Before the

Federal Communications Commission

Washington, D.C. 20554

+----------------------------------+---+------------------------------+
| In the Matter of:                | * | CSR 6554-E                   |
|                                  | * |                              |
| Mediacom Iowa, LLC               | ) | CSR 6550-E, 6553-E, 6555-E,  |
|                                  | * | 6556-E, 6565-E, 6587-E,      |
| MCC Iowa, LLC                    | * | 6588-E, 6589-E, 6624-E       |
|                                  |   |                              |
| MCC Iowa, LLC & Mediacom Iowa,   | * | CSR                          |
| LLC                              | * |                              |
|                                  | ) | CSR 6558-E                   |
| Mediacom Minnesota, LLC          | * |                              |
|                                  | * | CSR 6566-E                   |
| Mediacom Wisconsin, LLC          |   |                              |
|                                  | * | CSR 6591-E                   |
| Charter Communications           | * |                              |
|                                  | ) | CSR 6468-E, 6469-E, 6470-E,  |
| Twenty-two Unopposed Petitions   | * | 6471-E, 6472-E, 6473-E,      |
| for Determination of Effective   | * | 6474-E, 6475-E, 6476-E       |
| Competition in 33 Local          |   |                              |
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+----------------------------------+---+------------------------------+
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+----------------------------------+---+------------------------------+

MEMORANDUM OPINION AND ORDER

**Adopted: May 18, 2005** **Released: May 19, 2005**

By the Deputy Chief, Policy Division, Media Bureau:

# introduction

1.  This Order considers twenty-two unopposed petitions which cable
    operators (the "Cable Operators") have filed with the Commission
    pursuant to Sections 76.7, 76.905(b)(2) and 76.907 of the
    Commission\'s rules for a determination that such operators are
    subject to effective competition pursuant to Section 623(1) of the
    Communications Act of 1934, as amended (\"Communications Act\"),[^1]
    and the Commission\'s implementing rules,[^2] and are therefore
    exempt from cable rate regulation in the communities listed in
    Attachment A (the "Communities"). No opposition to any petition was
    filed. Finding that the Cable Operators are subject to effective
    competition in the listed Communities, we grant the petitions.

2.  In the absence of a demonstration to the contrary, cable systems are
    presumed not to be subject to effective competition,[^3] 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.[^4] 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.[^5]

    **II. DISCUSSION**

3.  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 fifteen percent of the households in the franchise area.[^6]
    Turning to the first prong of this test, we find that the DBS
    service of DirecTV Inc. ("DirecTV") and DISH Network ("Dish") is
    presumed to be technically available due to its nationwide satellite
    footprint, and presumed to be actually available if households in a
    franchise area are made reasonably aware that the service is
    available.[^7] The two DBS providers' subscriber growth reached
    approximately 23.16 million as of June 30, 2004, comprising
    approximately 23 percent of all MVPD subscribers nationwide; DirecTV
    has become the second largest, and DISH the fourth largest, MVPD
    provider.[^8] In view of this DBS growth data, and the data
    discussed below showing that more than 15 percent of the households
    in each of the communities listed on Attachment A are DBS
    subscribers, we conclude that the population of the communities at
    issue here may be deemed reasonably aware of the availability of DBS
    services for purposes of the first prong of the competing provider
    test. With respect to the issue of program comparability, we find
    that the programming of the DBS providers satisfies the
    Commission\'s program comparability criterion because the DBS
    providers offer substantially more than 12 channels of video
    programming, including more than one non-broadcast channel.[^9] We
    further find that the Cable Operators have demonstrated that the
    Communities are served by at least two unaffiliated MVPDs, namely
    the two DBS providers, each of which offers comparable video
    programming to at least 50 percent of the households in the
    franchise area. Therefore, the first prong of the competing provider
    test is satisfied.

4.  The second prong of the competing provider test requires that the
    number of households subscribing to MVPDs, other than the largest
    MVPD, exceed 15 percent of the households in a franchise area. The
    Cable Operators sought to determine the competing provider
    penetration in the Communities by purchasing a subscriber tracking
    report that identified the number of subscribers attributable to the
    DBS providers within the Communities on a zip code basis. The Cable
    Operators assert that they are the largest MVPD in the Communities
    because their subscribership exceeds the aggregate DBS
    subscribership for those franchise areas. Based upon the aggregate
    DBS subscriber penetration levels as reflected in Attachment A,
    calculated using 2000 Census household data, we find that the Cable
    Operator's have demonstrated that the number of households
    subscribing to programming services offered by MVPDs, other than the
    largest MVPD, exceeds 15 percent of the households in the
    Communities. Therefore, the second prong of the competing provider
    test is satisfied. Based on the foregoing, we conclude that the
    Cable Operators have submitted sufficient evidence demonstrating
    that their cable systems serving the Communities set forth on
    Attachment A are subject to competing provider effective
    competition.

