Teleprompter Cable Communications Corp. v. Federal Communications Commission

565 F.2d 736, 184 U.S. App. D.C. 161
Court of Appeals for the D.C. Circuit·Decided September 19, 1977·No. No. 75-1563·Published·Cited by 1 cases

Opinion

Opinion for the Court filed by ROBB, Circuit Judge.

ROBB, Circuit Judge.

This is a petition for review of orders of the Federal Communications Commission refusing to authorize the carriage of the signals of certain Los Angeles, California television stations on the petitioner’s cable television systems at Reno-Sparks, Nevada. We reverse.

On October 25,1966 Community Antenna Company, the predecessor of our petitioner Teleprompter Cable Communications Corporation, notified the Federal Communications Commission that it intended to begin carrying the signals of four Los Angeles non-network television stations on its Reno-Sparks, Nevada community antenna (CATV) systems. On November 22, 1966 Washoe Empire, licensee of television station KTVN in Reno, filed a petition for special relief under what was then section 74.1109 of the Commission’s rules, requesting that the Commission either defer authorization of the Los Angeles signals until a reasonable time after KTVN commenced operations, or set the matter for hearing.

In 1966 it was the position of the Commission that importation of distant television signals in the 100 largest markets should be limited, so as to encourage the growth of non-network television stations. Accordingly the importation of distant signals into a “top 100 market” was not permitted unless the Commission made a positive determination that it would be consistent with the public interest. 31 Fed.Reg. § 4572 (1966). In contrast CATV systems proposing service in markets below the top 100 were generally free to proceed, after notice to local stations and without awaiting a hearing. An affected station might present a petition for special relief under section 74.1109 of the Commission’s rules. 31 Fed.Reg. § 4572 (1966). The rule placed upon the petitioner the burden of stating facts to demonstrate both the need for the requested relief and that granting it would serve the public interest. Pikes Peak Broadcasting Co. v. F. C. C., 137 U.S.App.D.C. 234, 237-39, 422 F.2d 671, 674-75, cert. denied, 395 U.S. 979, 89 S.Ct. 2134, 23 L.Ed.2d 767 (1969). Because Reno-Sparks was and has always been a smaller television market the rule imposed this burden on Washoe Empire.

On April 4, 1967 the Commission denied Washoe Empire’s petition for special relief and authorized carriage of the Los Angeles signals on the Reno-Sparks cable system. Community Antenna Co., 7 F.C.C.2d 617 (1967) (Community 67). The Commission referred to its policy judgment in its Second Report and Order, 2 F.C.C.2d 725 (1966), that the need for limiting cable operations in television markets below the top 100 was not as great as it was in the case of the top 100 markets; and the Commission held that Washoe Empire had not sufficiently documented its argument that Community’s proposed additional signals would threaten the continued operation of Washoe Empire’s station. Accordingly, the Commission authorized Community’s proposed operations as consistent with the public interest. No stay of the Commission’s decision was requested or granted.

Although the Commission on April 4, 1967 authorized Community to carry the four Los Angeles signals, carriage of those signals in the Reno-Sparks area depended upon the Commission’s approval of microwave relay service to the area. At the time of the Commission’s decision in Community 67 an application by TransAmerican Microwave, Inc., a common carrier, for authority [164]*164to deliver the signals to Reno-Sparks by microwave, was pending before the Commission. Subsequently two other mutually exclusive microwave applications by common carriers were filed.

On November 9, 1966 Circle L, Inc., the licensee of Reno television station KCRLTV filed a petition to deny TransAmerican’s application. 47 U.S.C. § 309(d). The petition to deny included a study by Dr. Martin H. Seiden which focused on the impact that the Los Angeles signals would have on KCRL if they were carried on the Reno-Sparks cable system. Subsequently, on May 4,1967 Circle L, Inc. filed a petition asking the Commission to reconsider and set aside the Community 67 decision of April 4, 1967. The Circle L petition requested the Commission to consolidate for consideration all pending pleadings relating to the impact of the proposed importation of the four Los Angeles signals, and to consider in particular the report of Dr. Seiden. Circle L relied upon the Seiden report as evidence of the injury to the Circle L station that would result from granting the authority sought by Community. On May 5,1967, one day after the statutory deadline for filing, Washoe Empire filed its petition for reconsideration in the Community case.

The petitions for reconsideration of the April 1967 Community decision remained pending before the Commission until 1974. In the interim, however, on December 12,1968 the Commission gave notice of a rulemaking proceeding in which it proposed to limit CATV systems in a smaller television market to carriage of only those distant signals necessary to bring to the systems’ subscribers the signals of three full network stations and one independent station. Notice of Proposed Rulemaking and Notice of Inquiry, Docket 18397, 15 F.C. C.2d 417, 440 (Dec. 12, 1968). On February 3, 1972 the Commission adopted this proposed rule for smaller television markets. Cable Television Report and Order, 36 F.C.C.2d 143, 177 (1972); see 47 C.F.R. § 76.59. Thus the Commission retreated from the liberal distant signal policy for smaller television markets reflected in the 1966 rules. Moreover the new rule placed on the cable operator seeking an exception to the limitation on distant signals the burden of showing that carriage of more than one independent signal would serve the public interest. Under the 1966 rule, as we have said, an objecting station filing a petition for special relief had the burden of showing that the relief was needed and in the public interest. However, the 1972 rule contained a “grandfathering” provision, that it “shall not be deemed to require the deletion of any television broadcast or translator signals which a cable television system was authorized to carry or was lawfully carrying prior to March 31, 1972 . . . ” 47 C.F.R. § 76.-65.

Teleprompter, the successor of Community, took the position that the “grandfathering” provision applied to it, because the Commission on April 4, 1967 denied Washoe Empire’s petition for relief and by its order specifically “authorized [Teleprompter] to operate its Reno and Sparks, Nevada, CATV systems as proposed in its section 74.1105 notification of October 20, 1966.” Memorandum Opinion and Order, FCC 67-398 (J.A. 77, 78). Accordingly, on May 9, 1972 Teleprompter filed applications for certificates of compliance under the Commission’s new rules.1 Circle L and Washoe Empire filed oppositions to the applications.

On June 13,1974 the Commission granted the Washoe Empire2 and Circle L petitions for reconsideration of the Community 67 [165]*165decision, reversed that decision, withdrew the authorization granted Community in 1967, and denied Teleprompter’s applications for certificates of compliance. In Re Applications of Community Antenna Co.,

Free access — add to your briefcase to read the full text and ask questions with AI

Teleprompter Cable Communications Corp. v. Federal Communications Commission, 565 F.2d 736, 184 U.S. App. D.C. 161 (D.C. Cir. 1977).

565 F.2d 736 (Teleprompter Cable Communications Corp. v. Federal Communications Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related