WPC[$ 2BVXZ3|P (TT).7PC2X 4XP\  P6QXP"5^2CRdd$CCdq2C28dddddddddd88qqqYzoCNzoozzC8C^dCYdYdYCdd88d8ddddCN8ddddY`(`l2CCCCPCddYYYYYYzYzYzYzYC8C8C8C8ddddddddddYdddddoddYYYYzYzYzYdddddPdCdCCCdNdoNNF2ZdCYddddd7>d<d<CCYYdCCddCYCdYzzzzCCCCqodYYYYYYYYYYY8888dddddddndddddddDeidra's printerDESPRINT.WRSXj\  P6G;,,,&YXP2 *4D Z43|P "5^*8DSS88S^*8*.SSSSSSSSSS..^^^Jxooxf]xx8Axfxx]xo]fxxxxf8.8NS8JSJSJ8SS..S.SSSS8A.SSxSSJP!PZ*8888C8SSxJxJxJxJxJooJfJfJfJfJ8.8.8.8.xSxSxSxSxSxSxSxSxSxSxJxSxSxSxSxS]SxSxJxJoJoJfJfJfJxSxSxSxSxSCS8S888SAxSx]AN:*KS8JSSSSS.4}}S2S}288JJS88SS8J82N8\\^C`^SS`*8DSS88S^*8*.SSSSSSSSSS..^^^Jxooxf]xx8Axfxx]xo]fxxxxf8.8NS8JSJSJ8SS..S.SSSS8A.SSxSSJP!PZv8SJSS8]888JJ:S8A8xx*8SSSS!S8.S^8SC\228`K*824S}}}Jxxxxxxoffff8888xxxxxxx^xxxxxx]SJJJJJJoJJJJJ....SSSSSSS\SSSSSSSDeidra's printerDESPRINT.WRSX\  P6G;,,,&YP2R   "5^2CRdd$CCdq2C28dddddddddd88qqqYzoCNzoozzC8C^dCYdYdYCdd88d8ddddCN8ddddY`(`l2CCCCPCddYYYYYYzYzYzYzYC8C8C8C8ddddddddddYdddddoddYYYYzYzYzYdddddPdCdCCCdNdoNNF2ZdCYddddd7>d<d<CCYYdCCddCYCdYzzzzCCCCqodYYYYYYYYYYY8888dddddddndddddddTimes New Roman (TT)Times New Roman (Bold) (TT)Times New Roman (Italic) (TT) X- I. A. 1. a.(1)(a) i) a) 1. 1. 1. a.(1)(a) i) a)#Xj\  P6G;XP#"5^2Coddȧ8CCdr2C28ddddddddddCCrrrdzNdzoȐC8CtdCdoYoYCdo8Co8odooYNCodddYO,Oh2CCCCPCdodddddȐYYYYYN8N8N8N8oddddooooddoddddzodddYYYYYdddooPoNoNCNoddȐoNNF2ldCdddddd%7777777777>>>1eOIIOC=OO%+OCbOO=OI=COOhOOC%%47%17171%777V7777%+77O77155<%%%%,%77O1O1O1O1O1bII1C1C1C1C1%%%%O7O7O7O7O7O7O7O7O7O7O1O7O7O7O7O7=7O7O1O1I1I1C1C1C1O7O7O7O7O7,7%7%%%7+O7bO=+N&27%177777"RR7!TT7R!%%117n%%77ln%1n%!N%<<>,?>77?%-77\V%%7>%7777777777>>>1eOIIOC=OO%+OCbOO=OI=COOhOOC%%47%17171%777V7777%+77O77155%T7,OOOOOO=7111111I111117777777<7777777"5^!)22SN!!28!2222222222888,\HCCH=8HH!'H=YHH8HC8=HH^HH=!!/2!,2,2,!222N2222!'22H22,006!!!!(!22H,H,H,H,H,YCC,=,=,=,=,!!!!H2H2H2H2H2H2H2H2H2H2H,H2H2H2H2H282H2H,H,C,C,=,=,=,H2H2H2H2H2(2!2!!!2'H2YH8'N#-2!,22222KK2LL2K!!,,2d!!22bd!,d!N!778(:822:!)22SN!!28!2222222222888,\HCCH=8HH!'H=YHH8HC8=HH^HH=!!/2!,2,2,!222N2222!'22H22,006G!2,d22!d8!Y!!,,#2d!b'!HH!22222!L28!L2(7!:-!2KKK,HHHHHHYC====!!!!HHHHHHH8HHHHHH82,,,,,,C,,,,,2222222722222222'$\7!R"5^.=M\\'==\|.=.3\\\\\\\\\\==|||\ppzpp=Qzfzpp\fppffG3GM\=\\Q\Q3\\33Q3\\\\GG3\QzQQGI2Ic.====I=\\p\p\p\p\p\zzQpQpQpQpQ=3=3=3=3z\\\\\\\\\fQp\\\\fQ\p\p\p\p\zQzQpQpQpQ\\\\\I\=\===\Q\z\GN@.`\G\\\\\\39\7\7==ff\==\\=f=7N=ee|Ij|\\j.=M\\'==\|.=.3\\\\\\\\\\==|||\ppzpp=Qzfzpp\fppffG3GM\=\\Q\Q3\\33Q3\\\\GG3\QzQQGI2Ic=\f\\=\===ff@\=G=zf.G\\\\2\=3\|=\Ie77=j`.=79\\ppppppzpppp====z|fp\\\\\\\zQQQQQ3333\\\\\\\e\\\\\Q\.9y.C8*X?C\  P6QP.:7PC2XXP\  P6QXPl;7UC2XXU4  pQX.=2J=.Xw&J\  P6Q&Pl<2N=.X&N4  pQ&.