The Federal Communications Commission has issued regulations that establish procedures requiring the sale, removal or abandonment of cable home run wiring in a multiple dwelling unit building (“MDU”) where the incumbent cable provider no longer has a right to serve the building (or particular units) and the building owner (the “MDU Operator”) wishes either to terminate service for the entire building and use the home run wiring for an alternative video service provider; or permit more than one cable provider to compete for the right to use the home run wiring on a unit-by-unit basis. See First Order on Reconsideration on Inside Wiring (Rule FCC 09-03) dated January 29, 2003 (the “Reconsideration Order”).
For purposes of this discussion, we have assumed (and we believe reasonably so) that the FCC would consider a college dormitory to be an MDU and the college to be an MDU Operator. We also have assumed that the college as the dormitory/MDU owner would be permitted to exercise the rights of individual “subscribers“ under FCC regulations dealing with the disposition of cable home wiring.
FCC inside wiring regulations only apply to cable home wiring and home run wiring and are not applicable to distribution wiring, which is not subject to FCC regulation (see pop-up box with inside wiring rule definitions). In the event a college elects to terminate service with the current cable TV provider, disposition of the home run wiring and cable home wiring will be typically be determined by the rules set forth in a building by building disposition. These rules apply whether service is provided on a subscription or bulk basis.
Building by Building home run wiring disposition: The FCC regulations governing the building by building disposition of home run wiring appear at 47C.F.R.§76.804(a). College notifies current cable TV operator in writing that service will be terminated in 90 days. Cable TV operator will then have 30 days to notify the college in writing of its election for all the “home run wiring” inside the MDU building: (a) to remove the wiring and restore the property within 30 days of the end of the 90-day notice period or within 30 days of actual service termination, whichever occurs first; (b) to abandon and not disable the wiring at the end of the 90-day notice period; or (c) to sell the wiring to the college. If the cable provider elects to sell the wiring that triggers a 30-day period during which the college and the provider can attempt to negotiate a mutually agreeable price. If a price is not successfully negotiated, the cable provider must abandon the wiring, remove it (and restore the premises) or submit the price determination to arbitration(see pop-up box for full text of rules or below for related FCC orders).
Cable home wiring disposition: The FCC regulations governing the disposition of home wiring appear at 47C.F.R.§76.802. When the college provides day notice to the current cable TV operator regarding its intent to terminate service, the cable TV operator must reply within 30 days with an offer to sell to the college any cable home wiring it owns and intends to remove; and provide the college with the total per-foot replacement cost of such cable home wiring. If the college declines to purchase the cable home wiring, the college may allow the alternative cable TV provider to purchase the home wiring upon service termination under the terms and conditions of 47C.F.R.§76.802. If the college or the alternative cable TV provider elects to purchase the cable home wiring under these rules, it must so notify the current cable TV operator not later than 30 days before the current cable TV operator’s termination of access to the building will become effective. If the college and the alternative cable TV operator provider elect not to purchase the cable home wiring, the current cable TV operator must then remove the cable home wiring, under normal operating conditions, within 30 days of actual service termination, or make no subsequent attempt to remove it or to restrict its use.
Overall rule for seamless transition: The parties must cooperate to avoid service disruption.
