WPC 2HBX@ ZRomanNew Roman (TT)3|KRoman (TT)Times New Roman (Bold) (TT)"5@^?(?SO_c(88?g(g(WOOOOOOOOOO((_g_GkOWSWSO[_,;WGc[WWWWOK_O_OSO888WO(OSKSK3KW,,S,WOSOCC;WG_OKG8 8_((((W,E(OWOOOOOOOOOOOwSKSKSKSKSK,,,,,,,,[WWOWOWOWO_W_W_W_W(KOOWSWOWOSKWOSSOOWWOOSKSKSKSKWWSK[K[O[[K[K_W_W,WWW,,,W;WSG,GE[W[WWW((WCWEOC((N((;S(GOOOS(OOOOKOOOOOO(((((((((((((((OOtOg\\GO\d*,KO.wROOn\CfxKxWlRx\]\cdIfIs`Wx\rriwgd((((((((((((((((((((((((((((((((?(?SO_c(88?g(g(WOOOOOOOOOO((_g_GkOWSWSO[_,;WGc[WWWWOK_O_OSO888WO(OSKSK3KW,,S,WOSOCC;WG_OKG8 8_(((((((((((((((((((((((((((((((((((KOOS,SWOOOOOOO,gOO(K;((OOOOOOGOOOOOOOSSSSS,,,,W[WWWWWOW____SSWOOOOOOwKKKKK,,,,OWOOOOOGOWWWWKSXPPS - PS (Additional); Local PrintXPPSPS.WRSSX\  P6G; =}P2tzXRomanTimes New Roman (TT)#XP\  P6QXP#3|j I. A. 1. a.(1)(a) i) a) 1. 1. 1. a.(1)(a) i) a)S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN5T@toc 9toc 92` hp x (#44` hp x (#index 1index 13` hp x (#4 4 ` hp x (#index 2index 24` hp x (#4 4 ` hp x (#toatoa5` hp x (#` hp x (#2nE6B7hC8"D9Dcaptioncaption6;1#XP\  P6QXP##C\  P6QP#_Equation Caption_Equation Caption711#XP\  P6QXP##C\  P6QP#endnote referenceendnote reference844#XP\  P6QXP##C\  P6QP#footnote referencefootnote reference94#XP\  P6QXP#2NKEKGK6JKL"i~'^:DpddȨDDDdp4D48ddddddddddDDpppd|Ld|pȐD8DtdDdpXpXDdp8Dp8pdppXLDpdddXP,PhD4htDDD4DDDDDDdDp8dddddȐXXXXXJ8J8J8J8pddddppppddpddddzpdddXXhXXXXXdddhdptL8LpLDLpphhp8ZDP8pppddƐXXXpLpLpLphfDtppppppȐhXXXpDppLDd4ddC6CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxHjdDdddddd/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""d<d<CCYYdCCddCYCdYzzzzCCCCqodYYYYYYYYYYY8888dddddddnddddddd J2>400000000009>9+@04242079$4+<744440-909020!!!4002-2--42O4020(($4+90-+!!94)0400000000000G2-2-2-2-2-744040404094949494-004240402-40220044002-2-2-2-442-7-7077-7-94944444$42++)7474444(4)0(N$2+00020000-00000000t0>77+0c7<&&209<!!&>>400000000009>9+@04242079$4+<744440-909020!!!4002-2--42O4020(($4+90-+!!9-002240000000>00-$000000+0000000222224744444049999224000000G-----0400000+04444-2Jy.K8?XpK\  P@QPK7PC2X XP\  P6QXP.L7UC2XXU4  pQXMW!0(Xh0\  P6QhPNI-!&X,-\  P@Q,PO5PC2X9XP*f9 xQXXy.C8*XpC\  P6QP2p@nc@f@i\.m"5@^2CTdd+CCd2C28ddddddddddCCdzzzzCYozzdozzooN8NTdCddYdY8dd88Y8ddddNN8dYYYNP7Pl2CC!CCPRCddzdzdzdzdzdYzYzYzYzYC8C8C8C8dddddddddoYzddddoYdzdzdzdzdYYYzYzYzYddddddPdCdCCCdYYo8oRdddzNzRdNdNNF2idNdddddd7>d<d<CCoodCCddCoCddzzzzzzzzzzCCCCozdddddddYYYYY8888dddddddndddddYd"5@^*7DSS77S^*7*.SSSSSSSSSS..^^^Jxooxf]xx7Axfxx]xo]fxxxxf7.7NS7JSJSJ7SS..S.SSSS7A.SSxSSJP!PZ*7777CE7SSxJxJxJxJxJooJfJfJfJfJ7.7.7.7.xSxSxSxSxSxSxSxSxSxSxJxSxSxSxSxS]SxSxJxJoJoJoJfJfJfJxSxSxxSxSxSxSCS7S777SAxSf.fExSxSxSxo7oE]A]AN:*LS7JSSSSS.4}}S2S}277JJS77SS7J72t7[\\[^\d*C`^.wRSSn\Cfx`xWlRx\]\cdIfIs`Wx\rriwgd*7DSS77S^*7*.SSSSSSSSSS..^^^Jxooxf]xx7Axfxx]xo]fxxxxf7.7NS7JSJSJ7SS..S.SSSS7A.SSxSSJP!PZ7SJSS7]777JJ:S7A7xx*7SSSS!S7.S^7SC[227`L*724S}}}Jxxxxxxoffff7777xxxxxxx^xxxxxx]SJJJJJJoJJJJJ....SSSSSSS[SSSSSSS"5@^*7]SS.77S_*7*.SSSSSSSSSS77___SxoxxofASoxfx]oxxxxo7.7aS7S]J]J7S].7].]S]]JA7]SxSSJB%BW*7777CE7S]xSxSxSxSxSxxJoJoJoJoJA.A.A.A.x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxJxJxJoJoJoJSSSS]]C]A]A7A]S]o.oEx]x]SxxJxJ]A]AN:*ZS7SSSSSS27}}S2}}S}277SSS77SS7S72t7[\\[_\d*C`_.wRSSn\Cfx`xWlRx\]\cdIfIs`Wx\rriwgd*7]SS.77S_*7*.SSSSSSSSSS77___SxoxxofASoxfx]oxxxxo7.7aS7S]J]J7S].7].]S]]JA7]SxSSJB%BW7SSSS7]777SS:S7A7xx*7SSSS%S7}2S_7}SC[227`Z*727S}}}SxxxxxxxooooAAAAxx_xxxxxf]SSSSSSxJJJJJ....S]SSSSS[S]]]]S]Jy.K8?XpK\  P@QPK7PC2X XP\  P6QXP.L7UC2XXU4  pQXMW!0(Xh0\  P6QhPNI-!&X,-\  P@Q,PO5PC2X9XP*f9 xQXXPy.C8*XpC\  P6QP.Qy.G8*XNG4  pQRa$6,!X6\  P6QP : X \  P6QP2~@p @s @(-((((((((((---#J:55:1-:::1G::-:5-1::K::1&(#(#(#(((>((((((:((#&&+  !