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Consistent with the apparent desires of Congress as  xNreflected in Section 305 of the Telecommunications Act of 1996, we will require that data  xiinsertion systems protect the integrity of closed captioning signals on line 21. The need for these  xsystems to also protect any closed captioning or video description signals, or other similarly  xintended enhancements for persons with disabilities that the Commission may specify or may  xwant to protect in the future, will be included in consideration of any rules adopted to implement  x/such enhancements. Any data insertion must be accomplished in a manner that leaves the  x\licensee with the capability to modify, reduce, or eliminate the data insertion if necessary to  X -terminate any interference caused, or to restore the quality of a degraded picture. g yOo- x[ԍ Our rules require such retention of control in analogous situations, including Section 73.646(d) for VBI transmissions and Sections 73.667(e) and 73.669(c) for television subsidiary communication services.  X -  LICENSEES' RIGHTS AND OBLIGATIONS ĐTP  X- x0 16. Generally, each licensee must also retain ultimate control over the content of any  xinserted data in order to meet its statutory obligation to exercise full editorial and technical  Xb- xresponsibility over all matters involving the operation of the station.b* g {O=- x-ԍ See, e.g., Trustees of the University of Pennsylvania, 69 FCC2d 1394, 1396 (1978); Fresno FM Limited  yO-Partnership, 68RR2d 1645, 164748 (Rev. Bd. 1991). However, consistent with  x.the current VBI telecommunications service rules, ancillary services that are common carrier in  xLnature and provided over broadcast signals will be subject to common carrier regulation. As a  xresult, as with common carriers in general, broadcasters will be prohibited from exercising control  x=over the content of this type of ancillary transmission. Otherwise, the broadcaster must retain the ability to remove ancillary information from the signal when it deems necessary.  X- x 17. Ancillary signals are a means of raising station revenues and, like telecommunications  X- x-services on the VBI, will be considered an elective service.I g yO%-ԍ 47 C.F.R. 73.646(b).I In many respects, we see no reason  xto treat VBI and nonVBI ancillary signals differently. Therefore, we shall extend the series of",-(-(ZZ3"  X- xrules addressing ancillary VBI transmissionsIg yOy-ԍ 47 C.F.R.  73.646(a) (f).I to include ancillary signals within the video portion  X- x.of the signal. Ancillary VBI transmissions may be analog or digital,CXg yO-ԍ 47 C.F.R.  73.646(a).C and they can be used to  X- xLprovide broadcast, pointtopoint, or pointtomultipoint services.Cg yOk-ԍ 47 C.F.R.  73.646(b).C Services that are common  x=carrier in nature are subject to common carrier regulation. Licensees that desire to operate in a  xcommon carrier mode must apply to the Commission for the appropriate authorization and  x=comply with all policies and rules applicable to the particular service, including the prohibition  Xv- xagainst controlling transmission content.Cvxg yO -ԍ 47 C.F.R.  73.646(c).C We now extend these rules to apply to ancillary transmissions within the video portion of the NTSC television broadcast signal.  X1- x 18. Section 3(6) of the Communications Act of 1934, as amended, defines broadcasting as  x"the dissemination of radio communications intended to be received by the public, directly or by  X - xthe intermediary of relay stations."@ g yO-ԍ 47 U.S.C.  153(6).@ The Commission has determined that signals which are  xintended for an audience needing special equipment or who must subscribe to the service do not  X - xconstitute "broadcasting" as defined in the Communications Act.  g yO- xԍ Report and Order in Gen. Docket 85305, 2 FCC Rcd 1001 (1987) (Subscription Television), aff'd sub nom.  yO- x<National Association For Better Broadcasting v. FCC, 849 F.2d 665 (D.C. Cir. 1988), requests for rehearing and  yO- xrehearing en banc denied, August 31, 1988 and February 16, 1989, recon. denied in part and dismissed in part, 4 FCC Rcd 4948 (1989). Thus, to the extent that  x@ancillary signals are not intended for the general public, we will not consider them as  xbroadcasting for the purposes of our rules. For example, the rule addressing the lowest unit  xZcharge for political candidates will not apply to these transmissions. We note that this framework  Xy- xMparallels that which we apply to ancillary transmissions within the VBI.Cy g yO-ԍ 47 C.F.R.  73.646(b).C At the same time,  xhowever, if significant public interest uses of this ancillary transmission technology suggest  xthemselves, the Commission of course may consider means by which to advance or ensure such usage of the broadcast spectrum.  