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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: ) ) Tennessee Valley Cable Network and ) WZYX 1440AM Radio ) ) v. ) CSR-5290-L ) Intermedia Cablevision of Franklin County ) ) Leased Access Complaint ) MEMORANDUM OPINION AND ORDER Adopted: October 4, 1999 Released: October 6, 1999 By the Deputy Chief, Cable Services Bureau: 1. Tennessee Valley Cable Network and WZYX 1440AM Radio (collectively "Complainants") jointly filed a complaint alleging violations by Intermedia Cablevision of Franklin County ("Intermedia") of Section 612 of the Communications Act applicable to commercial leased access channels on cable systems. Intermedia did not file a response to the complaint. 2. The 1984 Cable Act imposed on cable operators a commercial leased access requirements designed to assure access to cable systems by unaffiliated third parties who have a desire to distribute video programming free of editorial control by cable operators. Channel set aside requirements were established proportionate to a system's total activated channel capacity. The 1992 Cable Act revised the leased access requirements and directed the Commission to implement rules to govern this system of channel leasing. In Implementation of the Cable Television Consumer Protection and Competition Act of 1992, Report and Order and Further Notice of Proposed Rule Making ("Rate Order"), the Commission adopted new rules for leased access addressing maximum reasonable rates, reasonable terms and conditions of use, minority and educational programming, and procedures for resolution of disputes. The Commission further modified its leased access rules in Implementation of the Cable Television Consumer Protection and Competition Act of 1992, Second Report and Order and Second Order on Reconsideration of the First Report and Order ("Second Order"). 3. Complainants state that Intermedia, operator of a cable system in Franklin County, Tennessee, presents local radio station WCDT(AM)'s audio signal, accompanied by visual advertisements during unleased time on Channel 9 on its cable system. Complainants assert that Intermedia impermissibly provides station WCDT(AM) the benefit of free air time for their commercial broadcasts. Complainants argue that it is unfair for Intermedia to provide station WCDT(AM) with free access, while Complainants must purchase leased access channel capacity at rates of over $700 per week. Complainants seek an order barring Intermedia from providing WCDT(AM) with free broadcast time. 4. Complainants also assert that Intermedia has improperly allowed station WCDT(AM) to tie up and thereby block preferred time slots on Channel 9 from other leased access providers. Complainants argue that Intermedia should be required to provide a character generator for all leased access providers as it is doing for station WCDT(AM)'s use. Complainants argue further that Intermedia and station WCDT(AM) should be deemed to have a cognizable affiliation interest stemming from their working relationship, and that such affiliation should preclude station WCDT(AM) from being considered a leased access programmer. Complainants state that they, Intermedia and station WCDT(AM) all compete for advertising dollars in Franklin County, Tennessee, and argue that unless the competitive position of these parties is equalized, leased access will not survive in Franklin County and will not provide the source of program diversity and competition to Intermedia that Congress intended leased access to be. 5. Complainants request for relief is denied. Initially, we note that station WCDT(AM) is a radio station and not a video services provider. As such WCDT(AM) is not a leased access provider, and therefore Intermedia is not providing WCDT(AM) with leased access capacity. With regard to the alleged tying up of a cable channel with carriage of WCDT(AM), Complainants provide no evidence showing that WCDT(AM) is occupying a channel and time slot for which leased access has been requested or that Intermedia does not have leased access capacity available on another channel to accommodate the needs of other users. In addition, apart from asserting that Intermedia is carrying WCDT(AM), Complainants have provided no evidence establishing any improper relationship between WCDT(AM) and Intermedia. For these reasons, we find that Complainants have failed to show that Intermedia's carriage of WCDT(AM) violates any commercial leased access statutory or regulatory provision, even though WCDT(AM)'s audio signal is accompanied by Intermedia's visual advertisements, or to show that carriage of WCDT(AM) exceeds the cable operator's discretion to carry programming of its own choice. Finally, Intermedia is not required to provide Complainants with a character generator unless it provides such equipment to other non-leased access programmers or unless it is reimbursed by the leased access user for the reasonable cost of such equipment actually provided. ORDERING CLAUSES 6. Accordingly, IT IS ORDERED that the leased access complaint jointly filed by Tennessee Valley Cable Network and WZYX 1440AM Radio in File No. CSR 5290-L IS DENIED. 7. This action is taken pursuant to authority delegated by Section 0.321 of the Commission's rules. FEDERAL COMMUNICATIONS COMMISSION William H. Johnson Deputy Chief, Cable Services Bureau