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 Federal  Communications  Commission  DA  05-  1912 
 1 
 Before  the  Federal  Communications  Commission 
 Washington,  D.  C.  20554 


 In  the  Matter  of: 
 RC  Technologies  Corporation 
 Determination  Of  Effective  Competition  in  New  Effington,  Summit,  Veblen  and  Wilmot,  South 
 Dakota 


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 MEMORANDUM  OPINION  AND  ORDER 
 Adopted:  June  29,  2005  Released:  June  30,  2005 
 By  the  Deputy  Chief,  Policy  Division,  Media  Bureau: 
 1.  RC  Technologies  Corporation  (“  RC”)  requests  a  finding  of  effective  competition  in  New  Effington,  Summit,  Veblen  and  Wilmot,  South  Dakota  (the  “franchise  areas”)  in  conjunction  with  its 
 showing  of  compliance  with  Section  27.  1202  of  the  Commission’s  rules.  1 
 2.  The  Communications  Act  and  the  Commission’s  rules  provide  that  only  the  rates  of  cable  systems  that  are  not  subject  to  effective  competition  may  be  regulated.  2  One  of  the  bases  by  which  a 


 cable  system  will  be  deemed  subject  to  effective  competition  is  where  a  franchise  area  is:  (i)  served  by  at  least  two  unaffiliated  multichannel  video  programming  distributors  (“  MVPD”)  each  of  which  offers 
 comparable  programming  to  at  least  50  percent  of  the  households  in  the  franchise  area;  and  (ii)  the  number  of  households  subscribing  to  multichannel  video  programming  other  than  the  largest 
 multichannel  video  programming  distributor  exceeds  15  percent  of  the  households  in  the  franchise  area.  3  In  the  absence  of  a  demonstration  to  the  contrary,  cable  systems  are  presumed  not  to  be  subject  to 
 effective  competition.  4  The  cable  operator  bears  the  burden  of  rebutting  the  presumption  that  effective  competition  does  not  exist  with  evidence  that  effective  competition,  as  defined  by  Section  76.905  of  the 
 Commission’s  rules,  is  present  within  its  franchise  area.  5  RC  has  met  this  burden. 
 3.  RC  has  submitted  reliable  evidence  demonstrating  that  the  franchise  areas  are  served  by  at  least  two  unaffiliated  MVPDs  offering  comparable  service  to  more  than  50  percent  of  the  households 


 1  See  47  C.  F.  R.  §  76.  905;  Application  of  North  East  T.  V.  Cooperative,  Inc.  to  Transfer  Control  of  BRS  Station 
 Licenses  to  RC  Technologies  Corporation;  47  C.  F.  R.  §  27.  1202;  Letter  dated  January  21,  1998  from  Roy  J.  Stewart,  Chief,  Mass  Media  Bureau  to  Charles  G.  Cline,  Kenneth  W.  Garrard,  BellSouth  Wireless  Cable,  Inc.  and  BellSouth 


 Corporation  (File  Nos.  50849-  CM-  AL(  1)-  97  and  50851-  CM-  AL(  2)-  97).  2 
 47  U.  S.  C.  §  543(  a)(  2);  47  C.  F.  R.  §  76.  905(  a).  3 
 47  U.  S.  C.  §  543(  l)(  1)(  B);  47  C.  F.  R.  §  76.  906(  b)(  2).  4 
 47  C.  F.  R.  §  76.  906.  5 
 47  C.  F.  R.  §  76.  911(  b)(  1). 
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 Federal  Communications  Commission  DA  05-  1912 
 2 
 therein.  RC  asserts  that  the  service  of  direct  broadcast  satellite  providers  such  as  DIRECTV  and  EchoStar  satisfy  this  requirement.  6  We  therefore  find  that  RC  has  submitted  sufficient  evidence  to  satisfy  the  first 
 prong  of  the  competing  provider  test. 
 4.  RC  has  also  submitted  sufficient  evidence  demonstrating  that  the  number  of  households  subscribing  to  MVPDs  other  than  the  largest  MVPD,  in  this  case  RC,  exceeds  15  percent  of  the 


 households  in  all  of  the  franchise  areas.  7  Relying  on  DBS  subscribership  reports  obtained  from  the  Satellite  Broadcasting  and  Communications  Association  (“  SBCA”),  RC  submits  evidence  that  the 
 aggregate  subscribership  to  DBS  service  in  the  franchise  areas  exceeds  15  percent  of  the  households  therein.  8  We  find  that  RC  has  submitted  sufficient  evidence  to  satisfy  the  second  prong  of  the  competing 
 provider  test,  thereby  establishing  the  presence  of  effective  competition. 
 5.  Accordingly,  IT  IS  ORDERED  that  the  request  for  a  determination  of  effective  competition  in  New  Effington,  Summit,  Veblen  and  Wilmot,  South  Dakota  filed  by  RC  Technologies 


 Corporation  IS  GRANTED. 
 6.  This  action  is  taken  pursuant  to  delegated  authority  pursuant  to  Section  0.283  of  the  Commission’s  rules.  9 


 FEDERAL  COMMUNICATIONS  COMMISSION 


 Steven  A.  Broeckaert  Deputy  Chief,  Policy  Division,  Media  Bureau 


 6  Petition  at  2-  3. 
 7  Id.  at  3. 
 8  Id  at  3  and  Attachment  D. 
 9  47  C.  F.  R.  §  0.283. 
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