Understanding Cable Television: A Comprehensive Guide
Television, in the context of cable television, refers to a video delivery service provided by a cable operator to subscribers via coaxial cable or fiber optics. Programming delivered wirelessly, such as via satellite, is not included in this definition.
A cable television system operator manages and operates a cable system, holding significant ownership or control. They provide cable service, including video programming and subscriber options.
A cable system delivers cable service to multiple subscribers within a community using closed transmission paths and equipment. Facilities solely retransmitting broadcast signals, serving subscribers without public right-of-way, or belonging to common carriers with limited video programming are excluded. Open video systems and electric utility facilities used solely for their electric system are also not considered cable systems.
Cable services are often packaged into tiers with separate rates. Basic service includes over-the-air broadcast signals and public access channels. Cable programming service encompasses channels beyond basic service, excluding individual channels or programs offered at separate rates.
A local exchange carrier (LEC) provides local telephone service, while a multichannel video programming distributor (MVPD) offers multiple channels of video programming. MVPDs include cable operators, multichannel multipoint distribution services, direct broadcast satellite services, and television receive-only satellite program distributors.
Before operating, a cable system operator must register with the Federal Communications Commission (FCC), providing information about ownership, business information, service details, and compliance. An equal employment opportunity statement is required for systems with six or more full-time employees.
State and local regulations govern cable television alongside federal rules. Local franchising authorities grant franchises, oversee subscriber service and public access, and often regulate basic cable rates. Franchising agreements address system construction, public right-of-way usage, and compensation. Franchise fees, capped at 5% of annual gross revenue, are charged to operators.
Historically, the FCC didn’t regulate cable rates. The 1984 Cable Act allowed local regulation, but rate increases led to the 1992 Cable Act, tasking the FCC with regulating rates in areas lacking competition. The 1996 Telecommunications Act further modified rate regulation, deregulating cable programming service rates after March 31, 1999. Rate regulation now focuses on basic cable service in areas without effective competition.
Federal customer service guidelines set minimum service standards for cable operators, addressing areas like responsiveness, installation, interruptions, and billing. Specific requirements exist for call answering, service restoration, and billing clarity.
Unauthorized reception of cable services carries significant penalties under the 1984 Cable Act. Cable operators can pursue legal action against those involved.
The 1992 Cable Act introduced must-carry and retransmission consent options for local commercial television stations. Must-carry guarantees carriage, while retransmission consent requires negotiation. Noncommercial educational stations also have carriage rights. These regulations ensure access to local broadcasts. Radio carriage requires consent from stations within a certain radius.
Cable systems must carry the full schedule of stations carried under these rules, adhering to network nonduplication and sports blackout rules. The Copyright Act mandates compulsory licenses and fees for carrying copyrighted programming.
The FCC regulates “origination cablecasting,” programming under the operator’s control. Regulations include provisions for blocking objectionable content. The TV Parental Guidelines rate programming based on content. The V-chip allows blocking programs based on these ratings. Regulations also address scrambling of adult programming.
Political candidates have equal opportunity rights to use cable facilities, with restrictions on censorship. Lowest unit charge requirements ensure fair pricing for political ads. Lottery information broadcasts are generally prohibited, with exceptions. Sponsorship identification is required for paid programming. Commercial limits exist for children’s programs, and cigarette advertising is prohibited.
