NEWSReport No. DC-95-108              ACTION IN DOCKET CASE            AUGUST 11, 1995

                   COMMISSION STREAMLINES PROCESS FOR
         TELCOS TO CONSTRUCT IN-REGION STAND-ALONE CABLE SYSTEMS
          Applies Where Telcos Are Affected by Court Injunction
                           (CC Docket 87-266)

     The Commission voted today to streamline the authorization process for telephone
companies who seek to construct stand-alone cable television facilities in their service areas. 
These streamlined procedures apply to those telephone companies who have obtained
injunctions that bar the FCC from enforcing the telco-cable cross-ownership ban. 

     The Cable Act of 1984 generally prohibits LECs from providing video programming
directly to subscribers in their telephone service areas.  A series of court decisions, however,
have found that this cross-ownership ban violates the First Amendment and have enjoined the
Commission from enforcing it.  In response, in January, the Commission adopted a Notice of
Proposed Rulemaking seeking comment on the rules that should apply to a LEC's provision
of video programming to subscribers in its service area.  In April, Commission staff sought
additional comment on whether it should grant blanket Section 214 authorization to such
LECs for construction or acquisition of cable facilities in their service areas.

     Under Section 214 of the Communications Act, LECs are required to obtain
Commission authorization before acquiring, constructing, or operating a cable television
system.  In 1984, the Commission found that it was in the public interest to grant a blanket
Section 214 authorization to LECs seeking to operate cable systems outside of their telephone
service areas.  Because judicial injunctions prevent the Commission from enforcing the cross-
ownership ban, it finds, in this Order, that the public interest will be served by adopting a
streamlined authorization process for those LECs against whom it is not enforcing the cross-
ownership ban who seek to construct stand-alone cable facilities in their service areas.

     Under these streamlined procedures, a LEC will be required to certify that the system
it proposes to construct is not a common carrier system, that it will comply with the rules the
Commission has promulgated to protect telephone ratepayers, and that it has secured a
franchise to provide cable service pursuant to Title VI of the Communications Act.  Unless
the Common Carrier Bureau notifies the applicant within 14 days of the issuance of the
public notice listing the application as accepted for filing, the authorization will be deemed
granted.  Where the Bureau notifies the applicant, action by the full Commission will be
taken within 180 days of that notification.

 (over)
                                - 2 -



     The Commission did not address issues relating to LEC acquisitions of cable systems
in their service areas or the other issues raised in the April Notice.

     Action by the Commission, August 11, 1995, by Memorandum Opinion and Order
(FCC 95-357).  Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong.

                                   -FCC-

     News Media contact: Susan Lewis Sallet at (202) 418-1200.
     Common Carrier Bureau contacts: Jane Jackson and Mark Nadel at (202) 418-1580.