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Marcus Cable Associates, L.P. d/b/a Marcus Cable ("Marcus") has filed a Petition for Special  d(# Relief seeking a determination of effective competition. Marcus asserts that it is subject to effective  d(#competition in Barron, Wisconsin because of the cable service of CTC Communications, Inc. in that City. This petition is unopposed. For the reasons discussed below, the Petition is granted.  v 2. Section 623(a)(4) of the Communications Act of 1934, as amended ("Communications Act")  d(#allows franchising authorities to become certified to regulate basic cable service rates of cable operators  S- d(#[which are not subject to effective competition.b yOX-ԍCommunications Act 623(a)(4), 47 U.S.C. 543(a)(4).b For purposes of the initial request for certification, local  d(#franchising authorities may rely on a presumption that cable operators within their jurisdiction are not  S- d(#subject to effective competition unless they have actual knowledge to the contrary.OX yO-ԍ47 C.F.R. 76.906, 76.910(b)(4).O Certification becomes  d(#effective 30 days from the date of filing unless the Commission finds that the authority does not meet the  SP-statutory certification requirements.P yO- d(#ԍ47 C.F.R. 76.910. In the instant proceeding, the City of Barron filed a request for certification on August 27, 1993.  S- v 3. In Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996  S- d(#[("Cable Act Reform Order"),E@ yO#-ԍ11 FCC Rcd 5937, 5944 (1996).E the Commission instructed cable operators believing themselves subject to  d(#local exchange carrier ("LEC") effective competition under Section 623(l)(1)(D) of the Communications  d(#Act to file a petition for determination of effective competition pursuant to Section 76.7 of the",((88"  S- d(#Commission's rules.;E yOh-ԍ47 C.F.R. 76.7.; A finding that a cable system is subject to effective competition precludes regulation  S- d(#of its cable rates by the local franchising authority.@XE yO-ԍ47 U.S.C. 543(a)(2).@ Section 623(l)(1)(D) of the Communications Act provides that a cable operator is subject to effective competition where:  XX` ` a local exchange carrier or its affiliate (or any multichannel video programming   distributor using the facilities of such carrier or its affiliate) offers video  programming services directly to subscribers by any means (other than directto Thome satellite services) in the franchise area of an unaffiliated cable operator  which is providing cable service in that franchise area, but only if the video  Fprogramming services so offered in that area are comparable to the video  Sp-programming services provided by the unaffiliated cable operator in that area.hpE yO -ԍCommunications Act 623(l)(1)(D), 47 U.S.C. 543(l)(1)(D).h `  S - II.THE PLEADINGS  v 4. Marcus asserts that it is subject to LEC effective competition in its Barron, Wisconsin franchise  d(#area. With regard to the LEC affiliation requirement, Marcus asserts that CTC Communications, Inc. d/b/a  d(#[CTC TelCom ("CTC") is a competing franchised cable operator wholly owned by Chibardun Telephone  SX-Cooperative, Inc., ("CTCI") a local exchange carrier serving customers in Wisconsin. XxE yOp- d(#YԍThe City of Barron awarded cable franchises to CTC and Marcus under the same franchise terms and provisions.  yO8-Petition for Special Relief filed by Marcus on Jan. 14, 1998 at 6 ("Petition").   S- v 5. With regard to the requirement that the LEC competitor offer ( E yOx- d(#ЍIn implementing the LEC effective competition test on an interim basis, the Commission determined that its pre d(#existing definition of the term "offer" as used in the three effective competition definitions set forth in the 1992  yO- d(#Cable Act would apply to the LEC test. 11 FCC Rcd at 5942. The Commission previously determined that service of a multichannel video programming distributor will be deemed offered:  CXX` ` (1) When the multichannel video programming distributor is physically able to deliver  5service to potential subscribers, with the addition of no or only minimal additional  investment by the distributor, in order for an individual subscriber to receive service; and  (2) When no regulatory, technical or other impediments to households taking service exist,  and potential subscribers in the franchise area are reasonably aware that they may purchase the services of the multichannel video programming distributor. ` 47 C.F.R. 76.905(e).  video programming service in  d(#the unaffiliated cable operator's franchise area, Marcus asserts that CTC has completed more than 75%  d(#jof an overbuild of Barron and consequently, is physically able to provide cable service to the majority of" ,`(`(88"  S- d(#>the city of Barron. ZE yOh- d(#ԍMarcus explains that CTC would not provide it a precise subscriber count, but did state to Marcus it passed  {O0- d(#more than 50% of the households in Barron, and is providing service to more than 15% of those households. See  yO-Letter from Rick Vergin, CTC Telcom to Steven Caple, Marcus Cable (Jan. 7, 1998), Petition at Exhibit E. Marcus adds that CTC has heavily marketed the availability of its cable service  d(#through local media and other means. Marcus asserts there are no regulatory, technical, or other impediments to households in Barron taking service from CTC. XX` ` `  S`- v #6. Marcus also asserts that CTC offers comparable programmingo z`E yO- d(#xЍThe Commission observed that Congress specified a different definition of comparable programming for the  d(# LEC effective competition test from that adopted for the first three effective competition tests enacted as part of the  d(#1992 Cable Act. Although soliciting comment as to the revised definition, the Commission on an interim basis  d(#ydetermined that it will apply this new comparable programming standard which "includes access to at least 12  d(#channels of programming, at least some of which are television broadcasting signals" to the LEC effective  {O - d(#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)).o to Barron subscribers.  