******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. 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: ) ) COMCAST CABLEVISION ) CUID Nos. DE0025, DE0059, DE0060, OF DELMARVA, INC. ) DE0062, DE0070, DE0088, DE0089, ) DE0090, DE0091, and DE0092 ) Petition for Recertification of the) Delaware Public Service Commission) to Regulate Basic Cable Service Rates ) MEMORANDUM OPINION AND ORDER Adopted: July 19, 1999 Released: July 20, 1999 By the Chief, Cable Services Bureau: I. INTRODUCTION 1. The Delaware Public Service Commission ("DPSC") pursuant to Section 76.916 of the Commission's rules filed a petition for recertification to regulate the basic cable service rates of Comcast Cablevision of Delmarva, Inc. ("Comcast"). The DPSC's petition is unopposed. 2. Section 623(a)(4) of the Communications Act of 1934, as amended, allows franchising authorities to become certified to regulate basic cable service rates of cable operators that are not subject to effective competition. For purposes of the initial request for certification, local franchising authorities may rely on a presumption that cable operators within their jurisdiction are not subject to effective competition, unless the franchising authority has actual knowledge to the contrary. Certification becomes effective 30 days from the date of filing unless the Commission finds that the franchising authority does not meet the statutory certification requirements. Cable operators may file petitions for reconsideration of the franchising authority's certification within 30 days from the date such certification becomes effective. Rate regulation is automatically stayed pending review of a timely-filed petition for reconsideration alleging the presence of effective competition. After the 30-day deadline for filing petitions for reconsideration has elapsed, cable operators may challenge the franchising authority's certification by filing a petition for revocation. However, regardless of its grounds, a petition for revocation does not automatically trigger a stay of the franchising authority's power to regulate basic rates. Following the denial or revocation of its certification, a local franchising authority may file a petition for recertification which states that: (1) the local franchising authority meets the requirements set forth in Section 623(a)(3) of the Communications Act; (2) the cable system is not subject to effective competition; and (3) contains a clear showing, supported by either objectively verifiable data such as a state statute, or by affidavit, that the reasons for the earlier denial or revocation no longer pertain. II. DISCUSSION 3. On December 5, 1996, the Cable Services Bureau (the "Bureau") issued a Memorandum Opinion and Order ("Order") revoking the certification of the DPSC to regulate the basic cable service rates of Marcus Cable of Delaware and Maryland, L.P. ("Marcus"), the predecessor in interest to Comcast. After rejecting the DPSC's franchise area redefinition arguments, the Bureau determined that Marcus was subject to low penetration effective competition. The Bureau found that Marcus provided cable service to 10,790 of the 37,405 households in its franchise area, or 28.8 percent of the households in the franchise area. Because Marcus' franchise area penetration rate was below the 30 percent threshold established by Congress, the Bureau revoked the DPSC's certification. 4. In its petition for recertification, the DPSC argues that changed circumstances occurring since the release of the Order permit its recertification to regulate Comcast's basic cable service rates. Specifically, the DPSC asserts that the number of subscribers in the franchise area currently served by Comcast exceeds the 30 percent low penetration effective competition threshold. The DPSC provides evidence that Comcast serves 11,311 households in the franchise area and, based on information provided by Comcast, predicts that subscribership totals will increase to 11,559 by the end of 1999. In addition, the DPSC asserts that Comcast has represented to the DPSC that over the next year it will reconfigure its systems and intends to deactivate the Harrington headend which now serves the cable system that is the subject of this proceeding. Subscribers in Sussex County currently served by the Harrington headend will be served from Comcast's Georgetown headend. The remaining Harrington headend subscribers located in Kent County will be served from Comcast's Dover headend. The DPSC regulates the basic cable service rates of Comcast subscribers served by the Georgetown and Dover headends. Finally, the DPSC asserts that Comcast has represented to it that Comcast does not oppose the instant request for recertification. 5. In the absence of a demonstration to the contrary, cable systems are presumed not to be subject to effective competition. The cable operator bears the burden of rebutting the presumption that effective competition does not exist with evidence that effective competition, as defined by Section 76.905 of the Commission's rules, is present within its franchise area. Following the denial or revocation of certification, a local franchising authority asserting a right of recertification must make a clear showing, supported by either objectively verifiable data such as state statute, or by affidavit, that the reasons for the earlier denial or revocation no longer pertain. The DPSC has made this showing. 6. Consistent with our earlier Order, the DPSC relied on Census data reflecting the number of households as required by our regulations. The DPSC has submitted sufficient information demonstrating that Comcast's cable system serves at least 11,311 of the 37,405 households in the franchise area, or 30.2% of the total number of households. In addition, as evidenced by its ongoing regulation of the basic cable service rates of Comcast's other Delaware cable systems, the DPSC fulfills the qualifying criteria set forth in Section 623(a)(3) of the Communications Act. Therefore, we find that Comcast's system is no longer subject to low penetration effective competition and that recertification of the DPSC is warranted. III. ORDERING CLAUSES 7. Accordingly, IT IS ORDERED that the petition for recertification to regulate basic cable service rates filed by the Delaware Public Service Commission IS GRANTED. 8. IT IS FURTHER ORDERED that the Delaware Public Service Commission IS RECERTIFIED to regulate Comcast Cablevision of Delmarva, Inc.'s basic cable service rates in CUID Nos. DE0025, DE0059, DE0060, DE0062, DE0070, DE0088, DE0089, DE0090, DE0091, and DE0092. 9. This action is taken pursuant to delegated authority pursuant to Section 0.321 of the Commission's rules. FEDERAL COMMUNICATIONS COMMISSION Deborah A. Lathen Chief, Cable Services Bureau