>P,%XJ,\  P6QJP.?I(!X,(\  P6Q,P@0J=.X3U&J*f9 xQ&X{,C8*X3FC*f9 xQX         "5^*8FSS$88Sp*8*.SSSSSSSSSS88pppSffoxffxx8Jo]oxfxfS]xff]]A.AFS8SSJSJ.SS..J.xSSSSAA.SJoJJAC.CZ*8888C8SSfSfSfSfSfSooJfJfJfJfJ8.8.8.8.oSxSxSxSxSxSxSxSxS]JfSxSxSxS]JxSfSfSfSfSoJoJfJfJfJxSxSxSxSxSCS8S888SJxSoSAN:*WSASSSSSS.4}}S2S}288]]S88SS8]82N8\\pC`pSS`*8FSS$88Sp*8*.SSSSSSSSSS88pppSffoxffxx8Jo]oxfxfS]xff]]A.AFS8SSJSJ.SS..J.xSSSSAA.SJoJJAC.CZv8S]SS8S888]]:S8A8o]*ASSSS.S8.Sp8SC\228`W*824S}}}Sffffffoffff8888xoxxxxxpxxxxx]fSSSSSSSoJJJJJ....SSSSSSS\SSSSSJS2Y$ S' X   )a X4 #&a\  P6G;w&P#Federal Communications Commission`~(#cDA 991683 ă   yxdddy )Պ#&a\  P6G;w&P#Qb Before the Federal Communications Commission  S'&2Washington, D.C. 20554 ă In the Matter of: #&a\  P6G;w&P#) ) Cablevision of the Midwest, Inc.) )  S'Middleburg Heights, OH)ppCUID No. OH1023 )  Sp'Petition for Determination of )ppCSR5345E Effective Competition)    S '  MEMORANDUM OPINION AND ORDER \  S 'X` hp x (#%'0*,.8135@8:(>('"Ԍ  ԙX(1) When the multichannel video programming distributor is physically able to deliver service to  F potential subscribers, with the addition of no or only minimal additional investment by the   distributor, in order for an individual subscriber to receive service; and (2) When no regulatory,  u technical or other impediments to households taking service exist, and potential subscribers in the   franchise area are reasonably aware that they may purchase the services of the multichannel video programming distributor.  47 C.F.R. 76.905(e).  video programming service"@ ,>(>(II"  xin the unaffiliated cable operator's franchise area, Cablevision asserts that Ameritech New Media was  S' xawarded a 15 year franchise to provide cable television service in Middleburg Heights.% GM yOH ' xc ԍAmeritech New Media was awarded a cable franchise by Middleburg Heights, Ohio on May 20, 1998.  x; Middleburg Heights is a suburban community located southwest of Cleveland with approximately 7000 households.  x! Under the terms of the franchise agreement, the construction of the cable system by Ameritech New Media must be  x7 completed within 24 months after the effective date of the franchise agreement. Cablevision Petition at 6, Exhibit 5.% Cablevision  x7states that Ameritech New Media's cable service is available to about half of the city's homes and that the  S' x@entire city would be wired by the end of 1998.2  GM {O'ԍId. 2 Cablevision asserts that in those areas of Middleburg  xHeights already wired by Ameritech New Media, potential subscribers can obtain service by contacting  S8' xthe company by telephone, 24 hours a day.>8GM {O'čId. at 7. > Cablevision also asserts that some of its subscribers have  S' xdiscontinued service and switched to Ameritech New Media.1GM {OT'ԍId.1 Thus, Cablevision asserts that Ameritech  xNew Media is physically able to, and in fact is, offering service to Middleburg Heights residents.  xgMoreover, Cablevision states that because Ameritech New Media has a cable franchise for Middleburg  S'Heights, there are no regulatory impediments to households taking its cable service.26GM {On'ԍId. 2  SH ' e  6.