Skip to content
DWT logo
People Services Insights
About Offices Careers
Search
People
Services
Insights
About
Offices
Careers
Search
Advisories
Communications

FCC Modifies Cable’s Existing Commercial Leased Access Obligations

By   Maria T. Browne
07.16.20
Share
Print this page

The FCC today adopted a Second Report and Order in its Commercial Leased Access (CLA) proceeding that modifies the existing rate formula for cable operators providing CLA channels. The core rate formula remains unchained—it will continue to calculate the maximum permissible CLA rate based on the average margin between a system's per channel revenue and per channel cost—but the formula will now be a tier-specific calculation based on the particular tier on which the CLA channel is carried. (The standard calculation previously was a blended rate calculation based on all tiers with greater than 50 percent subscriber penetration.)

The Order explains that "a simplified tier-specific rate calculation best reflects regulatory changes that have occurred in the last 20 years and will more accurately approximate the value of a particular channel, while alleviating burdens on cable operators." The Order also clarifies that the calculation of the maximum permitted CLA fee should be performed annually based on contracts in effect in the previous calendar year.

The FCC was asked to consider eliminating all CLA obligations in light of constitutional concerns. The FCC acknowledged these issues but declined to eliminate CLA entirely. The Order explains, "We . . . find that, although changes in the marketplace cast substantial doubt on the constitutionality of mandatory leased access, leased access requirements are contained in a specific statutory mandate from Congress, so we do not eliminate our leased access rules."

This is the second significant change the FCC made to the CLA rules in the past year. In its initial Report and Order last year, the FCC concluded that cable operators would no longer be required to lease channels to part-time CLA applicants.

Related Articles

01.08.25
Webinars
Communications
"Preparing for Agency Enforcement Under Trump 2: What You Need to Know," Davis Wright Tremaine Webinar Read More
09.11.24
Insights
Communications
Licensees and Telecom/Video Service Providers Must File and Pay FCC Regulatory Fees by Sept. 26, 2024 Read More
07.17.24
Insights
Communications
Will the Supreme Court's Loper Bright Decision Change How the 6th Circuit Reviews the FCC's Open Internet Order? Read More
DWT logo
©1996-2025 Davis Wright Tremaine LLP. ALL RIGHTS RESERVED. Attorney Advertising. Not intended as legal advice. Prior results do not guarantee a similar outcome.
Media Kit Affiliations Legal notices
Privacy policy Employees DWT Collaborate EEO
SUBSCRIBE
©1996-2025 Davis Wright Tremaine LLP. ALL RIGHTS RESERVED. Attorney Advertising. Not intended as legal advice. Prior results do not guarantee a similar outcome.