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A. a.(1)(a) i) a)Documentg2!0*e.//PleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:8HH"&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""M\\>>>\}0>03\\\\\\\\\\>>}}}\rryrr>Qygyrr\grrggF3FM\>\\Q\Q3\\33Q3\\\\FF3\QyQQFI3Ic>0cM>>>0>>>>>>\>\3r\r\r\r\r\yyQrQrQrQrQ>3>3>3>3y\\\\\\\\\gQr\\\\gQ\r\r\r\r\yQyQycyQnrQrQrQrQ\\\c\c\>3>\>>>\\ccyQg3gBg>g;g3y\jy\y\\\yrFrFrF\F\F\FccgBg3gM\\\\\\ygcgFgFgF\g>y\\Fg>g\n0\\=(=WddddddddddddddddddddddddddddddddddddddddNBnnB_\F\\\\\\3;\7;\7>>gg\??n\\pBnnBb\\>g\7"yyyy\njc\}nn\"i~'^ %,77\V%%%7>%7777777777>>>0eOIIOD>OO%*ODaOO>OI>DOOgOOD%%37%07070%777V7777%*77O77055;%;3%%%%%%%%%%%7O0O0O0O0O0aHI0D0D0D0D0%%%%O7O7O7O7O7O7O7O7O7O7O0O7O6O7O7O7>7O0O0O0I0I0I;I0OED0D0D0D0O7O7O7O;O7O;O7%%7%%%7M>;;O7DD,D%D%DO7AO7O7O7O7aOI%I%I%>*>*>*>;D.DD3O7O7O7O7O7O7gOO;D0D0D0O7D%O7>*D%O7E77%%WMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN(BB(37%07777j7#TT7!#TT7T!%%007n&&Bn77lCTn(nBB(A\\>>n%07\n!"IIIITTenn7TnB@;7>lBBn7"i~'^09FSS999Sq+9+/SSSSSSSSSS99qqqSggnxggxx9In]nxgxgS]xgg]]?/?FS9SSISI/SS//I/xSSSS??/SInII?C/CZ9+ZF999+999999S9S/gSgSgSgSgSnnIgIgIgIgI9/9/9/9/nSxSxSxSxSxSxSxSxS]IgSxSxSxS]IxSgSgSgSgSnInInZnIxdgIgIgIgIxSxSxSxZxSxZxS9/9S999SSZZnI]/]<]9]5]/nSanSnSxSxSng?g?g?S?S?S?ZZ]<]/]FxSxSxSxSxSxSn]Z]?]?]?xS]9nSS?]9]Sd+SS8%8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuddddddddddddddddddddddddddddddddddddddddNin the unaffiliated cable operator's franchise area, Time Warner asserts that Ameritech has completed   construction of a cable system throughout the entire Village of Glendale Heights and has been providing   cable service to subscribers since May 1996. Time Warner estimates that Ameritech serves approximately   500 subscribers in the Village. Time Warner adds that Ameritech has heavily marketed the availability   of its cable service through local media and other means, and advertises that it will activate service to new   >subscribers quickly. Time Warner asserts there are no regulatory, technical, or other impediments to households taking service from Ameritech. XX` ` `  S-  35.` ` Time Warner also asserts that Ameritech offers comparable programmingC yO#-  ZЍThe Commission observed that Congress specified a different definition of comparable programming for the   LEC effective competition test from that adopted for the first three effective competition tests enacted as part of the   1992 Cable Act. Although soliciting comment as to the revised definition, the Commission on an interim basis   ydetermined that it will apply this new comparable programming standard which "includes access to at least 12   channels of programming, at least some of which are television broadcasting signals" to the LEC effective"&,p(p()'"  {O-  wcompetition test. See Cable Act Reform Order, 11 FCC Rcd at 5942  (quoting 1996 Act Conference Report, S. Rep. 104230 at 170 (Feb. 1, 1996)). to Glendale"",p(p(88"   Heights subscribers. Specifically, Time Warner provides Ameritech's channel lineup which demonstrates   ythat Ameritech offers over 80 channels, of which at least 9 are local television broadcasting signals. Time   Warner offers 78 channels of programming in Glendale Heights, of which at least 12 are local television broadcast signals.  S8-  6.` ` Finally, Time Warner states that it has made several pricing and marketing changes in   response to increased competition from Ameritech. Time Warner notes that it recently: (1) expedited a   fiber upgrade of its cable plant, resulting in an increase in channel capacity from 42 to 78; (2) moved the   Disney Channel from the premium to the basic service tier; (3) offered a discount plan to customers   committing to continue Time Warner service for a year; (4) implemented a payperview technology which   -permits advanced services such as parental lockout and impulse payperview; and (5) designated a specific   kphone line for Glendale Heights subscribers at Time Warner's nearby Hickory Hills, Illinois customer service office.  S - III.ANALYSIS  S -  7.` ` In the absence of a demonstration to the contrary, cable systems are presumed not to be  SX-  subject to effective competition as defined in the Communications Act.