arbitrary. Moreover, any limitation should be structured in a way that permits

maximum utilization ofthe basic platform. The Commission successfully met that issue in regard to BellSouth's application for a technical and market tria1. 38 That

arrangement, which avoids the risk of unused capacity while preserving the opportunity for multiple access, will work whether the programming is affiliated or

nonaffiliated.

The Commission also asks ifadditional procedures should be required if a carrier must deny carriage due to a shortage of analog capacity.39 We do not recommend additional procedures at this time. The carrier's obligation to notify the

Bureau will permit the Commission to assess the effectiveness ofits requirements as commercial offerings unroll. It is too soon to establish restrictions that can have the effect of impeding the development ofcompetitive video dialtone offerings.

38 BellSouth may assign excess analog capacity to a customer-programmer who previously has been assigned fifty percent ofBellSouth's analog capacity ifthe customer-programmer agrees to relinquish capacity in excess ofthe fifty percent limitation ifnecessary to meet future demand. Application ofBellSouth Telecommunications, Inc., W-P-C 6977, February 8, 1995, para. 17. 39 The Commission requires that the carrier notify the Common Carrier Bureau within thirty days of an anticipated capacity shortfall or within five days ofdenying any video programmer access to the platform due to capacity limitations. The carrier must also advise the Bureau as to the steps taken to expand the capacity of the platform so as to accommodate the increased demand. Applications ofthe Ameritech Operating Companies, W-P-C- 6926 -6930, Report and Order, January 4, 1995, para. 72.

20 v. MANDATQIY PllFlUlffI.t\L IBEADIINT WQULD. INFRINGE ON A CARRIER'S FIRST AMENDMENT RIGHTS.

We responded to the Commission's inquiry into mandatory preferential treatment for commercial broadcasters, public, educational and governmental channels and other-not-for-profit programmers in our Reply Comments to the Third

Further Notice of Proposed Rulemaking.4o

We said then that the Commission should not mandate preferential treatment, but that carriers should be permitted to include preferential treatment in their tariffed offerings. However, we oppose mandatory carriage or preferential rate treatment that would result in special burdens on video programmers or end users. Ifthe Commission should decide to require such treatment it should be extremely limited, given the effects of such treatment on the carrier's business.

Preferential carriage would reduce the channel capacity available for video programmers. Special rate treatment would require subsidization ofthe preferred rate recipient. Pacific Bell is committed to working with cities, schools and community groups to develop innovate approaches to public, educational & governmental ("PEG") services.41 The broadband network will enable these groups to develop the new services and applications that operate interactively, in contrast to the one-way broadcast format oftraditional PEG channels. The Commission

40 Reply Comments ofthe Pacific Telesis Group, Pacific Bell and Nevada Bell, January 17, 1995.

41 The transport of PEG channels would likely be under state jurisdiction. Reconsideration Order, paras. 121-123.

21 should reaffirm its conclusion that mandatory preferences will not be a part ofthe

video dialtone model. 42 To compete effectively against entrenched cable providers, carriers will require maximum flexibility.

VI. CONCLUSION.

The Commission developed the video dialtone common carrier model to permit telephone companies limited participation in the video marketplace given the prohibition of Section 553(b). That ban has been overturned by the courts, which recognized that the overbroad law violated telephone companies' First

Amendment rights. Now, the Commission has an opportunity to further encourage the development of a viable video dialtone service. It can do so by adopting realistic regulations which will permit us to move forward with video dialtone offerings that will be in the public interest and which will accomplish the Commission's goals. Or, the Commission can reduce the value ofthe video dialtone common carriage model by adopting burdensome regulations that will disadvantage video dialtone in the competitive marketplace. We believe the Commission should conclude that our provision ofprogramming should be treated as simply another nonregulated

42 First Report and Order, para. 44.

22 activity and that as such, affiliated programming activity will be subject to the existing effective competitive safeguards.

Respectfully submitted,

PACIFIC TELESIS GROUP PACIFIC BELL NEVADA BELL

JAMES P. TUTHILL LUCILLE M. MATES

140 New Montgomery Street, Rm. 1526 , California 94105 (415) 542-7654

JAMES L. WURTZ

1275 Pennsylvania Avenue, N.W. Washington, D.C. 20004 (202) 383-6472

Their Attorneys

Date: March 21, 1995

23 ~--

CERTIFICATE OF SERVICE

I, Chuck Nordstrom, hereby certify that copies of the foregoing "COMMENTS OF THE PACIFIC TELESIS GROUP, PACIFIC BELL AND NEVADA BELL" concerning CC Docket No. 87-266 were served by hand or by first-class United States mail, postage prepaid, upon the parties appearing on the attached service list this 21st day of March, 1995.

BY: Jh,.M~ tl'ctfUCk Nordstrom

PACIFIC BELL Street San Francisco, CA 94105 SERVICE LIST

The Honorable Reed E. Hundt* The Honorable Andrew C. Barrett* Chairman Commissioner Federal Communications Federal Communications Commission Commission 1919 M Street, N. W. 1919 M Street, N. W. Room 814 Room 826 Washington, D. C. 20554 Washington, D. C. 20554

The Honorable Rachelle B. Chong* The Honorable Susan Ness* Commissioner Commissioner Federal Communications Federal Communications Commission Commission 1919 M Street, N. W. 1919 M Street, N. W. Room 844 Room 832 Washington, D. C. 20554 Washington, D. C. 20554

The Honorable James H. Quello* Gerald P. Vaughan, Deputy Chief* Commissioner Wireless Telecommunications Bureau Federal Communications Federal Communications Commission Commission 1919 M Street, N. W. 2025 M Street, N. W. Room 802 Room 5002 Washington, D. C. 20554 Washington, D. C. 20554

Kathleen M. H. Wallman, Chief* A. Richard Metzger, Deputy Chief* Common Carrier Bureau Common Carrier Bureau Federal Communications Federal Communications Commission Commission 1919 M Street, N. W. 1919 M Street, N. W. Room 500 Room 500 Washington, D. C. 20554 Washington, D. C. 20554

Kathleen B. Levitz, Deputy Chief* David Krech* Common Carrier Bureau Common Carrier Bureau Federal Communications Federal Communications Commission Commission 1919 M Street, N. W. 1919 M Street, N. W. Room 500 Room 500 Washington, D. C. 20554 Washington, D. C. 20554

* BY HAND -2 -

Gregory J. vogt, Deputy Chief* David NaIl, Deputy Chief* Cable Services Bureau Tariff Division Federal Communications Federal Communications Commission Commission 2033 M Street, N. W. 1919 M Street, N. W. Room 918 Room 518 Washington, D. C. 20554 Washington, D. C. 20554

James R. Keegan, Chief* Olga Madruga-Forti, Chief* Domestic Facilities Division Domestic Services Branch Federal Communications Federal Communications Commission Commission 2025 M Street, N. W. 2025 M Street, N. W. Room 6010 Room 6008 Washington, D. C. 20554 Washington, D. C. 20554

James D. Schlichting, Chief* Gregory Lipscomb* Policy and Program Planning Div. Policy and Program Planning Div. Federal Communications Federal Communications Commission Commission 1919 M Street, N. W. 1919 M Street, N. W. Room 544 Room 544 Washington, D. C. 20554 Washington, D. C. 20554

Gary Phillips* Todd F. Silbergeld* Policy and Program Planning Div. Policy and Program Planning Div. Federal Communications Federal Communications Commission Commission 1919 M Street, N. W. 1919 M Street, N. W. Room 544 Room 544 Washington, D. C. 20554 Washington, D. C. 20554

Donna Lampert* INTERNATIONAL TRANSCRIPTION* Policy and Program Planning Div. SERVICE, INC. (ITS) Federal Communications 1919 M Street, N. W. Commission Room 246 1919 M Street, N. W. Washington, D. C. 20554 Room 544 Washington, D. C. 20554

* BY HAND I--

I -3- I

The Honorable Togo D. West, Jr. The Honorable Jon H. Dalton Secretary of the Army Secretary of the Navy The Pentagon The Pentagon Washington, D. C. 20310 Washington, D. C. 20350

Governor Pete Wilson Gary D. Bass Office of the Governor Executive Director State Capitol OMS WATCH Sacramento, CA 95814 1731 Connecticut Ave., N. W. Washington, D. C. 20009-1146

Stuart F. Feldstein James K. Hahn, City Attorney Matthew D. Emmer Pedro B. Echeverria, FLEISCHMAN AND WALSH Senior Assistant City Attorney Attorneys for CENTURY Edward J. Perez COMMUNICATIONS CORPORATION Assistant City Attorney 1400 16th Street, N. W. CITY OF , CALIFORNIA 6th Floor Room 1800, City Hall East Washington, D. C. 20036 200 North Main Street Los Angeles, California 90012

Brenda L. Fox Debra L. Lagapa Michael S. Schooler LEVINE, LAGAPA AND BLOCK Suzanne M. Perry Attorneys for the CALIFORNIA DOW, LOHNES & ALBERTSON BANKERS CLEARING HOUSE AND Attorneys for THE COUNTY OF LOS ANGELES CABLEVISION INDUSTRIES, INC. 1200 Nineteenth Street, N. W. COMCAST CABLE COMM., INC. Suite 602 1255 - 23rd Street, N. W. Washington, D. C. 20036 Suite 500 Washington, D. C. 20037

Susan G. Hadden Chair Public Policy Committee ALLIANCE FOR PUBLIC TECHNOLOGY 901 Fifteenth St., N. W. Suite 230 Washington, D. C. 20005-2301 -4-

Peter Arth, Jr. Maureen A. Scott Edward W. O'Neill Assistant Counsel Mark Fogelman Attorneys for the PEOPLE OF Veronica A. Smith THE STATE OF CALIFORNIA AND Deputy Chief Counsel THE PUBLIC UTILITIES COMMISSION OF THE STATE John F. Povilaitis OF CALIFORNIA Chief Counsel 505 Van Ness Avenue THE PENNSYLVANIA PUBLIC San Francisco, California 94102 UTILITY COMMISSION P. O. Box 3265 Harrisburg, Pennsylvania 17021

Alan J. Gardner Frank W. Lloyd Jerry Yanowitz Kecia Boney Jeffrey Sinsheimer MINTZ, LEVIN, COHN, FERRIS, CALIFORNIA CABLE TELEVISION GLOVSKY, AND POPEO, P.C. ASSOCIATION Attorneys for the CALIFORNIA 4341 Piedmont Avenue CABLE TELEVISION ASSOCIATION P. O. Box 11080 and the NEW ENGLAND CABLE Oakland, California 94611 TELEVISION ASSOCIATION 701 Pennsylvania Ave., N. W. Suite 900 Washington, D. C. 20004

Daniel L. Brenner Howard J. Symons Neal M. Goldberg Christopher J. Harvie David L. Nicoll Tara M. Corvo Attorneys for the MINTZ, LEVIN, COHN, FERRIS NATIONAL CABLE TELEVISION GLOVSKY, AND POPEO, P. C. ASSOCIATION, INC. Attorneys for the NATIONAL CABLE 1724 Massachusetts Ave., N. W. TELEVISION ASSOCIATION, INC. Washington, D. C. 20036 701 Pennsylvania Avenue, N. W. Suite 900 Washington, D. C. 20004

Thomas K. Steel, Jr. Jeffrey S. Hops, Esq. Vice President and Director General Counsel Government Relations NEW ENGLAND CABLE TELEVISION ALLIANCE FOR COMMUNITY ASSOCIATION MEDIA 100 Grandview Road 666 11th Street, N. W. Suite 201 Suite 806 Braintree, MA 02184 Washington, D. C. 20001 -5-

James S. Blaszak Nicholas P. Miller Patrick J. Whittle Joseph Van Eaton GARDNER, CARTON & DOUGLAS MILLER, CANFIELD, PADDOCK Attorneys for AD HOC TELECOM- AND STONE COMUNICATIONS USERS Attorneys for the LOCAL COMMITTEE COMMUNITY COALITION 1301 K Street, N. W. 1225 19th Street, N. W. Suite 900 - East Tower Suite 400 Washington, D. C. 20005 WaShington, D. C. 20036

William J. Cowan Ronald G. Choura General Counsel Policy and Plann~ng Division NEW YORK STATE DEPARTMENT MICHIGAN PUBLIC SERVICE OF PUBLIC SERVICE COMMISSION Three Empire State Plaza 6545 Mercantile Way Albany, New York 12223 P. O. Box 30221 Lansing, MI 48909-7721

Daryl L. Avery Jeff Treeman General Counsel President Josephine S. Simmons Kim Koontz Bayliss Staff Counsel Vice President Government Relations PUBLIC SERVICE COMMISSION OF UNITED VIDEO, a UVSG COMPANY THE DISTRICT OF COLUMBIA One Technology Plaza 450 Fifth Street, N. W. 7140 South Lewis Avenue Washington, D. C. 20001 Tulsa, Oklahoma 74136

Michael J. Karson M. Robert Sutherland Michael S. Pabian Michael A. Tanner Theodore R. Kingsley Attorneys for Attorneys for BELLSOUTH AMERITECH TELECOMMUNICATIONS, INC. 2000 West Ameritech Center Drive 4300 Southern Bell Center Room 4H74 675 W. Peachtree St., N. E. Hoffman Estates, IL 60196-1025 Atlanta, Georgia 30375 -6-

Henry Geller Michael E. Glover Barbara O'Connor Edward Shakin Members of Betsy L. Anderson THE ALLIANCE FOR PUBLIC Attorneys for the BELL ATLANTIC TECHNOLOGY TELEPHONE COMPANIES 1750 K Street, N. W. 1320 North Court House Road Suite 800 8th Floor Washington, D. C. 20006 Arlington, VA 22201

Kenneth J. Benner Paula J. Fulks President Attorney for AMERICAN COUNCIL ON CONSUMERS SOUTHWESTERN BELL AWARENESS, INC. CORPORATION 1251 No. Kent Street 175 E. Houston P. O. Box 17291 Room 1212 St. Paul, MN 55117 San Antonio, Texas 78205

Gail L. Polivy Ward W. Wueste, Jr., HQE03J43 Attorney for GTE John F. Raposa, HQE03J27 Service Corporation GTE Service Corporation 1850 M Street, N. W. P. O. Box 152092 Suite 1200 Irving, Texas 75015-2092 Washington, D. C. 20036

Brian Conboy Jordan Clark Thomas Jones President WILLKIE FARR & GALLAGHER UNITED HOMEOWNERS Attorneys for TIME WARNER CABLE ASSOCIATION Three Lafayette Centre 1511 K Street, N. W. 1155 21st Street, N. W. Third Floor Suite 600 Washington, D. C. 20005 Washington, D. C. 20036-3384

Kathleen O'Reilly Joseph S. Faber, Esq. TURN Jackson, Tufts, Cole & Black 510 E. Street, S. E. 650 California Street Washington, D. C. 20003 San Francisco, CA 94108

R. Taylor Walsh E. Niel Ritchie Executive Director Director of Administration CapAccess INSTITUTE FOR AGRICULTURE 2002 G. Street, N. W. AND TRADE POLICY B-1 1313 Fifth Street, S. E. Washington, D. C. 20052 Suite 303 Minneapolis, Minnesota 55414-1546 -7-

Marilyn Mohrman-Gillis Jonathan D. Blake General Counsel John Duffy Alane C. Weixel Lonna Thompson COVINGTON & BURLING Attorneys for THE ASSOCIATION OF THE ASSOCIATION OF AMERICA'S AMERICA'S PUBLIC TELEVISION PUBLIC TELEVISION STATIONS STATIONS 1350 Connecticut Avenue, N.W. 1201 Pennsylvania Avenue, N.W. Suite 200 P. O. Box 7566 Washington, D. C. 20036 Washington, D. C. 20044-7566

Norman M. Sinel Lawrence W. Secrest, III Stephanie M. Phillipps Philip V. Permut William E. Cook, Jr. Peter D. Ross ARNOLD & PORTER Rosemary C. Harold Counsel for THE NATIONAL WILEY, REIN & FIELDING ASSOCIATION OF TELECOM­ Attorneys for VIACOM MUNICATIONS OFFICERS AND INTERNATIONAL, INC. ADVISORS AND THE CITY OF 1776 K Street, N. W. NEW YORK Washington, D. C. 20006 1200 New Hampshire Avenue, N. W. Washington, D. C. 20036

Bradley Stillman Andrew Jay Schwartzman CONSUMER FEDERATION OF AMERICA MEDIA ACCESS PROJECT 1424 16th Street, N. W. 2000 M Street, N. W. Washington, D. C. 20036 Washington, D. C. 20036

Angela Campbell Jill Lesser Ilene Penn CIVIC MEDIA PROJECT OF INSTITUTE FOR PUBLIC PEOPLE FOR THE AMERICAN WAY REPRESENTATION AND MEDIA ACCESS PROJECT Georgetown University Law Center 2000 M Street, N. W. 400 New Jersey Avenue, N. W. Washington, D. C. 20036 Washington, D. C. 20001

Sherwin Grossman Herbert E. Marks President Jonathan Jacob Nadler COMMUNITY BROADCASTERS ASSOCIATION SQUIRE, SANDERS & DEMPSEY c/o IRWIN & CAMPBELL, P.C. Counsel for 1320 - 18th Street, N. W. COMPAQ COMPUTER CORP. Suite 400 1201 Pennsylvania Ave., N. W. Washington, D. C. 20036 Washington, D. C. 20044 -8-

Henry Rivera Barry S. Abrams GINSBURG, FELDMAN AND BRESS Campbell L. Ayling Attorneys for LIBERTY CABLE Robert A. Lewis COMPANY, INC. Attorneys for NEW ENGLAND 1250 Connecticut Ave., N. W. TELEPHONE and TELEGRAPH Washington, D. C. 20036 COMPANY and NEW YORK TELEPHONE COMPANY 120 Bloomingdale Road White Plains, NY 10605

Barbara N. McLennan George A. Hanover Staff Vice President Staff Vice President Technology Policy Engineering CONSUMER ELECTRONICS GROUP CONSUMER ELECTRONICS GROUP ELECTRONIC INDUSTRIES ELECTRONIC INDUSTRIES ASSOCIATION ASSOCIATION 2001 Pennsylvania Ave., N. W. 2001 pennsylvania Ave., N. W. Washington, D. C. 20006 Washington, D. C. 20006

Robert B. McKenna Mark C. Rosenblum Attorney for Robert J. McKee US WEST COMMUNICATIONS, INC. Attorneys for AT&T CORP. 1020 19th Street, N. W. 295 North Maple Avenue Suite 700 Room 3244J1 Washington, D. C. 20036 Basking Ridge, New Jersey 07920

Jay C. Keithley Craig T. Smith Attorneys for UNITED and Attorney for UNITED and CENTRAL TELEPHONE COMPANIES CENTRAL TELEPHONE COMPANIES 1850 M Street, N. W. P. O. Box 11315 Suite 1100 Kansas City, MO 64112 Washington, D. C. 20036

Rodney L. Joyce Madelyn M. DeMatteo GINSBURG, FELDMAN AND BRESS Alfred J. Brunetti Attorneys for the SOUTHERN Attorneys for the SOUTHERN NEW ENGLAND TELEPHONE CO. NEW ENGLAND TELEPHONE CO. 1250 Connecticut Ave., N. W. 227 Church Street Washington, D. C. 20036 New Haven, CT 06506 ,.-_i _

-9-

Paul Rodgers Charles D. Gray General Counsel Assistant General Counsel NATIONAL ASSOCIATION OF NATIONAL ASSOCIATION OF REGULATORY UTILITY REGULATORY UTILITY COMMISSIONERS COMMISSIONERS 1102 ICC Building 1102 ICC Building Post Office Box 684 Post Office Box 684 Washington, D. C. 20044 Washington, D. C. 20044

James Bradford Ramsay Andrew D. Lipman Deputy Assistant General Counsel Gene DeJordy NATIONAL ASSOCIATION OF SWINDLER & BERLIN, Chartered REGULATORY UTILITY Attorneys for COMMISSIONERS COMPRESSION LABS, INC. 1102 ICC Building 3000 K Street, N. W. Post Office Box 684 Suite 300 Washington, D. C. 20044 Washington, D. C. 20007

Leonard J. Kennedy Paul Glist Peter H. Feinberg John Davidson Thomas Michael S. Schooler COLE, RAYWID & Steven F. Morris BRAVERMAN, L.L.P. DOW, LOHNES & ALBERTSON Attorneys for CONTINENTAL Attorneys for ADELPHIA CABLEVISION, INC., ET AL COMMUNICATIONS CORP., ET AL 1919 Pennsylvania Ave., N. W. 1255 Twenty-Third St., N.W. Suite 200 Suite 500 Washington, D. C. 20006 Washington, D. C. 20037

Lisa M. Zaina Alonzo Mathews General Counsel Manager THE ORGANIZATION FOR THE General Services Administration PROTECTION AND ADVANCEMENT CITY AND COUNTY OF DENVER OF SMALL TELEPHONE COMPANIES 17th Floor 21 Dupont Circle, N. W. 303 West Colfax Washington, D. C. 20036 Denver, CO 80204

Deborah. L. Ortega Hiawatha Davis, Jr. President City Councilman and Chair, City Council Economic Development Committee CITY AND COUNTY OF DENVER CITY AND COUNTY OF DENVER City and County Building City and County Building Denver, CO 80202 Denver, CO 80202 "Ii... _._

-10-

Michael H. Hammer Henry L. 8aumann Thomas Jones Jack N. Goodman WILLKIE FARR & GALLAGHER Terry L. Etter Attorneys for Counsel for the NATIONAL HOME BOX OFFICE ASSOCIATION OF BROADCASTERS Three Lafayette Centre 1771 N Street, N. W. 1155 21st Street, N. W. Washington, D. C. 20036 Suite 600 Washington, D. C. 20036-3384

Janice Obuchowski John D. Seiver HALPRIN, TEMPLE & GOODMAN T. Scott Thompson Of Counsel for COLE, RAYWID & BROADBAND TECHNOLOGIES, INC. BRAVERMAN, L.L.P. 1100 New York Avenue Attorneys for the ATLANTIC Suite 650 Bast CABLE COALITION, ET AL. Washington, D. C. 20005 1919 Pennsylvania Ave., N. W. Suite 200 Washington, D. C. 20006

Nicholas P. Miller Israel Ury Joseph Van Baton Chief Technology Officer Frederick E. Ellord III and Director MILLBR, CANFIELD, PADDOCK AND STONE Lawrence A. Stark Attorneys for the ALLIANCE Vice President and Business FOR COMMUNICATIONS Manager, Broadband DEMOCRACY, ET AL. Communications Products 1225 19th Street, N. W. ORTEL CORPORATION Suite 400 2015 West Chesnut Sreet Washington, D. C. 20036 Alhambra, CA 91803

Judith A. McHale Charles S. Walsh Senior Vice President and William F. Adler General Counsel FLEISCHMAN AND WALSH, L.L.P. Mark Hollinger Attorneys for Deputy General Counsel ESPN, INC. DISCOVERY COMMUNICATIONS, INC. 1400 Sixteenth Street, N. W. 7700 Wisconsin Avenue Suite 600 Bethesda, MD 20814 Washington, D. C. 20036

Helen E. Disenhaus David L. Donovan Gene DeJordy Vice President, Legal and SWINDLER & BBRLIN, CHARTERED Legislative Affairs Attorneys for ADC ASSOCIATION OF INDEPENDENT TBLECOMMUNlCATIONS, INC. TELEVISION STATIONS 3000 K Street, N. W. 1320 19th Street, N. W. Suite 300 Suite 300 Washington, D. C. 20007 Washington, D. C. 20036 -11-

Ian D. Volner Stephen A. Brenner, Esq. Venable, LLP Executive Vice President Attorney for USA Network 1201 New York Avenue, N. W. 1230 Avenue of the Americas Suite 1000 18th Floor Washington, D. C. 20005 New York, NY 10020-1513

Herbert E. Marks Mary McDermott Jeffrey A. Campbell Vice President & General Counsel SQUIRE, SANDERS, DEMPSEY Attorneys for INDEPENDENT DATA Linda L. Kent COMMUNICATIONS MANU­ Associate General Counsel FACTURERS ASSOCIATION, INC. UNITED STATES TELEPHONE ASSOC. 1201 Pennsylvania Avenue, N. W. 1401 H Street, N. W. P. O. Box 407 Suite 600 Washington, D. C. 20044 Washington, D. C. 20005

Margot Smiley Hamphrey James T. Hannon KOTEEN & NAFTALIN Attorney for Attorneys for TOS US WEST COMMUNICATIONS, INC. TELECOMMUNICATIONS CORP. 1020 19th Street, N. W. 1150 Connecticut Ave., N. W. Suite 700 Washington, D. C. 20036 Washington, D. C. 20036

Michael J. Shortley, III Attorney for FRONTIER CORPORATION 180 South Clinton Avenue Rochester, New York 14646