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The signal leakage and interference elimination program is designed to locate and repair  x\sources of cable system signal leakage in order to minimize the potential for such leakage to interfere with aeronautical and public safety communications. X  S( ` B4.` ` In the Notice, we explained that the processing and compilation of Form 325 data has  Sb( xbeen a labor intensive process for the Commission.; b6( {O(ԍNotice at 3. ; In addition, we were concerned that the filing of  xthe form not be burdensome to the cable industry. Consequently, we questioned the form's overall utility  xgiven the resources necessary to maintain its collection. In the past, in accordance with Section 76.403  S( x4of the Commission's rules,> z6( yO (ԍ47 C.F.R.  76.403.> Form 325 was mailed to every cable system in the country at present  xnearly 11,000 systems. Information collected by the form was then entered into the Commission's  xcomputer database by the staff. In order to reduce the filing burden on cable operators and to increase  x the accuracy of the database, preprinted forms reflecting the information collected from the previous year's  xLfiling were sent to system operators. The system operator was then only required to correct information  xthat had changed since the last filing. Although this process was intended to ease the burden on system  xVoperators and to be administratively efficient, its review proved to be labor intensive for the Commission  xbecause the returned forms, many of which were deficient in some manner, had to be reviewed on an  S ( xindividual basis for accuracy by the staff before being entered into the database.d 6( yOT(ԍApproximately 40% of the returned forms had some deficiency.d Because of the pressing  x~demands of rate regulation and the implementation of the Telecommunications Act of 1996, Commission  xtresources were deployed to focus on those areas and it became increasingly difficult to complete the data input process. Thus, Form 325 has not been mailed out since 1994.  S( ~&A?  III.DISCUSSION  S( ` 5.` ` In response to the Notice in this proceeding we received 4 comments and 3 reply  xcomments. Comments supporting the retention of the current Form 325 were filed by two parties: the  SD( xInstitute for Public Representation, et. al. ("IPR")D6( yO~( xԍIPR filed its comments jointly with the following groups: Association of Independent Video and Filmmakers, Center for Media Education, Civil Rights Forum, and OMB Watch. and the National Association of Broadcasters ("NAB").  xComments advocating the elimination of Form 325 were filed by the National Cable Television  xAssociation ("NCTA"), Ameritech New Media, Inc. ("Ameritech"), and Adelphia Communications  S( x~Corporation, et. al. ("Adelphia"). 6( yO`#( x`ԍAdelphia filed its comments jointly with the following groups: Falcon Cable TV, the Pennsylvania Cable & Telecommunications Association, and TeleMedia Corporation of Delaware. In arguing for the elimination of Form 325, commenters contend that"J ,`(`(88"  S( xthe form serves no identifiable regulatory or policy purpose.t6( yOh(ԍNCTA Comments at 3; Ameritech Comments at 3; Adelphia Reply Comments at 35.t Commenters further claim that the Form  S(325 process imposes a significant burden on the cable industry.TX6( yO(ԍAmeritech Comments at 2; NCTA Comments at 2.T  S( ` 6.` ` NCTA describes the form as a "relic of a bygone era.";6( yO(ԍNCTA Comments at 3.; Ameritech argues that the form  x4has outlived its usefulness and asserts that the collection process is "a classic example of a regulatory  S8( xrequirement in search of a reason."@8x6( yOP (ԍAmeritech Comments at 3.@ NCTA and other commenters argue that the initial purpose for which  xthe form was developed to provide the Commission with basic information on the cable industry that  xNwould be valuable in the development of regulations and policies largely has been served as the  S( xBCommission has created a viable regulatory structure for the cable industry.V6( yOh(ԍNCTA Comments at 34; Ameritech Comments at 3.V With respect to individual  xsystem waiver and enforcement proceedings, NCTA notes that the use of Form 325 data is not necessary  Sp( xbecause relevant information may be obtained directly from the parties involved in such proceedings.EXp6( yO( x ԍNCTA Comments at 2 and at 45. Commenters point out that the Commission has ample authority to request  xor require parties to provide information when needed for specific purposes. Ameritech Comments at 4; NCTA Comments at 13; NCTA Reply Comments at 3.E  xThus, commenters argue that it is inefficient to collect information from every cable system in the country  S (in order to resolve waiver and enforcement cases that affect only some systems.P 6( yOx(ԍNCTA Comments at 2; Adelphia Reply at 4.P  S ( ` n7.` ` Some commenters also believe that the information contained in the form is available from  S ( xalternative sources.{ H 6( yO(ԍNCTA Comments at 610; Adelphia Reply Comments at 3; Ameritech Reply Comments at 1.{ NCTA asserts that Warren Publishing, Inc. ("Warren"), the publisher of the  S ( xTelevision & Cable Factbook, collects cable systemspecific data and includes in its publications much  SZ( xof the same information that is contained in Form 325._Z6( yO(ԍNCTA Comments at 7; Adelphia Reply Comments at 3._ NCTA notes that Warren also has an online  S2( xdatabase that contains systemspecific information which is updated on a continuing basis.;2h6( yO:!(ԍNCTA Comments at 7.; NCTA claims  xthat Warren's materials, not the Commission's Form 325 data, are relied upon by businesses and  S( xresearchers for systemspecific information about the cable industry.16( {Oz$(ԍId.1 NCTA and Adelphia state that A.C.",`(`(88"  S( xNielsen also collects information required by Form 325. 