` ` Cablevision asserts that potential subscribers in the franchise area are reasonably aware  xthat they may purchase Ameritech New Media's service. Cablevision submits sample marketing materials,  xpromotional materials, and advertisements that Ameritech New Media has distributed throughout  S ' xMiddleburg Heights for purposes of promoting its services.7 GM {O8 'ԍId. at 8.7 Cablevision also notes that Ameritech New  x/Media's promotional materials include offerings of discounted service, free groceries, and free gift  S ' xxcertificates.1 ZGM {Oz#'ԍId.1 In addition, Cablevision states that Ameritech relies upon doortodoor sales efforts in order  SX'to increase awareness of its service.1XGM {O%'ԍId.1 "0~,>(>(II"Ԍ S' e B7.` ` Cablevision states that Ameritech New Media offers comparable programming to  S' x3Middleburg Heights subscribers.7GM {O@'ԍId. at 9.7 Specifically, Cablevision provides Ameritech New Media's channel  xlineup which demonstrates that Ameritech New Media offers subscribers more than 80 channels of  S' x<programming, of which 11 are local television broadcasting signals.8ZGM {O'ԍId. at 10.8 Cablevision also asserts that  xlAmeritech New Media's channel lineup presently replicates a number of programming services  xCablevision offers to its subscribers, including network affiliates of local broadcast stations and satellite S'delivered cable programming networks, such as A&E, CNN and the Discovery Channel.8GM {O 'ԍId. at 11.8  S'  S'III.ANALYSIS  Sp' e q8.` ` In the absence of a demonstration to the contrary, cable systems are presumed not to be  SH ' xZsubject to effective competition as defined in the Communications Act.=H ~GM yOf'ԍ47 C.F.R. 76.906.= The cable operator bears the  xburden of rebutting the presumption that such effective competition does not exist and must provide  xevidence sufficient to demonstrate that effective competition, as defined by Section 76.905 of the  S 'Commission's rules, is present in the franchise area.D GM yO~'ԍ47 C.F.R. 76.911(b)(1). D Cablevision has met this burden.  S ' e 9.` ` With regard to the first part of the LEC effective competition test, which requires that the  xalleged competitive service be provided by a LEC or its affiliate (or any multichannel video programming  xdistributor ("MVPD") using the facilities of such a LEC or its affiliate), we find that Cablevision has  xMprovided sufficient evidence demonstrating that Ameritech New Media is a MVPD wholly owned by a  S' x&LEC. Ameritech is a LEC as defined by the Communications Act,P@GM yO'ԍThe Communications Act defines the term "local exchange carrier" as:   Xany person that is engaged in the provision of telephone exchange service or exchange access.   Such term does not include a person insofar as such person is engaged in the provision of a  q commercial mobile service under Section 332(c), except to the extent that the Commission finds that such service should be included in the definition of such term.  Communications Act 3(26), 47 U.S.C. 153(26). P and Ameritech New Media meets  S' xthe Commission's definition of a MVPD.\GM {O"' x* ԍSee 47 C.F.R. 76.905(d). The Commission has previously noted that Ameritech is unquestionably a LEC as  x defined by the Communications Act, and Ameritech New Media meets the Commission's definition of a MVPD.  {O$'See Time Warner Entertainment Co., L.P., Columbus OH, 11 FCC Rcd 17298 (1996).  Therefore, we find that Ameritech New Media meets the affiliation prong of the LEC effective competition test. "h,>(>(II%"Ԍ S' e  10.` ` We also find that Cablevision has submitted sufficient evidence to show that the  xVprogramming of Ameritech New Media is comparable to Cablevision's programming. The channel  xinformation for Ameritech New Media submitted by Cablevision establishes that Ameritech New Media offers more than 80 channels of programming, including 11 local broadcast channels.  S8' e q 11.` ` We find that Cablevision has submitted sufficient evidence demonstrating that Ameritech  x3New Media is offering service in Cablevision's franchise area. Cablevision has provided evidence that  xAmeritech New Media's cable television service is available in Middleburg Heights and will be offered  xthrough the City pursuant to the franchise agreement that Ameritech New Media signed with Middleburg  xHeights. Cablevision also reports that some of its subscribers have switched to Ameritech New Media's  x*cable service. Thus, we find that Ameritech New Media is physically able to offer service to Middleburg Heights residents.  S ' e 4 12.` ` We note that Ameritech New Media's marketing efforts, including advertisements, doorto xkdoor solicitations, distribution of promotional materials, as well as local press coverage of Ameritech New  xMedia's construction and service offerings, ensure that potential subscribers are reasonably aware of the  x@availability of Ameritech New Media's service. In those areas wired and marketed by Ameritech New  xMedia, potential subscribers can contact the company 24 hours a day to activate service. Moreover, those  xsubscribers are able to receive Ameritech New Media's cable service for little or no additional investment  xand without encountering regulatory or technical obstacles. Consistent with Congressional intent in  S' xadopting Section 623(1)(1)(D) of the Communications Act,CGM yOH'ԍ47 U.S.C. 543(1)(1)(D).C and under the circumstances presented to us in this matter, we find "effective competition" to be present.  Sh' IV.ORDERING CLAUSES  S' e r 13.` ` Accordingly, IT IS ORDERED that the Petition for Special Relief seeking a  S'determination of effective competition by Cablevision of the Midwest, Inc. IS GRANTED.   S ' e ~ 14.` ` IT IS FURTHER ORDERED that the certification of the City of Middleburg Heights  S!' xto regulate the basic cable rates of Cablevision of the Midwest, Inc. in Middleburg Heights, Ohio IS REVOKED.  Sp#' "p#X,>(>(II{""Ԍ S' e 15.` ` This action is taken pursuant to delegated authority under Section 0.321 of the  S'Commission's rules, as amended.<GM yO@'ԍ47 C.F.R. 0.321.< ` `  hhCFEDERAL COMMUNICATIONS COMMISSION ` `  hhCWilliam H. Johnson  Sp'` `  hhCDeputy Chief, Cable Services Bureau