X- MISCELLANEOUS ISSUES ĐTP  X- x 19. In its initial comments on WavePhore's request, Radio Telecom and Technology, Inc.  x(RT&T) raised a question of whether a licensee may alter the basic waveform of its broadcast  xsignal by using a filter to eliminate some video information, as required by the WavePhore",-(-(ZZ"  X- xsystem, consistent with existing rules.pg {Oy-#X\  P6G;P#э See Notice at 4919.p RT&T specifically refers to Section 73.682 and Figures  xy5 and 5A of Section 73.699 of our Rules. However, Section 73.687 formerly contained tolerance  xlimits relative to Figure 5 of Section 73.699 for visual transmission system performance within  X- xthe authorized channel until that requirement was deleted for most stations in 1984.{Zg {O-ԍ See Report and Order in Gen. Docket No. 83114, 99FCC2d903 (1984).{ The  xjremaining "tolerance" requirements only cover TV stations operating on channels 15 to 69 and  xemploying a transmitter delivering maximum peak visual power output of 1 kilowatt or less. Few  xfull service TV stations operating on these channels use transmitter power this low. Therefore,  xessentially all TV stations operate without an express limit on how far from ideal their inchannel  xtransmitter performance can be. Those stations with a tolerance may depart as necessary to use  xany approved digital data insertion system. Broadcast licensees are allowed to process their video  xsignals as they find appropriate. While we are concerned that systems that modify the  x]transmitted TV waveform can increase the potential of the station causing objectionable  xinterference, we will consider for approval any such system that demonstrates this concern to be  X -unfounded (as has been done here with respect to the Digideck and WavePhore systems).  X - x- 20. Comsat expresses concern about subvideo data insertion causing problems where analog  xvideo is converted to digital video for program distribution, which may also be a concern for  x!possible future consumer digital VCRs. Concern is expressed that the use of subvideo  xtechnologies may cause signal quantization errors that could result in picture degradation and that  xcoding efficiency associated with motion estimation could also be adversely affected. We  xZencourage any program suppliers wishing to insert subvideo data and digital VCR designers that  xexpect to include an ability to digitally record an NTSC input signal to consider the concerns  xjraised by Comsat. We believe that if significant problems arise in digital VCR performance due  x<to dataencoded video, then broadcasters may elect to discontinue the service or consumers may  xjreject digital VCRs. At this time we believe that data insertion will occur principally at the local  xlevel, but if it is to occur on a national basis, the parties wishing to insert digital data at a single  xjsource or to accommodate the distribution of such enhanced signals will have to resolve these  xconcerns. In both situations, the industry participants have sufficient interest and the greatest  xmexpertise to resolve these issues, and in neither case do we see a specific role for this Commission to play at this point.  X7- x 21. RT&T seeks to include its "reverse VBI" technology in this proceeding. RT&T's system  xinvolves transmissions from viewers' homes on TV channels, but synchronized to correspond to  xa TV broadcast station's VBI in order to avoid interference. Because we are only addressing  xNTSC TV station transmissions in this proceeding, the RT&T proposal is beyond the proper scope of our consideration here and will not be included.  X!- x 22. One commenting party, En, has submitted information regarding its "Malachi" system,  xjcapable of a high data rate like the subvideo systems, that is similar in many ways to the other"" ,-(-(ZZ!"  