6( yOh( x ԍNCTA Comments at 8; Adelphia Reply Comments at 3. NCTA asserts, for example, that A.C. Nielsen's cable  xdatabase (known as the Cable Online Data Exchange or "CODE") provides systemspecific information including  xthe number of homes passed, channel capacity, number of channels in use and is updated quarterly. NCTA  yO(Comments at 8. IPR and NAB, who support the  xretention of the reporting requirement, argue that information compiled by commercial sources may not  S(be as accurate and reliable as data provided directly by cable operators.6( yO(ԍIPR Comments at 12; NAB Comments at 2 (noting that commercial sources rely on voluntarily submitted data).  S`( ` 8.` ` NCTA and Adelphia also contend that information contained in Form 325 duplicates  S8( x~information that is available through other governmental filings._8@6( yO (ԍNCTA Reply Comments at 2; Adelphia Reply Comments at 3._ Adelphia states, for example, that Form  x325 data is available through filings made pursuant to other Commission rules as well as filings made with  S( xthe Securities and Exchange Commission.6( yOX( xԍAdelphia Reply Comments at 3. Adelphia identifies filings made pursuant to 47 C.F.R  76.12, 76.400,  {O (76.612, and 76.615 as examples of filings that duplicate information requested by Form 325. Id. NCTA asserts that every cable system is required to file with  xthe Copyright Office, on a semiannual basis, information concerning the total number of activated  xDchannels as well as the number of activated channels on which the cable system carries television  Sp( xlbroadcast stations.h p* 6( yO:(ԍNCTA Reply Comments at 23 (citing Copyright Office Form SA12).h Moreover, the Commission has ample authority to require parties to provide  SH ( x:information when needed for specific purposes.u!H 6( yO(ԍAmeritech Comments at 4; NCTA Comments at 13; NCTA Reply Comments at 3.u Thus, in the event that both governmental and  xcommercial sources fail to provide the necessary information or the information proves to be unreliable,  S (the Commission, it is argued, can always seek the information on an as needed basis.A" J 6( yO(ԍNCTA Reply Comments at 3.A  S ( ` 9.` ` In arguing for the retention of Form 325, IPR contends that information contained in the  xform is critical to the Commission's assessment of cable operators' compliance with horizontal integration,  SX( xmustcarry, and leased access rules.B#X6( yO(ԍIPR Comments at ii and 11.B Specifically, IPR asserts that without reliable information on leased  S0( xtaccess usage, the Commission cannot assess the efficacy of its leased access rules.;$0j6( yO:!(ԍIPR Comments at 12.; IPR further argues  xthat the public plays a significant role in monitoring the cable industry and that the Commission's  S( xcollection of relevant industry data is important to that role.1%6( {Oz$(ԍId.1 In response to IPR's claims that Form 325  S( xis critical to the Commission's regulatory oversight, Adelphia states that the form "does not provide any  xinformation which would enable even the most experienced regulator to determine whether a particular"%,`(`(88\"  x*cable system was in compliance with the rather detailed and fact specific application of those [leased  S(access, must carry, and horizontal ownership] rules."E&6( yO@(ԍAdelphia Reply Comments at 4.E  S(  T 10. NAB believes that the continued collection of Form 325 may be necessary to ensure  xBthe availability of critical cable information for purposes of the upcoming digital television ("DTV") must  S8( x$carry proceeding.@'8X6( yO0(ԍNAB Comments at 12. @ However, NAB states that its concerns over the form will be allayed so long as the  x*Commission is satisfied that adequate, accurate, and uptodate information on specific cable system  xcapacity and channel usage will be available to the Commission and to private parties for purposes of that  S( xJproceeding.1(6( {OH (ԍId.1 NAB argues that information about cable usage and capacity will be vital to the  xCommission's decisionmaking process as well as to the comments provided by the parties involved in  Sp( xthe DTV must carry rulemaking.7)pz6( {O(ԍId.7 NAB is concerned that A.C. Nielsen does not elicit specific  xinformation on physical channel capacity, such as cable system capacity in megahertz and systems'  S ( xcompression of signals, which will be important in determining cable capacity to carry DTV signals.1* 6( {O(ԍId.1  xIPR also asserts that the Commission is statutorily obligated to collect Form 325 data from cable operators  xNunder Section 628(g) of the Communications Act of 1934, as amended. This Section requires the  xVCommission to report annually to Congress on the status of competition in the market for the delivery of  S (video programming.s+ 6( yO(ԍCommunications Act  628(g); 47 U.S.C.  548(g). IPR Comments at 11.s  S0( `  11. ` ` As explained more fully below, we seek in this proceeding to strike a balance to reduce  x the burdens placed upon the industry and on Commission resources in the Form 325 information collection  xprocess while still retaining access to core information that is needed by the Commission in order to  xperform its regulatory functions. We believe these objectives can best be achieved by drastically reducing  xthe universe of system operators required to file the Form 325 while, at the same time, modifying and  xclarifying the form so that the information obtained from those operators reporting can be filed by them  x.and utilized by the Commission with minimal burden. As explained below, we believe there is sufficient  x value in the information collected, with appropriate modifications and deletions, that the information collection process should not be altogether eliminated.  S( ` L12.` ` We believe that sufficient information could be collected to monitor the cable industry  xby sending out approximately 1,100 forms, an overall reduction of over 9,000 forms. This amount of  xforms will substantially reduce the burden on the cable industry without undermining the form's utility.  