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contribute to the interstate Telecommunications Relay Service Fund to support such access. These requirements generally
have had the effect of increasing the cost of providing VoIP services.
Service Discontinuance and Outage Obligations. In 2009, the FCC adopted rules subjecting providers of
interconnected VoIP services to the same service discontinuance requirements applicable to providers of wireline
telecommunication services. In 2012, the FCC adopted mandatory outage reporting requirements for interconnected
VoIP service providers, which apply when customers of interconnected VoIP service lose service or connectivity
and, as a result, are unable to access 911 service. Along with other FCC actions described in this section, which
impose legacy telecom obligations on interconnected VoIP providers, this development will subject the Company’s
interconnected VoIP services to greater regulation and, therefore, greater burdens and costs.
Regulatory Fees. The FCC requires interconnected VoIP service providers to contribute to shared costs of FCC regulation
through an annual regulatory fee assessment. These fees have increased Cable ONE’s cost of providing VoIP services. In
2012, the FCC initiated a proceeding to reform the regulatory fee regime in light of marketplace changes. The Company
cannot predict when or the extent to which the FCC will adopt new rules.
Local Number Portability. Providers of interconnected VoIP services and their “numbering partners” must ensure that
their subscribers have the ability to port their telephone numbers when changing service providers. Cable ONE, along
with other providers of interconnected VoIP service, must contribute funds to cover the shared costs of local number
portability and the costs of North American Numbering Plan Administration. The FCC currently is considering whether
additional numbering requirements, such as allowing consumers access to abbreviated dialing codes like 211 and 311,
should be applied to interconnected VoIP service providers. Although consumers’ ability to port their existing telephone
numbers to interconnected VoIP service has created additional opportunities for Cable ONE to gain voice customers, the
local number portability and associated rules overall have had the effect of increasing the cost of providing VoIP service.
Regulatory Reform. The FCC recently initiated proceedings to address requests to end or alter regulation of certain
traditional telecommunications networks. The requests ask the FCC to take a variety of actions to change the nature and
manner in which these networks are regulated. The issues raised in these requests are driven in part by changes in
technology. The Company cannot predict whether or to what extent the FCC will act on these requests or how that will
affect the Company’s business.
Rural Calling Issues. The FCC recently adopted new rules to combat problems with the completion of long-distance
calls to rural areas. The new rules apply detailed record keeping, record retention and reporting requirements on all voice
providers, including VoIP service providers, subject to certain exceptions. The rules also prohibit VoIP service providers
(and other voice providers) from using false audible ringing when originating calls. Compliance with these new rules
could have the effect of increasing the cost of providing VoIP services.
Reporting Requirements for Special Access Services. The FCC has initiated a proceeding to collect certain data to
evaluate its special access rules. As part of that proceeding, the FCC has imposed a mandatory data collection
obligation on all providers and purchasers of special access services as well as some entities that provide best efforts
business broadband Internet access services, which includes Cable ONE. Cable ONE cannot predict whether or how
compliance with the data collection requirements will affect its operations and business.
Television Broadcasting
Post–Newsweek Stations, Inc. (PNS), a subsidiary of the Company, owns six television stations located in Houston, TX;
Detroit, MI; Miami, FL; Orlando, FL; San Antonio, TX; and Jacksonville, FL. The following table sets forth certain
information with respect to each of the Company’s television stations:
Station Location and
Year Commercial
Operation
Commenced
National
Market
Ranking (a)
Primary
Network
Affiliation
Expiration
Date of FCC
License (b)
Expiration
Date of
Network
Agreement
Total
Commercial
Stations
in DMA (c)
KPRC, Houston, TX, 1949 10th NBC Aug. 1, 2014 Dec. 31, 2016 14
WDIV, Detroit, MI, 1947 11th NBC Oct. 1, 2013 Dec. 31, 2016 8
WPLG, Miami, FL, 1961 16th ABC Feb. 1, 2021 Dec. 31, 2015 13
WKMG, Orlando, FL, 1954 18th CBS Feb. 1, 2021 Apr. 6, 2015 13
KSAT, San Antonio, TX, 1957 36th ABC Aug. 1, 2014 Dec. 31, 2015 11
WJXT, Jacksonville, FL, 1947 48th None Feb. 1, 2021 7
(a) Source: 2013/2014 DMA Market Rankings, Nielsen Media Research, fall 2013, based on television homes in DMA (see note (c) below).
(b) A license renewal application was timely filed for WDIV.
(c) Designated Market Area (DMA) is a market designation of A.C. Nielsen that defines each television market exclusive of another, based on measured viewing patterns.
2013 FORM 10-K 17