Document: 392 U.S. 157 88 S.Ct. 1994 20 L.Ed.2d 1001 UNITED STATES et al., Petitioners,v.SOUTHWESTERN CABLE CO. al. MIDWEST TELEVISION, INC., Petitioners, v. SOUTHWESTERN Nos. 363, 428. Argued March 12 and 13, 1968. Decided June 10, [Syllabus from pages 157-158 intentionally omitted] Henry Geller, Washington, D.C., for petitioners United States Federal Communications Commission. Ernest W. Jennes, Midwest Television, Inc., Arthur Scheiner, respondent Southwestern Cable Co. Robert L. Heald, respondents Mission TV, Mr. Justice HARLAN delivered the opinion of Court. 1 These cases stem proceedings conducted by Commission after requests Television1 relief under §§ 74.11072 74.11093 rules promulgated regulation community antenna television (CATV) systems. averred that respondents' CATV systems transmitted signals Los Angeles broadcasting stations into San Diego area, thereby had, inconsistently with public interest, adversely affected Midwest's station.4 sought an appropriate order limiting carriage such After consideration petition various responsive pleadings, restricted expansion service in areas which they had not operated on February 15, 1966, pending hearings to be merits complaints.5 4 F.C.C.2d 612. On petitions review, Court Appeals Ninth Circuit held lacks authority Act 1934, 48 Stat. 1064, 47 U.S.C. § 151 seq., issue order.6 378 F.2d 118. We granted certiorari consider this important question regulatory authority.7 389 911, 235, 19 258. For reasons follow, we reverse. I. 2 receive stations, amplify them, transmit them cable or microwave, ultimately distribute wire receivers their subscribers.8 characteristically do produce own programming,9 recompense producers broadcasters use programming redistribute.10 Unlike ordinary commonly charge subscribers installation other fees.11 3 The industry has grown rapidly since establishment first commercial system 1950.12 In late 1950's, some 50 new were established each year; 1959, there 550 'nationally known identified' serving a total audience 1,500,000 2,000,000 persons.13 It been more recently estimated 'new are being founded at rate than one per day, * signed 15,000 month.'14 By 1965, it was reported 1,847 operating systems, 758 others franchised but yet operation, 938 applications additional franchises.15 statistical evidence is incomplete, but, as observed, 'whatever estimate, growth clearly explosive nature.' Second Report Order, 725, 738, n. 15. perform either both two functions. First, may supplement facilitating satisfactory reception local adjacent would otherwise possible; second, distant entirely beyond range antennae. As number size have increased, principal function frequently become importation signals.16 only employed microwave relays, maximum distance over 300 miles; 1964, 250 used transmission distances sometimes exceeded 665 miles. First 38 F.C.C. 683, 709. There evidently now plans 'to carry programing New York City independent upstate York, Philadelphia, even far Dayton.'17 And see Channel 9 Syracuse, Inc. F.C.C., 128 U.S.App.D.C. 187, 385 969; Hubbard Broadcasting, 197, 979. Thus, 'while originated sparsely settled adverse terrain spreading metropolitan centers. *' supra, formerly no auxiliaries broadcasting, promise future provide national communications system, selected centers throughout country.18 5 occasions attempted assess relationship between its conceded completed extended investigation several auxiliary services, including CATV. TV Repeater Services, 26 403. Although found 'related interstate transmission,' reasoned neither common carriers nor broadcasters, therefore within categories created Act. Id., 427—428. declared given plenary 'any all enterprises happen connected many aspects communications.' 429. refused premise upon assertedly consequences because could 'determine where impact takes effect, although recognize well exist.' 431. 6 instead forthwith seek legislation clarify situation.' 438. Such introduced Senate 1959,19 favorably reported,20 debated floor.21 bill was, however, returned committee.22 7 Despite inability obtain amendatory legislation, has, 1960, gradually asserted jurisdiction placed restrictions activities carrier facilities serve See Carter Mountain Transmission Corp., 32 459, aff'd, 116 93, 321 359. Finally, 1962 rule-making proceeding reevaluated significance responsibilities. Order Report, supra. explicitly those served Commission's conclusions plainly widely relevant. 'the likelihood probability (CATV's) potential existing too substantial dismissed.' 713—714. necessarily creates 'substantial competition' broadcasting. 