d(#Specifically, Marcus provides CTC's channel lineup which demonstrates that CTC offers over 75  d(#channels, of which at least 12 are local television broadcasting signals. Marcus offers 70 channels of  S-programming in Barron, of which at least 10 are local television broadcast signals.C , E yO-ԍPetition at Exhibits H & I.C  v 7. Finally, Marcus states that it has made several pricing and marketing changes in response to  d(#jcompetition from CTC. Marcus notes that it recently: (1) added channels to its expanded basic tier with  d(#no rate increase; (2) added additional premium services such as HBO2 and HBO3 to the ala carte price  d(#.for HBO and Showtime; and (3) upgraded its system by adding pay per view channels and an onscreen programming guide.  S - III.ANALYSIS  v 8. In the absence of a demonstration to the contrary, cable systems are presumed not to be subject  S0- d(#jto effective competition as defined in the Communications Act.= 0 E yO-ԍ47 C.F.R. 76.906.= The cable operator bears the burden of  d(#rebutting the presumption that such effective competition does not exist and must provide evidence  d(#sufficient to demonstrate that effective competition, as defined by Section 76.905 of the Commission's  S-rules, is present in the franchise area.ML E yO -Ѝ47 C.F.R. 76.911(b)(1).M Marcus has met this burden.  v "9. With regard to the first part of the LEC effective competition test, which requires that the  d(#alleged competitive service be provided by a LEC or its affiliate (or any multichannel video programming  d(#Ldistributor ("MVPD") using the facilities of such LEC or its affiliate), we find that Marcus has provided  d(#sufficient evidence demonstrating that CTC is an MVPD wholly owned by a LEC. CTCI is a LEC as",`(`(88%"  S- d(#defined by the Communications Act,d@E yOh-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 CTC meets the Commission's definition of MVPD.@E {Op -ԍSee 76.905(d).@  d(#Therefore, we find that Marcus demonstrates that CTC satisfies the affiliation prong of the LEC effective competition test. Marcus is unaffiliated with both CTC and CTCI.  v 10. We also find that Marcus has submitted sufficient evidence to show that the programming  d(#of CTC is comparable to the programming which it provides. The channel information for CTC submitted  d(#Nby Marcus establishes that CTC offers more than 75 channels of programming, including 12 local broadcast channels. This offering satisfies the programming comparability criterion.  v }11. In addition, we find that based on the information before us, CTC is offering service in  d(#[Marcus's franchise area sufficient to demonstrate the presence of effective competition. CTC has nearly  d(#[completed its overbuild of Marcus's system in Barron and is now competing for customers with Marcus  d(#in the area at issue. We find that CTC's uncontroverted statement that it passes more than 50% of the  d(#households in the City of Barron and serves more than 15% of the households in the City is indicia that CTC is physically able to offer service in the cable community.  v R12. We note that CTC's extensive marketing efforts, including newspaper and radio  d(#jadvertisements, as well as the stories and editorials about CTC's construction and service offerings in the  d(#local newspapers ensure that potential subscribers are reasonably aware of the availability of CTC's  d(#>service. In those areas wired and marketed by CTC, potential subscribers need only contact CTC to  d(#activate service. Moreover, those subscribers are able to receive CTC's cable service for little or no  d(#additional investment and without encountering regulatory or technical obstacles. We also note that  d(#Marcus has added new channels for the benefit of its subscribers. Consistent with Congressional intent  d(#Lin adopting Section 623(l)(1)(D) of the Communications Act, under the circumstances we find "effective competition" to be present. "b ,`(`(88"  S- IV.ORDERING CLAUSES  S-  S- v l13. Accordingly, IT IS ORDERED that the Petition for Special Relief seeking a determination  S-of effective competition filed by Marcus Cable Associates, L.P. IS GRANTED .  S8- v 014. IT IS FURTHER ORDERED that the certification of the City of Barron to regulate the  S-basic cable rates of Marcus Cable in Barron, Wisconsin IS REVOKED .  S- v ]15. This action is taken pursuant to the interim rules adopted in Implementation of Cable Reform  S- d(#Provisions of the Telecommunications Act of 1996, and is without prejudice to any further action taken  d(#Mby the Commission in adopting final rules pursuant to the Notice of Proposed Rulemaking contained  SL -therein.iL E {O -ԍCable Act Reform Order, 11 FCC Rcd at 59385945, 59615964.i  v l16. This action is taken pursuant to delegated authority under Section 0.321 of the Commission's  S -rules, as amended.; ZE yO-ԍ47 C.F.R 0.321.; ` `  hhCFEDERAL COMMUNICATIONS COMMISSION ` `  hhCJohn E. Logan ` `  hhCActing Chief, Cable Services Bureau