X- xtechnologies, but with certain notable and possibly significant differences. g yOy- xyԍ En describes its system as linking a viewer's television and personal computer (PC). During a broadcast  xtelevision program, data that would usually be programrelated would be downloaded into the PC, to which En's  xequipment would have to be connected. According to En, viewers who already had a PC and a television would pay less than $100 for En's equipment, and there would be no subscription fee for receipt of the ancillary transmissions. These differences  x]are sufficient to warrant separate examination of the En system as a third method of data  X- xinsertion, which we will refer to as signal substitution technology. Comments filed by En  xdescribe a system that is roughly similar to overscan, except that while overscan systems replace  xsuch small portions of the picture so as to remain invisible, the Malachi system would typically  xreplace many lines, or portions of lines, and thus be quite perceptible to the viewer. It differs  xjfrom subvideo by actually replacing lines of the active video signal, rather than simply adding  xkdata to them. The data would appear on the television screen as a rectangle of "snow" that  x[would always have to touch the left side of the screen, and the size of which would depend on  xthe data transmission rate. Typically, according to En, the rectangle would appear as a strip across the bottom of the screen, and it would not affect the audio portion of the programming.  X - x  23. Such a system, which involves absolute elimination of some part of the picture (or a  xreduction in the amount of the screen given to a video picture) and could, presumably,  xcompletely replace the entire picture, raises additional issues regarding spectrum allocation and  xuse that have not been addressed in this proceeding. Moreover, we have only sketchy technical  xinformation on how this system would operate. For instance, En has not explained the proposed  xzscope of its system's implementation, including any proposed limit on the percentage of the  xpicture to be replaced by data. The replacement of the entire picture is not ruled out. Such a  xsignificant policy change would appear to go far beyond the scope of the operational flexibility  X4- xwe proposed in the Notice. Therefore, prior to our consideration of En's system, En must submit  xa proposal for approval so that these and any other issues raised by its proposed system can be  xfully addressed by the Commission, broadcasters, potential users, and the public. Alternatively,  xEn could test its system at specific stations that request authority to operate on an experimental  x{basis. Such requests for experimental authority should include the technical information necessary for us to evaluate the system's operation.  X-%G CONCLUSION ĐTP  Xe- x= 24. In light of recent innovations and developments in telecommunications technology, we  xLare now able to expand and enhance the potential uses of the existing spectrum. Accordingly,  xwe have reexamined our policy towards the transmission of ancillary signals within the video  x<portion of the standard NTSC television signal, which we have traditionally prohibited. Methods  xhave recently been developed that will allow television broadcast licensees to insert digital data  xinto the video portion of the signal without causing significant picture degradation or interference,  xthereby allowing licensees to provide a wide variety of ancillary services. These services will  xhelp licensees raise revenue, which we anticipate will in turn allow them to provide greater public  xZinterest broadcast services to their communities of license. We also expect the provision of these"!  ,-(-(ZZ "  xancillary services to expand and improve the products and services available to businesses and consumers within a television station's service area.  X-[ ADMINISTRATIVE MATTERS T  X-TP 25. A Final Regulatory Flexibility Analysis is set forth in Appendix B.  X_-  ORDERING CLAUSES ă  X1- x 26. Therefore, IT IS ORDERED THAT, pursuant to Sections 4(i) and 303(r) of the  x@Communications Act of 1934, as amended, that Part 73 of the Commission' Rules and  xRegulations IS AMENDED as set forth in Appendix A, effective upon publication in the Federal  X -Register.! g yOe - xYԍ These rule changes relieve a restriction on the use of the active video portion of television transmissions, and thus can be made effective immediately. 5U.S.C.553(d)(1).  X - x 27. IT IS FURTHER ORDERED THAT the requests of A.C. Nielsen Company and Yes!  xZEntertainment Corporation for the Commission to allow television broadcast licensees to use their  xrespective overscan ancillary data transmission systems without prior Commission authorization ARE GRANTED to the extent indicated above, and in all other aspects ARE DENIED.  XK- x 28. IT IS FURTHER ORDERED THAT the requests of WavePhore, Inc. and Digideck, Inc.  xfor the Commission to allow television broadcast licensees to use their respective subvideo  xancillary data transmission systems without prior Commission authorization ARE GRANTED to the extent indicated above, and in all other aspects ARE DENIED.  