xBy sending out forms to the approximately 700 systems with 20,000 or more subscribers, we will be able  xto gather information covering 70 percent of America's cable subscribers. With regard to cable systems". +,`(`(88"  S( xHwith less than 20,000 subscribers, approximately 9,800 cable systems,,6( {Oh(ԍWarren Publishing, Inc., Television & Cable Factbook, Services Volume No.66, 1998, at I97. we believe that a mandatory  xLrequirement to have all of these systems file Form 325 would be costly and burdensome for the industry  x8as well as for the Commission. A less costly and less burdensome approach to gather information about  S( xBcable systems with less than 20,000 subscribers would be to adopt a sampling methodology.r-\Z6( {O( xԍSee, e.g., B.J. Mandel, Statistics for Management, Dangary Publishing Company, 1984, at 174176 ("Mandel").  xIn summary, sampling is used to lower cost, maintain or improve accuracy, and improve the feasibility and speed  {O(of collecting the information desired. r Sampling  xLis a way of providing accurate information while at the same time reducing the burden of compliance for  x`the industry and processing costs for the Commission. In this regard, the Commission has chosen to use  x$a stratified sampling technique to collect the required information from systems serving less than 20,000  S( xsubscribers.. ~6( yO ( xԍApplying standard statistical formula to the 9,800 cable systems serving less than 20,000 subscribers results  {O ( x~in a sample size of 450 systems. See Mandel at 258. These 450 systems are allocated into two strata based on  xsystem size by subscribers: systems with 5,000 to 19,999, and systems serving less than 5,000 subscribers. We  xJallocate the sample size of 450 to each of these strata according to the percentage of subscribers in each strata. Since  xthe systems making up the strata serving 5,000 to 19,999 subscribers serve approximately 11.8 subscribers or about  xn62% of cable subscribers served by systems with less than 20,000 subscribers, we allocate 62% of the sample size  x(i.e., 62% of 450) to this category. This yields a sample size for this category of 279 systems. The second category  x(systems serving less than 4,999 subscribers) contains systems which serve approximately 7.3 million subscribers or about 38% of all subscribers in both strata. We therefore allocate 38% of the sample size, i.e., 171 to this strata. We believe that the information collected based on this sampling of subscribers, along with  xthe information gathered from 100% of systems with over 20,000 subscribers, will provide the  x Commission with an adequate profile of how cable systems operate today and how they impact the general population.  S ( ` .13.` ` Moreover, we believe the burden on those filing information will not be onerous. The  xLburden on these systems will be substantially reduced because the modified form will collect information  xon a systemwide basis rather than on a communitybycommunity basis which was done by the old form.  xrThis alone will substantially reduce the burden on many operators who may serve ten or more  S ( xDcommunities on one system.9/B P 6( {Op( xԍCable system or cable television system. A facility consisting of a set of closed transmission paths and  xhassociated signal generation, reception, and control equipment that is designed to provide cable service which includes  xvideo programming and which is provided to multiple subscribers within a community, but such term does not  xinclude: (1) A facility that services only to retransmit the television signals of one or more television broadcast  xstations; (2) A facility that serves subscribers without using any public rightofway; (3) A facility of a common  x~carrier which is subject, in whole or in part, to the provisions of Title II of the Communications Act of 1934, as  xamended . . . ; (4) An open video system that complies with Section 653 of the Communications Act; or (5) Any facilities of any electric utility used solely for operating its electric utility systems. 47 C.F.R  76.5. 9 Additionally, the modified form will be reduced in size with many  xfquestions on the old form being deleted. We anticipate that in the future this information will be filed  xelectronically, but we will retain the paper filing requirement until the electronic filing system is  xdeveloped. We are also eliminating the process whereby preprinted forms containing information"Z/,`(`(88P"  S( xVpreviously filed at the Commission are sent out for correction each year.06( yOh( x\ԍAt least initially, we will mail out blank forms each year to affected cable operators. However, we will continue to examine less time consuming methods of distributing the form, such as posting the form on the internet.  Although this method of data  xcollection was designed to make the process more efficient for both the Commission and filing parties,  x`in practice, it has not proven to be of assistance and has in fact tended to impede the entire process. We  xVwill, however, be investigating methods to reduce the burden on those filing the form. We may consider  x8using our internet web site to distribute the form. This may prove to be a more efficient and convenient  xmethod of distribution of the form for cable operators and will reduce the administrative burden on the Commission.   S( ` $14.` ` In making our decision to retain a streamlined information collection process, we have  xcarefully reviewed the arguments of those who contend that the information collected is available from  xother governmental or nongovernmental sources, or that the information collected is not needed for  xlegitimate regulatory purposes. We are not persuaded, however, that either of these arguments is correct.  xWith respect to the question of whether this information is available from other sources, we are well aware  xVthat there are commercial resources available that contain considerable amounts of information regarding  x\the cable industry. The Commission has relied on such alternative sources in the past, including, for  S ( xexample, in connection with its Annual Assessment of the Status of Competition in Markets for the  S ( xDelivery of Video Programming ("Cable Competition Report").1\ 6( {OB( xԍFourth Annual Report, Annual Assessment of the Status of Competition in Markets for the Delivery of Video  {O ( xxProgramming, CS Docket No. 97141, FCC 97423, rel. Jan. 13, 1998 ("Cable Competition Report"). See NCTA  yO(Comments at 9; Ameritech Reply Comments at 2.