Thread: Cablevision Appeals Terrestrial-Exemption Ruling

Washington -- Cablevision Systems has quietly challenged the Federal Communications Commission's decision to close the terrestrial exemption.

That exemption had excluded terrestrially delivered cable networks, like many regional sports channels, from the FCC's rule requiring pay TV operators to make networks in which they have a financial interest available to their competitors.

According to a copy of the petition obtained by Multichannel News, Cablevision is appealing "on the grounds that the Order exceeds the Commission's jurisdiction and authority; is contrary to constitutional right; violates the Communications Act of 1934, the Administrative Procedure Act, or other statutes; and is arbitrary, capricious, an abuse of discretion, or otherwise contrary to law."

Rather than appealing the decision with the FCC, the company went straight to the court, according to a source. The petition to the U.S. Court of Appeals for the D.C. Circuit was filed March 15. A Cablevision spokesperson had no comment.

The FCC ruled back in January that cable operators who do not share their owned terrestrially-delivered regional sports networks with their competitors will be presumed to be in violation of FCC rules against unfair acts or practices.

They get to rebut the presumption, but the FCC majority made clear that it was taking action against what it saw as a loophole for multichannel video providers to withhold must-have programming from competitors.

Multichannel video programming distributors will not be permitted to deliver a standard-definition version of a regional sports network and withhold the HD version as a way of complying with access requirements. The HD version will be treated as a separate service for purposes of filing program access complaints.

Comcast, the nation's largest cable operator, has assured legislators vetting its proposed joint venture with NBC Universal that it will not challenge the FCC's decision.

Cablevision has not been shy about taking FCC decisions to court: the Bethpage, N.Y.-based MSO has challenged the agency's renewal of the program-access rules (it lost); and earlier this year, it asked the Supreme Court the must-carry rules that require cable operators to carry broadcast-TV stations.