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M E M O R A N D U M ă r  y<N dddy   INVOICE EXPSEExpense Subtotals for Math Invoice6:A ,p, $0$002I78F8=G9XH:[6IINVOICE TOTTotals Invoice for Math Macro7z 4p, $0$00INVOICE HEADRHeading Portion of Math Invoice8+C`*   4X 99L$0 **(  ӧ XX NORMALReturn to Normal Typestyle9SMALLSmall Typestyle:2/K;[I<[J=[yJ>[JFINEFine Typestyle;LARGELarge Typestyle<EXTRA LARGEExtra Large Typestyle=VERY LARGEVery Large Typestyle>2N?aK@dLAeHMBoMENVELOPEStandard Business Envelope with Header?+w ,,EnvelopeZ K e VE L"n,,EnvelopeLarge, Italicized and Under;    ,, 88+  `   A, B,|G?@6 Uppercase Letters=(*/|G?.E@ .footnote reference#A footnote textB%2\NNQy.X80,IX\  P6G;P7jC:, Xj\  P6G;XP7nC:,Xn4  pG;Xy.\80, [\4  pG;W!@(#,9h@\  P6G;hP H5!,,5\  P6G;,P\!{,W80,%?W*f9 xr G;X\"5hC:,%Xh*f9 xr G;XX6jC:,<LXj9 xOG;X9Xj\  P6G;XP7nC:, yOZ X-w  Federal Communications Commission`H(#FCC 96265 ă  yxdddy   @-  -@ X  1Z #X\  P6G;IP#Before the  yO FEDERAL COMMUNICATIONS COMMISSION  yO }Washington, D.C. 20554 #Xj\  P6G; XP# TP  X*-In the Matter of hh@) x` `  hh@)  X-Annual Assessment of the Status of @)hCS Docket No. 96 ԅ 133 ԅ   X-Competition in the Market for thehh@)  X-Delivery of Video Programminghh@)  X - NOTICE OF INQUIRY ĐTP  X[ - Adopted:  ԅ   ԅ June 12, 1996  ԅ hh@hReleased: ԅ  June 13, 1996  XD - ԅ   ԅ  By the Commission:  X- Comment Date:   ԅ   ԅ July 19, 1996 ԅ  ԅ   ԅ   X- Reply Comment Date:  August 19, 1996  X- Table of Contents ă  X-x` `  hh@hpp   xx Paragraph  Xu-X` hp x (#%'0*,.8135@8:competitive, deregulatory national policy framework . . . by opening all telecommunications  X -markets to competition."R X yO-ԍxJoint Explanatory Statement at 1.R@  X - ` x5.` ` The 1996 Act includes several provisions that may promote competition among  x=multichannel video programming distributors ("MVPDs"), by fostering the entry of alternative  xMVPDs in markets for the delivery of video programming and by removing existing barriers to  xentry. In the 1996 Competition Report, we will seek to provide information on the effect of the  xy1996 Act on competition among MVPDs in markets for the delivery of video programming. We  xrecognize that the legislative changes contained in the 1996 Act may significantly impact video  x[delivery markets. Because any such changes will likely occur over a number of years, the 1996  xCompetition Report can only begin the process of monitoring them. Thus, we seek information on those initial effects of the provisions of the 1996 Act that are already apparent.  X- ` x6.` ` For example, the 1996 Act repeals Section 613(b) of the Communications Act  xwhich prohibited local exchange carriers ("LECs") from providing video programming directly  X- xto subscribers in their telephone service area ("cabletelco crossownership ban"). yOG-ԍx1996 Act, Sec. 302(b)(1), which repeals Section 613(b), 47 U.S.C. 533(b). In place of  xthe cabletelco crossownership ban, the 1996 Act provides several options for common carriers  X- xentering the video marketplace.x yO -ԍxSection 301 of the 1996 Act adds a new Section 651 to the Communications Act, Video Programming Services Provided By Telephone Companies. Specifically, common carriers may: (1) provide video programming to subscribers through radio communication under Title III of the Communications "i,-(-(ZZ"  X- xAct;\ yOy-ԍxSection 651(a)(1), 47 U.S.C 571(a)(1).\ (2) provide transmission of video programming on a common carrier basis under Title II  X- xof the Communications Act;] X yO-ԍxSection 651(a)(2), 47 U.S.C. 571(a)(2).] (3) provide video programming as a cable system under Title VI  X- xof the Communications Act;]  yOk-ԍxSection 651(a)(3), 47 U.S.C. 571(a)(3).] (4) provide video programming by means of an "open video  X- xsystem" ("OVS") under new Section 653 of the Communications Act.e x yO -ԍxSection 651(a)(3)(4), 47 U.S.C. 571(a)(3)(4).e We seek comment on the initial effects of the elimination of the cabletelco crossownership ban.  Xv- ` x7.` ` The 1996 Act also contains provisions that deregulate, or reduce the regulation of,  X_- xjincumbent cable operators' rates. _ yO-ԍx1996 Act, Sec. 301(b). Section 301 amends Section 623 of the rate regulation provisions of the Communications Act, 47 U.S.C. 543. The 1996 Act contains provisions which deregulate certain  xrates of small cable operators in franchise areas where they serve 50,000 or fewer subscribers  X1- xjimmediately, 1`  yOB-ԍx1996 Act, Sec. 301(c). This deregulation is limited to the cable programming service ("CPS") tier unless the operator had only a single tier as of December 31, 1994, in which case all tiers are deregulated. and which sunset rate regulation on the cable programming service tiers of large  X - xlcable operators after three years.K  yO-ԍx1996 Act, Sec. 301(b)(4). K The 1996 Act also expands the definition of effective  xcompetition so that the cable service rates of an incumbent cable operator are deregulated when  xa LEC or its affiliate (or any MVPD using the facilities of such carrier or its affiliate) offers  xcomparable video programming in the local franchise area by any means other than direct to  X - x<home satellite.\ H  {O-ԍx1996 Act, Sec. 301(b)(3). See Order and Notice of Proposed Rulemaking Implementation of Cable Act  {O-Reform Provisions of the Telecommunications Act of 1996, CS Docket No. 9685, FCC 96154, released April 9, 1996. We seek comment on the effect of these provisions on competition in the market for the delivery of video programming.  Xy- ` x8.` ` The 1996 Act contains a provision that eliminates under a number of  Xb-circumstances the uniform rate structure requirement for similarly situated subscribersrbl yO"-ԍxSection 623(d) of the Communications Act, 47 U.S.C.  543(d).r for cable "b,-(-(ZZ"  X- xoperators that face effective competition, yOy-ԍxThis provision codifies the decision of the United States Court of Appeals for the District of Columbia  {OA-Circuit in Time Warner Entertainment Co., L.P. v. FCC, No. 931723 (D.C. Cir. 1995). for programming provided on a per channel or per  X- xevent bases, and in general for services provided to multiple dwelling units ("MDUs").J" yO-ԍx1996 Act, Sec. 301(b)(2).J The  xprovision, however, provides that a competitor can file a uniform rate complaint alleging that  X- xrates charged to an MDU are "predatory". {O -ԍxId. Under the statute, predatory pricing is only an issue with respect to MDUs. In other areas, nonuniform rates are illegal, regardless of whether they are predatory. We seek comment on the effect of this provision on  xcompetition generally, and, in particular, on competition from MVPDs that compete with cable  X-operators for service to MDUs.  X_- ` x9.` ` The 1996 Act narrows the definition of a cable system to exempt facilities that  x=serve buildings under different ownership, control, or management, provided that the facilities  X1- x=do not use public rightsofway.J1  yO-ԍx1996 Act, Sec. 301(a)(2).J For example, a satellite master antenna system ("SMATV")  x>operator can now expand service to MDUs with different owners without obtaining a cable  xfranchise, provided that the operator does not use a public rightofway. We seek comment on  xthe likely impact of this legislative change on SMATV entry in video delivery markets and on  xcompetition in those markets. We also seek information about any actual entry or expansion by SMATV operators that was stimulated by this new provision in the law.  X- ` x 10.` ` The 1996 Act also directs the Commission to "promulgate regulations to prohibit  xrestrictions that impair a viewer's ability to receive video programming services through devices  x>designed for overtheair reception of television broadcast signals, multichannel multipoint  XK- x<distribution service, or direct broadcast satellite services."DK yO-ԍx1996 Act, Sec. 207.D This provision is intended to ensure  xthat consumers have access to a broad range of video programming services and to foster full and  X- xfair competition among different types of video programming services.,  {O-ԍxSee Notice of Proposed Rulemaking on Implementation of Section 207 of the Telecommunications Act of 1996 Restrictions on OvertheAir Reception Devices: Television Broadcast and Multichannel Multipoint  {O -Distribution Service, CS Docket No. 9683, FCC 96151, released April 4, 1996. See also Report and Order and  {OV!-Further Notice of Proposed Rulemaking on Preemption of Local Zoning Regulation of Satellite Earth Stations,  {O "-IB Docket No. 9559, FCC 9678, released March 11, 1996, summarized at 61 Fed. Reg.10710 (Mar. 15, 1996). What effect has the  ximplementation of this provision had on competition in the market for delivery of video programming? ",-(-(ZZ"  X- ` Qx 11.