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Fifty-Five Unopposed Effective Competition Petitions

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Released: March 26, 2014

Federal Communications Commission

DA 14-407

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of
)
)

Fifty-Five Unopposed Petitions for Determination
)
of Effective Competition
)

MEMORANDUM OPINION AND ORDER

Adopted: March 25, 2014

Released: March 26, 2014

By the Senior Deputy Chief, Policy Division, Media Bureau:

I.

INTRODUCTION AND BACKGROUND

1. By this Order, we grant fifty-five unopposed petitions for a finding of effective competition.
The unopposed petitions set forth on Attachments A, B and C were filed by various cable companies (the
“Petitioners”) seeking determinations of effective competition in their local franchise areas pursuant to
Sections 76.7, 76.905(b)(1), (2) and (4) and 76.907 of the Commission’s rules.1 Most of the Petitioners
allege that their cable systems are subject to effective competition in their local franchise areas (the
“Attachment A Communities”) pursuant to Section 623(l)(1)(B) of the Communications Act of 1934, as
amended (“Communications Act”) and Section 76.905(b)(2) of the Commission’s rules,2 and are
therefore exempt from cable rate regulation, principally because of the competing service provided by
two direct broadcast satellite (“DBS”) providers, DIRECTV, Inc., and DISH Network. Some Petitioners
claim to be exempt from cable rate regulation in their local franchise areas (the “Attachment B
Communities”) pursuant to Section 623(l)(1)(A) of the Communications Act and Section 76.905(b)(1) of
the Commission’s rules3 because those petitioners serve fewer than 30 percent of the households in their
franchise areas. Finally, some Petitioners claim to be exempt from cable rate regulation in their franchise
areas (the Attachment C Communities) pursuant to Section 623(l)(1)(D) of the Communications Act and
Section 76.905(b)(4) of the Commission’s rules4 because a local exchange carrier or its affiliate offers
comparable video programming services directly to subscribers in the Petitioner’s franchise area.
2. In the absence of a demonstration to the contrary, cable systems are presumed not to be
subject to effective competition5 as that term is defined by Section 623(l) of the Communications Act and
Section 76.905 of the Commission’s rules.6 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.7 For the reasons set forth below, we conclude that Petitioners have
carried that burden. We grant these unopposed petitions based on our finding that Petitioners are subject
to effective competition in the Communities listed on Attachments A, B and C.


1 47 C.F.R. §§ 76.7, 76.905(b)(1), (2), & (4), 76.907.
2 47 U.S.C. § 543(l)(1)(B); 47 C.F.R. § 76.905(b)(2).
3 47 U.S.C. § 543(l)(1)(A); 47 C.F.R. § 76.905(b)(1).
4 47 U.S.C. § 543(l)(1)(D); 47 C.F.R. § 76.905(b)(4).
5 47 C.F.R. § 76.906.
6 47 U.S.C. § 543(l); 47 C.F.R. § 76.905.
7 47 C.F.R. §§ 76.906, 76.907(b).

Federal Communications Commission

DA 14-407

II.

DISCUSSION

A.

The Competing Provider Test

3. Section 623(l)(1)(B) of the Communications Act provides that a cable operator is subject to
effective competition if its franchise area is (a) “served by at least two unaffiliated multichannel video
programming distributors [(“MVPDs”)] each of which offers comparable video programming to at least
50 percent of the households in the franchise area,” and (b) “the number of households subscribing to
programming services offered by [MVPDs] other than the largest [MVPD] exceeds 15 percent of the
households in the franchise area.”8 This test is referred to as the “competing provider” test.
4. We have reviewed each of the Attachment A petitions in full. We find that each petition
provides sufficient and reliable evidence to establish that both elements of the competing provider test for
effective competition are satisfied consistent with the Communications Act, our implementing rules, and
over 20 years of effective competition adjudicatory precedent. Specifically, we find that each of the
Attachment A Communities is served by at least two unaffiliated MVPDs each of which offers
comparable video programming to at least 50 percent of the households in the franchise area. We further
find that the number of households subscribing to programming services offered by MVPDs other than
the largest MVPD exceeds 15 percent of the households in each of the Attachment A Communities. Each
of the Petitioners has demonstrated the presence of effective competition in their respective franchise
areas. In so doing, Petitioners have satisfied their burden of rebutting the presumption that effective
competition does not exist with evidence that effective competition is present within the relevant
franchise areas.

