******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect or Word to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of: Paxson Salt Lake City License, Inc. v. Sonic Cable Television of Utah Request for Mandatory Carriage of Television Station KOOG-TV Ogden, UT ) ) ) ) ) ) ) ) ) ) ) CSR-5192-M ORDER ON RECONSIDERATION Adopted: April 24, 2000 Released: April 26, 2000 By the Deputy Chief, Cable Services Bureau: I. introduction 1. Paxson Salt Lake City License, Inc. ("Paxson" or "Paxson Salt Lake"), licensee of commercial television station KUWB(TV), located in Ogden, Utah filed a Petition for Reconsideration ("Petition") requesting that the Cable Services Bureau's Order ("Bureau Order") denying must carry status to television broadcast station KUWB(TV) ("KUWB" or the "Station") be reversed. Paxson requests that the Bureau grant KUWB mandatory carriage and order Sonic Cable Television of Utah ("Sonic") to cooperate with KUWB so that the Station can provide a good quality signal to Sonic's Logan, Utah headend. Charter Communications Properties, LLC ("Charter") filed an opposition to the petition. II. background 3. Pursuant to Section 614 of the Communications Act and implementing rules adopted by the Commission in Implementation of the Cable Television Consumer Protection and Competition Act of 1992, Broadcast Signal Carriage Issues, ("Must Carry Order"), commercial television broadcast stations are entitled to assert mandatory carriage rights on cable systems located within the station's market. A station's market for this purpose is its "designated market area" or DMA, as defined by Nielsen Media Research. A DMA is a geographic market designation that defines each television market exclusively of others, based on measured viewing patterns. Essentially, each county in the United States is allocated to a market based on which home-market stations receive the preponderance of total viewing hours in the county. For purposes of this calculation, both the over-the-air and cable television viewing are included. 4. In its initial filing in this proceeding, Paxson filed a must carry complaint against Sonic for its failure to carry KUWB on its system serving Logan, Utah and surrounding communities. In opposition, Sonic argued that KUWB could not deliver a good quality signal to its Logan headend as required by statute and Commission rules. Sonic noted that because of the mountainous terrain of the area it serves, it uses a "receive site" at Clarkston Ridge, Utah, to receive the network affiliates' signal originating in Salt Lake City. Then, from the receive site, Sonic transmits those signals via fiber optic cable to its Logan headend. In reply, Paxson conceded that the Station did not provide a good quality over-the-air signal to Sonic's Logan headend, but argued that KUWB should be allowed deliver its signal to Sonic's receive site at Clarkston Ridge, Utah, instead. In its decision, the Bureau noted that Paxson understood the statutory requirement and Commission rule that a station seeking mandatory carriage on a cable system must deliver a good quality signal to that system's principal headend. The Bureau held that KUWB would be entitled to mandatory carriage if it provided a good quality signal to the Logan headend. The Bureau, however, concluded that allowing KUWB to deliver its signal to a location other than Sonic's principal headend would not be in compliance with the Cable Television Consumer Protection and Competition Act of 1992 or the Commission's rules. V. discussion 6. In its Petition, Paxson contends that the Bureau misconstrued Paxson's argument regarding Charter's failure to fulfill its duty as required by Congress and the Commission to cooperate with the station's efforts to provide a good quality signal to the principal headend of [Charter's] system. Paxson reiterates its earlier arguments. It contends that Charter is not giving KUWB that cooperation. Paxson points out that the Commission has stated that it expects cable operators to cooperate fully with broadcast stations seeking mandatory carriage to avoid depriving them of their statutorily mandated must-carry rights. Thus, according to Paxson, Charter must allow KUWB the use of the receive site to deliver its signal rather than to Charter's Logan headend. In support, Paxson cites Kralowec Children's Family Trust v. Time Warner Cable ("Kralowec") where the Bureau stated: "[i]n instances where it has been shown that the cable operator is not receiving a good quality signal at its headend we expect the system and the station to attempt to resolve any potential problems together." Thus, Paxson asserts that Charter "is obligated to make its existing cable plant and the method of reception it routinely utilizes for other similarly situated broadcast stations available to Paxson." 7. In opposition, Charter argues that the instant Petition is procedurally and substantively defective. Charter contends that it is procedurally defective because Paxson offers neither new facts or evidence not previously before the Commission nor shows material error or omission in the Bureau's original decision. Charter contends that it is substantively defective because Paxson alleges that the Bureau erred in not requiring Charter to provide KUWB access to Charter's receive site and transportation of the KUWB signal to the Logan headend from Charter's Clarkston Ridge facilities. Charter maintains that Paxson choose to ignore a case cited in the Bureau Order, in which the Bureau stated: [W]hile [the Station] relies heavily on the Clarification Order's requirement that currently non-carried stations be measured to the extent possible using equipment currently used to receive similar signals, it should be noted that this same order specifies that 'cable operators need not employ extraordinary measures or specialized equipment when making measurement for stations that are not currently carried.' The use of separate reception and microwave transmission equipment would fall within this category of extraordinary measures." 