**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+----+------------------------------+
| In the Matter of                 | *  | CSR-7089-E                   |
|                                  | *) |                              |
| Comcast Cable Communications,    | ** | CSR-7090-E                   |
| LLC, on                          |    |                              |
|                                  | *  | CSR-7091-E                   |
| Behalf of its subsidiaries and   | *) |                              |
| affiliates                       | ** | CSR-7092-E                   |
|                                  |    |                              |
| For Determination of Effective   | *  | CSR-7093-E                   |
| Competition                      | *) |                              |
|                                  | ** | CSR-7094-E                   |
| In: 108 Utah and Idaho           |    |                              |
| Communities                      | *  | CSR-7095-E                   |
|                                  | *) |                              |
|                                  | ** | CSR-7096-E                   |
|                                  |    |                              |
|                                  | *  | CSR-7097-E                   |
|                                  | *) |                              |
|                                  | ** | CSR-7098-E                   |
|                                  |    |                              |
|                                  | *  |                              |
|                                  | *) |                              |
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+----------------------------------+----+------------------------------+

**Memorandum Opinion AND ORDER**

**Adopted: April 3, 2007 Released: April 6, 2007**

By the Deputy Chief, Policy Division, Media Bureau:

# I. introduction

1.  Comcast Cable Communications, LLC ("Comcast") has filed several
    petitions with the Commission for determinations of effective
    competition in 108 franchise areas (the "Franchise Areas")[^1]
    pursuant to Section 623(a) of the Communications Act[^2] and the
    Commission\'s implementing rules.[^3] Comcast alleges that its cable
    systems serving these Franchise Areas are subject to effective
    competition and, therefore, are exempt from cable rate regulation.
    Specifically, Comcast claims that the effective competition present
    in 79 of these franchise areas stems from the competing services
    provided by two unaffiliated direct broadcast satellite (\"DBS\")
    providers, DirecTV, Inc. and EchoStar Satellite, L.L.C. As a result,
    Comcast asserts that it is subject to effective competition in these
    franchise areas under the "competing provider" test set forth in
    Section 623(1)(1)(B) of the Communications Act. In addition, Comcast
    claims that in 29 of these franchise areas, Comcast serves less than
    30 percent of the subscribers and therefore, is subject to effective
    competition under the "low penetration" test set forth in Section
    623(l)(1)(A) of the Communications Act. No oppositions were filed.

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II. **BACKGROUND**

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2.  In the absence of a demonstration to the contrary, cable systems are
    presumed not to be subject to effective competition,[^4] as that
    term is defined by Section 623(1) of the Communications Act of 1934,
    as amended, and Section 76.905 of the Commission\'s rules.[^5] The
    cable operator bears the burden of rebutting the presumption that
    effective competition does not exist with evidence that effective
    competition is present within the relevant franchise area.[^6] A
    finding of effective competition exempts a cable operator from rate
    regulation and certain other Commission cable regulations.[^7]

3.  Section 623(l) of the Act provides that a cable operator is subject
    to effective competition if any one of the four tests for effective
    competition set forth therein is met.[^8] The "competing provider"
    test, set forth in Section 623(l)(1)(B) of the Communications Act,
    provides that a cable operator is subject to effective competition
    if its franchise area is (a) served by at least two unaffiliated
    multi-channel video programming distributors (\"MVPD\"), each of
    which offers comparable video programming to at least 50 percent of
    the households in the franchise area; and (b) the number of
    households subscribing to programming services offered by MVPDs
    other than the largest MVPD exceeds 15 percent of the households in
    the franchise area.[^9] The "low penetration" test, set forth in
    section 623(l)(1)(A) of the Communications Act, provides that a
    cable operator is subject to effective competition under the "low
    penetration" competition test if fewer than 30 percent of the
    households in the franchise area subscribe to the cable service of a
    cable system.[^10]

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III. **DISCUSSION**

     **A. [Competing Provider Effective Competition ]{.underline}**

4\. Comcast alleges that in 79 of the franchise areas, there is
effective competition under the competing provider test.[^11] Comcast
contends that EchoStar and DirecTV, two unaffiliated MVPDs, offers
comparable video programming to at least 50 percent of the households in
the Franchise Areas, and that residents in each of the communities are
reasonably aware of the availability of DBS service. In the Provo, Utah
Franchise Area, Comcast includes subscriber data from EchoStar, DirecTV,
Veracity Communications, and MSTARmetro.[^12] While neither
Veracity[^13] nor MSTARmetro currently have a subscriber base equal to
50 percent of the households in Provo, MSTARmetro states that it is
capable of providing services to more than 50 percent of the households
in Provo.[^14] Therefore, in each of these 79 communities, states
Comcast, the first prong of the competing provider test is satisfied: at
least two unaffiliated MVPDs offer comparable video programming to at
least 50 percent of the households.

