Federal Communications Commission DA 00-77 Before the Federal

Federal Communications Commission DA 00-77

Before the Federal Communications Commission Washington, D.C. 20554

In the Matter of ) ) Applications for Consent to the ) Transfer of Control of Licenses ) ) MediaOne Group, Inc., ) CS Docket No. 99-251 Transferor, ) ) To ) ) AT&T Corp., ) Transferee )

ORDER

Adopted: January 13, 2000 Released: January 13, 2000

By the Chief, Cable Services Bureau:

1. This Order grants in part the Motion for New Pleading Cycle filed by the Consumers Union, et al., SBC Communications, Inc., and U S West, Inc. (collectively “CU”) on December 23, 1999. In its motion, CU requests that the Commission establish a new pleading cycle in the above-referenced matter.1 This matter concerns the July 7 and 15, l999 joint applications that AT&T Corp. ("AT&T") and MediaOne Group, Inc. ("MediaOne") (collectively the “Applicants”) filed under Sections 214 and 310(d) of the Communications Act, 47 U.S.C. §§ 214, 310(d), requesting Commission approval of the transfer of control to AT&T of licenses and authorizations held by subsidiaries of MediaOne and entities controlled by MediaOne. This transfer of control would take place as the result of a proposed merger of AT&T and MediaOne, with AT&T becoming the parent company of MediaOne.

2. By letter dated October 26, 1999, the Cable Services Bureau requested that AT&T file a written submission demonstrating how AT&T’s proposed acquisition of MediaOne would fit under the Commission’s revised cable ownership rules, which were adopted in Implementation of the Cable Television Consumer Protection and Competition Act of 1992; Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996: Review of the Commission’s Cable Attribution Rules, Report and Order, CS Docket No. 98-82, CS Docket No. 96-85, FCC 99-288 (released October 20, 1999), and Implementation of Section 11(c) of the Cable Television Consumer Protection and Competition Act of 1992: Horizontal Ownership Limits, Third Report and Order, MM Docket No. 92-264, FCC 99-289 (released October 20, 1999). On November 24, 1999, AT&T and MediaOne filed a written submission (the “Submission”) in response to the October 26 letter. In the Submission, the Applicants argued that AT&T’s size post-merger would comply with the cable ownership rules.2

1 CU Motion at 1.

2 See Ex Parte Comments of AT&T Corp. and MediaOne Group, Inc. (Nov. 24, 1999).

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3. On November 30, 1999, the Cable Services Bureau placed the AT&T and MediaOne Submission on public notice and set deadlines of December 14, 1999 and December 21, 1999 for comments and reply comments, respectively, on the Submission.3 The Cable Services Bureau also set aside two weeks, January 3, 2000 through January 14, 2000, for parties to hold ex parte meetings with Commission staff to discuss issues related to the AT&T and MediaOne Submission.

4. Numerous parties filed comments on December 14, and the Applicants filed reply comments on December 21. In their reply comments, the Applicants argued again that they would be in compliance with the cable ownership rules. In addition, the Applicants argued that, if the Commission found that the Applicants were not in compliance with the cable ownership rules, the Commission should grant AT&T a temporary, 18 month waiver of certain of the Commission’s rules.4 CU contends that the Applicants should have raised this waiver request one month earlier in the Submission and asks for an additional period of time to respond to the request.5

5. We agree with CU that the public should be given an opportunity to file written comments on the Applicants’ waiver request and that oral ex parte meetings do not provide an adequate substitute for written comments under these circumstances.6 However, we see no need to establish a new 30-day pleading cycle as CU requests.7 Instead, we will permit the public to file sur-reply comments limited solely to the Applicants’ new proposal for an 18-month waiver. Sur-reply comments should be filed on or before January 27, 2000 pursuant to the procedures set forth in the Public Notice.8 We also will grant CU’s request for an additional period of time for ex parte meetings.9 Parties wishing to discuss issues related to the AT&T and MediaOne Submission should complete ex parte meetings with Commission staff by January 31, 2000.

3 See Public Notice, “AT&T Corp. and MediaOne Group, Inc. File Submission on Compliance with New Cable Ownership Rules,” DA 99-2661 (Nov. 30, 1999) (“Public Notice”).

4 See Reply Comments of AT&T Corp. and MediaOne Group, Inc. at 30 (Dec. 21, 1999) (requesting Commission to waive the “program sale prong” of the insulated limited partnership exemption, 47 C.F.R. § 76.503 n.2(b)(2)).

5 CU Motion at 4.

6 See CU Motion at 3-4; Opp. of AT&T and MediaOne at 3-5.

7 See CU Motion at 4.

8 See Public Notice at 2-3.

9 See id.

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ORDERING CLAUSES

6. Accordingly, IT IS ORDERED that the Motion for New Pleading Cycle filed by Consumers Union, et al., SBC Communications, Inc. and U S West, Inc. is GRANTED IN PART AND DENIED IN PART.

7. IT IS FURTHER ORDERED that the public may file sur-reply comments on AT&T’s temporary waiver proposal until January 27, 2000.

8. IT IS FURTHER ORDERED that Commission staff will be available for meetings to discuss the AT&T and MediaOne Submission until January 31, 2000.

9. This action is taken by the Chief, Cable Services Bureau, pursuant to authority delegated by Section 0.321 of the Commission's rules. 47 C.F.R. § 0.321.

FEDERAL COMMUNICATIONS COMMISSION

Deborah A. Lathen Chief, Cable Services Bureau