PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 1919 M STREET, N.W. WASHINGTON, D.C. 20554 DA 97-2428 News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet: http://www.fcc.gov ftp.fcc.gov CABLE SERVICES ACTION November 20, 1997 MICROWAVE SATELLITE TECHNOLOGIES, INC. FILES A NOTICE OF INTENT TO ESTABLISH AN OPEN VIDEO SYSTEM On November 13, 1997, Microwave Satellite Technologies, Inc. ("MST"), filed a Notice of Intent To Establish an Open Video System in the communities of Manhattan, Brooklyn, The Bronx, Queens, and Staten Island, New York. A copy of MST's Notice of Intent is attached to this public notice and is also available via the Internet: http://www.fcc.gov/Bureaus/Cable/WWW/csovscer.html. Media Contact: Morgan Broman at (202) 418-2358. Cable Services Bureau Contact: Royce Dickens at (202) 418-7200. TTY: (202) 418-7172. --FCC-- Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) MICROWAVE SATELLITE ) FILE NO. TECHNOLOGIES, INC.) ) Notice of Intent to Establish ) an Open Video System ) NOTICE OF INTENT TO ESTABLISH AN OPEN VIDEO SYSTEM Microwave Satellite Technologies, Inc. ("MST"), by its undersigned counsel, and pursuant to Section 651 of the Telecommunications Act of 1996 and Section 76.1503 (b)(1) of the Commission's Rules, hereby submits its "Notice of Intent," ("Notice") to establish an Open Video System ("OVS"). As required by Section 76.1503(b)(1), MST respectfully submits the following information: 1. The OVS operator is Microwave Satellite Technologies, Inc. The contact person for the operator, is Frank T. Matarazzo, 200 Lawlins Park, Wyckoff, New Jersey, 07481. Mr. Matarazzo may be reached at 201/848-1166 (ext. 123). 2. MST's projected service area includes the following communities: MANHATTAN 10001 10002 10003 10004 10005 10006 10007 10009 10010 10011 10012 10013 10014 10016 10017 10018 10019 10020 10021 10022 10023 10024 10025 10026 10027 10028 10029 10030 10031 10032 10033 10034 10035 10036 10037 10038 10039 10040 10041 10044 10047 10048 10128 10280 10281 10282 BROOKLYN 11201 11203 11204 11205 11206 11207 11208 11209 11210 11211 11212 11213 11214 11215 11216 11217 11218 11219 11220 11221 1222 1223 11224 11225 11226 1228 11229 11230 11231 11232 11233 11234 11235 11236 11237 11238 11239 THE BRONX 10451 10452 10453 10454 10455 10456 10457 10458 10459 10460 10461 10462 10463 10464 10465 10466 10467 10468 10469 10470 10471 10472 10473 10474 10475 QUEENS 11101 11102 11103 11104 11105 11106 11354 11355 11356 11357 11358 11359 11360 11361 11362 11363 11364 11365 11366 11367 11378 11369 11370 11371 11372 11373 11374 11375 11377 11378 11379 11385 11411 11412 11413 11414 11415 11416 11417 11418 11419 11420 11421 11422 11423 11424 11426 11427 11428 11429 11430 11431 11432 11433 11434 11435 11436 11691 11692 11693 11694 11695 11696 11697 STATEN ISLAND 10301 10302 10304 10305 10306 10307 10308 10309 10310 10311 10312 10314 3. Video Programming Providers ("VPPs") interested in carriage on MST's open video system may obtain additional information about the system by completing the OVS Information Request Form (Attachment 1) and submitting it to: Frank T. Matarazzo 200 Lawlins Park Wyckoff, NJ 07481 Pursuant to 47 C.F.R.  76.1503(b)(2) of the FCC's rules, MST will provide the VPP with additional information regarding the open video system within five business days of receipt of a request for information. The VPP will also be provided with additional forms and instructions necessary for carriage on MST's open video system. Thereafter, a VPP seeking carriage must submit the required forms, a non-refundable application processing fee, and a channel reservation deposit by the end of the enrollment period. 4. The enrollment period for VPPs seeking carriage on MST's open video system will open on November 17, 1997, and will close February 28, 1998. In order to allow for contract finalization, ensure orderly channel allocation and allow timely systems allocation to occur, VPPs must submit their preliminary enrollment requests no later than November 31, 1997. Allocation of capacity in the event demand exceeds system capacity will occur as described in Attachment 2. 5. One third of the system's maximum capacity will be set aside for MST and/or its affiliates. In addition, MST will utilize approximately twenty-six (26) channels to carry public programs, educational programs, governmental programs, and those stations entitled to demand carriage pursuant to 47 C.F.R.  76.56 and  76.1506 of the FCC's rules. The remaining channels will be available for interested VPPs. No VPP will be assigned more than the capacity set aside for MST and its affiliates. 