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z?d104:SN00652:@@@D at thomas.loc.gov Page 11 of 16 Exempts from certain cable rate regulation provisions small cable operators (serving fewer than one percent of all cable subscribers in the United States, serving no more than 50,000 • subscribers, and not affiliated with any entity whose gross annual revenues exceed $250 million). Revises provisions with respect to cable TV market determinations, requiring an expedited decisionmaking process. Prohibits any State or franchising authority from restricting in any way a cable system's use of any type of subscriber equipment or transmission technology. Sets forth provisions with respect to: (1) cable equipment compatibility; and (2) subscriber notice (allowing any reasonable means at the cable operator's discretion). Repeals anti-trafficking restriction provisions of the Act. Directs the FCC to allow cable operators to aggregate equipment costs into broad categories, regardless of the function levels of such equipment within such categories. Provides for the treatment of prior-year losses of a cable system. (Sec. 302) Subjects common carriers providing video programming to subscribers using radio communications to the requirements of title III and to the ownership and joint venture restrictions set forth in the following paragraph, but not to other requirements of title VI of the Act. States that such carriers providing such programming on a common carrier basis shall be subject to such requirements and restrictions, but not to other requirements of title VI. Allows such carrier to elect to provide such programming by means of an open video system, stating that such a provider need not make capacity available on a nondiscriminatory basis to any other person for the provision of cable service directly to subscribers. Prohibits any LEC or affiliate from purchasing or otherwise acquiring more than a ten percent • financial interest, or any management interest, in any LEC providing telephone exchange service within such cable operator's franchise area. Prohibits an LEC and a local cable operator from entering into a joint venture to provide video programming directly to subscribers or to provide telecommunications services within such market. Provides exceptions, including exceptions for joint ventures in rural areas,joint use of transmission facilities in limited circumstances, acquisitions made in competitive markets, exempt cable systems (cable systems serving less than 17,000 subscribers, with other restrictions), and small cable systems located in nonurban areas. Authorizes the FCC to waive such financial interest or joint venture restrictions in cases of undue economic distress, economic viability, anticompetitive effects of such restrictions, or when the local franchising authority approves such waiver. Authorizes an LEC to provide cable service to its subscribers through an open video system that complies with this section. Outlines, with respect to the provision of such service through such system, provisions concerning: (1) certificates of compliance; (2) dispute resolution; (3) FCC regulations; (4) consumer access; (5) reduced regulatory burdens for such systems; and (6) FCC implementation of appropriate rules and regulations within six months after the enactment of this Act. States that an operator of an open video system may be subject to the payment of fees based on gross revenues in lieu of cable TV franchising fees. (Sec. 303) Sets forth provisions regarding preemption of franchising authority regulation of telecommunications services. Prohibits a franchising authority from ordering a cable operator to discontinue the provision of a telecommunications service or a cable system to the extent it is used to provide a telecommunications service by reason of the failure of the cable operator to 1110 obtain a franchise or franchise renewal for the provision of such service. Prohibits a franchising authority from requiring a cable operator to provide any telecommunications service or facilities, other than institutional networks, as a condition of the initial grant of a franchise, http://thomas.loc.gov/cgi-bin/bdquery/z?d104:SNO0652:@@@D 12/11/96