ć The information collected by these  xBalternative sources, however, does not specifically answer the questions to be posed by Form 325 (e.g.,  xdigital capacity, leased access, must carry and retransmission consent). Nor is there any assurance that  xthe questions that are asked by the commercial entities collecting information are answered consistently  x&or that the information provided is current. We note, for example, a recent filing in a rulemaking  S( xpproceeding by a cable system operator that refers to the data contained in the Television Factbook as  xbeing, in some instances, "years old" so that the operator had to limit its analysis to only those systems  Sn(reporting more recently.2nD6( yOR(ԍComments of TeleCommunications, Inc., in Docket 92264 filed August 14, 1998, Page A5, note 2.  S( ` ~15.` ` Further, in making policy decisions in matters relating to such issues as digital television  xbroadcast signal carriage, having available current and accurate information collected with only minimal  xcost and burden will be of considerable importance to the Commission. Although we appreciate the  S( x0suggestion that such information could be collected more efficiently on an ad hoc basis, there are  xconsiderable delays associated with such a process and the information is likely to be needed on an ongoing basis for a variety of policy issues.  S( ` 16.` ` Moreover, we believe that the streamlining and modification of the form we adopt today  xwill greatly increase its relevance in these transitional times while at the same time dramatically reducing  xthe burden it imposes. In order to improve the overall usefulness of the form and its data, we have made  x"a number of modifications to the form itself and its accompanying instructions. Our initiative  xaccomplishes a number of goals, including soliciting information most directly responsive to our regulatory  x.needs, removing certain ambiguities in the instructions, and modifying or eliminating outdated questions. "@2,`(`(88B"  xWe believe that the information collected in the form is needed for current legitimate regulatory purposes,  xNas well as for future regulatory purposes. The Form 325 modifications will assist us in collecting  xzinformation regarding the conversion of cable service from the analog to the digital medium as well as  xinformation regarding the cable industries' provision of advanced services. The information collected in  xjthis regard will allow the Commission to monitor the scope of the conversion process and ensure that the American public is well served.  S( ` ~17.` ` The current four part Form 325 will be replaced with a streamlined, userfriendly Form  x325 containing a reduced number of questions. In addition, information, as noted above, will no longer  xzbe collected on both a Community Unit Identification Number ("CUID") basis and a Physical System  xIdentification Number ("PSID") basis, but will be collected solely on a PSID basis. This method of  x.reporting information on a system basis will eliminate a previously cumbersome and excessively detailed  x.procedure designed to elicit information regarding cable operators and the communities they serve on an  xindividual community unit basis. We also modify Section 76.615 of the Commission's rules which  x.requires cable operators to notify the Commission annually of all signals carried in the aeronautical radio  S ( xfrequency bands, a requirement previously fulfilled by the filing of a Form 325.>3 6( yO(ԍ47 C.F.R.  76.615.> Since all cable  xoperators will no longer be required to file Form 325, this requirement will now be satisfied by a cable  SX(operator filing Commission Form 320, "Basic Signal Leakage Performance Report."z4XX6( yOP(ԍFCC Form 320, Basic Signal Leakage Performance Report (approved by OMB 30600433).z  S(18.` ` The following modifications will be made to the revised Form 325: (See Appendix A).  S( General Information  Sh( `  19.` ` In this portion of the form, we will solicit information from cable operators regarding the  xHnumber of subscribers served by their systems as well as the number of potential subscribers (homes  S( x passed) that cable operators can access from their systems. This will provide the Commission with general  xinformation about the size of systems and structural changes that are taking place such as consolidation  xand clustering. We will also seek information regarding miles of cable plant and how much of the plant  x$is devoted to coaxial cable or fiber optic cable, including the number and average nodal sizes in terms of  x$subscribers served. Additionally, we will also ask whether the cable system uses microwave facilities as part of its cable plant.  S( ` ~20.` ` In order to better assess the technical capabilities of cable systems and the future of the  xindustry, we are interested in ascertaining general information regarding the provision of digital services.  S( x In that regard, the form will ask for information such as: number of cable modems deployed and the  xnumber of cable modem subscribers; number of subscribers requiring settop boxes and the number of set xtop boxes in inventory and deployed analog/digital/hybrid and total amount of analog spectrum versus  xdigital spectrum. This information will enable the Commission to analyze cable operators' technical  xcapabilities and the systems' technical potential for offering sophisticated services, including cable modem,  x0IP telephony, and internet services as well as general telephony. This will aid the Commission in evaluating how, where, and how soon advanced digital services can be introduced. "" 4,`(`(88D "Ԍ S( `Frequency and Signal Distribution Information:  S(  S( ` 21.