Goto Section: 76.504 | 76.601 | Table of Contents
Revised as of October 1, 2014
Goto Year:2013 |
§ 76.505 Prohibition on buy outs.
(a) No local exchange carrier or any affiliate of such carrier owned
by, operated by, controlled by, or under common control with such
carrier may purchase or otherwise acquire directly or indirectly more
than a 10 percent financial interest, or any management interest, in
any cable operator providing cable service within the local exchange
carrier's telephone service area.
(b) No cable operator or affiliate of a cable operator that is owned
by, operated by, controlled by, or under common ownership with such
cable operator may purchase or otherwise acquire, directly or
indirectly, more than a 10 percent financial interest, or any
management interest, in any local exchange carrier providing telephone
exchange service within such cable operator's franchise area.
(c) A local exchange carrier and a cable operator whose telephone
service area and cable franchise area, respectively, are in the same
market may not enter into any joint venture or partnership to provide
video programming directly to subscribers or to provide
telecommunications services within such market.
(1) Notwithstanding paragraphs (a), (b), and (c) of this section, a
local exchange carrier (with respect to a cable system located in its
telephone service area) and a cable operator (with respect to the
facilities of a local exchange carrier used to provide telephone
exchange service in its cable franchise area) may obtain a controlling
interest in, management interest in, or enter into a joint venture or
partnership with the operator of such system or facilities for the use
of such system or facilities to the extent that:
(i) Such system or facilities only serve incorporated or unincorporated
(A) Places or territories that have fewer than 35,000 inhabitants; and
(B) Are outside an urbanized area, as defined by the Bureau of the
(ii) In the case of a local exchange carrier, such system, in the
aggregate with any other system in which such carrier has an interest,
serves less than 10 percent of the households in the telephone service
area of such carrier.
(2) Notwithstanding paragraph (c) of this section, a local exchange
carrier may obtain, with the concurrence of the cable operator on the
rates, terms, and conditions, the use of that part of the transmission
facilities of a cable system extending from the last multi-user
terminal to the premises of the end user, if such use is reasonably
limited in scope and duration, as determined by the Commission.
(3) Notwithstanding paragraphs (a) and (c) of this section, a local
exchange carrier may obtain a controlling interest in, or form a joint
venture or other partnership with, or provide financing to, a cable
system (hereinafter in this paragraph referred to as "the subject cable
(i) The subject cable system operates in a television market that is
not in the top 25 markets, and such market has more than 1 cable system
operator, and the subject cable system is not the cable system with the
most subscribers in such television market;
(ii) The subject cable system and the cable system with the most
subscribers in such television market held on May 1, 1995, cable
television franchises from the largest municipality in the television
market and the boundaries of such franchises were identical on such
(iii) The subject cable system is not owned by or under common
ownership or control of any one of the 50 cable system operators with
the most subscribers as such operators existed on May 1, 1995; and
(iv) The system with the most subscribers in the television market is
owned by or under common ownership or control of any one of the 10
largest cable system operators as such operators existed on May 1,
(4) Paragraph (a) of this section does not apply to any cable system
(i) The cable system serves no more than 17,000 cable subscribers, of
which no less than 8,000 live within an urban area, and no less than
6,000 live within a nonurbanized area as of June 1, 1995;
(ii) The cable system is not owned by, or under common ownership or
control with, any of the 50 largest cable system operators in existence
on June 1, 1995; and
(iii) The cable system operates in a television market that was not in
the top 100 television markets as of June 1, 1995.
(5) Notwithstanding paragraphs (a) and (c) of this section, a local
exchange carrier with less than $100,000,000 in annual operating
revenues (or any affiliate of such carrier owned by, operated by,
controlled by, or under common control with such carrier) may purchase
or otherwise acquire more than a 10 percent financial interest in, or
any management interest in, or enter into a joint venture or
partnership with, any cable system within the local exchange carrier's
telephone service area that serves no more than 20,000 cable
subscribers, if no more than 12,000 of those subscribers live within an
urbanized area, as defined by the Bureau of the Census.
(6) The Commission may waive the restrictions of paragraphs (a), (b),
or (c) of this section only if:
(i) The Commission determines that, because of the nature of the market
served by the affected cable system or facilities used to provide
telephone exchange service:
(A) The affected cable operator or local exchange carrier would be
subjected to undue economic distress by the enforcement of such
(B) The system or facilities would not be economically viable if such
provisions were enforced; or
(C) The anticompetitive effects of the proposed transaction are clearly
outweighed in the public interest by the probable effect of the
transaction in meeting the convenience and needs of the community to be
(ii) The local franchising authority approves of such waiver.
(e) For purposes of this section, the term "telephone service area"
when used in connection with a common carrier subject in whole or in
part to title II of the Communications Act means the area within which
such carrier provided telephone exchange service as of January 1, 1993,
but if any common carrier after such date transfers its telephone
exchange service facilities to another common carrier, the area to
which such facilities provide telephone exchange service shall be
treated as part of the telephone service area of the acquiring common
carrier and not of the selling common carrier.
(f) For purposes of this section, entities are affiliated if either
entity has an attributable interest in the other or if a third party
has an attributable interest in both entities.
(g) Attributable interest shall be defined by reference to the criteria
set forth in Notes 1 through 5 to § 76.501.
[ 61 FR 18977 , Apr. 30, 1996, as amended at 64 FR 67196 , Dec. 1, 1999]
return arrow Back to Top
Subpart K--Technical Standards
return arrow Back to Top
Goto Section: 76.504 | 76.601
Goto Year: 2013 |
CiteFind - See documents on FCC website that
cite this rule
Want to support this service?
Report errors in
this rule. Since these rules are converted to HTML by machine, it's possible errors have been made. Please
help us improve these rules by clicking the Report FCC Rule Errors link to report an error.
Helping make public information public