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 5th 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 8th 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 6th Circuit.
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