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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                             )                              
                                                                            
     In the Matter of                        )   File Number EB-07-SE-351   
                                                                            
     Cox Communications, Inc.                )   NAL/Acct. No. 20093210001  
                                                                            
     Fairfax County, Virginia Cable System   )   FRN 0016034050             
                                                                            
                                             )                              


                                FORFEITURE ORDER

   Adopted: January 19, 2009 Released: January 19, 2009

   By the Chief, Enforcement Bureau:

   I. INTRODUCTION

    1. In this Forfeiture Order, we find that Cox Communications, Inc.
       ("Cox") willfully and repeatedly violated Section 76.1201  of the
       Commission's Rules ("Rules"). Specifically, Cox violated Section
       76.1201 by moving certain channels to a Switched Digital Video ("SDV")
       platform on October 16, 2007, in its Fairfax County, Virginia cable
       system, thereby preventing subscribers with CableCARD-equipped
       unidirectional digital cable products ("UDCPs") from using their
       navigation devices to access these channels. Further, in its
       deployment of SDV on October 16, 2007, Cox violated Section
       76.640(b)(1) by failing to provide a virtual channel table which
       conforms to the standards required under Sections 76.640(b)(1)(i) and
       76.640.(b)(1)(v). We conclude, pursuant to Section 503(b) of the
       Communications Act of 1934, as amended ("Act"), that Cox is liable for
       a forfeiture in the amount of twenty thousand dollars ($20,000). As
       discussed below, we further direct Cox to comply with the Bureau's
       Order to make appropriate refund of fees charged to customers affected
       by Cox's movement of linear channels to the SDV platform on November
       6, 2007.

   II. BACKGROUND

    2. Congress and the Commission have long recognized the importance of
       allowing consumers the freedom to purchase their own navigation
       devices from sources other than their cable operator, satellite
       provider, or other multichannel video programming distributor
       ("MVPD"). Thus, Congress adopted Section 629 of the Act, which
       requires the Commission to ensure the commercial availability of
       navigation devices. By separating the security and navigation
       functions of equipment used to receive MVPD programming, Congress
       hoped to spur competition and expand consumer choice. As the House
       Report accompanying Section 629 noted, "competition in the
       manufacturing and distribution of consumer devices has always led to
       innovation, lower prices and higher quality. Clearly, consumers will
       benefit from having more choices among telecommunications subscription
       services available through various distribution sources." At the same
       time, Congress recognized that MVPDs have "a valid interest, which the
       Commission should continue to protect, in system or signal security
       and in preventing theft of service."

    3. In its order proposing rules implementing Section 629, the Commission
       stated that its overarching goal was to assure competition in the
       availability of set-top boxes and other customer premises equipment.
       "As navigation devices are the means to deliver analog and digital
       communications, competition in the navigation equipment market is
       central toward encouraging innovation in equipment and services, and
       toward bringing more choice to a broader range of consumers at better
       prices." 

    4. Thus, in adopting Section 76.1201 of the Commission's Rules, which
       allows subscribers to acquire, attach, and use any compatible
       navigation device with an MVPD's system, subject to the proviso that
       such equipment not cause harmful interference or facilitate theft of
       service, the Commission likened its actions to the Carterfone
       principle it previously adopted in the telephone environment. In
       Carterfone, the Commission allowed consumers to attach legal devices
       to the telephone network unless that equipment would damage the
       network. "As a result of Carterfone and other Commission actions,
       ownership of telephones moved from the network operator to the
       consumer. As a result, the choice of features and functions
       incorporated into a telephone has increased substantially, while the
       cost of equipment has decreased." The Commission emphasized that
       "[f]ollowing the Carterfone principle adopted in the telephone context
       would allow subscribers the option of owning their own navigation
       devices and would facilitate the commercial availability of
       equipment." The Commission stated that "[t]he steps taken in this
       Report and Order, if implemented promptly and in good faith, should
       result in an evolution of the market for navigation devices so that
       they become generally and competitively available."

    5. The Commission recognized that its work on these issues was not
       complete and reiterated its commitment to monitoring developments
       regarding the compatibility of set-top boxes and digital televisions.
       Five years later, in the Plug and Play Order, the Commission took
       further steps to facilitate the direct connection of digital
       navigation devices (including commercially available UDCPs) to MVPD
       systems. Specifically, the Commission considered standards agreed upon
       by the cable and consumer electronics ("CE") industries and adopted a
       cable compatibility standard for integrated, unidirectional digital
       cable television receivers, as well as other UDCPs, to ensure the
       compatibility and commercial availability of UDCPs with cable
       television systems.

    6. Generally, the Plug and Play Order required MVPDs to support operation
       of UDCPs and ensure the utilization of such navigation devices in
       connection with their cable systems. In addition, the Commission
       required MVPDs to make available a security element separate from the
       basic navigation device. Under this framework, the Commission sought
       to enable unaffiliated manufacturers, retailers, and other vendors to
       commercially market UDCPs while allowing MVPDs to retail control over
       their system security.

    7. Consumers with UDCPs access MVPD programming by using a CableCARD
       leased from the cable operator. UDCPs, and certain related CE
       equipment, employ a standard interface that permits them to negotiate
       with the CableCARD. The CableCARD descrambles the MVPD's encoded
       digital signal and allows the subscriber to view the programming.
       Thus, commercially available UDCPs can be compatible with cable
       systems nationwide, while cable operators maintain their ability to
       secure programming content from unauthorized viewing. In theory, this
       arrangement allows consumers access to all of a cable operator's
       linear programming without the need of a separate set-top box leased
       from their cable operator, while protecting the cable operator from
       theft of its programming services.

    8. But recent events have demonstrated the limits of this theory.
       Traditionally, cable systems have used broadcast-type technologies
       that deliver all programs to all subscribers whether the subscribers
       view the programs or not. The programs not viewed nonetheless occupy
       system bandwidth (which prevents the use of that bandwidth for any
       other purpose). Many cable operators, however, have begun to test and
       deploy SDV technology in their cable systems. In an SDV system, a
       subset of programming is delivered in the traditional way to all
       subscribers whether they are viewing the programs or not. For those
       channels, the CableCARD-equipped UDCP will work as described above,
       allowing the subscriber to view the channels delivered in the
       traditional broadcast manner. The remaining channels are switched
       through the use of SDV network equipment located at a "hub" (where
       signals are converted and placed onto the "last mile" coaxial portion
       of the network). These switched channels do not occupy bandwidth, and
       are not available to subscribers until a subscriber tunes to that
       channel by sending a request, using a remote or program guide,
       upstream through the use of a set-top box to the hub. At the hub, the
       SDV equipment directly receives and processes set-top channel change
       requests for switched content and responds to that set-top with the
       frequency and program number where that content can be found. Once the
       hub receives the request, it immediately begins to transmit the
       channel. A customer who uses a CableCARD-equipped UDCP to receive
       programming must have additional equipment with the necessary upstream
       signaling capability to obtain the switched (i.e., bi-directional)
       channels. The UDCP cannot perform the bi-directional functions
       necessary to request that a channel be delivered via SDV. Nor can the
       CableCARD, which is designed only to provide the separate security
       element, provide the necessary interface needed to send the signal to
       the SDV server. Thus, in essence, in an SDV system, all subscribers
       must have a cable-operator supplied set-top box to view channels
       placed on the SDV platform.

