Sec.  73.642   Subscription TV service.

   (a) Subscription TV service may be provided by:

   (1) Licensees and permittees of commercial and noncommercial TV stations,
   and

   (2) Licensees and permittees of low power TV stations.

   (b) A licensee or permittee of a commercial or noncommercial TV station or a
   low power TV station may begin subscription TV service upon installation of
   encoding equipment having advance FCC approval. However, the licensee or
   permittee of a TV broadcast station (not applicable to low power TV
   stations) must send a letter to the FCC in Washington, DC, that subscription
   TV service will commence at least 30 days prior to commencement of such
   service. In that letter, to be entitled “Notice of Commencement of STV
   Operations,” the licensee or permittee is to state that it will comply with
   the provisions of paragraphs (e)(1) through (e)(3) and  Sec. 73.644(c) of this
   chapter and identify the make and type of encoding system to be used. A
   similar notice must be submitted if the licensee or permittee commences
   using another type of encoding system. (See section 644(h).) A notice must
   also be submitted to the FCC in Washington, DC, if encoded subscription TV
   service is to be discontinued, at least 30 days prior to such
   discontinuance.

   (c) The station proof of system compliance measurement data (see  Sec. 73.644(c))
   need not be submitted to the FCC, however, the measurement data must be
   available to the FCC upon request.

   (d) The use of the visual vertical blanking interval or an aural subcarrier
   for transmitting subscriber decoder control code signals during periods of
   normal non-encoded programming may be used only upon specific FCC
   authorization. Letter requests to use either the video blanking intervals or
   aural subcarriers during periods of non-subscription programming are to be
   sent to the FCC in Washington, D.C.

   (e) A licensee or permittee of a commercial or noncommercial TV broadcast or
   low power TV station may not transmit a subscription service if it has a
   contract, arrangement, or understanding expressed or implied, that:

   (1) Prevents or hinders it from rejecting or refusing any subscription TV
   broadcast program that it reasonably believes to be unsatisfactory or
   unsuitable or contrary to the public interests; or substituting a
   subscription or conventional program that, in its opinion, is of greater
   local or national importance; or

   (2) Delegates to any other person the right to schedule the hours of
   transmission of subscription programs. However, this rule does not prevent a
   licensee or permittee from entering into an agreement or arrangement whereby
   it agrees to schedule a specific subscription TV broadcast program at a
   specific time or to schedule a specific number of hours of subscription
   programs during the broadcast day (or segments thereof) or weeks; or

   (3) Deprives it of the right of ultimate decision concerning the maximum
   amount of any subscription program charge or fee.

   (4) Has provisions that do not comply with the following policies of the
   FCC:

   (i) Unless a satifactory signal is unavailable at the location where service
   is desired, subscription TV service must be provided to all persons desiring
   it within the Grade A contour of the station broadcasting subscription
   programs. Geographic or other reasonable patterns of installation for new
   subscription services is permitted and, for good cause, service may be
   terminated.

   (ii) Charges, terms and conditions of service to subscribers must be applied
   uniformly. However, subscribers may be divided into reasonable
   classifications approved by the FCC, and the impositions of different sets
   of terms and conditions may be applied to subscribers in different
   classifications. Further, for good cause, within such classification,
   deposits may be required from some subscribers and not of others; and, also
   for good cause, if a subscription system generally uses a credit-type
   decoder, cash operated decoders may be installed for some subscribers.

   [ 48 FR 56392 , Dec. 21, 1983, as amended at  52 FR 6154 , Mar. 2, 1987;  66 FR 58982 , Nov. 26, 2001]