B.

The Low Penetration Test

5. Section 623(l)(1)(A) of the Communications Act provides that a cable operator is subject to
effective competition if “fewer than 30 percent of the households in the franchise area subscribe to the
cable service of a cable system.” 9 This test is referred to as the “low penetration” test. Petitioners allege
that they are subject to effective competition under the low penetration effective competition test because
each serves fewer than 30 percent of the households in the Attachment B Communities.
6. We have reviewed each of the Attachment B petitions in full. We find that each petition
provides sufficient and reliable evidence to establish that the low penetration test for effective competition
is satisfied consistent with the Communications Act, our implementing rules, and over 20 years of
effective competition adjudicatory precedent. Specifically, we find that each of the Petitioners serves
fewer than 30 percent of the households in the Attachment B Communities. Each of the Petitioners has
demonstrated the presence of effective competition in their respective franchise areas. In so doing,
Petitioners have satisfied their burden of rebutting the presumption that effective competition does not
exist with evidence that effective competition is present within the relevant franchise areas.

C.

The Local Exchange Carrier Test

7.
Section 623(l)(1)(D) of the Communications Act provides that a cable operator is subject
to effective competition in franchise areas where “a local exchange carrier or its affiliate (or any [MVPD]
using the facilities of such carrier or its affiliate) offers video programming services directly to
subscribers by any means (other than direct-to-home satellite services) in the franchise area of an
unaffiliated cable operator which is providing cable service in that franchise area, but only if the video
programming services so offered in that area are comparable to the video programming services provided


8 47 U.S.C. § 543(l)(1)(B); 47 C.F.R. § 76.905(b)(2).
9 47 U.S.C. § 543(l)(1)(A); 47 C.F.R. § 76.905(b)(1).
2

Federal Communications Commission

DA 14-407

by the unaffiliated cable operator in that area.”10 This test is referred to as the “local exchange carrier”
test, or the “LEC” test. In implementing the LEC test, the Commission determined that an incumbent
cable operator could satisfy the LEC effective competition test by showing that the LEC is technically and
actually able to provide comparable services that substantially overlap the incumbent operator's service in
the franchise area.11
8.
We have reviewed each of the Attachment C petitions in full. We find that each petition
provides sufficient and reliable evidence to establish that the LEC test for effective competition is
satisfied consistent with the Communications Act, our implementing rules, and nearly 20 years of
effective competition adjudicatory precedent. Specifically, we find that each of the Petitioners has
demonstrated that the LEC competitor is technically and actually able to provide comparable services that
substantially overlap the Petitioner’s service in the Attachment C Communities. Each of the Petitioners
has demonstrated the presence of effective competition in their respective franchise areas. In so doing,
Petitioners have satisfied their burden of rebutting the presumption that effective competition does not
exist with evidence that effective competition is present within the relevant franchise areas.

III.

ORDERING CLAUSES

9. Accordingly,

IT IS ORDERED

that the petitions for a determination of effective
competition set forth in Attachments A, B and C

ARE GRANTED

.
10.

IT IS FURTHER ORDERED

that any certification to regulate basic cable service rates
granted to any of the Attachment A, B and C Communities

IS REVOKED

.
11. This action is taken pursuant to delegated authority pursuant to Section 0.283 of the
Commission’s rules.12
FEDERAL COMMUNICATIONS COMMISSION
Steven A. Broeckaert
Senior Deputy Chief, Policy Division, Media Bureau


10 47 U.S.C. § 543(l)(1)(D); 47 C.F.R. § 76.905(b)(4).
11 See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 14 FCC Rcd 5296,
5305 (1999) (“Cable Reform Order”).
12 47 C.F.R. § 0.283.
3