    9. On November 8, 2007, the Spectrum Enforcement Division of the
       Enforcement Bureau ("Bureau") issued a Letter of Inquiry ("LOI") to
       Cox based on complaints that the company had moved certain cable
       channels that previously were accessible to subscribers using
       CableCARD-equipped UDCPs, such as digital cable ready television sets
       and digital video recorders, to an SDV platform. Specifically, the
       Enforcement Bureau received a notice that Cox had sent to its Fairfax
       County, Virginia CableCARD subscribers informing them that effective
       October 16, 2007, Cox would implement new technology that was not
       compatible with one-way digital cable ready devices requiring a
       CableCARD. According to the notice, customers that used
       CableCARD-equipped UDCPs to receive programming now would need a Cox
       digital set-top box to continue to receive all cable channels
       available to them prior to the change to the SDV platform. The LOI
       sought information on a number of issues, and asked the company to
       explain how its implementation of SDV was consistent with Section 629
       of the Act, Commission Rules implementing that statute, the 2002 MOU,
       and in particular, the policies and Rules established by the
       Commission in the Plug and Play Order.  The Bureau issued a
       Supplemental LOI to Cox on September 5, 2008 and a Second Supplemental
       LOI on October 3, 2008 to obtain additional information concerning the
       company's deployment of SDV.

   10. Cox responded to the LOI on December 17, 2007, and responded to the
       Supplemental LOI on September 19, 2008 and the Second Supplemental LOI
       on October 10, 2008. In its LOI Response, Cox admits that its Fairfax
       County, Virginia cable system deployed SDV on October 16, 2007, which
       resulted in the movement of the Latino tier and 14 linear channels to
       an SDV platform. Cox states that the deployment of SDV to its Fairfax
       County customers affected a small number of its customers using
       CableCARDs in one-way devices and that to mitigate the potential
       impact on these customers, Cox offered to transition them at little or
       no incremental cost to bi-directional equipment to ensure that they
       could continue accessing the switched channels, even though they had
       purchased a one-way CableCARD device. Specifically, at the time of its
       SDV deployment, Cox offered CableCARD-equipped UDCP subscribers a
       standard digital receiver for the same price as a CableCARD for the
       first year or a free Digital Video Recorder ("DVR") for three months.
       Both those offers have since expired.

   11. With respect to the technical requirements described above, Cox admits
       that it does not provide its subscribers using CableCARD-equipped
       UDCPs with a virtual channel table that includes programming on its
       SDV platform. Rather, "Cox's Fairfax, Virginia subscribers who utilize
       a Cox provided CableCARD with their UDCPs receive a `virtual channel
       table' covering all of the scrambled programming services viewable on
       their one-way devices." Cox explains that it "does not populate that
       channel table for two-way services that are not viewable with UDCP
       devices." Cox asserts that its actions are consistent with Section
       76.640 of the Commission's Rules because -- according to Cox -- those
       provisions only apply to unidirectional digital cable services. Cox
       further argues that populating the virtual channel table for two-way
       services would confuse consumers with UDCPs, as those devices are
       incapable of viewing two-way services.

   12. On October 15, 2008, after reviewing the evidence and Cox's arguments,
       the Bureau issued a Notice of Apparent Liability for Forfeiture and
       Order, finding that Cox apparently had willfully violated Sections
       76.1201 and 76.640(b)(1) of the Rules by moving certain channels to a
       SDV platform on October 16, 2007, thereby preventing subscribers with
       CableCARD-equipped UDCPs from using their navigation devices to access
       these channels and by failing to provide a virtual channel table which
       conforms to the standards required under Sections 76.640(b)(1)(i) and
       76.640.(b)(1)(v).

   13. Cox responded to the NAL on November 14, 2008, requesting cancellation
       of the Cox NAL. With respect to the NAL's finding of apparent
       liability, Cox makes four principal arguments. First, Cox asserts that
       the deployment of SDV did not violate the Commission's Rules or
       Section 629. Second, Cox asserts that importart public policy goals
       identified by Congress and the Commission weigh against the Bureau's
       "strained" interpretation of the Commission's Rules or Section 629.
       Third, Cox argues that a finding that the deployment of SDV violates
       the Commission's rules is inconsistent with Cox's First Amendment
       rights. Lastly, Cox argues that even if the Bureau finds that Cox
       violated the Commission's Rules, a forfeiture is inappropriate because
       Cox could not have ascertained with any certainty that its SDV
       deployment would violate the Rules.

   III. DISCUSSION

   A. Cox Willfully and Repeatedly Violated Section 76.1201 By Requiring
   Subscribers To Obtain A Set-Top Box To View Previously Accessible Linear
   Programming

   14. Section 76.1201 of the Rules prohibits an MVPD from "prevent[ing] the
       connection or use of navigation devices to or with its system" unless
       such devices would cause electronic or physical harm or allow the
       unauthorized receipt of service. Based on the record before us, we
       find that Cox willfully and repeatedly violated Section 76.1201 by
       moving certain linear channels to an SDV platform in its Fairfax
       County, Virginia Cable System on October 16, 2007. In so doing, Cox
       prevented subscribers with UDCPs, such as "digital cable ready"
       televisions and TiVo recorders, from viewing the switched linear
       channels that were already part of their subscription package without
       the use of a Cox-supplied set-top box, thus effectively impairing the
       use of those UDCPs within each affected cable system. Additionally,
       because a Cox-leased set-top box now is required to view many Cox
       channels, even on UDCP devices, Cox's migration of channels to an SDV
       platform has prevented the use of some functions available on those
       UDCPs, such as the capacity to view picture-in-picture and record
       content.