` ` In this part of the form, we will seek information pertaining to areas such as transmitted  xs`pectrum and channel capacity. Specifically, we will solicit information regarding upstream channel usage  x(i.e., twoway capability) in order to ascertain the capabilities of cable operators to transmit information  x from their subscribers' premises back to the cable headend. We will also seek information regarding  xdownstream channel usage in order to ascertain the total number of video channels, both analog and  xdigital, capable of being carried on a system, including the number of digital channels per 6 MHz of  xVspectrum. Of that number, we will ask for information regarding the total number of channels, including  x4all nonvideo channels, activated and delivered on the system. We will also ask operators to provide  Sp( x* information about aggregate totals for addressable converters, modems deployed, and the number of  xtelephony subscribers that use their systems. We will also continue to require operators to submit their  xchannel lineups. We will ask operators to identify which channels are devoted to leased access,  xBgovernment access, public and educational access, and which stations are carried pursuant to must carry  xzor retransmission consent provisions. We will also ask operators to provide information regarding the  xnumber of tiers carried on their systems and how many channels may be carried on each of those tiers.  S0( ` z22.` ` We believe that the information solicited in this section of the form will enable us to  x.assess industry compliance with our rules and to monitor industry trends in various regulated areas. For  xRinstance, in light of the statutory requirements set forth in Section 612 of the Communications Act of  x1934, as amended, the Commission has an obligation to set and monitor the rules for the price, terms and  xLconditions of leased access use pursuant to Congressional direction to promote competition and diversity  Sh( xin the video marketplace consistent with the growth and development of cable systems.m5h6( {O(ԍ47 U.S.C.  532; see also 47 C.F.R.  76.970, 76.971.m Because the  x>number of leased access channels being used by leased access programmers on a cable system is not  xavailable from commercial sources, we believe that our ability to have access to this information as  xreported on the Form 325 will be useful in monitoring leased access use by the industry and will assist  xus in soliciting general information, if deemed necessary, from those cable operators we know to be  S( x utilizing leased access channels. 6ZZ6( yO( xԍ#X\  P6G;QwP#The Commission's 1997 Price Survey provides some information on leased access, but only by sampling rather  {Ob( xthan on a systembysystem basis. Report on Cable Industry Prices, 12 FCC Rcd 22756 (1997). We believe that the new Form 325 will provide a more complete picture of leased access use in the cable industry.  Similarly, in order to determine the impact of our must carry and  xretransmission consent rules and for purposes of future policymaking, it would be helpful for cable  xXoperators to identify which local broadcast channels are carried under our must carry rules versus  xretransmission consent. Moreover, by requiring cable operators to identify what kind of programming is  xcarried on which tiers, we will be able to determine how many, and what kind of service options are provided to subscribers.  S( ` .23.` ` The modifications to the Form 325 and its collection process will accomplish the goals  xLof reducing the administrative burdens imposed upon both the cable industry and the Commission, while  xstill allowing the Commission access to a consolidated source of information that will serve to better assist  xit in regulating the cable television industry. The modified form, by providing consistent, industrywide  xdata, will also assist the Commission in preparing its annual cable competition report. By changing the  xuniverse of cable systems reporting to systems with more than 20,000 subscribers, in addition to a"! |6,`(`(88|"  xpsampling of cable systems with less than 20,000 subscribers, we will drastically reduce the number of  S( xpForm 325 filings made at the Commission from nearly 11,000 to approximately 1,100. However, we  xbelieve that the information collected from this group of systems will give us an accurate picture of the  xBentire cable industry at large. We also believe that the new Form 325 will still provide a mechanism that  xLwill enable the Commission to oversee and audit overall compliance with its regulatory fee requirements.  xIn this regard, we note that systems serving more than 70% of the nation's cable subscribers will be  xreporting information. In addition, the revised form, while limited in scope and distribution, will nevertheless allow the Commission to monitor the vast changes which are occurring in the cable industry.  S( ` 24.` ` Moreover, the burden imposed upon those operators subject to the filing requirement is  xreduced because only a limited amount of information will be required to be reported and the information  xwill be collected on a systemwide basis rather than on a communitybycommunity basis. In the past,  xthe collection of data on a community basis proved to be a difficult and time consuming task for the  xoperator because of the sheer volume of communities served by individual cable systems. Thus, while  xtthe administrative burdens imposed on the industry and the Commission will be significantly reduced, we  xbelieve that the new and improved form will prove useful to the Commission in its enforcement and policymaking functions.  S0( IV.XREGULATORY FLEXIBILITY ANALYSIS (#  S(25. ` ` The regulatory flexibility analysis is attached to this Order as Appendix B.  S(V.PAPERWORK REDUCTION ACT OF 1995 ANALYSIS  S@( ` t26.