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MIDDLEBUTTONMINUSVKANYpxtll\tll@\@\`LCourierCG Times); Rm. 900_1; LPT2HPLA4SAD.PRSXw PE37\;+OXP2 /  0  CourierCG TimesCG Times BoldCG Times ItalicXx6X@X@ #X P7=9XP#X01Í ÍX0Í/ Í/ ҫXx6X@X@<6X9`+CourierXX P7XP* `CG TimesXX P7XP* `CG TimesXX P7XP* `CG TimesXX P7XP* `CG TimesXX P7XP* `CG TimesXX P7XP* `CG TimesXX P7XP) p`CG TimesXX P7XP* `CG TimesXX P 7XP* `CG TimesXX P 7XP* `CG TimesXX P 7XP* `CG TimesXX P 7XP* `CG TimesXX P 7XP* `CG TimesXX P7XP* `CG TimesXX P7XP* `CG TimesXX P7XP* `CG TimesXX P7XP* `CG TimesXX P7XP* `CG TimesXX P7XP* `CG TimesXX P7XP* `CG TimesX2JXI 3|x23f LS7jf '",tB^ f ^;C]ddCCCdCCCCddddddddddCCY~~vCN~sk~CCCddCYdYdYCdd88d8ddddJN8ddddYYdYd4dddddCddddddddd8YYYYYY~Y~Y~Y~YC8C8C8C8ddddddddddYdddddsdXdXXXddx|X~d~d|XdddddddC8ddddCdoddd|8|H~d<|8dtddddHHdlLlLlLkd|H|8~ddddddddXXXd~ddkd~ddxCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCYQQddddddFddddFCChhd44ddzzdddvooChdF"dhd9dCCzCddoddCdYds]zUvdYYCCCCz~ozoY~NYdYC8YooYdYzsdzdd~YYzozzz~CdzYzzzzCCdddddddzCsdYC\   pxtll\tll@\@\`L",tB^ f ^;C]ddCCCdCCCCddddddddddCCdxN`xoCCCddCdoYoYFdo8Co8odooYNCodddYdddd4dddddCddddddddo8dddddYYYYYN8N8N8N8oddddooooddpddddxodddXXddXddXdddddooL8doddNorddo8PdN8ppoddXXdpLoNpLodPDdopoopodXYXodoodddCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCdUUddddddFddddFCCssd44ddzzddd~ooCsdF"dsd9dCCzCddoddCdYds`zUvdddCCCCzozoYNYYYN8YooYdYzzdzddYYzozzzNdzYzzzzCCdddddddzCzdYC\   pxtll\tll@\@\`L2>f J3Zq [",tB^ f ^;C`ddCCCdCCCCddddddddddCCdxxxsCYoxxdoxxooCCCddCddYdY8dd88Y8ddddLL8dYYYLYdYd4dddddCddddddddd8xdxdxdxdxdYxYxYxYxYC8C8C8C8dddddddddoYxddddoYdxdxdxdxdXXddxxXxdxdxXdddddddD8ddddCdddddp8pHodp8p8dxddddxLxLxddLdLdLddpHp8odddddddodpLpLpLdoddddododxCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCd]]ddddddFddddFCCddd88ddzzdddkddCddF"ddd9dCCzCdzdoddCdYds]zUvdYYCCCCzzzozoYzNoYdYC8YooYdYzzdzddoYoYzzozzzzzCdoozYzzzzCCddddzdddooozCsdYC\   pxtll\tll@\@\`L2>  a"  Y-#X P7=9XP#D  aX0Í/ Í/ X8Í/ Í/ @7Before the FEDERAL COMMUNICATIONS COMMISSION  Washington, D.C. 20554  Y-In the Matter of hh@) x` `  hh@)  Yc-Implementation of Section 302 of the @)hCS Docket No. 9646  Y(-Telecommunications Act of 1996hh@) x` `  hh@)  Y-Open Video Systems hh@)  Y -* COMMENTS ă   xComcast Cable Communications, Inc., Adelphia Communications Corporation and InterMedia Partners, L.P., by their attorneys, hereby submit these comments in response to  Y-the Commission's Notice of Proposed Rulemaking (the "Notice") in the abovereferenced proceeding.     Xx- I.xINTRODUCTION  xThe Telecommunications Act of 1996 (the "1996 Act") eliminated the longstanding regulatory and statutory prohibitions on cabletelco crossownership and established several alternative methods by which local exchange carriers may provide video programming to subscribers in their telephone service areas. If a LEC chooses to provide video programming to subscribers by means other than radio communications, it has two options. First, it may provide such programming as a franchised cable operator, subject to all the provisions and requirements of Title VI of the Communications Act of 1934, as amended, 47 U.S.C.  521  Y-et seq. Second, it may provide such programming by means of an "open video system," ("OVS") subject to the requirements set forth in Section 653, as implemented by the Commission, and to certain Title VI requirements, such as must carry and PEG access. xCongress intended, in establishing an open video system option with "reduced  Y$-regulatory burdens,"$ Yi'-#X P7=9XP#эConference Report, H.R. Rep. 104458, 104th Cong. 2d Sess. 178 (1996) ("Conference Report"). to encourage the entry of telephone companies into the video"$b 0*0*0*-" marketplace in order to promote "vigorous competition in entertainment and information  Y-markets."XY Y-#X P7=9XP#эId.X Congress believed that "telephone companies need to be able to choose from among multiple video entry options to encourage entry."D#X P7XP#эId.D While Congress may have sought to reduce the regulatory burdens for telephone companies in connection with entering the video market, it did not intend to establish a regulatory regime that gives telephone companies a permanent advantage over incumbent cable operators. The Commission's task in implementing the statute should be to establish a regulatory framework that first removes unnecessary barriers to entry, and then ensures that success in the market is determined by skill, foresight and efficiency and not by artificial regulatory advantages. This requires, ultimately, that cable operators have the same flexibility as telephone companies in determining how they provide video service to consumers. Accordingly, cable operators should be permitted to compete as facilitiesbased providers of OVS in the same manner as telephone companies. They also should be permitted to provide programming on telephone company OVS facilities, along with telephone company and other competing program providers. In addition, if there is to be sustainable, facilitiesbased competition, the Commission must adopt rules that minimize the LECs' ability to crosssubsidize their video facilities or market their services in an anticompetitive manner. Therefore, the Commission quickly should commence a proceeding to address the allocation of costs between video and telephone services when LECs rebuild their facilities to offer video services. The Commission also must establish a limited restriction on joint marketing of OVS and local exchange service by a LEC until a competing cable operator has the opportunity to offer a similar package of services. Unless the Commission has rules in place to prevent anticompetitive conduct before LECs begin offering video service, the goal of facilitiesbased competition will be in jeopardy.  II.CABLE OPERATORS SHOULD BE PERMITTED TO OWN AND OPERATE OVS FACILITIES AND TO PROVIDE PROGRAMMING ON OVS FACILITIES OWNED BY TELEPHONE COMPANIES.  4 <DL!T$&)\+- 0d24The Commission tentatively concludes that, "if the statutory language permits, we believe there may be significant benefits to permitting cable operators and others to become open video system operators." X` hp x (#%'0*,.8135@8: