WPC 2MB%RK Z3|jTimes New RomanTimes New Roman Bold P6G;P"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+99999999S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&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"" .   X- ` x 1.` ` On February 10, 1997, Microwave Satellite Technologies, Inc. ("MSTI") filed an  xapplication for certification to operate an open video system pursuant to Section 653(a)(1) of the  X- x.Communications Act and Commission rules.p yO#- x<ԍCommunications Act of 1934, as amended,  653(a)(1), 47 U.S.C.  573(a)(1) ("Communications Act"); 47 C.F.R.  76.1502. MSTI seeks to operate an open video system in  x=the City of New York, including the boroughs of Manhattan, Brooklyn, Queens, Staten Island, and the Bronx.  XN- ` px2.` ` As provided in our rules, the Commission published notice of receipt of the  X7- xcertification application and posted the application on the Internet.7 p {O!- xԍSee In the Matter of Implementation of Section 302 of the Telecommunications Act of 1996, Open Video Systems,  {O!- xYSecond Report and Order, CS Docket No. 9646, 61 FR 28698 (6/5/96), FCC 96249, released June 3, 1996 at  34  {O"- xh("Second Report and Order"); Third Report and Order and Second Order on Reconsideration, CS Docket No. 9646,  {Of#- x61 FR 43160 (August 21, 1996), FCC 96334, released August 8, 1996 ("Third Report and Order"). The application was placed on the Internet and published in the Daily Digest on February 10, 1997. No comments were filed  X -regarding MSTI's certification application. p {O&- xԍComments and oppositions must be filed within five days of the Commission's receipt of the application. See  {Os'-Second Report and Order at  35; 47 C.F.R.  76.1501.  X - " 4 ,))ZZ["Ԍ X- ` A x 3.` ` Pursuant to Section 653(a)(1) of the Communications Act, any person may obtain  X- x?certification to operate an open video system.Z yOb- xԍ47 C.F.R.  76.1501. An operator of a cable system, however, generally may not obtain such certification  xwithin its cable service area unless it is subject to "effective competition" as defined in Section 623(1)(l) of the  {O-Communications Act, 47 U.S.C.  543(l)(l). See also, 47 C.F.R.  76.1501. In light of the brief period (ten days) for  xLCommission review of certification filings, the Commission concluded that Congress intended  X- xa streamlined certification process.Q {OV-ԍSecond Report and Order at  28.Q Open video system operators may apply for certification at  xany point prior to the commencement of service, subject to two conditions, depending on whether  xconstruction of a new physical plant is required. If construction of a new physical plant is  xrequired, the applicant must obtain Commission approval of its certification prior to the  xxcommencement of construction. If no new construction is required, certification must be obtained  XH- xprior to the commencement of service, allowing sufficient time to comply with the Commission's  X1-notification requirements to programming providers.l1| {O^-ԍSecond Report and Order at  34; 47 C.F.R.  76.1502(a).l  X - ` 2x4.` ` Despite its streamlined nature, the Commission intended the certification process  x.to provide purposeful representations regarding the responsibilities of the open video system  X - xoperator, by requiring, inter alia, the submission of specified information and that certifications  X - x\be verified.Q  {O-ԍSecond Report and Order at  31.Q To obtain certification, a party must file FCC Form 1275 which requires, among  xother things: (a) a statement of ownership, including a list of all affiliated entities; (b) a  x.representation that the applicant will comply with the Commission's regulations under Section  X{- x[653(b);.{ yO- xԍCommunications Act of  653(b); 47 C.F.R.  573(b). Under this section the applicant agrees to comply with  xthe Commission's requirements regarding nondiscriminatory carriage; just and reasonable rates, terms and conditions;  xa onethird capacity limit on the amount of activated channel capacity on which an open video system operator may  xZselect programming when demand for carriage exceeds system capacity; channel sharing; application of the rules  x concerning sports exclusivity, network nonduplication, and syndicated exclusivity; and nondiscriminatory treatment  {O-in presenting information to subscribers. See Third Report and Order at  13.. (c) a general description of the anticipated communities or areas to be served; and (d) a statement on the anticipated type and amount of capacity that the system will provide.  X6- xII.` ` DISCUSSION  T"u> .   X- ` 3x5.` ` We have reviewed the information contained in MSTI's FCC Form 1275. In its  xfiling, MSTI, as requested by Form 1275: provides company information including a separate  x{statement of ownership, including all affiliated entities; makes the required eligibility and  xcompliance representations; and provides the required system information, system capacity and  xyverification statements. MSTI indicates that it has served the relevant local authority, the New  xYork Department of Information and Technology ("DOITT"), which is the designated",-(-(ZZQ" telecommunications official for the City of New York.  X- x  X- ` $x6.` ` We conclude that MSTI has provided the requisite facts and representations  xconcerning the open video system it intends to operate, and has properly certified that it "agrees  xLto comply and remain in compliance with each of the Commission's regulations" under Section  X- x653(b).- 0  yO- xԍThe Commission's rules require incumbent local exchange carriers (LECs) to allocate their costs between their  {O- xiregulated and nonregulated activities in accordance with specific principles. See 47 C.F.R.  64.901. The largest  yO- xYincumbent LECs are further required by the Commission's rules to file cost allocation manuals with the Commission.  {O` - xjSee 47 C.F.R.  64.903. The Commission's rules also provide that, for certain changes to the cost allocation  ximanuals, such changes must be filed with the Commission "at least 60 days before the carrier plans to implement  {O - xthe changes." See 47 C.F.R.  64.903(b). Therefore, when creating the open video system rules, the Commission  xwrequired that Companies seeking certification as open video system operators that are required to file cost allocation  xYmanuals must certify that they will modify their cost manuals "at least 60 days prior to commencement of service."  {OL - x<See Form 1275, Module C, Line 4. We note that MSTI indicated, by checking the "yes" box on its Form 1275,  xModule C, Line 4, that, if applicable, it would agree to file changes to its cost allocation manual at least 60 days  xbefore the commencement of service. MSTI has represented in a February 19, 1997 phone conversation with  xCommission staff, that it is not an incumbent LEC. Accordingly, MSTI is not required to file a cost allocation manual and should have checked the "not applicable" box on its form. We find MSTI's mistake to be harmless error. - We reiterate that, if any representations in the certification filing prove to be materially  xfalse or materially inaccurate, the Commission retains the authority to revoke MSTI's certification or impose such other penalties it deems appropriate, including forfeiture.  X1-x III.` ` ORDERING CLAUSES T"u> .   X - ` x7.` ` Accordingly, IT IS ORDERED , that the certification of Microwave Satellite  xTechnologies to operate an open video system in the City of New York, New York, including  X -the boroughs of Manhattan, Brooklyn, Queens, Staten Island, and the Bronx, is APPROVED .  X - ` x8.` ` This action is taken by the Chief, Cable Services Bureau, pursuant to the authority delegated by  0.321 of the Commission's Rules, 47 C.F.R.  0.321. x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  x` `  hh@Meredith J. Jones x` `  hh@Chief, Cable Services Bureau T"u>   T"u>