In Re COX-COSMOS, INC., CHARLOTTE, N.C. Request for Waiver
of Section 74.1111 of the Commission's Rules
FEDERAL
COMMUNICATIONS COMMISSION
29
F.C.C.2d 323
RELEASE-NUMBER: FCC 71-524
May 18, 1971 Released
Adopted May 12, 1971
JUDGES:
BY THE COMMISSION: COMMISSIONERS
BARTLEY, ROBERT E. LEE AND H. REX LEE ABSENT; COMMISSIONER
JOHNSON DISSENTING AND ISSUING A STATEMENT.
OPINION:
[*323] 1. On March
29, 1971, Cox-Cosmos, Inc., operator of an approximately 4,700 subscriber CATV
system at Charlotte, North Carolina, filed a "Petition for Waiver" in
which it asks permission to delay commencing cablecasting until it is able to
divest itself of the CATV system.
2. In support of its request,
Cox-Cosmos, Inc., urges that it is questionable whether the system could bear
the additional cost of local origination; that programming costs would be high
since there are several competing broadcast stations in the area; that by
virtue of its common ownership with Section WSOC-TV, Charlotte, North Carolina,
Section 74.1131 of the Commission's Rules will require divestiture of the
system by August 10, 1973; that Cox-Cosmos is making efforts to dispose of the
system in the near future; that the Commission should not insist on an
additional investment in a facility soon to be disposed of; and that a future
purchaser should be left maximum choice of equipment to be installed.
3. The Commission has
carefully considered the showing made by Cox-Cosmos, Inc., and is of the
opinion that the facts recited above establish good cause for a temporary
waiver of Section 74.1111 of the Commission's Rules. However, we are
unwilling to grant a waiver of indefinite duration since this would defeat the
policy underlying Section 74.1111 of the Rules. Accordingly, we will
grant Cox-Cosmos an 18 month waiver. If it has not disposed of the system
in that time, Cox-Cosmos may request a further waiver but should report on the
efforts made to dispose of the system.
Accordingly, IT IS ORDERED, that the
"Petition for Waiver" filed March 29, 1971, by Cox-cosmos, Inc., IS
GRANTED.
IT IS FURTHER ORDERED, That Section
74.1111 of the Commission's Rules IS WAIVED to and including 12 a.m. November
1, [*324] 1972; or until Cox-Cosmos disposes of the Charlotte CATV
system, whichever occurs first, with respect to Cox-Cosmos's CATV system at
Charlotte, North Carolina.
FEDERAL
COMMUNICATIONS COMMISSION, BEN F. WAPLE, Secretary.
DISSENT:
DISSENTING OPINION OF COMMISSIONER
NICHOLAS JOHNSON
The Commission has ruled that after
April 1, 1971 all cable television systems must have the capacity for originating
programs from the local communities they serve. 47 C.F.R. 74.1111.
That is, they must be physically capable of offering a service going beyond a
mere relaying of presently existing over-the-air television stations'
programming. They must originate programming themselves.
Most cable systems find that new
program offerings are economically profitable. New programs help to sell
additional homes on the cable, create greater community support for the
company, offer advertising revenue perhaps, and serve as a tangible example of
cable's potential for developing an almost unlimited variety of uses of
television beyond commercial entertainment purposes -- further encouraging
other demands (and revenue) for cable.
Nonetheless, some cable systems have
been asking for waivers of our programming origination requirements. Most
of these have been for short terms, sometimes awaiting the arrival of equipment
on order. See, e.g., Cablevision of Delaware, Inc., F.C.C. 71-460, May 5,
1971; Empire State Cable TV, F.C.C. 71-461, May 5, 1971; and Centre Video
Corporation, F.C.C. 71-507, May 11, 1971. I have joined in the
Commission's grant of many of these waivers.
In this instance, the cable system
in Charlotte, North Carolina, is owned by the owner of WSOC-TV in Charlotte and
therefore, under Section 74.1131 of the Commission's rules, 47 C.F.R. 74.1131,
must be sold by August 10, 1973. Accordingly, the cable system has
requested a waiver until that date -- 2 1/4 years. The Commission has
granted a 1 1/2 year waiver.
I would have no objection to a
conditional waiver; that is, waiving the origination requirement if, in fact,
the system is sold within a period such as 90 days or six months. But
this is not such a decision. It is a decision depriving the people of
Charlotte of a programming origination service for 1 1/2 years -- with the
possibility of further waivers then, either for the present or the new
owner. I believe the decision to be unwise and unwarranted, and therefore
dissent.