` ` In addition, the 1996 Act includes provisions which (a) extend program access  X- xiobligations to LECs;w yOb-ԍxSection 653(b)(1) of the Communications Act, 47 U.S.C. 573(b)(1).w (b) eliminate cable/broadcastX yO-ԍx1996 Act, Sec. 202(i), which eliminates Section 613(a) of the Communications Act, 47 U.S.C. 533(a). and cable/network cross ownership rules;& {O-ԍx1996 Act, Sec. 202(f), which revises Section 76.501 of the Commission's rules, 47 C.F.R. 76.501; See  {ML-Order on Implementation of Section 202(c)(1) and 202(e) of the Telecommunications Act of 1996 National  {O-Broadcast Television Ownership and Dual Networking Provision, FCC 9691, released March 8, 1996,  {O-summarized at 61 Fed. Reg. 10691 (Mar. 15, 1996).  X- xyand (c) eliminate cable antitrafficking restrictions.& {OY -ԍx1996 Act, Sec. 301(i) amending Section 617 of the Communications Act, 47 U.S.C. 537; See Order on Implementation of Sections 202(f), 202(i), and 301(i) of the Telecommunications Act of 1996, Cable  {O -Television Antitrafficking, Network Television, and MMDS/SMATV CrossOwnership Rules, CS Docket No. 96 {O -56, FCC 96112, released March 18, 1996, summarized at 61 Fed. Reg. 15387 (Apr. 8, 1996). We seek comment on any of the foregoing  x>provisions, as well as other provisions which commenters deem pertinent to competition in markets for the delivery of video programming.  Xv-   III.XxCHANGES IN MARKETS FOR THE DELIVERY OF VIDEO PROGRAMMING  X_-SINCE LAST YEAR'S REPORT (#  X1<x A. ` `  Competitors in Markets For the Delivery of Video Programming    X - ` x 12.` ` Markets for the delivery of video programming are served by video distributors  xusing several different technologies, including both wired systems and wireless systems.  xIncumbent cable systems, operating under franchise agreements with local governments, use wired  xsystems to deliver video programming to subscribers. Some LECs are also building wired  x systems that will deliver their own video programming and carry the video programming of  x<unaffiliated program providers. While some of these systems will be cable systems, as discussed  xabove, the 1996 Act also authorizes LECs to operate such wired facilities as OVS or common  xcarrier systems. An OVS system will deliver the LECs' own programming directly to subscribers  xand will also provide transmission services to unaffiliated programming providers on a  xjnondiscriminatory basis. A common carrier system will provide only transmission services. In  x.addition, SMATV systems, also known as "private cable systems," are video distributors that  xjserve residential MDUs and various other buildings and complexes. A SMATV system uses a  xsatellite dish to receive programming signals and then distributes the programming to the  xsubscribing buildings, generally over wires, though SMATV operators also use 18 GHz licenses to interconnect separate buildings.  X- ` `x 13.` ` Wireless technologies include wireless cable systems, direct to home ("DTH")  x-satellite services, and overtheair broadcast services. The term "wireless cable" refers to service  xproviders using multichannel multipoint distribution service ("MMDS"), instructional television  xfixed service ("ITFS") and local multipoint distribution service ("LMDS") overtheair microwave"O ,-(-(ZZ"  xfacilities to transmit video programming to subscribers. There are two types of DTH satellite  xNservices. One type is direct broadcast satellite ("DBS") services, which distribute video  xprogramming to subscribers who use a relatively small receiving dish. The second type is home  xsatellite dish ("HSD") services. HSD owners use relatively large satellite dishes to receive video  xprogramming. Some DTH programming is received without subscription directly from satellites.  xMOther DTH programming is available by subscription to programming services provided by program packagers.  XH- ` x 14.