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AZ0125 (San Carlos) 0  S-x` `  hh@)hpp AZ0126 (Peridot)  S-Petition for Special Reliefhh@)hpp AZ0334 (Bylas) T  S -: ORDER TP  S -X` hp x (#%'0*,.8135@8:affiliate, serves in the aggregate fewer than 1 percent of all subscribers in the United States and is not  S- xaffiliated with any entity or entities whose gross annual revenues in the aggregate exceed $250,000,000."M (] yO-ԍ 47 U.S.C. Section 543(m)(2) (1996).M  xThe Commission's rules currently define one percent of all cable subscribers in the United States as  S- x.equivalent to 617,000 subscribers. (] yO- x1ԍ 47 C.F.R. Section 76.1403(b). See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996; 11 FCC Rcd 5937 (1996). The Commission's rules also define an affiliated entity as one which  x"holds a 20 percent or greater equity interest, passive or active, in the operator or exercises de jure or de  Sp- xfacto control over the operator."N p(] yO-ԍ 47 C.F.R. Section 76.1403(c) (1996).N In the 1996 Act, Congress determined that, effective February 8, 1996,  xthe Commission shall not apply its CPST rate regulation rules, promulgated under Section 623(a), (b) and  S - x(c) of the Communications Act,Q (] yOH-ԍ 47 U.S.C. Sections 543(a) (c) (1996).Q to a small cable operator in any franchise area in which that operator  S - xservices 50,000 or fewer subscribers. (] yO!- xZԍ Section 623(m)(1) of the Communications Act of 1934, as amended 47 U.S.C. Section 543(m)(1) (1996). See also 47 C.F.R. Section 76.1403(a). Section 76.1403 of the Commission's rules allows operators to  xcertify that they meet the small operator criteria of the Communications Act and are therefore exempt from  xCPST rate regulation. Such operators are also exempt from basic service tier ("BST") rate regulation if  S -their BST was their only service tier subject to rate regulation as of December 31, 1994.n p(] yO&-ԍ See 47 C.F.R.  76.1403(a); see also 47 U.S.C.  543(m)(1)(B).n "X,`(`(88"Ԍ S- ` x4.` ` In its Petition, Operator certifies that its cable systems in the communities referenced  S- x[above each have less than 50,000 subscribers; that it serves less than one percent of all the subscribers in  xthe United States; and that its annual revenues do not exceed $250,000,000 when combined with the total  xLrevenues of all of its affiliates. Operator also states that it offered only a BST on December 31, 1994 on  xits systems in San Carlos, Arizona and Peridot, Arizona. Upon review, we have determined that in the  xrelevant franchise areas Operator fits the definition of a "small cable operator" as defined in Section  x1623(m)(2) of the Communications Act of 1934, as amended ("Communications Act") and the  S- xCommission's rules thereunder.y(] yOP-ԍ 47 U.S.C. Section 543(m)(2) (1996). See also 47 C.F.R. Section 76.1403 (1996).y Therefore we find that Operator is exempt from rate regulation on its BST in San Carlos, Arizona and Peridot, Arizona, and on its CPST in Bylas, Arizona.  Sp- ` 4x5.` ` Accordingly, IT IS ORDERED that the Petition for Special Relief filed by Apache CableVision requesting small cable operator relief IS GRANTED.  S - ` x6.` ` This action is taken pursuant to delegated authority under Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321.  S - x` `  hhFEDERAL COMMUNICATIONS COMMISSION  R$H  x` `  hhElizabeth W. Beaty x` `  hhChief, Financial Analysis and Compliance Division x` `  hhCable Services Bureau