` ` The requirements adopted in this Report and Order have been analyzed with respect to  xthe Paperwork Reduction Act of 1995 (the "1995 Act") and found to contain new or modified information  x:collection requirements on the public. The Commission, as part of its continuing effort to reduce  xpaperwork burdens, invites the general public and the Office of Management and Budget ("OMB") to take  xthis opportunity to comment on the information collection requirements contained in this Order, as  xrequired by the 1995 Act. Public comments are due 30 days from date of publication of this Order in the  xFederal Register; OMB comments are due 60 days from date of publication of this Order in the Federal  xRegister. Comments should address: (a) whether the collection of information is necessary for the proper  xperformance of the functions of the Commission, including whether the information shall have practical  xutility; (b) the accuracy of the Commission's burden estimates; (c) ways to enhance the quality, utility,  xand clarity of the information collected; and (d) ways to minimize the burden of the collection of  xinformation on the respondents, including the use of automated collection techniques or other forms of information technology.  S8( " S ( ` "27.` ` Written comments by the public on the new or modified information collection  S ( x requirements are due 30 days after date of publication of this Order in the Federal Register. Written  xcomments by OMB on the new or modified information collection requirements are due 60 days after date  xof publication of this Order in the Federal Register. Comments on the information collection requirements  x2contained herein should be submitted to Judy Boley, Federal Communications Commission, Room 1C804,  x445 12th Street, S.W., Washington, DC 20554, or via the Internet to jboley@fcc.gov and to Timothy  xHFain, OMB Desk Officer, 10236 NEOB, 725 17th Street, N.W., Washington, DC 20503 or via the Internet to fain_t@al.eop.gov. "& 6,`(`(88#"Ԍ S( VI.PROCEDURAL PROVISIONS  S( ` 28.` ` Effective Date. Upon approval by the Office of Management and Budget ("OMB"), the  xrules adopted in this Report and Order shall become effective. The Commission will publish a notice in the Federal Register announcing the effective date.  S( V II .ORDERING CLAUSES  S( ` 29.` ` IT IS ORDERED that, pursuant to authority found in Sections 4(i), 303(r) and 628 of  xBthe Communications Act of 1934, as amended, 47 U.S.C.  154(i), 303(r) and 548 that Section 76.403  Sp( xVof the Commission's rules , 47 C.F.R.  76.403, IS AMENDED as set forth in Appendix C. In view of  x>our action today which limits the number of cable operators filing Form 325, we also modify Section  x76.615 of the Commission's rules, 47 C.F.R.  76.615. Section 76.615 requires cable operators to notify  xthe Commission annually of all signals carried in the aeronautical radio frequency bands and was a  xrequirement previously fulfilled by the filing of a Form 325. Since all cable operators will no longer be  xVrequired to file Form 325, the Section 76.615 requirement will now be satisfied by a cable operator filing Commission Form 320.  S0( ` 30.` ` IT IS FURTHER ORDERED that the rules as amended in Appendix C shall become  xeffective 30 days after publication in the Federal Register. The information collections contained in these  xrules shall become effective 70 days after publication in the Federal Register, following OMB approval, unless a notice is published in the Federal Register stating otherwise.  Sh( ` 31.` ` IT IS FURTHER ORDERED that the Commission's Office of Public Affairs, Reference  S@( xOperations Division, shall send a copy of this Report and Order, including the Final Regulatory Flexibility  xAnalysis, to the Chief Counsel for Advocacy of the Small Business Administration in accordance with  S( xparagraph 603(a) of the Regulatory Flexibility Act, Pub. L. No. 96354, 94 Stat. 1164, 5 U.S.C.  601  S(et seq. (1981). ` `  ,hhhFEDERAL COMMUNICATIONS COMMISSION ` ` ` `  ,hhhMagalie Roman Salas ` `  ,hhhSecretary "< 6,`(`(88"  S( APPENDIX A FORM 325 (NOT YET APPROVED BY OMB). "` 6,`(`(88 "  S(  APPENDIX B   S($  FINAL REGULATORY FLEXIBILITY ANALYSIS Đx  S8(  A.` ` Background  1. 1. 1. a.(1)(a) i) a) I. 1. 1. a.(1)(a) i) a)6  S( ` 1. ` ` As required by the Regulatory Flexibility Act (RFA),Z6( {OP( x8#X\  P6G;QwP#эSee 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et seq,. has been amended by the Contract With America  xAdvancement Act of 1996, Pub. L. No. 104121, 110 Stat. 847 (1996) ("CWAAA"). Title II of the CWAAA is the  yO (Small Business Regulatory Enforcement Fairness Act of 1996 ("SBREFA").  an Initial Regulatory Flexibility  xAnalysis ("IRFA") was incorporated into the Notice of Proposed Rule Making ("NPRM") in this  S( xproceeding.'6( {O" ( x#X\  P6G;QwP#э 1998 Biennial Regulatory Review Annual Report of Cable Television System, Form 325, filed pursuant to  {M (Section 76.403 of the Commission's Rules, 13 FCC Rcd 12266 (1998). ' The Commission sought written public comment on the possible impact of the proposed  xpolicies and rules on small entities in the NPRM, including comments on the IRFA. This Final  SH (Regulatory Flexibility Analysis ("FRFA") in this Report and Order ("Order") conforms to the RFA.tH D6( {O,(#X\  P6G;QwP#эSee 5 U.S.C. 604. ,t  S (B.` ` Need for Action and Objectives of the Rules  S ( ` j2. ` ` Section 11 of the 1996 Telecommunications Act requires the Commission to conduct a  xbiennial review of regulations that apply to operations and activities of any provider of telecommunications  SX( xbservice and to repeal or modify any regulation it determines to be no longer in the public interest.X6( yO(#X\  P6G;QwP#э47 U.S.C.  161; News Release, Nov. 18, 1997.  xAlthough Section 11 does not specifically refer to cable operators, the Commission has determined that  x0the first biennial review presents an excellent opportunity for a thorough examination of all of the Commission's regulations.  S(C.` ` Summary of Significant Issues Raised by the Public Comments in Response to the IRFA  S@( ` 3. ` ` While no commenter has specifically responded to the IRFA, several commenters allege  x4that the current requirement to file a Form 325 is unnecessarily burdensome. Commenters generally  xcontend that the current Form 325 has out lived its usefulness and the information contained therein is available from other sources.  Sx(D.` ` Description and Estimate of the Number of Small Entities to Which the Rules Will Apply(#`  S(( ` 4.