Federal Communications Commission

DA 14-407

Attachment A
Subject to Competing Provider Test

Bright House Networks, LLC

CUIDs

Proceedings and Communities

MB Docket 12-249, CSR-8702-E

Citrus County
FL0843

MB Docket 12-285, CSR 8717-E

Cedar Key
FL0261

MB Docket 12-337, CSR 8743-E

New Port Ritchey
FL0126
San Antonio
FL1006
St. Leo
FL1007
Zephyrhills
FL0679

MB Docket 13-215, CSR 8817-E

Chattahoochee
FL0167

MB Docket 13-217, CSR 8828-E

Lake View
AL0825

MB Docket 13-218, CSR 8829-E

Ariton
AL0499
Clio
AL0252
Louisville
AL0265

MB Docket 13-219, CSR 8830-E

Butler County
AL0421
Fort Deposit
AL0413
Georgiana
AL0253

MB Docket 13-220, CSR 8831-E

Blountstown
FL0169

MB Docket 13-221, CSR 8832-E

Coosada
AL0144
Deatsville
AL0754
Elmore County
AL0146
Tallassee
AL0145

MB Docket 13-222, CSR 8833-E

Eunola
AL0722
Geneva
AL0077
Hartford
AL0070
4

Federal Communications Commission

DA 14-407

Samson
AL0055
Slocomb
AL0069
Chipley
FL0024
De Funiak Springs
FL0038
Graceville
FL0586
Paxton
FL0965

Charter Communications

CUIDs

Proceedings and Communities

MB Docket 13-104, CSR 8780-E

Mankato
MN0002

Comcast

CUIDs

Proceedings and Communities

MB Docket 13-143, CSR 8801-E

Mansfield
MA0186
North Attleboro
MA0144

MB Docket 13-144, CSR 8802-E

Revere
MA0032

MB Docket 13-199, CSR 8822-E

Banks
OR0325
Beaverton
OR0283
Columbia City
OR0405
Cornelius
OR0318
Durham
OR0326
Forest Grove
OR0289
Gaston
OR0442
Hillsboro
OR0290
King
OR0317
North Plains
OR0341
Rivergrove
OR0330
Scappoose
OR0267
Sherwood
OR0327
St. Helens
OR0404
Tigard
OR0288
Tualatin
OR0328
Wilsonville
OR0331
Wilsonville
OR0332
Washington County
OR0231
Washington County
OR0333

MB Docket 13-251, CSR 8840-E

Peoria County
IL1021
Peoria Heights
IL0153
5

Federal Communications Commission

DA 14-407

MB Docket 13-252, CSR 8841-E

Champaign County
IL0541
Champaign County
IL0913
Indianola
IL1442
Oakwood
IL0547
Savoy
IL0540

MB Docket 13-253, CSR 8842-E

Blandinsville
IL0737
McDonough
IL0164

MB Docket 13-254, CSR 8843-E

Normal
IL0147

MB Docket 13-255, CSR 8844-E

Bartlett
IL0555

MB Docket 13-256, CSR 8845-E

DeKalb
IL0006
DeKalb County
IL1637

MB Docket 13-257, CSR 8846-E

Alcorn County
MS0223
Corinth
MS0023

MB Docket 13-258, CSR 8847-E

Dixon
IL0022
Hopkins
IL0095
Lee County
IL1182
Montmorency
IL0129

MB Docket 13-275, CSR 8850-E

Walterboro
SC0155

MB Docket 13-276, CSR 8851-E

Newberry
SC0012

MB Docket 13-285, CSR 8853-E

Grays Harbor County
WA0171
Grays Harbor County
WA0173
Grays Harbor County
WA0174
Grays Harbor County
WA0475
Grays Harbor County
WA0828
Grays Harbor County
WA0845
Raymond
WA0156

MB Docket 13-315, CSR 8864-E

Amherst County
VA0149
Amherst
VA0208
6

Federal Communications Commission

DA 14-407

Lynchburg
VA0106

MB Docket 13-316, CSR 8865-E

Culpeper
VA0068
Culpeper County
VA0224
Culpeper County
VA0562

MB Docket 14-10, CSR 8867-E

Elmhurst
IL1855
Harwood Heights
IL0876

MB Docket 14-11, CSR 8868-E

Bridgewater
VA0032
Broadway
VA0033
Dayton
VA0034
Elkton
VA0144
Harrisonburg
VA0035
Shenandoah
VA0145
Timberville
VA0037

Cox Communications, Inc.