707. acknowledged 'measure precisely degree impact,' 'CATV competition can negative effect station revenues. 710—711. 8 'accommodat(e)' interests imposition rules. 713. required any whose area brought competing signals.23 Second, forbidden duplicate periods 15 days before broadcast. generally 719 730. nonduplication expected 'insur(e) stations' ability maintain themselves areas' outlets highly popular network programs. 715. 1965 issued notices inquiry proposed rule-making, determine whether forms CATV, cable, properly regulated 453. further hearings, confers adequate 728—734. revised rules, applicable govern programming. Further, forbade 100 largest markets, except insofar offered unless previously 'would consistent interest,' id., 782; 781—785, particularly healthy maintenance broadcast area,' CFR 74.1107(c). 'summary, nonhearing procedures' disposition separate relief. F.C.C.2d, 764; 74.1109. Thirteen adoption initiated these submission special II. 10 must emphasize questions validity specific issues two: regulate and, if addition, prohibitory here question.24 11 derived amended. Act's provisions 'all foreign communication radio *.' 152(a). responsibilities narrow: endeavor 'make available people rapid, efficient, Nation-wide, world-wide 151. 'single Government agency'25 'unified jurisdiction'26 'regulatory power electrical communication, telephone, telegraph, radio.'27 purpose 'broad authority.'28 emphasized earlier case, terms, purposes, history indicate Congress 'formulated unified comprehensive (broadcasting) industry.' Pottsville Broadcasting Co., 309 134, 137, 60 437, 439, 84 L.Ed. 656. Respondents suggest term 'communication radio.' Indeed, defined so encompass signals, pictures, sounds kinds,' 'including instrumentalities, facilities, apparatus, services (among things, receipt, forwarding, delivery communications) incidental transmission.' 153(a), (b). very general terms amply suffice reach activities. 13 Nor doubt engaged where, here, intercepted emanate located same State operates.29 take notice consists large part devised for, distributed to, audiences; thus ordinarily simultaneous retransmission often States. stream essentially uninterrupted indivisible. To categorize intrastate disregard character industry, merely prevent 'is essential efficient facilities.' Radio Comm'n Nelson Bros. 289 266, 279, 53 627, 634, 77 1166. 14 Nonetheless, urge Act, understood, does permit 1959 again 196630 authorized regulation, efforts unsuccessful. circumstances cannot dispositive. reflected instance uncertainty proper width understandable preference detailed policy guidance provides.31 recognized administrative agencies should, situations, encouraged clarification pertinent statutory provisions. Wong Yang Sung McGrath, 339 33, 47, 70 445, 452, 94 616. significant assistance expressions congressional followed requests. place, views construction statute adopted years another 'very little, any, significance.' Rainwater States, 356 590, 593, 78 946, 949, 996; Price, 361 304, 313, 80 326, 331, 334; Haynes 390 85, 87, 4, 722, 923. clear believed, considered did already possess preceded declarations 'did intend CATV,' preferred recommend impose specified requirements systems.32 troubled unwillingness fears unable regulate.33 informed desired 'confirm (its) establish basic (Congress) deems appropriate.' H.R.Rep. No. 1635, 89th Cong., 2d Sess., 16. response, House Committee Interstate Foreign Commerce said 'either agree disagree' jurisdictional present law courts decide. 9. circumstances, derive anything bearing us. 16 152(a)34 independently confer Commission, prescribes separately made applicable. contend carriers, Title II III. They conclude certain characteristics neither, eludes altogether grasp. 17 construe restrictively. Nothing language 152(a), surrounding language, purposes limits specifically described section itself states 'provisions (the Act) shall apply Similarly, legislative indicates communication. S.Rep. 781, 73d 1. Certainly 1934 foreseen development seems us wished maintain, through control, grip dynamic 138, conferred jurisdiction'35 authority.'36 '(u)nderlying whole (Communications recognition fluctuating factors characteristic evolution corresponding requirement process sufficient flexibility adjust factors.' 439. acted field demonstrably 'both dynamic,' gave 'a mandate,' 'not niggardly expansive powers.' National 319 190, 219, 63 997, 1010, 87 1344. reason believe 152 not, suggest, radio.'37 18 Moreover, reasonably concluded imperative effectiveness imposed 'obligation providing dispersed service,'38 'fair, equitable distribution' among 'several communities.' 