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In the Matter of Nondiscrimination in the Distribution of Interactive Television Services Over Cable, CS Docket No. 01-7, ORDER (PROCEEDING TERMINATED) Adopted: September 17, 2008 Released: September 23 , 2008

In 2001, the Commission issued a Notice of Inquiry ( "ITV NOI ") seeking information on issues relating to "interactive television" or ITV services ("ITV"). The main questions raised in the ITV NOI included: (1) which entities are providing ITV services; (2) how will ITV services be delivered; (3) what business models will govern the delivery of ITV services to consumers; and (4) what is the general status of the ITV services market. The ITV NOI sought comment on the legal classification of ITV services, what public policy and statutory objectives any potential ITV rules might address, and the Commission's authority to act in this area. Although the proceeding was commenced as a result of issues raised in the America Online ("AOL") and Time Warner merger proceeding, the ITV NOI also sought information on the availability of ITV services by other competing video distribution systems.

Based on the record in this proceeding and on market developments that have taken place following the issuance of the ITV NOI , we now conclude that it is appropriate to terminate this docket. The triggering event for this proceeding was the merger of AOL and Time Warner and the recently launched AOLTV service, which was designed to provide interactive content in conjunction with video programming through a proprietary set-top box. In the intervening period, however, the AOLTV service has been discontinued, due to what has been described as a "dismal consumer response," as have certain other existing or proposed services of this type from other entities. A considerable variety of other types of interactive service offerings continue to be pursued both in the United States and in other countries, but without any uniformity as to technical standards or business models. Under the circumstances, and in light of the absence of any clear direction or consensus as to how this market may develop, it would be inappropriate to commence further regulatory action at this time.

We will, however, continue to monitor the development of ITV services and, in the event that future market conditions warrant intervention, we will respond accordingly. Parties may raise with the Commission any problems associated with specific implementations of interactive television services. Moreover, this action is without prejudice to our resolution of matters that may relate to ITV services in other pending proceedings, including those in CS Docket 98-120 (mandatory cable carriage of the signals of digital broadcast station signals), CS Docket 97-80 (commercial availability of navigation devices and the compatibility between cable systems and consumer electronics equipment), CS Docket 02-50 and GEN Docket 00-185 (broadband access to the Internet over cable and other facilities), and WC Docket 04-36 (IP-enabled services).

Accordingly, IT IS ORDERED that CS Docket No. 01-7 IS TERMINATED .

Released January 18, 2001
CS Docket No. 01-7		 COMMENTS:  March 19, 2001
REPLY COMMENTS:  April 20, 2001		   0

In re Nondiscrimination in the Distribution of Interactive Television Services Over Cable

     1. Interactive Television ("ITV") is a rapidly-developing service that could provide tremendous value to American consumers.  ITV services, provided over a high speed  platform, will offer, inter alia, increased viewer control of the television viewing experience; integration of video and data services, including web content; real-time interaction with other viewers; and television commerce ("t-commerce").  If it turns out that only one delivery platform in each geographic area has the capability to provide the most attractive ITV services package, and if the platform provider is vertically integrated with an ITV service provider, then there would be the potential for anticompetitive behavior.  This Notice of Inquiry ("Notice") seeks comment on what services constitute ITV services, what entities constitute ITV providers, how ITV services will be delivered, what business models will govern the delivery of ITV services to consumers, and the general status of an ITV services market. 
     2. In the 1992 Cable Act, Congress determined that cable television was the dominant platform among multichannel video programming distributors ("MVPDs"), and that cable market power in local distribution necessitated regulatory intervention in certain situations, including in the case of vertically integrated cable programmers.  In particular, Congress directed the Commission to adopt rules limiting the share of cable capacity that could be used for commonly-owned content and requiring vertically integrated cable programmers to provide their content to rival distribution platforms on nondiscriminatory terms.   If the same factual predicates that Congress cited in the 1992 Cable Act were to apply to a distribution platform delivering ITV services, then some regulation of those distribution facilities might be warranted. 
     3. This Notice addresses the question of whether, at least in the near term, the modern cable television plant is likely to be the superior platform for distribution of high speed ITV services.  Commenters asserting that the cable platform will, in fact, have substantial advantages in distributing ITV services should also comment on whether certain cable operators should prohibited from discriminating among ITV service providers.  The 1992 Cable Act analytic framework would suggest that such regulations be applied, if at all, to vertically-integrated cable ITV providers, i.e., cable television operators that have an attributable interest in an ITV service provider.  Commenters arguing in favor of regulatory actions in this area should also provide recommendations on how to make the principle of nondiscrimination operational and whether the principle should be applied to cable television operators unaffiliated with an ITV provider.  Commenters advocating imposition of regulations only on vertically integrated cable ITV providers should also address whether the current cable television ownership attribution rules would be appropriate for determining if a cable operator would be subject to  nondiscrimination rules. 
     4. The Notice also seeks comment on whether any other distribution platform does or might possess market power in the distribution of ITV services and, if so, what regulatory approach, if any, might be warranted.  The Notice seeks comment on the likely ITV delivery capabilities of other delivery platforms, such as Direct Broadcast Satellite ("DBS") and Digital Subscriber Line ("DSL"), in addition to cable.  The Notice explores the idea that those distributors, if any, that we determine to have the power to act anticompetitively with respect to ITV service delivery should be subject to regulations that require nondiscriminatory treatment of unaffiliated ITV providers. 
     5. The Notice seeks comment on the legal classifications of ITV services, what public policy and statutory objectives ITV rules would promote, and the Commission's authority to protect this market.  The Notice also asks questions about enforcement of any new rules, proposing alternatively a voluntary arbitration, subject to judicial review, or a Commission complaint procedure.

Copies of Comments can be viewed on the FCC's Electronic Comment Filing System (remember the docket number)

FCC INITIATES PROCEEDING ON INTERACTIVE TV. News media contact David Fiske 202-418-0513; Office of Plans and Policy Jonathan Levy 418-2030; Cable Services Bureau Royce Dickens, Darryl Cooper 418-7200. Docket 01-07. News Release. Adopted: 01/12/2001. (FCC No. 01-15) OMR PDF | Word | Text | Press Release

NONDISCRIMINATION IN DISTRIBUTUION O INTERACTIVE TELEVISION SERVICES OVER CABLE ERRATUM TO FCC 01-15. Released an Erratum correcting the table of contents in the Notice of Inquiry (FCC 01-15), released January 18, in proceeding CS Docket No. 01-7. By Erratum. Adopted: 01/19/2001 by ERRATUM. CSB

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