CUIDs

Proceedings and Communities

MB Docket 13-233, CSR 8835-E

Bellevue
NE0064
La Vista
NE0065
Offutt AFB
NE0110
Omaha
NE0111
Omaha
NE0155
Omaha
NE0239
Gretna
NE0512
Valley
NE0531
Waterloo
NE0530
Council Bluffs
IA0092
Carter Lake
IA0214

MB Docket 13-234, CSR 8836-E

Bellevue
ID0083

Time Warner Cable Inc.

CUIDs

Proceedings and Communities

MB Docket 12-293, CSR 8725-E

Bloom
OH1512
Genoa
OH1515
Jefferson
OH1510
Lockbourne
OH1236
Madison (Franklin County)
OH1953
7

Federal Communications Commission

DA 14-407

New Albany
OH1519
Pataskala
OH3173
Plain
OH1521

MB Docket 13-60, CSR 8766-E

Covington
KY0667
Fort Mitchell
KY0677
Fort Wright
KY0679
Kenton Vale
KY0681
Ludlow
KY0685
Park Hills
KY0687
Uninc. Kenton County
KY0541

MB Docket 13-61, CSR 8767-E

Bellevue
KY0663
Southgate
KY0690
Wilder
KY0694
Uninc. Campbell County
KY0540

MB Docket 13-66, CSR 8770-E

Crescent Springs
KY0669
Florence
KY0676
Fort Thomas
KY0678
Uninc. Boone County
KY0542, KY0867
Uninc. Warren County
KY0468

MB Docket 13-69, CSR 8773-E

Hillsboro
OH0182
Jefferson (Clinton County)
OH2450
Leesburg
OH0638
Lynchburg
OH0637
Midland
OH1494
Owensville
OH1314
West Harrison
IN0384

MB Docket 13-108, CSR 8783-E

Portsmouth
OH0100

MB Docket 13-109, CSR 8784-E

Baldwinsville
NY0781
Camillus
NY0333
Cicero
NY0372
Clay
NY0373
DeRuyter
NY1440
E. Syracuse
NY0329
Fayetteville
NY0332
Geddes
NY0327
8

Federal Communications Commission

DA 14-407

Granby
NY0937
Hannibal
NY1170
Liverpool
NY0326
Lysander
NY0782
New Haven
NY1626
North Syracuse
NY0546
Port Byron
NY0981
Salina
NY0346
Schroeppel
NY1460
Solvay
NY0671
Van Buren
NY0715
Volney
NY1144

MB Docket 13-118, CSR 8785-E

Orchard Park
NY0874

MB Docket 13-124, CSR 8792-E

Boonville
NY0476
Cape Vincent
NY1420
Chaumont
NY1344
Clayton, Town of
NY1345
Clayton, Village of
NY1346
Dexter
NY1347
Glen Park
NY0631
Harrisville
NY1371
Henderson
NY1700
Hounsfield
NY1401
Orleans
NY1495
Pamelia
NY0144
Rutland
NY0562
Theresa
NY1363
Watertown
NY0146
Brasher
NY0529
Burke
NY0302
Chateaugay
NY0301
Colton
NY0813
Gouverneur
NY0101
Morristown
NY0931
Norfolk
NY0323
Rouses Point
NY1029
Russell
NY1621
Waddington
NY0811
Waverly
NY1853

