D.C. Memo: NCTA Footnote Fires Back at DIRECTV on ETF Dispute

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Footnote 7: Cable's top trade association opted to use a footnote to fire back at DIRECTV over a new regulatory dispute between cable and satellite TV providers. Awhile back, NCTA – The Internet & Television Association asked the FCC to exempt bundled services (meaning voice, video, and data packages) from FCC Chairwoman Jessica Rosenworcel's plan to ban cable and satellite TV early termination fees. DIRECTV responded that because the vast majority of cable TV subs also took broadband service, only satellite TV providers would be covered by the ETF ban. In an Aug. 14 filing, NCTA said in Footnote 7 that the FCC "should also reject arguments from DIRECTV that refraining from applying ETF restrictions to bundled services could leave only DBS operators subject to the rule. This argument neither negates the limits of the FCC's authority nor justifies saddling cable operators with the logistical challenges of extracting the video component of a bundle in order to implement rules on ETFs and proration," NCTA said. "Proration" referred to Rosenworcel's proposal to require cable and satellite to provide partial refunds to consumers who cancelled at some point in the monthly billing cycle. In the same filing, NCTA said cable operators should be allowed to charge for the full month if "the provider makes access to its cable services available through the end of the billing cycle through its streaming video application, including local programming, if the subscriber remains in the same market" or "the subscriber cancels within the first month of service (after the expiration of the 24-hour cancellation period required under the Television Viewer Protection Act of 2019."