   15. Notwithstanding its effect on CableCARD users, Cox contends that the
       language of Section 76.1201 makes clear the "sole purpose and scope of
       the section" is to prohibit "an MVPD from `preven[ting] the connection
       or use of navigation devices to or with its system' unless such
       devices would cause electronic or physical harm or allow the
       unauthorized receipt of service. Cox argues that the deployment of SDV
       does not violate the rule because "[t]his rule does not prohibit or
       even mention SDV technology." Moreover, Cox argues, the rule does not
       entitle MVPD subscribers who use UDCPs to a static line-up - any of
       the channels delivered in a linear format may be dropped or moved at
       any time - and, in any event the channels that have been moved from a
       linear delivery format to be placed in the switched pool are still a
       part of a subscriber's subscription package. Cox asserts that even if
       the inability to watch a particular channel "impairs" the CableCard
       subscriber's use of a UDCP, Cox is not "prevent[ing] the connection or
       use" as required by the Rule.

   16. We do not agree that a violation of Section 76.1201 is not present
       here because the Rule does not expressly prohibit or even mention SDV
       technology. The plain language and policy goals of the Rule are clear
       - to protect cable subscribers' ability to view signals through the
       use of commercially available navigation devices offered in a
       competitive market. Cox's movement of linear channels that were
       previously accessible with a CableCARD-equipped UDCP to a switched
       digital platform that can only be accessed with a Cox-provided set-top
       box is clearly at odds with the Commission's Rules and policies
       designed to promote competition and consumer choice of navigation
       devices.

   17. While we recognize that the Plug and Play Order does not prohibit
       cable operators from developing and deploying new technology and
       services, we conclude that it does not permit Cox's actions here. By
       moving linear programming to an SDV platform, Cox prevents
       CableCARD-equipped UDCPs from receiving previously available channels
       and negates the usefulness of competitive commercially available
       navigation devices, in violation of the intent of Section 629 and the
       Commission's Rules. The Commission recognized that devices made
       pursuant to the standard adopted in the Plug and Play Order lacked
       upstream or bi-directional capabilities and therefore could not
       receive certain programming or services, but that recognition did not
       extend to services that consumers traditionally experienced as one-way
       services. At no point did the Commission authorize MVPDs to modify
       their transmission of linear programming such that UDCP devices could
       no longer receive such programming without a cable operator-provided
       set-top box. The notion that such channels are still a "part of a
       [subscriber's] subscription package" is disingenuous - since the
       subscriber cannot access the channels without a Cox-supplied set-top
       box. Such an outcome is fundamentally at odds with the policy and
       regulatory objectives of the Plug and Play Order.

   18. Section 76.1201 was adopted to achieve the statutory requirement of
       alternative sources of navigation devices and to ensure the commercial
       availability of navigation devices. The Plug and Play Order sought to
       provide further assurance of the commercial availability of navigation
       devices by requiring that cable operators support the operation of
       UDCP in connection with their cable systems. Cox's implementation of
       SDV in this case clearly negates the use of CableCARD-equipped UDCPs
       and fundamentally limits the commercial and competitive viability of
       those devices in cable systems where SDV has been deployed. In the
       instant case, customers who used CableCARD-equipped UDCPs are unable
       to receive more than a dozen linear channels after the deployment of
       SDV. As such, Cox is effectively preventing CableCARD-equipped UDCPs
       from receiving channels previously available and undermining the
       underlying policy goals of the Act and the Commission's Rules to
       ensure the commercial availability and use of navigation devices.
       Thus, we find Cox's October 16, 2007 migration of linear channels to
       an SDV platform in its Fairfax County, Virginia Cable System
       constitutes a willful and repeated violation of Section 76.1201 of the
       Rules.

   B. Cox Willfully Violated Section 76.640(b) by Failing to Comply with the
   Commission's Technical Rules Regarding the Provision of a Virtual Channel
   Table for SDV Programming

   19. Cox contends that the Cox NAL and Order's finding that the standard
       incorporated by reference in Section 76.640(b)(1)(i) applies to all
       services, including two-way services like SDV is wrong. According to
       Cox , Section 76.640(b)(1)(i) cannot be read to conclude that a cable
       operator should "support" a UDCP by populating the virtual channel
       table with information regarding programming that cannot be accessed
       on the UDCP, "thereby creating a source of customer confusion . . ."
       Cox further asserts that because the text of the rule is limited to
       one-way products, it necessarily only applies to one-way services.

   20. We disagree. On its face, Section 76.640 applies only to
       unidirectional products. Section 76.640(b)(1) makes no distinction
       between unidirectional and bi-directional services. Indeed, by its own
       terms, the standard incorporated by reference in Section
       76.640(b)(1)(i) applies to all services - there is no exception for
       bi-directional services. Therefore, Cox is required to describe
       programming on an SDV platform in the out-of-band forward data channel
       and populate the virtual channel table with all of its programming
       services.

   21. We also reject Cox's position that "there is no `false impression'
       created by the lack of SDV programming in the channel table" because a
       "UDCP subscriber (just like any other subscriber) purchases a tier of
       programming and may choose from various equipment to access that tier
       with varying degrees of functionality." Again, Cox misses the point -
       by moving linear programming to a SDV platform that can only be
       accessed with a Cox-provided set-top box, Cox has prevented the use of
       the CableCARD subscriber's use of a UDCP with respect to that
       programming, substantially diminishing the value of the subscriber's
       equipment without any reduction in subscriber fees. Moreover,
       requiring compliance with Section 76.640(b) does not conflict with
       Section 15.123 and provides a significant practical benefit. As we
       stated in the Cox NAL and Order, including the SDV programming in the
       virtual channel table would make it clear to Cox subscribers using
       CableCARD-equipped UDCPs that their cable operator is charging them
       for programming that they cannot see. We reiterate that if Cox
       believed it had a legitimate reason to exclude two-way programming
       from the virtual channel table provided to customers with
       CableCARD-equipped UDCPs, the company should have sought a waiver of
       the relevant rules. Accordingly, based on the record before us, we
       find that Cox willfully violated Section 76.640(b) by failing to
       provide a virtual channel table as required by Section 76.640(1)(b)(i)
       and 76.640(b)(1)(v) in its Fairfax County Cable System.

   C. Section 629 Supports the Bureau's Enforcement Action

   22. Cox argues that Section 629 of the Act provides an insufficient basis
       for an enforcement action. According to Cox, Section 629 focuses on
       the competitive availability of equipment and does not prohibit the
       deployment of SDV technology or otherwise restrict MVPDs' roll-out of
       new technologies or changes in channel line-ups. Indeed, Cox appears
       to argue that Section 629 is not applicable here at all.

