Federal Communications Commission DA 13-768 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of Time Warner Cable Inc. Petitions for Determination of Effective Competition in Communities in Kentucky and Ohio ) ) ) ) ) ) ) ) CSR 8548-E CSR 8549-E CSR 8550-E CSR 8551-E CSR 8552-E CSR 8553-E CSR 8554-E CSR 8555-E MEMORANDUM OPINION AND ORDER Adopted: April 15, 2013 Released: April 17, 2013 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.”1 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”),2 and the Commission’s implementing rules,3 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,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 petitions based on our finding that Petitioner is subject to effective competition in the Communities listed on Attachment A. 1 The Petition in CSR 8548-E included the name of Stokes Township in Logan County (OH0491), but incomplete evidence concerning it. Petitioner has requested that that Community be deleted from consideration, and we grant that request. See E-Mail from Craig Gilley, Esq., Edwards Wildman Palmer LLP, counsel for Petitioner, to John W. Berresford, Media Bureau Attorney, January 17, 2012, 1:25 PM. 2 See 47 U.S.C. § 543(l)(1)(A). 3 47 C.F.R. § 76.905(b)(1). 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 13-768 2 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.7 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. 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 or on behalf of 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.8 FEDERAL COMMUNICATIONS COMMISSION Steven A. Broeckaert Senior Deputy Chief, Policy Division, Media Bureau 7 47 U.S.C. § 543(l)(1)(A). 8 47 C.F.R. § 0.283. Federal Communications Commission DA 13-768 3 ATTACHMENT A CSRs 8548-E, 8549-E, 8550-E, 8551-E COMMUNITIES SERVED BY TIME WARNER CABLE INC. Communities CUIDs Franchise Area Households Cable Subscribers Penetration Percentage CSR 8548-E Harrison Township (Logan County) OH1992 1,221 134 10.97 Jackson Township (Knox County) OH2987 355 49 13.80 Jefferson Township (Logan County) OH1991 1,148 201 17.51 Jefferson Township (Madison County) OH0826 2,737 340 12.42 Lake Township (Logan County) OH1990 5,124 53 1.03 Liberty Township (Logan County) OH1993 1,345 50 3.72 Monroe Township (Logan County) OH3015 OH3110 611 2 .33 Richland Township OH3111 981 4 .41 Ridgeway Village OH1562 125 37 29.60 Rushcreek Township (Logan County) OH3109 800 1 .13 Union Township (Logan County) OH3108 307 11 3.58 Urbancrest Village OH2907 337 85 25.22 Washington Township (Hardin County) OH3103 306 12 3.92 CSR 8549-E Blakeslee Village OH3131 45 1 .02 Edon Village OH3132 30 1 .03 Florence Township (Williams County) OH3133 779 1 .01 Gorham Township (Fulton County) OH3046 900 7 .78 Grand Rapids Township (Wood County) OH1265 534 48 8.99 Latty Village OH2482 70 17 24.29 Madison Township (Williams County) OH3129 376 1 .01 Monroe Township (Putnam County) OH3064 843 3 .36 Pioneer Village OH3136 583 1 .01 CSR 8550-E Buckland Village OH2444 98 29 29.59 Cridersville Village OH0046 766 220 28.72 Richland Township (Allen County) OH1413 2,176 144 6.62 Shawnee Township (Allen County) OH0583 4,833 1,308 27.06 Uniopolis Village OH2158 83 17 20.48 CSR 8551-E Unincorporated Lewis County KY0917 KY0592 KY0916 4,855 300 6.17 Vanceburg KY0058 625 159 25.44 Federal Communications Commission DA 13-768 4 CSRs 8552-E, 8553-E, 8554-E, 8555-E COMMUNITIES SERVED BY TIME WARNER CABLE INC. Communities CUIDs Franchise Area Households Cable Subscribers Penetration Percentage CSR 8552-E Adams Township (Darke County) OH3051 1,264 17 1.34 Blue Creek Township (Paulding County) OH3105 275 3 1.09 Haviland Village OH3106 79 6 7.59 Minster Village OH0357 1,045 288 27.56 Scott Village OH3104 OH3112 111 9 8.11 CSR 8553-E Kingston Village OH0667 458 135 29.48 Madison Township (Highland County) OH3053 2,583 28 1.08 Piketon Village OH0535 820 239 29.15 Salt Creek Township (Pickaway County) OH1683 997 42 4.21 CSR 8554-E Harris Township (Ottawa County) OH1457 1,221 99 8.11 Madison Township (Sandusky County) OH3019 1,457 45 3.09 Orange Township (Hancock County) OH2633 534 59 11.05 Rossford City OH3137 2,568 3 .12 Toledo City OH3138 119,730 1 .01 CSR 8555-E Hanover Township (Licking County) OH1889 974 160 16.43 Spencer Township (Guernsey County) OH3048 415 2 .48 Westland Township (Guernsey County) OH3049 785 91 11.59