# III. ordering clauses {#iii.-ordering-clauses .unnumbered}

5\. Accordingly, **IT IS ORDERED** that the petitions filed by the Cable
Operators listed on Attachment A for a determination of effective
competition in the Communities listed thereon **ARE** **GRANTED**.

6\. **IT IS FURTHER ORDERED** that the certifications to regulate basic
cable service rates granted to any of the local franchising authorities
overseeing the Cable Operators **ARE REVOKED**.

7\. This action is taken pursuant to authority delegated under Section
0.283 of the Commission's rules.[^10]

FEDERAL COMMUNICATIONS COMMISSION

Steven A. Broeckaert

Deputy Chief, Policy Division, Media Bureau

**Attachment A**

**[Cable Operators Subject to Competing Provider Effective
Competition]{.underline}**

**MEDIACOM IOWA LLC: CSR 6554-E**

**2000** **Census** **DBS**

**Communities CUIDS CPR\* Households^+^ Subscribers^+^**

Bancroft IA0106 29.20% 339 99

**MCC IOWA, LLC: CSR 6550-E, 6553-E, 6555-E, 6556-E, 6565-E, 6587-E,
6588-E, 6589-E, 6624-E**

**2000** **Census** **DBS**

**Communities CUIDS CPR\* Households^+^ Subscribers^+^**

## Atlantic IA0034 16.35% 3,126 511 {#atlantic-ia0034-16.35-3126-511 .unnumbered}

## Denver IA0501 18.98% 648 123 {#denver-ia0501-18.98-648-123 .unnumbered}

Eagle Grove IA0024 23.76% 1,511 359

Northwood IA0487 17.51% 914 160

Corydon IA0118 25.35% 718 182

Greenfield IA0154 18.68% 937 175

Lamoni IA0081 24.69% 818 202

Leon IA0087 18.18% 858 156

Osceola IA0111 20.98% 1,945 408

Winterset IA0185 20.49% 1,884 386

Preston IA0635 17.03% 417 71

Newton IA0104 21.87% 6,713 1,468

Durant IA0414 19.49% 672 131

Knoxville IA0155 28.39% 3,191 906

**MCC IOWA, LLC & MEDIACOM IOWA LLC: CSR 6558-E**

**2000** **Census** **DBS**

**Communities CUIDS CPR\* Households^+^ Subscribers^+^**

Kalona IA0266 22.70% 947 215

Washington IA0082 20.08% 2,928 588

**MEDIACOM MINNESOTA, LLC: CSR 6566-E**

> **2000**

**Census DBS**

**Communities CUIDS CPR\* Households^+^ Subscribers^+^**

Arlington SD0057 19.34% 424 82

Brookings SD0005 15.16% 6,971 1,057

Volga SD0058 20.67% 571 118

**MEDIACOM WISCONSIN, LLC: CSR 6591-E**

> **2000**

**Census DBS**

**Communities CUIDS CPR\* Households^+^ Subscribers^+^**

Cashton WI0594 21.45 415 89

**CHARTER COMMUNICATIONS: CSR 6468-E, 6469-E, 6470-E, 6471-E, 6472-E,
6473-E, 6474-E, 6475-E, 6476-E**

> **2000**

**Census DBS**

**Communities CUIDS CPR\* Households^+^ Subscribers^+^**

Chewelah WA0176 52.8% 911 481

E Wenatchee WA0113 25.2% 2,295 578

Leavenworth WA0298 41.4% 899 372

Ellensburg WA0102 19.5% 6,249 1,217

Grand Coulee WA0309 26.6% 410 109

Omak WA0130 39.9% 1,861 742

Oroville WA0131 41.7% 691 288

WA0265

Tonasket WA0132 48.8% 420 205

WA0266

Pomeroy WA0133 44.3% 645 286

Sunnyside WA0226 39.6% 3,827 1,517

Yakima WA0302 26.0% 26,498 6,876

Waitsburg WA0152 32.3% 490 158

CPR= Percent DBS penetration

\+ = See Cable Operator Petitions

[^1]: 47 U.S.C. § 543(1).

[^2]: 47 C.F.R. § 76.905(b)(4).

[^3]: 47 C.F.R. § 76.906.

[^4]: ^ ?^ *See* 47 U.S.C. § 543(1) and 47 C.F.R. § 76.905.

[^5]: *See* 47 C.F.R. §§ 76.906 & 907.

[^6]: 47 U.S.C. § 543(1)(1)(B); *see also* 47 C.F.R. § 76.905(b)(2).

[^7]: *See MediaOne of Georgia*, 12 FCC Rcd 19406 (1997).

[^8]: *Eleventh Annual Assessment of the Status of Competition in the
    Market for Delivery of Video Programming*, FCC 05-13, at ¶¶54-55
    (rel. Feb. 4, 2005).

[^9]: *See* 47 C.F.R. § 76.905(g).

[^10]: 47 C.F.R. § 0.283.