` ` As in last year's report, we seek factual information and statistical data about the  xZstatus of video programming distributors using the different technologies, and changes that have  X - x[occurred in the past year.Y  {O -ԍxSee 1995 Competition Report.Y Among the types of information we seek are the following: (a) the  X - xznumbers of homes passed, the numbers of subscribers, and penetration rates; Z yO-ԍxTo the extent available, we seek information on the numbers of subscribers to different levels of service  {O-(e.g., basic, cable programming service or "CPS," and premium). (b)channel  x=capacities, the numbers and types of channels offered, and the numbers and types of services  xoffered; (c) industry revenues, in the aggregate and by sources (e.g., subscriber revenues,  xadvertising revenues), expenditures, cash flows, and investments; (d)industry transactions,  xincluding information on mergers, acquisitions, consolidations, and crossownership; (e)  xtechnological advances and developments, including developments in the deployment of advanced  xtechnologies; (f) other developments that affect the distributor's delivery of video programming;  x[(g) regulatory and judicial developments that are affecting the use of the technologies; and (h) the initial effects of the 1996 Act on video programming distributors.  X-x15.` ` In addition, we seek information including, but not limited to, the following:  X- ` XxX` ` (a) In the 1995 Competition Report, we noted that subscribership to existing DBS  ` services was increasing rapidly and that several firms were planning to offer new  X- ` DBS services.k {O(-ԍx1995 Competition Report, 11 FCC Rcd 208081 49.k We seek information about the further development of these  ` existing and planned new services, and any changes in their proposed prices, program offerings, or launch dates.(#`  ` XxX` ` (b) OVS permits LECs to offer their own programming directly to subscribers  ` `and simultaneously provide transmission services to unaffiliated programming  ` providers. What are the likely effects of the new OVS option for LEC entry into  X"- ` video programming transmission and distribution?h"F yO%-ԍxSec. 653 of the Communications Act, 47 U.S.C. 573.h What plans do LECs have  ` `with respect to OVS, common carriage, radio communications, cable, and other technologies?(#` ",-(-(ZZZ"Ԍ ` ԙXxX` ` (c) When assessing the competitive significance of broadcast television  X- ` transmission, the 1995 Competition Report noted the importance of distinguishing  ` #between broadcast television as a transmission medium and broadcast television  X- ` _as a programming source.l {O6-ԍx1995 Competition Report, 11 FCC Rcd 211314 112.l The Commission seeks information and comments on  ` these two functions of broadcast television and to what extent broadcast television competitively constrains cable.(#`  ` XxX` ` (d) The Commission also seeks information on the growth and future prospects  ` for the two new broadcast networks (United Paramount and Warner Bros.  X3- ` _Network) that were launched in the 199495 television season.: 3Z {O> -ԍxId.: We observe that  ` _the Warner network has relied on cable system carriage of a superstation to reach  ` households in areas where it has been unable to enter into affiliation agreements  X - ` with local broadcast stations.^!\  yO-ԍxFor example, it has been reported that Warner Bros. Network indicated that 18% of its coverage will  {OS-come from cable carriage of superstation WGN. Laurie Mifflin, WB is Setting Up a System That Will Use Cable  {O-Stations, New York Times, May 18, 1996, at 33.^ Has reliance on cable carriage proved to be a successful entry strategy?(#`  X - ` PXxX` ` (e) The 1995 Competition Report provided information on existing and potential  ` distribution technologies that may affect competition. We included local  ` multipoint distribution service ("LMDS"), low power television ("LPTV"), video  ` }cassette recorders ("VCRs"), interactive video and data services ("IVDS") and the  XO- ` ~Internet among these technologies."O {O-ԍx1995 Competition Report, 11 FCC Rcd 2097, 211622 8485, 117, 121127. We request information on any changes involving these technologies that may affect competition in the video marketplace. (#`  ` 2XxX` ` (f) The 1996 Act relaxed restrictions on public utility holding company entry into  X- ` 4communications markets. # yOF-ԍx1996 Act, Sec. 103, which amends Section 34 of the Public Utility Holding Company Act of 1935, 15  {O -U.S.C. 79z5c. See also 1995 Competition Report, 11 FCC Rcd 211718 119120.  