MB Docket 13-141, CSR 8799-E

Milwaukee
WI0438
9

Federal Communications Commission

DA 14-407

MB Docket 13-162, CSR 8808-E

Anchorage
KY0493
Audubon
KY0378
Bancroft
KY0514
Barbourmeade
KY0582
Beechwood
KY0496
Bellemeade
KY0437
Brownsboro Farm
KY0584
Brownsboro Village
KY0441
Crossgate
KY0456
Douglass Hills
KY0502
Glenview Hills
KY0510
Glenview Manor
KY0488
Graymoor-Devondale
KY1321
Green Springs
KY0660
Hurstbourne
KY1183
Indian Hills
KY0500
Jeffersontown
KY0458
Lyndon
KY0452
Meadowview Estates
KY0445
Murray Hill
KY1195
Northfield
KY0517
Norwood
KY0518
Parkway
KY0384
Rolling Fields
KY0400
Seneca Gardens
KY0380
Shively
KY0436
Spring Valley
KY1196
St. Matthews
KY0451
St. Regis Park
KY0501
West Buechel
KY0521
Wildwood
KY0513
Windy Hills
KY0432

MB Docket 13-171, CSR 8813-E

Louisville/Jefferson County Metro Government
KY0169

MB Docket 13-196, CSR 8819-E

Carlisle
OH3185
Centerville
OH0497
Clifton
OH1819, OH1820
Gratis
OH3183
Isreal
OH3184
Kettering
OH0496
Oakwood
OH0498
Washington
OH0610
Rockport
IN0210
10

Federal Communications Commission

DA 14-407

Riley
IN0613
Vevay
IN0222

MB Docket 13-200, CSR 8823-E

Canal Winchester
OH0748, OH0749
Lithopolis
OH1518
Pickerington
OH0747
Reynoldsburg
OH0519, OH3176, OH3174
Whitehall
OH0818

MB Docket 13-232, CSR 8834-E

Brady Lake
OH0964
Chippewa Lake
OH1089, OH1505
Craig Beach
OH0843
Creston
OH3188
Cuyahoga Falls
OH0218
Howland
OH0213
Jackson
OH1981
Kent
OH0353
Lafayette
OH1502
Magnolia
OH3190
Malvern
OH0326
Mansfield
OH0083
Niles
OH0210
North Canton
OH0106
Oxford
OH2634
Rittman
OH0293
Spencer
OH3251
Stone Creek
OH2745
Stow
OH0243
Sugar Creek
OH3260
Tiro
OH1716
Warren
OH0270
Westfield Center
OH1087

MB Docket 13-273, CSR 8848-E

Bellewood
KY0450
Blue Ridge Manor
KY0617
Brandenburg
KY0953
Houston Acres
KY0443
LaGrange
KY0575
Maryhill Estates
KY0448
Moorland
KY0586
Muldraugh
KY0607
River Bluff
KY0659
Strathmoor Manor
KY0382
Woodland Hills
KY0512
11

Federal Communications Commission

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Worthville
KY1076

MB Docket 13-274, CSR 8849-E

Bromley
KY0664
Butler
KY1049
Crestview Hills
KY0670
Dry Ridge
KY0869
Fairview
KY0747

MB Docket 13-288, CSR 8856-E

City of Lexington/Fayette Urban County
KY0469

MB Docket 13-289, CSR 8857-E

Avon lake
OH0988
Bay Village
OH0739
Beachwood
OH0201
Brecksville
OH1274
Cleveland Heights
OH0695
Cuyahoga Falls
OH1271
Gates Mills
OH1944
Highland Heights
OH0986
Independence
OH0993
Lyndhurst
OH0663
Marblehead
OH1393
Mayfield Heights
OH0777
Mayfield
OH0862
Mentor
OH0740
Mentor on the Lake
OH0896
North Kingsville
OH0282
North Olmsted
OH0800
University Heights
OH0662
Valley View
OH1195
Wickliffe
OH0802
Willoughby Hills
OH0801
Woodmere
OH0775

MB Docket 13-290, CSR 8858-E

Crothersville
IN0387
Jeffersonville
IN0086

MB Docket 13-314, CSR 8863-E

Cathedral City
CA0994
Indian Wells
CA0057
Indio
CA0056
La Quinta
CA1166
Palm Desert
CA0058
Rancho Mirage
CA0740
12

