Federal Communications Commission DA 11-1792 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of Subsidiaries of Cablevision Petitions for Determination of Effective Competition in Four New York Communities ) ) ) ) ) ) CSR 8520-E CSR 8521-E CSR 8522-E MEMORANDUM OPINION AND ORDER Adopted: October 21, 2011 Released: October 31, 2011 By the Senior Deputy Chief, Policy Division, Media Bureau: I. INTRODUCTION AND BACKGROUND 1. Subsidiaries of Cablevision, hereinafter referred to as “Petitioner,” have filed with the Commission petitions pursuant to Sections 76.7, 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 the “Communities.”1 Petitioner alleges that its cable systems serving the Communities are subject to effective competition pursuant to Section 623(l)(1)(D) of the Communications Act of 1934, as amended (“Communications Act”)2 and the Commission’s implementing rules,3 and are therefore exempt from cable rate regulation in the Communities because of the competing service provided by Verizon New York 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,4 as that term is defined by Section 623(l) of the Communications Act and Section 76.905 of the Commission’s rules.5 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.6 For the reasons set forth below, we grant the Petition based on our finding that Petitioner is subject to effective competition in the Communities listed on Attachment A. 1 The specific Petitioners are, in CSR 8520-E, Cablevision of Ossining Limited Partnership for the Village of Pleasantville (NY0737), and Cablevision Systems Westchester Corp. and Cablevision of Wappingers Falls Inc. for the Town of Bedford (NY1423); in CSR 8521-E, the latter two companies for the Town of Bedford (NY0426); and, in CSR 8522-E, Cablevision of Southern Westchester, Inc., for the Village of Hastings-on-Hudson (NY0868) and the Village of Pelham (NY0803). 2 See 47 U.S.C. § 543(l)(1)(D). 3 47 C.F.R. § 76.905(b)(4). 4 47 C.F.R. § 76.906. 5 See 47 U.S.C. § 543(l); 47 C.F.R. § 76.905. 6 See 47 C.F.R. §§ 76.906-.907(b). Federal Communications Commission DA 11-1792 2 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 provided by the competing unaffiliated cable operator.7 This test is 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.8 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 programming9 and is supported in this petition with a copy of the channel lineup for Competitor.10 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.11 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. 7 See 47 U.S.C. § 543(l)(1)(D). 8 See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 14 FCC Rcd 5296, 5305-06, ¶¶ 13-15 (1999) (“Cable Reform Order”). 9 See 47 C.F.R. § 76.905(g). See also, e.g., Petition in CSR 8520-E at 12-13. 10 See also, e.g., Petition in CSR 8521-E at Exh. 7. 11 See Cable Reform Order, 14 FCC Rcd at 5305-06, ¶¶ 13-15. See also, e.g., Petition in CSR 8521-E at 6-12; Exh. 2, Declaration of Paul Jamieson, Cablevision’s Managing Counsel for Legislative and Regulatory Affairs, at ¶ 5 (Aug. 18, 2011). Federal Communications Commission DA 11-1792 3 III. ORDERING CLAUSES 6. Accordingly, IT IS ORDERED that the petitions for a determination of effective competition filed in the captioned proceeding by subsidiaries of Cablevision 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.12 FEDERAL COMMUNICATIONS COMMISSION Steven A. Broeckaert Senior Deputy Chief, Policy Division, Media Bureau 12 47 C.F.R. § 0.283. Federal Communications Commission DA 11-1792 4 ATTACHMENT A CSRs 8520-E, 8521-E, 8522-E COMMUNITIES SERVED BY SUBSIDIAIRES OF CABLEVISION Communities CUIDs Town of Bedford NY0426 NY1423 Village of Hastings-on-Hudson NY0868 Village of Pelham NY0803 Village of Pleasantville NY0737