What effect will this statutory change have on  ` competition in video markets? We seek information on the existing or potential  ` ~entry of utility holding companies in particular and utility companies in general into the video marketplace. (#`  X- Xx   ` nXxX` ` (g) The Commission seeks comments on the status of overbuilding, including the  Xi- ` `status of new overbuilding. In the 1995 Competition Report, the Commission  ` noted that "[n]ew overbuilding activity appears to be occurring. Most notably,  ` aAmeritech Operating Companies ("Ameritech"), several other Regional Bell"= #,-(-(ZZ"  ` Operating Companies, and a number of smaller LECs are pursuing the  X- ` nconstruction of cable systems in their local telephone service areas."h$ {Ob-ԍx1995 Competition Report, 11 FCC Rcd 2076 39.h There has  X- ` _also been recent evidence that this trend is continuing.h%^Z {O-ԍxSee, e.g., Michael Katz, Ameritech Hits Potholes in Road to Cable Entry, Broadcasting & Cable, April  {O-1, 1996, at 50; VDT Abandoned SNET Seeks Conn. Cable Franchise for Video and Telephony Over Fiber {Oq-Coaxial, Communications Daily, January 25, 1996, at 2.h In the 1996 Competition  ` Report, the Commission intends to update its information on the status of  ` 2competition from cable overbuilds, including the number and location of markets,  ` the manner in which overbuiders market their services, and the effects of overbuild  Xv-competition on cable rates, services and service quality.  (#`  ` QXxX` ` (h) We seek descriptive or demographic information regarding the differences  ` Abetween households that subscribe to cable and other MVPDs and those that do  ` not subscribe to these services. Are nonsubscribing homes more likely to be  ` located in areas with good offair reception of broadcast television? Do they  ` odiffer in income or education from households that subscribe? Are there other factors that affect a household's decision to subscribe to cable or another MVPD?(#`  W <x B.` ` Technological Issues  X-x  Xy- ` }x16.` ` The 1995 Competition Report described in detail various technological advances  xOthat may affect industry structure and competition in the market for delivery of video  XM- xzprogramming.u&M {O~-ԍx1995 Competition Report, 11 FCC Rcd 214250 173193.u For this year's report, we seek updated information on developments in the  xdeployment, or planned deployment, of advanced technologies, such as digital compression and  xswitched digital services. We intend to update the information we presented about the different  xxtransmission media used for distribution of multichannel video programming, such as copper wire,  x>coaxial cable, optical fiber, broadcast and other terrestrial radio frequency communications,  x{terrestrial microwave and satellites, and how they affect, and are likely to affect, industry  xstructure and competition for the provision of video services. We will also explore the  xhybridization of different transmission media as well as system configurations and designs that  xymay also affect competition. We also seek updated information about developments in settop  xLboxes to accommodate extended cable and broadband services in the future and facilitate their  x[use by consumers. In addition, we request comment on the effect of the 1996 Act's provisions  xrelating to commercial availability of equipment used by consumers to access services provided  X9-by MVPDs.'9 yO$-ԍxSection 304 of the 1996 Act adds a Section 629 to the Communications Act, 47 U.S.C. 549, Competitive Availability of Navigation Devices. "" j ',-(-(ZZ"Ԍ X< xC.` ` Industry and Market Structure  X-  X-x` ` 1.  Horizontal Concentration  X- ` _x17.` ` The Commission intends in the 1996 Competition Report to update its information  xZconcerning the structure of the cable industry and markets for the delivery of video programming.  xAn important element of industry and market structure is horizontal concentration, which refers  xLto the number and market shares of cable operators and other video programming distributors.  xiAccordingly, we seek information on changes in and the effects of horizontal concentration at the  xnational, regional and local levels, including information on the increased national concentration  xand regional clustering that we reported last year. To the extent possible, we also seek  xinformation on local markets for the delivery of video programming where incumbent cable  x]operators face competition from other video programming distributors. In particular, the  xCommission seeks to obtain information on: (a)the identity of the competitors; (b) the  xjdistribution technology used by each competitor; (c)the date that each competitor entered the  xmarket; (d)the location of the market, including whether it is predominantly urban or rural;  x[(e)an estimate of the subscribership and market share for the services of each competitor; (f)a  x\description of the service offerings of each competitor; and (g) the prices charged for these offerings.  