   23. We disagree. As noted above, Section 629 of the Act requires the
       Commission to ensure the commercial availability of navigation
       devices. By separating the security and navigation functions of
       equipment used to receive MVPD programming, Congress sought to spur
       competition and expand consumer choice. As the House Report
       accompanying Section 629 noted, "competition in the manufacturing and
       distribution of consumer devices has always led to innovation, lower
       prices and higher quality. Clearly, consumers will benefit from having
       more choices among telecommunications subscription services available
       through various distribution sources." At the same time, Congress
       recognized that MVPDs have "a valid interest, which the Commission
       should continue to protect, in system or signal security and in
       preventing theft of service." The interests at stake here go beyond
       the protection in system or signal security, or in preventing theft of
       service. The Bureau's action are fully consistent with letter and
       spirit of Section 629.

   D. The NAL Does Not Weigh against Important Public Policy Goals

   24. Cox argues that the SDV technology offers important benefits to Cox
       customers by, for example, only Cox to add HD channels, achieve
       bandwidth efficency and offer higher broadband speeds. In this way,
       Cox argues that even its deployment is prohibited by the Commission's
       Rules, important public policy goals identified by Congress and the
       Commission weigh against the Bureau's findings.

   25. We reject Cox's contention. As we stated in the Cox NAL and Order, we
       recognize that the Plug and Play Order does not prohibit cable
       operators from developing and deploying new technology and services.
       Nonetheless, it does not permit Cox's actions here. In recognizing
       that cable operators are free to innovate and introduce new products
       and services, the Commission cautioned that such development and
       deployment of new products and services should not interfere with the
       functioning of consumer electronics equipment or the introduction of
       such equipment into the commercial market for navigation devices.
       Indeed, the Commission has continually emphasized that its navigation
       device rules are an important tool for promoting competition and
       bringing more choices to consumers. Yet the manner in which Cox has
       opted to administer its SDV programming effectively negates the
       concerted efforts and advances made thus far to achieve a competitive
       pro-consumer environment for such equipment.

   26. The deployment of SDV technology may provide public benefits. As we
       have explained previously, it is not Cox's deployment of SDV
       technology that violates Section 76.1201, but Cox's migration of
       existing linear programming to an SDV tier that we find inconsistent
       with the Commission's Rules.

   E. The NAL's Reading of Section 76.1201 Does Not Conflict with the First
   Amendment

   27. Cox's arguments that the NAL runs afoul of the First Amendment are
       insubstantial. There is no merit to Cox's contention that the NAL
       violates the First Amendment by "directly interfere[ing] with a cable
       operator's `exercise of editorial control and judgment'" which would
       cause it to favor certain programming over other programming. Simply
       put, Cox has no First Amendment right to undermine the development of
       a competitive market for navigation devices by preventing consumers
       from accessing linear programming in their existing programming
       packages with a CableCARD-equipped UDCP and instead requiring the
       consumer to obtain a Cox-provided set-top box. To the extent that the
       rules at issue here implicate the First Amendment at all, the
       requirements are content neutral and narrowly tailored to further the
       substantial federal interest in developing and maintaining a
       competitive market for navigation devices, an interest whose
       importance has been recognized by both Congress and the courts. 

   F. A Forfeiture Is Appropriate in the Instant Case

   28. Finally, we reject Cox's contention that even if it is found to have
       violated the Commission's Rules, a forfeiture is inappropriate because
       Cox could not have ascertained with any certainty that its SDV
       deployment would violate the rules. The Enforcement Bureau serves as
       the primary Commission entity responsible for enforcement of the Act,
       the Commission's rules, and Commission orders. The Bureau has
       delegated authority to issue orders taking appropriate action in
       response to complaints or investigations, including issues notices of
       apparent liability and related orders, and to decide matters unless
       they "present novel questions of law, fact or policy that cannot be
       resolved under existing precedents and guidelines." The questions
       presented here are consistent with the Commission's Plug and Play
       Order, the Rules found in Section 76.1201 implementing that order, and
       the technical rules of Section 76.640(b). Moreover, the Bureau's
       action is fully consistent with Section 503 of the Act and the
       Commission's Rules of practice and procedure. As such, a forfeiture is
       appropriate.

   G. Forfeiture Calculation

   29. Under Section 503(b)(1)(B) of the Act, any person who is determined by
       the Commission to have willfully or repeatedly failed to comply with
       any provision of the Act or any rule, regulation, or order issued by
       the Commission shall be liable to the United States for a forfeiture
       penalty. To impose such a forfeiture penalty, the Commission must
       issue a notice of apparent liability and the person against whom such
       notice has been issued must have an opportunity to show, in writing,
       why no such forfeiture penalty should be imposed. The Commission will
       then issue a forfeiture if it finds by a preponderance of the evidence
       that the person has violated the Act or a Commission rule. We conclude
       that Cox is liable for a forfeiture in the amount of twenty thousand
       dollars ($20,000) for its willful violation of Sections 76.1201,
       76.640(b)(1)(i), and 76.640(b)(1)(v) of the Rules.

   30. Under Section 503(b)(2)(A) and Section 1.80(b)(1) of the Commission's
       Rules, we may assess a cable television operator a forfeiture of up to
       $32,000 for each violation or each day of a continuing violation, up
       to a statutory maximum forfeiture of $325,000 for any single
       continuing violation. In exercising such authority, we are required to
       take into account "the nature, circumstances, extent, and gravity of
       the violation and, with respect to the violator, the degree of
       culpability, any history of prior offenses, ability to pay, and such
       other matters as justice may require."

   31. The Commission's Forfeiture Policy Statement and Section 1.80 of the
       Rules do not establish a specific base forfeiture for violation of
       Section 76.1201. In a similar case, the Commission proposed
       forfeitures for each cable system involved in the violation. Thus, we
       establish a base forfeiture amount for each cable system in which
       linear programming has been moved to an SDV platform, thereby
       impairing customers' use of navigation devices such as UDCPs to view
       such programming. As noted above, this case involves one of Cox's
       cable systems - Fairfax County, Virginia Cable System.

   32. As we stated in the Cox NAL and Order, one analogous violation for
       which the Commission has already established a base forfeiture is
       violation of the cable broadcast signal carriage rule, which has a
       base forfeiture of $7,500. Given the number of channels involved and
       the effect of actions like those here on the Commission's policy
       objectives, however, we conclude that a more significant penalty is
       appropriate. We conclude that $10,000 per cable system in which linear
       programming is moved to an SDV platform is an appropriate base
       forfeiture for violation of Section 76.1201. In this case, Cox moved
       linear programming to an SDV platform in one cable system, Fairfax
       County, Virginia Cable System. Accordingly, we conclude that Cox is
       liable for a $10,000 forfeiture for its willful violation of Section
       76.1201 of the Rules.