5\. We agree. The Commission has repeatedly held that DBS service is
presumed to be technically available due to its nationwide satellite
footprint, and presumed to be actually available if households in the
franchise area are made reasonably aware of the service's
availability.[^15] The two DBS providers' subscriber growth reached
approximately 26.1 million as of June, 2005, comprising approximately
27.7 percent of all MVPD subscribers nationwide; DirecTV has become the
second largest, and EchoStar has become the third largest, MVPD
provider.[^16] Because the two DBS providers have a nationwide footprint
and serve well over 20 percent of all MVPD subscribers nationwide, we
believe these statistics support the presumption that Comcast's
franchise areas are within their satellite footprint. Moreover, Comcast
has provided sufficient evidence that residents of the Franchise Areas
are reasonably aware of the availability of DBS service by offering
examples of DBS advertising and as, will be discussed below, by
presenting evidence that penetration rates in each of these franchise
areas exceed 15 percent.[^17] Finally, with respect to the issue of
program comparability, we find that the DBS providers' programming
satisfies the Commission\'s program comparability criterion because
DirecTV and EchoStar offer more than 12 channels of video programming,
including more than one non-broadcast channel.[^18] The additional
evidence of MVPD services available through MSTARmetro in Provo, Utah,
including advertising and programming information, further supports
Comcast's contention that the first prong of the test is met. Therefore,
we conclude that Comcast has met its burden under the first prong of the
competing provider test.

6\. Under the second prong of the test, Comcast must show that in each
of the 79 communities, the number of households subscribing to MVPD
service, other than the largest MVPD, exceeds 15 percent of the
households. Comcast asserts that it is the largest MVDP in 46 of the 79
Franchise Areas. For the remaining 33 communities, Comcast was unable to
determine the identity of the largest MVPD but contends that the
identity of the largest MVPD is "immaterial" because "both DBS . . . and
cable readily pass the 15% threshold."[^19] For each of these 79
communities, Comcast has provided a copy of the 2000 Census Report
showing the number of households in the Franchise Areas.[^20] Comcast
also purchased a Satellite Broadcasting and Communications Association
("SBCA") Effective Competition Tracking Report for the Franchise Areas
reflecting the number of DBS subscribers within the specified ZIP codes
associated with the cable communities.[^21] Because franchise areas and
ZIP codes often do not directly overlap, Comcast applies an allocation
figure derived through a geocoding process completed by Media Business
Corp. ("MBC," previously known as "SkyTrends") to SBCA's DBS subscriber
count to ensure that the final count reflects only that portion of the
five-digit postal ZIP code within a particular Franchise Area.[^22] The
data provided by Comcast indicates that DBS penetration rates exceed 19
percent in 78 of the 79 communities, and therefore, Comcast asserts,
there is effective competition in these communities.[^23] In the final
community, Provo, Utah, Comcast used subscriber data from two additional
MVPDs, Veracity Communications and MSTARmetro,[^24] to conclude that
penetration rates of competing MVPDs in Provo, Utah exceeded the
statutory 15 percent minimum.

7\. We accept the data, including revised Exhibit A, provided by Comcast
as establishing a reasonable basis for finding that DBS penetration
exceeds 15 percent in the Franchise Areas. These penetration rates
provide a sufficient margin of error with respect to the 15 percent
competing provider threshold. Moreover, a similar methodology used in
calculating DBS penetration has been approved by the Commission in
previous cases with similar fact patterns to the ones described by
Comcast here.[^25] We therefore find that Comcast has provided evidence
sufficient to meet the second prong of the competing provider effective
competition test.

