April 1, 1996

Mr. William Caton, Secretary
Federal Communications Commission
1919 M Street NW, Room 222
Washington, DC 20554

Re:     Open Video Systems, CS Docket No. 96-46

Dear Mr. Caton:

    General Instrument Corporation (GI) submits this
brief letter as comments in the above-referenced
proceeding.  GI's comments are limited to the question of
whether the Commission's Part 68 telephone equipment
rules and Section 64.702 Computer Inquiry rules should
apply to Open Video Systems. GI hereby incorporates by
reference its March 18, 1996 comments in CS Docket No.
95-184, dealing with home wiring and customer premises
equipment. 

    In its Report and Order and Notice of Proposed
Rulemaking herein ("NPRM"), the Commission has amended
Part 63 of its Rules to comply with new Section 651 of
the Communications Act of 1934, as amended by Section 302
of the Telecommunications Act of 1996.  This was required
in order to eliminate the previous requirement that
common carriers obtain a Section 214 Authorization to
offer a video programming delivery service.  NPRM at
para. 76. 

    However, the 1996 Act also requires the Commission to
eliminate other "Title II-like regulation."  NPRM at
para. 5.  This includes the customer premises equipment
regulations of Part 68 and the network disclosure and
equipment unbundling requirements of Section 64.702.  In
fact, the legislative history specifically calls for the
elimination of these regulations.  "Section 302(b)(3) of
the conference agreement specifically repeals the
Commission's video dialtone rules.  Those rules
implemented a rigid common carrier regime, including the
Commission's customer premises equipment and Computer III
rules, and thereby created substantial obstacles to the
actual operation of open video systems."  Joint
Explanatory Statement of the Committee of Conference, at
pages 178-79 (Section 653(c)(3)). 

    As we noted in our Comments in CS Docket No. 95-184,
there are major technological changes coming in the
architecture of broadband communications networks
provided by cable TV companies and common carriers. 
These developments could be stifled by regulatory
policies that deprive network operators of the
flexibility to deploy network components in a manner that
is technically and economically efficient.  The
Congressional policy set forth with respect to Open Video
Systems is consistent with a Congressional purpose to
permit the development of new and innovative services and
technologies with minimal regulatory intervention.  

    In light of the above, the Commission should amend
Sections 64.702 and 68.3 to state that the Commission's
equipment rules and Computer Inquiry rules do not apply
to Open Video Systems. 

                               Respectfully submitted,