Report No. IN 98-59                      INTERNATIONAL ACTION           November 19, 1998


  COMMISSION IMPLEMENTS PUBLIC INTEREST OBLIGATIONS FOR DIRECT
                  BROADCAST SATELLITE SERVICE 
                        (MM DOCKET 93-25)

     Today the Commission has adopted rules implementing Section 25 of the Cable
Television Consumer Protection and Competition Act of 1992, which imposed certain public
interest obligations on direct broadcast satellite (DBS) providers.  The statute requires DBS
service providers to set aside a percentage of channel capacity for non-commercial
programming of an educational or informational nature.  

     In implementing these public interest obligations, the Commission has ensured real
benefits for the American consumer, while creating workable rules for industry.  In carrying
out Congress's mandate, the Commission balanced two very important goals -- providing  DBS
subscribers access to a greater diversity of noncommercial, educational programming, and
providing flexible rules for an industry that promises to provide significant competition to
cable television.  

     As a result, the FCC anticipates that a wide variety of programming could soon become
available on DBS systems --  distance learning programs produced for all ages,  major
university research projects shared nationwide,  and health applications developed for rural
America -- to name only a few.

         In implementing the statutory requirement, the Commission ruled that DBS
providers must set-aside four percent of their channel capacity exclusively for noncommercial
programming of an educational or informational nature, thereby expanding the programming
choices of millions of consumers.  

         The Commission interpreted the statutory prohibition on editorial control in
Section 335(b)(3) as prohibiting DBS licensees from editing program content or choosing
particular programming, but as allowing DBS providers to choose among qualified national
educational programming suppliers.  Thus, DBS providers must choose programmers from
among qualifying applicants for the reserved capacity.  However, in order to ensure that access
to non-commercial channels is available to the widest variety of national educational program
suppliers, the Commission limited the number of set-aside channels a single national
educational and informational programmer can use to one channel.  After all qualified entities
that have sought access have been offered access on a least one channel, a DBS provider is
permitted to offer a qualified programmer additional channels.

         As specifically required by statute, DBS licensees must also comply with the
political broadcasting rules of Section 312(a)(7) of the Communications Act, granting
candidates for federal office reasonable access to broadcasting stations, and 315 of the Act,
granting equal opportunities to candidates at the lowest unit charge.  

     Action by the Commission November 19, 1998, by Report and Order (FCC 98-307). 
Chairman Kennard, Comissioner Ness, with Chairman Kennard issuing a separate statement
and Commissioners Furchtgott-Roth, Powell and Tristani dissenting in part and issuing
separate statements.


                             - FCC -


     News Media contact: Rosemary Kimball at (202) 418-0500.
     International Bureau contacts:  J.T. Taylor at (202) 418-2113, or Rosalee Chiara at
(202) 418-0754.