
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 47USC548]

 
          TITLE 47--TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS
 
                 CHAPTER 5--WIRE OR RADIO COMMUNICATION
 
                  SUBCHAPTER V-A--CABLE COMMUNICATIONS
 
                  Part III--Franchising and Regulation
 
Sec. 548. Development of competition and diversity in video 
        programming distribution
        

(a) Purpose

    The purpose of this section is to promote the public interest, 
convenience, and necessity by increasing competition and diversity in 
the multichannel video programming market, to increase the availability 
of satellite cable programming and satellite broadcast programming to 
persons in rural and other areas not currently able to receive such 
programming, and to spur the development of communications technologies.

(b) Prohibition

    It shall be unlawful for a cable operator, a satellite cable 
programming vendor in which a cable operator has an attributable 
interest, or a satellite broadcast programming vendor to engage in 
unfair methods of competition or unfair or deceptive acts or practices, 
the purpose or effect of which is to hinder significantly or to prevent 
any multichannel video programming distributor from providing satellite 
cable programming or satellite broadcast programming to subscribers or 
consumers.

(c) Regulations required

                       (1) Proceeding required

        Within 180 days after October 5, 1992, the Commission shall, in 
    order to promote the public interest, convenience, and necessity by 
    increasing competition and diversity in the multichannel video 
    programming market and the continuing development of communications 
    technologies, prescribe regulations to specify particular conduct 
    that is prohibited by subsection (b) of this section.

                 (2) Minimum contents of regulations

        The regulations to be promulgated under this section shall--
            (A) establish effective safeguards to prevent a cable 
        operator which has an attributable interest in a satellite cable 
        programming vendor or a satellite broadcast programming vendor 
        from unduly or improperly influencing the decision of such 
        vendor to sell, or the prices, terms, and conditions of sale of, 
        satellite cable programming or satellite broadcast programming 
        to any unaffiliated multichannel video programming distributor;
            (B) prohibit discrimination by a satellite cable programming 
        vendor in which a cable operator has an attributable interest or 
        by a satellite broadcast programming vendor in the prices, 
        terms, and conditions of sale or delivery of satellite cable 
        programming or satellite broadcast programming among or between 
        cable systems, cable operators, or other multichannel video 
        programming distributors, or their agents or buying groups; 
        except that such a satellite cable programming vendor in which a 
        cable operator has an attributable interest or such a satellite 
        broadcast programming vendor shall not be prohibited from--
                (i) imposing reasonable requirements for 
            creditworthiness, offering of service, and financial 
            stability and standards regarding character and technical 
            quality;
                (ii) establishing different prices, terms, and 
            conditions to take into account actual and reasonable 
            differences in the cost of creation, sale, delivery, or 
            transmission of satellite cable programming or satellite 
            broadcast programming;
                (iii) establishing different prices, terms, and 
            conditions which take into account economies of scale, cost 
            savings, or other direct and legitimate economic benefits 
            reasonably attributable to the number of subscribers served 
            by the distributor; or
                (iv) entering into an exclusive contract that is 
            permitted under subparagraph (D);

            (C) prohibit practices, understandings, arrangements, and 
        activities, including exclusive contracts for satellite cable 
        programming or satellite broadcast programming between a cable 
        operator and a satellite cable programming vendor or satellite 
        broadcast programming vendor, that prevent a multichannel video 
        programming distributor from obtaining such programming from any 
        satellite cable programming vendor in which a cable operator has 
        an attributable interest or any satellite broadcast programming 
        vendor in which a cable operator has an attributable interest 
        for distribution to persons in areas not served by a cable 
        operator as of October 5, 1992; and
            (D) with respect to distribution to persons in areas served 
        by a cable operator, prohibit exclusive contracts for satellite 
        cable programming or satellite broadcast programming between a 
        cable operator and a satellite cable programming vendor in which 
        a cable operator has an attributable interest or a satellite 
        broadcast programming vendor in which a cable operator has an 
        attributable interest, unless the Commission determines (in 
        accordance with paragraph (4)) that such contract is in the 
        public interest.

                           (3) Limitations

        (A) Geographic limitations

            Nothing in this section shall require any person who is 
        engaged in the national or regional distribution of video 
        programming to make such programming available in any geographic 
        area beyond which such programming has been authorized or 
        licensed for distribution.

        (B) Applicability to satellite retransmissions

            Nothing in this section shall apply (i) to the signal of any 
        broadcast affiliate of a national television network or other 
        television signal that is retransmitted by satellite but that is 
        not satellite broadcast programming, or (ii) to any internal 
        satellite communication of any broadcast network or cable 
        network that is not satellite broadcast programming.