   33. Additionally, we conclude that Cox is liable for a forfeiture in the
       amount of $5,000 for its willful violation of Section 76.640(b)(1)(i)
       of the Rules and $5,000 for its willful violation of Section
       76.640(b)(1)(v) of the Rules. The Commission's Forfeiture Policy
       Statement and Section 1.80 of the Rules do not establish a specific
       base forfeiture for violation of Section 76.640(b). However, we note
       that Section 1.80(b) establishes a base forfeiture of $5,000 for
       unauthorized discontinuance of service. We find that the actions of
       Cox effectively discontinue a portion of the services for each of its
       CableCARD subscribers who choose to view content via a UDCP. We also
       conclude that the amount of the forfeiture for each violation is
       commensurate with the harm imposed upon cable subscribers. Because the
       violation of Section 76.640(b)(1) coincides with the migration of
       linear channels to an SDV platform, we will also apply this base
       forfeiture amount of $5,000 for each technical violation of Section
       76.640(b)(1) on a per cable system basis. Accordingly, we conclude
       that Cox is liable for a forfeiture in the amount of $10,000 for its
       willful violation of Sections 76.640(b)(1)(i) and 76.640(b)(1)(v) in
       its Fairfax County, Virginia Cable System.

   34. Cox's implementation of SDV in its Fairfax County, Virginia Cable
       System, in which previously available linear programming was moved to
       an SDV platform, resulted in the removal of channel information and
       the loss of access to those switched channels for its subscribers
       using CableCARD-equipped UDCPs. Moreover, such implementation of SDV,
       without having in place standards to ensure bi-directional
       compatibility of cable television systems and CE equipment,
       effectively harms the Commission's policies to move navigation devices
       toward a fully competitive market. We note that Cox could have sought
       a waiver of these rules under Section 76.1207, but failed to do so.
       Accordingly, we conclude that Cox is liable for a total forfeiture
       amount of twenty thousand ($20,000) for its willful violation of
       Sections 76.1201 ($10,000), 76.640(b)(1)(i) ($5,000), and
       76.640(b)(1)(v) ($5,000) of the Commission's Rules.

   H. Cox Must Issue Refunds to Customers Harmed by its SDV Implementation

   35. As we noted in the Cox NAL andOrder, Cox's implementation of SDV has
       harmed its customers who opted to purchase and use television
       receiving equipment that does not require a cable operator-supplied
       set-top device to receive cable service. Many consumers purchased
       expensive UDCPs, such as "cable ready" televisions and digital video
       recorders like TiVos, based on the reasonable assumption that no
       set-top box would be necessary to receive linear programming. In
       effect, Cox's movement of linear programming to an SDV platform has
       substantially diminished the value of its customers' UDCP devices.
       Moreover, CableCARD customers affected by Cox's SDV deployment now
       must pay higher prices to lease set-top boxes than they would have
       paid for CableCARDs. Those CableCARD customers who chose not to obtain
       the Cox-supplied set-top boxes after the implementation of SDV
       nevertheless have paid the same monthly rate for their cable service
       even though they can view significantly fewer channels. Most
       importantly, however, Cox's movement of linear programming to an SDV
       platform set back the shared goal of Congress and the Commission of a
       competitive market for commercially available navigation devices, as
       required by Section 629 and the Commission's Rules.

   36. In calculating the harm to Cox's customers who use UDCP equipment, we
       recognize that Cox has made offers to its CableCARD customers to
       offset the costs of obtaining a set-top box. While Cox's offer to
       provide a free set-top box to its CableCARD customers may provide
       temporary relief to its customers, it is not a permanent solution -
       the benefits promised by Cox are, at best, limited in duration. Cox's
       offer does not address the critical problem concerning the company's
       interference with its customers' use of independently obtained UDCPs,
       i.e., the loss of service to the extent customers can view fewer
       channels than they did before the movement of linear programming to an
       SDV platform, nor does it address the loss of functionality of the
       device in question.

   37. In the Cox NAL and Order, we ordered Cox, within ninety (90) days of
       the Cox NAL and Order, to issue refunds to CableCARD customers
       affected by the October 16, 2007 implementation of SDV in its Fairfax
       County, Virginia Cable System. In addition, within thirty (30) days of
       the release of the Cox NAL and Order, we required Cox to submit to the
       Enforcement Bureau an explanation of the method the company planned to
       use to determine the appropriate amount of refunds, the number of
       customers receiving refunds, the total value of such refunds, and the
       planned timing of such refunds. Cox failed to comply with the Bureau's
       Order and the Bureau is separately addressing that violation of the
       Commission's Rules.

   38. Thus, we order Cox, within ninety (90) days of this Forfeiture Order,
       to issue refunds to CableCARD customers affected by the October 16,
       2007 implementation of SDV in its Fairfax County, Virginia Cable
       System. Specifically, Cox must provide refunds as follows:

    a. For former CableCARD customers that began to lease any set-top boxes
       from Cox following notice of a possible SDV deployment, Cox must
       refund the difference in cost (if any) between the charges for the Cox
       set-top boxes and the CableCARD previously leased by such customers;
       and

    b. For CableCARD customers that kept their CableCARDs even after notice
       of the SDV deployment, Cox must refund the customers' subscriber fees
       based on the diminished value of their service following the movement
       of linear programming to an SDV platform by $0.10 per month, per
       channel moved and reduce their rates on a going-forward basis
       accordingly.

   IV. ordering clauses

   39. Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the
       Act, Section 1.80 of the Rules, and the authority delegated by
       Sections 0.111 and 0.311 of the Commission's Rules, Cox
       Communications, Inc., Fairfax County, Virginia Cable System IS LIABLE
       FOR A FORFEITURE in the amount of twenty thousand dollars ($20,000)
       for willful violation of Sections 76.1201, 76.640(b)(1)(i) and
       76.640(b)(1)(v) of the Rules.

   40. IT IS FURTHER ORDERED that, pursuant to sections 1, 4(i), 4(j), 601,
       and 629 of the Communications Act of 1934, as amended 47 U.S.C. S:151,
       154(i), 154(j), 521, 549, Cox communications, Inc. must take the steps
       set forth in paragraph 39 of this Forfeiture Order.