**B. [Low Penetration Effective Competition ]{.underline}**

8\. Comcast also argues that it is subject to effective competition in
an additional 29 franchise areas under the "low penetration" test
because Comcast serves less than 30 percent of the local households in
these franchise areas. For each of these franchise areas, Comcast
compared the number of subscribers to its cable system serving the area
to the U.S. Census household figures for each community.[^26] In each of
the communities, Comcast determined that its penetration rates were less
than 30 percent. Based on this evidence, as summarized in revised
Exhibit B, as establishing that Comcast is subject to effective
competition under the low penetration test as set forth in our rules.

# IV. ordering clauses

9\. Accordingly, **IT IS ORDERED** that the petition filed by Comcast
Cable Communications, LLC for a determination of effective competition
in the 108 Idaho and Utah communities **IS** **GRANTED**.

10. **IT IS FURTHER ORDERED** that the certifications to regulate basic
    cable service rates granted to any of the local franchising
    authorities in the Franchise Areas overseeing Comcast Cable
    Communications, LLC, **ARE REVOKED.**

    11\. This action is taken pursuant to authority delegated under
    Section 0.283 of the Commission's rules.[^27]

    FEDERAL COMMUNICATIONS COMMISSION

    Steven A. Broeckaert

    Deputy Chief, Policy Division, Media Bureau

**Exhibit A -- Competing Provider Data for:**

**CSR-7089-E CSR-7094-E**

**CSR-7090-E CSR-7095-E**

**CSR-7091-E CSR-7096-E**

**CSR-7092-E CSR-7097-E**

**CSR-7093-E CSR-7098-E**

  ------------------- ------------- -------------- ------------- ------------- ------------- ------------- -------
  **Franchise Area**                **2000 Census                **DBS/MVPD                  **CPR: DBS    
                                    Household**                  Subs                        Penetration   
                                    [^28]                        Allocated**                 Rate**        

  **Alpine**                        1662                         831                         50%           

  **American Fork**                 5934                         2872                        48%           

  **Bear River**                    226                          55                          24%           

  **Bluffdale**                     1112                         890                         80%           

  **Bountiful**                     13341                        3400                        25%           

  **Brigham City**                  5526                         2121                        38%           

  **Cedar Hills**                   695                          381                         55%           

  **Centerville**                   4138                         1188                        29%           

  **Clarkston**                     206                          71                          34%           

  **Clearfield**                    15842                        3340                        21%           

  **Clinton**                       3529                         1522                        43%           

  **Cottonwood                      11737                        3557                        30%           
  Heights**                                                                                                

  **Davis**                         1091                         534                         49%           

  **Deweyville**                    98                           53                          54%           

  **Draper**                        6305                         3497                        55%           

  **Farmington**                    3087                         1481                        48%           

  **Farr West**                     1034                         375                         36%           

  **Fielding**                      139                          85                          61%           

  **Fruit Heights**                 1256                         489                         39%           

  **Garland**                       588                          264                         45%           

  **Harrisville**                   1010                         378                         37%           

  **Heber City**                    2296                         1822                        79%           

  **Herriman**                      437                          355                         81%           

  **Highland**                      1804                         871                         48%           

  **Holladay**                      5096                         1181                        23%           

  **Hooper**                        1150                         717                         62%           

  **Hyde Park**                     763                          291                         38%           

  **Hyrum**                         1683                         693                         41%           

  **Kaysville**                     5496                         2097                        38%           

  **Layton**                        18282                        6571                        36%           

  **Lehi**                          5125                         1077                        21%           

  **Lindon**                        1935                         815                         42%           

  **Logan**                         13902                        2656                        19%           

  **Mapleton**                      1442                         694                         48%           

  **Mendon**                        267                          134                         50%           

  **Midvale**                       10089                        2255                        22%           

  **Midway**                        687                          503                         73%           

  **Franchise Area**  **2000 Census                **DBS/MVPD                  **CPR: DBS                  
                      Household**                  Subs                        Penetration                 
                      [^29]                        Allocated**                 Rate**                      

