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United States Government Accountability Office Washington, DC 20548 B-310949 January 18, 2008 The Honorable Daniel K. Inouye Chairman The Honorable Ted Stevens Ranking Minority Member Committee on Commerce, Science, and Transportation United States Senate The Honorable John D. Dingell Chairman The Honorable Joe Barton Ranking Minority Member Committee on Energy and Commerce House of Representatives Subject: Federal Communications Commission: Exclusive Service Contracts for Provision of Video
    United Stats Government Accountability Office WashingtonDC 20548e, B-310949 January 18, 2008The Honorable Daniel K. InouyeChairmanThe Honorable Ted StevensRanking Minority MemberCommittee on Commerce, Science, and TransportationUnited States SenateThe Honorable John D. DingellChairmanThe Honorable Joe BartonRanking Minority MemberCommittee on Energy and CommerceHouse of RepresentativesSubject: Federal Communications Commsson: Exclusive Service Contracts for Provision of Video Services in Multiple Dwelng Units and Other Real Estate Developments    ii li   Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on amajor rule promulgated by the Federal Communications Commission (Commission),entitled “Exclusive Service Contracts for Provision of Video Services in MultipleDwelling Units and Other Real Estate Developments” (FCC 07-189). We received therule on December 20, 2007. It was published in the Federal Register  as a final rule on January 7, 2008. 73 Fed. Reg. 1080. The rule has a stated effective date of March 7,2008.The final rule prohibits the enforcement of existing exclusivity clauses and theexecution of new exclusivity clauses in contracts between cable operators that provide video programming service and certain residential units. The types of unitscovered by this rule are multiple dwelling units such as apartment or condominiumbuildings and centrally managed real estate developments such as gatedcommunities, mobile home parks, and garden apartments (collectively, MDUs). TheCommission concludes that such exclusivity agreements harm competition, the provision of programming to MDU residents, and broadband development.Enclosed is our assessment of the Commission’s compliance with the proceduralsteps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the GAO-08-406R  rule. Our review indicates that the Commission complied with the applicablerequirements.If you have any questions about this report, please contact Michael R. Volpe, Assistant General Counsel, at (202) 512-8236. The official responsible for GAOevaluation work relating to the subject matter of the rule is Patricia Dalton,Managing Director, Physical Infrastructure. Ms. Dalton can be reached at(202) 512-2834.signedRobert J. Cramer Associate General CounselEnclosurecc: Thomas HoranChief of Staff, Media BureauFederal Communications Commission Page 2 GAO-08-406R    ENCLOSUREREPORT UNDER 5 U.S.C. § 801(a)(2)(A) ON A MAJOR RULEISSUED BY THEFEDERAL COMMUNICATIONS COMMISSIONENTITLED EXCLUSIVE SERVICE CONTRACTS FOR PROVISION OF VIDEO SERVICES IN MULTIPLE DWELLING UNITS ANDOTHER REAL ESTATE DEVELOPMENTS (FCC 07-189)(i) Cost-benefit analysisThe Federal Communications Commission (Commission) is not required to prepareand did not prepare a cost-benefit analysis for the final rule.(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. §§ 603–605,607, and 609The Commission prepared a Final Regulatory Flexibility Analysis of the possiblesignificant economic impact on small entities.(iii) Agency actions relevant to sections 202–205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. §§ 1532–1535 As an independent regulatory agency, the Commission is not subject to theUnfunded Mandates Reform Act of 1995.(iv) Other relevant information or requirements under acts and executive orders Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.On March 27, 2007, the Commission published a Notice of Proposed Rulemaking forthis final rule in the Federal CommunicationsCommsson Record  . 22 FCC Rcd.5935. In the final rule, the Commission responded to the comments received inresponse to the proposed rule. 73 Fed. Reg. 1082–88. ii   Paperwork Reduction Act, 44 U.S.C. §§ 3501–3520This final rule does not contain any new or modified information collectionrequirements subject to the Act. GAO-08-406R  Statutory authorization for the ruleThe Commission promulgated this final rule pursuant to the authority in sections628(b), 628(c)(1), and 628(j) of the Communications Act of 1934. 47 U.S.C. §§ 548(b),548 (c)(1), and 548(j).Executive Order No. 12,866 As an independent regulatory agency, the Commission is not subject to the reviewrequirements of the order. Page 2 GAO-08-406R
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