=X"C yO-ԍ47 C.F.R. 76.906.= The cable operator bears the   Mburden of rebutting the presumption that such effective competition does not exist and must provide   Nevidence sufficient to demonstrate that effective competition, as defined by Section 76.905 of the  S-Commission's rules, is present in the franchise area.M C yO2-Ѝ47 C.F.R. 76.911(b)(1).M Time Warner has met this burden.  S-  A8.` ` With regard to the first part of the LEC effective competition test, which requires that the   alleged competitive service be provided by a LEC or its affiliate (or any multichannel video programming   distributor ("MVPD") using the facilities of such LEC or its affiliate), we find that Time Warner has   {provided sufficient evidence demonstrating that Ameritech is an MVPD wholly owned by a LEC.  S-  Ameritech Corporation is a LEC as defined by the Communications Act,d @BC yO-ЍThe Communications Act defines the term "local exchange carrier" as:   #XX` ` any person that is engaged in the provision of telephone exchange service or exchange   #access. Such term does not include a person insofar as such person is engaged in the   #3provision 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).d and Ameritech meets the   !Commission's definition of MVPD. Therefore, we find that Time Warner has demonstrated that   Ameritech satisfies the affiliation prong of the LEC effective competition test. Time Warner is unaffiliated with both Ameritech and Ameritech Corporation. "PJ ,p(p(88"Ԍ S-  9.` ` We also find that Time Warner has submitted sufficient evidence to show that the   programming of Ameritech is comparable to the programming which it provides. The channel information   \for Ameritech submitted by Time Warner establishes that Ameritech offers more than 80 channels of   Nprogramming, including 9 local broadcast channels. This satisfies the programming comparability criterion.  S-  10.` ` In addition, we find that based on the information before us, Ameritech is offering service   in Time Warner's franchise area sufficient to demonstrate the presence of effective competition.   Ameritech has completed its overbuild of Time Warner's system in the Village of Glendale Heights and   ?is now competing for customers with Time Warner in the area at issue. We find that Ameritech's   presence and its undisputed recruitment of 500 subscribers in the franchise area are indicia that Ameritech is physically able to offer service in the cable community.  S -  11.` ` We note that Ameritech's extensive marketing efforts and the wide press coverage of   >Ameritech's cable service offerings in the local media ensure that potential subscribers are reasonably   aware of the availability of Ameritech's service. Subscribers in Glendale Heights are able to receive   zAmeritech's cable service for little or no additional investment and without encountering regulatory or   technical obstacles. We also note that Time Warner has upgraded its cable plant, and added new channels,   all for the benefit of its subscribers. Consistent with Congressional intent in adopting Section 623(l)(1)(d) of the Communications Act, under the circumstances we find "effective competition" to be present.  S- IV.ORDERING CLAUSES  S-  Sh-  &12.` ` Accordingly, IT IS ORDERED that the Petition for Special Relief seeking a   0determination of effective competition filed by Time Warner EntertainmentAdvance /Newhouse  S-Partnership d/b/a Time Warner of DuPage County IS GRANTED.  S-  13.` ` This action is taken pursuant to the interim rules adopted in Implementation of Cable  S-  [Reform Provisions of the Telecommunications Act of 1996, and is without prejudice to any further action   taken by the Commission in adopting final rules pursuant to the Notice of Proposed Rulemaking contained  ST-therein.i TC {O-ԍCable Act Reform Order, 11 FCC Rcd at 59385945, 59615964.i  S-  14.` ` This action is taken pursuant to delegated authority under Section 0.321 of the  S-Commission's rules, as amended.; ZC yO-ԍ47 C.F.R 0.321.; ` `  hh,FEDERAL COMMUNICATIONS COMMISSION ` `  hh,Meredith J. Jones  S!-` `  hh,Chief, Cable Services Bureau