Washington Post 2012 Annual Report Download - page 30

In 2012, the FCC sought comment on proof of performance standards that would impose technical standards and signal
leakage rules, including new testing and documentation requirements, on digital cable systems. If adopted, these rules
could increase operational costs for cable operators. The Company cannot predict whether or to what extent the FCC will
adopt such rules.
The FCC also regulates various other aspects of cable television operations. Long-standing FCC rules require cable systems
to black out from certain distant broadcast stations the syndicated programs for which local stations have purchased
exclusive rights and requested exclusivity and to delete, under certain circumstances, duplicative network programs
broadcast by distant stations. Proposals to amend or repeal certain of these rules are pending before the FCC, but the
Company cannot predict whether, how or when the FCC will act on these proposals. The FCC also imposes certain
technical standards on cable television operators, exercises the power to license various microwave and other radio facilities
frequently used in cable television operations and regulates the assignment and transfer of control of such licenses.
Internet Access Services
In 2005, the U.S. Supreme Court upheld the FCC’s classification of Internet access service as an “information service.”
As a result, Internet access service is not subject to the full panoply of regulations that applies to “cable services” or
“telecommunications services” under the U.S. Federal Communications Act of 1934, as amended (the Communications
Act), nor is it subject to state or local government regulation. In response to the U.S. Supreme Court’s decision, the FCC
ruled that a telephone company’s offering of digital subscriber line (DSL) Internet access service and a mobile wireless
company’s offering of similar wireless broadband service also are “information services.”
Cable ONE currently offers broadband Internet access service on virtually all of its cable systems and is the sole Internet
service provider on those systems. Cable ONE does not restrict the websites that its broadband Internet access
subscribers may view; however, regulations that distinguish between interference with subscriber access and reasonable
network management are evolving and, over time, could begin to interfere with Cable ONE’s ability to manage its
network or provide services to its subscribers. In 2010, the FCC imposed certain “net neutrality” obligations on providers
of broadband Internet access services. Included among those obligations are requirements that fixed broadband Internet
service providers publicly disclose accurate information regarding their network management practices; refrain from
blocking lawful content, applications, services and non-harmful devices of the end user’s choosing; and refrain from
unreasonably discriminating in the transmission of lawful traffic. Wireless broadband Internet service providers are subject
to fewer regulations, and the application of all such regulations is subject to the broadband Internet service provider’s
ability to engage in reasonable network management. The FCC’s net neutrality rules also establish a process through
which complaints can be brought about the network management practices of broadband Internet service providers.
Congress, from time to time, also has considered whether to impose net neutrality requirements on providers of
broadband Internet access service that would limit the ability of such providers to prioritize the delivery of particular types
of content, applications or services over their networks, or whether to limit the FCC’s ability to regulate such activity.
The FCC’s December 2010 order imposing certain net neutrality obligations on providers of broadband Internet access
services has been appealed, and the Company cannot predict the outcome or timing of this appeal. If the FCC’s order is
upheld, then these new obligations could cause the Company to incur certain compliance costs.
The American Recovery and Reinvestment Act of 2009 (ARRA) required the FCC to develop a National Broadband Plan
(NB Plan) to guide U.S. policy in the area of domestic broadband deployment. In March 2010, the FCC submitted its
NB Plan to Congress and announced its intention to initiate approximately 40 rulemakings addressing a host of issues
related to the delivery of broadband services. Several of these rulemakings have already been initiated. The broad reach
of these rulemaking proceedings could ultimately affect the environment in which Cable ONE operates. The NB Plan,
which the FCC delivered to Congress on March 16, 2010, did not contain self-effectuating provisions, but it is serving as
a blueprint for broadband regulatory policy in the U.S. and, therefore, could have a material effect on Cable ONE and
other providers of broadband Internet access services. Compliance with these laws imposes costs on the Company and
may impact the competitive environment in which Cable ONE operates.
Providers of broadband Internet access services are subject to many of the same U.S. Federal and state privacy laws that
apply to other providers of electronic communications, such as cable companies and telephone companies, including
the U.S. Federal Electronic Communications Privacy Act, which addresses interceptions of electronic communications that
are in transit; the Stored Communications Act, which addresses acquisitions of electronic data in storage; and the
Communications Assistance for Law Enforcement Act (CALEA), which requires providers to make their services and
facilities accessible to law enforcement for purposes of surveillance. Various U.S. Federal and state laws also apply to
Cable ONE and to others whose services are accessible through Cable ONE’s broadband Internet access service. These
laws include copyright laws, privacy and data breach requirements, prohibitions on obscenity and requirements
governing unsolicited commercial email.
18 THE WASHINGTON POST COMPANY