WPC15 2EB UG(3|x)-#C\  P6QP#Courier New (TT)Times New Roman (TT)Times New Roman (Italic) (TT)ofxooof7.7a]7]f]f]7ff..].ffffA]7f]]]SA/Aa.7777CE7\fx]x]x]x]x]x]o]o]o]o]........xfffffxfxfxfxfo]x]xfffo]xfofx]x]x]x]x]x]o]o]o]ffffxfxfCf7f77.f]x]f.fExfxffxAxEo]o]N:.]]7f]]]]]>=]7{{]7..SS]77]].S77t7\[[\aee*C`a.wR]]n[Cfx`xWlRx[][ceIfIs`Wx[rriwge}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}.7O]]x(77Aa.7..]]]]]]]]]]77aaafxxxxofx.]xfxoxofxooof7.7a]7]f]f]7ff..].ffffA]7f]]]SA/Aa}}}.]S]]7o7}}}}..SS:]7]7}}o.7]]]]/]7{>]a7{\C\777`].77=]fxxxxxxxoooo....xxaxxxxoof]]]]]]]]]]]....fffffff\fffff]fCourier New (TT)Times New Roman (TT) NQP2s ;w) Zb yO-#C\  P6QP#Arial (Bold) (TT)Times New Roman (TT)HP LaserJet 4/4MtScript ROOM 224HPLAS4.WRSSx  @,,PX@xxf7.7NS7JSJSJ7SS..S.SSSS7A.SSxSSJP!PZ*7777CE7SSxJxJxJxJxJooJfJfJfJfJ7.7.7.7.xSxSxSxSxSxSxSxSxSxSxJxSxSxSxSxS]SxSxJxJoJoJoJfJfJfJxSxSxxSxSxSxSCS7S777SAxSf.fExSxSxSxo7oE]A]AN:*LS7JSSSSS.4}}S2S}277JJS77SS7J72t7[[[[^ee*C`^.wRSSn[Cfx`xWlRx[][ceIfIs`Wx[rriwge*7DSS77S^*7*.SSSSSSSSSS..^^^Jxooxf]xx7Axfxx]xo]fxxxxf7.7NS7JSJSJ7SS..S.SSSS7A.SSxSSJP!PZ7SJSS7]777JJ:S7A7xx*7SSSS!S7.S^7SC[227`L*724S}}}Jxxxxxxoffff7777xxxxxxx^xxxxxx]SJJJJJJoJJJJJ....SSSSSSS[SSSSSSSCourier New (TT)Times New Roman (TT)Times New Roman (Italic) (TT)Courier New (Italic) (TT)2X DXP\  P6QXPW!0(X h0\  P6QhPR&HHHX,hH6X@DQh@2 @ Z u3|x"5@^2CRdd$CCdq2C28dddddddddd88qqqYzoCNzoozzC8C^dCYdYdYCdd88d8ddddCN8ddddY`(`l2CC!CCPRCddYYYYYYzYzYzYzYC8C8C8C8ddddddddddYdddddoddYYYYYzYzYzYddddddPdCdCCCdNdz8zRdddCRoNoNNF2[dCYddddd7>d<d<CCYYdCCddCYCdYzzzzCCCCqodYYYYYYYYYYY8888dddddddndddddddxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCYQQddddddFddddFCChhd44ddzzdddvooChdF"dhd9dCCzCddoddCdYds]zUvdYYCCCCz~ozoY~NYdYC8YooYdYzsdzdd~YYzozzz~CdzYzzzzCCdddddddzCsdYC\   pxtll\tll@\@\`LHP4Si; Rm. 201_1; LPT2onal)HPLA4SAD.PRSx  @\UJlX@2e)0@ZG!@#CourierCG TimesCG Times ItalicCourier Italic"5@^(1<LpBNRB"5@^2CTdd+CCd2C28ddddddddddCCdzzzzCYozzdozzooN8NTdCddYdY8dd88Y8ddddNN8dYYYNP7Pl2CC!CCPRCddzdzdzdzdzdYzYzYzYzYC8C8C8C8dddddddddoYzddddoYdzdzdzdzdYYYzYzYzYddddddPdCdCCCdYYo8oRdddzNzRdNdNNF2idNdddddd7>d<d<CCoodCCddCoCddzzzzzzzzzzCCCCozdddddddYYYYY8888dddddddndddddYdWWW5WWWW5WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW(WWW(WWW(WWW(WWWWWWWWWWWWWWILCICP5L/N5YFX@#ђ Those broadcast stations which elected mustcarry status were  Y-required to notify the cable system of their preferred channel position at that time.y  Y-ԍ #Xw PE37=9XP#47 C.F.R.  76.57(d).#x6X@`7>FX@#я SUMMARY OF PLEADINGS 2. On February 15, 1994, The Kralowec Children's Family Trust (Press), licensee of KKAK (TV), filed a complaint against Continental Cablevision of Sierra Valleys, Inc. (Continental) for the latter's alleged failure to comply with the channel positioning requirements of the Commission's Rules and the 1992 Cable Act. 3. KKAK began operating on May 7, 1992. Its overtheair channel position is 61. According to its complaint, on April 16, 1993 KKAK notified Continental that KKAK met the requirements for mustcarry and had elected mustcarry status on Continental's system. Continental was advised that KKAK wished to be carried on channel 5 of Continental's system. However, respondent placed KKAK on cable channel 33 in Visalia/Tulare and  Y-channel 36 in Corcoran.   #Xw PE37=9XP#KKAK argues that it has been placed in a disadvantageous channel position "at variance with the intent of Congress in establishing its channel positioning rules." On December 6, 1993 KKAK again requested that it be carried on channel 5; by  YK-letter, Continental rejected that request.K*  Y&-ԍ #Xw PE37=9XP#International Family Entertainment also filed comments in opposition to KKAK's  Y-complaint.#x6X@`7>FX@# Continental, in this instance,basically amplified and expanded its earlier position that the Commission's mustcarry rules set out a broadcaster's channel selection options and that a broadcaster's channel preference is not the determinative factor in this instance. -DISCUSSION 4. We address KKAK's claim that it is entitled to be carried on channel 5. The Cable Act and our rules offer three channel options available to broadcast stations electing mustcarry: 1) a station may elect to be carried on its overtheair channel; or 2) on the channel on which it was carried on July 19, 1985; or 3) on the channel on which it was carried on January 1,  Y7-1992.7  Y$-ԍ #Xw PE37=9XP#47 U.S.C.  534(b)(6); 47 C.F.R.  76.57(a).