6. Charter maintains that while it is obligated to cooperate with the television station's efforts to provide a good quality signal to its principal headend, such obligation does not include giving KUWB access to Charter's receive site to deliver its signal and then allowing Charter to transport KUWB's signal to the Logan headend. Charter notes that although a cable operator may be willing to provide "extraordinary" measures to a licensee seeking mandatory carriage, it is not required to do so. Charter points out that its decision to allow the use of the Clarkston Ridge facility to only the stations it voluntarily carries pursuant to retransmission consent agreements is discretionary, but not discriminatory. Charter notes further that the only must carry station it carries delivers a good quality signal to the Logan headend. 7. The allegations previously raised by the parties and our discussion and analysis of the issues raised are fully addressed in the Bureau Order and need not be discussed here. Paxson, however, asserts that the Bureau Order erred by insisting that it deliver a good quality signal to the Logan headend and by not requiring Charter to make available its Clarkston Ridge facility to KUWB for the delivery and transportation of its signal to the Logan headend. Our review of the record, however, indicates that the Bureau's initial findings and conclusions were correct. 8. Paxson notes that Charter has a duty to cooperate with the Station so that it can deliver a good quality signal to the operator's principal headend. Paxson insists that the only way Charter can fulfill its duty to cooperate is if it allows KWUB to use the Clarkston Ridge receive site as the delivery point of its signal and then transport the signal to the Logan headend. According to Paxson, the duty to cooperate that Charter has pursuant to the statute and the Commission's rules would sanction the delivery of the KWUB signal to the Clarkston Ridge facility rather than to the operator's Logan headed. Thus, Paxson requests that the Commission order Charter to provide KWUB access to the Clarkston Ridge facility and to transport the KWUB signal to the Logan headend. We disagree with Paxson's interpretation of the statute and the Commission's rules. We also disagree with Paxson's interpretation of the manner in which Charter can fulfill its duty to cooperate. First, the Commission has held that the concept of delivery of a good quality signal to a cable operator's principal headend is statutorily-mandated and is, therefore, not something which can be arbitrarily changed at either the discretion of the cable operator or the Commission. 9. Second, although we agree that cable operators have a duty to cooperate with broadcast television stations seeking must carry status, we note that a cable operator is required to render such cooperation when the issue is the delivery of a good quality signal to a cable operator's principal headend. The Bureau Order noted that Paxson unquestionably understands that the statute as well as the Commission's rules require that a commercial broadcast station seeking mandatory carriage in a cable television system must deliver a good quality signal to the cable system's principal headend, not anywhere else. Paxson's understanding of the statute and the rules is also evidenced in this Petition. As noted above, Paxson states that it is "a licensee seeking to provide a good quality signal to the System's principal headend." In addition, Paxson cites the Kralowec case where the Commission noted that a commercial station seeking mandatory carriage should place a good quality signal at a cable system's headend. The cooperation expected of a cable operator, however, is not required when the cable operator has to employ extraordinary measures to measure signal strength. Or where, as in the instant case, the broadcast television station wants to deliver its signal to a location other than the statutorily-mandated principal headend. A cable operator's cooperation in cases requiring extraordinary measures, as in this case, is discretionary, not mandatory. Thus, whether or not KUWB is allowed the use of the Clarkston Ridge facility is solely within Charter's discretion. Neither the statute nor the Commission's rules require Charter to afford such access nor do they sanction the delivery of a station's signal to a location other than the cable operator's principal headend. The Commission has been clear on this point. In its Clarification Order the Commission stated: "[a]s the statute specifies that a broadcast station must deliver a good quality signal to the principal headend of the cable system to be entitled to must-carry rights, we clarify that the designated principal headend is the appropriate location for such measurement." We therefore deny the instant Petition. X. ordering clauses 11. Accordingly, IT IS ORDERED that the Petition for Reconsideration filed by Paxson Salt Lake City License, Inc., licensee of station KWUB(TV), in CSR 5192-M IS DENIED. 12. This action is taken pursuant to authority delegated by Section 0.321 of the Commission's rules. FEDERAL COMMUNICATIONS COMMISSION William H. Johnson Deputy Chief, Cable Services Bureau