   41. Payment of the forfeiture must be made by check or similar instrument,
       payable to the order of the Federal Communications Commission within
       thirty (30) days of the release of this Order. The payment must
       include the NAL/Account Number and FRN Number referenced above.
       Payment by check or money order may be mailed to Federal
       Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000.
       Payment by overnight mail may be sent to U.S. Bank - Government
       Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO
       63101. Payment by wire transfer may be made to ABA Number 021030004,
       receiving bank TREAS/NYC, and account number 27000001. For payment by
       credit card, an FCC Form 159 (Remittance Advice) must be submitted.
       When completing the FCC Form 159, enter the NAL/Account number in
       block number 23A (call sign/other ID), and enter the letters "FORF" in
       block number 24A (payment type code). Requests for full payment under
       an installment plan should be sent to: Chief Financial Officer --
       Financial Operations, 445 12th Street, S.W., Room 1-A625, Washington,
       D.C. 20554. Please contact the Financial Operations Group Help Desk at
       1-877-480-3201 or Email: ARINQUIRIES@fcc.gov with any questions
       regarding payment procedures. Cox will also send electronic
       notification on the date said payment is made to JoAnn.Lucanik@fcc.gov
       and Kevin.Pittman@fcc.gov.

   42. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability
       for Forfeiture  and Order shall be sent by first class mail and
       certified mail return receipt requested to counsel for Cox
       Communications, Inc.: Kathleen Q. Abernathy, Esq., David H. Solomon,
       Esq., and Natalie G. Roisman, Esq., Wilkinson Barker Knauer, LLP, 2300
       N Street, N.W., Suite 700, Washington, D.C. 20037.

   FEDERAL COMMUNICATIONS COMMISSION

   Kris Anne Monteith

   Chief, Enforcement Bureau

   47 C.F.R. S: 76.1201.

   Navigation devices refer to "converter boxes, interactive communications
   equipment, and other equipment used by consumers to access multichannel
   video programming and other services offered over multichannel video
   programming systems." 47 C.F.R. S: 76.1200(c). UDCPs refer to devices that
   have the ability to receive encrypted digital cable programming, but do
   not have any upstream, or bidirectional, capabilities. For example, such
   devices cannot support two-way services such as Electronic Programming
   Guides (EPGs), Voice on Demand (VOD), Pay Per View (PPV), and other
   interactive capabilities. See Implementation of Section 304 of the
   Telecommunications Act of 1996, Commercial Availability of Navigation
   Devices, Compatibility Between Cable Systems and Consumer Electronics
   Equipment, Third Further Notice of Proposed Rulemaking, 22 FCC Rcd 12024,
   12025-26 (2007) ("Third Further Notice of Proposed Rulemaking"). See also
   47 C.F.R. S: 15.123(a).

   47 U.S.C. S: 503(b). This Forfeiture Order is issued through the
   coordinated effort of the Commission's Enforcement Bureau and Media
   Bureau. See 47 C.F.R. S:S: 0.61(f)(5), 0.111(15).

   47 U.S.C. S: 549. Section 629 was adopted as part of the
   Telecommunications Act of 1996. Pub. L. No. 104-104, 110 Stat. 56 (1996).

   H.R. Rep. No. 104-204, at 112 (1995).

   Id.

   Implementation of Section 304 of the Telecommunications Act of 1996,
   Commercial Availability of Devices, Notice of Proposed Rulemaking, 12 FCC
   Rcd 5639, 5641 (1997).

   See Implementation of Section 304 of the Telecommunications Act of 1996,
   Commercial Availability of Navigation Devices, Report and Order, 13 FCC
   Rcd 14775, 14776, para. 2 (1998) ("Navigation Devices Order").

   47 C.F.R. S: 76.1201.

   See Navigation Devices Order, 13 FCC Rcd at 14478 (citing Use of the
   Carterfone Device in Message Toll Service, Decision, 13 FCC 2d 420, 424-25
   (1968), recon. denied, 14 FCC 2d 571(1968)).

   Navigation Devices Order Id. at 14780, para. 11.

   Id. at 14786.

   Id. The Commission recognized that "the parallel to the telephone has
   limitations" and specifically stated that the rules it adopted in
   implementing Section 629 of the Act sought to accommodate the differences
   from the telephone model.

   Id. at 14781.

   Implementation of Section 304 of the Telecommunications Act of 1996,
   Commercial Availability of Navigation Devices, Compatibility Between Cable
   Systems and Consumer Electronics Equipment, Second Report and Order and
   Second Further Notice of Proposed Rulemaking, 18 FCC Rcd 20885 (2003)
   ("Plug and Play Order"). "The term `plug and play' refers to a device's
   ability to plug into a cable system and receive digital cable programming
   without a cable-operator provided set-top box." Third Further Notice of
   Proposed Rulemaking, 22 FCC Rcd at n.9.

   See December 2002 Memorandum of Understanding Among Cable MSOs and
   Consumer Electronics Manufacturers. Id. at note 3 (citing Letter from Carl
   E. Vogel, President and CEO, Charter Communications, et al., to Michael K.
   Powell, Chairman, FCC (Dec. 19, 2002) ("2002 MOU")). The MOU "reflects a
   compromise agreement among the parties [cable and consumer electronics
   industries] on a specification that will permit the manufacture of
   unidirectional cable television receivers that include [the same] ...
   navigation functionality [that currently exists for set-top boxes]."

   In most cases, the MVPDs have employed CableCARDs as their
   separate-security solution to enable non-integrated conditional access.
   But see Cablevision Systems Corporation's Request for Waiver of Section
   76.1204(a)(1) of the Commission's Rules, Memorandum Opinion and Order, 22
   FCC Rcd 220, 221-222 (2007). The Commission granted Cablevision a waiver
   of the ban on cable operator deployment of set-top boxes with integrated
   security to allow Cablevision to use a Smart-Card-based separate-security
   solution, which is CableCARD-compatible with the use of an adaptor.

   The term "linear programming" is generally understood to refer to video
   programming that is prescheduled by the programming provider. Cf. 47
   U.S.C. S: 522(12) (defining "interactive on-demand services" to exclude
   "services providing video programming prescheduled by the programming
   provider").

   Third Further Notice of Proposed Rulemaking, 22 FCC Rcd at 12025 P:P:3-4.

   See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   Enforcement Bureau, Federal Communications Commission to James A. Hatcher,
   Esq., Senior Vice President, Legal and Regulatory Affairs, Cox
   Communications, Inc. (Nov. 8, 2007) ("LOI").

   Id. at Exhibit A. The Commission has received several complaints from Cox
   customers about SDV deployment in Cox's Fairfax County cable system. We
   have provided relevant excerpts and identifying information for those
   complaints in Attachment A. Because these complaints were not filed in a
   public Commission docket, we will treat the complainants' names as
   confidential for privacy reasons.

