*Pages 1--3 from Microsoft Word - 26129.doc* Federal Communications Commission DA 03- 863 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of: Lakedale Telephone Company Certification to Operate an Open Video System ) ) ) ) ) ) ) MEMORANDUM OPINION AND ORDER Adopted: March 21, 2003 Released: March 24, 2003 By the Deputy Chief, Policy Division, Media Bureau: I. INTRODUCTION 1. On March 14, 2003, Lakedale Telephone Company (" Lakedale") filed an application for certification to operate an open video system pursuant to Section 653( a)( 1) of the Communications Act of 1934 (" Communications Act") and the Commission's rules. 1 Lakedale seeks to operate an open video system in various communities in Minnesota, located in Wright and Stearns Counties (the "Service Areas"). 2 In accordance with our procedures, 3 the Commission published notice of receipt of the Lakedale certification application 4 and posted the application on the Internet. 5 No comments were received. 2. Pursuant to Section 653( a)( 1) of the Communications Act, any entity meeting the requirements may obtain certification to operate an open video system. 6 In light of the brief period (ten days) for Commission review of certification filings, the Commission concluded that Congress intended there to be a streamlined certification process. 7 Open video system operators may apply for certification at 1 47 U. S. C. § 573( a)( 1); 47 C. F. R. § 76. 1502. 2 The Service Areas for which Lakedale seeks certification in Minnesota are: Fairhaven Township and the City of South Haven. 3 See Implementation of Section 302 of the Telecommunications Act of 1996, Open Video Systems, Second Report and Order, 11 FCC Rcd 18223, 18247 (1996) (" Second Report and Order"). 4 See Public Notice, "Lakedale Telephone Company Files An Application For Open Video System Certification," DA 03- 806 (MB, rel. March 17, 2003). 5 The Lakedale application is available via the Internet at http:// www. fcc. gov/ mb/ ovs/ csovscer. html. 6 See 47 U. S. C. § 573( a)( 1); 47 C. F. R. § 76.1501. An operator of a cable system however, generally may not obtain such certification within its service area unless it is subject to "effective competition" as defined in Section 623( 1)( l) of the Communications Act, 47 U. S. C. § 543( l)( l). The effective competition requirement does not apply to a local exchange carrier that is also a cable operator that seeks open video system certification within its cable service area. 7 Second Report and Order, 11 FCC Rcd at 18243. 1 Federal Communications Commission DA 03- 863 2 any point prior to the commencement of service. Open video system operators must obtain certification prior to the commencement of service, allowing sufficient time to comply with the Commission's requirements regarding notifications that applicants must provide to potential programming providers. 8 3. As part of the certification process, the applicant must acknowledge and accept the obligations associated with operation of an open video system and must provide certain information regarding its proposed system. 9 To obtain certification, an applicant must file FCC Form 1275, which requires, among other things: (a) a statement of ownership, including a list of all affiliated entities; 10 (b) a representation that the applicant will comply with the Commission's regulations under Section 653( b) of the Communications Act; 11 (c) a list of the names of the communities the applicant intends to serve; (d) a statement of the anticipated type and amount of capacity that the system will provide; and (e) a statement as to whether the applicant is a cable operator applying for certification within its cable franchise area. II. DISCUSSION 4. Lakedale has submitted an application on FCC Form 1275 for certification to operate an open video system in the Service Areas. We have reviewed the information contained in Lakedale’s application. As required by Form 1275, the Lakedale application provides the following: company information and a separate statement of ownership listing affiliated entities; eligibility and compliance representations; and system information and verification statements. Lakedale also confirmed that it served its application upon the designated telecommunications officials in each of the communities involved. 5. We find that Lakedale has provided the requisite facts and representations concerning the open video system it intends to operate and has certified that it "agrees to comply and remain in compliance with each of the Commission's regulations" under Section 653( b) of the Communications Act. We note that if any representation in the Lakedale certification filing proves to be materially false or materially inaccurate, the Commission retains the authority to revoke Lakedale’s certification or impose such other penalties it deems appropriate, including forfeiture. 8 Id. at 18247; 47 C. F. R. § 76. 1502( a). See also Implementation of Section 302 of the Telecommunications Act of 1996: Open Video Systems, Order on Remand, 14 FCC Rcd 19700, 19705 (1999)( deleting the pre- construction certification requirement from Section 76.1502( a) of our rules). 9 Second Report and Order, 11 FCC Rcd at 18245- 46. 10 For purposes of determining whether a party is an affiliate, we have adopted the definitions contained in the notes to Section 76.501 of our rules, 47 C. F. R. § 76.501, with certain modifications. 47 C. F. R. § 76.1500( g). Generally, we will consider an entity to be an open video system operator's "affiliate" if the open video system operator holds 5% or more of the entity's stock, whether voting or non- voting. Implementation of Section 302 of the Telecommunications Act of 1996, Open Video Systems, Third Report and Order and Second Order on Reconsideration, 11 FCC Rcd 20227, 20235 (1996) (" Third Report and Order"); 47 C. F. R. § 76.1500( g). 11 47 U. S. C. § 573( b). This provision sets forth the Commission's requirements regarding non- discriminatory carriage; just and reasonable rates, terms and conditions; a one- third capacity limit on the amount of activated channel capacity on which an open video system operator may distribute programming when demand for carriage exceeds system capacity; channel sharing; sports exclusivity, network non- duplication and syndicated exclusivity; and non-discriminatory treatment in presenting information to subscribers. See also 47 C. F. R. § 76. 1502( a). 2 Federal Communications Commission DA 03- 863 3 III. ORDERING CLAUSES 6. Accordingly, IT IS ORDERED, that the application of Lakedale Telephone Company for certification to operate an open video system in the Service Areas 12 IS GRANTED. 7. This action is taken by the Deputy Chief, Policy Division, Media Bureau, pursuant to the authority delegated by Section 0.283 of the Commission's Rules. 13 FEDERAL COMMUNICATIONS COMMISSION Steven A. Broeckaert Deputy Chief, Policy Division Media Bureau 12 See supra n. 2, listing the communities contained within the Service Areas. 13 47 C. F. R. § 0.283. 3