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Open Video System, Paul Bunyan Rural Telephone Cooperative

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Released: September 14, 2012

Federal Communications Commission

DA 12-1490

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of:
)
)

Paul Bunyan Rural Telephone Cooperative
)
)

Certification to Operate an
)
Open Video System
)
)

MEMORANDUM OPINION AND ORDER

Adopted: September 13, 2012

Released: September 14, 2012

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

I.

INTRODUCTION

1.
On September 4, 2012, Paul Bunyan Rural Telephone Cooperative (“Bunyan”) filed an
application for certification to operate an open video system pursuant to Section 653(a)(1) of the
Communications Act of 1934 ("Communications Act") and the Commission's rules.1 Bunyan seeks to
operate an open video system in the city of Big Falls, Minnesota (the "Service Area"). In accordance with
our procedures,2 the Commission published notice of receipt of the Bunyan application3 and posted the
application on the Internet.4 No comments regarding this application were received.
2.
Pursuant to Section 653(a)(1) of the Communications Act, any entity meeting the
requirements 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
there to be a streamlined certification process.6 Open video system operators may apply for certification at
any point prior to the commencement of service. Open video system operators must obtain certification


1 47 U.S.C. § 573(a)(1); 47 C.F.R. § 76.1502.
2 See Implementation of Section 302 of the Telecommunications Act of 1996, Open Video Systems, 11 FCC Rcd
18223, 18247 (1996) (“Second Report and Order”).
3 See Public Notice, “Paul Bunyan Rural Telephone Cooperative Files An Application For Open Video System
Certification,” DA 12-1449 (MB, rel. September 6, 2012).
4 The Bunyan application is available via the Internet at http://transition.fcc.gov/mb/ovs/csovscer.html
5 See 47 U.S.C. § 573(a)(1); 47 C.F.R. § 76.1501. An operator of a cable system however, generally may not obtain
such certification within its service area unless it is subject to "effective competition" as defined in Section 623(1)(l) of
the Communications Act, 47 U.S.C. § 543(l)(l). The effective competition requirement does not apply to a local
exchange carrier that is also a cable operator that seeks open video system certification within its cable service area.
6 Second Report and Order, 11 FCC Rcd at 18243.

Federal Communications Commission

DA 12-1490

prior to the commencement of service, allowing sufficient time to comply with the Commission's
requirements regarding notifications that applicants must provide to potential programming providers.7
3.
As part of the certification process, the applicant must acknowledge and accept the
obligations associated with operation of an open video system and must provide certain information
regarding its proposed system.8 To obtain certification, an applicant must file FCC Form 1275, which
requires, among other things: (a) a statement of ownership, including a list of all affiliated entities;9 (b) a
representation that the applicant will comply with the Commission's regulations under Section 653(b) of the
Communications Act;10 (c) a list of the names of the communities the applicant intends to serve; (d) a
statement of the anticipated type and amount of capacity that the system will provide; and (e) a statement as
to whether the applicant is a cable operator applying for certification within its cable franchise area.

II.

DISCUSSION

4.
Bunyan has submitted an application on FCC Form 1275 for certification to operate an
open video system in the Service Area. We have reviewed the information contained in Bunyan’s
application. As required by Form 1275, the Bunyan application provides the following: company
information and a separate statement of ownership listing affiliated entities; eligibility and compliance
representations; and system information and verification statements. Bunyan also confirmed that it served
its application upon the designated telecommunications official in the applicable Minnesota community.
5.
We find that Bunyan 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) of the Communications Act. We note that
if any representation in the Bunyan certification filing proves to be materially false or materially inaccurate,
the Commission retains the authority to revoke Bunyan’s certification or impose such other penalties it
deems appropriate, including forfeiture.


7 Id. at 18247; 47 C.F.R. § 76.1502(a); see also Implementation of Section 302 of the Telecommunications Act of 1996:
Open Video Systems, 14 FCC Rcd 19700, 19705 (1999) (deleting the pre-construction certification requirement from
Section 76.1502(a) of our rules).
8 Second Report and Order, 11 FCC Rcd at 18245-46.
9 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. 47 C.F.R. § 76.501. 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. Implementation of Section 302 of the Telecommunications Act of 1996, Open Video Systems, 11 FCC Rcd
20227, 20235 (1996) ("Third Report and Order"); see also 47 C.F.R. § 76.1500(g).
10 47 U.S.C. § 573(b). This provision sets forth 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 distribute programming when demand for carriage exceeds system
capacity; channel sharing; sports exclusivity, network non-duplication and syndicated exclusivity; and non-
discriminatory treatment in presenting information to subscribers. See also 47 C.F.R. § 76.1502(a).
2

Federal Communications Commission

DA 12-1490

III.

ORDERING CLAUSES

6.
Accordingly,

IT IS ORDERED

, that the application of Paul Bunyan Rural Telephone
Cooperative for certification to operate an open video system in the Service Area

IS GRANTED

.
7.
This action is taken by the Senior Deputy Chief, Policy Division, Media Bureau, pursuant
to the authority delegated by Section 0.283 of the Commission's Rules.11
FEDERAL COMMUNICATIONS COMMISSION
Steven A. Broeckaert
Senior Deputy Chief, Policy Division
Media Bureau


11 47 C.F.R. § 0.283.
3

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