6. Attached is MST's certification that it has complied with all relevant notification requirements concerning must-carry and retransmission consent (47 C.F.R.  76.1506), including a list of all the local commercial and non-commercial television stations served (Attachment 3) and an example of the notification letter sent to television stations entitled to notice (Attachment 4). Also attached is a certificate of service showing that MST's Notice of Intent has been served on all local franchising authorities which are located within MST's anticipated OVS service area (Attachment 5). Respectfully submitted, MICROWAVE SATELLITE TECHNOLOGIES, INC. /s/ Howard J. Barr Counsel PEPPER & CORAZZINI, L.L.P. 1776 K Street, N.W., Suite 200 Washington, D.C. 20006 202/296-0600 November 13, 1997 ATTACHMENT 1 MICROWAVE SATELLITE TECHNOLOGIES, INC. OPEN VIDEO SYSTEM INFORMATION REQUEST FORM SECTION I: Video Programming Provider Information Name of Company: ___________________ Name of Contact: ___________________ Address: ___________________ ___________________ ___________________ Telephone No.: ___________________ Facsimile No.: ___________________ SECTION II: Carriage Information Total amount of capacity requested: ________________ channels SECTION III: Certification and Non-Disclosure Statement The undersigned video programming provider ("VPP") represents that is has the right under the copyright laws to select and contract for carriage of specific video programming on the MST open video system, and that it has no formal or informal affiliation (as defined by 47 C.F.R.  76.1500(g) of the FCC's rules) or agreement with any other VPP requesting capacity or with any cable operator providing cable television services within MST's open video system service area, and that the capacity requested will only be used for the commercial operation of an information service. The VPP and its affiliates agree not to disclose to any other party the information provided by MST in response to this request, except for information that is in the public domain and except as provided in 47 C.F.R.  76.1513(j) of the FCC's rules, and that the information will not be used for any purpose whatsoever other than making an informed decision as to whether to enroll in the MST open video system and the subsequent activation of such enrollment, if any. ______________________________________ __________________________________________ Signature Name and Title Date _________________________________ Please mail or telecopy this form to: Mr. Frank Matarazzo 200 Lawins Park Wyckoff, NJ 07481 201/848-1313 (Fax No.) ATTACHMENT 2 MICROWAVE SATELLITE TECHNOLOGIES, INC. OPEN VIDEO SYSTEM CHANNEL ALLOCATION PROCESS MST's anticipated total system capacity on its open video system is 330, 6 MHz analog channels. The following channel allocations already have been made: MST: 110 channels for video programming + approximately 26 channels for the PEG/Must-Carry/Retransmission consent requirements. The remaining number of channels to be allocated is 194. Initial capacity requests must be submitted by November 31, 1997. At that time, the total number of channels requested from all VPPs will be calculated. If sufficient capacity exists to fill all requests, each VPP will be allocated channel capacity equal to its request. If the sum of all channels requested exceeds available channel capacity, each VPP requesting fewer than 6 channels will receive its requested channels; VPPs requesting more than 6 channels will receive at least 6, total capacity permitting. The remaining channels will be allocated to each VPP requesting more than 6 channels on a pro rata basis; that is based on the ratio of the remaining number of channels requested by all VPPs. The following is an illustration of the allocation process based on the availability of 194 channels and a request for 398 channels from multiple VPPs. _______________________________________________________________ Ratio of Rmng Chnl Minimum Rmng Avlble to No. of Chnls Alloca- Chnls Rmng Chnl Chnls VPP Requested tion Requested Requested Allocated A 2 2 0 -- 2 B 6 6 0 -- 6 C 20 6 14 .443 12 D 110 6 104 .443 52 E 150 6 144 .443 70 F 110 6 104 .443 52 Total 398 32 366 194 ATTACHMENT 2 Page 2 of 2 Because VPPs C through F all requested more than 6 channels, each VPP is allotted up to 6 channels as the minimum allocation. The remaining number of channels available to be divided among the VPPs is 162 (194 channels minus 32 channels). The number of available channels to be allocated on a pro rata basis (162) is divided by the remaining number of channels requested (366), which equals .443. This factor is used to calculate the distribution of the remaining 162 channels to VPPs C through F. The remaining channels requested by VPPs C through F are multiplied by the pro rata factor (.443) to determine the number of channels the VPPs will be allocated in addition to the six channel minimum. Fractions of channels have been rounded to the nearest whole number. MST will mail notification to each VPP to confirm the channel capacity allocation by January 15, 1998. Any VPP that is allocated fewer channels that it initially requested may withdraw its channel capacity request by notifying MST by mail. Cancellations must be received by 5:00 p.m. on January 20, 1998. Channel capacity made available through the withdrawal of one or more VPPs will be reallocated on a pro rata basis to the remaining VPPs who did not receive their full request. On January 25, 1998, MST will mail a notification to each remaining VPP to confirm the final channel capacity allocation. Attachment 3 CERTIFICATE OF SERVICE I, Frank T. Matarazzo, hereby certify that on 11/7/97, I caused written notice to be sent via overnight mail to all commercial and non-commercial television stations operating within MST's proposed open video system television