X5- ` x18.` ` The Commission seeks comment about the definition of the relevant product  xmarket and our analysis of the relevant market, and what changes, if any, have occurred since  X- xthe 1995 Competition Report, in the relevant product market for the delivery of video  xprogramming. We also seek comment on the analysis and definition of the relevant geographic  xmarket within which customers can turn for alternative sources of delivered video programming,  X- xand what changes, if any, have occurred since the 1995 Competition Report in the relevant geographic market definition.  X-x` ` 2.  Vertical Integration  Xj-  XS- ` x19.` ` A cable company is vertically integrated if it is affiliated with a supplier of video  xprogramming. In the 1996 Competition Report, the Commission intends to update its information  xyon existing and planned programming services. We seek information on programming services  xzthat are affiliated with cable operators and on programming services that are unaffiliated. In particular, we seek information on the following subjects:  X - ` x(a) ` ` The existing national programming services, and the extent to which they are  ` affiliated with cable operators. In particular, the Commission would like to  ` provide a description of the amount and type of interest, the date such interest was  ` acquired, any changes since last year, and the percentage of ownership by each cable operator for each programming service; (#`  X?&- ` x(b)` ` The national programming service launches that have occurred over the past year, and the extent of their affiliation with cable system operators;(#` "(' ',-(-(ZZ%"Ԍ X- ` ԙx(c)` ` The national programming services that have been announced for launch since last year, and the extent of their affiliation with cable operators; (#`  X- ` 3x(d)` ` The number of subscribers and number of cable systems served by individual programming networks;(#`  Xv- ` x(e)` ` Cable programming networks also are distributed by other MVPDs. We request  ` Pinformation regarding such distribution and the numbers of subscribers receiving these programming services for noncable video providers.(#`  X - ` ~ Xx(f)X` ` The audience ratings, primetime or all day parts, of national cable programming services; and(#`  X - ` Ax(g)` ` The extent to which national cable programming services are affiliated with actual or potential competitors (e.g., LECs) to cable systems. (#`  X- ` x20.` ` In the 1995 Competition Report, the Commission presented information on the  X{- xeffects of its rules concerning relationships between cable operators and programming providers.t({ {O-ԍx1995 Competition Report, 11 FCC Rcd 213542 15771.t  xThese rules include the "program access" rules, the "program carriage" rules, and the "channel  XM- xLoccupancy" rules.t)MZ {OX-ԍx1994 Competition Report, 9 FCC Rcd 752022 158159.t In the 1996 Competition Report, we seek to update our information on the  x>effects of these rules. As noted above, the 1996 Act expanded the program access rules to  X- xLECs.Q* {O-ԍxSee 11 supra. Q We seek comment on the effect of this provision on competition in the video programming market.  X- ` "x21.` ` The Commission's program access rules are intended to ensure access by noncable  X- x/MVPDs to satellite cable programming that is affiliated with cable operators.i+~ {O-ԍx1995 Competition Report, 11 FCC Rcd 2135 157.i In the 1995  X- x<Competition Report, the Commission found that its program access rules appeared to be meeting  X- x this goal.X, {OZ!-ԍxId., 11 FCC Rcd 213536 159.X In order to update our finding, we seek information on the effectiveness of the program access rules during the past year.  XT- ` Ax22.