((:#:#:#:#:#G55#1#1#1#1#:(:(:(:(:(:(:(:(:(:(:#:(:(:(:(:(-(:(:#:#5#5#5#1#1#1#:(:(::(:(:(:( (((:(11!:(:(:(G:55!--N$(#(((((<<(==(<##(P((NP#Pt,,,,-O,0S .-B9(@OSB((===5E,C1:.:*4':,-,/0#1#7.=*:,@7=72920>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>!((C>(-((((((((((---#J:55:1-:::1G::-:5-1::K::1&(#(#(#(((>((((((:((#&&+>>>(#P((P-G>>>>##(PN:>>:(((((=(-=( ,.$(<<<#::::::G51111:::::::-::::::-(######5#####(((((((,((((((("5@^*7FSS$77Sq*7*.SSSSSSSSSS77qqqSffoxffxx7Jo]oxfxfS]xff]]A.AFS7SSJSJ.SS..J.xSSSSAA.SJoJJAC.CZ*7777CE7SSfSfSfSfSfSooJfJfJfJfJ7.7.7.7.oSxSxSxSxSxSxSxSxS]JfSxSxSxS]JxSfSfSfSfSoJoJoJfJfJfJxSxSxxSxSxSxSCS7S777SJoJ].]EoSoSxSofAfESASAN:*WSASSSSSS.4}}S2S}277]]S77SS7]72t7[\\[q\d*C`q.wRSSn\Cfx`xWlRx\]\cdIfIs`Wx\rriwgd*7FSS$77Sq*7*.SSSSSSSSSS77qqqSffoxffxx7Jo]oxfxfS]xff]]A.AFS7SSJSJ.SS..J.xSSSSAA.SJoJJAC.CZ7S]SS7S777]]:S7A7o]*ASSSS.S7.Sq7SC[227`W*724S}}}Sffffffoffff7777xoxxxxxqxxxxx]fSSSSSSSoJJJJJ....SSSSSSS[SSSSSJSJy.K8?XpK\  P@QPK7PC2X XP\  P6QXP.L7UC2XXU4  pQXMW!0(Xh0\  P6QhPNI-!&X,-\  P@Q,PO5PC2X9XP*f9 xQXXPy.C8*XpC\  P6QP .Qy.G8*XNG4  pQRa$6,!X6\  P6QP S: X \  P6QP{,C8*X9-qC*f9 xQX]oxxxxo7.7aS7S]J]J7S].7].]S]]JA7]SxSSJB%BW*7777CE7S]xSxSxSxSxSJoJoJoJA.A.A.A.x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxJxJxJoJoJoJSS2  yO- X   ( X-x #Xj\  P6G; XP# Federal Communications Commission`(#DA 97235 ă  yxdddy (Պv3 #C\  P6QpP#Before the Federal Communications Commission  yO Washington, D.C. 20554 X01Í ÍX01Í Í҃  X -#XP\  P6Q XP#In the Matter of:R#Xj\  P6G; XP#)  X -R)hppPlymouth  xxMI0452  X-Continental Cablevision ofR)hppPlymouth TownshipxxMI0453(#(#X  X-Southeast MichiganR)hpp  xxMI0965(#(#X  X-R)hppCanton TownshipxxMI0470(#(#X X-Petition for Determination ofR)hppNorthville  xxMI0467  X-Effective CompetitionR)hpp  xxMI0468  X -R)hppNorthville TownshipxxMI0469 T  X: -|  MEMORANDUM OPINION AND ORDER TP  X -X` hp x (#%'0*,.8135@8: "  X- xbroadcasting signals, and an additional 10 channels of premium service.D yOy-ԍPetition at 8 and Exhibit F.D Continental's system  X-offers 74 channels in the Communities.TX {O-ԍId. at Exhibit G and Reply at 4, n. 5.T  X- ` x6.` ` Ameritech opposes Continental's petition, arguing that the comparable  xprogramming prong of the LEC effective competition test has not been met. In this particular  xinstance, Ameritech asserts that HBO cannot be offered to Ameritech's subscribers because the  xCommission has ruled that Continental may distribute this programming service in the  X_- xCommunities on an exclusive basis._ {O -ԍId at 4. See Corporate Media Partners v. Continental Cablevision, Inc. et al., 11 FCC Rcd 7735 (1996). Ameritech states that programming comparability should  xinclude consideration not only of the number of channels offered, but also the programming  X1- xprovided on those channels.81| yO^-ԍOpposition at 3.8 As such, Ameritech argues that it cannot offer programming  xcomparable to that offered by Continental. Ameritech states that the Commission should not  xlgrant Continental the relief its seeks prior to December 31, 1997, the expiration date of its exclusive HBO distribution agreement.  X - ` Ax7.