Industries Served Communications We have unparalleled depth and breadth in Cable Television, Telecommunications, Broadcasting, Internet, Privacy and e-Commerce, and 700MHz EnergyRegulatory, General Business, Corporate & Securities expertise in the Electric, Natural Gas and Transportation industries. OtherWe also represent startup, established and international entities in a varied range of industries.
Corporate & SecuritiesRegulatory/AdministrativePrivacy, Internet & e-Commerce LitigationAntitrust
|
Breaking News
FCC Announces New Standards for Showings of Effective Competition for Cable Service
August 13 , 2008
printable version
The FCC has announced that, effective September 1, 2008, when a cable operator seeks to demonstrate the presence of effective competition in its franchise area from competing providers based on “Zip Code” data, the Commission will no longer accept “Five-Digit Zip Code” data, but rather will require the submission of “Zip Code Plus Four” data.
Zip Code data is used to show the presence of a competing provider by demonstrating that the number of households in a franchise area that subscribe to competing video services, usually those of direct broadcast satellite companies, is more than 15 percent of all the households in that franchise area. The so-called “competing provider” or “50/15” test is one of four available methods of demonstrating effective competition under the Cable Act. A finding of effective competition exempts the cable operator from rate regulation by the local franchising authority, in addition to providing relief from other regulatory requirements (e.g., the tier buy-through prohibition, geographic rate uniformity, etc.), regardless of whether the community has filed for rate certification at the FCC.
The FCC has previously stated in numerous effective competition decisions that it had no preference for either Five-Digit or Zip Code Plus Four data, but now cites the increased use, availability and accuracy of Zip Code Plus Four data to support the reversal of its position. The FCC will continue to process effective competition petitions currently pending that rely on Five-Digit Zip Code data; however, if that data leads to inaccurate or questionable reports of penetration (e.g., total penetration for the cable operator and all competing providers in excess of 100%), the request will be denied without prejudice to refile using Zip Code Plus Four data.
We would be pleased to respond to any questions regarding this matter.
Other News
Conferences / Seminars
Articles