§  76.503   National subscriber limits.

   (a) No cable operator shall serve more than 30 percent of all
   multichannel-video programming subscribers nationwide through
   multichannel video programming distributors owned by such operator or
   in which such cable operator holds an attributable interest.

   (b)-(d) [Reserved]

   (e) “Multichannel video-programming subscribers” means subscribers who
   receive multichannel video-programming from cable systems, direct
   broadcast satellite services, direct-to-home satellite services,
   BRS/EBS, local multipoint distribution services, satellite master
   antenna television services (as defined in §  76.5(a)(2)), and open
   video systems.

   (f) “Cable operator” means any person or entity that owns or has an
   attributable interest in an incumbent cable franchise.

   (g) Prior to acquiring additional multichannel video-programming
   providers, any cable operator that serves 20% or more of multichannel
   video-programming subscribers nationwide shall certify to the
   Commission, concurrent with its applications to the Commission for
   transfer of licenses at issue in the acquisition, that no violation of
   the national subscriber limits prescribed in this section will occur as
   a result of such acquisition.

   Note 1 to §  76.503: Certifications made under this section shall be
   sent to the attention of the Media Bureau, Federal Communications
   Commission, 445 12th Street, SW., Washington, DC 20554.

   Note 2 to §  76.503: Attributable Interest shall be defined by reference
   to the criteria set forth in Notes 1 through 5 to §  76.501 provided
   however, that:

   (a) Notes 2(f) and 2(g) to §  76.501 to shall not apply;

   (b)(1) Subject to Note 2(i) to §  76.501, a limited partnership interest
   shall be attributed to a limited partner unless that partner is not
   materially involved, directly or indirectly, in the management or
   operation of the video programming-related activities of the
   partnership and the relevant entity so certifies. An interest in a
   Limited Liability Company (“LLC”) or Registered Limited Liability
   Partnership (“RLLP”) shall be attributed to the interest holder unless
   that interest holder is not materially involved, directly or
   indirectly, in the management or operation of the video
   programming-related activities of the partnership and the relevant
   entity so certifies.

   (2) In the case of a limited partnership, in order for an entity to
   make the certification set forth in paragraph (b)(1) of this section,
   it must verify that the partnership agreement or certificate of limited
   partnership, with respect to the particular limited partner exempt from
   attribution, establishes that the exempt limited partner has no
   material involvement, directly or indirectly, in the management or
   operation of the video programming activities of the partnership. In
   the case of an LLC or RLLP, in order for an entity to make the
   certification set forth in paragraph (g)(1) of this section, it must
   verify that the organizational document, with respect to the particular
   interest holder exempt from attribution, establishes that the exempt
   interest holder has no material involvement, directly or indirectly, in
   the management or operation of the video programming activities of the
   LLC or RLLP. The criteria which would assume adequate insulation for
   purposes of these certifications are described in the Report and Order,
   FCC No. 99-288, CS Docket No. 98-82 (released October 20, 1999). In
   order for the Commission to accept the certification, the certification
   must be accompanied by facts, e.g. in the form of documents, affidavits
   or declarations, that demonstrate that these insulation criteria are
   met. Irrespective of the terms of the certificate of limited
   partnership or partnership agreement, or other organizational document
   in the case of an LLC or RLLP, however, no such certification shall be
   made if the individual or entity making the certification has actual
   knowledge of any material involvement of the limited partners, or other
   interest holders in the case of an LLC or RLLP, in the management or
   operation of the video-programming activities of the partnership or LLC
   or RLLP.

   (3) In the case of an LLC or RLLP, the entity seeking insulation shall
   certify, in addition, that the relevant state statute authorizing LLCs
   permits an LLC member to insulate itself as required by our criteria.

   (c) Officers and directors of an entity covered by this rule are
   considered to have a cognizable interest in the entity with which they
   are so associated. If any such entity engages in activities other than
   video-programming activities, it may request the Commission to waive
   attribution for any officer or director whose duties and
   responsibilities are wholly unrelated to the entity's video-programming
   activities. In the case of common or appointed directors and officers,
   if common or appointed directors or officers have duties and
   responsibilities that are wholly unrelated to video-programming
   activities for both entities, the relevant entity may request the
   Commission to waive attribution of the director or officer. The
   officers and directors of a parent company of a video-programming
   business, with an attributable interest in any such subsidiary entity,
   shall be deemed to have a cognizable interest in the subsidiary unless
   the duties and responsibilities of the officer or director involved are
   wholly unrelated to the video-programming subsidiary, and a
   certification properly documenting this fact is submitted to the
   Commission. The officers and directors of a sister corporation of a
   cable system shall not be attributed with ownership of that entity by
   virtue of such status.

   [ 64 FR 67195 , 67199, Dec. 1, 1999, as amended at  67 FR 13234 , Mar. 21,
   2002;  69 FR 72046 , Dec. 10, 2004;  73 FR 11050 , Feb. 29, 2008]

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