market, as indicated by the attached service list. /s/ Frank T. Matarazzo Service List Commercial and Non-Commercial Television Stations Walter C. Liss President & General Manager WABC-TV 7 Lincoln Square New York, NY 10023 Bud Carey Vice President & General Manager CBS Television Stations 524 West 57 Street New York, NY 10019 Robert Qudeen Vice President & General Manager WWOR-TV, Inc. 9 Broadcast Plaza Seacaucus, NJ 07096 Paul Bissonette Vice President & Station Manager WPIX Inc. 220 East 42nd Street New York, NY 10017 Tomas Johansen Vice President & General Manager WXTV Channel 41 24 Meadowlands Parkway Seacaucus, NJ 07094 William Bolster Vice President & General Manager WNBC 30 Rockefeller Plaza New York, NY 10112 Hilary Hendler Vice President & General Manager FOX Television Stations 205 East 67th Street New York, NY 10021 Manuel Martinez Llorian Senior Vice President & General Manager WNJU Channel 47 47 Industrial Avenue Teterboro, NJ 07608 Carolyn Wall President WBIS TV 31 200 Liberty Street New York, NY 10281 Marvin Chauvin Chief Executive Officer WLIG TV 55 314 Wading River Hollow Road Ridge, NY 11961 Dr. William Baker President & Chief Executive Officer WNET 356 West 58th Street New York, NY 10019 Frank Sobrino General Manager WNYE 112 Tillary Street Brookly, NY 11201 Terrel Cass President & General Manager WLIW Channel 21 Drive Plainview, NY 11803-5015 Bill Roller Vice President & Station Manager WHSE 390 West Market Street Newark, NJ 07107 Sun Young Joo President & General Manager WMBC TV 63 263 W. 37th Street 23rd Floor New York, NY 10018 Greg Floyd General Manager WTZA 721 Broadway Kingston, NY 12401 Elizabeth G. Christopherson Executive Director & CEO WNJN c/o WNJT Front 7 Stockton Streets CN 777 Trenton, NJ 08625-0777 Attachment 4 Via Certified Mail -- Return Receipt Requested Mr. Manuel Martinez Llorian Senior Vice President & General Manager WNJU Channel 47 47 Industrial Avenue Teterboro, NJ 07608 Dear Mr. Llorian: This letter serves to inform you that Microwave Satellite Technologies, Inc. ("MST"), intends to begin operating an Open Video System ("OVS") in the City of New York, including the Bronx, Brooklyn, Manhattan, Queens and Staten Island. Service activation is expected to occur in February of 1998. The open video system will have 330 channels of analog capacity. Due to OVS's planned geographic deployment, your station is entitled to carriage, should you so elect, provided it is subsequently determined that the station delivers a good quality signal to the principle headend located at One Central Park West, New York, NY, and provided further that carriage of the station will not subject MST to copyright liability. Under the Federal Commu- nications Commission's OVS Rules, 47 C.F.R. 76.1500, et seq., you may select mandatory carriage, or you may negotiate consent for retransmission of your signal. All video programming providers (VPPs) and MST's Open Video System will be notified of your decision. If you elect "must carry", MST, as the operator of the system, will deliver your signal to all subscribers of any VPP on the system. If you elect "retransmission consent," you may negotiate with one or more VPPs delivering programming over the MST OVS for inclusion in their programming package. Please notify us by Certified Mail within five business days of your election. MST will initially provide service in the same geographic areas as Cablevision of New York City, Time Warner of New York City and Staten Island Cable. Therefore, pursuant to FCC Rules, your election for OVS must be the same as any elections you make with respect to the above mentioned cable system operators in the towns listed on the attachment. The FCC's OVS Rules also specify that MST, as the system operator, must receive notification with respect to black-out requirements related to sports broadcasts, network non-dupli- cation, and syndicated exclusivity. MST will make all notifications available to appropriate VPP's on the system, and will delete signals from the system in accordance with the FCC's Rules. Very truly yours, /s/ Frank T. Matarazzo ATTACHMENT 5 CERTIFICATE OF SERVICE I, Dina Etemadi, hereby certify that on November 13, 1997, copies of the foregoing Notice of Intent to Establish Open Video System was served via first class mail on the parties listed below: William F. Caton * Acting Secretary Federal Communications Commission 1919 M Street, N.W. Washington, DC 20554 Office of the Bureau Chief * Cable Services Bureau 2033 M Street, N.W., Room 918 Washington, DC 20554 John Logan Acting Deputy Chief * Cable Services Bureau 2033 M Street, N.W., Room 918 Washington, DC 20554 Alyssa Roberts * Cable Services Bureau 2033 M Street, N.W., Room 700Q Washington, DC 20554 James Olson, Chief * Cable Services Bureau 2033 M Street, N.W., Room 700Q Washington, DC 20554 Elaine Reiss, Esq. Department of Information Technology & Telecommunications 11 Metrotech Center, 3rd Floor Brooklyn, NY 11201 Norman M. Sinel, Esq. Stephanie M. Phillips, Esq. William E. Cook, Jr., Esq. Arnold & Porter 555 Twelfth Street, N.W. Washington, D.C. 20009 John C. Crary New York Public Service Commission Three Empire State Plaza Agency Building 3 Albany, NY 12223-1350 /s/ Dina Etemadi * Hand Delivery