   The LOI described an investigation into possible violations of Section 629
   of the Act, 47 U.S.C. S: 549, and Sections 76.640, 76.980(f), 76.984,
   76.1204, 76.1206, and 76.1603 of the Commission's rules, 47 C.F.R. S:S:
   76.640, 76.980(f), 76.984, 76.1204, 76.1206, and 76.1603.

   See Plug and Play Order, 18 FCC Rcd at 20885 n.3.

   Id. at  20885.

   See Letter from JoAnn Lucanik, Deputy Chief, Spectrum Enforcement
   Division, Enforcement Bureau, Federal Communications Commission to Gary S.
   Lutzker, Esq., Dow Lohnes PLLC, Counsel for Cox Communications, Inc.,
   (Sept. 5, 2008) ("Supplemental LOI"). The Supplemental LOI noted that the
   investigation now included possible violations by Cox of Sections 76.1201
   and 76.1202 of the Rules. 47 C.F.R. S:S: 76.1201, 76.1202. Supplemental
   LOI at n. 3.

   See Letter from JoAnn Lucanik, Deputy Chief, Spectrum Enforcement
   Division, Enforcement Bureau, Federal Communications Commission to Gary S.
   Lutzker, Esq., Dow Lohnes PLLC, Counsel for Cox Communications, Inc.,
   (Oct. 3, 2008) ("Second Supplemental LOI"). This LOI sought information
   relating to possible violations of Section 76.640 of the Commission's
   Rules.

   See LOI Response. The response was timely filed based on the Bureau's
   approval of Cox's request for an extension of time to respond.

   See Letter from Gary S. Lutzker, Esq., Dow Lohnes PLLC, Counsel for Cox
   Communications, Inc. to Marlene H. Dortch, Secretary, Federal
   Communications Commission (Sept. 19, 2008) ("Supplemental LOI Response").

   See Letter from J. Christopher Redding, Esq., Dow Lohnes PLLC, Counsel for
   Cox Communications, Inc. to Marlene H. Dortch, Secretary, Federal
   Communications Commission at 3 (Oct. 10, 2008) ("Second Supplemental LOI
   Response").

   See LOI Response at 9, 11, and Exhibit 3. Cox states that it provided
   advanced notice of its switched digital implementation to its customers in
   the August 2007 billing inserts, which commenced on July 27, 2007 and
   continued through August 27, 2007, and also mailed a second notice to its
   CableCARD customers on September 14, 2007. In addition, Cox states that it
   provided advanced written notice to the Fairfax County local franchise
   authority ("LFA") on September 14, 2007. According to these notices, in
   addition to pay-per-view channels, the Paquete Latino Tier and 14 networks
   would no longer be available to Cox's CableCARD-equipped UDCP customers
   without a Cox digital set-top box. Also, the notice stated that new
   channels added to the Cox Digital Cable and HD channel lineup will not be
   available to customers with CableCARD-equipped UDCPs without the use of a
   Cox set-top box.

   Cox reports that its Fairfax County, Virginia cable system served 241,128
   subscribers as of November 9, 2007; and that it had issued 2002 CableCARDs
   in the Fairfax County system as of October 31, 2007. See Supplemental LOI
   Response at 2.

   LOI Response at 4.

   Id. at Exhibit 3.

   Id.

   Second Supplemental LOI Response at 3.

   Id.

   Id.

   Id.

   Cox Communications, Inc., Fairfax County, Virginia Cable System, Notice of
   Apparent Liability for Forfeiture and Order, 23 FCC Rcd 14944 (Enf. Bur.
   2008) ("Cox NAL and Order").

   Cox Communications, Inc., Fairfax County, Virginia Cable System, Statement
   in Response to Notices of Apparent Liability and Order, File No.
   EB-07-SE-352 (filed Nov. 14, 2008) (Cox NAL Response). Together with its
   NAL Response, Cox also filed a Request for Stay and Petition for
   Reconsideration. Cox's Request for Stay and Petition for Reconsideration
   will be addressed in subsequent orders.

   Cox Response at 4-11.

   Id. at 12-16.

   Id. at 16-18

   Id. at 18-19.

   47 C.F.R. S: 76.1201.

   See 47 U.S.C. S: 312(f)(1) & (2) (defining a "willful" violation as the
   "conscious and deliberate commission or omission of such act, irrespective
   of any intent to violate any provision of this Act or any rule or
   regulation of the Commission," and defining "repeated" as "the commission
   or omission of such act more than once."). The definition of willful and
   the definition of repeated apply to violations for which forfeitures are
   assessed under Section 503(b) of the Act. See Southern California
   Broadcasting Co., Memorandum Opinion and Order, 6 FCC Rcd 4387 (1991),
   recon. denied 7 FCC Rcd 3454 (1992).

   As enacted, Section 624A of the Act expressly mandates that the Commission
   "minimize interference with or nullification of the special functions of
   subscriber's television receivers or video cassette recorders," and thus
   ensure the full compatibility of these devices with the cable system. 47
   U.S.C. S: 544a(c)(1)(B).

   Cox Response at 5.

   Id.

   Id. at 7.

   See 47 U.S.C. S: 549; 47 C.F.R. S: 76.1201.

   "Due to the unidirectional nature of this receiver specification, an
   external navigation device would still be needed to receive advanced
   features such as cable operator-enhanced electronic programming guides
   (`EPGs'), impulse pay per view (`IPPV') or video on demand (`VOD')." Plug
   and Play Order, 18 FCC Rcd at 20890, P:7. See also Third Further Notice of
   Proposed Rulemaking, 22 FCC Rcd at 12025-26, P: 4 ("Devices made pursuant
   to this standard have the ability to receive encrypted digital cable
   programming, but do not have any upstream, or bidirectional, capabilities
   (i.e., consumer electronics manufacturers can only make unidirectional
   devices under the technical standard adopted in the Plug and Play Order).
   For example, such devices cannot support two-way services such as EPGs,
   VOD, PPV, and other ITV [Interactive Television] capabilities.").

   The Bureau also notes Cox's claim that "for UDCP customers and all other
   cable subscribers, packages of channels are purchased at prices that
   accurately reflect the value proposition for a specific tier. While the
   package content necessarily varies over time, the overall value
   proposition remains constant." Cox Response at 7. Complaints filed with
   the Commission indicate that, at least some of, Cox's subscribers believe
   otherwise.

   See Navigation Devices Order, 13 FCC Rcd at 14786.

   According to the Cox notices announcing the deployment that ultimately
   took place on October 16, 2007, in addition to pay-per-view channels, the
   Paquete Latino Tier and 14 networks would no longer be available to Cox's
   CableCARD-equipped UDCP customers without a Cox digital set-top box. Also,
   the notice stated that new channels added to the Cox Digital Cable and HD
   channel lineup will not be available to customers with CableCARD-equipped
   UDCPs without the use of a Cox set-top box.