  **Millville**       395                          128                         32%                         

  **Murray**          12673                        2514                        20%                         

  **Nephi**           1430                         688                         48%                         

  **Newton**          196                          110                         56%                         

  **Nibley**          566                          146                         26%                         

  **North Logan**     1728                         356                         21%                         

  **North Ogden**     4416                         1760                        40%                         

  **North Salt Lake** 2874                         1264                        44%                         

  **Ogden City**      27384                        7836                        29%                         

  **Orem City**       23382                        5641                        24%                         

  **Paradise Town**   217                          139                         64%                         

  **Park**            2705                         1028                        38%                         

  **Payson**          3654                         2117                        58%                         

  **Perry**           747                          289                         39%                         

  **Plain City**      979                          322                         33%                         

  **Pleasant Grove    6109                         3347                        55%                         
  City**                                                                                                   

  **Pleasant View**   1740                         701                         40%                         

  **Providence**      1240                         409                         33%                         

  **Provo**           29192                        7136[^30]                   24%                         

  **Richmond**        619                          327                         53%                         

  **River Heights**   477                          120                         25%                         

  **Riverdale**       2806                         934                         33%                         

  **Roy City**        10689                        3940                        37%                         

  **Salem**           1128                         580                         51%                         

  **Salt Lake**       70607                        15669                       22%                         

  **Smithfield**      2066                         1167                        56%                         

  **South Jordon**    7507                         4059                        54%                         

  **South Ogden**     5193                         1373                        26%                         

  **South Weber**     1080                         357                         33%                         

  **Springville**     5975                         2557                        43%                         

  **Summit**          6003                         3465                        58%                         

  **Sunset City**     1785                         781                         44%                         

  **Taylorsville**    18530                        5170                        28%                         

  **Tremonton**       1698                         515                         30%                         

  **Uintah**          365                          93                          25%                         

  **Washington        3019                         930                         31%                         
  Terrace**                                                                                                

  **Wellsville**      778                          395                         51%                         

  **West Bountiful**  1250                         605                         48%                         

  **West Jordon**     18897                        8562                        45%                         

  **West Point**      1645                         717                         44%                         

  **West Valley       32253                        8793                        27%                         
  City**                                                                                                   

  **Willard**         517                          271                         52%                         
  ------------------- ------------- -------------- ------------- ------------- ------------- ------------- -------

**Exhibit B -- Low Penetration Data**

**CSR-7089-E CSR-7094-E**

**CSR-7090-E CSR-7095-E**

**CSR-7091-E CSR-7096-E**

**CSR-7092-E CSR-7097-E**

**CSR-7093-E CSR-7098-E**

  ------------------ -------------------- --------------- -------------------
  **Franchise Area** **2000 Census        **Comcast       **Comcast
                     Household Data**     Subscribers**   Penetration Rates**

  **Bear Lake**      709                  8               1%

  **Box Elder**      2338                 66              3%

  **Cache**          1582                 60              4%

  **Coalville**      465                  24              5%

  **Corinne**        190                  45              24%

  **Cornish**        73                   5               7%

  **Elk Ridge**      413                  91              22%

  **Franklin**       17429                7               0%

  **Franklin**       195                  30              15%

  **Garden City**    131                  11              8%

  **Grantsville**    1856                 354             19%

  **Honeyville**     358                  93              26%

  **Lewiston**       531                  88              17%

  **Marriott**       458                  106             23%

  **Morgan City**    1257                 136             11%

  **Morgan**         789                  155             20%

  **Plymouth**       105                  24              23%

  **Preston**        1529                 208             14%

  **Riverton**       6348                 1845            29%

  **Sandy**          25737                4284            17%

  **South Salt**     8022                 2244            28%

  **Spanish Fork     5534                 787             14%
  City**                                                  

  **St. Charles**    57                   1               2%

  **Tooele**         2539                 324             13%

  **Tooele**         7459                 1542            21%

  **Utah**           46653                127             0.27%

  **Wasatch**        1557                 29              2%

  **Weber**          5280                 735             14%

  **West Haven**     1131                 184             16%
  ------------------ -------------------- --------------- -------------------

