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FEDERAL COMMUNICATIONS COMMISSION
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WASHINGTON, D.C. 20554                                 DA 97-1225

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                      CABLE SERVICES ACTION         June 11, 1997


COMMENT IS REQUESTED ON MOTOROLA'S REQUEST FOR TREATMENT OF ITS
BROADBAND DESCRAMBLER EQUIPMENT AS CUSTOMER EQUIPMENT FOR COST RECOVERY PURPOSES

     The Commission has received an informal request for a declaratory ruling from Motorola asking
the Commission to treat Motorola's broadband descrambler equipment, included in its HomeClearTMproduct offering, as customer equipment for cost recovery purposes.  Under Section 76.923 of the
Commission's regulations, cable operators can recover from subscribers the cost of customer equipment,
such as converter boxes and remote control units.

     Motorola asserts that its descrambler equipment, which would typically be located outside a
customer's residence, and not inside where set top converter boxes are otherwise located, provides
conditional access to programming in analog cable TV systems, just as a set top converter would. 
Specifically, Motorola asserts that the costs of its broadband descrambler unit of HomeClear should be
recovered directly from the subscribers because:  (1) the equipment is located on the consumer's residence
at or near the wiring demarcation point and although not conclusive, such location is a clear indication that
HomeClear is the type of equipment Congress intended to be treated as customer premises equipment; (2)
HomeClear serves the same function, conditional access for programming, as a set top converter and will
often replace the consumer's set top boxes for multi-channel TVs; and (3) permitting the cable operator
to recover the costs of the broadband descrambler from the customer is essential to maintaining
competitively equal treatment with set top converter boxes.   

     Comment is requested on Motorola's request for a declaratory ruling asking the Commission to
treat Motorola's broadband descrambler equipment, included in its HomeClear product offering, as
customer equipment for cost recovery purposes.  Interested parties may file comments by July 11, 1997
and reply comments by July 28, 1997. 


Media Contact: Morgan Broman, at (202) 418-7200
Cable Services Bureau Contact:  Claire Blue, at (202) 418-7200.


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