` ` The Commission's program carriage and channel occupancy rules are intended to  xensure access to carriage on cable systems by video programming providers that are unaffiliated  xKwith cable operators. In particular, the channel occupancy rules limit the number of channels that"& ,,-(-(ZZ"  X- xa cable operator may fill with affiliated programming to 40% of its activated channels.X- {Oy-ԍxId., 11 FCC Rcd 214142 171.X In the  X- x1995 Competition Report, the Commission found little indication that this limit had a significant  X- ximpact during the previous year.:.Z {O-ԍxId.: In order to update our finding, we seek information on the  X- ximpact of the channel occupancy rules since the 1995 Competition Report was issued. We also seek information on the effect of the program carriage rules during the past year.  Xz- ` $x23.` ` In addition, the Commission's leased access rules are intended to increase the  Xc- xdiversity of available video programming./$c {O -ԍx47 C.F.R. 76.701, 76.970, 76.971, 76.975 and 76.977. See also Implementation of Sections of the Cable Consumer Protection and Competition Act of 1992: Rate Regulation Leased Commercial Access, Order on  {O -Reconsideration of the First Report and Order and Further Notice of Proposed Rulemaking, MM Docket No. 92266, FCC 96122, released March 29, 1996. These rules, which implement Section 612 of the  XL- xCommunications Act,D0L yO-ԍx47 U.S.C. 532.D are designed to "promote competition in the delivery of diverse sources  xof video programming and to assure that the widest possible diversity of information sources are  X - xmade available to the public . . . ."G1 h  yO7-ԍx47 U.S.C. 532(a).G The leased access rules require cable operators to setaside  xchannel capacity for commercial use of cable by unaffiliated programmers. We seek comment on the carriage of leased access programming and its effect on competition.  W < p x` ` D. Status of Competition in the Market For the Delivery of Video  W <Programming (#  X}- ` `x24.` ` The Commission seeks information on the current effects of actual or potential  x[competition in those local markets where consumers have, or soon will have, a choice between  x-MVPDs. We also intend to obtain updated information on incumbent cable operators' responses  x[to entry and competition and on the changes that cable operators are making in anticipation of  xthe entry of competitive alternatives in local markets. We further request information regarding  xany existing or potential impediments that deter entry or prevent increases in competition in the  xvideo program delivery market. Such impediments may include strategic behavior of incumbent  X- xfirms and legal, regulatory and other impediments.a2  {O"-ԍxId., 11 FCC Rcd 215457  205214.a Finally, comment is sought on the outlook  xfor competition in the market for the delivery of video programming based on available factual information and announced plans of participants in this marketplace.  X- " 2,-(-(ZZn"  X-IV.xPROCEDURAL MATTERS x  X- ` x25.` ` This Notice is issued pursuant to authority contained in Sections 4(i), 4(j), 403 and  xj628(g) of the Communications Act of 1934, as amended. Pursuant to applicable procedures set  xforth in Sections 1.415 and 1.419 of the Commission's Rules, 47 C.F.R.  1.415 and 1.419,  xinterested parties may file comments on or before July 19, 1996, and reply comments on or  xbefore August 19, 1996. To file formally in this proceeding, participants must file an original  xand four copies of all comments, reply comments and supporting comments. If participants want  xeach Commissioner to receive a personal copy of their comments, an original plus nine copies  x\must be filed. Comments and reply comments should be sent to the Office of the Secretary,  xFederal Communications Commission, Washington, D.C. 20554. Comments and reply comments  xwill be available for public inspection during regular business hours in the FCC Reference Center  xk(Room 239) of the Federal Communications Commission, 1919 M Street, N.W., Washington, D.C. 20554.  X - ` $x26.` ` There are no ex parte or disclosure requirements applicable to this proceeding  X-pursuant to 47 C.F.R.  1.1204(a)(4).@ x  Xd- ` Bx27.` ` Further information on this proceeding may be obtained by contacting Marcia  xkGlauberman in the Cable Services Bureau at (202) 4187200 or Deborah Klein in the Office of the General Counsel at (202) 4181880. XxX` ` X XXhhFEDERAL COMMUNICATIONS COMMISSION(#h x` ` X XXhhWilliam F. Caton(#h x` ` X XXhhActing Secretary(#h