FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN July 27,2016 The Honorable Rob Wittman U.S. House of Representatives 2454 Rayburn House Office Building Washington, D.C. 20515 Dear Congressman Wittman: Thank you for your letter asking that the Commission consider the potential impact on small and medium-sized broadband and video providers in its proceedings on retransmission consent, better fostering competition in the set-top box and navigation app marketplace, and the enhanced transparency rules. I take your input on this issue seriously and assure you that it will receive careful consideration. First, you urge the Commission to consider the input of small and medium-sized video providers in our retransmission consent proceeding. Congress, in Section 325 of the Communications Act, requires broadcasters and multichannel video programming distributors (MVPDs) to negotiate for retransmission consent in good faith. As you indicated, last year the Commission adopted a Notice of Proposed Rulemaking, which invited all stakeholders to give us their views about negotiating practices that should factor into a good faith determination. Based on the staff's careful review of the record, it is clear that more rules in this area are not what we need at this point. There is nothing in the record that suggests that our current totality of the circumstances test, which is intentionally broad, is inadequate to address the negotiating practices of broadcast stations or MVPDs of all sizes. However, please be assured that that the Commission can and will investigate a potential good faith violation and take enforcement action if a party fails to fulfill its statutory obligations. Next, you share your views about how the Commission's proceeding for better fostering competition in the set-top box and navigation app marketplace might impact small pay-TV providers. I share your goal of ensuring that pay-TV subscribers in all parts of our country can enjoy the benefits of consumer choice without unduly burdening small providers of pay- TV. Recognizing the important role that small pay-TV providers play in many rural communities, the Notice of Proposed Rulemaking (NPRM) adopted in February seeks comment on how this proceeding could affect these providers. Notably, the NPRM proposes to exempt all analog cable systems from new requirements while also seeking comment on the American Cable Association's proposal to exempt all pay-TV providers serving one million or fewer subscribers from any rules. The NPRM further asks how the Commission can ensure that any rules adopted are not overly burdensome to pay-TV providers. We are continuing to engage with all stakeholders on this issue, including small pay-TV providers. Customers of providers of all sizes Page 2-The Honorable Rob Wittman deserve choice and innovation, and I am confident that we will be able to find a balance that accurately reflects the technology and resources available to truly small providers. Finally, you ask the Commission to work with small providers ensure that they are not unduly burdened by the enhanced transparency rules adopted by the Commission. I share your goal of providing broadband consumers with critical information regarding commercial terms, speeds and other performance characteristics, and network practices, without unduly burdening small providers of broadband internet access service. The 2015 Open Internet Order temporarily exempted small providers with 100,000 or fewer broadband connections from the enhanced transparency requirements while the Commission evaluated the impact. As you know, the information collection requirements resulting from the transparency enhancements are subject to the Paperwork Reduction Act of 1995 (PRA). Accordingly, on May 20,2015, the Commission published in the Federal Register and sought comment on its initial PRA burden estimates. We received a number of comments in response and have been evaluating their impact on our initial estimates. To avoid making a decision on the temporary exemption without a final burden estimate approved by the Office of Management and Budget (OMB), the Consumer and Governmental Affairs Bureau extended the temporary exemption to December 15,2016. Once we have OMB approval for our burden estimates, the Commission will be able to consider whether and, if so, how best to extend the temporary exemption from the enhanced transparency requirements. I appreciate your interest in these matters. Your views are very important and will be included in the record of the proceedings and considered as part of the Commission's review. Please let me know if I can be of any further assistance. Sincerely, ~Tom Wheeler