NEWSReport No. CS 96-31 CABLE SERVICES ACTION October 10, 1996 EFFECTIVE COMPETITION ORDER GRANTED FOR DOVER TOWNSHIP, NEW JERSEY CABLE OPERATOR The FCC's Cable Services Bureau has granted a petition finding the presence of "effective competition" in Dover Township, New Jersey under the local exchange carrier effective competition test adopted in the Telecommunications Act of 1996. The petition was filed by Adelphia Cable Communications ("Adelphia") regarding its system in Dover Township. The Order revokes the certification of the New Jersey Board of Public Utilities applicable to the Dover Township Adelphia franchise, which is known as Clear Cablevision. In its filing, Adelphia argued that the Dover Township system was subject to effective competition from FutureVision, a multichannel video programming distributor which uses the facilities of Bell Atlantic, the telephone local exchange carrier ("LEC"). Key elements of the order granting the petition include: The finding that the LEC met the effective competition test, which requires that competitive service be offered directly to subscribers in the franchise area of an unaffiliated cable operator which is providing cable service in that franchise area. In enacting the LEC test, Congress indicated that the Commission should apply its preexisting definition of the term "offer" to the LEC effective competition test. This definition provides that service is offered: (1) When the multichannel video programming distributor is physically able to deliver service to potential subscribers, with the addition of no or only minimal additional investment by the distributor, in order for an individual subscriber to receive service; and (2) When no regulatory, technical or other impediments to households taking service exist, and potential subscribers in the franchise area are reasonably aware that they may purchase the services of the multichannel video programming distributor. As noted by Adelphia, recent events regarding the ongoing competitive situation in Dover Township confirm not only that potential subscribers are likely to be aware of their competitive options but that the expected beneficial effects of competition are taking place. For example, FutureVision's entry as (over) - 2 - a video programming provider in Dover Township has had a marked impact upon the cable rates and services of Adelphia. After FutureVision began offering service, Adelphia lowered its monthly basic service rate from $25.28 to $18.95. FutureVision then lowered its monthly fee to $14.95. FutureVision's more than 2,600 subscribers, Bell Atlantic's ongoing installation activities in Dover, FutureVision's aggressive marketing efforts, and the extensive press coverage of Bell Atlantic and FutureVision's activities in the local media, ensure that potential subscribers are reasonably aware of the availability of competitive video distribution service. Although FutureVision's ability to offer service to households in some part of the franchise area remains somewhat restricted, in light of all the circumstances, the Bureau concluded that competitive service is being offered in a manner sufficient to comply with the applicable standard. Action by the Chief, Cable Services Bureau October 10, 1996, by Order (DA 96- 1691). - FCC - News Media Contact: Morgan Broman (202) 418-2358 Cable Services Bureau Contact: Steve Broeckaert (202) 418-7200