Federal Communications Commission DA 08-1413 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of Comcast Cable Communications, LLC, on behalf of its subsidiaries and affiliates Petitions for Determination of Effective Competition in 42 Southeastern Pennsylvania Franchise Areas ) ) ) ) ) ) ) ) CSR Nos. 7626-E, 7627-E, 7628-E, 7629-E, 7630-E, 7631-E, 7632-E, 7633-E, 7634-E MEMORANDUM OPINION AND ORDER Adopted: June 12, 2008 Released: June 13, 2008 By the Senior Deputy Chief, Policy Division, Media Bureau: I. INTRODUCTION AND BACKGROUND 1. Comcast Cable Communications, LLC, hereinafter referred to as “Petitioner,” has filed with the Commission nine petitions pursuant to Sections 76.7 and 76.905(b)(4) and 76.907 of the Commission’s rules for a determination that Petitioner is subject to effective competition in those communities listed on Attachment A and hereinafter referred to as “Communities.” Petitioner alleges that its cable systems serving the Communities are subject to effective competition pursuant to Section 623(1)(1)(D) of the Communications Act of 1934, as amended (“Communications Act”)1 and the Commission’s implementing rules,2 and are therefore exempt from cable rate regulation in the Communities because of the competing service provided by Verizon Pennsylvania, Inc., hereinafter referred to as “Competitor.” The petitions are unopposed. 2. In the absence of a demonstration to the contrary, cable systems are presumed not to be subject to effective competition,3 as that term is defined by Section 623(l) of the Communications Act and Section 76.905 of the Commission’s rules.4 The cable operator bears the burden of rebutting the presumption that effective competition does not exist with evidence that effective competition is present within the relevant franchise area.5 For the reasons set forth below, we grant the Petitions based on our finding that Petitioner is subject to effective competition in the Communities listed on Attachment A. II. DISCUSSION 3. Section 623(l)(1)(D) of the Communications Act provides that a cable operator is subject to effective competition if a local exchange carrier (“LEC”), or its affiliate, offers video programming services directly to subscribers by any means (other than direct-to-home satellite services) in the franchise area of an unaffiliated cable operator which is providing cable service in that franchise area, but only if the video programming services offered in that area are comparable to the video programming services 1See 47 U.S.C. § 543(1)(1)(D). 247 C.F.R. § 76.905(b)(4). 347 C.F.R. § 76.906. 4See 47 U.S.C. § 543(l) and 47 C.F.R. § 76.905. 5See 47 C.F.R. §§ 76.906 & 907. Federal Communications Commission DA 08-1413 2 provided by the competing unaffiliated cable operator.6 This test is otherwise referred to as the “LEC” test. 4. The Commission has stated that the incumbent cable operator must show that the LEC intends to build-out its cable system within a reasonable period of time if it has not completed its build- out; that no regulatory, technical, or other impediments to household service exist; that the LEC is marketing its services so that potential customers are aware that the LEC’s services may be purchased; that the LEC has actually begun to provide services; the extent of such services; the ease with which service may be expanded; and the expected date for completion of construction in the franchise area.7 It is undisputed that these Communities are served by both Petitioner and Competitor, a local exchange carrier, and that these two MVPD providers are unaffiliated. The “comparable programming” element is met if a competing MVPD provider offers at least 12 channels of video programming, including at least one channel of nonbroadcast service programming8 and is supported in these petitions with copies of channel lineups for Competitor.9 Finally, Petitioner has demonstrated that the Competitor has commenced providing video programming service within the Communities, has marketed its services in a manner that makes potential subscribers reasonably aware of its services, and otherwise satisfied the LEC effective competition test consistent with the evidentiary requirements set forth in the Cable Reform Order.10 5. Based on the foregoing, we conclude that Petitioner has submitted sufficient evidence demonstrating that its cable systems serving the Communities have met the LEC test and are subject to effective competition. III. ORDERING CLAUSES 6. Accordingly, IT IS ORDERED that the petitions for a determination of effective competition filed in the captioned proceeding by Comcast Cable Communications, LLC, ARE GRANTED. 7. IT IS FURTHER ORDERED that the certification to regulate basic cable service rates granted to any of the Communities set forth on Attachment A IS REVOKED. 8. This action is taken pursuant to delegated authority pursuant to Section 0.283 of the Commission’s rules.11 FEDERAL COMMUNICATIONS COMMISSION Steven A. Broeckaert Senior Deputy Chief, Policy Division Media Bureau 6See 47 U.S.C. § 543(l)(D). 7See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 14 FCC Rcd 5296, 5305-06, ¶¶ 13-15 (1999) (“Cable Reform Order”). 8See 47 C.F.R. § 76.905(g). See also Petitions CSR 7626-E through CSR 7634-E at pages 12-13 and Exhibit 17. 9See Petitions CSR 7626-E through CSR 7634-E at Exhibit 17. 10See Cable Reform Order, 14 FCC Rcd at 5305-06, ¶¶ 13-15. See also Petitions CSR 7626-E through CSR 7634-E at pages 5-12. 1147 C.F.R. § 0.283. Federal Communications Commission DA 08-1413 3 ATTACHMENT A COMMUNITIES SERVED BY COMCAST CABLE COMMUNICATIONS, LLC, ON BEHALF OF ITS SUBSIDIARIES AND AFFILIATES CSR 7626-E Communities CUID(S) Bensalem PA1096 Hulmeville PA1915 Langhorne Manor PA1916 Lower Southampton PA1111 New Britain PA1946 Plumstead PA2593 Upper Makefield PA2684 Wrightstown PA2435 CSR 7627-E Communities CUID(S) Hatfield Borough PA2129 Hatfield Township PA1623 CSR 7628-E Communities CUID(S) Ambler PA1728 Charlestown PA2122 Horsham PA1791 East Pikeland PA2121 Lansdale PA1701 Lower Gwynedd PA2479 Montgomery PA1833 Schuykill PA1194 Springfield PA1143 Towamencin PA1748 Upper Dublin PA2004 Upper Gwynedd PA2005 Upper Merion PA1927 Upper Providence PA1572 Whitpain PA1991 CSR 7629-E Communities CUID(S) Birmingham PA2490 Charlestown PA3146 East Bradford PA2491 East Goshen PA1788 East Whiteland PA1849 Easttown PA1848 Pocopson PA2492 Thornbury (Chester) PA2390 Thornbury (Delaware) PA2683 Tredyffrin PA1850 West Bradford PA2159 West Chester PA1462 Federal Communications Commission DA 08-1413 4 West Goshen PA1461 West Pikeland PA2495 Westtown PA1789 CSR 7630-E Communities CUID(S) Charlestown PA2519 East Goshen PA1847 Pocopson PA2784 Westtown PA2516 CSR 7631-E Communities CUID(S) Lower Moreland PA2014 Upper Moreland PA1655 CSR 7632-E Communities CUID(S) Lower Gwynedd PA2634 CSR 7633-E Communities CUID(S) Radnor PA2034 CSR 7634-E Communities CUID(S) Whitpain PA2363