X- x 29. IT IS FURTHER ORDERED THAT the Petition for Rule Making filed by Airtrax IS DISMISSED.  X- x 30. Further information on this matter may be obtained from Gordon Godfrey, Paul Gordon, or Jim McNally, (202) 4182120. x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhWilliam F. Caton x` `  hhActing Secretary" !,-(-(ZZ"  X-) APPENDIX A ă Title 47 of the Code of Federal Regulations Part 73 is amended as follows:  X- 1. 1. 1. a.(1)(a) i) a) I 1. 1. a.(1)(a) i) a)x1. The authority citation for Part 73 continues to read as follows: Authority: 47 U.S.C. 154, 303, 334.    X1-x2. Section 73.621 is amended by revising paragraph (f) to read as follows:  X - 73.621 Noncommercial educational TV stations.  X -*x*` ` * **  x=(f) Telecommunications Service on the Vertical Blanking Interval and in the Visual Signal. The  xprovisions governing VBI and visual signal telecommunications service in 73.646 are applicable to noncommercial educational TV stations.  XK-*x*` ` * **  X-  x3. Section 73.646 is amended by revising the heading and paragraphs (a), (b), (d), (e) and (f) to read as follows:  X- xf! 73.646 Telecommunications Service on the Vertical Blanking Interval and in the Visual  X-Signal.  xk(a) Telecommunications services permitted on the vertical blanking interval (VBI) and in the  xxvisual signal include the transmission of data, processed information, or any other communication in either a digital or analog mode.  x(b) Telecommunications service on the VBI and in the visual signal is of an ancillary nature and  xas such is an elective, subsidiary activity. No service guidelines, limitations, or performance  xstandards are applied to it. The kinds of service that may be provided include, but are not  xlimited to, teletext, paging, computer software and bulk data distribution, and aural messages. Such services may be provided on a broadcast, point-to-point, or point to multipoint basis.  X!-*x*` ` * **  xL(d) Television licensees are authorized to lease their VBI and visual signal telecommunications  xfacilities to outside parties. In all arrangements entered into with outside parties affecting  x/telecommunications service operation, the licensee or permittee must retain control over all  xmaterial transmitted in a broadcast mode via the station's facilities, with the right to reject any  xmaterial that it deems inappropriate or undesirable. The licensee or permittee is also responsible"#' !,-(-(ZZ%" for all aspects of technical operation involving such telecommunications services.  x(e) The grant or renewal of a TV station license or permit will not be furthered or promoted by  xproposed or past VBI or visual signal telecommunications service operation; the licensee must  xestablish that its broadcast operation serves the public interest wholly apart from such  xtelecommunications service activities. (Violation of rules applicable to VBI and visual signal  xtelecommunications services could, of course, reflect on a licensee's qualifications to hold its license or permit.)  xj(f) TV broadcast stations are authorized to transmit VBI and visual telecommunications service  x=signals during any time period, including portions of the day when normal programming is not broadcast. Such transmissions must be in accordance with the technical provisions of 73.682.  X -x4. Section 73.682 is amended by adding paragraph (a)(24) to read as follows:  X - 73.682 TV transmission standards. (a) Transmission standards.  XK-*x*` ` * **  x(24) Licensees and permittees of TV broadcast and low power TV stations may insert nonvideo data into the active video portion of their TV transmission, subject to certain conditions:  x=(i) The active video portion of the visual signal begins with line 22 and continues through the  xend of each field, except it does not include that portion of each line devoted to horizontal blanking. Figures 6 and 7 of 73.699 identify the numbered line referred to in this paragraph.  xj(ii) Inserted nonvideo data may be used for the purpose of transmitting a telecommunications  xservice in accordance with 73.646. In addition to a telecommunications service, nonvideo data  x<can be used to enhance the station's broadcast program service or for purposes related to station  xoperations. Signals relating to the operation of TV stations include, but are not limited to  xKprogram or source identification, relay of broadcast materials to other stations, remote cueing and order messages, and control and telemetry signals for the transmitting system.  