Sec.  76.901  Definitions.

    (a) Basic service. The basic service tier shall, at a minimum, 
include all signals of domestic television broadcast stations provided 
to any subscriber (except a signal secondarily transmitted by satellite 
carrier beyond the local service area of such station, regardless of how 
such signal is ultimately received by the cable system) any public, 
educational, and governmental programming required by the franchise to 
be carried on the basic tier, and any additional video programming 
signals a service added to the basic tier by the cable operator.
    (b) Cable programming service. Cable programming service includes 
any video programming provided over a cable system, regardless of 
service tier, including installation or rental of equipment used for the 
receipt of such video programming, other than:
    (1) Video programming carried on the basic service tier as defined 
in this section;
    (2) Video programming offered on a pay-per-channel or pay-per-
program basis; or
    (3) A combination of multiple channels of pay-per-channel or pay-
per-program video programming offered on a multiplexed or time-shifted 
basis so long as the combined service:
    (i) Consists of commonly-identified video programming; and
    (ii) Is not bundled with any regulated tier of service.
    (c) Small System. A small system is a cable television system that 
serves 15,000 or fewer subscribers. The service area of a small system 
shall be determined by the number of subscribers that are served by the 
system's principal headend, including any other headends or microwave 
receive sites that are technically integrated to the principal headend.
    (d) New Product Tier. A new product tier (``NPT'') is a cable 
programming service tier meeting the conditions set forth in Sec.  
76.987.
    (e) Small cable company. A small cable company is a cable television 
operator that serves a total of 400,000 or fewer subscribers over one or 
more cable systems.
    (f) Small cable operator. A small cable operator is an operator 
that, directly or through an affiliate, serves in the aggregate fewer 
than 1 percent of all subscribers in the United States and is not 
affiliated with any entity or entities whose gross annual revenues in 
the aggregate exceed $250,000,000. For purposes of this definition, an 
operator shall be deemed affiliated with another entity if that entity 
holds a 20 percent or greater equity interest (not including truly 
passive investment) in the operator or exercises de jure or de facto 
control over the operator.

    Note 1 to paragraph (f): Using the most reliable sources publicly 
available, the Commission periodically will determine and give public 
notice of the subscriber count that will serve as the 1 percent 
threshold until a new number is calculated.
    Note 2 to paragraph (f): For a discussion of passive interests with 
respect to small cable operators, see Implementation of Cable Act Reform 
Provisions of the Telecommunications Act of 1996, Report and Order in CS 
Docket No. 96-85, FCC 99-57 (released March 29, 1999).
    Note 3 to paragraph (f): If two or more entities unaffiliated with 
each other each hold an equity interest in the small cable operator, the 
equity interests of the unaffiliated entities will not be aggregated 
with each other for the purpose of determining whether an entity meets 
or passes the 20 percent affiliation threshold.

[ 58 FR 29753 , May 21, 1993, as amended at  59 FR 62623 , Dec. 6, 1994;  60 FR 35864 , July 12, 1995;  64 FR 35950 , July 2, 1999]