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File how2ftp (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ***************************************************************** ******** $//MO&O Granting Fairbanks' waiver request, DA 95-1926//$ $/300.537 Anti-trafficking/$ $/76.502(a) Anti-trafficking Waivers/$ $/76.7 Petitions for Special Relief/$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 DA 95-1926 In re: ) ) Fairbanks Communications, Inc. ) CSR- 4567-T d/b/a Leadership Cablevision ) ) Petition for Waiver of Section 76.502 ) of the Commission's Rules ) MEMORANDUM OPINION AND ORDER Adopted: September 6, 1995 Released: September 14, 1995 By the Deputy Chief, Cable Services Bureau: 1. Fairbanks Communications, Inc., d/b/a Leadership Cablevision ("Fairbanks") in the above captioned proceeding, has requested a waiver of 47 C.F.R. 76.502, the Commission's anti-trafficking rule, for one cable system in Florida. Fairbanks seeks this waiver to assure that the consummation of a transaction with Olympus Communications, L.P. ("Olympus") involving the one cable system that it has controlled for less than three years will not violate the anti-trafficking rule. Fairbanks submits that a waiver is warranted because more than two- thirds of the subscribers of the systems to be sold are served by systems which have been owned or controlled by Fairbanks for more than three years. The request is unopposed. 2. Section 76.502 of the Commission's rules implements Section 617 of the Communications Act, as amended, that, with certain exceptions, restricts the ability of a cable operator to sell or otherwise transfer ownership in a cable system within a 36 month period following either the acquisition or initial construction of the system. The Commission has broad discretion to grant waivers of the holding requirement. 3. The three-year holding requirement rule, and the underlying statutory provision, are aimed at restricting transactions and other transfers that are likely to adversely affect cable rates or service in the local franchise area, and are not intended to inhibit investment in the cable industry or delay or disrupt legitimate transactions. Recently, the Commission stated that unless a transaction raises serious concerns on its face or any objections filed provide other public interest bases for concern, requests for waiver of the three-year holding requirement will generally be looked on favorably. The Commission also has determined that waiver applications will be looked upon favorably if two-thirds or more of the MSO's subscribers are served by systems owned for three years or more, and if the MSO transfers several systems in a single transaction in which two-thirds of the subscribers of the systems being transferred are served by systems the MSO owned for three or more years. 4. Fairbanks states the following facts in support of its petition. Fairbanks operates seven cable television systems in several communities in Palm Beach County, Florida. Of the 45,618 subscribers served by the seven cable systems, 43,400 or 95.1 percent have been served by Fairbanks for more than three years; 2,218 subscribers, or 4.9 percent, are part of the Broken Sound system which was purchased by Fairbanks earlier this year. Fairbanks entered into an "Asset Purchase Agreement" with Olympus on or about June 8, 1995, to sell its Florida cable systems. The parties are currently filing for local approval of the sale, and anticipate closing the transaction sometime in October, 1995. Fairbanks submits that the Commission should grant the requested relief because more than two-thirds of its subscribers, over 95 percent in this instance, have been held for over three years. 5. We will grant Fairbanks's waiver request with respect to the Broken Sound , Florida cable system. Fairbanks has sufficiently demonstrated that two-thirds or more of its subscribers subject to the proposed transaction will have been held for more than three years. We believe that the grant of the waiver and the transfer would not adversely affect the policies underlying the anti-trafficking rule and are not expected to adversely affect cable rates or services in the affected franchise areas. Moreover, no oppositions have been filed against the waiver or concerning the proposed transaction. The waiver is therefore granted conditioned upon the approval of the transfer to Olympus by the relevant local franchising authorities, to the extent that is required by the franchise agreement. 6. In view of the above, IT IS ORDERED that, the captioned request for waiver of 47 C.F.R. 76.502 filed by Fairbanks Communications, Inc. IS CONDITIONALLY GRANTED upon approval of the transfers by the relevant local franchising authorities. 7. This action is taken pursuant to authority delegated by Section 0.321 of the Commission's rules. FEDERAL COMMUNICATIONS COMMISSION William H. Johnson Deputy Chief, Cable Services Bureau