Sec.  73.624   Digital television broadcast stations.

   (a) Digital television (“DTV”) broadcast stations are assigned channels 6
   MHz wide. Initial eligibility for licenses for DTV broadcast stations is
   limited to persons that, as of April 3, 1997, are licensed to operate a full
   power television broadcast station or hold a permit to construct such a
   station (or both).

   (b) DTV broadcast station permittees or licensees must transmit at least one
   over-the-air video program signal at no direct charge to viewers on the DTV
   channel. Until such time as a DTV station permittee or licensee ceases
   analog transmissions and returns that spectrum to the Commission, and except
   as provided in paragraph (b)(1) of this section, at any time that a DTV
   broadcast station permittee or licensee transmits a video program signal on
   its analog television channel, it must also transmit at least one
   over-the-air video program signal on the DTV channel. The DTV service that
   is provided pursuant to this paragraph must be at least comparable in
   resolution to the analog television station programming transmitted to
   viewers on the analog channel.

   (1) DTV broadcast station permittees and licensees required to construct and
   operate a DTV station by May 1, 2002, or May 1, 2003, pursuant to paragraph
   (d) of this section must, at a minimum, beginning on the date on which the
   DTV station is required to be constructed, provide a digital video program
   signal, of the quality described in paragraph (b) of this section, during
   prime time hours as defined in  Sec. 79.3(a)(6) of this chapter. These licensees
   and permittees must also comply with the minimum operating hours
   requirements in paragraph (f) of this section.

   (2) DTV licensees or permittees that choose to commence digital operation
   before the construction deadline set forth in paragraph (d) of this section
   are not subject to any minimum schedule for operation on the DTV channel.

   (c) Provided that DTV broadcast stations comply with paragraph (b) of this
   section, DTV broadcast stations are permitted to offer services of any
   nature, consistent with the public interest, convenience, and necessity, on
   an ancillary or supplementary basis. The kinds of services that may be
   provided include, but are not limited to computer software distribution,
   data transmissions, teletext, interactive materials, aural messages, paging
   services, audio signals, subscription video, and any other services that do
   not derogate DTV broadcast stations' obligations under paragraph (b) of this
   section. Such services may be provided on a broadcast, point-to-point or
   point-to-multipoint basis, provided, however, that any video broadcast
   signal provided at no direct charge to viewers shall not be considered
   ancillary or supplementary.

   (1) DTV licensees that provide ancillary or supplementary services that are
   analogous to other services subject to regulation by the Commission must
   comply with the Commission regulations that apply to those services,
   provided, however, that no ancillary or supplementary service shall have any
   rights to carriage under  Sec.  Sec. 614 or 615 of the Communications Act of 1934, as
   amended, or be deemed a multichannel video programming distributor for
   purposes of section 628 of the Communications Act of 1934, as amended.

   (2) In all arrangements entered into with outside parties affecting service
   operation, the DTV licensee or permittee must retain control over all
   material transmitted in a broadcast mode via the station's facilities, with
   the right to reject any material in the sole judgement of the permitte or
   licensee. The license or permittee is also responsible for all aspects of
   technical operation involving such telecommunications services.

   (3) In any application for renewal of a broadcast license for a television
   station that provides ancillary or supplementary services, a licensee shall
   establish that all of its program services on the analog and the DTV
   spectrum are in the public interest. Any violation of the Commission's rules
   applicable to ancillary or supplementary services will reflect on the
   licensee's qualifications for renewal of its license.

   (d) Digital television broadcast facilities that comply with the FCC DTV
   Standard (section 73.682(d)), shall be constructed in the following markets
   by the following dates:

   (1)(i) May 1, 1999: all network-affiliated television stations in the top
   ten television markets;

   (ii) November 1, 1999: all network-affiliated television stations not
   included in category (1)(i) and in the top 30 television markets;

   (iii) May 1, 2002: all remaining commercial television stations;

   (iv) May 1, 2003: all noncommercial television stations.

   (2) For the purposes of paragraph (d)(1):

   (i) The term, “network,” is defined to include the ABC, CBS, NBC, and Fox
   television networks;

   (ii) The term, “television market,” is defined as the Designated Market Area
   or DMA as defined by Nielsen Media Research as of April 3, 1997; and

   (iii) The terms, “network-affiliated” or “network-affiliate,” are defined to
   include those television stations affiliated with at least one of the four
   networks designated in paragraph (d)(2)(i) as of April 3, 1997. In those
   DMAs in which a network has more than one network affiliate, paragraphs
   (d)(1) (i) and (ii) of this section shall apply to its network affiliate
   with the largest audience share for the 9 a.m. to midnight time period as
   measured by Nielsen Media Research in its Nielsen Station Index, Viewers in
   Profile, as of February, 1997.

   (3) Authority delegated. (i) Authority is delegated to the Chief, Media
   Bureau to grant an extension of time of up to six months beyond the relevant
   construction deadline specified in paragraph (d)(1) of this section upon
   demonstration by the DTV licensee or permittee that failure to meet that
   construction deadline is due to circumstances that are either unforeseeable
   or beyond the licensee's control where the licensee has taken all reasonable
   steps to resolve the problem expeditiously.

