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National Cable Television Ass'n v. Federal Communications Commission

Citations: 33 F.3d 66; 308 U.S. App. D.C. 221Docket: Nos. 91-1649, 91-1656, 92-1068, 92-1071, 92-1072, 92-1529, 92-1538 and 91-1577

Court: Court of Appeals for the D.C. Circuit; August 26, 1994; Federal Appellate Court

Narrative Opinion Summary

The judicial opinion involves petitions by cable industry associations and local franchising authorities challenging the FCC's decision that telephone companies providing video dialtone services and their customer-programmers are exempt from the cable franchise requirement under Section 621(b)(1) of the Cable Communications Policy Act of 1984. The petitioners contended that the statute's language and legislative intent required these companies to be classified as 'cable operators' necessitating a franchise. The FCC argued that video dialtone services are not 'cable services' and that telephone companies are not 'cable operators.' The court affirmed the FCC's conclusion, emphasizing that transmission requires active involvement in video programming selection and distribution, which telephone companies do not engage in. Additionally, video dialtone facilities were not deemed 'cable systems,' avoiding redundant regulation. The court upheld the distinction that customer-programmers are not cable operators due to the lack of control over the transmission facilities. Consequently, the court denied the petitions, supporting the FCC's interpretation that the Cable Act does not mandate a franchise for video dialtone services.

Legal Issues Addressed

Customer-Programmers and Cable Operator Status

Application: The decision confirmed that customer-programmers using video dialtone services are not considered cable operators since they do not own or control the broadband facilities.

Reasoning: Additionally, the FCC concludes that customer-programmers under a common carrier video dialtone service do not qualify as 'cable operators' since they lack ownership or control over the broadband facilities.

Definition of 'Cable Operator' and 'Cable System'

Application: The court determined that telephone companies are not 'cable operators' and video dialtone facilities do not constitute a 'cable system' under the Cable Act.

Reasoning: The FCC determined that a telephone company providing video dialtone service does not qualify as a 'cable operator' under the Cable Act, which prohibits cable service provision without a franchise.

Exemption for Common Carrier Facilities

Application: The FCC's interpretation that common carrier facilities are exempt from being classified as a cable system was upheld to avoid redundant regulation.

Reasoning: The Commission reasoned that classifying video dialtone facilities as cable systems would result in unnecessary duplicative regulation.

Franchise Requirement Under Cable Communications Policy Act

Application: The court held that telephone companies providing video dialtone services are not required to obtain a cable franchise under Section 621(b)(1) of the Cable Communications Policy Act of 1984.

Reasoning: The Commission concluded that telephone companies providing video dialtone service and their customer-programmers are not required to obtain a cable franchise under Section 621(b) of the Cable Act.

Transmission of Video Programming

Application: The court upheld the FCC's interpretation that transmission involves active participation in video programming selection and distribution, which telephone companies do not perform.

Reasoning: The Commission concluded that 'transmission' requires active participation in video programming selection and distribution.