FOR IMMEDIATE RELEASE         NEWS MEDIA CONTACT:
July 14, 1999                 MICHELLE RUSSO AT (202) 418-2358

      COMMISSION SEEKS COMMENT ON OPTEL PROPOSAL TO OFFER 
            VIDEO PROGRAMMING ON "CARS" FREQUENCIES
                                
     To further promote competition in the delivery of video programming to consumers,
the FCC has adopted a Notice of Proposed Rulemaking (NPRM) seeking comment on a
proposal to allow private cable operators (PCOs) to use Cable Television Relay Services
(CARS) to deliver video programming over the 12 GHz frequency band.  CARS microwave
relay stations are used by franchised cable operators to transmit video programming over the
air where cable transmission is unfeasible, such as across a river or over a mountain.  PCOs
provide video and other services to residential customers in multiple dwelling units in
competition with franchised cable operators.  PCOs are not generally subject to local
franchises.  Optel, a private cable operator, petitioned the FCC to amend its rules to allow
PCOs to compete more effectively with franchised cable operators by allowing PCOs to use
these CARS microwave relay links to connect their buildings.  Rates charged by franchised
cable operators were recently deregulated, and the FCC is taking action to facilitate
competition in an effort to discourage rate increases.

     On its own motion, the FCC broadened this inquiry beyond Optel's petition by
including all multichannel video programming providers (MVPDs) as potential CARS
licensees.  In the NPRM, the FCC asks whether extending CARS eligibility to MVPDs, such
as PCOs and Open Video Systems, will promote competition to franchised cable operators.
The NPRM also seeks comment on whether expanded CARS eligibility would interfere with
use of these microwave links by existing licensees.

The Notice seeks comment on several questions, including:

         Should the FCC extend CARS eligibility to private cable operators (PCOs) and other
     MVPDs?  Specifically, will the goal of facilitating competition be served by this
     expansion of CARS eligibility?

         Do PCOs need access to the 12 GHz CARS band to compete more effectively with
     franchised cable operators?

         What is the appropriate eligibility criteria for PCOs and other MVPDs who wish to
     obtain a CARS license?

                              -over-
         Should the CARS band be expanded to include the frequency band segment from 13.20
     to 13.25 GHz, which is currently designated for television broadcast auxiliary service
     ("BAS")?  What would be the impact of such shared use of the spectrum between fixed
     PCOs and mobile BAS, especially as it relates to the required digital transition for
     broadcasters?  

         Given that PCOs can select their customers, in contrast to franchised cable systems that
     generally must serve the entire community, should PCOs have the same access to
     CARS stations that cable systems have?

Comment is also sought on technical questions involving use of the 12 GHz CARS spectrum
by PCOs, including uses other than analog video.

Comments are due by August 16, 1999, reply comments are due by September 20, 1999.

Cable Services Bureau Contacts: Eloise Gore at (202) 418-1066, 
Carolyn Fleming at (202) 418-1026

CS No. 99-10
FCC No. 99-166

                              -FCC-