FOR IMMEDIATE RELEASE NEWS MEDIA CONTACT February 16, 2000 Michelle Russo: (202) 418-2358 FCC acts on reconsideration petition and Issues Notice of Apparent Liability Against CablevisioN Washington, DC The Federal Communications Commission (FCC) today released a Notice of Apparent Liability for Forfeiture, initiating enforcement action against Cablevision Systems Corporation for violations of the Commission's must carry rules, specifically those regarding channel positioning. The FCC concluded that Cablevision has been in violation of the Communications Act and the FCC rules since February 16, 1999 and is liable for a forfeiture of $127,500. In 1998, television station WXTV filed a complaint with the FCC alleging violations of the channel positioning requirement (Section 614(b)(6) of the Communications Act). WXTV is broadcast over-the-air on channel 41 in the New York market and invoked must carry rights on Cablevision's 38 systems in the area, requesting carriage on channel 41. In April 1999, the Cable Services Bureau issued a Memorandum Opinion and Order finding that Cablevision was not complying with the channel positioning requirement on 21 of the 38 systems involved. For these 21 systems, the Bureau said it would begin a separate forfeiture proceeding. On the other 17 systems, due to technical and cost considerations, the Bureau allowed Cablevision additional time to come into compliance (180 days for 16 systems and upon rebuild for one system). Cablevision then filed a Petition for Reconsideration of the Bureau's order. The company's first request was relief from literal compliance for four of its systems (for three of the systems, there is no channel 41 on the system and thus compliance is not feasible). Second, Cablevision asked the FCC to reconsider its decision to initiate a forfeiture proceeding. Also, Cablevision asserted that the Commission should find that the must carry rules violate the Takings Clause of the Fifth Amendment. The FCC today also released an Order on Reconsideration granting in part and denying in part Cablevision's petition. Today's order grants Cablevision's requested relief for four systems, concludes that the Bureau was correct in initiating a forfeiture proceeding and refrains from issuing a decision on the merits of the Fifth Amendment argument. -more- The forfeiture amount of $127,500 reflects the base forfeiture for violations of the cable broadcast signal carriage rules ($7,500) multiplied by the 17 systems in violation (21 systems less 4 that were granted relief). Cablevision has 30 days to pay the full amount of the forfeiture or file a response showing why the proposed forfeiture should be reduced or rescinded. Action by the Commission, February 8, 2000, by Notice of Apparent Liability (FCC 00-41). Chairman Kennard, Commissioners Ness, Furchtgott-Roth, Powell and Tristani. Action by the Commission, February 10, 2000, by Order on Reconsideration (FCC 00-48). Chairman Kennard, Commissioners Ness, Powell and Tristani with Commissioner Furchtgott- Roth concurring and issuing a statement. -FCC- Cable Services Bureau contact: Ben Golant at (202) 418-7200.