Goto Section: 76.901 | 76.906 | Table of Contents
FCC 76.905
Revised as of October 1, 2008
Goto Year:2007 |
2009
Sec. 76.905 Standards for identification of cable systems subject to effective
competition.
(a) Only the rates of cable systems that are not subject to effective
competition may be regulated.
(b) A cable system is subject to effective competition when any one of the
following conditions is met:
(1) Fewer than 30 percent of the households in its franchise area subscribe
to the cable service of a cable system.
(2) The franchise area is:
(i) Served by at least two unaffiliated multichannel video programming
distributors each of which offers comparable programming to at least 50
percent of the households in the franchise area; and
(ii) the number of households subscribing to multichannel video programming
other than the largest multichannel video programming distributor exceeds 15
percent of the households in the franchise area.
(3) A multichannel video programming distributor, operated by the
franchising authority for that franchise area, offers video programming to
at least 50 percent of the households in the franchise area.
(4) 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 direct-to-home 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 programming services so offered in
that area are comparable to the video programming services provided by the
unaffiliated cable operator in that area.
(c) For purposes of paragraphs (b)(1) through (b)(3) of this section, each
separately billed or billable customer will count as a household subscribing
to or being offered video programming services, with the exception of
multiple dwelling buildings billed as a single customer. Individual units of
multiple dwelling buildings will count as separate households. The term
“households” shall not include those dwellings that are used solely for
seasonal, occasional, or recreational use.
(d) A multichannel video program distributor, for purposes of this section,
is an entity such as, but not limited to, a cable operator, a BRS/EBS
provider, a direct broadcast satellite service, a television receive-only
satellite program distributor, a video dialtone service provider, or a
satellite master antenna television service provider that makes available
for purchase, by subscribers or customers, multiple channels of video
programming.
(e) Service of a multichannel video programming distributor will be deemed
offered:
(1) When the multichannel video programming distributor is physically able
to deliver service 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.
(f) For purposes of determining the number of households subscribing to the
services of a multichannel video programming distributor other than the
largest multichannel video programming distributor, under paragraph
(b)(2)(ii) of this section, the number of subscribers of all multichannel
video programming distributors that offer service in the franchise area will
be aggregated.
(g) In order to offer comparable programming as that term is used in this
section, a competing multichannel video programming distributor must offer
at least 12 channels of video programming, including at least one channel of
nonbroadcast service programming.
(h) For purposes of paragraph (b)(2) of this section, entities are
affiliated if either entity has an attributable interest in the other or if
a third party has an attributable interest in both entities. Attributable
interest shall be defined by reference to the criteria set forth in Notes 1
through 5 to Sec. 76.501.
(i) For purposes of paragraph (b)(4) of this section, entities are
affiliated if either entity has an attributable interest in the other or if
a third party has an attributable interest in both entities. Attributable
interest shall be defined as follows:
(1) A 10% partnership or voting equity interest in a corporation will be
cognizable.
(2) Subject to paragraph (i)(3), a limited partnership interest of 10% or
more shall be attributed to a limited partner unless that partner is not
materially involved, directly or indirectly, in the management or operation
of the media-related activities of the partnership and the relevant entity
so certifies. An interest in a Limited Liability Company (“LLC”) or
Registered Limited Liability Partnership (“RLLP”) shall be attributed to the
interest holder unless that interest holder is not materially involved,
directly or indirectly, in the management or operation of the media-related
activities of the partnership and the relevant entity so certifies.
Certifications must be made pursuant to the guidelines set forth in Note
2(f) to Sec. 76.501.
(3) Notwithstanding paragraph (i)(2), the holder of an equity or debt
interest or interests in an entity covered by this rule shall have that
interest attributed if the equity (including all stockholdings, whether
voting or nonvoting, common or preferred, and partnership interests) and
debt interest or interests, in the aggregate, exceed 33 percent of the total
asset value (all equity plus all debt) of that entity.
(4) Discrete ownership interests held by the same individual or entity will
be aggregated in determining whether or not an interest is cognizable under
this section. An individual or entity will be deemed to have a cognizable
investment if the sum of the interests other than those held by or through
“passive investors” is equal to or exceeds 10%.
[ 58 FR 29753 , May 21, 1993, as amended at 59 FR 17972 , Apr. 15, 1994; 61 FR 18978 , Apr. 30, 1996; 62 FR 6495 , Feb. 12, 1997; 64 FR 35950 , July 2, 1999;
64 FR 67196 , Dec. 1, 1999; 69 FR 72046 , Dec. 10, 2004]
Goto Section: 76.901 | 76.906
Goto Year: 2007 |
2009
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