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(1) (a) (i) 1) a)D )DDDFrfQq 2\lȋ)y.X80,X\  P6G;P *7jC:,9Xj\  P6G;XP+7nC:,|Xn4  pG;X,a$G,',G\  P6G;P.y.\80,T\4  pG;/W!@(#,h@\  P6G;hP08wC;,%Xw PE37XP\1{,W80,.0W*f9 xr G;X\45hC:,.2Xh*f9 xr G;XXH5!,i,5\  P6G;,P yO- X   ) X-w #Xj\  P6G;9XP# Federal Communications Commission`)(# DA 971184 ă  yxdddy )d aE#G\  P6G;P#Draft of D3 1, 4Dآ "JU Ԋ "JU v3 Before the Federal Communications Commission  yO} Washington, D.C. 20554 ă  yO -T#Xj\  P6G;9XP#у  X-In the Matter of  hh@h)  X-Petition for Relief of Th) x` `  hh@h)  X-Car TV Productions, Inc.hh@h) x` `  hh@h)  Xu-x` ` v. hh@h)ppCSR4771L x` `  hh@h)  XG -Time Warner Cable, d/b/a Paragon Cable@hppTh)  X0 -Th)  X -For Leased Access ChannelsTh)  X-  MEMORANDUM OPINION AND ORDER TP  X-X` hp x (#%'0*,.8135@8:commercial leased access regulations by refusing to lease CAR TV time on Paragon's cable  x=system in Newburgh, New York. Paragon filed a response denying any violation of the leased access regulations and requesting that the complaint be denied.  X-  X-" BACKGROUND ă  Xd- ` ~x2. ` ` In 1984, Congress amended the Communications Act of 1934 by adding among  xother things a commercial leased access requirement, pursuant to which cable operators with 36  X6- xor more activated channels must set aside part of their channel capacity for use by video  X - xLprogrammers that are not affiliated with them.{ A X"-#Xw PE37XP##Xj\  P6G;9XP#э#X\  P6G;P#See Section 612 of the Communications Act of 1934, as amended., 47 U.S.C.  532. The amount of  {O#-channel capacity an operator must set aside is based on a system's activated channel capacity. See 47 U.S.C.  532(b). The Cable Television Consumer Protection and  xzCompetition Act of 1992 (the "1992 Cable Act") revisited the leased access requirement and  xdirected the Commission to establish rules for determining maximum reasonable rates for, and"! ,p(p(ZZ!"  X- x-reasonable terms and conditions for the use of, commercial leased access channels.518 Xy-#Xw PE37XP##Xj\  P6G;9XP#э#X\  P6G;P#See Pub. L. No. 102385,  9, 10(a) and 10(b), 106 Stat. 1460, Oct. 5, 1992. See 47 U.S.C.  532(c)(4)(A) & (B) (1992).5 Pursuant to  x-that Congressional directive, the Commission established regulations applicable to leased access  X- xchannels in its proceedings in Implementation of Sections of the Cable Television Consumer  X- xiProtection and Competition Act of 1992; Rate Regulation, MM Docket 92266, (the Rate Order),  X- x8 FCC Rcd 5631, 59565961 (1993). The Commission revisited these regulations in  V- xImplementation of Sections of the Cable Television Consumer Protection and Competition Act of  Vz- x1992, Leased Commercial Access, Second Report and Order and Second Order on  Xc- xReconsideration of the First Report and Order, CS Docket 9690, FCC 9727, released  XN-February4, 1997 ("Second Report").|NA18 {O@ -#X\  P6G;P#эSee 62 Fed. Reg. 11364, March 12, 1997.|  X" - THE PLEADINGS ă  X - ` x3. ` ` Car TV alleges that, after making inquiries about leased access time on Paragon's  xcable system and receiving quotations of rates for service, it returned to Paragon a completed  x=application for service, a sample video tape of its programming, and payment for one month of  xservice. Car TV alleges further that Paragon responded with a letter stating that it would not  xprovide the requested leased access time, on the grounds that the sample video tape indicates that  xCar TV is reselling time, and taking the position that a cable operator is not required to lease  Xj- xtime to programmers who intend to resell time to third parties. Car TV states that it produces  xthe proposed programming itself and is not reselling time and asserts that it is entitled to leased access time on Paragon's cable system.  X- ` x4. ` ` Paragon asserts in response that the sample video tape provided by Car TV shows  xthat Car TV's programming consists entirely of commercial advertisements for car dealerships  X- xand that Car TV thus proposes to resell any leased access time that would be provided by  x=Paragon. Paragon argues that Congress did not mandate that leased access time be offered to  xresellers of leased access time. Paragon argues that the Commission's leased access rules do not  xaddress the relationship between a cable operator and a reseller of leased access time. It asserts  X- xthat, in the further proposed rulemaking proceeding in Order on Reconsideration of the First  Xo- x Report