   (ii) Such circumstances shall include, but shall not be limited to:

   (A) Inability to construct and place in operation a facility necessary for
   transmitting digital television, such as a tower, because of delays in
   obtaining zoning or FAA approvals, or similar constraints;

   (B) the lack of equipment necessary to obtain a digital television signal;
   or

   (C) where the cost of meeting the minimum build-out requirements exceeds the
   station's financial resources.

   (iii) The Bureau may grant no more than two extension requests upon
   delegated authority. Subsequent extension requests shall be referred to the
   Commission. The Bureau may deny extension requests upon delegated authority.

   (iv) Applications for extension of time shall be filed no earlier than 90
   and no later than 60 days prior to the relevant construction deadline,
   absent a showing of sufficient reasons for filing within less than 60 days
   of the relevant construction deadline.

   (e) The application for construction permit must be filed on Form 301
   (except for noncommercial stations, which must file on Form 340) on or
   before the date on which half of the construction period has elapsed. Thus,
   for example, for applicants in category (d)(1)(i), the application for
   construction period must be filed by May 1, 1998.

   (f)(1) Commencing on April 1, 2003, DTV television licensees and permittees
   required to construct and operate a DTV station by May 1, 2002, or May 1,
   2003, must transmit at least one over-the-air video program signal at no
   direct charge to viewers on their DTV channel at least 50 percent of the
   time they are transmitting a video program signal on their analog channel.

   (2) Commencing on April 1, 2004, DTV licensees and permittees described in
   paragraph (f)(1) of this section must transmit a video program signal as
   described in paragraph (f)(1) of this section on the DTV channel at least 75
   percent of the time they are transmitting a video program signal on the
   analog channel.

   (3) Commencing on April 1, 2005, DTV licensees and permittees described in
   paragraph (f)(1) of this section must transmit a video program signal as
   described in paragraph (f)(1) of this section on the DTV channel at least
   100 percent of the time they are transmitting a video program signal on the
   analog channel.

   (4) The minimum operating hours requirements imposed in paragraphs (f) (1)
   through (3) of this section will terminate when the analog channel
   terminates operation and a 6 MHz channel is returned by the DTV licensee or
   permittee to the Commission.

   (g) Commercial and noncommercial DTV licensees must annually remit a fee of
   five percent of the gross revenues derived from all ancillary or
   supplementary services, as defined by paragraph (b) of this section, which
   are feeable, as defined in paragraphs (g)(2)(i) through (ii) of this
   section.

   (1)(i) All ancillary or supplementary services for which payment of a
   subscription fee or charge is required in order to receive the service are
   feeable. The fee required by this provision shall be imposed on any and all
   revenues from such services, including revenues derived from subscription
   fees and from any commercial advertisements transmitted on the service.

   (ii) Any ancillary or supplementary service for which no payment is required
   from consumers in order to receive the service is feeable if the DTV
   licensee directly or indirectly receives compensation from a third party in
   return for the transmission of material provided by that third party (other
   than commercial advertisements used to support broadcasting for which a
   subscription fee is not required). The fee required by this provision shall
   be imposed on any and all revenues from such services, other than revenues
   received from a third party in return for the transmission of commercial
   advertisements used to support broadcasting for which a subscription fee is
   not required.

   (2) Payment of fees. (i) Each December 1, all commercial and noncommercial
   DTV licensees will electronically report whether they provided ancillary or
   supplementary services in the twelve-month period ending on the preceding
   September 30. Licensees will further report, for the applicable period: (A)
   a brief description of the services provided; (B) which services were
   feeable ancillary or supplementary services; (C) whether any ancillary or
   supplementary services provided were not subject to a fee; (D) gross
   revenues received from all feeable ancillary and supplementary services
   provided during the applicable period; and (E) the amount of bitstream used
   to provide ancillary or supplementary services during the applicable period.
   Licensees will certify under penalty of perjury the accuracy of the
   information reported. Failure to file regardless of revenues from ancillary
   or supplementary services or provision of such services may result in
   appropriate sanctions.

   (ii) If a commercial or noncommercial DTV licensee has provided feeable
   ancillary or supplementary services at any point during a twelve-month
   period ending on September 30, the licensee must additionally file the FCC's
   standard remittance form (Form 159) on the subsequent December 1. Licensees
   will certify the amount of gross revenues received from feeable ancillary or
   supplementary services for the applicable twelve-month period and will remit
   the payment of the required fee.

   (iii) The Commission reserves the right to audit each licensee's records
   which support the calculation of the amount specified on line 23A of Form
   159. Each licensee, therefore, is required to retain such records for three
   years from the date of remittance of fees.

   [ 62 FR 26989 , May 16, 1997, as amended at  63 FR 15784 , Apr. 1, 1998;  63 FR 69216 , Dec. 16, 1998;  64 FR 4327 , Jan. 28, 1999;  66 FR 58982 , Nov. 26, 2001;
    66 FR 65135 , Dec. 18, 2001;  67 FR 13232 , Mar. 21, 2002;  67 FR 38423 , June 4,
   2002;  69 FR 59535 , Oct. 4, 2004]

   Effective Date Note:   At  66 FR 58982 , Nov. 26, 2001,  Sec. 73.624 was amended by
   revising the first sentence in paragraph (g)(2)(i). This amendment contains
   information collection requirements and will not become effective until
   approval has been given by the Office of Management and Budget.