the country or SUPPLEMENTARY INFORMATION: IV. Regulatory Flexibility Act territory in which the entity I. Background retransmitting such broadcast This final rule will not have a transmission also is located, where such NASA published a proposed rule in significant economic impact on a broadcast transmission is not subject to the Federal Register at 76 FR 7526 on substantial number of small entities a commercially-adopted access control February 10, 2011. The sixty day within the meaning of the Regulatory method (e.g., is broadcast in the clear to comment period expired April 11, 2011. Flexibility Act, 5 U.S.C. 601 et seq., members of the public receiving such Three comments were received from because it relaxes previous requirements broadcasts), regardless of whether such two respondents. No changes are made in the NASA FAR Supplement and does entity subjects such retransmission to an to the proposed rule as a result of public not impose a significant economic access control method. comments. impact beyond that previously required. * * * * * II. Discussion and Analysis of the V. Paperwork Reduction Act Public Comments ■ 10. Revise § 76.1908(a) to read as This final rule does not impose any follows: Comment: The respondent suggested new information collection that the policy should more clearly requirements that require the approval § 76.1908 Certain practices not prohibited. define in house and external Earned of the Office of Management and Budget * * * * * Value Management Requirements. (OMB) under 44 U.S.C. 3501, et seq. Response: The regulation in the (a) Encoding, storing or managing NASA FAR Supplement, 1834.201, is List of Subjects in 48 CFR Parts 1834 commercial audiovisual content within only directed toward contractor external Government procurement. its distribution system or within a efforts. Internal Government covered product under the control of a requirements are included but are not William P. McNally, covered entity’s commercially adopted regulatory and not a part of this Assistant Administrator for Procurement. access control method, provided that rulemaking. Accordingly, 48 CFR Part 1834 is the outcome for the consumer from the Comment: The respondent suggested amended as follows: application of the encoding rules set out including a statement requiring any in § 76.1904(a) and (b) is unchanged additional reporting requirements for PART 1834—MAJOR SYSTEM thereby when such commercial FFP contracts to be identified in the ACQUISITION audiovisual content is released to solicitation or subsequent contract ■ consumer control and provided that all modification. 1. The authority citation for 48 CFR other laws, regulations, or licenses Response: NASA will collect the Part 1834 continues to read as follows: applicable to such encoding, storage, or necessary data for project management Authority: 42 U.S.C. 2455(a), 2473(c)(1)

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