      (4) Public interest determinations on exclusive contracts

        In determining whether an exclusive contract is in the public 
    interest for purposes of paragraph (2)(D), the Commission shall 
    consider each of the following factors with respect to the effect of 
    such contract on the distribution of video programming in areas that 
    are served by a cable operator:
            (A) the effect of such exclusive contract on the development 
        of competition in local and national multichannel video 
        programming distribution markets;
            (B) the effect of such exclusive contract on competition 
        from multichannel video programming distribution technologies 
        other than cable;
            (C) the effect of such exclusive contract on the attraction 
        of capital investment in the production and distribution of new 
        satellite cable programming;
            (D) the effect of such exclusive contract on diversity of 
        programming in the multichannel video programming distribution 
        market; and
            (E) the duration of the exclusive contract.

                        (5) Sunset provision

        The prohibition required by paragraph (2)(D) shall cease to be 
    effective 10 years after October 5, 1992, unless the Commission 
    finds, in a proceeding conducted during the last year of such 10-
    year period, that such prohibition continues to be necessary to 
    preserve and protect competition and diversity in the distribution 
    of video programming.

(d) Adjudicatory proceeding

    Any multichannel video programming distributor aggrieved by conduct 
that it alleges constitutes a violation of subsection (b) of this 
section, or the regulations of the Commission under subsection (c) of 
this section, may commence an adjudicatory proceeding at the Commission.

(e) Remedies for violations

                       (1) Remedies authorized

        Upon completion of such adjudicatory proceeding, the Commission 
    shall have the power to order appropriate remedies, including, if 
    necessary, the power to establish prices, terms, and conditions of 
    sale of programming to the aggrieved multichannel video programming 
    distributor.

                       (2) Additional remedies

        The remedies provided in paragraph (1) are in addition to and 
    not in lieu of the remedies available under subchapter V of this 
    chapter or any other provision of this chapter.

(f) Procedures

    The Commission shall prescribe regulations to implement this 
section. The Commission's regulations shall--
        (1) provide for an expedited review of any complaints made 
    pursuant to this section;
        (2) establish procedures for the Commission to collect such 
    data, including the right to obtain copies of all contracts and 
    documents reflecting arrangements and understandings alleged to 
    violate this section, as the Commission requires to carry out this 
    section; and
        (3) provide for penalties to be assessed against any person 
    filing a frivolous complaint pursuant to this section.

(g) Reports

    The Commission shall, beginning not later than 18 months after 
promulgation of the regulations required by subsection (c) of this 
section, annually report to Congress on the status of competition in the 
market for the delivery of video programming.

(h) Exemptions for prior contracts

                           (1) In general

        Nothing in this section shall affect any contract that grants 
    exclusive distribution rights to any person with respect to 
    satellite cable programming and that was entered into on or before 
    June 1, 1990, except that the provisions of subsection (c)(2)(C) of 
    this section shall apply for distribution to persons in areas not 
    served by a cable operator.

                     (2) Limitation on renewals

        A contract that was entered into on or before June 1, 1990, but 
    that is renewed or extended after October 5, 1992, shall not be 
    exempt under paragraph (1).

(i) Definitions

    As used in this section:
        (1) The term ``satellite cable programming'' has the meaning 
    provided under section 605 of this title, except that such term does 
    not include satellite broadcast programming.
        (2) The term ``satellite cable programming vendor'' means a 
    person engaged in the production, creation, or wholesale 
    distribution for sale of satellite cable programming, but does not 
    include a satellite broadcast programming vendor.
        (3) The term ``satellite broadcast programming'' means broadcast 
    video programming when such programming is retransmitted by 
    satellite and the entity retransmitting such programming is not the 
    broadcaster or an entity performing such retransmission on behalf of 
    and with the specific consent of the broadcaster.
        (4) The term ``satellite broadcast programming vendor'' means a 
    fixed service satellite carrier that provides service pursuant to 
    section 119 of title 17 with respect to satellite broadcast 
    programming.

(j) Common carriers

    Any provision that applies to a cable operator under this section 
shall apply to a common carrier or its affiliate that provides video 
programming by any means directly to subscribers. Any such provision 
that applies to a satellite cable programming vendor in which a cable 
operator has an attributable interest shall apply to any satellite cable 
programming vendor in which such common carrier has an attributable 
interest. For the purposes of this subsection, two or fewer common 
officers or directors shall not by itself establish an attributable 
interest by a common carrier in a satellite cable programming vendor (or 
its parent company).

(June 19, 1934, ch. 652, title VI, Sec. 628, as added Pub. L. 102-385, 
Sec. 19, Oct. 5, 1992, 106 Stat. 1494; amended Pub. L. 104-104, title 
III, Sec. 301(h), Feb. 8, 1996, 110 Stat. 117.)


                               Amendments

    1996--Subsec. (j). Pub. L. 104-104 added subsec. (j).


                             Effective Date

    Section effective 60 days after Oct. 5, 1992, see section 28 of Pub. 
L. 102-385, set out as an Effective Date of 1992 Amendment note under 
section 325 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 336, 573 of this title.