` ` The RFA directs the Commission to provide a description of and, where feasible, an  xestimate of the number of small entities that might be affected by the rules here adopted. The RFA  xdefines the term "small entity" as having the same meaning as the terms "small business," "small"f ,`(`(88@"  S( xorganization," and "small governmental jurisdiction."6( yOh(#X\  P6G;QwP#э#X\  P6G;QwP#5 U.S.C.  601(6). In addition, the term "small business" has the same  S( xLmeaning as the term "small business concern" under the Small Business Act.X6( yO( x#X\  P6G;QwP#э5 U.S.C. 601(3) (1980) (incorporating by reference the definition of "small business concern" in 15 U.S.C.  x~632). Pursuant to 5 U.S.C. 601(3), the statutory definition of small business applies "unless an agency after  x<consultation with the Office of Advocacy of the Small Business Administration and after an opportunity for public  xcomment, establishes one or more definitions of such term which are appropriate to the activities of the agency and publishes such definitions in the Federal Register." Under the Small Business  xAct, a small business concern is one which: (a) is independently owned and operated; (b) is not dominant  S( x:in its field of operation; and (c)satisfies any additional criteria established by the SBA.6( {O0 (#X\  P6G;QwP#эSmall Business Act, 15 U.S.C.  632.Ă The rule  ximplementing a streamlined Form 325 that we adopt in this Report and Order will only affect cable systems.  S( ` Z5. ` ` SBA Definitions for Cable. The SBA has developed a definition of small entities for cable  x*and other pay television services, which includes all such companies generating $11 million or less in  S( xannual receipts.q6( yO(#X\  P6G;QwP#э13 C.F.R. 121.201 (SIC 4841).q According to the Census Bureau data from 1992, there were approximately 1,758 cable  Sp(systems with less than $11 million in revenue. p* 6( yO:( xZ#X\  P6G;QwP#эU.S. Department of Commerce, Bureau of the Census, Industry and Enterprise Receipts Size Report, Table 2D, SIC 4841 (Bureau of the Census data under contract to the Office of Advocacy of the SBA).   S ( ` j6. ` ` Additional Cable System Definitions: In addition, the Commission has developed, with  xSBA's approval, our own definition of a small cable system operator for the purposes of rate regulation.  xUnder the Commission's rules, a "small cable company" is one serving no more than 400,000 subscribers  S ( xnationwide. \ 6( yO( x#X\  P6G;QwP#э47 C.F.R.  76.901(e). The Commission developed this definition based on its determinations that a small cable  {O( xsystem operator is one with annual revenues of $100 million or less. Implementation of Sections of the 1992 Cable  {O\(Act: Rate Regulation, Sixth Report and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393 (1995). Based on recent information, we estimate that there were 1439 cable operators that qualified  S ( x~as small cable companies at the end of 1995. 6( {O(#X\  P6G;QwP#эPaul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 1996 (based on figures for Dec. 30, 1995). Since then, some of those companies may have grown to  xserve over 400,000 subscribers, and others may have been involved in transactions that caused them to be combined with other cable operators.  S( ` 7. ` ` The Communications Act also contains a definition of a small cable system operator,  xwhich is "a cable operator that, directly or through an affiliate, serves in the aggregate fewer than 1% of  x*all subscribers in the United States and is not affiliated with any entity or entities whose gross annual  Sh( xrevenues in the aggregate exceed $250,000,000."h h86( yO@&(#X\  P6G;QwP#э47 U.S.C. 543(m)(2).h The Commission has determined that there are  x61,700,000 cable subscribers in the United States. Therefore, we found that an operator serving fewer"@ ,`(`(88"  xthan 617,000 subscribers shall be deemed a small operator, if its annual revenues, when combined with  S( xthe total annual revenues of all of its affiliates, do not exceed $250 million in the aggregate.t 6( yO@(#X\  P6G;QwP#э47 C.F.R.  76.1403(b) (SIC 4833).t Based on  S( xavailable data, we find that the number of cable operators serving 617,000 subscribers or less totals 1450.X6( {O(#X\  P6G;QwP#эPaul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 1996 (based on figures for Dec. 30, 1995).  xAlthough it seems certain that some of these cable system operators are affiliated with entities whose gross  xannual revenues exceed $250,000,000, we are unable at this time to estimate with greater precision the  xnumber of cable system operators that would qualify as small cable operators under the definition in the Communications Act. Description of Reporting, Record keeping and Other Compliance Requirements  Sp( ` 8. ` ` This analysis examines the costs and administrative burdens associated with our rules and  x8requirements. The rule we adopt today significantly reduces the burden on the cable industry. The rule  xrequires that all cable systems having 20,000 or more subscribers, and a sampling of cable operators  xhaving less than 20,000 subscribers, must file a streamlined Form 325. This will result in reducing the  xfiling burden from nearly 11,000 to approximately 1,100 forms filed by cable operators. In addition the  xform itself has been modified to be less burdensome. We estimate that it will take operators approximately 2 hours to fill out each newly revised Form 325. No other compliance requirements are imposed.  S0( ` F.` ` Steps Taken to Minimize Significant Economic Impact On Small Entities and Significant Alternatives Considered (#`  S( ` 9. ` ` We believe that our amended rule will alleviate Form 325 filings for some small cable  xVoperators under the SBA's definition of small businesses. In addition, by our action of streamlining Form 325, the burden on all cable operators will be substantially reduced.   S(G.` ` Report to Congress   S( `  10. ` ` The Commission will send a copy of the Report and Order, including this FRFA, in a  x report to Congress pursuant to the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C.  x801(a)(1)(A). The Report and Order and this FRFA (or summaries thereof) will also be published in  xthe Federal Register, see 5 U.S.C. 604(b), and will be sent to the Chief Counsel for Advocacy of the Small Business Administration. ",`(`(88<"  S( APPENDIX C  S(  Rules  S`( Part 76 of Title 47 of the Code of Federal Regulations is to be amended as follows:  S( PART 76 MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE  S(1.Section 76.403 is amended to read as follows:  Sp( 76.403 Cable television system reports.  