******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 James D. Brelsford, ) Petitioner, ) ) vs ) CSR 4579-L ) TCI Cablevision of Oregon, Inc.,) Respondent ) MEMORANDUM OPINION AND ORDER Adopted: May 30, 1997 Released: June 4, 1997 By the Chief, Cable Services Bureau: INTRODUCTION 1. James D. Brelsford ("Brelsford") filed a petition for relief pursuant to 47 C.F.R.  76.975 alleging that TCI Cablevision of Oregon, Inc. (herein "TCI of Oregon") failed to provide him with leased access channels on its cable system in Eugene, Oregon. TCI of Oregon has filed a response to the petition. BACKGROUND 2. In 1984, Congress amended the Communications Act of 1934 by adding among other things a commercial leased access requirement, pursuant to which cable operators with 36 or more activated channels must set aside part of their channel capacity for use by video programmers that are not affiliated with them. The Cable Television Consumer Protection and Competition Act of 1992 (the "1992 Cable Act") revisited the leased access requirement and directed the Commission to establish rules for determining maximum reasonable rates for, and reasonable terms and conditions for the use of, commercial leased access channels. Pursuant to that Congressional directive, the Commission established regulations applicable to leased access channels in its proceedings in Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992; Rate Regulation, MM Docket 92-266, (the Rate Order), 8 FCC Rcd 5631, 5956-5961 (1993). The Commission revisited these regulations in Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992, Leased Commercial Access, Second Report and Order and Second Order on Reconsideration of the First Report and Order, CS Docket 96-90, FCC 97-27, released February 4, 1997 ("Second Report"). 3. The leased access regulations initially required, among other things, that cable operators provide a schedule of rates "[u]pon request" to prospective leased access programmers. In the recently adopted Second Report, the Commission set a 15 day response time from the date of a written request to provide leased access information. A 30 day response time was established for systems who qualify for "small system" rate relief. Additionally, the regulations provide for the determination of maximum monthly leased access rates by means of an average implicit fee formula, which is described in the regulations. The Commission also adopted procedures for resolution of disputes, providing for the filing of a petition for relief within sixty days of an alleged violation of a leased access statutory or regulatory provision and for the filing of a response. 4. Brelsford states in his petition that in early June of 1995 he requested information about the availability of a leased access channel on TCI of Oregon's cable system in Eugene, Oregon and the costs that would be involved. Brelsford states that after an exchange of correspondence TCI of Oregon informed him that leased access channel time would be available but that its system did not have equipment necessary for providing leased access service. He states that TCI of Oregon furnished a list of equipment, with a one time cost of $10,258, that Brelsford must provide before he could be provided with leased access service. Brelsford asserts that TCI of Oregon apparently has the equipment necessary to provide leased access services, because such equipment was used by TCI of Oregon in 1993 for presentation of his programming as local origination programming, and TCI of Oregon now utilizes such equipment for the provision of public and educational channels. He alleges that TCI of Oregon's claim of lack of equipment is "nothing more than a shallow excuse to deny [him] leased access." Brelsford asserts that cable systems are obligated under the Commission's rules to provide leased access programmers with a minimum amount of technical support, "whether it be equipment, technology or other miscellaneous support necessary for the leased access programmer to put on its programs." 5. TCI of Oregon asserts that it responded to Brelsfords's requests for leased access information promptly and thoroughly, provided him with leased access rates as well as a list of equipment required to transmit leased access programming, and offered to provide leased access service upon delivery and installation of that equipment. TCI of Oregon asserts further that it made no attempt, directly or indirectly, to deny leased access to Brelsford and has not violated the Commission's leased access rules. TCI of Oregon listed with its response the items of equipment allegedly required for the presentation of Brelsford's programming. TCI of Oregon states that, although it possesses most of such equipment, its equipment "is currently being used full time for local advertising insertion at the beginning and end of every hour for a 24-hour period and has been for over a year" and therefore is not available for petitioner's leased access programming. TCI of Oregon also states that equipment previously used for its local origination channel, the channel on which Brelsford's non-leased programming previously appeared, is now being used for local advertising insertion. TCI of Oregon contends that, although a cable operator may be required to provide the minimal amount of support necessary for the programmer to present its material on the cable system, Commission rules do not require the operator to purchase equipment or technology not already in its possession. It further asserts that leased access programmers are required by Commission rules to reimburse cable operators for any technical support cable operators in fact provide. DISCUSSION 6. The Commission considered the level of technical support that cable operators are required to provide in the Rate Order. There the Commission noted that technical cooperation between the cable operator and the leased access programmer is likely to be necessary for the programming to be delivered over a cable system The Commission stated that operators will be required to provide programmers with "the minimal amount of technical support, whether it be equipment, technology or other miscellaneous support, which would be necessary for the programmer to present its material on the air." The Commission further explained this requirement by adding that, while it would not impose on cable operators obligations similar to the interconnection obligations imposed on common carriers under Title II of the Communications Act, it would require a cable operator to offer to leased access programmers "the same services as would be offered to comparable programming services that use the operator's non-leased access channel capacity." 7. In the Second Report the Commission clarified these requirements and made it clear that the leased access rate determined under Section 76.970 includes the cost of technical support ordinarily provided in common to other programmers. Under this clarification of the requirements of Section 76.971, a cable operator may not impose an additional charge for technical support ordinarily provided in common to other programmers. If an operator must purchase equipment not typically used by non-leased access programmers to accommodate a leased access programmer, the operator may either (1) purchase the equipment for itself and lease it to the programmer at a reasonable rate or (2) require the leased access user to purchase the equipment. Consequently, TCI of Oregon may impose charges in addition to the charges determined under Section 76.970 for the reasonable cost of other equipment and technical support actually provided to Brelsford only if that equipment and technical support is not also provided with other non-leased access programming, as provided by 47 C.F.R.  76.971(c). We note in closing that it appears from the record that TCI apparently provides other programmers with equipment that it seeks to charge Brelsford a fee for using. If this is the case, such equipment must be provided to Brelsford and other leased access users without charge. ORDERING CLAUSES 8. For the foregoing reasons, IT IS ORDERED, pursuant to authority delegated by Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the petition for relief of James D. Brelsford IS GRANTED to the extent indicated in Paragraph 8 above, and in all other respect IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau