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DS96-46 - Re: Rendlining/Failure to Serve by OVS Provider, CS Docket 96-46
Before the Federal Communications Commission
May 20, 1996
Mr. Reed E. Hundt
Chairman FCC
Room 814
1919 M Street, NW
Washington, DC 20554
Re: Redlining/Failure to Serve by OVS Provider, CS Docket 96-46
Dear Chairman Hundt,
The City of Indianapolis is very concerned about claims by potential OVS providers that they can "pick and choose" what areas to serve because this may lead to discrimination and redlining that will result in minority, low income and growing areas of our nation’s municipalities from being served by an OVS provider.
We are particularly concerned about this potential failure to serve where the OVS provider is the only land-line video provider. This may occur in a substantial number of our nation’s communities, especially if cable operators are allowed to switch to becoming OVS providers (or through the provision of telephone service the cable operators can claim they are entitled to provide OVS service). Also, the new Telecommunications Act allows telephone companies to buy out cable companies in certain situations; and the laws of economics may result in there being only one video/data/telephone provider in a given area, which could well be an OVS provider.
Thus, there is a substantial risk that the Open Video System provider could be the only wired, land-line video provider in many areas. If such a monopoly OVS provider has no restraints on where and whom it serves, it is more likely to discriminate against or fail to serve large segments of our population.
There have been discrimination/failure to serve problems even in the cable area. We are concerned that if the phone companies have no restraints there could be similar problems here such as in the inner city areas. We are also concerned about the problem in lower density suburbs on the edge of urban areas where the OVS provider may claim there is not sufficient population density to warrant service.
Municipalities have classically addressed this issue as apart of the just compensation they receive from cable companies for using the public rights-of-way. The public, through the municipality, is entitled to just compensation for the use of its property. The compensation includes not only money but requirements to serve all residents of a city, or serve all areas with X dwelling units per mile in exchange for the use of public property.
The City of Indianapolis strongly urges the Commission to prevent OVS from becoming a "redlining" service where large segments of our population cannot receive it. In this regard we urge you to consider and adopt in your OVS rules recommendations such as those set forth in the May 14 letter to the Cable Bureau from Counsel for Michigan, Indiana and Texas Communities (MIT Communities), which has specific recommendations for Commission action to prevent these problems from occurring.
Per the Commission’s ex parte rules, a copy of this letter is being provided to the Secretary for inclusion in the public record.
Sincerely,
Rick Maultra
Telecommunications Coordinator
cc: FCC Commissioner Susan Ness
FCC Commissioner Rachelle B. Chong
FCC Commissioner James H. Quello
FCC Chief of Staff Blair Levin
FCC Legal Advisor Suzanne Toller
FCC Legal Advisor Mary McManus
FCC Secretary William F. Canton (2 copies)
Marion County Cable Franchise Board Chairman Carlton Curry
Corporation Counsel Peggy Piety
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