#x6X@`7>FX@#ѩ The rules also provide that a broadcast station may be carried "on such other channel  Y -as is mutually agreed upon by the station and the cable operator." u  YF'-ԍ #Xw PE37=9XP#47 U.S.C.  534(b)(6); 47 C.F.R.  76.57(c).#x6X@`7>FX@#ѩ Given that KKAK began operating in May of 1992 and its over the air channel number exceeds the number of channels41 on Falcon's system, complainant has interpreted the language "on such other"& 0*0*0*+ " channel as is mutually agreed upon by the station and the cable operator" as constituting a fourth option that prevents Falcon from unilaterally deciding which channel complainant will occupy. KKAK also believes that where a broadcaster may not take advantage of these three statutorily designated channel options it may not be left to the cable operator to determine  Y-where to place the broadcaster.  Y-ԍ #Xw PE37=9XP#KKAK believes that, for competitive reasons, Continental has placed it on less favorable channels, p. 1011 of Petition for Special Relief. Complainant believes that our rules give KKAK's channel position preference precedence "over all but the cable operator's  Y-technical ability to comply." Id. at 13.#x6X@`7>FX@#  We disagree with complainant's reading of our rules. 5. We read the 1992 Cable Act and the Commission's Rules to unambiguously state that  Y_-there are three optionsnot fouravailable to a broadcaster. _6 YF -ԍ #Xw PE37=9XP#See Report and Order, 8 FCC Rcd. at 2986. "The election of which of these three alternatives is left up to the station involved." "We also note that the 1992 Cable Act provides three channel positioning options for each commercial station and two for each NCE station, and also provides an opportunity for parties to develop their own solutions to  Y-conflicting claims." Id. at 2988.#x6X@`7>FX@# The language which allows cable operators and broadcasters to mutually agree upon a different channel is the mechanism by which the two may reach a channel positioning option outside of the three proposed by the 1992 Cable Act's provisions. It is simply a way of saying that the parties have the flexibility to reach a result different from the three statutory options. It does not, however,  Y -mean that in the event the three options are not available the parties must agree on the ultimate placement of the channel. To read this flexibility as a mandatory fourth option would totally obviate the prior three options as broadcasters would clash with other broadcasters in seeking what they viewed as a more favorable channel position, leaving the cable operator in the position of having to choose between competing broadcasters. In the present case, KKAK was initially carried by Continental on channels 33 and 36. Channel 61 is KKAK's overtheair channel, and KKAK was not in operation on either July 19, 1985 or January 1, 1992. Though the parties were not able to reach a mutually agreeable channel, we find nothing improper with Continental's unilateral assignment of KKAK to channels 33 and 36. 6. KKAK also contends that "Congress clearly indicated its preference for channel choices that limit cable operators' ability to carry local stations on inferior channel positions." It believes that channel's 33 and 36 are outside of what it calls Continental's "de facto broadcast tiers", channels 113, and that it is "segregate[ed]" to an end of the viewing band away from the favorable channel positions enjoyed by all other local commercial television stations. 7. We certainly understand KKAK's desire to remain as competitive as possible. However, there is no specific nor implicit requirement that cable operators arrange their basic tier such"9 0*((." that some sort of alleged economic equilibrium amongst broadcasters is attained. Inferring such a requirement would complicate channel positioning election beyond anything envisioned by Congress. Thus, we find that Continental has complied with the requirements of the 1992 Cable Act. 8. Accordingly, the petition filed on February 15, 1994, by The Kralowec Children's Family Trust IS DENIED, in accordance with Section 614(b)(6) (47 U.S.C.  534) of the Communications Act of 1934, as amended. This action is taken by the Chief, Cable Services Bureau, pursuant to authority delegated by Section 0.321 of the Commission's Rules. x` `  hh FEDERAL COMMUNICATIONS COMMISSION x` `  hh William H. Johnson x` `  hh Acting Chief, Cable Services Bureau