Report No. CS 98-8    CABLE SERVICES ACTION          June 26, 1998
                                 
  COMMISSION SEEKS COMMENT ON PROPOSED CABLE ATTRIBUTION RULES
                       (CS DOCKET 98-82)

     The Commission has adopted a notice of proposed rulemaking regarding the cable
television ownership attribution rules.  The notice seeks comment on possible changes to these
rules in light of recent developments in the cable industry, various Commission proceedings
related to the issue of cable ownership, and the Commission's review, in a separate
proceeding, of the broadcast attribution rules on which many of our cable attribution rules
were based.  Among other issues, the notice seeks comment on (1) whether any relevant
differences exist between the cable and broadcasting industries that would support a distinct
cable attribution standard; (2) whether certain debt/equity, business, contractual, or common
purchasing relationships may allow an otherwise nonattributable interest holder to influence or
control a cable system; and (3) whether to retain, modify, or eliminate the single majority
shareholder exemption.  The notice also seeks specific information as to the structure of the
business arrangements involved in recent cable system partnerships, joint ventures, swaps,
transfers, mergers and acquisitions.

     The Commission's cable attribution rules define what constitutes a "cognizable interest"
that triggers application of various Commission rules relating to the provision of cable
television services.  The attribution rules seek to identify those corporate, financial,
partnership, ownership and other business relationships that confer on their holders a degree of
ownership or other economic interest, or influence or control over an entity engaged in the
provision of communications services such that the holders should be subject to the
Commission's ownership regulations.  Recent developments in the cable industry that have
triggered this review include: numerous strategic alliances, partnerships, system swaps,
mergers and acquisitions among cable entities; various Commission proceedings related to the
issue of cable ownership, such as the cross-ownership proceedings, horizontal ownership
proceedings, and biennial review; and the Commission's review, in a separate proceeding, of
the broadcast attribution rules on which many of our cable attribution rules were based.

     The cable attribution rules play a crucial role in the Commission's effort to ensure a
competitive, diverse, and fair video marketplace.  The purpose of this review is to examine
whether current cable attribution rules are accomplishing those goals, and to determine
whether fewer, additional or different restrictions are warranted.  Comments are due by
August 14, 1998; reply comments are due by September 3, 1998.


                              (over)

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Action by the Commission June 4, 1998, by Notice of Proposed Rulemaking (FCC 98-112).
Chairman Kennard, Commissioners Ness, Furchtgott-Roth, Powell and Tristani.

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News Media contact: Morgan Broman at (202) 418-2358.
Cable Services Bureau contact: John Norton at (202) 418-7200.
TTY: (202) 418-7172