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The Cable Communications Policy Act of 1984 exempts cable systems from federal regulation whenever a cable system provides services to a multiple cite building that is under common management if no public rights of way or underground wiring systems are utilized. The Act does not provide this benefit to cable utilities that service single cite buildings which are under a single management scheme (e.g., a private home). The purpose of the Act was to foster state franchise of cable entities. However, only companies that were defined as cable systems were eligible for federal regulation exemption. The Respondent - Beach Communications is a satellite antenna television provider. It challenged the constitutional validity of the Act under the Due Process Clause, asserting that no rational basis existed to distinguish the applicability of the statute based on the nature of the cable system when it concerned satellite services because this particular service did not disturb underground wiring arrangements. The Court of Appeals held in favor of the Respondent Beach Communications. The U.S. Supreme Court reversed.

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