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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of: ) ) Complaint of SAH Acquisition ) CSR-5272-M Corporation II against Grafton Cable) Communications, Inc. ) ) Request for Carriage ) MEMORANDUM OPINION AND ORDER Adopted: October 29, 1998 Released: November 3, 1998 By the Acting Chief, Consumer Protection and Competition Division, Cable Services Bureau: INTRODUCTION 1. SAH Acquisition Corporation II, a wholly-owned subsidiary of Shop at Home, Inc., licensee of Station WOAC-TV (Ind., Ch. 67), Canton, Ohio, has filed a must carry complaint against Grafton Cable Communications, Inc. for its failure to carry WOAC-TV on its systems serving Grafton, Grafton Village, La Grange, Eaton and Wellington, Ohio. No opposition has been received. BACKGROUND 2. Pursuant to Section 614 of the Communications Act and implementing rules adopted by the Commission in its Implementation of the Cable Television Consumer Protection and Competition Act of 1992 ("Must Carry Order"), commercial television broadcast stations are entitled to assert mandatory carriage rights on cable systems located within the station's market. A station's market for this purpose is its "area of dominant influence," or ADI, as defined by Arbitron audience research organization. SUMMARY OF ARGUMENTS 3. In support of its request, WOAC-TV states that, initially, its former licensee notified Grafton Cable by letters dated September 27, 1996 that the station was electing must carry status in lieu of retransmission consent, pursuant to 76.64(f) of the Commission's rules. While Grafton Cable responded to these election notices and informed the station that it did not offer a good quality signal, WOAC-TV maintains that such response did not constitute a "specific event" triggering the statutory time period in which to file a must carry complaint. WOAC-TV states that it then responded to Grafton Cable, confirming that it did not as yet deliver a good quality signal, but would contact the system with regard to carriage when it did so. Subsequently, by letter dated March 27, 1998, WOAC-TV stated that it informed Grafton Cable that it was now a qualified local signal and requested carriage on the Grafton and Wellington cable systems, pursuant to 76.61(a)(1) of the Commission's rules. When Grafton Cable failed to respond to this request within the required thirty days or commence carriage of its signal, WOAC-TV filed the instant complaint. WOAC-TV argues that Canton, its city of license, is located within the Cleveland, Ohio ADI as are the cable systems served by Grafton Cable. WOAC-TV maintains that it is therefore entitled to carry so long as such carriage does not cause increased copyright liability for the cable operator and delivers a signal of good quality to the cable systems' principal headends. WOAC-TV points out that since it is within the same ADI as the instant cable communities, no increased copyright liability will occur. Moreover, should Grafton Cable be unable to receive a good quality signal, WOAC-TV indicates that it will acquire and install at its own expense any equipment necessary to assure that it delivers a signal that meets the Commission's signal strength criteria. In light of the above, WOAC-TV requests that the Commission order Grafton Cable to fulfill its statutory must carry obligations and commence carriage of its signal. DISCUSSION 4. We grant WOAC-TV's complaint. We find that the unrebutted representations made by WOAC-TV demonstrate that it is a local full-power commercial television station qualified for carriage on Grafton Cable's Grafton and Wellington cable systems. Under the Commission's must carry rules, cable operators have the burden of showing that a commercial station that is located in the same television market as a cable operator is not entitled to carriage. Grafton Cable and WOAC-TV are both located in the Cleveland, Ohio ADI. Grafton Cable did not file an opposition to WOAC-TV's complaint. Moreover, while WOAC-TV did include an October 14, 1996 letter from Grafton Cable which includes an undisputed signal strength survey which indicates that WOAC-TV did not, at the time, meet the Commission's signal strength criteria, it has presented no further evidence in this regard. In any event, WOAC-TV has offered to provide any specialized equipment necessary to Grafton Cable to ensure the receipt of a good quality signal at the cable systems' headends. In addition, WOAC-TV has stated that it will bear the costs of installing such equipment. The Commission has stated that amplifiers and other equipment may be employed to deliver a good quality signal to a cable system headend. The Commission, in the Implementation of the Cable Television Consumer Protection and Competition Act of 1992, Broadcast Signal Carriage Issues ("Must Carry Clarification Order"), after re-emphasizing that it was the television station's obligation to bear the costs associated with delivering a good quality signal to the system's principal headend, stated: This may include improved antennas, increased tower height, microwave relay equipment, amplification equipment and tests that may be needed to determine whether the station's signal complies with the signal strength requirements . . . . WOAC-TV, by committing to provide specialized equipment, satisfies its obligation to bear the costs associating with delivering a good quality signal to Grafton Cable's principal headends. Consequently, we order Grafton Cable to carry WOAC-TV's signal at the time the station delivers a signal of good quality. ORDERING CLAUSES 5. Accordingly, IT IS ORDERED, that the petition filed June 29, 1998, by SAH Acquisition Corporation II IS GRANTED pursuant to 614(d)(3) of the Communications Act of 1934, as amended (47 U.S.C. 534). Grafton Cable IS ORDERED to commence carriage of WOAC-TV on its Grafton and Wellington cable systems sixty (60) days from the date that WOAC-TV provides a good quality signal at Grafton Cable's principal headends. 6. IT IS FURTHER ORDERED that WOAC-TV shall notify Grafton Cable in writing of its carriage and channel position elections (76.56, 76.57, and 76.64(f) of the Commission's Rules) within thirty (30) days of providing a good quality signal. 7. This action is taken pursuant to authority delegated by 0.321 of the Commission's Rules. FEDERAL COMMUNICATIONS COMMISSION Deborah Klein, Acting Chief Consumer Protection and Competition Division Cable Services Bureau