FCC’s Leased Access Rules Trigger Appeals

NCTA, ShopNBC, United Church Of Christ Have Filed Suit

By Ted Hearn -- Multichannel News, 3/13/2008 5:28:00 AM

Washington – New federal rules designed to make room for independent programmers on cable television systems have triggered multiple law suits that allege the rules are both too broad and too narrow.

The National Cable & Telecommunications Association, ShopNBC and United Church of Christ each filed suits challenging aspects of the rules adopted by the Federal Communications Commission last November.

Under federal law, independent programmers are entitled to lease time on cable systems. Large capacity cable operators need to set aside 15% of their channels for leased access programmers.

Leased access hasn’t been a raging success because the concept of programmers paying cable providers is at odds with the cable business model of operators paying programmers like ESPN and C-SPAN to license their services.

Among other things, the new rules slashed leased access rates by 75%.

The NCTA, a trade group for cable operators and programmers, challenged the rate cut as a violation of cable’s free speech rights and as an uncompensated taking of private property in violation of the 5^th Amendment. NCTA filed in the U.S. Court of Appeals for the D.C. Circuit.

ShopNBC, which sells merchandise to pay-TV viewers, challenged the FCC’s decision to prevent home shopping entities from relying on new leased access rate structure. ShopNBC filed in the U.S. Court of Appeals for the 8^th Circuit.

The United Church of Christ, based in Cleveland, challenged the FCC’s decision not to force cable operators to lease time "on a headend, regional or national basis.” UCC’s appeal also sought to force the FCC to grant leased access complaints if no action is taken within 90 days. UCC filed in the U.S. Court of Appeals for the 6^th Circuit.

Talkback

» Submit Feedback

• 
  

  Let me chime in as president of the leased access programmers association. The statement, “Leased access hasn’t been a raging success because the concept of programmers paying cable providers is at odds with the cable business model of operators paying programmers like ESPN and C-SPAN to license their services,”
  doesn’t accurately portray the reality. The same business principles that are used to publish ‘controlled circulation’ newspapers using bulk mail for distribution work equally as well for leased access.
  We buy raw airtime, add value, and resell it to advertisers, the same as a FREE newspaper. For years cable didn’t see value in local programming but in recent years they have discovered selling airtime to local businesses is profitable. This is why they want to place leased access on Premium channels and keep their local origination channels on basic and why they charge local businesses less for airtime than the law permits them to charge for leased access.
  The LAPers (leased access programmers) who have legitimate business models do make money and cable knows it.

  
  

  
  Charlie Stogner - 3/13/2008 7:35:00 PM EDT
» Submit Feedback

Related Content

• Topics
• Author

New Leased Access Rules Released By FCC

02/03/2008

NCTA Asks FCC To Stay Leased Access Rules

03/28/2008

Verizon Appeals FCC’s Leased Access Rules

04/08/2008

FCC: Time Warner Must Stop Charging StogMedia Fees For Leased Access Programming

06/16/2009

Verizon Joins Access Lawsuit

04/13/2008

Also by this author

• Lincoln Heights

• Solution Driver: Payne: Cox’s Programming Dealmaker

• DTV Delay Gains Ground

• FCC: Cable Rates Up 122% Since 1995

• Martin's Parting Shot

More >>>

Product Wire

• Resource Center
• Browse Categories
• Browse Companies

Featured Company

• Parks Associates

  

  Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups throug..more

---

Most Recent Resources

• Robust Encoding, Transcoding and Streaming Systems – Critical B..
• Broadband Services: The Turning Point
• IPTV and the Digital Home
• Fixing The Annual Rate Adjustment Planning & Execution Process
• Webcast: IDC assesses the Online HD video opportunity with CTV & ..