FCC Record, Volume 19, No. 8, Pages 5879 to 6813, March 31 - April 13, 2004 Page: 6,214
This book is part of the collection entitled: Federal Communications Commission Record and was provided to UNT Digital Library by the UNT Libraries Government Documents Department.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
... I~I III~rPB~Flederl CmIcation CI DA 0 4 9 4
rebutting the presumption that effective competition does not exist with evidence that effective
competition is present within the relevant franchise area.6 Section 623(1) of the Communications Act
provides that a cable operator is subject to effective competition, if either one of four tests for effective
competition set forth therein is met.7 A finding of effective competition exempts a cable operator from
rate regulation and certain other of the Commission's cable regulations8
3. Section 623(1)(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 multi-channel video
programming distributors ("MVPD") 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 fifteen percent of the
households in the franchise area.9 Turning to the first prong of this test, we find that the programming of
DBS providers, such as DirecTV and EchoStar, satisfy the Commission's programming comparability
criterion. DBS service is presumed to be technically available due to its nationwide satellite footprint,
and presumed to be actually available if households in a franchise area are made reasonably aware that
the service is available."0 Texas Cable has provided evidence of the advertising of DBS service in
regional and national media serving the franchise areas." Moreover, the two DBS providers' subscriber
growth reached approximately 20.4 million as of June 30, 2003, comprising approximately 20% of all
MVPD subscribers nationwide; DirecTV has become the second largest, and EchoStar the fourth largest,
MVPD provider as of June 2003.12
4. With respect to the first prong of the test, the City asserts that Texas Cable failed to
provide evidence of local advertising sufficient to make potential Baytown satellite subscribers
reasonably aware that DBS service may be purchased locally. In view of the data discussed above, we
conclude that the population of the Communities at issue here may be deemed reasonably aware of the
availability of DBS services for purposes of the first prong of the competing provider test and reject the
contention of the City that Texas Cable has failed to meet its burden of proving reasonable awareness of
the availability of DBS service in Baytown under the first prong of the competing provider test.
5. With respect to the issue of program comparability, we find that the programming of the
DBS providers satisfies the Commission's program comparability criterion because the DBS providers
offer more than 12 channels of video programming, including several non-broadcast channels.'3 We find
that Texas Cable has demonstrated that the eleven Texas Communities are served by at least two
unaffiliated MVPDs, namely the two DBS providers, each of which offers comparable video
programming to at least 50 percent of the households in the franchise area. Therefore, the first prong of
the competing provider test is satisfied.
6See 47 C.F.R. 76.906 & 907.
7See 47 U.S.C. 543(1)(1)(A)-(D).
'See 47 CoF.R. 76.905.
9 47 U.S.C. 543(1)(1)(B); see also 47 C.F.R. 76905(b)(2).
See MediaOne of Georgia, 12 FCC Rcd 19406 (1997).
"See Petition at 4; Reply at 9-12 and Exhibit C & D.
12 Tenth Annual Assessment of the Status of Competition in the Market for Delivery of Video Programming, FCC 045,
released January 28, 2004 at Par. 65-67.
"3See 47 C.F.R. 76.905(g). See also Texas Cable Petition at 6-7.6214
sgLi5118
Kr' - HeR~~f,
r federal Commutmna'catioicns Commissionn
DA 04-940
Upcoming Pages
Here’s what’s next.
Search Inside
This book can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Book.
United States. Federal Communications Commission. FCC Record, Volume 19, No. 8, Pages 5879 to 6813, March 31 - April 13, 2004, book, April 2004; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc4077/m1/355/: accessed April 19, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.