Beach Communications, Inc. v. Federal Communications Commission

959 F.2d 975, 294 U.S. App. D.C. 377
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 6, 1992
DocketNo. 91-1089
StatusPublished
Cited by1 cases

This text of 959 F.2d 975 (Beach Communications, Inc. v. Federal Communications Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beach Communications, Inc. v. Federal Communications Commission, 959 F.2d 975, 294 U.S. App. D.C. 377 (D.C. Cir. 1992).

Opinions

HARRY T. EDWARDS, Circuit Judge:

This case involves a challenge to a Federal Communications Commission (“FCC” or “Commission”) construction of the Cable Communications Policy Act of 1984 (“Cable Act”). According to the FCC, the Cable Act covers Satellite Master Antenna Television (“SMATV”) facilities with wires interconnecting separately owned, controlled and managed multiple-unit dwellings, even when the wires do not use public rights-of-way. SMATV companies petition for review, arguing that the Commission has misinterpreted the statute, and that local franchising (as may be required pursuant to the Cable Act) violates their First Amendment and equal protection rights.

We reject petitioners’ statutory challenge, for the plain language of the Cable Act defines the disputed SMATV facilities as “cable systems,” and that definition is consistent with the legislative history as well as the preexisting regulatory regime.

As for petitioners’ First Amendment claim, we find it unfit for judicial decision under Abbott Laboratories v. Gardner, 387 U.S. 136, 87 S.Ct. 1507, 18 L.Ed.2d 681 (1967), and therefore unripe. The Cable [379]*379Act requires every cable operator to have a local franchise, but gives each locality the discretion to create its own franchising regime. We cannot find the statute unconstitutional on its face, because we do not know whether conditions in any given locality will justify a burden on petitioners’ speech, nor do we know what kind of burden will need to be justified, nor the appropriate First Amendment standard. Thus, we cannot assess any claim of First Amendment infringement absent an as-applied challenge to some specific franchising requirement. Since petitioners present no such claims in this appeal, we dismiss this portion of the case as unripe.

We cannot dispose of petitioners’ equal protection challenge so easily, for it raises a “purely legal” issue that is ripe for judicial review and, also, poses a serious constitutional problem. Normally, in considering the constitutionality of a statute, we seek a reasonable reading that avoids constitutional infirmities. See Edward J. DeBartolo Corp. v. Florida Gulf Coast Bldg. & Constr. Trades Council, 485 U.S. 568, 108 S.Ct. 1392, 99 L.Ed.2d 645 (1988). Here, however, we face seemingly insurmountable difficulties in achieving this goal. Under the FCC’s construction of the Cable Act, a video transmission facility is not a “cable system” if the facility’s wires are internal to multiple-unit dwellings, or if the interconnected buildings are commonly owned, controlled or managed and the wires do not use public rights-of-way. We see no “rational basis” for the distinction between these two types of exempted facilities and SMATV facilities that interconnect separately owned, controlled and managed buildings without using rights-of-way. Absent some rational basis for this statutory distinction, petitioners’ equal protection challenge may have merit. Because the record is lacking on this point, we remand for supplementation by the FCC.

I. Background

The traditional cable television system receives signals at a remote location and transmits them throughout a community via a network of wires that use local rights-of-way. The Cable Act provides the framework for local franchising of this sort of system. SMATV is smaller than traditional cable systems, for it usually involves a single building or building complex that is wired to a satellite antenna. The question here is whether the Cable Act covers a SMATV facility located wholly on private property and, if so, whether the Constitution permits such coverage. The regulatory history of cable franchising helps clarify this question, and we briefly review it.

Prior to the Cable Act, the FCC regulated cable television without a specific governing statute. The Commission had evolved a dual regime for “cable systems,” which were defined as:

non-broadcast facilitpes] consisting of a set of transmission paths and associated signal generation, reception, and control equipment ... but such term shall not include ... any such facility that serves or will serve only subscribers in one or more multiple unit dwellings under common ownership, control, or management.

47 C.F.R. § 76.5(a) (1984). State and local governments were given the task of franchising cable systems, while the FCC had exclusive jurisdiction over signal carriage, technical standards and other operational matters. See generally New York State Comm’n on Cable Television v. FCC, 749 F.2d 804, 807-11 (D.C.Cir.1984) (general history of dual regime). This was so because “conventional licensing would [have] place[d] an unmanageable burden on the Commission. Moreover, local governments are inescapably involved in the process because cable makes use of streets and ways____” Cable Television Report & Order, 36 F.C.C.2d 143, 207 (1972).

The FCC’s original definition of cable systems included the so-called “private cable” exemption, for facilities that served “only subscribers in one or more multiple unit dwellings under common ownership, control, or management.” This provision was originally designed for Master Antenna Television (“MATV”) systems, which receive and redistribute normal broadcast signals. On its face, 47 C.F.R. § 76.5(a) exempted two kinds of MATV systems. [380]*380The first was a system where the wires were confined to a single multiple-unit dwelling: for example, a MATV antenna on the roof of an apartment house, wired only to apartments in that building. The second was a system where the wires connected a group of buildings that were commonly owned, controlled or managed: for example, a MATV facility for a single apartment complex. Conversely, the language did not cover a system interconnecting apartment buildings that were separately owned, controlled or managed. And, indeed, the FCC interpreted its definition of a “cable system” to exempt the first two kinds of MATV facilities, and to include the third. See generally In re Amendment of Part 76, 54 F.C.C.2d 824, 826-27 (1975) (notice of rulemaking); In re Amendment of Part 76, 63 F.C.C.2d 956, 990-97 (1977).

During this pre-Cable Act period, new alternatives to traditional cable television began to emerge. One such alternative was SMATV; another was multipoint distribution (“MDS”) via microwaves. In 1978, the FCC preempted local franchising of a MDS system that beamed microwaves from the Empire State Building to rooftop antennae. See In re Orth-O-Vision, 69 F.C.C.2d 657 (1978), reconsideration denied, 82 F.C.C.2d 178 (1980), review denied sub nom. New York State Comm’n on Cable Television v. FCC, 669 F.2d 58 (2d Cir.1982). Several years later, in In re Cable Dallas, Inc., 93 F.C.C.2d 20 (1983), the FCC decided that a SMATV system serving a “cluster[] of apartment buildings, ... composed of buildings not under common ownership, management, or control,” id. at 21, was a “cable system.” However, the Commission ruled that the franchising of a single-building SMATV system was preempted. See In re Earth Satellite Communications, Inc., 95 F.C.C.2d 1223 (1983), aff'd sub nom. New York State Comm’n on Cable Television v. FCC, 749 F.2d 804 (D.C.Cir.1984).

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959 F.2d 975, 294 U.S. App. D.C. 377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beach-communications-inc-v-federal-communications-commission-cadc-1992.