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2 When the Commission adopted its Sixth Report and Order, specific channels were allocated to specific communities. No channel other than the one specified for a given community could be applied for by an applicant. The Commission also specified the maximum power that could be used on given channels. Thus, the Commission recognized the normal area which a station would serve and also established grades of service for such areas and the normal extension of such grades of service. Like¬ wise, the Commission recognized the existence of certain cities and areas which were separated by relatively short distances and combined such areas into one area for purposes of allocation. This system of allocation which is in existence today, fully establishes the area which a given station is supposed to serve. Competition was also created between stations in given areas according to the size and population by the allocation of more than one television station. No provision was made for any station to utilize a gimmick and leap frog its signals into the areas allocated to other stations, thus creating undue and unfair competition. However, the present CATV systems have provided the gimmick whereby such leap-frogging may be accomplished. By further utilizing microwave relay stations, this leap-frogging can now be extended over hundreds of miles so that the very foundation on which the Commission's present allocation policy rests is now threatened. From a philosophical standpoint, too, there has been cause for complaint, based on the fear that rapid growth of CATV will turn smaller cities into cultural and economic suburbs of distant metropolitan centers. Moreover, in view of the tendency of CATV operations to concentrate on city rather than rural subscribers, it is conceivable that large areas of the country may lose the opportunity to receive either commercial or educational tele¬ vision. As a result, the number of parties filing comments have suggested that the Commission establish limits on the distance that a particular station's signals may be carried via CATV. Others, and particularly station KCOY-TV, Santa Maria, California, which is fighting a CATV proposal to bring the seven Los Angeles signals into that community, have requested that CATV be limited to carrying only the number of television signals which would be available in a community in a full Table of Allocations at maximum facilities. 3. FCC Regulation? A third major concern has been the extent of FCC regulation. As shown in the attached release, the Commission has been reluctant to assume full jurisdiction without specific legislation. Many parties have argued to the FCC that it already has full power to regulate CATV in its impact on television stations. ABC has filed a separate petition for rule making (RM-672—comments were due on November 23, 1964, and reply comments were due December 8, 1964) , seeking Commission reg¬ ulation of the carriage of television signals by CATV systems. A copy of the ABC petition is enclosed. Just as vociferously, NCTA and CATV