Media Contact:
Janice Wise, (202) 418-8165
janice.wise@fcc.gov
For Immediate Release
FCC ADOPTS NEW MARKET MODIFICATION RULES TO ADDRESS ORPHAN
COUNTIES, INITIATES REVIEW OF TOTALITY OF CIRCUMSTANCES TEST FOR
RETRANSMISSION CONSENT NEGOTIATIONS
Commission Actions Meet STELAR Act Statutory Deadline
WASHINGTON, September 2, 2015 - Today, the Federal Communications Commission moved forward
on two actions that modernize the Commission's rules to reflect the current media landscape and better
serve consumers. First, the Commission adopted new rules that allow modification of satellite television
markets to help ensure that satellite operators carry the broadcast stations of most interest to the
community. The Commission also adopted today a proposal that initiates the review of the so-called
totality of the circumstances test for evaluating whether broadcasters, cable television operators and
satellite television carriers are negotiating for retransmission consent in good faith.
Today's actions implement two statutory requirements in the bipartisan Satellite Television Extension and
Localism Act Reauthorization (STELAR) Act of 2014 passed by Congress last year to modernize rules
regarding the satellite, cable, and broadcast television markets.
Last week, the Downloadable Security Technology Advisory Committee (DSTAC) submitted to the
Commission a report that recommends technical standards for a downloadable security system designed
to promote the competitive availability of navigation devices. STELAR required that these three actions
be completed by September 4, 2015.
Television Market Modification Order
The new satellite market modification rules are largely modeled on the existing process for cable
operators, which have been in place since 1992, while also addressing the unique nature of satellite
television service, such as allowing for exceptions if the resulting carriage is not technically and
economically feasible by means of existing satellites. In certain multistate Designated Market Areas
( DMAs ), satellite subscribers located in out-of-state counties within a DMA are sometimes unable to
receive in-state broadcast television stations and therefore may lack access to in-state news, sports, public
affairs, political information, and emergency information.
The STELAR Act addresses this so-called orphan county problem by allowing the Commission to
modify, upon the request of a television station, satellite operator, or county government, a particular
commercial television broadcast station's local television market to add or delete communities to better
reflect market realities. As required by the STELAR Act, the Commission determines whether to grant a
market modification based on consideration of five statutory factors that allow petitioners to demonstrate
that they provide local service to the community. Significantly, Congress included a factor requiring
consideration of access to television stations that are located in the same state as the community
considered for modification.
Action by the Commission: Commissioner O'Rielly approving in part, dissenting in part, and issuing a
statement. September 2, 2015, by Report and Order (FCC 15-111). This item has not yet been released.
Retransmission Consent NPRM
The Retransmission Consent NPRM initiates a review of the so-called totality of the circumstances test
for evaluating whether broadcast television stations and MVPDs, such as cable television operators and
satellite television carriers, are negotiating for retransmission consent in good faith. The NPRM
undertakes a robust examination of practices used by parties in retransmission consent negotiations, as
directed by Congress. The goal of the proposed rulemaking is to ensure that these negotiations are
conducted fairly and in a way that benefits consumers of video programming service.
Action by the Commission September 2, 2015, by NPRM (FCC 15-109).
###
Office of Media Relations: (202) 418-0500
TTY: (888) 835-5322
Twitter: @FCC
www.fcc.gov/office-media-relations
This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes
official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
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