S ( x The operator of every operational cable television system that serves 20,000 or more subscribers shall  xpannually file with the Commission a Form 325 soliciting general information and frequency and signal distribution information on a Physical System Identification Number ("PSID") basis.  x8These forms shall be completed and returned to the Commission within 60 days after the date of receipt by the operator.  x*NOTE: The Commission retains its authority to require Form 325 to be filed by a sampling of cable operators with less than 20,000 subscribers.  S(2.Section 76.615 is amended to read as follows:  S@( 76.615 Notification requirements.  S( All cable television operators shall comply with each of the following notification requirements:  x (a) The operator of the cable system shall notify the Commission annually of all signals carried in the  xaeronautical radio frequency bands, noting the type of information carried by the signal (television picture,  xaural, pilot carrier, or system control, etc.) The timely filing of the FCC Form 320 will meet this requirement.  S( ",`(`(88"  S(  Dissenting Statement of Commissioner Harold FurchtgottRoth  S( t1998 Bienn ial Regulatory Review: "Annual Report of Cable Television Systems, Form 325,  S(Filed Pursuant to Section 76.403 of the Commission's Rules, CS Docket No. 9861 ă   For the following reasons, I would have eliminated altogether the rule requiring cable operators  S8(to file Form 325.86( yO( xԍAs I have stated in other "Biennial Review" items undertaken pursuant to section 11(b) of the Communications  x Act, 47 USC section 161(b), I do not believe that the 1998 section 11(a) review was as thorough as it should have  {O0( x@been. See generally Report on Implementation of Section 11 by the Federal Communications Commission (Dec. 21,  x1998), . I look forward to working with the Chairman and other Commissioners on the 2000 Biennial Review, planning for which should begin in mid1999.  S(  First, the collection of this information is not statutorily required, nor does the item identify any  xspecific, statutorilybased purpose for this information once collected. As I have said in other contexts,  S( xwe should not compile data for its own sake. See 1998 Biennial Regulatory Review -- Streamlining of  xMass Media Applications, Rules, and Processes; Policies and Rules Regarding Minority and Female  SL ( xOwnership of Mass Media Facilities; MM Docket Nos. 98-43, 91-140, 94-149 (released Dec. 3, 1998).  xBAs Commissioner Powell points out, the fact that we have not collected this information for the last four years undermines the assertion of actual need for it.   S (  DSecond, any information that we need in order to make regulations governing cable operators can  x\be obtained in the context of specific rulemakings. Those interests whose business operations will be  xaffected by proposed regulations have every incentive to provide the Commission with information on  xrelevant topics. Moreover, general industry information can be readily obtained from private groups, such as the National Cable Television Association, or from industry publications.  S(  Third, any rationale for the collection of this information loses force when the filing requirement  x4is not applied evenly to all cable operators. The usefulness of information gleaned from only a small  x\segment of the industry is limited. I also question the fairness of a sampling system as an alternative,  xRsince, at the end of the day, responding to these inquiries is costly to operators and sampling imposes those costs on operators on an arbitrary basis. "z,`(`(88n"  S( rDISSENTING STATEMENT OF  S(MW COMMISSIONER MICHAEL POWELL   Q(xXxRe: 1998 Biennial Regulatory Review: "Annual Report of Cable Television Systems, Form  Q`(325, Filed Pursuant to Section 76.403 of the Commission's Rules, CS Docket No. 9861(#   vI respectfully dissent from the Commissions decision not to eliminate altogether the rule requiring  xcable operators to file Form 325. Although the decision purports to revise and streamline the form, I  xbelieve that it would be truer to the deregulatory objectives of the Telecommunications Act of 1996 to  x have simply dispensed with the form altogether. As Commissioner FurchtgottRoth has noted in his  xzdissent, there is no statutory requirement that the Commission collect the information required by this  SH ( xform. Indeed, as the item notes, the Commission has not collected the information since 1994. Order,  S" ( xpara. 4. Under these circumstances, I find it hard to accept the assertions of the order, that there is an actual need for the Commission to reimpose this regulatory burden on any cable operators.  S (  There is no reason to assume, as this Order does, that general information about cable operators  xis not available from private sources or industry groups such as the National Cable Television Association.  xNor is there any reason to assume that private parties will lack the information they need to file leased  xVaccess or program access complaints. Parties have continued to file complaints and the Commission has  xacted on them even though it was not collecting Form 325 information. Similarly, the contention of the  S( x Order that the information will also assist the Commission in preparing its annual cable competition  xfreport rings hollow in light of the fact that the Commission conducts a separate proceeding to collect  xinformation for that report. This proposition is even more questionable since the information collected will only be obtained from select cable systems.   In sum, I am not persuaded that there is a need to reimpose the requirement that cable operators file Form 325, therefore, I respectfully dissent.