Federal Communications Commission DA 11-649 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of Time Warner Cable Inc. Petitions for Determination of Effective Competition in Various Ohio and Michigan Communities ) ) ) ) ) ) ) CSR 8391-E, CSR 8392-E , CSR 8393-E, CSR 8394-E, CSR 8395-E, CSR 8396-E & CSR 8397-E MEMORANDUM OPINION AND ORDER Adopted: April 8, 2011 Released: April 8, 2011 By the Senior Deputy Chief, Policy Division, Media Bureau: I. INTRODUCTION AND BACKGROUND 1. Time Warner Cable Inc., hereinafter referred to as “Petitioner,” has filed with the Commission petitions pursuant to Sections 76.7, 76.905(b)(1) 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 system serving the Communities is subject to effective competition pursuant to Section 623(l)(1)(A) of the Communications Act of 1934, as amended (“Communications Act”)1 and the Commission’s implementing rules,2 and is therefore exempt from cable rate regulation in the Communities because Petitioner serves fewer than 30 percent of the households in the franchise areas. 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)(A) of the Communications Act provides that a cable operator is subject to effective competition if the Petitioner serves fewer than 30 percent of the households in the franchise area. This test is referred to as the “low penetration” test.6 Petitioner alleges that it is subject to effective competition under the low penetration effective competition test because it serves less that 30 percent of the households in the franchise areas. 1 See 47 U.S.C. § 543(l)(1)(A). 2 47 C.F.R. § 76.905(b)(1). 3 47 C.F.R. § 76.906. 4 See 47 U.S.C. § 543(l); 47 C.F.R. § 76.905. 5 See 47 C.F.R. §§ 76.906, -.907(b). 6 47 U.S.C. § 543(l)(1)(A). Federal Communications Commission DA 11-649 2 4. Based upon the subscriber penetration level calculated by Petitioner, as reflected in Attachment A, we find that Petitioner has demonstrated the percentage of households subscribing to its cable service is less than 30 percent of the households in the Communities. Therefore, the low penetration test is satisfied as to the Communities. III. ORDERING CLAUSES 5. Accordingly, IT IS ORDERED that the petitions for a determination of effective competition filed in the captioned proceeding by Time Warner Cable Inc., ARE GRANTED. 6. 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. 7. This action is taken pursuant to delegated authority pursuant to Section 0.283 of the Commission’s rules.7 FEDERAL COMMUNICATIONS COMMISSION Steven A. Broeckaert Senior Deputy Chief, Policy Division, Media Bureau 7 47 C.F.R. § 0.283. Federal Communications Commission DA 11-649 3 ATTACHMENT A CSR 8391-E, CSR 8392-E, CSR 8393-E, CSR 8394-E, CSR 8395-E, CSR 8396-E & CSR 8397-E COMMUNITIES SERVED BY TIME WARNER CABLE INC. Communities CUIDs Franchise Area Households Cable Subscribers Penetration Percentage South Webster, Village of OH1267 312 34 10.90 Benton Township OH1917 543 103 18.97 Mifflin Township OH1916 430 14 3.26 Newton Township OH1154 727 116 15.96 Pebble Township OH1918 812 70 8.62 Sunfish Township OH1915 485 28 5.77 Morenci, City of MI0923 877 167 19.04 Northwood, City of OH0182 2024 480 23.72 Perrysburg Township OH1134 5161 278 5.39 Washington Township OH1933 630 5 0.79 Commercial Point, Village of OH1866 277 39 14.08 Darbyville, Village of OH1865 94 13 13.83 Jackson Township OH2150 323 1 0.31 Muhlenburg Township OH2149 300 6 2.00 Scioto Township OH1970 1243 144 11.58 Clarksburg, Village of OH0602 178 7 3.93 Deercreek Township OH2000 586 2 0.34 New Holland, Village of OH1534 OH1868 313 72 23.00 Perry Township OH1999 510 5 0.98 Williamsport, Village of OH1532 355 63 17.75 Bedford Township OH1942 491 1 0.20 Lodi Township OH1940 550 1 0.18 Rutland Township OH2465 894 6 0.67 Salisbury Township OH1941 2728 20 0.73 Scipio Township OH1943 400 25 6.25