` ` In its reply, Continental states that Ameritech does not take issue with any of the  X - xfactual predicates of the petition.3  yOd-ԍReply at 2.3 Instead, Continental argues, Ameritech is trying to relitigate  xthe HBO exclusivity issue, which was settled by the Cable Services Bureau in an unrelated  xKprogram access proceeding. Continental argues that the Commission measures comparability, for  xpurposes of the LEC effective competition test, as 12 channels of programming, at least some  xof which are local broadcasting signals. Continental asserts that HBO need not be one of these  X4- x/channels.34 yO-ԍReply at 3.3 Continental then asserts that it has responded to Ameritech's presence by: (1)  xMrebuilding the affected systems from 400 MHz to 750 MHz; (2) adding 21 channels of basic,  xkpremium, and payperview services as well as multiplexing some premium services, such as  x!HBO and Cinemax; (3) moving the Disney Channel and PASS Sports to the CPS tier; (4)  xincreasing customer service to 24 hours a day; (5) creating 2 hour service and installation  X-windows; and (6) creating a $29.95 multipremium package and other customer packages.5,  yO"-ԍReply at 45.5  X-" ,N(N(ZZ"Ԍ X- III.xANALYSIS  X-  X- ` x8.` ` In the absence of a demonstration to the contrary, cable systems are presumed not  X- xto be subject to effective competition as defined in the Communications Act.= yO4-ԍ47 C.F.R. 76.906.= The cable  xoperator bears the burden of rebutting the presumption that such effective competition does not  xexist and so must provide evidence sufficient to demonstrate that effective competition, as defined  Xv- xjby Section 76.905 of the Commission's rules, is present in the franchise area.CvX yO -ԍ47 C.F.R. 76.911(b)(1).C Continental has met this burden.  X1- ` x9.` ` With regard to the first part of the LEC effective competition test, which requires  xthat the alleged competitive service be provided by a LEC or its affiliate (or any multichannel  xzvideo programming distributor ["MVPD"] using the facilities of such LEC or its affiliate), we  xfind that Continental has provided sufficient evidence demonstrating that Ameritech New Media  xkis an MVPD wholly owned by a LEC. Ameritech is unquestionably a LEC as defined by the  X - xCommunications Act,Z@  yOW-ԍThe Communications Act defines the term "local exchange carrier" as:  ` pXxX` ` any person that is engaged in the provision of telephone exchange service or exchange  ` paccess. Such term does not include a person insofar as such person is engaged in the  ` p3provision of a 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).Z and Ameritech New Media meets the Commission's definition of MVPD.  x-Therefore, we find that Continental satisfies the affiliation prong of the LEC effective competition test. Continental is unaffiliated with both Ameritech New Media and Ameritech.  Xb- ` `x 10.` ` Contrary to Ameritech's assertion, we also find that Continental has submitted  xjsufficient evidence that the programming of Ameritech is comparable to that which it provides.  x.Comparable programming in a LEC effective competition setting can be defined as offering "at  X- xleast 12 channels of programming, at least some of which are television broadcasting signals."C  {O-ԍSee, supra, at n. 18.C  xNeither the Communications Act nor the Commission's rules mandate programspecific  xycomparability to the extent argued by Ameritech. The channel lineup for Ameritech submitted  xby Continental establishes that Ameritech offers 90 channels, including 9 local broadcast channels. This satisfies the Commission's programming comparability criterion.  X- ` x 11.