1
SEPARATE STATEMENT OF 
COMMISSIONER JONATHAN S. ADELSTEIN
Re:  Leased Commercial Access, and Development of Competition and Diversity in Video 
Programming Distribution and Carriage (MB Docket No. 07-42), Report and Order and 
Further Notice of Proposed Rule Making.
I am pleased to support this item which deals with the Commissions commercial 
leased access rules.
When I requested that we launch this proceeding to reform the current leased 
access regime, I did so for two reasons. First, I had heard that many small and 
independent creators of local and diverse programming could not gain access to and 
carriage on their local cable systems. And second, while Congress explicitly required
the Commission to ensure that leased access opportunities remain available and viable, 
our rules and practices over the years have made leased access unnecessarily burdensome 
and, in some instances, prohibitively expensive for many independent programmers. 
I am, therefore, pleased that the instant Order addresses these problems. As the 
initiator of this proceeding, I would like to thank my colleagues for supporting this 
thoughtful item. I particularly would like to thank Chairman Martin for heeding my 
request and following through on our agreement in the Adelphia transaction to bring this 
proceeding to a final order. Given that the Commissions experience with managing 
leasing arrangements in media is limited to commercial cable leased access, the rules we 
consider and implement here today should set the baseline standard for any other media 
leasing arrangement contemplated by the Commission.
Todays Order makes remarkable improvements to our commercial cable leased 
access rules. We first adopt uniform customer service standards to remedy the lack of a 
consistent and fair treatment of actual and interested leased access programmers.  We 
then reduce the potential expense and burden on a programmer associated with filing a 
complaint with the Commission about an alleged violation. To ensure that we better 
monitor leased access practices and the effects of our rules, we adopt an annual reporting 
requirement for cable operators and we invite leased access programmers to comment on 
the information provided by cable operators.  
As the underlying record shows, the inconsistent and unpredictable treatment of 
leased access programmers has impeded their ability to lease cable channels. 
Considering that many part-time leased programmers are small, community-based 
operations, the difficulty to obtain basic information about leased access opportunities 
can create an unnecessary barrier of entry.  I believe that the Commission must take 
appropriate steps to facilitate the entry of new and diverse programmers in a manner that 
has been specifically authorized by Congress.
2
Leased access programmers should be able to request and then obtain information 
about rates, terms and conditions in a timely manner. Today, we reaffirm that cable 
operators have an obligation to reasonably accommodate these requests.  Accordingly, 
we conclude that within three business days of an initial inquiry, a cable operator must 
provide the prospective leased access programmer with information about, for example,
the leased access process and procedures for that specific cable system, the availability of 
time and leased access channels, the attendant schedule and calculation of rates, and the 
acceptable methods of delivering leased access programming to the cable operator. 
Providing this information to prospective leased programmers does not impose an 
undue burden on cable operators.  In fact, I believe that the service standards we adopt 
today should simplify the entire leasing process, as all leased access inquires will be 
treated in a predictable and timely manner.  The new and clear standards will set the 
expectations of prospective and current leased access programmers, and cable operators. 
Moreover, the information that programmers receive after their initial inquiry should 
empower them with sufficient information to determine whether commercial leasing is an 
opportunity worth pursuing. 
In addition to new consumer service standards, I believe this Order improves the 
complaint process in certain important respects.  As I said in the underlying Notice of 
Proposed Rule Making, there will always be good faith disputes between cable operators 
and programmers, [but] the Commission does not have mechanisms in place to ensure 
prompt resolution of complaints.  It should not take the Media Bureau nearly two years to 
respond to a programmers leased access complaint.1  Hence, pursuant to this Order, we 
will codify a rule that requires the Media Bureau to resolve all leased access complaints
within 90 days of the close of the pleading cycle, which requires the respondent to reply 
to a complaint within 30 days.  Also, we reduce the expense of filing a complaint by 
eliminating the requirement for a complainant to obtain a determination of the cable 
operators maximum permitted rate from an independent accountant before filing a 
complaint alleging a rate violation. Finally, the expanded discovery rules we adopt in 
this Order will enable leased access programmers to support complaints of alleged rule 
violations or unfair treatment. 
While I am pleased with the outcome of this Order, I would have preferred that 
we first solicited meaningful public comment and review on the new rate methodology 
adopted here.  To be frank, the methodology was invented by staff out of whole cloth 
without sufficient public input, independent review or any transparency. I received much 
of the details only late last week, right before the Thanksgiving holiday and right after 
Sunshine closed.  As with any new pricing formula, its reliability and accuracy are
directly correlated to the extent to which it has undergone rigorous examination and 
independent review. To my knowledge, neither has occurred in this case. Indeed, good 
government cautions us to seek comment before adopting a new, industry price 
regulation. All stakeholders have a right to see and comment on the specific formula on 
  
1 See United Production v. Mediacom Communications Corp., Order, Media Bureau, CSR 6336-L (adopted 
January 26, 2007, DA 07-273).  The Petition for Commercial Leased Access was filed on February 25, 
2005. 
3
which we intend to rely. To be sure, I actually like the outcome  a maximum leased 
access rate of 10 cents per subscriber per month for any cable system.  But as an expert 
governmental agency, it is incumbent upon us to provide regulatees with a process that is 
fair and open, and inspires confidence in the American people and the courts.
I am, however, satisfied that we do not apply this new rate methodology on 
programmers that predominately transmit sales presentations or program length 
commercials, but rather seek comment on these issues.  It is also appropriate that we 
provide a 90 day delay in the effective date of the new formula so that all parties can have 
opportunity to inform us of any concerns or file petitions for reconsideration.  This 
remedies the deficient notice sufficiently for me to support the item.
I am thankful to my fellow Commissioners and Chairman Martin for ensuring that 
this item was finalized within a reasonable period of time.  I also want to thank the 
commenters for offering real solutions to this process and providing insight needed to 
ascertain the breadth of this item and the intricacies of how the process should work.  I 
am hopeful that this Order today will help us reach both Congress and our goal in 
having more diverse cable programming.