///newjob/// $///DA 95-470,4/6/95,RO///$ $// Order; Bell Atlantic; Channel Reservation Dep.; DA 95-470 //$ $/ Section 0.291 Delegated Authority//$ TRANSMITTED FOR FCC RECORD ONLY Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 DA 95-470 In the Matter of ) The Bell Atlantic Telephone Companies) Transmittal No. 741 Tariff F.C.C. No. 10 ) No. 756 ) Channel Reservation Deposit ) ORDER Adopted: March 10, 1995 Released: March 10, 1995 By the Acting Chief, Tariff Division, Common Carrier Bureau: 1. On January 27, 1995, Bell Atlantic filed Transmittal No. 741 to provide video dialtone service in Dover, New Jersey. Transmittal No. 741 has two sections. The first section introduces the Channel Reservation Deposit (CRD), and the second proposes rates, terms, and regulations for the provision of video dialtone service in Dover. This Order only deals with the Channel Reservation Deposit. 2. Petitions to reject or, in the alternative, suspend and investigate were filed against the Channel Reservation Deposit portion of Transmittal No. 741 by: the Atlantic Cable Coalition (ACC); AT&T Corporation; Cablevision Systems Corporation; Adelphia Communications Corporation, Comcast Cable Communications, Inc., Cox Enterprises, Inc., and Jones Intercable, Inc. (Joint Petitioners); and, the National Cable Television Association (NCTA). Bell Atlantic filed Transmittal No. 756 on March 10, 1995 to reissue and revise the Channel Reservation Deposit section of Transmittal No. 741. 3. The CRD allows prospective video dialtone programmer-customers (PCs) to reserve channel capacity on Bell Atlantic's video dialtone system in Dover. The CRD is a per channel deposit of $1,800 that will be credited towards the PC's nonrecurring and monthly charges for video dialtone service until the balance is depleted. The tariff contains an allocation plan if demand for channels exceeds the channel capacity of the system. The tariff also specifies certain situations in which PCs will be able to request a full or partial refund of the CRD. The CRD will be accepted during an enrollment period prior to the effective date of the video dialtone service tariff. The enrollment period for Dover will be March 13, 1995 through April 10, 1995. 4. Petitioners argue that the CRD should not be considered separately from the video dialtone service tariff since the deposit amount is based on two months service using a rate and a rate structure which have not yet been approved. The petitioners also complain that the tariff is overly broad because the provisions could apply to all of Bell Atlantic's service areas, even though Bell Atlantic only has authority to provide service in Dover. ACC contends that the channel allocation plan is discriminatory since Bell Atlantic intends to exempt FutureVision. Joint Petitioners also complain that the tariff does not limit the number of channels any single PC can obtain, and does not prevent "warehousing" of channels. NCTA and Cablevision also contend that the enrollment period should be longer. They also argue that PCs should be able to withdraw their channel request if there is any increase in the effective tariff rates from the proposed rates, not just when such increases are more than 10 percent. 5. In its reply, Bell Atlantic argues that the CRD does not involve a new service or new rate element, and thus does not require a Part 69 waiver. It notes that in other proceedings, the Commission has authorized it to collect deposits which were calculated on the same basis as the CRD. Bell Atlantic argues that its Section 214 authorization affirmed the reasonableness of its agreement with FutureVision, and found that even setting aside those channels the system would have sufficient capacity for other PCs. It notes that it has voluntarily placed a 50 percent limit on the amount of capacity any single PC may purchase during the first year of video dialtone service. It argues that the CRD prevents "warehousing" because the tariff requires PCs to make advance payments for channels and also requires billing to start for those PCs which have not begun service either nine months after they receive notice of final channel capacity allocations or 90 days after effective date of the service tariff, whichever is later. Bell Atlantic argues that its four-week enrollment period balances the needs of PCs to make their business decisions and the need to conclude the process in a timely fashion, and that this period is well within the range of enrollment dates the Commission has previously approved. Bell Atlantic also argues that allowing a PC to withdraw its channel reservation based on de minimis changes in rates would provide incentives for PCs to reserve as much capacity as possible. It further argues that since the CRD is an advance payment, PCs suffer no financial harm due to de minimis changes in the rates. 6. According to Bell Atlantic, Transmittal No. 756 revises the CRD to provide more clarity. The revised language lists only Bell Atlantic-New Jersey as the issuing carrier and specifies that video dialtone service is currently available only in Dover. It states that the CRD is $1,800 per channel. It also states that during the initial enrollment period no PC may request more than 50 percent of the system's capacity. It clarifies that the CRD will be refunded in full or in part if the rates on the initial date the video dialtone service tariff becomes effective, increases a PC's bill by more than 5 percent. Transmittal No. 756 also defers the effective date of the channel allocation provisions of the tariff until April 19, 1995. 7. We have reviewed the channel reservation portion of Bell Atlantic's Transmittal No. 741 and Transmittal No. 756, the petitions filed by ACC, AT&T, Cablevision, Joint Petitioners and NCTA, and all associated pleadings. We conclude that the provisions of Transmittals Nos. 741 and 756 which take effect on March 13, 1995 are not patently unlawful so as to warrant rejection and the petitioners have not raised any issue that warrants suspension and investigation of Bell Atlantic's channel reservation deposit at this time. 8. Accordingly, IT IS ORDERED THAT the petitions for suspension and investigation or rejections filed by the Atlantic Cable Coalition; AT&T Corporation; Cablevision Systems Corporation; Adelphia Communications Corporation, Comcast Cable Communications, Inc., Cox Enterprises, Inc., and Jones Intercable, Inc.; and, the National Cable Television Association, against Bell Atlantic Telephone Companies, Transmittal No. 741 -- Channel Reservation Deposit, ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Geraldine Matise Acting Chief, Tariff Division Common Carrier Bureau