Federal Communications Commission DA 96-1723
Before the
Federal Communications Commission 
Washington, D.C. 20554
Bell Atlantic-New Jersey, Inc. )
Certification to Operate an )
Open Video System )
ORDER 
Adopted: October 17, 1996 Released: October 17, 1996
By the Chief, Cable Services Bureau:
1. On October 7, 1996, Bell Atlantic-New Jersey, Inc. filed an application for 
certification to operate an open video system pursuant to Section 653(a)(l) of the 
Communications Act and the Commission's rules. 1 Also on October 7,1996, Bell Atlantic-New 
Jersey, Inc. filed a motion for extension of time to transition its video dialtone system to an open 
video system as required by the Commission in its First Order on Reconsideration.2 This motion 
for extension of time will be addressed in a separate Order.
2. As provided in our rules, the Commission published notice of receipt of the 
certification application and posted the application on the Internet3 Comments on the 
certification application were timely filed on October 15, 1996 by the National Cable Television 
Association ("NCTA"), the New Jersey Cable Telecommunications Association ("NJCTA"), and
'Communications Act of 1934, as amended, § 653(aXD, 47 U.S.C. § 573(aXD ("Communications Act"). See 
also 47 C.FJL § 76.1502.
2See In the Matter of Implementation of Section 302 of the Telecommunications Act of 1996; Open Video 
Systems. CS Docket No. 96-46, FCC 96-312, First Order on Reconsideration (released July 23, 1996) (First Order 
on Recon.").
'See In the Matter of Implementation of Section 302 of the Telecommunications Act of 1996, Open Video 
Systems, Second Report and Order, CS Docket No. 96-46,61 FR 28698 (6/5/96), FCC 96-249, released June 3, 1996 
at t 34- ("Second Report and Order"). The Commission's revised rules adopted In the Matter of Implementation 
of Section 302 of the Telecommunications Act of 1996, Open Video Systems, Third Report and Order and Second 
Order on Reconsideration, CS Docket No. 96-46, 61 FR 43160 (8/21/96), FCC 96-334, released August 8, 1996 
("Third Report and Order") were not in effect at the time of Bell Atlantic's application. The application was placed 
on the Internet on October 8, 1996 and published in the Daily Digest on October 10. 1996.
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Federal Communications Commission DA 96-1723
Clear Cablevision. Inc. d/b/a Adelphia Cable Communications ("Adelphia").4 For the reasons 
stated below, we approve the application.
3. Pursuant to Section 653(a)(l) of the Communications Act, any person may obtain 
certification to operate an open video system.5 In light of the brief period (ten days) for 
Commission review of certification filings, the Commission concluded that Congress intended a 
streamlined certification process.6 Thus, no pre-certification submissions or approvals are 
required in the effort to keep the open video system certification process from erecting the same 
barriers to entry and potential for delay that Congress sought to avoid by eliminating the 
requirement that a common carrier obtain Commission approval under Section 214 to construct 
a !iew facility prior to the establishment of a video delivery system.7 Open video system 
operators may apply for certification at any point prior to the commencement of service, subject 
to two conditions. If construction of new physical plant is required, the applicant must obtain 
( ummission approval of its certification prior to the commencement of construction. If no new 
construction is required, certification must be obtained prior to the commencement of service, 
allowing sufficient time to comply with the Commission's notification requirements to 
programming providers.8
4. Despite its streamlined nature, the Commission intended the certification process 
to provide purposeful representations regarding the responsibilities of the open video system 
operator, by requiring, inter alia, the submission of specified information and that certifications 
be verified.9 To obtain certification, a party must file FCC Form 1275 which requires, among 
other things: (a) a statement ol ownership, including a list of all affiliated entities;10 (b) a 
representation that the applicant will comply with the Commission's regulations under Section
'Comments and oppositions must be filed within five days of the Commission's receipt of the application. See 
Second Report and Order at J 35. 47 C.F.R. 76.1502(e).
'47 C.F.R. § 76.1501. An operator of a cable system, however, generally may not obtain such certification 
within its cable service area unless it is subject to "effective competition" as defined in Section 623(1)(1) of the 
Ccmmunications Act, 47 U.S.C. § 543(1X0. See also 47 C.F.R. § 76.1501.
"Second Report and Order at ^ 28.
'See Communications Act § 651(c); Conference Report at 172-73. See also Second Report and Order at fflf 28-
29.
"second Report and Order at 1 34; 47 C.F.R. § 76.1502 (a). 
'Second Report and Order at K 31.
