XI. Notice of Imminent Market Entry
Public Utilities Code § 5840(n) provides that a state video franchise holder must provide a local entity notice that it will begin offering service in the entity's jurisdiction. This notice of imminent market entry "shall be given at least 10 days, but no more than 60 days, before the video service provider begins to offer service."370 This section describes and assesses comments on the state video franchise holder's notice of imminent market entry.
A. Positions of Parties
CCTA argues that a copy of the notice of imminent market entry must be provided to affected incumbent cable operators, just as they are provided to affected local entities.371 CCTA argues that this notice provision "will facilitate compliance with the obligations required by the Legislation, as well as allow the incumbent to be fully advised of its rights, obligations and opportunities triggered by the holder of the state-issued franchise."372
Likewise, DRA urges us to require state video franchise holders to provide notice of imminent market entry to incumbent cable operators. DRA states that "[t]his is a public notice, too, supplied to potential competitors or the `incumbent' provider of video services in that area."373
League of Cities/SCAN NATOA states that local entities have no duty to provide notice of imminent market entry to incumbent cable operators.374 It argues that there is "no basis in state law or Commission regulatory authority" for the Commission to require local governments to provide this notice.375
B. Discussion
We, like CCTA and DRA, conclude that we should require state video franchise holders to provide concurrent notice to affected incumbent cable operators.376 The basis for this conclusion is Public Utilities Code § 5840(o)(3). Public Utilities Code § 5840(o)(3) specifies that an incumbent cable operator's right to abrogate a local franchise is triggered when "a video service provider that holds a state franchise provides . . . notice . . . to a local jurisdiction that it intends to initiate providing video service in all or part of that jurisdiction."377 Implicit in this abrogation right is the assumption that an incumbent cable operator will know when a state video franchise holder provides notice of imminent market entry. To ensure this assumption is fulfilled, we modify the General Order to require state video franchise holders to provide affected incumbent cable operators concurrent notice of imminent market entry.378
In addition, this concurrent notice requirement is consistent with the Legislature's express intent that DIVCA create "a fair and level playing field for all market competitors that does not disadvantage or advantage one service provider . . . over another."379 If incumbent cable operators are given a right to opt into a state video franchise but are not given notice that allows them to exercise that right, incumbent cable operators may be unduly disadvantaged when competing against state video franchise holders that begin offering service in the incumbents' service areas.
370 Cal. Pub. Util. Code § 5840(n).
371 CCTA Opening Comments at 11-12.
372 Id.
373 DRA Reply Comments at 4.
374 League of Cities/SCAN NATOA Reply Comments at 12.
375 Id.
376 See DRA Reply Comments at 4 (calling for this notice requirement); League of Cities/SCAN NATOA Reply Comments at 12 (same).
377 Cal. Pub. Util. Code § 5840(o)(3).
378 We agree with League of Cities/SCAN NATOA's conclusion that we have no regulatory authority to mandate local entities to provide this notice. See League of Cities/SCAN NATOA Reply Comments at 12 (arguing that there is "no basis in state law or Commission regulatory authority" for the Commission to require local governments to provide any notice).
379 Cal. Pub. Util. Code § 5810(a)(2)(A).