[^1]: *See* **(1)** *See* Comcast Bluffdale et al. Petition (CSR 7089-E)
    (requesting that the Commission find effective competition in
    Bluffdale (UT0221); Cottonwood Heights (UT0261); Draper (UT0128);
    Grantsville (UT0105); Herriman (UT0244); Holladay (UT0246); Midvale
    (UT0049, UT0214); Murray (UT0007); Park (UT0060); Riverton (UTO137);
    Salt Lake (UT0009; UT0157; UTO161; UTO199; UTO226); Sandy (UT0046,
    UT0070); South Jordon (UTO138); South Salt Lake (UT0008);
    Taylorsville (UT0225); Tooele (UT0106; UT0107); Tooele (UT0097);
    West Jordon (UT0051); West Valley City (UT0088)); **(2)** Comcast
    Bear River et al. Petition (CSR 7090-E) (requesting that the
    Commission find effective competition in Bear River (UTO167);
    Bountiful (UT0024); Box Elder (UTO230; UT0194); Brigham City
    (UT0021); Centerville (UT0068); Clearfield City (UT0026, UT0085);
    Clinton (UT0066, UT0200); Corinne (UT0169); Davis (UT0027, UT0203);
    Deweyville (UTO186); Farmington (UT0069); Farr West (UT0084);
    Fielding (UT0170); Fruit Heights (UT0117, UTO201); Garland (UT0147);
    Harrisville (UTO152); Honeyville (UT0168); Hooper (UT0249);
    Kaysville (UT0022); Layton (UT0022, UT0090, UT0255); Marriot
    (UT0245); North Ogden (UT0092); North Salt Lake (UT0023; UT0177);
    Ogden City (UT0013); Perry (UT0150); Plain City (UT0159); Pleasant
    View (UTO158); Plymouth (UTO171); Riverdale (UT0035); Roy City
    (UT0010): South Ogden (UT0011); South Weber City (UT0111); Sunset
    City (UT0025); Tremonton (UT0071); Uintah (UT0112); Washington
    Terrance (UT0012); Weber (UT0002, UTO187); West Bountiful (UT0065);
    West Haven (UT0217); West Point (UT0148); Willard (UTO166); **(3)**
    Comcast Alpine, UT et al. Petition (CSR-7091-E) (requesting that the
    Commission find effective competition in Alpine (UT0056); American
    Fork (UT0050); Cedar Hills (UTO236): Elk Ridge (UTO145); Highland
    (UTO189); Lehi (UTO124); Lindon (UTO190, UTO237); Mapleton (UTO191);
    Orem (UT0058) Payson (UT0055); Pleasant Grove (UT0052, UTO238);
    Provo (UT0015, UT0018); Salem (UT0053); Spanish Fork City (UT0054);
    Springville (UT0016); Utah (UT0153, UTO162, UTO192, UT0227); **(4)**
    Comcast Nephi, UT Petition (CSR-7092-E) (requesting that the
    Commission find effective competition in Nephi (UT0061)); **(5)**
    Comcast Preston, ID Petition (CSR-7093-E) (requesting that the
    Commission find effective competition in Preston (ID0101)); **(6)**
    Comcast Heber, UT et al. Petition (CSR-7094-E) (requesting that the
    Commission find effective competition in Heber (UT011), Midway
    (UT01242); Wasatch (UT0202)); **(7)** Comcast Coalville, UT et al.
    (CSR-7095-E) (requesting that the Commission find effective
    competition in Coalville (UT0134)); **(8)** Comcast Morgan, UT et
    al. Petition (CSR-7096-E) (requesting that the Commission find
    effective competition in Morgan (UT0151); Morgan City (UT0130));
    **(9)** Comcast Bear Lake, ID Petition (CSR-7097-E) (requesting that
    the Commission find effective competition in Bear Lake (ID0211);
    Garden City (UT0210); and St Charles (ID0212)); **(10)** Comcast
    Cache, UT et al. Petition (CSR-7098-E) (requesting that the
    Commission find effective competition in Cache (UT0126, UT0196);
    Clarkston (UT0163); Cornish (UT0205); Franklin (ID0201); Franklin
    City (1D0200): Hyde Park (UT0040); Hyrum (UT0043); Lewiston
    (UT0173); Logan (UT0004); Mendon (UT0048); Millville (UT0041);
    Newton (UT0164); Nibley (UT0042); North Logan (UT0037); Paradise
    (UT0165); Providence (UT0044); Richmond (UT0118); River Heights
    (UT0029); Smithfield (UT0062); Wellsville (UT0047). Communities are
    listed in multiple petitions because cable operators are required to
    file a processing fee for each physical system unit. *See* Public
    Notice, *Reminder as To Procedures for Filing Cable Television
    Effective Competition Petitions*, 20 FCC Rcd 7294 (2005).