xx(iii) A station may only use systems for inserting nonvideo information that have been approved in advance by the Commission. The criteria for advance approval of systems are as follows:  xk(A) The use of such signals shall not result in significant degradation to any portion of the  xzvisual, aural, or programrelated data (closed captioning) signals of the television broadcast station.  x(B) No increase in width of the television broadcast channel (6 MHz) is permitted. Emissions  xoutside the authorized television channel must not exceed the limitations given in 73.687(e).  xyInterference to reception of television service either of co-channel or adjacent channel stations"#' !,-(-(ZZ%" must not increase over that resulting from the transmission of programming without inserted data.  x(C) Where required, system receiving or decoding devices must meet the TV interface device provisions of Part 15, Subpart H of this chapter.  x(iv) No protection from interference of any kind will be afforded to reception of inserted nonvideo data.  x(v) Upon request by an authorized representative of the Commission, the licensee of a TV  xstation transmitting encoded programming must make available a receiving decoder to the Commission to carry out its regulatory responsibilities.  X -*x*` ` * ** x5. Section 73.1207 is amended by revising paragraph (b)(2) to read as follows:  X- 73.1207 Rebroadcasts.  Xb-*x*` ` * **  X4-(b)x*` ` * *  xM(2) Permission must be obtained from the originating station to rebroadcast any subsidiary  xcommunications transmitted by means of a multiplex subcarrier or telecommunications service on the vertical blanking interval or in the visual signal of a television signal.  X-*x*` ` * ** x6. Section 73.3613 is amended by revising paragraph (e) to read as follows:  XN- 73.3613 Filing of contracts.  X -*x*` ` * **  x.(e) The following contracts, agreements or understandings need not be filed but shall be kept  x[at the station and made available for inspection upon request by the FCC: contracts relating to  xthe sale of television broadcast time to "time brokers" for resale; subchannel leasing agreements  xfor Subsidiary Communications Authorization operation; franchise/leasing agreements for  xjoperation of telecommunications services on the TV vertical blanking interval and in the visual  xsignal; time sales contracts with the same sponsor for 4 or more hours per day, except where the  xlength of the events (such as athletic contests, musical programs and special events) broadcast pursuant to the contract is not under control of the station; and contracts with chief operators.  X#'-*x*` ` * **"#'!,-(-(ZZ%"  X-, mS XHh  HX ,) APPENDIX B ă  X- Final Regulatory Flexibility Act Analysis  X-I. Reason for Action  xIn recent years, several new methods of embedding data within television video signals have been  xdeveloped. These methods degrade television video by varying degrees, but only one of the  xmethods is by design intended to be perceived by viewers. The Commission is acting to provide  xyfor such services that do not significantly degrade the television picture because it believes its  xbroadcast licensees have the qualifications and experience to determine which of the new systems  xare maximally compatible with their primary broadcast obligations and may yet be used to  x provide additional information services to segments of the public. The action taken herein  xprovides an interim standard for the use of the abovedescribed data transmission technologies  xand is intended to benefit broadcasters and the generally small entities which are believed to be the most likely providers of ancillary data services.  Xy-II. Public Comments in Response to Initial Regulatory Flexibility  mSAnlysi mS Analysis mS  mSs  None.  XK-III. Description, Potential Impact and Number of Small Entities Affected  xMany broadcasters are considered to be small business entities. Thus, several thousand licensees  xof television broadcast facilities of all types (commercial and educational VHF and UHF stations,  xtranslators, boosters and Low Power TV stations) could benefit from the rule amendments herein  xadopted. Most providers of the data services envisioned herein are also expected to fall within  xthe classification of a "small business entity," at least initially. Their number is unknown, but may amount to anywhere from a few to several hundred over the next few years.  X|-IV. Recording, Record Keeping and Other Compliance Requirements No new recordkeeping or compliance requirements are imposed by the new rules.   X - xzV. Any Significant Alternative Minimizing Impact on Small Entities and Consistent with the  X -Stated Objectives None.