Federal Communications Commission

DA 14-407

Attachment B
Subject to Low Penetration Test

Bright House Networks, LLC

CUIDs

Proceedings and Communities

MB Docket 13-216, CSR 8827-E

Escambia
FL0905

MB Docket 13-217, CSR 8828-E

Helena
AL0820

MB Docket 13-219, CSR 8830-E

Greenville
AL0026

MB Docket 13-220, CSR 8831-E

Calhoun County
FL0966
Liberty County
FL0969

MB Docket 13-221, CSR 8832-E

Tallapoosa County
FL0244

MB Docket 13-222, CSR 8833-E

Walton County
FL0970
Washington County
FL0971

Comcast

CUIDs

Proceedings and Communities

MB Docket 13-251, CSR 8840-E

Fulton County
IL1172
Knox County
IL1636

MB Docket 13-253, CSR 8842-E

La Harpe
IL0738

MB Docket 13-254, CSR 8843-E

McLean County
IL0241

MB Docket 13-258, CSR 8847-E

Coloma
IL0058
Ogle County
IL0240
Sterling
IL0061

MB Docket 13-315, CSR 8864-E

Bedford County
VA0185
13

Federal Communications Commission

DA 14-407

Time Warner Cable Inc.

CUIDs

Proceedings and Communities

MB Docket 12-275, CSR-8711-E

Anderson County (Uninc.)
KY1140
Bath County (Uninc.)
KY1035
Bourbon County (Uninc.)
KY1039
Boyle County (Uninc.)
KY1139
Carter County (Uninc.)
KY0933
Clark County (Uninc.)
KY0207
Fleming County (Uninc.)
KY0939
Franklin County (Uninc.)
KY1168
Garrard County (Uninc.)
KY1038
Harrison County (Uninc.)
KY1040
Jessamine County (Uninc.)
KY1030
Lincoln County (Uninc.)
KY1138
Madison County (Uninc.)
KY0622
Marion County (Uninc.)
KY1037
Mercer County (Uninc.)
KY1141
Montgomery County (Uninc.)
KY1021
Nelson County (Uninc.)
KY1089
Nicholas County (Uninc.)
KY1029
Rowan County (Uninc.)
KY0064, KY0065
Scott County (Uninc.)
KY1033

MB Docket 12-293, CSR 8725-E

Brown
OH2138
Jersey
OH1903
Madison (Pickaway County)
OH1906
Truro
OH2305
Westerville
OH3175

MB Docket 13-61, CSR 8767-E

California
KY1225

MB Docket 13-109, CSR 8784-E

Wolcott
NY1126, NY1988

MB Docket 13-200, CSR 8823-E

Brice
OH1513
Violet
OH0750

MB Docket 13-232, CSR 8834-E

Clark
OH3187
Greenwich
OH3248
Killbuck
OH3277
Milton
OH3191
14

Federal Communications Commission

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Nelson
OH1592
Norwalk
OH0461
Prairie
OH3278

MB Docket 13-289, CSR 8857-E

Monroe
OH3247
15

Federal Communications Commission

DA 14-407

Attachment C
Subject to Local Exchange Carrier Test

Time Warner Cable Inc.

CUIDs

Proceedings and Communities

CSR 8563-E

Waianae
HI0001
Hawaii Kai
HI0003
Oahu Central
HI0004
Honolulu
HI0005, HI0006
Kailua
HI0007
Kalihi
HI0008
Kaneohe
HI0009
Palolo
HI0010
North Shore
HI0012
Ewa District
HI0041
Ahuimanu
HI0057, HI0058
Enchanted Hills
HI0059
Hauula
HI0060
Iwilei
HI0061
Laie
HI0062
Kaaawa
HI0063
Kaimuki
HI0064
Kahaluu
HI0065
Kapahulu
HI0067
Maunawili
HI0068
Moanalua
HI0069
Pearl Harbor
HI0070
Salt Lake
HI0071
Waimanalo
HI0072

MB Docket 13-108, CSR-8783-E

Bainbridge
OH0304
Chillicothe
OH0025
Frankfort
OH0978
16

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