Report No. DC-2635         ACTION IN DOCKET CASE             August 2, 1994


           FCC AMENDS SECTION 616 OF THE 1992 CABLE ACT TO GIVE 
                STANDING TO MULTICHANNEL VIDEO PROGRAMMING 
                      DISTRIBUTORS TO FILE COMPLAINTS
                          (MM DOCKET NO. 92-265)

     The Federal Communications Commission has amended its rules
regarding the scope of standing for complaints filed under
Section 616 of the Cable Television Consumer Protection and
Competition Act of 1992 (the 1992 Cable Act).  The Commission
will afford standing to any multichannel video programming
distributor (MVPD) aggrieved by a violation of Section 616 to
file a complaint.  Moreover, the Commission concluded that its
regulations proscribing the filing of frivolous complaints are
adequate to address any concerns regarding potential abuses of
its complaint process that may arise by expanding the class of
complainants under Section 616.

     Section 616 governs agreements between cable operators, or
other MVPDs, and video programming vendors.  This Section directs
the FCC to establish regulations that prevent cable operators or
other MVPDs from entering into carriage agreements that condition
carriage of a vendor's programming on particular concessions. 
The Commission adopted regulations implementing Section 616 on
September 23, 1993.

     The Wireless Cable Association International, Inc. (WCA),
filed a petition for reconsideration of these regulations,
requesting that the Commission grant standing specifically to any
MVPD aggrieved by an alleged violation of Section 616 of the 1992
Cable Act to file a complaint.  WCA's petition was supported by
Liberty Cable Company and GTE Service Corporation.  It was
opposed by Tele-Communications, Inc. (TCI) and Liberty Media
Corporation. 

     The Commission stated that based on the record and the
criteria set forth in the 1992 Cable Act and its legislative
history, it believed that the public interest would be served if
all potential violations of Section 616 were brought to its
attention.  In addition, the Commission stated that the statutory
purpose of Section 616 is further served if the FCC is made aware
of such violations through complaints by both programming vendors
and MVPDs alike.

                                  (over)

                                    -2-

     The Commission said that the mere threat of potential
complaints by allegedly aggrieved competing distributors is an
added deterrent for potential anticompetitive behavior by MVPDs
with respect to carriage agreements.  

     Moreover, the Commission said it shared the concerns raised
by the petitioners that programming vendors who may have been
coerced into granting anticompetitive concessions to MSOs could
lack the incentive to file a complaint because of potential
damage to their future business relationships with such MSOs. 
The Commission pointed out that if an MSO has the market power to
"coerce" the programming vendor into granting anticompetitive
concessions, the fact that the statute also proscribes
retaliation by that MSO for failure to grant such concessions,
will unlikely provide any additional incentive for that
programming vendor to file a complaint if it is already too
intimidated to report the coercion.

     Finally, the Commission said that while it believes that
amending the rule to grant standing to MVPDs aggrieved by
violations of Section 616 serves important public interest goals,
it is also mindful of the potential abuses that could result from
the complaint process.  In that regard, the Commission noted that
its rules specifically provides that frivolous complaints are
unlawful and that any violation constitutes an abuse of process
subject to appropriate sanctions.  The Commission said it would
strictly enforce this prohibition against frivolous complaints 
and cautioned that complaints filed pursuant to Section 616 must
be based on documentary evidence or testimony in the form of
affidavits, and may not merely reflect conjecture or allegations
based only on information and belief.

     In this manner, the Commission believes its rules afford
adequate protection against any potential frivolous complaints
filed as a result of its decision to expand the scope of parties
with standing to file carriage agreement complaints pursuant to
Section 616.

     Action by the Commission August 2, 1994, by Memorandum
Opinion and Order (FCC 94-203).  Chairman Hundt, Commissioners
Quello, Barrett, Ness, and Chong.


                                  -FCC- 

     News Media contacts: Patricia A. Chew and Susan Sallet at
(202) 418-0500.
     Cable Services Bureau contacts: Diane L. Hofbauer or Nancy
Markowitz at (202) 416-0856.