Martin Proposes Exempting Smaller Cable Ops from HD-Carriage Mandate

Federal Communications Commission Chairman Makes Surprise Visit to American Cable Association Convention

By John Eggerton -- Broadcasting & Cable, 4/8/2008 6:11:00 PM

Federal Communications Commission chairman Kevin Martin was making a surprise visit to the American Cable Association convention in Washington, D.C., Tuesday to pitch a new proposal he circulated to help smaller cable operators with their capacity concerns.

The chairman is proposing to allow the smallest systems -- 552 megahertz and below -- to convert HDTV signals into standard-definition signals, essentially granting them a waiver from a 2001 decision that required cable operators to pass along HD signals in HD.

But the chairman does not plan to grant them the blanket waiver they had sought from the FCC's decision last fall to require cable operators to carry TV stations in both analog and digital formats if that is what is necessary to deliver a "viewable signal" to their subscribers. Martin is said to still believe that it is "critically important" that all cable subscribers see their broadcast signals after the transition, a source said.

Smaller cable operators, with the backing of larger systems, sought a blanket exemption from that dual-carriage/viewability requirement, saying that it placed an undue burden on smaller systems both to carry the signals or to go through the expense and time to apply for waivers of the rule on a case-by-case basis.

But they also welcomed Martin's move: "The chairman and the commission have done the right thing for small cable operators, the independent cable industry and the communities they serve, and it is very much appreciated,” ACA president Matt Polka said. “The ACA and our more than 1,100 members are very pleased that an exemption for carrying HD signals for the smallest cable systems serving the smallest communities has the support of the chairman. This was the right decision for the hundreds of system operators that didn’t have the extra bandwidth to comply with the digital-must-carry obligation.”

"We tried to recognize the capacity constraints some small cable operators might have," Martin said, "while at the same time trying to keep in place the viewability requirements put in place last fall that ensure that all cable subscribers, including analog cable subscribers, will be able to watch broadcast programming after the transition."

So it will not change the September decision, but it recognizes that smaller cable systems have legitimate capacity concerns. They are being exempted from a 2001 commission order that if you don't carry the full HDTV signal, it would be impermissable material degradation.

The National Cable & Telecommunications Association, which petitioned for the dual-carriage exemption for smaller systems, was also pleased with Martin, although the NCTA framed the move as an exemption from the dual-carriage ruling -- something the chairman has suggested was not the case.

"Chairman Martin's proposal is a positive step forward for small cable systems that do not have the capacity to carry broadcast signals in both digital and analog formats," NCTA president Kyle McSlarrow said. "We would like to thank all the commissioners and a bipartisan group of members of Congress for their recognition that this exemption is critical for small cable systems. We look forward to working with members of the commission toward swift adoption of an order that advances the DTV transition and provides appropriate relief and needed certainty to all owners of small cable systems."