United States v. Sw. Cable Co. - 392 U.S. 157, 88 S. Ct. 1994 (1968)

Rule:

The Federal Communication Commission's authority to regulate broadcasting and other communications is derived from the Communications Act of 1934, as amended, 47 U.S.C.S. § 151. The Act's provisions are explicitly applicable to all interstate and foreign communication by wire or radio. The Commission's responsibilities are no more narrow: it is required to endeavor to make available to all the people of the United States a rapid, efficient, nation-wide, and world-wide wire and radio communication service.

Facts:

Community antenna television (CATV) systems receive television broadcast signals, amplify them, transmit them by cable or microwave, and distribute them by wire to their subscribers' receivers. In 1959 the Federal Communications Commission (FCC), although it found CATV "related to interstate transmission," stated that it "did not intend to regulate CATV," and that it preferred to recommend legislation which would impose specified requirements upon CATV systems. Such legislation was proposed but not enacted. The CATV industry has had an explosive growth, has increased substantially the signal transmission range, and has been bringing signals from selected broadcasting areas into metropolitan centers. Since 1960 the FCC has gradually asserted jurisdiction over CATV, and in 1965, following hearings, the FCC issued revised rules, applicable to cable and microwave CATV systems, to govern the carriage of local signals and the nonduplication of local programming. The FCC banned CATV transmission of distant signals into the 100 largest television markets (except for such service as existed on February 15, 1966, or unless the FCC found the service would "be consistent with the public interest"), and created summary procedures for applications for separate or additional relief. Petitioner Midwest Television applied for special relief, alleging that respondents' CATV systems transmitted signals from Los Angeles into the San Diego area, adversely affecting Midwest's San Diego station. The FCC, after considering the petition and responsive pleadings, restricted the expansion of respondents' service in areas in which they had not operated on February 15, 1966, pending hearings on the merits of Midwest's complaint. The Court of Appeals held that the FCC lacked authority under the Communications Act of 1934 to issue such order.

Issue:

Did the FCC have authority under the Federal Communications Act to regulate CATV systems?

Answer:

Yes

Conclusion:

The court held that the Commission's authority under 152(a) of the Communications Act over "all interstate communication by wire or radio" permits the regulation of CATV systems. The court further held that the prohibitory order in question did not exceed or abuse the Commission's authority under the Act.