and Order and Further Notice of Proposed Rulemaking, MM Docket 92266 & CS  XZ- xDocket 9660, FCC 96122, released March 29, 1996, 61 Fed. Reg. 16396 (April 15, 1996)  XC- x("Recon. Order"), the Commission requested comment on whether leased access time should be  xmade available to resellers of leased access time. Paragon takes the position here that, because  xythe Commission is thus considering whether to adopt regulations relating to reselling of leased  xaccess time, cable operators have no obligation to provide leased access time to anyone proposing  xito resell such leased time. Paragon argues that requiring cable operators to provide leased access  x<time to resellers of leased access time would undermine Congressional intent in mandating leased access time."!,N(N(ZZ "Ԍ X-ԙw DISCUSSION AND ANALYSIS ă  X- ` x5. ` ` Paragon has failed to establish that Car TV is engaged in reselling leased access  xtime. Car TV stated in its complaint that it is not engaged in reselling leased access time and  X- xasserted, "we do the full production and are clearly programmers."918 yO-ԍCar TV complaint.9 On the basis of an  xexamination of the sample programming tape provided by Car TV, Paragon asserts that the tape  Xv- xconsisted of "six local car dealership advertisements,"?vX18 yO -ԍParagon response, p. 1.? and that "Car TV, by proposing to fill all  xof its leased time with third party advertisements, is not acting as a programmer, but as a reseller  XH- xof time."?H18 yO -ԍParagon response, p. 3.? We reject Paragon's statement as constituting an evidentiary showing that Car TV is  xengaged in reselling leased access time to its advertising clients. In the absence of probative  x\information to the contrary, we accept Car TV's representation that it is in full control of the  xproduction of its proposed programming and find that Car TV is engaged in program production  X - xand is not engaged in reselling leased access time. We note, in any event, that in the Second  X - xReport, the Commission concluded that resale of leased access capacity to persons unaffiliated  xwith the cable operator should be permitted, subject to certain contractual conditions not shown  xxto be pertinent here. The Commission found that resale can provide substantial benefits to leased  X-access programmers without an adverse impact on cable operators.Nx18 {O-ԍSee Second Report,  77 82.N   Xf- ` 3x6. ` ` We also reject Paragon's argument that it may refuse to provide the requested  xleased access time because Car TV's programming contained advertising content. This case  X8- xinvolves a request by a video production company for time on a leased access channel, designated  x0for that use pursuant to Section 612 of the Communications Act, for the presentation of  xprogramming produced by Car TV. Absent a showing of any affiliation between Car TV and  xParagon, we find that Car TV qualifies as an unaffiliated "diverse source of video programming"  xkfor whom Paragon is required by Section 612 to "designate channel capacity for commercial  X- xuse."F 18 yO-ԍ47 U.S.C.  532(a) and (b).F Accordingly, we reject Paragon's argument that Car TV is not entitled to leased access  xKchannels because Car TV's program productions contain advertising content. Nothing in Section  x612 may be construed as disqualifying Car TV from use of a leased access channel, simply  X- xbecause its program productions contain advertising content. See Lorilei Communications, Inc.,  Xk- x[d/b/a The Firm v. Continental Cable of Eastern Michigan, Inc., DA 971010, (Cable Serv. Bur.  xyreleased May 15, 1997) (1997 WL 253163). Accordingly, we will direct Paragon to provide such  xleased access channel capacity as may be requested by Car TV consistent with the requirements of Section 612. ",N(N(ZZ"Ԍ X-L7 ORDERS ă  X- ` x7. ` ` For the foregoing reasons, IT IS ORDERED pursuant to 47 C.F.R.  76.975(f)  X-that the petition for relief of Car TV Productions, Inc. in File No. CSR 4771L IS GRANTED .  X- ` x8. ` ` IT IS FURTHER ORDERED that respondent Time Warner Cable, d/b/a/  xParagon, shall, within twenty days from the release date of this order, provide to Car TV with  xsuch leased access channel capacity as may be requested consistent with the requirements of 47 U.S.C  532 and the Commission's regulations.  X -x9. ` ` This action is taken pursuant to authority delegated by Section 0.321 of the Commission's rules, 47 C.F.R.  0.321. X` hp x (#%'0*,.8135@8: