Cable operator subject to effective competition and exempt from r...

cable operator rate regulation. Responding to petition by Wireless Communications Assn. (WCA), agency said predatory pricing complaint could be brought before Commission only if operator didn’t face effective competition, but limitation didn’t restrict other action or rights under antitrust laws. WCA had requested rewording of Commission rules to clarify that predatory pricing applied regardless of whether cable operator was subject to effective competition. FCC also said its procedures didn’t “inappropriately” place initial burden of showing discounted price was predatory on local franchising authorities (LFAs). Statute provides that after prima facie showing by complainant of reasonable ground, cable system would have burden to show that discounted price wasn’t predatory, agency said. Commission also said it believed bulk discounts to MDUs shouldn’t be based on cable operator’s exclusive access to all residents and that “negotiated” discount requirement applicable only to cable operator could limit its ability to respond to competition. “Requiring an exclusive access agreement as a prerequisite for offering discounted MDU rates would limit competitors’ access to MDUs and would be at odds with the congressional objective of allowing cable operators to offer discounts in response to competition in MDUs,” Commission said. It also denied petition by American Cable Assn. (ACA) for partial stay of order placing limitations on exemptions to truly passive investments in cable operator for exemption from rate regulation for small cable operator. While agreeing with agency that passive investments shouldn’t give rise to affiliations that would disqualify operator, it said “minimal measures” taken by otherwise passive investor such as sitting on board and reviewing budgets and business plans didn’t “give rise to operational advantages that make small operator rate exemption unnecessary.”