10We note that for purposes of determining whether a party is an affiliate, we have adopted the definitions 
contained in the notes to Section 76.501 of our rules, with certain modifications. Generally, we will consider an 
entity to be an open video system operator's "affiliate" if the open video system operator holds 5% or more of the 
entity's stock, whether voting or non-voting. Third Report and Order at U 13.
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Federal Communications Commission DA 96-1723
653(b); 11 (c) a general description of the anticipated communities or areas to be served: (d) a 
statement on the anticipated type and amount of capacity that the system will provide.
5. We have reviewed the information contained in the Form 1275 filed by Bell 
Atlantic-New Jersey, Inc. and the comments of NCTA, NJCTA and Adelphia. In its filing, Bell 
Atlantic-New Jersey, Inc. provides, as requested by Form 1275: company information including 
a separate statement of ownership, including all affiliated entities; makes the required eligibility 
and compliance representations; and provides the required system information, system capacity 
and verification statements. The comments of NCTA, NJCTA and Adelphia do not question the 
accuracy of the information provided by Bell Atlantic-New Jersey, Inc. that is required by FCC 
Form 1275. NCTA specifically states it does not oppose Bell Atlantic-New Jersey, Inc.'s 
certification request. NJCTA acknowledges it cannot provide evidence that Bell Atlantic-New 
Jersey, Inc. had not fully completed the application. Adelphia also states that it does not directly 
oppose Bell Atlantic-New Jersey, Inc.'s request for certification. 12 We conclude that Bell 
Atlantic-New Jersey, Inc. has provided the requisite facts and representations concerning the open 
video system it intends to operate and has certified that it "agrees to comply and remain in 
compliance with each of the Commission's regulations" under Section 653(b). 13
6. NCTA, NJCTA, and Adelphia each use their comments as an opportunity to 
reiterate the need for the Commission to act quickly to establish cost allocation rules to apportion 
the cost of integrated plant intended for use in the provision of regulated Title II telephone 
services and video services. 14 NCTA urges the Commission to act expeditiously, asserting that 
the rules are necessary to allow Bell Atlantic-New Jersey, Inc. and its competitors to undertake 
critical and essential marketplace decisions. NJCTA notes that Bell Atlantic-New Jersey, Inc. has 
already incurred costs in constructing and operating a video dialtone system. In light of this 
"unusual circumstance," NJCTA requests that the Commission exercise its authority to condition 
the company's certification on a complete investigation and accounting of the costs already 
incurred and to be incurred in constructing and operating the Dover Township system. Similarly,
"Under this section the applicant agrees to comply with the Commission's requirements regarding non- 
discriminatory carriage; just and reasonable rates, terms and conditions; a one-third capacity limit on the amount of 
activated channel capacity on which an open video system operator may select programming when demand for 
carriage exceeds system capacity; channel sharing; application of the rules concerning sports exclusivity, network 
non-duplication, and syndicated exclusivity; and non-discriminatory treatment in presenting information to 
subscribers.
l2See NCTA's comments at 1; NJCTA's comments at 5; Adelphia's comments at 1.
"If the representations contained in the certification filing prove to be materially false or materially inaccurate, 
the Commission retains the authority to revoke an open video system operator's certification or to impose such oilier 
penalties it deems appropriate, including forfeiture. See Second Report and Order at U 36.
l4We note that there is a rulemaking presently pending concerning this issue. See In the Matter of Allocation 
of Costs Associated with Local Exchange Carrier Provision of Video Programming Services, Notice of Proposed 
Rulemaking in CC Docket No. 96-112, FCC 96-214 (released May 10, 1996), 61 Fed. Reg. 25,184 (1996).
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Federal Communications Commission DA 96-1723
Adelphia urges the immediate adoption of cost allocation rules designed to ensure that 
certification produces fair competition to video programming distributors, including Adelphia. 
The issue of cost allocation is beyond the scope of the certification process. The certification 
process was established to examine the adequacy and accuracy of the information contained in 
the Form 1275 filing. We will not entertain requests for special reliefer conditions based upon 
extraneous issues in the context of an open video system certification proceeding.
7. Accordingly, IT IS ORDERED that the certification of Bell Atlantic-New Jersey, 
Inc. to operate an open video system is APPROVED.
8. This action is taken by the Chief, Cable Services Bureau, pursuant to the authority 
delegated by § 0.321 of the Commission's rules, 47 C.F.R. § 0.321.
FEDERAL COMMUNICATIONS COMMISSION
Meredith J. Jones
Chief, Cable Services Bureau
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