[^2]: 47 U.S.C. § 543(a).

[^3]: ^ ?^ 47 C.F.R. § 76.905(b).

[^4]: 47 C.F.R. § 76.906.

[^5]: ^ ?^ *See* 47 U.S.C. § 543(1); 47 C.F.R. § 76.905.

[^6]: *See* 47 C.F.R. §§ 76.906 & 907.

[^7]: ^?^ *See* 47 C.F.R. §76.905.

[^8]: *See* 47 U.S.C. § 543(l)(1)(A)-(D).

[^9]: 47 U.S.C. § 543(1)(1)(B); *see also* 47 C.F.R. § 76.905(b)(2).

[^10]: 47 U.S.C. § 543(1)(1)(B); *see also* 47 C.F.R. § 76.905(b)(2).

[^11]: 47 U.S.C. § 543(1)(1)(B); *see also* 47 C.F.R. § 76.905(b)(2).

[^12]: *See* Petition at 2 n.7. To receive video programming over the
    iProvo Fiber Network, residents of Provo must subscribe to either
    Veracity Communications or MSTARmetro, both of whom require that
    subscribers bundle their cable television packages with either
    telephone and/or Internet service. *See* Petition, Exhibit 2 (Letter
    dated January 10, 2006 from Paul Venturella, Provo City
    Telecommunications Manager; Provo City Power).

[^13]: *See* Petition, Exhibit 7 (email dated March 31, 2006 from
    Matthew Ward, VP Sales and Marketing).

[^14]: *See* Petition, Exhibit 7 (email dated May 3, 2006 from Scott
    Little of MSTARmetro).

[^15]: *See MediaOne of Georgia*, 12 FCC Rcd 19406 (1997).

[^16]: *See Twelfth* *Annual Assessment of the Status of Competition in
    the Market for the Delivery of Video Programming*, FCC 06-11, 21 FCC
    Rcd 2503 at ¶¶ 6, 13, 72-73 (2006).

[^17]: *See* Comcast Petitions at 4 & Exhibit 1. *See also* Comcast
    Replies at Attachment A.

[^18]: *See* 47 C.F.R. § 76.905(g).

[^19]: *See* Petition at 6. To make this determination, Comcast compared
    its own subscriber data against the DBS subscriber data, purchased
    from the Satellite Broadcasting and Communications Association
    ("SBCA") and adjusted, as described below, to reflect the actual
    franchise areas served by Comcast's cable systems. Where the SBCA
    data exceeded Comcast's own subscriber numbers, Comcast was unable
    to determine the largest MVPD in the Franchise Area. Comcast did not
    divulge the identity of these 33 communities. Nevertheless, both DBS
    and Comcast serve more than 15 percent of the households in these
    Franchise Areas.

[^20]: *See* Petition at Exhibit 8.

[^21]: *See id.* at 7.

[^22]: *See id.* at 7-8.

[^23]: *See* Petition at 8 and Exhibit 7.

[^24]: *See* Petition at 2 n.7. To receive video programming over the
    iProvo Fiber Network, residents of Provo must subscribe to either
    Veracity Communications or MSTAR MetroNet, both of whom require that
    subscribers bundle their cable television packages with either
    telephone and/or Internet service. *See* Petition, Exhibit 3 (Letter
    dated January 10, 2006 from Paul Venturella, Provo City
    Telecommunications Manager; Provo City Power).

[^25]: *See, e.g*., *Charter Communications, Inc.*, 19 FCC Rcd 6878
    (2004); *Time Warner Entertainment-Advance/Newhouse Partnership*, 21
    FCC Rcd 26937 (2006).

[^26]: *See* Petition at 9.

[^27]: 47 C.F.R. § 0.283.

[^28]: Household Data Figures, available at
    [http://factfinder.census.gov](http://factfinder.census.gov/).

[^29]: Household Data Figures, available at http://factfinder.census.gov

[^30]: Includes 1327 MSTARmetro subscribers, 1921Veracity subscribers,
    and 3888 DBS subscribers. *See* Petition at Exhibit 7.