Comcast 2015 Annual Report Download - page 18

Legislation and Regulation
The Communications Act of 1934, as amended (the “Communications Act”), and FCC regulations and poli-
cies affect significant aspects of our businesses. Our businesses are also subject to other regulation by
federal, state, local and foreign authorities and to agreements we enter into with local cable franchising
authorities. In addition, we must comply with the terms, conditions and commitments of the FCC Order that
approved the NBCUniversal transaction in 2011 (the “NBCUniversal Order”) and a consent decree entered
into between us, the Department of Justice (“DOJ”) and five states (the “NBCUniversal Consent Decree”),
which contain conditions and commitments of varying duration, ranging from three to seven years after Sep-
tember 2011.
Legislators and regulators at all levels of government frequently consider changing, and sometimes do
change, existing statutes, rules or regulations, or interpretations of existing statutes, rules or regulations, or
prescribe new ones, any of which may significantly affect our businesses. In addition, the FCC and certain
states are becoming more active in considering rulemakings and legislation, as well as in conducting inquiries
and reviews, regarding our services. Any future legislative, judicial, regulatory or administrative actions may
increase our costs or impose additional restrictions on our businesses, some of which may be significant. For
example, in February 2015, the FCC adopted new “open Internet” regulations that reclassify broadband Inter-
net access service as a “telecommunications service” and subject it to certain common carrier regulations
under Title II of the Communications Act. In addition, in February 2015, the FCC preempted certain state laws
that had restricted municipalities from operating municipally owned broadband networks. See “Cable
Communications Segment — High Speed Internet Services” below. Congress also is expected to consider
proposals to address communications issues, including whether it should rewrite the entire Communications
Act to account for changes in the communications marketplace, whether it should address the FCC’s author-
ity to implement or enforce open Internet regulations, and whether it should modify rules relating to cable
distribution of local broadcast television stations. We are unable to predict the effects of any of these or any
other further regulatory or legislative requirements on our businesses.
The following paragraphs summarize material existing and potential future legal and regulatory requirements
affecting our businesses, although reference should be made to the Communications Act, FCC regulations,
the NBCUniversal Order, the NBCUniversal Consent Decree, and other legislation and regulations for further
information.
Cable Communications Segment
Video Services
Program Carriage
Cable operators and other multichannel video providers are prohibited from requiring a financial interest in, or
exclusive distribution rights for, a video programming network as a condition of carriage. FCC regulations, as
well as the NBCUniversal Order, also prohibit us from unreasonably restraining the ability of an unaffiliated
video programming network to compete fairly by discriminating against the network on the basis of its non-
affiliation in the selection, terms or conditions for its carriage. The FCC is considering proposals to further
expand program carriage regulations that may be disadvantageous to us. We have been involved in program
carriage disputes at the FCC in the past and may be subject to complaints in the future.
Must-Carry/Retransmission Consent
Cable operators are required to carry, without compensation, programming transmitted by most local com-
mercial and noncommercial broadcast television stations. As an alternative to this “must-carry” requirement,
local broadcast television stations may choose to negotiate with the cable operator for “retransmission
consent,” under which the station gives up its must-carry rights and instead seeks to negotiate a carriage
15 Comcast 2015 Annual Report on Form 10-K