307(b). allocate broadcating zones areas, regulations 'as deem necessary' interference stations. 303(f), (h). concluded, agreed, obligations require satisfaction creation communities appreciable (will) least outlet self-expression.'39 turn, subsidiary goals realized. significantly wider ultra-high-frequency channels.40 launch sound programs utilize channels reserved educational purposes.'41 received endorsement Congress.42 achievement 'placed jeopardy unregulated CATV.' 7. make possible realization (Commission's) most goals,' 699, also 'destroy seriously degrade broadcaster,' 700, deprive benefits stations.43 particular, feared might, dividing audiences revenues, magnify serious financial difficulties UHF broadcasters.44 predict certainty demand 'plan advance foreseeable events, waiting react them.' 701. aware variously estimated,45 'discharge overall without aspect service.' Staff Comm. Commerce, 85th Television Inquiry: Problem Service Smaller Communities (Comm.Print 1959). charged broad orderly scarcely exaggerated, source information entertainment great Nation's population. successful performance duties demands prompt efficacious elsewhere 'in absence compelling Congress' intention prohibit action agency's ultimate purposes.' Permian Basin Area Rate Cases, 747, 780, 1344, 1367, 212. Compare 219—220, 1011; American Trucking Assns. 344 298, 311, 73 307, 315, 97 337. hold radio' permits 21 need detail enough today 152(a) ancillary effective may, 'such prescribe conditions, inconsistent law,' 'public convenience, necessity requires.' 303(r). express authority, purposes. 22 next particular proceedings. should summary procedures 'complaints disputes.' Id. 764. evidentiary every situation mandatory prove 'time consuming burdensome' involved. Ibid. opportunities comment objection given, 'additional procedures, oral argument, hearing, written submissions' permitted 'if appear necessary appropriate. 74.1109(f). sought, granted, temporary 23 examination pleadings prior ordered restrict contravenes interest. addition 1966; who began receiving submitted 'accepted subscription request' date order; preclude Tijuana, Mexico, service. 612, 624—625. designed simply preserve existed moment issuance. 24 orders 312(b), empowered cease-and-desist orders. assume that, 312(c), hearing waiver right hearing. invalidate (c) inapplicable here. Section 312(b) provides 'has violated failed observe' provision rule authority. observe restriction; preserved determination 'whether planned operations interest what, taken Commission.' 626, form function, (c).46 25 rapid change, situations generalized inadequate, imperative. case situation, 'interim expansion,' action. exceed This (must) itself' 'dynamic U.S., S.Ct., declined 'stereotyp(e) powers details 1011. compare Assn's. 337; R. A. Holman & S.E.C., 112 43, 47—48, 299 127, 131—132. orders, (Act), execution functions.' 154(i). abuse claim procedure respect way constitutionally infirm. judgments reversed, remanded opinion. ordered. Judgments reversed remanded. 27 DOUGLAS MARSHALL took decision cases. 28 WHITE, concurring result. 29 My route reversal somewhat different Court's. 2(a) says '(t)he chapter (Emphasis added.) I am inclined means base position invalidation assertion today. 301, gives 303, '(m)ake out chapter' station. ample broadcaster interfering Diego. example, stop owning carried station's able third party disrupting Commission-licensed market. 30 Even 301 303 furnish insufficient basis enjoin extraneous scheme authorized, 2(a), makes Hence implement ends enforce wire. premised status licensee KFMB—TV, Diego, California. 739. 74.1107(a) '(n)o predicted Grade A contour markets extend signal B station, showing approved extension area. approval request foregoing will related materials full determines requisite made. market determined rating Research Bureau, net weekly circulation recent year.' 54th Pike Fischer Reg.2d 273, 276. 74.1109 'procedures rulings complaints 'may informally, letter, accompanied affidavit licensee, permittee, applicant, interested person directly requested granted.' 74.1109(b). Provisions comments opposition petition, rejoinders petitioner. 74.1109(d), (e). specify submissions directed aspects, fragmented audience, reduce advertising revenues consequence terminate curtail provided Respondents' alleged quality respondents, materially degraded, serves accentuate fragmentation audience. grandfather rights accrued 74.1107(d). initial examiner, October 3, 1967, permanent unwarranted. 273. interim examiner's decision. 