   Cox Response at 8-9.

   Id.

   See 47 C.F.R. S:76.640 ("Support for unidirectional digital cable products
   on digital cable systems.").

   Id. at S: 76.640(b)(1)(i) (incorporating by reference SCTE 40 2003,
   Section 5.5, which states that "[w]hen one or more scrambled services are
   offered on the cable system, System and Service Information for all
   services (both scrambled and in-the-clear) shall be carried in an
   out-of-band Forward Data Channel...").

   Cox Response at 9.

   Cox NAL and Order at paras. 18-25.

   47 C.F.R. S: 76.1207.

   Cox Response at 10.

   Id.

   Id. ("the scope of section 629 does not extend to material carried on
   cable systems via equipment that is subject to this statutory provision").

   47 U.S.C. S: 549. Section 629 was adopted as part of the
   Telecommunications Act of 1996. Pub. L. No. 104-104, 110 Stat. 56 (1996).

   H.R. Rep. No. 104-204, at 112 (1995).

   Id.

   Cox Response at 12-13.

   Id.

   2005 Deferral Order, 20 FCC Rcd at 6809-10.

   Id.

   Cox Response at 17.

   See 47 U.S.C. S: 549; Comcast Corp. v. FCC, 536 F.3d 763 (D.C. Cir. 2008);
   Charter Communications, Inc. v. FCC, 460 F.3d 31 (D.C. Cir. 2006).

   Cox Response at 18-19.

   47 C.F.R. S: 0.111.

   47 C.F.R. S: 0.111(17).

   47 C.F.R. S: 0.311(a)(3).

   47 U.S.C. S: 503

   47 C.F.R. S: 1.80.

   47 U.S.C. S: 503(b)(1)(B); 47 C.F.R. S: 1.80(a)(1).

   47 U.S.C. S: 503(b); 47 C.F.R. S: 1.80(f).

   See, e.g., SBC Communications, Inc., Forfeiture Order, 17 FCC Rcd 7589,
   7591 (2002).

   47 U.S.C. S: 503(b)(2)(A); 47 C.F.R. S: 1.80(b)(1). The Commission has
   repeatedly amended Section 1.80(b)(1) of the Rules to increase the maximum
   forfeiture amounts, in accordance with the inflation adjustment
   requirements contained in the Debt Collection Improvement Act of 1996, 28
   U.S.C. S: 2461. Most recently, the Commission raised the maximum
   forfeitures applicable to cable operators, broadcast licensees, and
   applicants for such authority from $32,500 to $37,500 for a single
   violation, and from $325,000 to $375,000 for continuing violation. See
   Inflation Adjustment of Maximum Forfeiture Penalties, 73 Fed. Reg. 44663,
   44664 (July 31, 2008). The new forfeiture limits took effect September 2,
   2008, apply to violations occurring after that date, and accordingly do
   not apply to this case.

   47 U.S.C. S: 503(b)(2)(E). See also 47 C.F.R. S: 1.80(b)(4), Note to
   paragraph (b)(4): Section II. Adjustment Criteria for Section 503
   Forfeitures. We consider Cox's apparent violations of Section 76.1201 to
   have begun on the date its cable system moved previously available linear
   programming to an SDV platform. Cox's apparent violations continue each
   day that such programming remains unavailable to customers using
   CableCARD-equipped UDCPs.

   See The Commission's Forfeiture Policy Statement and Amendment of Section
   1.80 of the Rules to Incorporate the Forfeiture Guidelines, Report and
   Order, 12 FCC Rcd 17087, 17115 (1997) ("Forfeiture Policy Statement"),
   recon. denied, 15 FCC Rcd 303 (1999).

   The Bureau has substantial discretion in proposing forfeitures. See, e.g.,
   InPhonic, Inc., Order of Forfeiture and Further Notice of Apparent
   Liability, 22 FCC Rcd 8689, 8699 (2007); Globcom, Inc. d/b/a Globcom
   Global Commun., Order of Forfeiture, 21 FCC Rcd 4710, 4723-24 (2006). We
   may apply the base forfeiture amounts described in the Forfeiture Policy
   Statement and the Commission's rules, or we may depart from them
   altogether as the circumstances demand. See 47 C.F.R. S: 1.80(b)(4) ("The
   Commission and its staff may use these guidelines in particular cases[,
   and] retain the discretion to issue a higher or lower forfeiture than
   provided in the guidelines, to issue no forfeiture at all, or to apply
   alternative or additional sanctions as permitted by the statute.")
   (emphasis added).

   See, e.g., Cablevision Systems Corporation, Forfeiture Order, 15 FCC Rcd
   24298 (2000) ("Cablevision Forfeiture Order") (imposing forfeitures
   against Cablevision on a cable system basis). SDV is installed at separate
   hubs throughout the cable system, but generally the operator will
   implement the technology on a system-wide basis.

   47 C.F.R. S: 1.80(b)(4)(Note). See also Cablevision Forfeiture Order, 15
   FCC Rcd at 24298.

   47 C.F.R. S: 1.80(b)(4)(Note). Violation of the broadcast signal carriage
   rule is also analogous to Cox's failure to provide the SDV programming
   information in its virtual channel table. In contrast with violations of
   Section 76.1201, however, violations of Section 76.640(b)(1) do not affect
   the viewability of actual programming. Therefore, it is appropriate to
   impose a somewhat lesser penalty for such technical violations.

   Under Section 629(c) of the Act, 47 U.S.C. S: 549(c) and Section 76.1207
   of the Commission's Rules, 47 C.F.R. S: 76.1207, the Commission may waive
   rules adopted under Section 629(a) of the Act for a limited time "upon an
   appropriate showing by a provider of multichannel video programming and
   other services offered over multichannel video programming systems, or an
   equipment provider, that such waiver is necessary to assist the
   development or introduction of a new or improved multichannel video
   programming or other service offered over multichannel video programming
   systems, technology, or products. See 47 U.S.C. S: 549(c), 47 C.F.R. S:
   76.1207.

   Cox NAL and Order at 39.

   $0.10 is our best estimate of the relevant license fee per channel. We
   note that Cox did not provide an explanation of the method the company
   planned to use to determine the appropriate amount of refunds as required
   by the Cox NAL and Order. The Bureau will reconsider the appropriate
   license fee per channel should Cox submit a petition for reconsideration
   that includes evidence that the license fees of the affected channels are
   lower than $0.10 per month.

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   Federal Communications Commission DA 09-122

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   Federal Communications Commission DA 09-122