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a local exchange carrier ("LEC") that provides telephone service within the cable operator's franchise area. д  ŠдСxСи3.и To obtain a waiver of the Buy Out Prohibitions, a petitioner must first obtain approval д ‘Xnв- Аxдof a waiver from its local franchising authorityжgШnАpд yOЯ$Д-д47 U.S.C. РР572(d)(6)(B) and 47 C.F.R. РР 76.505(d)(6)(ii).gж and then petition the Commission for a waiver д ‘XWД- Аxѓдon one of the three grounds, discussed below, enumerated in 47 U.S.C. РР 572(d)(6)(A) and д ‘X@ в- Аx—дSection 76.505(d)(6)(i) of the Commission's rules.жHШ@ @pд yO1(Д-д47 C.F.R. РР 76.505(d)(6)(ii).Hж Following this procedure, SouthEast initiallyд"@ аˆ,о)о)ZZЄџ"д д ‘Xв- Аx\дsought and obtained approval for a waiver from the local franchising authority of Pikeville.ж8ШКд yOyД-дBrief Exhibit B.8ж д АxѓдThen, pursuant to 47 U.S.C. РР 572(d)(6)(A) and Section 76.505(d)(6)(i) of the Commission's д ‘Xвв- Аxдrules,жGШвXКд yOлД-д47 C.F.R. РР 76.505(d)(6)(i).Gж SouthEast filed the instant petition seeking a waiver from the Commission of the д Аx=дrestrictions of Section 652(b). SouthEast argued that the proposed transaction is in the public д Аx дinterest and its anticompetitive effects are clearly outweighed by the probable effect of the д ‘Xв-дtransaction in meeting the convenience and needs of the community to be served.жТшКд yO& Д- Аx‡дThe Commission may grant a waiver based on these grounds pursuant to 47 U.S.C. РР 572(d)(6)(A)(iii) and 47 C.F.R. РР 76.505(d)(6)(i)(C). Тж д ‘X_Д-дУ УII.СxСDISCUSSIONФ ФУ УФ Ф д  lдСxСи4.и The Buy Out Prohibitions of Section 652(b) do not apply to the facts as alleged in the petition. Accordingly, there is no prohibition for the Commission to waive. д ‘Xь в-дСxСи5.и Section 652(b)ж>Шь @Кд yOнД-д47 U.S.C. РР 572(b).>ж provides: д ШЪдТXxТACQUISITIONS BY CABLE OPERATORS. No cable operator or affiliate of a д ШBдcable operator that is owned by, operated by, controlled by, or under common д “XД- ШPдownership with such cable operator УУmay purchase or otherwise acquire, directly д “X{Д- ШЪдor indirectly, more than a 10 percent financial interestФФ, or any management д Ш›дinterest, in any local exchange carrier providing telephone exchange service within д ‘XOв-дsuch cable operator's franchise area.ж\ ЪOаКд {OаД-дУУSee ФФ47 C.F.R. РР 76.505(b) (emphasis added).\жЦа Ц д АxдThus, by its terms, this section applies only to acquisitions of, or joint ventures with, existing д АxzдLECs by cable operators. That the statute applies only to acquisitions and joint ventures is д Аx}дfurther supported by the House and Senate Conference Report accompanying the Telecommunications Act of 1996 which provides: д  !дТXxТThe conference agreement adopts the provisions of the Senate bill limiting acquisitions д   дand prohibiting joint ventures between local exchange companies and cable operators that д  Идoperate in the same market to provide video programming to subscribers or to provide д ‘Xiв-дtelecommunications services in such market.жg Шib Кд yO|%Д-дS. Conf. Rep. No. 104Љ230, 104th Cong., 2d Sess. at 174 (1996).gжЦ(#Ц д"Rђ ˆ,N(N(ZZс"д д ‘XД-  хдд e"WF д СxСи6.и Section 652(d)(6) permits the Commission to waive the restrictions of Section 652(b) when д ШЩдТXxТ(A) the Commission determines that, because of the nature of the market served д Шїдby the affected cable system or facilities used to provide telephone exchange serviceЉЉЦа Ц д ` pдТXxТС` `  С(i) the affected cable operator or local exchange carrier would be subjected to undue economic distress by the enforcement of such provisions;Ца Ц д ` pмдТXxТС` `  С(ii) the system or facilities would not be economically viable if such provisions were enforced; orЦа Ц д ` pŸдТXxТС` `  С(iii) the anticompetitive effects of the proposed transaction are clearly д ШЛдoutweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served; andЦа Ц д ‘Xе в-дСxС(B) the local franchising authority approves of such waiver.жT Ъе Кд {ONД-дУУФФУУSee ФФ47 C.F.R. РР 76.505(d)(6).Tж д  дСxСи7.и SouthEast states that it is not purchasing or otherwise acquiring an interest in an д АxЖдincumbent LEC that provides service in SouthEast's cable franchise area in Pikeville. Rather, д АxФдSouthEast intends to itself commence offering local exchange telephone service in the franchise д Аx\дarea of its Pikeville cable system. Thus, the restrictions of Section 652(b) do not apply here because SouthEast is not purchasing or acquiring a LEC. д   дСxСи8.и Because the restrictions of Section 652(b) do not apply to SouthEast's proposed course д Аxдof conduct, it follows that there are no restrictions for the Commission to waive under Section 652(d)(6). д ‘XСД-дУ УIII. ORDERING CLAUSEФ Ф д ‘X“Д-  шдСxС10. Accordingly, У УIT IS ORDEREDФ Ф that SouthEast's petition for a waiver is д ‘X|Д-дУ УDISMISSEDФ Ф. д  ЊдСxС11. This action is taken by the Chief, Cable Services Bureau, pursuant to authority delegated by Section 0.321 of the Commission's rules. 47 C.F.R. РР 0.321. СxСС` `  ССИ И ШСС№ССhhСFEDERAL COMMUNICATIONS COMMISSION СxСС` `  ССИ И ШСС№ССhhСMeredith J. Jones СxСС` `  ССИ И ШСС№ССhhСChief, Cable Services Bureau