721. understood or, narrowly, involved court's opinion, fact, encompassed positions. note District Columbia Buckeye Cablevision, 262, 387 220. facility receives indirectly air amplifies modifies transmitting distributes subscribing members pay service, include (1) fewer subscribers, (2) residents apartment dwellings ownership, management, establishments premises house.' 74.1101(a). is, technical why not. Note, Wire Mire: FCC 79 Harv.L.Rev. 366, 367. examiner "intends commence program origination near future.' 283. infringes copyright presented Fortnightly Corp. Artists 618, (Reporter's Note: 390, 2084, 1176.) costs Connecticut were, $31 $147 home. M. Seiden, An Economic Analysis Community Antenna Systems Industry (1965). noncommercial 1949. H.R.Rep.No. 5. 403, 408; 368. 738. franchises state agencies. Nevada, 86% subject regulation. 44 47. Conn.Gen.Stat.Rev., Tit. 16, c. (1958); Nov.Stat.1967, 458. 'distant signal' specialized definition 'which station.' 74.1101(i). line along good 90% time 50% locations. 73.683(a). 368 (notes omitted). suggested nationwide grid wired interconnected frequencies financed subscriber fees, day offer viable economic alternative advertiser-supported Levin, Technology Old Regulation Spectrum Management, 56 Am.Econ.Rev. 339, 341 (Proceedings, May 1966). S. 2653, 86th 1st Sess. S.Rep.No. 923, 106 Cong.Rec. 10416—10436, 10520—10548. 10547. 1966 suitable modifications 30, infra. 716—719. must, channel capacity, place system. priority according strength community, strongest priority. Exceptions duplication excluded. 717. noted employ microwave. intimate what differences, might scope nonmicrowave phrase message President Roosevelt, dated 26, he recommended creation. 1850, indicated 'vital need' commission, 'over methods communication.' Roosevelt's Congress. added primary (is) create commission armed 3. assert considerable question.' Brief Respondent 24, 25. rely chiefly 152(b), nothing give 'carriers' solely physical connection, connection radio, carrier, controlled carrier. provision, 'merely perfecting amendment' intended 'obviate argument attempt common-carrier point-to-point points single 1090, 83d 1, U.S.Code Cong. Admin.News 1954, p. 2133. 910, think properly, meaning 153(h); Frontier Collier, 251; Philadelphia 123 359 282; H.R. 13286, floor debate. 31 See, 427—431, 438—439. stated explanation amendments 'we desirable confirm Commission's) 5—6. 33 observed staff 'long hestitated,' 'that whatsoever.' debate centered e.g., 10426. 34 energy originates and/or persons licensing regulating hereinafter provided; Canal Zone, wholly Zone.' 35 36 37 argue, Regents University System Georgia Carroll, 338 586, 370, supports inference limited licensees, reached find unpersuasive. Carroll contention contracts licensees others.' 602, 379. concerned, contract repudiated Court's discussion 303(r), 600, 377, read context, controlling 'Congress people' success broadcaster, failure 'leaves inferior service,' becomes matter real immediate concern.' 39 1559, 87th 3; Sixth Fed.Reg. 3905. 3—4 '(t)here weakening announced goal 40 allocated 82 portion spectrum. 681 VHF 1,544 2. December 454 air, permittees operating, awaiting action, leaving unreserved allocations available. 162, 11, 10. At time, 90 66 assigned 51 1,108 still 'an achieved' utilized. 4. 41 67, 8—9. 'of utmost importance Nation reasonable opportunity afforded institutions medium.' 'provide much needed cultural informational audiences. element system.' 572, 90th Sess.; 222, 1772. 42 Legislation amend thereafter shipped commerce sale resale capable frequencies. 76 150. assist grants 68, 81 365. 43 736—745. unrestricted eliminate four undesirable consequences: left medium'; 'suburban rural central deprived all'; (3) resident afford monthly fees system'; (4) '(u)nrestrained booster, translator operation eventually result regions, entire service—or left, best, satellite 7—8. 'does television.' 8. critical period development. Most face obstacles.' 712. 'one factor giving cause concern,' ibid., 'likely' 'severe' believed danger 'siphon off support' television, fail all. loss keenly felt public.' 761. hazards 'sufficiently strong warrant protection. 762. study small merkets, readily competition, percentage entrants, UHF, likely discouraged. Fisher Ferrall, Local Station Audience, Q.J.Econ. 227, 250. 45 following. 64—90; N.Y.U.L.Rev. 117, 133—139; 376—383; note, dispute local, foundation Coase, Economics Policy, 440 (May 1966); Greenberg, FCC's Systems, J.Law Econ. 181. 46 under, conformity with, section. suggests 'necessary

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