` ` To meet the LEC effective competition test, the alleged competitive service must  xalso be offered directly to subscribers in the franchise area. In enacting the LEC test, Congress"| ,N(N(ZZ"  x=indicated that the Commission should apply its preexisting definition of the term "offer" to the new LEC effective competition test. Under that definition, service is offered:  ` pXxX` ` (1) When the multichannel video programming distributor is physically  ` pable to deliver service to potential subscribers, with the addition of no or  X- ` p6only minimal additional investment by the distributor, in order for an  ` prindividual subscriber to receive service; and (2) When no regulatory,  ` ptechnical or other impediments to households taking service exist, and  ` ppotential subscribers in the franchise area are reasonably aware that they  ` pmay purchase the services of the multichannel video programming  X -distributor.  {O - xԍ47 C.F.R. 76.905(e); see Cable Act Reform Order at 9 (citing Telecommunications Act of 1996 Conference Report, S. Rep. 104230 at 170 (Feb. 1, 1996)). `  X - ` x12.` ` Based on the information before us, we find that Ameritech is offering service in  xZthe Communities sufficient to demonstrate the presence of effective competition. Continental has  xprovided Ameritech's construction schedule, maps of wired areas, and other demonstrations of  x Ameritech's actual and planned offering of service. Ameritech's overbuild of Continental's  xsystems is 100% complete in the five Communities and Ameritech is now directly competing for  x/customers with Continental in all parts of the areas at issue. Ameritech's marketing efforts,  xZcombined with the extensive press coverage of Ameritech in the local media, ensure that potential  xKsubscribers are well aware of the availability of Ameritech's service. According to the documents  xattached to Continental's petition, potential subscribers need only contact Ameritech to activate  xcable service. Moreover, subscribers are able to receive service for only a minimal additional  x<investment and without regulatory, technical or other impediments. We note that Continental has  xupgraded its cable plant, expanded customer service to 24 hours a day, and added more than 20  x[new channels. In the circumstances, consistent with Congressional intent in adopting Section 623(l)(1)(d) of the Communications Act, we find "effective competition" to be present.  X- IV.xORDERING CLAUSES  Xe- ` x13.` ` Accordingly, IT IS ORDERED that the Petition for Determination of Effective  xCompetition filed by Continental Cablevision of Southeast Michigan, Inc. challenging the  X7- xLcertifications of the City of Plymouth , Plymouth Township, Canton Township, Northville, and  X -Northville Township, IS GRANTED.  X- ` ox14.` ` IT IS FURTHER ORDERED that the certifications of the City of Plymouth ,  xPlymouth Township, Canton Township, Northville, and Northville Township, to regulate the basic  X - xcable rates of Continental Cablevision of Southeast Michigan in Plymouth , Plymouth Township,  X!-Canton Township, Northville, and Northville Township are REVOKED .  X"-""",N(N(ZZ!"Ԍ X- ` ~x15.` ` This action is taken pursuant to the interim rules adopted in Implementation of  X- xiCable Reform Provisions of the Telecommunications Act of 1996, and is without prejudice to any  X- xifurther action taken by the Commission in adopting final rules pursuant to the Notice of Proposed  X-Rulemaking contained therein.i {O8-ԍCable Act Reform Order, 11 FCC Rcd at 59385945, 59615964.i  X- ` ox16.` ` This action is taken pursuant to delegated authority under Section 0.321 of the  Xz-Commission's rules, as amended.; zZ yO -ԍ47 C.F.R 0.321.; x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhMeredith J. Jones x` `  hhChief, Cable Services Bureau